SB2942 - Energy Performance Contracting Act

• Creates the Energy Performance Contracting Act to enable governmental units to enter into energy performance contracts with qualified energy service providers to reduce energy consumption and operating costs through conservation improvements and energy production equipment.

• Designates the Smart Energy Design Assistance Center (SEDAC) at University of Illinois Urbana-Champaign as the lead agency to develop standardized contract processes, assemble lists of qualified providers, and assist governmental units in implementing energy efficiency projects.

• Establishes requirements for energy performance contracts including investment grade audits, selection of providers through competitive requests for proposals, monitoring and annual reporting of energy savings, and contingency provisions if actual savings fall short of projections.

• Allows energy performance contracts to extend up to 25 years and permits governmental units to use designated funds, bonds, or master leases to finance contracts, with savings to be retained by the governmental unit and reinvested in additional conservation measures when practical.

• Amends the Illinois Procurement Code to reference the Energy Performance Contracting Act for determining contract duration related to energy conservation and energy savings contracts, and repeals conflicting prior statutory provisions.