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HB 3381

Relating to insurance holding company systems

2025 Regular Session Introduced by Walter Hall and 1 co-sponsor

HB 3381 tightens and expands energy conservation measures in Illinois school projects, requiring guaranteed savings contracts and clearer plan review, scope, and financing rules.

To House Finance
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Bill Summary · HB 3381

Summary — HB 3381 (104th General Assembly, 2025–2026)

Relating to insurance holding company systems / Amending the School Code — school energy conservation and guaranteed energy savings contracts

Purpose and intent

HB 3381 amends multiple sections of the Illinois School Code to clarify and expand provisions related to school building plans and to update the law governing energy conservation measures and guaranteed energy‑savings contracts for school districts and area vocational centers. The bill seeks to: (1) make energy conservation measures an explicit part of plan review and approval by regional superintendents, (2) refine definitions and scope of allowable energy conservation measures, and (3) revise procedures and contract requirements for guaranteed energy savings projects.

Key provisions and changes

  • Expands the duties of regional superintendents (Sec. 3‑14.20) to inspect and approve school building plans and specifications that include energy conservation renovations or modifications.

    • Requires registration by municipalities, counties, or fire protection districts wishing to be notified about school construction/alteration plans.
    • Regional offices must notify registered local entities within 10 days of receiving plans; those entities may request copies and must be allowed 15 days (or mutually agreed additional time) to comment at no cost to the district.
    • If plans are not acted on by the regional superintendent within 3 months, the school board may submit them directly to the State Superintendent of Education for action.

  • Revises definitions in the Article on school energy conservation (Secs. 19b‑1.1 through 19b‑1.5, etc.):

    • Clarifies what constitutes an “energy conservation measure” (examples include insulation, upgraded windows/doors and weatherstripping, automated/computerized energy controls, HVAC modifications, lighting retrofit intended to increase efficiency without increasing overall illumination unless required by code, and energy recovery systems).
    • Explicitly excludes most new construction and building additions (with limited exceptions for electrical upgrades or equipment installations that are for the sole use of an energy system, e.g., geothermal/solar). Site improvements (parking, playgrounds, athletic fields) and administrative/common area renovations are generally excluded from guaranteed savings calculations.

  • Updates the definition and scope of a “guaranteed energy savings contract” (Sec. 19b‑1.2):

    • Covers energy/investment‑grade audits, evaluation and recommendations, implementation of measures, and project monitoring.
    • Requires that projected savings be guaranteed to the extent necessary to fund the cost of the measures over time (payments may be made in installments; provisions on termination and renewable energy credits are referenced but truncated in the provided text).

  • Adds new sections (19b‑1.5, 19b‑2.1, 19b‑90) touching on topics including qualified providers, templates, performance reviews, award procedures, written guarantees, installment and lease‑purchase financing, available funds, and the role of the Smart Energy Design Assistance Center (specific statutory language for some of these changes is not fully reproduced in the provided version).

Who is affected

  • School districts and area vocational centers (procuring and implementing energy projects).
  • Regional superintendents and the State Superintendent of Education (plan review/approval responsibilities).
  • Municipalities, counties, and fire protection districts that opt to be notified and review school plans.
  • Energy service companies/contractors and “qualified providers” that deliver guaranteed energy savings contracts.
  • Local taxpayers and school finances (projects may be financed and repaid over time; bill carries a “state mandates — may require reimbursement” notation).

Procedural status & timeline

  • Introduced: Feb 18–26, 2025 (filed by Rep. Joyce Mason).
  • Legislative actions include first reading (Mar 21, 2025), referrals to Rules, Trade/Workforce & Economic Development, and to House Finance; introduced in the House on Mar 14, 2025.
  • Sponsors listed: Hall (primary), Hott (cosponsor).

Notes and potential impacts

  • The bill formalizes and narrows what can be financed through guaranteed energy savings contracts, potentially reducing disputes about scope (e.g., excluding routine new construction).
  • Timeline and notice requirements could increase intergovernmental coordination and may slow or add steps to procurement, but also increase local oversight.
  • Requiring guaranteed savings and specifying finance/contract mechanisms may encourage more performance‑based energy retrofits while shifting upfront costs to financed arrangements.
  • Some statutory language in the provided text is truncated; final impacts depend on the full text of added sections (19b‑1.5, 19b‑2.1, 19b‑90) and implementing rules.

Compiled from official sources — confirm details with the bill’s official record.

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