State of Illinois
91st General Assembly
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Public Act 91-0501

HB1893 Enrolled                                LRB9104708ACtm

    AN ACT to amend the Environmental Protection Act.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The Environmental Protection Act is amended
by changing Sections 19.1, 19.2, 19.3, 19.4, 19.5, 19.6,  and
19.8 as follows:

    (415 ILCS 5/19.1) (from Ch. 111 1/2, par. 1019.1)
    Sec.  19.1.   Legislative findings.  The General Assembly
finds:
    (a)  that local government units  require  assistance  in
financing  the  construction of wastewater treatment works in
order to comply with the  State's  program  of  environmental
protection and federally mandated requirements;
    (b)  that  the federal Water Quality Act of 1987 provides
an  important  source  of  grant  awards  to  the  State  for
providing assistance to local government  units  through  the
Water Pollution Control Loan Program;
    (c)  that  local  government  units  and  privately owned
community water supplies require assistance in financing  the
construction  of  their  public water supplies to comply with
State and federal drinking water laws and regulations;
    (d)  that the federal Safe Drinking Water  Act  ("SDWA"),
P.L.  93-532,  as  now  or  hereafter  amended,  provides  an
important  source of capitalization grant awards to the State
to provide assistance to local government units and privately
owned community  water  supplies  through  the  Public  Water
Supply Loan Program; and
    (e)  that  violations of State and federal drinking water
standards threaten the public interest, safety, and  welfare,
which  demands  that  the  Illinois  Environmental Protection
Agency expeditiously adopt emergency rules to administer  the
Public Water Supply Loan Program; and.
    (f)  that   the   General   Assembly   agrees   with  the
conclusions  and  recommendations  of  the  "Report  to   the
Illinois  General  Assembly  on the Issue of Expanding Public
Water Supply Loan Eligibility to  Privately  Owned  Community
Water  Supplies",  dated  August  1998,  including the stated
access to  the  Public  Water  Supply  Loan  Program  by  the
privately  owned  public water supplies so that the long term
integrity and viability of the corpus of  the  Fund  will  be
assured.
(Source: P.A. 90-121, eff. 7-17-97.)

    (415 ILCS 5/19.2) (from Ch. 111 1/2, par. 1019.2)
    Sec.  19.2.   As  used  in this Title, unless the context
clearly requires otherwise:
    (a)  "Agency" means the Illinois Environmental Protection
Agency.
    (b)  "Fund"  means  the  Water  Revolving  Fund   created
pursuant  to  this  Title,  consisting of the Water Pollution
Control Loan Program, the Public Water Supply  Loan  Program,
and the Loan Support Program.
    (c)  "Loan"  means  a  loan made from the Water Pollution
Control Loan Program or the Public Water Supply Loan  Program
to  an  eligible  local  government unit or a privately owned
community water supply as a result of a contractual agreement
between the Agency and such unit or privately owned community
water supply.
    (d)  "Construction"  means  any  one  or  more   of   the
following   which   is   undertaken  for  a  public  purpose:
preliminary planning to  determine  the  feasibility  of  the
treatment   works   or   public  water  supply,  engineering,
architectural, legal, fiscal or  economic  investigations  or
studies,   surveys,   designs,   plans,   working   drawings,
specifications,   procedures   or  other  necessary  actions,
erection,  building,  acquisition,  alteration,   remodeling,
improvement  or  extension of treatment works or public water
supplies, or the inspection or  supervision  of  any  of  the
foregoing items.  "Construction" also includes implementation
of source water quality protection measures and establishment
and   implementation   of  wellhead  protection  programs  in
accordance  with  Section  1452(k)(1)  of  the  federal  Safe
Drinking Water Act.
    (e)  "Intended use plan" means a plan  which  includes  a
description  of  the short and long term goals and objectives
of the Water Pollution Control Loan Program  and  the  Public
Water  Supply  Loan  Program,  project  categories, discharge
requirements, terms of financial  assistance  and  the  local
government units and privately owned community water supplies
communities to be served.
    (f)  "Treatment  works"  means  any  devices  and systems
owned by a local government unit and  used  in  the  storage,
treatment,   recycling,   and   reclamation  of  sewerage  or
industrial wastes of a liquid nature, including  intercepting
sewers,  outfall  sewers,  sewage collection systems, pumping
power and other  equipment,  and  appurtenances;  extensions,
improvements, remodeling, additions, and alterations thereof;
elements  essential  to  provide  a reliable recycled supply,
such as standby treatment units and  clear  well  facilities;
and  any  works,  including site acquisition of the land that
will be  an  integral  part  of  the  treatment  process  for
wastewater facilities.
    (g)  "Local    government    unit"    means   a   county,
municipality,  township,  municipal  or  county  sewerage  or
utility authority, sanitary district, public water  district,
improvement  authority  or  any  other  political subdivision
whose primary purpose is to construct, operate  and  maintain
wastewater   treatment  facilities  or  public  water  supply
facilities or both.
    (h)  "Privately owned community water supply" means:
         (1)  an  investor-owned  water  utility,  if   under
    Illinois  Commerce Commission regulation and operating as
    a separate and distinct water utility;
         (2)  a   not-for-profit   water   corporation,    if
    operating specifically as a water utility; and
         (3)  a   mutually   owned   or  cooperatively  owned
    community water system, if operating as a separate  water
    utility.
(Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)

    (415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)
    Sec. 19.3.  Water Revolving Fund.
    (a)  There  is hereby created within the State Treasury a
Water  Revolving  Fund,  consisting  of  3   interest-bearing
special  programs  to be known as the Water Pollution Control
Loan Program, the Public Water Supply Loan Program,  and  the
Loan Support Program, which shall be used and administered by
the Agency.
    (b)  The  Water  Pollution  Control Loan Program shall be
used and administered by the Agency to provide assistance  to
local government units for the following public purposes:
         (1)  to  accept  and retain funds from grant awards,
    appropriations, transfers, and payments of  interest  and
    principal;
         (2)  to   make  direct  loans  at  or  below  market
    interest rates to any eligible local government  unit  to
    finance the construction of wastewater treatments works;
         (3)  to   make  direct  loans  at  or  below  market
    interest rates to any eligible local government  unit  to
    buy  or  refinance  debt  obligations for treatment works
    incurred after March 7, 1985;
         (4)  to guarantee or purchase  insurance  for  local
    obligations where such action would improve credit market
    access or reduce interest rates;
         (5)  as  a  source  of  revenue  or security for the
    payment of principal and interest on revenue  or  general
    obligation  bonds issued by the State, if the proceeds of
    such bonds will be deposited in the Fund;
         (6)  to finance the reasonable costs incurred by the
    Agency in the administration of the Fund; and
         (7)  (blank) to transfer funds to the  Public  Water
    Supply Loan Program.
    (c)  The   Loan   Support   Program  shall  be  used  and
administered by the Agency for the following purposes:
         (1)  to accept and retain funds  from  grant  awards
    and appropriations;
         (2)  to finance the reasonable costs incurred by the
    Agency  in  the  administration  of  the  Fund, including
    activities under Title III of  this  Act,  including  the
    administration of the State construction grant program;
         (3)  to   transfer  funds  to  the  Water  Pollution
    Control Loan Program and the  Public  Water  Supply  Loan
    Program;
         (4)  to  accept  and  retain  a  portion of the loan
    repayments;
         (5)  to finance the development of the low  interest
    loan program for public water supply projects;
         (6)  to finance the reasonable costs incurred by the
    Agency  to  provide technical assistance for public water
    supplies; and
         (7)  to finance the reasonable costs incurred by the
    Agency for public water system supervision  programs,  to
    administer  or  provide  for technical assistance through
    source  water  protection  programs,   to   develop   and
    implement  a  capacity development strategy, to delineate
    and assess source water  protection  areas,  and  for  an
    operator certification program in accordance with Section
    1452 of the federal Safe Drinking Water Act.
    (d)  The  Public  Water Supply Loan Program shall be used
and administered by the Agency to provide assistance to local
government units and privately owned community water supplies
for public water supplies for the following public purposes:
         (1)  to accept and retain funds from  grant  awards,
    appropriations,  transfers,  and payments of interest and
    principal;
         (2)  to  make  direct  loans  at  or  below   market
    interest  rates  to any eligible local government unit or
    to any eligible privately owned community water supply to
    finance the construction of public water supplies;
         (3)  to buy or refinance the debt  obligation  of  a
    local government unit for costs incurred on or after July
    17,  1997  the  effective  date of this amendatory Act of
    1997;
         (4)  to  guarantee  local  obligations  where   such
    action  would  improve  credit  market  access  or reduce
    interest rates;
         (5)  as a source of  revenue  or  security  for  the
    payment  of  principal and interest on revenue or general
    obligation bonds issued by the State, if the proceeds  of
    such bonds will be deposited into the Fund; and
         (6)  (blank)   to   transfer   funds  to  the  Water
    Pollution Control Loan Program.
    (e)   The  Agency  is  designated  as  the  administering
agency of the Fund.  The Agency shall submit to the  Regional
Administrator  of  the United States Environmental Protection
Agency an intended use plan which outlines the  proposed  use
of  funds  available to the State.  The Agency shall take all
actions necessary to secure to the State the benefits of  the
federal  Water  Pollution  Control  Act  and the federal Safe
Drinking Water Act, as now or hereafter amended.
(Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
    (415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)
    Sec. 19.4.  Regulations; priorities.   The  Agency  shall
have  the  authority  to  promulgate regulations to set forth
procedures  and  criteria   concerning   loan   applications,
submittal  of  information  to  the  Agency  to ascertain the
credit worthiness of the loan applicant,  types  of  security
required  for  the loan including liens, mortgages, and other
kinds of security interests, types of collateral as necessary
that can be pledged  to  meet  or  exceed  the  loan  amount,
special  loan  terms  for securing repayment of the loan, the
staged access to the fund by privately owned community  water
supplies,  assurance of payment, interest rates, loan support
rates,  impact  on  user  charges,  eligibility  of  proposed
construction, priority  of  needs,  special  loan  terms  for
disadvantaged  communities,  and  maximum  limits  on  annual
distributions of funds to applicants or groups of applicants.
The Agency shall develop and maintain a priority list of loan
applicants  as categorized by need.  Priority in making loans
from the Water Pollution Control Loan Program must  first  be
given  to  local  government units which need to make capital
improvements to achieve compliance  with  National  Pollutant
Discharge  Elimination System permit requirements pursuant to
the federal Water Quality Act of 1987 and this Act.  Priority
in  making  loans  from  the Public Water Supply Loan Program
must first be given to local government units  and  privately
owned  community  water  supplies  that  need to make capital
improvements  to  protect  human  health   and   to   achieve
compliance  with the State and federal primary drinking water
standards adopted pursuant to this Act and the  federal  Safe
Drinking Water Act, as now and hereafter amended.
(Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)

    (415 ILCS 5/19.5) (from Ch. 111 1/2, par. 1019.5)
    Sec. 19.5.  Loans; repayment.
    (a)  The  Agency  shall  have the authority to make loans
for a public  purpose  to  local  government  units  for  the
construction of treatment works and to local government units
and  privately  owned community public water supplies for the
construction  of  public  water  supplies  pursuant  to   the
regulations promulgated under Section 19.4.
    (b)  Loans made from the Fund shall provide for:
         (1)  a schedule of disbursement of proceeds;
         (2)  a  fixed  rate  that includes interest and loan
    support based upon priority, but the  loan  support  rate
    shall  not  exceed one-half of the fixed rate established
    for each loan;
         (3)  a schedule of repayment;
         (4)  initiation of principal repayments  within  one
    year after the project is operational; and
         (5)  a confession of judgment upon default.
    (c)  The  Agency  may  amend  existing loans to include a
loan support rate only  if  the  overall  cost  to  the  loan
recipient is not increased.
    (d)  A local government unit or privately owned community
water  supply  shall secure the payment of its obligations to
the Fund  by  a  dedicated  source  of  repayment,  including
revenues  derived  from  the  imposition  of  rates, fees and
charges and by other types of security or collateral or  both
required  to  secure  the  loan  pursuant  to the regulations
promulgated  under  Section  19.4.   In  the   event   of   a
delinquency  as to payments to the Fund, the local government
unit or privately owned community water supply  shall  revise
its rates, fees and charges to meet its obligations.
(Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)

    (415 ILCS 5/19.6) (from Ch. 111 1/2, par. 1019.6)
    Sec. 19.6.  Delinquent loan repayment.
    (a)  In  the event that a timely payment is not made by a
local government unit or the privately owned community  water
supply according to the loan schedule of repayment, the local
government  unit  or  privately  owned community water supply
shall notify the Agency in writing within 15 days  after  the
payment due date.  The notification shall include a statement
of  the  reasons  the  payment  was  not timely tendered, the
circumstances  under  which  the  late   payments   will   be
satisfied, and binding commitments to assure future payments.
After  receipt of this notification, the Agency shall confirm
in writing the acceptability of the plan or  take  action  in
accordance with subsection (b) of this Section.
    (b)  In  the  event  that  a  local  government  unit  or
privately  owned  community water supply fails to comply with
subsection (a) of this Section,  the  Agency  shall  promptly
issue a notice of delinquency to the local government unit or
privately  owned community water supply which shall require a
written  response  within  15  30  days.    The   notice   of
delinquency  shall require that the local government unit  or
privately owned community water supply revise its rates, fees
and charges to meet its obligations  pursuant  to  subsection
(d) of Section 19.5 or take other specified actions as may be
appropriate  to  remedy  the delinquency and to assure future
payments.
    (c)  In the event  that  the  local  government  unit  or
privately  owned  community  water  supply fails to timely or
adequately respond to a notice of delinquency,  or  fails  to
meet its obligations made pursuant to subsections (a) and (b)
of  this  Section,  the Agency shall pursue the collection of
the amounts past due, the outstanding loan  balance  and  the
costs thereby incurred, either pursuant to the Illinois State
Collection  Act  of  1986 or by any other reasonable means as
may be provided by law, including  the  taking  of  title  by
foreclosure  or  otherwise  to  any project or other property
pledged, mortgaged, encumbered,  or  otherwise  available  as
security or collateral.
(Source: P.A. 90-121, eff. 7-17-97.)

    (415 ILCS 5/19.8) (from Ch. 111 1/2, par. 1019.8)
    Sec.   19.8.    Advisory  committees;  reports.  (a)  The
Director of the Agency shall appoint committees to advise the
Agency concerning the financial structure  of  the  Programs.
The   committees   shall   consist  of  representatives  from
appropriate  State   agencies,   the   financial   community,
engineering  societies  and  other  interested  parties.  The
committees shall  meet  periodically  and  members  shall  be
reimbursed for their ordinary and necessary expenses incurred
in the performance of their committee duties.
    (b)  The  Agency  shall report to the General Assembly by
June 30, 1998 regarding the feasibility of providing drinking
water loans to not-for-profit community water  supplies  that
serve  units of local government and to investor-owned public
utilities.  The report shall include a detailed discussion of
all  relevant  factors  and  shall include participation from
representatives of the affected entities.
(Source: P.A. 90-121, eff. 7-17-97.)

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

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