State of Illinois
91st General Assembly
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[ House Amendment 001 ]

91_SB1018ccr001

 
                                           LRB9105635EGfgccr2

 1                        91ST GENERAL ASSEMBLY
 2                     CONFERENCE COMMITTEE REPORT
 3                         ON SENATE BILL 1018
 4    -------------------------------------------------------------
 5    -------------------------------------------------------------

 6        To the President of the Senate and  the  Speaker  of  the
 7    House of Representatives:
 8        We,  the  conference  committee appointed to consider the
 9    differences between the houses in relation to House Amendment
10    No. 1 to Senate Bill 1018, recommend the following:
11    (1)  that the House recede from House Amendment No. 1; and
12    (2)  that Senate Bill 1018 be amended as follows:

13    by replacing the title with the following:
14        "AN ACT to amend  the  Environmental  Protection  Act  by
15    changing  Sections  19.2, 19.3, 19.4, 19.5, 19.6, 19.8, 22.2,
16    58, and 58.3 and adding Section 58.15."; and

17    by replacing everything after the enacting  clause  with  the
18    following:

19        "Section  5.  The Environmental Protection Act is amended
20    by changing Sections 19.2,  19.3,  19.4,  19.5,  19.6,  19.8,
21    22.2, 58, and 58.3 and adding Section 58.15 as follows:

22        (415 ILCS 5/19.2) (from Ch. 111 1/2, par. 1019.2)
23        Sec.  19.2.   As  used  in this Title, unless the context
24    clearly requires otherwise:
25        (a)  "Agency" means the Illinois Environmental Protection
26    Agency.
27        (b)  "Fund"  means  the  Water  Revolving  Fund   created
28    pursuant  to  this  Title,  consisting of the Water Pollution
29    Control Loan Program, the Public Water Supply  Loan  Program,
30    and the Loan Support Program.
31        (c)  "Loan"  means  a  loan made from the Water Pollution
 
                            -2-            LRB9105635EGfgccr2
 1    Control Loan Program or the Public Water Supply Loan  Program
 2    to an eligible applicant local government unit as a result of
 3    a contractual agreement between the Agency and such applicant
 4     unit.
 5        (d)  "Construction"   means   any  one  or  more  of  the
 6    following  which  is  undertaken  for   a   public   purpose:
 7    preliminary  planning  to  determine  the  feasibility of the
 8    treatment  works  or  public   water   supply,   engineering,
 9    architectural,  legal,  fiscal  or economic investigations or
10    studies,   surveys,   designs,   plans,   working   drawings,
11    specifications,  procedures  or  other   necessary   actions,
12    erection,   building,  acquisition,  alteration,  remodeling,
13    improvement or extension of treatment works or  public  water
14    supplies,  or  the  inspection  or  supervision of any of the
15    foregoing items.  "Construction" also includes implementation
16    of source water quality protection measures and establishment
17    and  implementation  of  wellhead  protection   programs   in
18    accordance  with  Section  1452(k)(1)  of  the  federal  Safe
19    Drinking Water Act.
20        (e)  "Intended  use  plan"  means a plan which includes a
21    description of the short and long term goals  and  objectives
22    of  the  Water  Pollution Control Loan Program and the Public
23    Water Supply  Loan  Program,  project  categories,  discharge
24    requirements,  terms  of  financial  assistance  and the loan
25    applicants communities to be served.
26        (f)  "Treatment works"  means  any  devices  and  systems
27    owned  by  a  local  government unit and used in the storage,
28    treatment,  recycling,  and  reclamation   of   sewerage   or
29    industrial  wastes of a liquid nature, including intercepting
30    sewers, outfall sewers, sewage  collection  systems,  pumping
31    power  and  other  equipment,  and appurtenances; extensions,
32    improvements, remodeling, additions, and alterations thereof;
33    elements essential to provide  a  reliable  recycled  supply,
34    such  as  standby  treatment units and clear well facilities;
35    and any works, including site acquisition of  the  land  that
 
                            -3-            LRB9105635EGfgccr2
 1    will  be  an  integral  part  of  the  treatment  process for
 2    wastewater facilities.
 3        (g)  "Local   government   unit"    means    a    county,
 4    municipality,  township,  municipal  or  county  sewerage  or
 5    utility  authority, sanitary district, public water district,
 6    improvement authority  or  any  other  political  subdivision
 7    whose  primary  purpose is to construct, operate and maintain
 8    wastewater  treatment  facilities  or  public  water   supply
 9    facilities or both.
10    (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)

11        (415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)
12        Sec. 19.3.  Water Revolving Fund.
13        (a)  There  is hereby created within the State Treasury a
14    Water  Revolving  Fund,  consisting  of  3   interest-bearing
15    special  programs  to be known as the Water Pollution Control
16    Loan Program, the Public Water Supply Loan Program,  and  the
17    Loan Support Program, which shall be used and administered by
18    the Agency.
19        (b)  The  Water  Pollution  Control Loan Program shall be
20    used and administered by the Agency to provide assistance  to
21    local government units for the following public purposes:
22             (1)  to  accept  and retain funds from grant awards,
23        appropriations, transfers, and payments of  interest  and
24        principal;
25             (2)  to   make  direct  loans  at  or  below  market
26        interest rates to any eligible local government  unit  to
27        finance the construction of wastewater treatments works;
28             (3)  to   make  direct  loans  at  or  below  market
29        interest rates to any eligible local government  unit  to
30        buy  or  refinance  debt  obligations for treatment works
31        incurred after March 7, 1985;
32             (3.5)  to make  direct  loans  at  or  below  market
33        interest  rates  for  the  implementation of a management
34        program established under  Section  319  of  the  Federal
 
                            -4-            LRB9105635EGfgccr2
 1        Water Pollution Control Act, as amended;
 2             (4)  to  guarantee  or  purchase insurance for local
 3        obligations where such action would improve credit market
 4        access or reduce interest rates;
 5             (5)  as a source of  revenue  or  security  for  the
 6        payment  of  principal and interest on revenue or general
 7        obligation bonds issued by the  State  or  any  political
 8        subdivision  or  instrumentality thereof, if the proceeds
 9        of such bonds will be deposited in the Fund;
10             (6)  to finance the reasonable costs incurred by the
11        Agency in the administration of the Fund; and
12             (7)  to transfer funds to the  Public  Water  Supply
13        Loan Program.
14        (c)  The   Loan   Support   Program  shall  be  used  and
15    administered by the Agency for the following purposes:
16             (1)  to accept and retain funds  from  grant  awards
17        and appropriations;
18             (2)  to finance the reasonable costs incurred by the
19        Agency  in  the  administration  of  the  Fund, including
20        activities under Title III of  this  Act,  including  the
21        administration of the State construction grant program;
22             (3)  to   transfer  funds  to  the  Water  Pollution
23        Control Loan Program and the  Public  Water  Supply  Loan
24        Program;
25             (4)  to  accept  and  retain  a  portion of the loan
26        repayments;
27             (5)  to finance the development of the low  interest
28        loan program for public water supply projects;
29             (6)  to finance the reasonable costs incurred by the
30        Agency  to  provide technical assistance for public water
31        supplies; and
32             (7)  to finance the reasonable costs incurred by the
33        Agency for public water system supervision  programs,  to
34        administer  or  provide  for technical assistance through
35        source  water  protection  programs,   to   develop   and
 
                            -5-            LRB9105635EGfgccr2
 1        implement  a  capacity development strategy, to delineate
 2        and assess source water  protection  areas,  and  for  an
 3        operator certification program in accordance with Section
 4        1452 of the federal Safe Drinking Water Act.
 5        (d)  The  Public  Water Supply Loan Program shall be used
 6    and administered by the Agency to provide assistance to local
 7    government units for public water supplies for the  following
 8    public purposes:
 9             (1)  to  accept  and retain funds from grant awards,
10        appropriations, transfers, and payments of  interest  and
11        principal;
12             (2)  to   make  direct  loans  at  or  below  market
13        interest rates to any eligible local government  unit  to
14        finance the construction of public water supplies;
15             (3)  to  buy  or  refinance the debt obligation of a
16        local government unit for costs incurred on or after  the
17        effective date of this amendatory Act of 1997;
18             (4)  to   guarantee  local  obligations  where  such
19        action would  improve  credit  market  access  or  reduce
20        interest rates;
21             (5)  as  a  source  of  revenue  or security for the
22        payment of principal and interest on revenue  or  general
23        obligation  bonds  issued  by  the State or any political
24        subdivision or instrumentality thereof, if  the  proceeds
25        of such bonds will be deposited into the Fund; and
26             (6)  to   transfer  funds  to  the  Water  Pollution
27        Control Loan Program.
28        (e)   The  Agency  is  designated  as  the  administering
29    agency of the Fund.  The Agency shall submit to the  Regional
30    Administrator  of  the United States Environmental Protection
31    Agency an intended use plan which outlines the  proposed  use
32    of  funds  available to the State.  The Agency shall take all
33    actions necessary to secure to the State the benefits of  the
34    federal  Water  Pollution  Control  Act  and the federal Safe
35    Drinking Water Act, as now or hereafter amended.
 
                            -6-            LRB9105635EGfgccr2
 1        (f)  The Agency  shall  have  the  power  to  enter  into
 2    intergovernmental  agreements  with the federal government or
 3    the State, or any instrumentality thereof,  for  purposes  of
 4    capitalizing  the Water Revolving Fund.  Moneys on deposit in
 5    the Water Revolving Fund may be  used  for  the  creation  of
 6    reserve funds or pledged funds that secure the obligations of
 7    repayment  of  loans  made pursuant to this Section.  For the
 8    purpose of obtaining  capital  for  deposit  into  the  Water
 9    Revolving  Fund,  the  Agency  may also enter into agreements
10    with financial institutions and other persons for the purpose
11    of selling loans and developing a secondary market  for  such
12    loans.   The  Agency  shall  have  the  power  to  create and
13    establish such reserve funds and accounts as may be necessary
14    or desirable to accomplish its purposes under this subsection
15    and to allocate its available  moneys  into  such  funds  and
16    accounts.   Investment  earnings  on moneys held in the Water
17    Revolving Fund, including any reserve fund or  pledged  fund,
18    shall be deposited into the Water Revolving Fund.
19    (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)

20        (415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)
21        Sec.  19.4.  (a)  The  Agency shall have the authority to
22    promulgate regulations to set forth procedures  and  criteria
23    concerning loan applications.  For units of local government,
24    the  regulations  shall  include, but need not be limited to,
25    the following elements:,
26             (1)  loan application requirements;
27             (2)  determination of credit worthiness of the  loan
28        applicant;
29             (3)  special  loan terms, as necessary, for securing
30        the repayment of the loan;
31             (4)  assurance of payment;,
32             (5)  interest rates;,
33             (6)  loan support rates;,
34             (7)  impact on user charges;,
 
                            -7-            LRB9105635EGfgccr2
 1             (8)  eligibility of proposed construction;,
 2             (9)  priority of needs;,
 3             (10)  special   loan   terms    for    disadvantaged
 4        communities;, and
 5             (11)  maximum  limits  on  annual  distributions  of
 6        funds to applicants or groups of applicants;.
 7             (12)  penalties    for   noncompliance   with   loan
 8        requirements and conditions, including stop-work  orders,
 9        termination, and recovery of loan funds; and
10             (13)  indemnification  of  the State of Illinois and
11        the Agency by the loan recipient.
12        (b)  The Agency shall have the  authority  to  promulgate
13    regulations  to  set forth procedures and criteria concerning
14    loan applications for loan recipients  other  than  units  of
15    local  government.   In  addition  to  all  of  the  elements
16    required  for units of local government under subsection (a),
17    the regulations shall include, but need not  be  limited  to,
18    the following elements:
19             (1)  types of security required for the loan;
20             (2)  types  of collateral, as necessary, that can be
21        pledged for the loan; and
22             (3)  staged access to fund privately owned community
23        water supplies.
24        (c)  The Agency shall develop  and  maintain  a  priority
25    list  of loan applicants as categorized by need.  Priority in
26    making loans from the Water Pollution  Control  Loan  Program
27    must  first  be given to local government units which need to
28    make capital improvements to achieve compliance with National
29    Pollutant Discharge Elimination  System  permit  requirements
30    pursuant  to  the  federal Water Quality Act of 1987 and this
31    Act. Priority in making loans from the  Public  Water  Supply
32    Loan  Program  must  first be given to local government units
33    that need to  make  capital  improvements  to  protect  human
34    health  and  to achieve compliance with the State and federal
35    primary drinking water standards adopted pursuant to this Act
 
                            -8-            LRB9105635EGfgccr2
 1    and the federal Safe Drinking Water Act, as now and hereafter
 2    amended.
 3    (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)

 4        (415 ILCS 5/19.5) (from Ch. 111 1/2, par. 1019.5)
 5        Sec. 19.5.  Loans; repayment.
 6        (a)  The Agency shall have the authority  to  make  loans
 7    for  a  public  purpose  to  local  government  units for the
 8    construction of treatment works  and  public  water  supplies
 9    pursuant to the regulations promulgated under Section 19.4.
10        (b)  Loans made from the Fund shall provide for:
11             (1)  a schedule of disbursement of proceeds;
12             (2)  a  fixed  rate  that includes interest and loan
13        support based upon priority, but the  loan  support  rate
14        shall  not  exceed one-half of the fixed rate established
15        for each loan;
16             (3)  a schedule of repayment;
17             (4)  initiation of principal repayments  within  one
18        year after the project is operational; and
19             (5)  a confession of judgment upon default.
20        (c)  The  Agency  may  amend  existing loans to include a
21    loan support rate only  if  the  overall  cost  to  the  loan
22    recipient is not increased.
23        (d)  A  local government unit shall secure the payment of
24    its  obligations  to  the  Fund  by  a  dedicated  source  of
25    repayment, including revenues derived from the imposition  of
26    rates,  fees and charges.  Other loan applicants shall secure
27    the payment of their obligations by appropriate security  and
28    collateral  pursuant to regulations promulgated under Section
29    19.4.  In the event of a delinquency as to  payments  to  the
30    Fund,  the local government unit shall revise its rates, fees
31    and charges to meet its obligations.
32    (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)

33        (415 ILCS 5/19.6) (from Ch. 111 1/2, par. 1019.6)
 
                            -9-            LRB9105635EGfgccr2
 1        Sec. 19.6.  Delinquent loan repayment.
 2        (a)  In the event that a timely payment is not made by a
 3    loan recipient local government unit according  to  the  loan
 4    schedule  of  repayment,  the loan recipient local government
 5    unit shall notify the Agency in writing within 15 days  after
 6    the  payment  due  date.   The  notification  shall include a
 7    statement of the reasons the payment was not timely tendered,
 8    the circumstances under  which  the  late  payments  will  be
 9    satisfied, and binding commitments to assure future payments.
10    After  receipt of this notification, the Agency shall confirm
11    in writing the acceptability of the plan or  take  action  in
12    accordance with subsection (b) of this Section.
13        (b)  In  the event that a loan recipient local government
14    unit fails to comply with subsection (a) of this Section, the
15    Agency shall promptly issue a notice of  delinquency  to  the
16    loan  recipient,  local government unit which shall require a
17    written  response  within  15  30  days.    The   notice   of
18    delinquency  shall  require  that  the  loan  recipient local
19    government unit revise its rates, fees and  charges  to  meet
20    its obligations pursuant to subsection (d) of Section 19.5 or
21    take  other specified actions as may be appropriate to remedy
22    the delinquency and to assure future payments.
23        (c)  In  the  event  that  the   loan   recipient   local
24    government  unit  fails  to timely or adequately respond to a
25    notice of delinquency, or fails to meet its obligations  made
26    pursuant  to  subsections  (a)  and  (b) of this Section, the
27    Agency shall pursue the collection of the amounts  past  due,
28    the  outstanding loan balance and the costs thereby incurred,
29    either pursuant to the Illinois State Collection Act of  1986
30    or  by  any other reasonable means as may be provided by law,
31    including the taking of title by foreclosure or otherwise  to
32    any project or other property pledged, mortgaged, encumbered,
33    or otherwise available as security or collateral.
34    (Source: P.A. 90-121, eff. 7-17-97.)
 
                            -10-           LRB9105635EGfgccr2
 1        (415 ILCS 5/19.8) (from Ch. 111 1/2, par. 1019.8)
 2        Sec. 19.8.  Advisory committees; reports.
 3        (a)  The  Director of the Agency shall appoint committees
 4    to advise the Agency concerning the  financial  structure  of
 5    the    Programs.     The    committees   shall   consist   of
 6    representatives  from   appropriate   State   agencies,   the
 7    financial   community,   engineering   societies   and  other
 8    interested parties.  The committees shall  meet  periodically
 9    and  members  shall  be  reimbursed  for  their  ordinary and
10    necessary expenses  incurred  in  the  performance  of  their
11    committee duties.
12        (b)  The  Agency  shall report to the General Assembly by
13    June 30, 1998 regarding the feasibility of providing drinking
14    water loans to not-for-profit community water  supplies  that
15    serve  units of local government and to investor-owned public
16    utilities.  The report shall include a detailed discussion of
17    all  relevant  factors  and  shall include participation from
18    representatives of the affected entities.
19    (Source: P.A. 90-121, eff. 7-17-97.)

20        (415 ILCS 5/22.2) (from Ch. 111 1/2, par. 1022.2)
21        Sec. 22.2.  Hazardous waste; fees; liability.
22        (a)  There are hereby created within the State Treasury 2
23    special funds to be  known  respectively  as  the  "Hazardous
24    Waste   Fund"   and  the  "Hazardous  Waste  Research  Fund",
25    constituted from the fees collected pursuant to this Section.
26    In addition to the fees collected  under  this  Section,  the
27    Hazardous   Waste   Fund  shall  include  other  moneys  made
28    available from any source for deposit into the Fund.
29        (b) (1)  On and after January 1, 1989, the  Agency  shall
30        collect  from  the  owner  or  operator  of  each  of the
31        following sites a fee in the amount of:
32                  (A)  6 cents per gallon  or  $12.12  per  cubic
33             yard of hazardous waste disposed for 1989, 7.5 cents
34             per  gallon  or $15.15 per cubic yard for 1990 and 9
 
                            -11-           LRB9105635EGfgccr2
 1             cents  per  gallon  or   $18.18   per   cubic   yard
 2             thereafter,  if the hazardous waste disposal site is
 3             located off the site where such waste was  produced.
 4             The  maximum  amount  payable under this subdivision
 5             (A) with respect to the hazardous waste generated by
 6             a single generator and  deposited  in  monofills  is
 7             $20,000  for 1989, $25,000 for 1990, and $30,000 per
 8             year thereafter.  If, as a  result  of  the  use  of
 9             multiple  monofills,  waste  fees  in  excess of the
10             maximum are assessed with respect to a single  waste
11             generator, the generator may apply to the Agency for
12             a credit.
13                  (B)  6  cents  per  gallon  or $12.12 per cubic
14             yard of hazardous waste disposed for 1989, 7.5 cents
15             per gallon or $15.15 per cubic yard for 1990  and  9
16             cents  or  $18.18  per cubic yard thereafter, if the
17             hazardous waste disposal site is located on the site
18             where such waste was produced, provided however  the
19             maximum  amount of fees payable under this paragraph
20             (B) is  $20,000  for  1989,  $25,000  for  1990  and
21             $30,000  per year thereafter for each such hazardous
22             waste disposal site.
23                  (C)  If the hazardous waste disposal site is an
24             underground injection well, $6,000 per year  if  not
25             more  than 10,000,000 gallons per year are injected,
26             $15,000 per year if more than 10,000,000 gallons but
27             not  more  than  50,000,000  gallons  per  year  are
28             injected,  and  $27,000  per  year  if   more   than
29             50,000,000 gallons per year are injected.
30                  (D)  2 cents per gallon or $4.04 per cubic yard
31             for  1989,  2.5  cents per gallon or $5.05 per cubic
32             yard for 1990, and 3 cents per gallon or  $6.06  per
33             cubic  yard  thereafter  of hazardous waste received
34             for treatment at a hazardous waste  treatment  site,
35             if the hazardous waste treatment site is located off
 
                            -12-           LRB9105635EGfgccr2
 1             the  site  where such waste was produced and if such
 2             hazardous waste treatment site is owned,  controlled
 3             and operated by a person other than the generator of
 4             such  waste. After treatment at such hazardous waste
 5             treatment site, the waste shall not  be  subject  to
 6             any  other  fee imposed by this subsection (b).  For
 7             purposes  of   this   subsection   (b),   the   term
 8             "treatment"  is defined as in Section 3.49 but shall
 9             not include recycling, reclamation or reuse.
10             (2)  The General Assembly shall annually appropriate
11        to the Fund such amounts as it deems necessary to fulfill
12        the purposes of this Act.
13             (3)  The Agency shall have the authority to  accept,
14        receive, and administer on behalf of the State any moneys
15        made  available  to  the  State  from  any source for the
16        purposes  of  the  Hazardous  Waste  Fund  set  forth  in
17        subsection (d) of this Section.  Whenever the unobligated
18        balance of the Hazardous Waste Fund exceeds  $10,000,000,
19        the  Agency  shall  suspend  the  collection  of the fees
20        provided  for  in  this  Section  until  the  unobligated
21        balance of the Fund falls below $8,000,000.
22             (4)  Of the amount collected as fees provided for in
23        this Section, the Agency shall manage  the  use  of  such
24        funds  to  assure that sufficient funds are available for
25        match towards federal expenditures for response action at
26        sites which are listed on the National  Priorities  List;
27        provided,   however,   that   this  shall  not  apply  to
28        additional monies appropriated to the Fund by the General
29        Assembly, nor shall  it  apply  in  the  event  that  the
30        Director  finds that revenues in the Hazardous Waste Fund
31        must be used to address conditions which  create  or  may
32        create  an  immediate danger to the environment or public
33        health or to the welfare of the people of  the  State  of
34        Illinois.
35             (5)  Notwithstanding  the  other  provisions of this
 
                            -13-           LRB9105635EGfgccr2
 1        subsection (b), sludge from a publicly-owned sewage works
 2        generated in Illinois,  coal  mining  wastes  and  refuse
 3        generated in Illinois, bottom boiler ash, flyash and flue
 4        gas  desulphurization sludge from public utility electric
 5        generating facilities located  in  Illinois,  and  bottom
 6        boiler ash and flyash from all incinerators which process
 7        solely municipal waste shall not be subject to the fee.
 8             (6)  For   the  purposes  of  this  subsection  (b),
 9        "monofill" means a facility, or a  unit  at  a  facility,
10        that accepts only wastes bearing the same USEPA hazardous
11        waste  identification  number,  or  compatible  wastes as
12        determined by the Agency.
13        (c)  The Agency shall  establish  procedures,  not  later
14    than  January 1, 1984, relating to the collection of the fees
15    authorized by this Section. Such  procedures  shall  include,
16    but  not be limited to: (1) necessary records identifying the
17    quantities of hazardous waste received or disposed;  (2)  the
18    form  and  submission  of reports to accompany the payment of
19    fees to the Agency; and (3) the time and manner of payment of
20    fees to the Agency, which payments shall be  not  more  often
21    than quarterly.
22        (d)  Beginning July 1, 1996, the Agency shall deposit all
23    such  receipts  in  the  State  Treasury to the credit of the
24    Hazardous Waste Fund, except as provided in subsection (e) of
25    this Section. All monies in the Hazardous Waste Fund shall be
26    used by the Agency for the following purposes:
27             (1)  Taking whatever preventive or corrective action
28        is necessary or appropriate, in  circumstances  certified
29        by  the Director, including but not limited to removal or
30        remedial  action  whenever  there   is   a   release   or
31        substantial  threat of a release of a hazardous substance
32        or pesticide; provided, the Agency shall expend  no  more
33        than   $1,000,000   on   any   single   incident  without
34        appropriation by the General Assembly.
35             (2)  To meet any requirements which must be  met  by
 
                            -14-           LRB9105635EGfgccr2
 1        the  State  in  order to obtain federal funds pursuant to
 2        the Comprehensive  Environmental  Response,  Compensation
 3        and Liability Act of 1980, (P.L. 96-510).
 4             (3)  In  an amount up to 30% of the amount collected
 5        as fees provided for in this  Section,  for  use  by  the
 6        Agency  to  conduct  groundwater  protection  activities,
 7        including  providing grants to appropriate units of local
 8        government which are addressing protection of underground
 9        waters pursuant to the provisions of this Act.
10             (4)  To fund the development and  implementation  of
11        the model pesticide collection program under Section 19.1
12        of the Illinois Pesticide Act.
13             (5)  To  the  extent  the  Agency  has  received and
14        deposited monies in the Fund other  than  fees  collected
15        under subsection (b) of this Section, to pay for the cost
16        of  Agency  employees  for services provided in reviewing
17        the performance of response  actions  pursuant  to  Title
18        XVII of this Act.
19             (6)  In  an  amount  up to 15% of the fees collected
20        annually under subsection (b) of this Section, for use by
21        the Agency for administration of the provisions  of  this
22        Section.
23        (e)  The   Agency  shall  deposit  10%  of  all  receipts
24    collected under subsection (b) of this Section,  but  not  to
25    exceed $200,000 per year, in the State Treasury to the credit
26    of the Hazardous Waste Research Fund established by this Act.
27    Pursuant  to  appropriation, all monies in such Fund shall be
28    used by the Department of Natural Resources for the  purposes
29    set forth in this subsection.
30        The  Department  of  Natural  Resources  may  enter  into
31    contracts with business, industrial, university, governmental
32    or  other qualified individuals or organizations to assist in
33    the research and development intended to recycle, reduce  the
34    volume   of,  separate,  detoxify  or  reduce  the  hazardous
35    properties of hazardous wastes in Illinois.   Monies  in  the
 
                            -15-           LRB9105635EGfgccr2
 1    Fund  may also be used by the Department of Natural Resources
 2    for technical studies, monitoring activities, and educational
 3    and research activities which are related to  the  protection
 4    of   underground  waters.   Monies  in  the  Hazardous  Waste
 5    Research Fund may be used to administer the  Illinois  Health
 6    and   Hazardous  Substances  Registry  Act.   Monies  in  the
 7    Hazardous Waste Research Fund  shall  not  be  used  for  any
 8    sanitary  landfill  or the acquisition or construction of any
 9    facility.  This does not preclude the purchase  of  equipment
10    for  the  purpose  of  public  demonstration  projects.   The
11    Department  of  Natural  Resources shall adopt guidelines for
12    cost sharing, selecting,  and  administering  projects  under
13    this subsection.
14        (f)  Notwithstanding  any other provision or rule of law,
15    and subject only to the defenses set forth in subsection  (j)
16    of  this  Section,  the following persons shall be liable for
17    all costs of removal or remedial action incurred by the State
18    of Illinois or any unit of local government as a result of  a
19    release  or  substantial  threat  of a release of a hazardous
20    substance or pesticide:
21             (1)  the owner and operator of a facility or  vessel
22        from  which  there  is a release or substantial threat of
23        release of a hazardous substance or pesticide;
24             (2)  any  person  who  at  the  time  of   disposal,
25        transport,  storage or treatment of a hazardous substance
26        or pesticide owned or operated  the  facility  or  vessel
27        used  for  such disposal, transport, treatment or storage
28        from which there was a release or substantial threat of a
29        release of any such hazardous substance or pesticide;
30             (3)  any  person  who  by  contract,  agreement,  or
31        otherwise has arranged with another party or  entity  for
32        transport,  storage,  disposal  or treatment of hazardous
33        substances or pesticides owned, controlled  or  possessed
34        by such person at a facility owned or operated by another
35        party or entity from which facility there is a release or
 
                            -16-           LRB9105635EGfgccr2
 1        substantial   threat  of  a  release  of  such  hazardous
 2        substances or pesticides; and
 3             (4)  any  person  who  accepts   or   accepted   any
 4        hazardous  substances  or  pesticides  for  transport  to
 5        disposal,  storage  or treatment facilities or sites from
 6        which there is a release or a  substantial  threat  of  a
 7        release of a hazardous substance or pesticide.
 8        Any  monies received by the State of Illinois pursuant to
 9    this subsection (f) shall be deposited in the State  Treasury
10    to the credit of the Hazardous Waste Fund.
11        In  accordance with the other provisions of this Section,
12    costs of removal or remedial action incurred  by  a  unit  of
13    local  government  may  be  recovered in an action before the
14    Board  brought  by  the  unit  of  local   government   under
15    subsection  (i)  of  this  Section.   Any monies so recovered
16    shall be paid to the unit of local government.
17        (g)(1)  No indemnification,  hold  harmless,  or  similar
18        agreement  or  conveyance  shall be effective to transfer
19        from the owner or operator of any vessel or  facility  or
20        from  any  person  who  may  be  liable  for a release or
21        substantial threat of a release under  this  Section,  to
22        any   other  person  the  liability  imposed  under  this
23        Section.  Nothing in this Section shall bar any agreement
24        to insure, hold harmless or indemnify  a  party  to  such
25        agreements for any liability under this Section.
26             (2)  Nothing   in   this   Section,   including  the
27        provisions of paragraph (g)(1) of this Section, shall bar
28        a cause of action that an owner or operator or any  other
29        person  subject  to  liability  under  this Section, or a
30        guarantor, has or would have, by reason of subrogation or
31        otherwise against any person.
32        (h)  For purposes of this Section:
33             (1)  The term "facility" means:
34                  (A)  any  building,  structure,   installation,
35             equipment,   pipe  or  pipeline  including  but  not
 
                            -17-           LRB9105635EGfgccr2
 1             limited to any pipe into a sewer or  publicly  owned
 2             treatment    works,   well,   pit,   pond,   lagoon,
 3             impoundment,  ditch,  landfill,  storage  container,
 4             motor vehicle, rolling stock, or aircraft; or
 5                  (B)  any  site  or  area  where   a   hazardous
 6             substance  has  been deposited, stored, disposed of,
 7             placed, or otherwise come to be located.
 8             (2)  The term "owner or operator" means:
 9                  (A)  any person owning or operating a vessel or
10             facility;
11                  (B)  in the case of an abandoned facility,  any
12             person owning or operating the abandoned facility or
13             any   person   who  owned,  operated,  or  otherwise
14             controlled  activities  at  the  abandoned  facility
15             immediately prior to such abandonment;
16                  (C)  in the case of a land trust as defined  in
17             Section  2 of the Land Trustee as Creditor Act,  the
18             person owning the beneficial interest  in  the  land
19             trust;
20                  (D)  in  the  case of a fiduciary (other than a
21             land trustee), the estate, trust  estate,  or  other
22             interest  in  property held in a fiduciary capacity,
23             and not the fiduciary.  For  the  purposes  of  this
24             Section,  "fiduciary"  means  a  trustee,  executor,
25             administrator,  guardian,  receiver,  conservator or
26             other person holding  a  facility  or  vessel  in  a
27             fiduciary capacity;
28                  (E)  in  the case of a "financial institution",
29             meaning the Illinois Housing  Development  Authority
30             and  that  term  as  defined  in  Section  2  of the
31             Illinois Banking Act, that has  acquired  ownership,
32             operation,  management,  or  control  of a vessel or
33             facility through foreclosure or under the terms of a
34             security interest held by the financial  institution
35             or under the terms of an extension of credit made by
 
                            -18-           LRB9105635EGfgccr2
 1             the financial institution, the financial institution
 2             only  if  the financial institution takes possession
 3             of  the  vessel  or  facility  and   the   financial
 4             institution  exercises actual, direct, and continual
 5             or recurrent managerial control in the operation  of
 6             the  vessel  or  facility  that  causes a release or
 7             substantial threat  of  a  release  of  a  hazardous
 8             substance  or  pesticide  resulting  in  removal  or
 9             remedial action;
10                  (F)  In  the  case  of  an owner of residential
11             property, the owner if the owner is a  person  other
12             than an individual, or if the owner is an individual
13             who owns more than 10 dwelling units in Illinois, or
14             if   the   owner,   or   an  agent,  representative,
15             contractor, or employee of the  owner,  has  caused,
16             contributed to, or allowed the release or threatened
17             release  of  a hazardous substance or pesticide. The
18             term  "residential  property"  means  single  family
19             residences of one to  4  dwelling  units,  including
20             accessory    land,    buildings,   or   improvements
21             incidental to those dwellings that  are  exclusively
22             used  for  the residential use. For purposes of this
23             subparagraph (F),  the  term  "individual"  means  a
24             natural  person, and shall not include corporations,
25             partnerships, trusts, or other non-natural persons.
26                  (G)  In the case  of  any  facility,  title  or
27             control  of  which  was  conveyed due to bankruptcy,
28             foreclosure,  tax   delinquency,   abandonment,   or
29             similar   means   to   a  unit  of  State  or  local
30             government,  any  person  who  owned,  operated,  or
31             otherwise  controlled  activities  at  the  facility
32             immediately beforehand.
33                  (H)  The term  "owner  or  operator"  does  not
34             include  a  unit  of State or local government which
35             acquired ownership or  control  through  bankruptcy,
 
                            -19-           LRB9105635EGfgccr2
 1             tax delinquency, abandonment, or other circumstances
 2             in  which the government acquires title by virtue of
 3             its function as sovereign.  The  exclusion  provided
 4             under this paragraph shall not apply to any State or
 5             local  government which has caused or contributed to
 6             the release or threatened  release  of  a  hazardous
 7             substance  from  the  facility,  and such a State or
 8             local government shall be subject to the  provisions
 9             of  this  Act  in  the  same  manner and to the same
10             extent, both procedurally and substantively, as  any
11             nongovernmental  entity,  including  liability under
12             Section 22.2(f).
13        (i)  The costs and damages provided for in  this  Section
14    may  be  imposed by the Board in an action brought before the
15    Board in accordance with Title VIII of this Act, except  that
16    Section 33(c) of this Act shall not apply to any such action.
17        (j) (1)  There  shall  be no liability under this Section
18    for  a  person  otherwise  liable  who  can  establish  by  a
19    preponderance of the evidence that the release or substantial
20    threat of release of a hazardous substance  and  the  damages
21    resulting therefrom were caused solely by:
22             (A)  an act of God;
23             (B)  an act of war;
24             (C)  an  act or omission of a third party other than
25        an employee or agent of the defendant, or other than  one
26        whose  act  or  omission  occurs  in  connection  with  a
27        contractual    relationship,    existing    directly   or
28        indirectly, with the defendant  (except  where  the  sole
29        contractual  arrangement  arises  from a published tariff
30        and acceptance for carriage by a common carrier by rail),
31        if the defendant establishes by a  preponderance  of  the
32        evidence  that  (i) he exercised due care with respect to
33        the   hazardous   substance   concerned,   taking    into
34        consideration   the  characteristics  of  such  hazardous
35        substance,  in  light   of   all   relevant   facts   and
 
                            -20-           LRB9105635EGfgccr2
 1        circumstances,  and  (ii)  he  took  precautions  against
 2        foreseeable acts or omissions of any such third party and
 3        the  consequences that could foreseeably result from such
 4        acts or omissions; or
 5             (D)  any combination of the foregoing paragraphs.
 6        (2)  There shall be no liability under this  Section  for
 7    any release permitted by State or federal law.
 8        (3)  There  shall  be no liability under this Section for
 9    damages as a result of actions taken or omitted in the course
10    of rendering care, assistance, or advice in  accordance  with
11    this Section or the National Contingency Plan pursuant to the
12    Comprehensive   Environmental   Response,   Compensation  and
13    Liability Act of 1980 (P.L. 96-510) or at the direction of an
14    on-scene coordinator appointed under such plan, with  respect
15    to  an incident creating a danger to public health or welfare
16    or the environment as a result of any release of a  hazardous
17    substance  or  a substantial threat thereof.  This subsection
18    shall not preclude liability for damages  as  the  result  of
19    gross  negligence  or  intentional  misconduct on the part of
20    such person.  For the purposes  of  the  preceding  sentence,
21    reckless,  willful,  or  wanton  misconduct  shall constitute
22    gross negligence.
23        (4)  There shall be no liability under this  Section  for
24    any  person  (including,  but  not  limited  to,  an owner of
25    residential  property  who  applies  a   pesticide   to   the
26    residential  property  or  who  has  another  person  apply a
27    pesticide to the residential property) for response costs  or
28    damages  as  the  result of the storage, handling and use, or
29    recommendation for storage, handling and use, of a  pesticide
30    consistent with:
31             (A)  its directions for storage, handling and use as
32        stated in its label or labeling;
33             (B)  its  warnings  and  cautions  as  stated in its
34        label or labeling; and
35             (C)  the uses for which it is registered  under  the
 
                            -21-           LRB9105635EGfgccr2
 1        Federal  Insecticide,  Fungicide  and Rodenticide Act and
 2        the Illinois Pesticide Act.
 3        (4.5)  There shall  be  no  liability  under  subdivision
 4    (f)(1)  of  this Section for response costs or damages as the
 5    result of a release  of  a  pesticide  from  an  agrichemical
 6    facility  site  if  the  Agency  has received notice from the
 7    Department of Agriculture pursuant to  Section  19.3  of  the
 8    Illinois   Pesticide  Act,  the  owner  or  operator  of  the
 9    agrichemical facility is proceeding with a corrective  action
10    plan  under the Agrichemical Facility Response Action Program
11    implemented under that Section, and the Agency has provided a
12    written endorsement of a corrective action plan.
13        (4.6)  There shall  be  no  liability  under  subdivision
14    (f)(1)  of  this Section for response costs or damages as the
15    result of a substantial threat of a release  of  a  pesticide
16    from an agrichemical facility site if the Agency has received
17    notice from the Department of Agriculture pursuant to Section
18    19.3  of the Illinois Pesticide Act and the owner or operator
19    of the agrichemical facility is proceeding with a  corrective
20    action  plan  under the Agrichemical Facility Response Action
21    Program implemented under that Section.
22        (5)  Nothing in  this  subsection  (j)  shall  affect  or
23    modify  in any way the obligations or liability of any person
24    under any other provision of this Act  or  State  or  federal
25    law,  including  common  law,  for  damages,  injury, or loss
26    resulting from a release or substantial threat of  a  release
27    of  any hazardous substance or for removal or remedial action
28    or the costs of removal or remedial action of such  hazardous
29    substance.
30        (6)(A)  The  term  "contractual  relationship",  for  the
31    purpose  of  this subsection includes, but is not limited to,
32    land contracts, deeds or other instruments transferring title
33    or possession, unless the real property on which the facility
34    concerned is located was acquired by the defendant after  the
35    disposal  or  placement of the hazardous substance on, in, or
 
                            -22-           LRB9105635EGfgccr2
 1    at the  facility,  and  one  or  more  of  the  circumstances
 2    described  in clause (i), (ii), or (iii) of this paragraph is
 3    also established by the defendant by a preponderance  of  the
 4    evidence:
 5             (i)  At the time the defendant acquired the facility
 6        the defendant did not know and had no reason to know that
 7        any  hazardous  substance  which  is  the  subject of the
 8        release or threatened release was disposed of on,  in  or
 9        at the facility.
10             (ii)  The  defendant  is  a  government entity which
11        acquired the facility by escheat, or  through  any  other
12        involuntary  transfer  or  acquisition,  or  through  the
13        exercise  of  eminent  domain  authority  by  purchase or
14        condemnation.
15             (iii)  The  defendant  acquired  the   facility   by
16        inheritance or bequest.
17        In  addition to establishing the foregoing, the defendant
18    must establish that he  has  satisfied  the  requirements  of
19    subparagraph (C) of paragraph (l) of this subsection (j).
20        (B)  To establish the defendant had no reason to know, as
21    provided in clause (i) of subparagraph (A) of this paragraph,
22    the   defendant   must   have  undertaken,  at  the  time  of
23    acquisition,  all  appropriate  inquiry  into  the   previous
24    ownership  and  uses  of  the  property  consistent with good
25    commercial or customary practice in  an  effort  to  minimize
26    liability.  For purposes of the preceding sentence, the court
27    shall   take   into  account  any  specialized  knowledge  or
28    experience on the part of the defendant, the relationship  of
29    the   purchase   price  to  the  value  of  the  property  if
30    uncontaminated, commonly known  or  reasonably  ascertainable
31    information  about  the  property,  the  obviousness  of  the
32    presence or likely presence of contamination at the property,
33    and  the  ability to detect such contamination by appropriate
34    inspection.
35        (C)  Nothing in this paragraph (6) or in subparagraph (C)
 
                            -23-           LRB9105635EGfgccr2
 1    of paragraph  (1)  of  this  subsection  shall  diminish  the
 2    liability  of any previous owner or operator of such facility
 3    who would otherwise be liable under this Act. Notwithstanding
 4    this  paragraph  (6),  if  the  defendant   obtained   actual
 5    knowledge of the release or threatened release of a hazardous
 6    substance  at such facility when the defendant owned the real
 7    property and then subsequently transferred ownership  of  the
 8    property to another person without disclosing such knowledge,
 9    such  defendant  shall  be treated as liable under subsection
10    (f) of this Section and no defense under subparagraph (C)  of
11    paragraph  (1)  of this subsection shall be available to such
12    defendant.
13        (D)  Nothing in  this  paragraph  (6)  shall  affect  the
14    liability  under  this  Act of a defendant who, by any act or
15    omission, caused or contributed to the release or  threatened
16    release  of a hazardous substance which is the subject of the
17    action relating to the facility.
18        (E) (i)  Except  as  provided  in  clause  (ii)  of  this
19    subparagraph (E), a defendant who has acquired real  property
20    shall  have  established a rebuttable presumption against all
21    State claims and a conclusive presumption against all private
22    party claims that the  defendant  has  made  all  appropriate
23    inquiry  within  the  meaning  of  subdivision (6)(B) of this
24    subsection (j) if the defendant proves that immediately prior
25    to or at the time of the acquisition:
26             (I)  the defendant obtained a Phase I  Environmental
27        Audit  of  the  real  property  that meets or exceeds the
28        requirements of this subparagraph (E), and  the  Phase  I
29        Environmental  Audit  did  not  disclose  the presence or
30        likely presence of a release or a substantial threat of a
31        release of a hazardous substance or pesticide at, on, to,
32        or from the real property; or
33             (II)  the   defendant   obtained    a    Phase    II
34        Environmental  Audit  of  the real property that meets or
35        exceeds the requirements of this  subparagraph  (E),  and
 
                            -24-           LRB9105635EGfgccr2
 1        the  Phase  II  Environmental  Audit did not disclose the
 2        presence or likely presence of a release or a substantial
 3        threat of a release of a hazardous substance or pesticide
 4        at, on, to, or from the real property.
 5        (ii)  No presumption shall be created under clause (i) of
 6    this subparagraph (E), and a  defendant  shall  be  precluded
 7    from   demonstrating   that   the   defendant  has  made  all
 8    appropriate inquiry within the meaning of subdivision  (6)(B)
 9    of this subsection (j), if:
10             (I)  the defendant fails to obtain all Environmental
11        Audits  required  under this subparagraph (E) or any such
12        Environmental  Audit  fails  to  meet   or   exceed   the
13        requirements of this subparagraph (E);
14             (II)  a  Phase  I  Environmental Audit discloses the
15        presence or likely presence of a release or a substantial
16        threat of a release of a hazardous substance or pesticide
17        at, on, to, or from  real  property,  and  the  defendant
18        fails to obtain a Phase II Environmental Audit;
19             (III)  a  Phase II Environmental Audit discloses the
20        presence or likely presence of a release or a substantial
21        threat of a release of a hazardous substance or pesticide
22        at, on, to, or from the real property;
23             (IV)  the defendant  fails  to  maintain  a  written
24        compilation   and   explanatory  summary  report  of  the
25        information reviewed in the course of each  Environmental
26        Audit under this subparagraph (E); or
27             (V)  there   is  any  evidence  of  fraud,  material
28        concealment,  or  material   misrepresentation   by   the
29        defendant  of  environmental  conditions  or  of  related
30        information   discovered   during   the   course   of  an
31        Environmental Audit.
32        (iii)  For purposes of this subparagraph  (E),  the  term
33    "environmental  professional" means an individual (other than
34    a  practicing  attorney)  who,  through  academic   training,
35    occupational  experience,  and reputation (such as engineers,
 
                            -25-           LRB9105635EGfgccr2
 1    industrial hygienists, or geologists) can objectively conduct
 2    one or more aspects of an Environmental Audit and who either:
 3             (I)  maintains at  the  time  of  the  Environmental
 4        Audit  and  for  at  least  one  year thereafter at least
 5        $500,000  of  environmental   consultants'   professional
 6        liability  insurance  coverage  issued  by  an  insurance
 7        company licensed to do business in Illinois; or
 8             (II)  is  an Illinois licensed professional engineer
 9        or an Illinois licensed industrial hygienist.
10        An environmental professional may employ persons who  are
11    not  environmental professionals to assist in the preparation
12    of an Environmental Audit  if  such  persons  are  under  the
13    direct   supervision   and   control   of  the  environmental
14    professional.
15        (iv)  For purposes of this  subparagraph  (E),  the  term
16    "real property" means any interest in any parcel of land, and
17    shall  not  be  limited  to  the definition of the term "real
18    property" contained in the Responsible Property Transfer  Act
19    of  1988.   For  purposes  of this subparagraph (E), the term
20    "real property" includes, but is not limited  to,  buildings,
21    fixtures, and improvements.
22        (v)  For  purposes  of  this  subparagraph  (E), the term
23    "Phase I Environmental Audit" means an investigation of  real
24    property,   conducted   by  environmental  professionals,  to
25    discover the presence or likely presence of a  release  or  a
26    substantial  threat  of a release of a hazardous substance or
27    pesticide at, on, to, or from real property,  and  whether  a
28    release  or  a substantial threat of a release of a hazardous
29    substance or pesticide has occurred or may occur at, on,  to,
30    or from the real property.  The investigation shall include a
31    review   of  at  least  each  of  the  following  sources  of
32    information concerning the current and previous ownership and
33    use of the real property:
34             (I)  Recorded chain of title documents regarding the
35        real property, including all  deeds,  easements,  leases,
 
                            -26-           LRB9105635EGfgccr2
 1        restrictions, and covenants for a period of 50 years.
 2             (II)  Aerial photographs that may reflect prior uses
 3        of  the  real property and that are reasonably obtainable
 4        through State, federal, or local government  agencies  or
 5        bodies.
 6             (III)  Recorded environmental cleanup liens, if any,
 7        against  the  real  property that have arisen pursuant to
 8        this Act or federal statutes.
 9             (IV)  Reasonably  obtainable  State,  federal,   and
10        local  government  records of sites or facilities at, on,
11        or near the real property to  discover  the  presence  or
12        likely  presence  of  a hazardous substance or pesticide,
13        and whether a  release  or  a  substantial  threat  of  a
14        release   of  a  hazardous  substance  or  pesticide  has
15        occurred or may occur  at,  on,  to,  or  from  the  real
16        property.  Such government records shall include, but not
17        be limited to:  reasonably obtainable State, federal, and
18        local government investigation reports for those sites or
19        facilities;  reasonably  obtainable  State,  federal, and
20        local government records of activities likely to cause or
21        contribute to a release or  a  threatened  release  of  a
22        hazardous  substance or pesticide at, on, to, or from the
23        real property, including landfill  and  other  treatment,
24        storage,   and  disposal  location  records,  underground
25        storage tank records,  hazardous  waste  transporter  and
26        generator records, and spill reporting records; and other
27        reasonably   obtainable   State,   federal,   and   local
28        government environmental records that report incidents or
29        activities  that  are  likely to cause or contribute to a
30        release or a threatened release of a hazardous  substance
31        or  pesticide  at, on, to, or from the real property.  In
32        order to be deemed "reasonably  obtainable"  as  required
33        herein, a copy or reasonable facsimile of the record must
34        be  obtainable  from the government agency by request and
35        upon payment of a processing fee, if any, established  by
 
                            -27-           LRB9105635EGfgccr2
 1        the  government  agency.   The  Agency  is  authorized to
 2        establish  a  reasonable  fee  for  processing   requests
 3        received  under  this  subparagraph (E) for records.  All
 4        fees collected by the Agency under  this  clause  (v)(IV)
 5        shall  be  deposited  into  the  Environmental Protection
 6        Permit and Inspection Fund  in  accordance  with  Section
 7        22.8.  Notwithstanding any other law, if the fee is paid,
 8        commencing  on  the effective date of this amendatory Act
 9        of 1993 and until one year after the  effective  date  of
10        this  amendatory  Act  of  1993, the Agency shall use its
11        best efforts to process a  request  received  under  this
12        subparagraph    (E)   as   expeditiously   as   possible.
13        Notwithstanding any other law, commencing one year  after
14        the effective date of this amendatory Act of 1993, if the
15        fee  is paid, the Agency shall process a request received
16        under this subparagraph (E) for records within 30 days of
17        the receipt of such request.
18             (V)  A visual site inspection of the  real  property
19        and  all facilities and improvements on the real property
20        and  a  visual  inspection  of   properties   immediately
21        adjacent to the real property, including an investigation
22        of  any  use,  storage,  treatment,  spills  from use, or
23        disposal of hazardous substances, hazardous wastes, solid
24        wastes, or pesticides.   If  the  person  conducting  the
25        investigation  is  denied access to any property adjacent
26        to the real property, the person shall conduct  a  visual
27        inspection of that adjacent property from the property to
28        which  the  person  does  have  access  and  from  public
29        rights-of-way.
30             (VI)  A review of business records for activities at
31        or on the real property for a period of 50 years.
32        (vi)  For  purposes  of subparagraph (E), the term "Phase
33    II  Environmental  Audit"  means  an  investigation  of  real
34    property,   conducted   by    environmental    professionals,
35    subsequent  to a Phase I Environmental Audit.  If the Phase I
 
                            -28-           LRB9105635EGfgccr2
 1    Environmental Audit discloses the presence or likely presence
 2    of a hazardous substance or a pesticide or  a  release  or  a
 3    substantial  threat  of a release of a hazardous substance or
 4    pesticide:
 5             (I)  In or to soil, the defendant, as  part  of  the
 6        Phase  II  Environmental Audit, shall perform a series of
 7        soil borings sufficient to determine whether there  is  a
 8        presence  or  likely presence of a hazardous substance or
 9        pesticide and whether there is or has been a release or a
10        substantial threat of a release of a hazardous  substance
11        or pesticide at, on, to, or from the real property.
12             (II)  In  or  to groundwater, the defendant, as part
13        of  the  Phase  II  Environmental  Audit,  shall:  review
14        information   regarding   local   geology,   water   well
15        locations, and locations of waters of the State as may be
16        obtained  from  State,  federal,  and  local   government
17        records,  including  but not limited to the United States
18        Geological Service, the State Geological Survey  Division
19        of  the  Department  of  Natural Resources, and the State
20        Water  Survey  Division  of  the  Department  of  Natural
21        Resources; and perform groundwater monitoring  sufficient
22        to  determine  whether  there  is  a  presence  or likely
23        presence of  a  hazardous  substance  or  pesticide,  and
24        whether  there  is or has been a release or a substantial
25        threat of a release of a hazardous substance or pesticide
26        at, on, to, or from the real property.
27             (III)  On  or  to   media   other   than   soil   or
28        groundwater,  the  defendant,  as  part  of  the Phase II
29        Environmental  Audit,  shall  perform  an   investigation
30        sufficient  to  determine  whether there is a presence or
31        likely presence of a hazardous  substance  or  pesticide,
32        and  whether  there  is  or  has  been  a  release  or  a
33        substantial  threat of a release of a hazardous substance
34        or pesticide at, on, to, or from the real property.
35        (vii)  The findings of each Environmental Audit  prepared
 
                            -29-           LRB9105635EGfgccr2
 1    under  this  subparagraph (E) shall be set forth in a written
 2    audit report.  Each audit report shall contain an affirmation
 3    by the defendant and by each environmental  professional  who
 4    prepared the Environmental Audit that the facts stated in the
 5    report  are  true  and are made under a penalty of perjury as
 6    defined in Section 32-2 of the Criminal Code of 1961.  It  is
 7    perjury  for any person to sign an audit report that contains
 8    a false material statement that the person does  not  believe
 9    to be true.
10        (viii)  The Agency is not required to review, approve, or
11    certify   the   results  of  any  Environmental  Audit.   The
12    performance of an Environmental Audit shall in no way entitle
13    a  defendant  to  a  presumption  of   Agency   approval   or
14    certification of the results of the Environmental Audit.
15        The presence or absence of a disclosure document prepared
16    under the Responsible Property Transfer Act of 1988 shall not
17    be  a  defense  under  this  Act  and  shall  not satisfy the
18    requirements of subdivision (6)(A) of this subsection (j).
19        (7)  No person shall be liable  under  this  Section  for
20    response  costs  or  damages  as  the  result  of a pesticide
21    release if the Agency has  found  that  a  pesticide  release
22    occurred  based  on  a  Health  Advisory  issued  by the U.S.
23    Environmental Protection Agency or an action level  developed
24    by the Agency, unless the Agency notified the manufacturer of
25    the pesticide and provided an opportunity of not less than 30
26    days  for  the  manufacturer  to comment on the technical and
27    scientific justification supporting the  Health  Advisory  or
28    action level.
29        (8)  No  person  shall  be  liable under this Section for
30    response costs or  damages  as  the  result  of  a  pesticide
31    release  that  occurs  in  the  course  of  a  farm pesticide
32    collection  program  operated  under  Section  19.1  of   the
33    Illinois Pesticide Act, unless the release results from gross
34    negligence or intentional misconduct.
35        (k)  If  any  person  who  is  liable  for  a  release or
 
                            -30-           LRB9105635EGfgccr2
 1    substantial threat of release of  a  hazardous  substance  or
 2    pesticide  fails  without sufficient cause to provide removal
 3    or remedial action upon or in accordance with  a  notice  and
 4    request by the Agency or upon or in accordance with any order
 5    of  the  Board or any court, such person may be liable to the
 6    State for punitive damages in an amount at  least  equal  to,
 7    and  not  more than 3 times, the amount of any costs incurred
 8    by the State of Illinois as a result of such failure to  take
 9    such  removal  or  remedial  action.   The  punitive  damages
10    imposed  by  the  Board  shall  be  in  addition to any costs
11    recovered from such person pursuant to this  Section  and  in
12    addition  to any other penalty or relief provided by this Act
13    or any other law.
14        Any  monies  received  by  the  State  pursuant  to  this
15    subsection (k) shall be  deposited  in  the  Hazardous  Waste
16    Fund.
17        (l)  Beginning January 1, 1988, the Agency shall annually
18    collect  a  $250  fee  for  each Special Waste Hauling Permit
19    Application and, in addition, shall collect a fee of $20  for
20    each  waste  hauling  vehicle identified in the annual permit
21    application and for each vehicle which is added to the permit
22    during the annual period. The Agency  shall  deposit  85%  of
23    such  fees  collected  under  this  subsection  in  the State
24    Treasury to the credit of the Hazardous Waste Research  Fund;
25    and shall deposit the remaining 15% of such fees collected in
26    the  State  Treasury  to  the  credit  of  the  Environmental
27    Protection  Permit and Inspection Fund.  The majority of such
28    receipts which are deposited in the Hazardous Waste  Research
29    Fund  pursuant  to  this  subsection  shall  be  used  by the
30    Department of Natural Resources for activities  which  relate
31    to  the  protection of underground waters. Persons engaged in
32    the offsite transportation of hazardous waste by highway  and
33    participating  in  the Uniform Program under subsection (l-5)
34    are not required to  file  a  Special  Waste  Hauling  Permit
35    Application.
 
                            -31-           LRB9105635EGfgccr2
 1        (l-5) (1)  As used in this subsection:
 2             "Base   state"   means   the  state  selected  by  a
 3        transporter according to the procedures established under
 4        the Uniform Program.
 5             "Base state agreement" means  an  agreement  between
 6        participating  states  electing  to  register  or  permit
 7        transporters.
 8             "Participating  state"  means  a  state  electing to
 9        participate in the Uniform Program  by  entering  into  a
10        base state agreement.
11             "Transporter"  means a person engaged in the offsite
12        transportation of hazardous waste by highway.
13             "Uniform application" means the uniform registration
14        and permit application form prescribed under the  Uniform
15        Program.
16             "Uniform  Program" means the Uniform State Hazardous
17        Materials Transportation Registration and Permit  Program
18        established  in the report submitted and amended pursuant
19        to 49 U.S.C.  Section  5119(b),  as  implemented  by  the
20        Agency under this subsection.
21             "Vehicle"  means  any  self-propelled motor vehicle,
22        except a truck tractor without  a  trailer,  designed  or
23        used for the transportation of hazardous waste subject to
24        the hazardous waste manifesting requirements of 40 U.S.C.
25        Section 6923(a)(3).
26             (2)  Beginning   July  1,  1998,  the  Agency  shall
27        implement   the   Uniform   State   Hazardous   Materials
28        Transportation Registration and Permit  Program.  On  and
29        after  that  date,  no person shall engage in the offsite
30        transportation of  hazardous  waste  by  highway  without
31        registering  and  obtaining  a  permit  under the Uniform
32        Program.  A  transporter  with  its  principal  place  of
33        business in Illinois shall register  with  and  obtain  a
34        permit  from  the  Agency.  A transporter that designates
35        another participating state in the Uniform Program as its
 
                            -32-           LRB9105635EGfgccr2
 1        base state shall likewise  register  with  and  obtain  a
 2        permit  from  that  state  before  transporting hazardous
 3        waste in Illinois.
 4             (3)  Beginning  July  1,  1998,  the  Agency   shall
 5        annually collect no more than a $250 processing and audit
 6        fee  from  each  transporter  of  hazardous waste who has
 7        filed a uniform application and, in addition, the  Agency
 8        shall    annually    collect   an   apportioned   vehicle
 9        registration fee of $20. The amount  of  the  apportioned
10        vehicle  registration  fee shall be calculated consistent
11        with  the  procedures  established  under   the   Uniform
12        Program.
13             All   moneys   received   by  the  Agency  from  the
14        collection of fees pursuant to the Uniform Program  shall
15        be deposited into the Hazardous Waste Transporter account
16        hereby created within the Environmental Protection Permit
17        and Inspection Fund.   Moneys remaining in the account at
18        the  close  of  the  fiscal  year  shall not lapse to the
19        General Revenue Fund.  The State  Treasurer  may  receive
20        money  or  other  assets from any source for deposit into
21        the account.  The  Agency  may  expend  moneys  from  the
22        account,  upon  appropriation,  for the implementation of
23        the Uniform Program, including the costs to the Agency of
24        fee collection and administration.   In  addition,  funds
25        not  expended  for  the  implementation  of  the  Uniform
26        Program  may  be  utilized  for  emergency  response  and
27        cleanup    activities    related   to   hazardous   waste
28        transportation that are initiated by the Agency.
29             Whenever  the  amount   of   the   Hazardous   Waste
30    Transporter  account  exceeds  by  115%  the  amount annually
31    appropriated by the General Assembly, the Agency shall credit
32    participating transporters an amount,  proportionately  based
33    on the amount of the vehicle fee paid, equal to the excess in
34    the  account,  and  shall  determine  the  need to reduce the
35    amount of the fee  charged  transporters  in  the  subsequent
 
                            -33-           LRB9105635EGfgccr2
 1    fiscal year by the amount of the credit.
 2             (4) (A)  The  Agency may propose and the Board shall
 3        adopt rules as necessary to  implement  and  enforce  the
 4        Uniform  Program.  The Agency is authorized to enter into
 5        agreements with other agencies of this State as necessary
 6        to carry out administrative functions or  enforcement  of
 7        the Uniform Program.
 8             (B)  The  Agency  shall  recognize a Uniform Program
 9        registration as valid for one year from the date a notice
10        of registration form is issued and a permit as valid  for
11        3 years from the date issued or until a transporter fails
12        to renew its registration, whichever occurs first.
13             (C)  The  Agency  may  inspect  or examine any motor
14        vehicle or facility operated by a transporter,  including
15        papers,  books, records, documents, or other materials to
16        determine if a transporter is complying with the  Uniform
17        Program.   The Agency may also conduct investigations and
18        audits as necessary to  determine  if  a  transporter  is
19        entitled  to a permit or to make suspension or revocation
20        determinations  consistent  with  the  standards  of  the
21        Uniform Program.
22             (5)  The  Agency  may  enter  into  agreements  with
23        federal  agencies,  national   repositories,   or   other
24        participating  states  as  necessary  to  allow  for  the
25        reciprocal  registration  and  permitting of transporters
26        pursuant to the Uniform  Program.    The  agreements  may
27        include  procedures  for  determining  a  base state, the
28        collection and distribution of registration fees, dispute
29        resolution, the exchange of information for reporting and
30        enforcement purposes, and other provisions  necessary  to
31        fully  implement,  administer,  and  enforce  the Uniform
32        Program.
33        (m)  (Blank).
34        (n)  (Blank).
35    (Source:  P.A.  89-94,  eff.  7-6-95;  89-158,  eff.  1-1-96;
 
                            -34-           LRB9105635EGfgccr2
 1    89-431, eff. 12-15-95;  89-443,  eff.  7-1-96;  89-445,  eff.
 2    2-7-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-219, eff.
 3    7-25-97; 90-773, eff. 8-14-98.)

 4        (415 ILCS 5/58)
 5        Sec. 58. Intent.  It is the intent of this Title:
 6             (1)  To establish a risk-based system of remediation
 7        based  on  protection of human health and the environment
 8        relative to present and future uses of the site.
 9             (2)  To assure that the land use for which  remedial
10        action  was  undertaken  will  not  be  modified  without
11        consideration of the adequacy of such remedial action for
12        the new land use.
13             (3)  To provide incentives to the private sector  to
14        undertake  remedial action.
15             (4)  To  establish  expeditious alternatives for the
16        review of site  investigation  and  remedial  activities,
17        including a privatized review process.
18             (5)  To  assure  that the resources of the Hazardous
19        Waste Fund are used in a manner  that  is  protective  of
20        human  health and the environment relative to present and
21        future uses of the site and surrounding area.
22             (6)  To  provide  assistance  to  units   of   local
23        government  for remediation of properties contaminated or
24        potentially contaminated by  commercial,  industrial,  or
25        other  uses,  to  provide  loans for the redevelopment of
26        brownfields,  and  to  establish  and  provide  for   the
27        administration of the Brownfields Redevelopment Fund.
28    (Source:  P.A.  89-431,  eff.  12-15-95; 89-443, eff. 7-1-96;
29    90-123, eff. 7-21-97.)

30        (415 ILCS 5/58.3)
31        Sec. 58.3. Site  Investigation  and  Remedial  Activities
32    Program; Brownfields Redevelopment Fund.
33        (a)  The  General  Assembly  hereby  establishes  by this
 
                            -35-           LRB9105635EGfgccr2
 1    Title a Site Investigation and Remedial  Activities   Program
 2    for  sites  subject  to  this  Title.   This program shall be
 3    administered by the Illinois Environmental Protection  Agency
 4    under  this  Title  XVII  and  rules  adopted by the Illinois
 5    Pollution Control Board.
 6        (b)  (1) The General Assembly hereby creates  within  the
 7        State  Treasury  a  special  fund  to  be  known  as  the
 8        Brownfields  Redevelopment Fund, consisting of 2 programs
 9        to be  known  as  the  "Brownfields  Redevelopment  Grant
10        Program"   and   the   "Brownfields   Redevelopment  Loan
11        Program", which shall be used  and  administered  by  the
12        Agency as provided in Sections Section 58.13 and 58.15 of
13        this  Act and the rules adopted under those Sections that
14        Section.  The  Brownfields  Redevelopment  Fund  ("Fund")
15        shall   contain  moneys  transferred  from  the  Response
16        Contractors Indemnification Fund and  other  moneys  made
17        available for deposit into the Fund.
18             (2)  The  State  Treasurer, ex officio, shall be the
19        custodian of the Fund, and the Comptroller  shall  direct
20        payments  from  the Fund upon vouchers properly certified
21        by the Agency.  The Treasurer shall credit  to  the  Fund
22        interest  earned  on  moneys  contained in the Fund.  The
23        Agency shall have the authority to accept,  receive,  and
24        administer  on  behalf  of  the  State any grants, gifts,
25        loans, reimbursements or payments for services, or  other
26        moneys  made  available  to the State from any source for
27        purposes of the Fund.  Those moneys  shall  be  deposited
28        into   the   Fund,   unless  otherwise  required  by  the
29        Environmental Protection Act or by federal law.
30             (3)  Pursuant to appropriation, all  moneys  in  the
31        Fund  shall  be  used  by the Agency for the purposes set
32        forth in subdivision (b)(4) of this Section and Sections
33        Section 58.13 and 58.15 of this  Act  and  to  cover  the
34        Agency's  costs of program development and administration
35        under those Sections that Section.
 
                            -36-           LRB9105635EGfgccr2
 1             (4)  The Agency shall have the power to  enter  into
 2        intergovernmental  agreements with the federal government
 3        or  the  State,  or  any  instrumentality  thereof,   for
 4        purposes  of  capitalizing  the Brownfields Redevelopment
 5        Fund.  Moneys on deposit in the Brownfields Redevelopment
 6        Fund may be used for the creation  of  reserve  funds  or
 7        pledged funds that secure the obligations of repayment of
 8        loans  made  pursuant  to Section 58.15 of this Act.  For
 9        the purpose of obtaining capital  for  deposit  into  the
10        Brownfields Redevelopment Fund, the Agency may also enter
11        into  agreements  with  financial  institutions and other
12        persons for the purpose of selling loans and developing a
13        secondary market for such loans.  The Agency  shall  have
14        the  power to create and establish such reserve funds and
15        accounts as may be necessary or desirable  to  accomplish
16        its  purposes  under  this subsection and to allocate its
17        available  moneys   into   such   funds   and   accounts.
18        Investment  earnings  on  moneys  held in the Brownfields
19        Redevelopment Fund, including any reserve fund or pledged
20        fund,   shall   be   deposited   into   the   Brownfields
21        Redevelopment Fund.
22    (Source: P.A. 89-431, eff.  12-15-95;  89-443,  eff.  7-1-96;
23    90-123, eff. 7-21-97.)

24        (415 ILCS 5/58.15 new)
25        Sec. 58.15. Brownfields Redevelopment Loan Program.
26        (a)  The   Agency   shall   establish  and  administer  a
27    revolving loan  program  to  be  known  as  the  "Brownfields
28    Redevelopment  Loan  Program"  for  the  purpose of providing
29    loans to be used for site investigation, site remediation, or
30    both, at brownfields sites.   All  principal,  interest,  and
31    penalty  payments from loans made under this Section shall be
32    deposited into the Brownfields Redevelopment Fund and  reused
33    in accordance with this Section.
34        (b)  General requirements for loans:
 
                            -37-           LRB9105635EGfgccr2
 1             (1)  Loans  shall  be  at  or  below market interest
 2        rates  in  accordance  with  a  formula  set   forth   in
 3        regulations  promulgated  under  subsection  (c)  of this
 4        Section.
 5             (2)  Loans shall be awarded subject to  availability
 6        of  funding based on the order of receipt of applications
 7        satisfying  all  requirements  as  set   forth   in   the
 8        regulations  promulgated  under  subsection  (c)  of this
 9        Section.
10             (3)  The maximum loan amount under this Section  for
11        any one project is $1,000,000.
12             (4)  In  addition  to any requirements or conditions
13        placed on loans by regulation, loan agreements under  the
14        Brownfields  Redevelopment Loan Program shall include the
15        following requirements:
16                  (A)  the loan recipient shall secure  the  loan
17             repayment obligation;
18                  (B)  completion of the loan repayment shall not
19             exceed 5 years; and
20                  (C)  loan   agreements   shall  provide  for  a
21             confession of judgment by the  loan  recipient  upon
22             default.
23             (5)  Loans  shall  not  be  used  to  cover expenses
24        incurred prior to the approval of the loan application.
25             (6)  If the loan  recipient  fails  to  make  timely
26        payments  or  otherwise  fails to meet its obligations as
27        provided in this Section or implementing regulations, the
28        Agency is authorized to  pursue  the  collection  of  the
29        amounts  past  due, the outstanding loan balance, and the
30        costs thereby incurred, either pursuant to  the  Illinois
31        State  Collection  Act  of  1986  or  by  any other means
32        provided by  law,  including  the  taking  of  title,  by
33        foreclosure   or  otherwise,  to  any  project  or  other
34        property pledged,  mortgaged,  encumbered,  or  otherwise
35        available as security or collateral.
 
                            -38-           LRB9105635EGfgccr2
 1        (c)  The  Agency  shall  have the authority to enter into
 2    any contracts or agreements that may be  necessary  to  carry
 3    out  its  duties or responsibilities under this Section.  The
 4    Agency shall have the  authority  to  promulgate  regulations
 5    setting  forth  procedures and criteria for administering the
 6    Brownfields  Redevelopment  Loan  Program.   The  regulations
 7    promulgated by the Agency for loans under this Section  shall
 8    include, but need not be limited to, the following elements:
 9             (1)  loan application requirements;
10             (2)  determination  of credit worthiness of the loan
11        applicant;
12             (3)  types of security required for the loan;
13             (4)  types of collateral, as necessary, that can  be
14        pledged for the loan;
15             (5)  special  loan terms, as necessary, for securing
16        the repayment of the loan;
17             (6)  maximum loan amounts;
18             (7)  purposes for which loans are available;
19             (8)  application    periods    and    content     of
20        applications;
21             (9)  procedures    for   Agency   review   of   loan
22        applications,  loan  approvals  or  denials,   and   loan
23        acceptance by the loan recipient;
24             (10)  procedures for establishing interest rates;
25             (11)  requirements  applicable  to  disbursement  of
26        loans to loan recipients;
27             (12)  requirements   for   securing  loan  repayment
28        obligations;
29             (13)  conditions   or   circumstances   constituting
30        default;
31             (14)  procedures  for   repayment   of   loans   and
32        delinquent  loans  including,  but  not  limited  to, the
33        initiation of principal and interest  payments  following
34        loan acceptance;
35             (15)  loan   recipient   responsibilities  for  work
 
                            -39-           LRB9105635EGfgccr2
 1        schedules, work plans, reports, and record keeping;
 2             (16)  evaluation  of  loan  recipient   performance,
 3        including auditing and access to sites and records;
 4             (17)  requirements  applicable  to  contracting  and
 5        subcontracting   by   the   loan   recipient,   including
 6        procurement requirements;
 7             (18)  penalties    for   noncompliance   with   loan
 8        requirements and conditions, including stop-work  orders,
 9        termination, and recovery of loan funds; and
10             (19)  indemnification  of  the State of Illinois and
11        the Agency by the loan recipient.
12        (d)  Moneys in the Brownfields Redevelopment Fund may  be
13    used as a source of revenue or security for the principal and
14    interest on revenue or general obligation bonds issued by the
15    State   or   any  political  subdivision  or  instrumentality
16    thereof, if the proceeds of those  bonds  will  be  deposited
17    into the Fund.

18        Section  10.   Severability.   The provisions of this Act
19    are severable under Section 1.31 of the Statute on Statutes.

20        Section 99.  Effective date.  This Act takes effect  upon
21    becoming law.".

22        Submitted on                     , 1999.

23    ______________________________  _____________________________
24    Senator                         Representative
25    ______________________________  _____________________________
26    Senator                         Representative
27    ______________________________  _____________________________
28    Senator                         Representative
29    ______________________________  _____________________________
30    Senator                         Representative
31    ______________________________  _____________________________
32    Senator                         Representative
33    Committee for the Senate        Committee for the House

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