101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2522

 

Introduced 1/28/2020, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
415 ILCS 5/19.3  from Ch. 111 1/2, par. 1019.3

    Amends the Environmental Protection Act. Provides that a wastewater treatment facility located in the Village of Lisbon in Kendall County is allowed to apply for the Water Pollution Control Loan Program for the purposes of refinancing existing debt. Effective immediately.


LRB101 14773 LNS 63732 b

 

 

A BILL FOR

 

SB2522LRB101 14773 LNS 63732 b

1    AN ACT concerning safety.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Environmental Protection Act is amended by
5changing Section 19.3 as follows:
 
6    (415 ILCS 5/19.3)  (from Ch. 111 1/2, par. 1019.3)
7    (Text of Section before amendment by P.A. 101-143)
8    Sec. 19.3. Water Revolving Fund.
9    (a) There is hereby created within the State Treasury a
10Water Revolving Fund, consisting of 3 interest-bearing special
11programs to be known as the Water Pollution Control Loan
12Program, the Public Water Supply Loan Program, and the Loan
13Support Program, which shall be used and administered by the
14Agency.
15    (b) The Water Pollution Control Loan Program shall be used
16and administered by the Agency to provide assistance for the
17following purposes:
18        (1) to accept and retain funds from grant awards,
19    appropriations, transfers, and payments of interest and
20    principal;
21        (2) to make direct loans at or below market interest
22    rates and to provide additional subsidization, including,
23    but not limited to, forgiveness of principal, negative

 

 

SB2522- 2 -LRB101 14773 LNS 63732 b

1    interest rates, and grants, to any eligible local
2    government unit to finance the construction of treatments
3    works, including storm water treatment systems that are
4    treatment works, and projects that fulfill federal State
5    Revolving Fund grant requirements for a green project
6    reserve;
7        (2.5) with respect to funds provided under the American
8    Recovery and Reinvestment Act of 2009:
9            (A) to make direct loans at or below market
10        interest rates to any eligible local government unit
11        and to provide additional subsidization to any
12        eligible local government unit, including, but not
13        limited to, forgiveness of principal, negative
14        interest rates, and grants;
15            (B) to make direct loans at or below market
16        interest rates to any eligible local government unit to
17        buy or refinance debt obligations for treatment works
18        incurred on or after October 1, 2008; and
19            (C) to provide additional subsidization,
20        including, but not limited to, forgiveness of
21        principal, negative interest rates, and grants for
22        treatment works incurred on or after October 1, 2008;
23        (3) to make direct loans at or below market interest
24    rates and to provide additional subsidization, including,
25    but not limited to, forgiveness of principal, negative
26    interest rates, and grants, to any eligible local

 

 

SB2522- 3 -LRB101 14773 LNS 63732 b

1    government unit to buy or refinance debt obligations for
2    costs incurred after March 7, 1985, for the construction of
3    treatment works, including storm water treatment systems
4    that are treatment works, and projects that fulfill federal
5    State Revolving Fund grant requirements for a green project
6    reserve;
7        (3.5) to make loans, including, but not limited to,
8    loans through a linked deposit program, at or below market
9    interest rates for the implementation of a management
10    program established under Section 319 of the Federal Water
11    Pollution Control Act, as amended;
12        (4) to guarantee or purchase insurance for local
13    obligations where such action would improve credit market
14    access or reduce interest rates;
15        (5) as a source of revenue or security for the payment
16    of principal and interest on revenue or general obligation
17    bonds issued by the State or any political subdivision or
18    instrumentality thereof, if the proceeds of such bonds will
19    be deposited in the Fund;
20        (6) to finance the reasonable costs incurred by the
21    Agency in the administration of the Fund;
22        (7) to transfer funds to the Public Water Supply Loan
23    Program; and
24        (8) notwithstanding any other provision of this
25    subsection (b), to provide, in accordance with rules
26    adopted under this Title, any other financial assistance

 

 

SB2522- 4 -LRB101 14773 LNS 63732 b

1    that may be provided under Section 603 of the Federal Water
2    Pollution Control Act for any other projects or activities
3    eligible for assistance under that Section or federal rules
4    adopted to implement that Section.
5    (b-5) The wastewater treatment facility located in the
6Village of Lisbon in Kendall County, specifically located at
7200 East Joliet Street, is allowed to apply for the Water
8Pollution Control Loan Program for the purposes of refinancing
9existing debt.
10    (c) The Loan Support Program shall be used and administered
11by the Agency for the following purposes:
12        (1) to accept and retain funds from grant awards and
13    appropriations;
14        (2) to finance the reasonable costs incurred by the
15    Agency in the administration of the Fund, including
16    activities under Title III of this Act, including the
17    administration of the State construction grant program;
18        (3) to transfer funds to the Water Pollution Control
19    Loan Program and the Public Water Supply Loan Program;
20        (4) to accept and retain a portion of the loan
21    repayments;
22        (5) to finance the development of the low interest loan
23    programs for water pollution control and public water
24    supply projects;
25        (6) to finance the reasonable costs incurred by the
26    Agency to provide technical assistance for public water

 

 

SB2522- 5 -LRB101 14773 LNS 63732 b

1    supplies; and
2        (7) to finance the reasonable costs incurred by the
3    Agency for public water system supervision programs, to
4    administer or provide for technical assistance through
5    source water protection programs, to develop and implement
6    a capacity development strategy, to delineate and assess
7    source water protection areas, and for an operator
8    certification program in accordance with Section 1452 of
9    the federal Safe Drinking Water Act.
10    (d) The Public Water Supply Loan Program shall be used and
11administered by the Agency to provide assistance to local
12government units and privately owned community water supplies
13for public water supplies for the following public purposes:
14        (1) to accept and retain funds from grant awards,
15    appropriations, transfers, and payments of interest and
16    principal;
17        (2) to make direct loans at or below market interest
18    rates and to provide additional subsidization, including,
19    but not limited to, forgiveness of principal, negative
20    interest rates, and grants, to any eligible local
21    government unit or to any eligible privately owned
22    community water supply to finance the construction of water
23    supplies and projects that fulfill federal State Revolving
24    Fund grant requirements for a green project reserve;
25        (2.5) with respect to funds provided under the American
26    Recovery and Reinvestment Act of 2009:

 

 

SB2522- 6 -LRB101 14773 LNS 63732 b

1            (A) to make direct loans at or below market
2        interest rates to any eligible local government unit or
3        to any eligible privately owned community water
4        supply, and to provide additional subsidization to any
5        eligible local government unit or to any eligible
6        privately owned community water supply, including, but
7        not limited to, forgiveness of principal, negative
8        interest rates, and grants;
9            (B) to buy or refinance the debt obligation of a
10        local government unit for costs incurred on or after
11        October 1, 2008; and
12            (C) to provide additional subsidization,
13        including, but not limited to, forgiveness of
14        principal, negative interest rates, and grants for a
15        local government unit for costs incurred on or after
16        October 1, 2008;
17        (3) to make direct loans at or below market interest
18    rates and to provide additional subsidization, including,
19    but not limited to, forgiveness of principal, negative
20    interest rates, and grants, to any eligible local
21    government unit or to any eligible privately owned
22    community water supply to buy or refinance debt obligations
23    for costs incurred on or after July 17, 1997, for the
24    construction of water supplies and projects that fulfill
25    federal State Revolving Fund requirements for a green
26    project reserve;

 

 

SB2522- 7 -LRB101 14773 LNS 63732 b

1        (4) to guarantee local obligations where such action
2    would improve credit market access or reduce interest
3    rates;
4        (5) as a source of revenue or security for the payment
5    of principal and interest on revenue or general obligation
6    bonds issued by the State or any political subdivision or
7    instrumentality thereof, if the proceeds of such bonds will
8    be deposited into the Fund;
9        (6) to transfer funds to the Water Pollution Control
10    Loan Program; and
11        (7) notwithstanding any other provision of this
12    subsection (d), to provide to local government units and
13    privately owned community water supplies any other
14    financial assistance that may be provided under Section
15    1452 of the federal Safe Drinking Water Act for any
16    expenditures eligible for assistance under that Section or
17    federal rules adopted to implement that Section.
18    (e) The Agency is designated as the administering agency of
19the Fund. The Agency shall submit to the Regional Administrator
20of the United States Environmental Protection Agency an
21intended use plan which outlines the proposed use of funds
22available to the State. The Agency shall take all actions
23necessary to secure to the State the benefits of the federal
24Water Pollution Control Act and the federal Safe Drinking Water
25Act, as now or hereafter amended.
26    (f) The Agency shall have the power to enter into

 

 

SB2522- 8 -LRB101 14773 LNS 63732 b

1intergovernmental agreements with the federal government or
2the State, or any instrumentality thereof, for purposes of
3capitalizing the Water Revolving Fund. Moneys on deposit in the
4Water Revolving Fund may be used for the creation of reserve
5funds or pledged funds that secure the obligations of repayment
6of loans made pursuant to this Section. For the purpose of
7obtaining capital for deposit into the Water Revolving Fund,
8the Agency may also enter into agreements with financial
9institutions and other persons for the purpose of selling loans
10and developing a secondary market for such loans. The Agency
11shall have the power to create and establish such reserve funds
12and accounts as may be necessary or desirable to accomplish its
13purposes under this subsection and to allocate its available
14moneys into such funds and accounts. Investment earnings on
15moneys held in the Water Revolving Fund, including any reserve
16fund or pledged fund, shall be deposited into the Water
17Revolving Fund.
18(Source: P.A. 98-782, eff. 7-23-14; 99-187, eff. 7-29-15;
1999-922, eff. 1-17-17.)
 
20    (Text of Section after amendment by P.A. 101-143)
21    Sec. 19.3. Water Revolving Fund.
22    (a) There is hereby created within the State Treasury a
23Water Revolving Fund, consisting of 3 interest-bearing special
24programs to be known as the Water Pollution Control Loan
25Program, the Public Water Supply Loan Program, and the Loan

 

 

SB2522- 9 -LRB101 14773 LNS 63732 b

1Support Program, which shall be used and administered by the
2Agency.
3    (b) The Water Pollution Control Loan Program shall be used
4and administered by the Agency to provide assistance for the
5following purposes:
6        (1) to accept and retain funds from grant awards,
7    appropriations, transfers, and payments of interest and
8    principal;
9        (2) to make direct loans at or below market interest
10    rates and to provide additional subsidization, including,
11    but not limited to, forgiveness of principal, negative
12    interest rates, and grants, to any eligible local
13    government unit to finance the construction of treatments
14    works, including storm water treatment systems that are
15    treatment works, and projects that fulfill federal State
16    Revolving Fund grant requirements for a green project
17    reserve;
18        (2.5) with respect to funds provided under the American
19    Recovery and Reinvestment Act of 2009:
20            (A) to make direct loans at or below market
21        interest rates to any eligible local government unit
22        and to provide additional subsidization to any
23        eligible local government unit, including, but not
24        limited to, forgiveness of principal, negative
25        interest rates, and grants;
26            (B) to make direct loans at or below market

 

 

SB2522- 10 -LRB101 14773 LNS 63732 b

1        interest rates to any eligible local government unit to
2        buy or refinance debt obligations for treatment works
3        incurred on or after October 1, 2008; and
4            (C) to provide additional subsidization,
5        including, but not limited to, forgiveness of
6        principal, negative interest rates, and grants for
7        treatment works incurred on or after October 1, 2008;
8        (3) to make direct loans at or below market interest
9    rates and to provide additional subsidization, including,
10    but not limited to, forgiveness of principal, negative
11    interest rates, and grants, to any eligible local
12    government unit to buy or refinance debt obligations for
13    costs incurred after March 7, 1985, for the construction of
14    treatment works, including storm water treatment systems
15    that are treatment works, and projects that fulfill federal
16    State Revolving Fund grant requirements for a green project
17    reserve;
18        (3.5) to make loans, including, but not limited to,
19    loans through a linked deposit program, at or below market
20    interest rates for the implementation of a management
21    program established under Section 319 of the Federal Water
22    Pollution Control Act, as amended;
23        (4) to guarantee or purchase insurance for local
24    obligations where such action would improve credit market
25    access or reduce interest rates;
26        (5) as a source of revenue or security for the payment

 

 

SB2522- 11 -LRB101 14773 LNS 63732 b

1    of principal and interest on revenue or general obligation
2    bonds issued by the State or any political subdivision or
3    instrumentality thereof, if the proceeds of such bonds will
4    be deposited in the Fund;
5        (6) to finance the reasonable costs incurred by the
6    Agency in the administration of the Fund;
7        (7) to transfer funds to the Public Water Supply Loan
8    Program; and
9        (8) notwithstanding any other provision of this
10    subsection (b), to provide, in accordance with rules
11    adopted under this Title, any other financial assistance
12    that may be provided under Section 603 of the Federal Water
13    Pollution Control Act for any other projects or activities
14    eligible for assistance under that Section or federal rules
15    adopted to implement that Section.
16    (b-5) The wastewater treatment facility located in the
17Village of Lisbon in Kendall County, specifically located at
18200 East Joliet Street, is allowed to apply for the Water
19Pollution Control Loan Program for the purposes of refinancing.
20    (c) The Loan Support Program shall be used and administered
21by the Agency for the following purposes:
22        (1) to accept and retain funds from grant awards and
23    appropriations;
24        (2) to finance the reasonable costs incurred by the
25    Agency in the administration of the Fund, including
26    activities under Title III of this Act, including the

 

 

SB2522- 12 -LRB101 14773 LNS 63732 b

1    administration of the State construction grant program;
2        (3) to transfer funds to the Water Pollution Control
3    Loan Program and the Public Water Supply Loan Program;
4        (4) to accept and retain a portion of the loan
5    repayments;
6        (5) to finance the development of the low interest loan
7    programs for water pollution control and public water
8    supply projects;
9        (6) to finance the reasonable costs incurred by the
10    Agency to provide technical assistance for public water
11    supplies; and
12        (7) to finance the reasonable costs incurred by the
13    Agency for public water system supervision programs, to
14    administer or provide for technical assistance through
15    source water protection programs, to develop and implement
16    a capacity development strategy, to delineate and assess
17    source water protection areas, and for an operator
18    certification program in accordance with Section 1452 of
19    the federal Safe Drinking Water Act.
20    (d) The Public Water Supply Loan Program shall be used and
21administered by the Agency to provide assistance to local
22government units and privately owned community water supplies
23for public water supplies for the following public purposes:
24        (1) to accept and retain funds from grant awards,
25    appropriations, transfers, and payments of interest and
26    principal;

 

 

SB2522- 13 -LRB101 14773 LNS 63732 b

1        (2) to make direct loans at or below market interest
2    rates and to provide additional subsidization, including,
3    but not limited to, forgiveness of principal, negative
4    interest rates, and grants, to any eligible local
5    government unit or to any eligible privately owned
6    community water supply to finance the construction of water
7    supplies and projects that fulfill federal State Revolving
8    Fund grant requirements for a green project reserve;
9        (2.5) with respect to funds provided under the American
10    Recovery and Reinvestment Act of 2009:
11            (A) to make direct loans at or below market
12        interest rates to any eligible local government unit or
13        to any eligible privately owned community water
14        supply, and to provide additional subsidization to any
15        eligible local government unit or to any eligible
16        privately owned community water supply, including, but
17        not limited to, forgiveness of principal, negative
18        interest rates, and grants;
19            (B) to buy or refinance the debt obligation of a
20        local government unit for costs incurred on or after
21        October 1, 2008; and
22            (C) to provide additional subsidization,
23        including, but not limited to, forgiveness of
24        principal, negative interest rates, and grants for a
25        local government unit for costs incurred on or after
26        October 1, 2008;

 

 

SB2522- 14 -LRB101 14773 LNS 63732 b

1        (3) to make direct loans at or below market interest
2    rates and to provide additional subsidization, including,
3    but not limited to, forgiveness of principal, negative
4    interest rates, and grants, to any eligible local
5    government unit or to any eligible privately owned
6    community water supply to buy or refinance debt obligations
7    for costs incurred on or after July 17, 1997, for the
8    construction of water supplies and projects that fulfill
9    federal State Revolving Fund requirements for a green
10    project reserve;
11        (4) to guarantee local obligations where such action
12    would improve credit market access or reduce interest
13    rates;
14        (5) as a source of revenue or security for the payment
15    of principal and interest on revenue or general obligation
16    bonds issued by the State or any political subdivision or
17    instrumentality thereof, if the proceeds of such bonds will
18    be deposited into the Fund;
19        (6) to transfer funds to the Water Pollution Control
20    Loan Program; and
21        (7) notwithstanding any other provision of this
22    subsection (d), to provide to local government units and
23    privately owned community water supplies any other
24    financial assistance that may be provided under Section
25    1452 of the federal Safe Drinking Water Act for any
26    expenditures eligible for assistance under that Section or

 

 

SB2522- 15 -LRB101 14773 LNS 63732 b

1    federal rules adopted to implement that Section.
2    (e) The Agency is designated as the administering agency of
3the Fund. The Agency shall submit to the Regional Administrator
4of the United States Environmental Protection Agency an
5intended use plan which outlines the proposed use of funds
6available to the State. The Agency shall take all actions
7necessary to secure to the State the benefits of the federal
8Water Pollution Control Act and the federal Safe Drinking Water
9Act, as now or hereafter amended.
10    (f) The Agency shall have the power to enter into
11intergovernmental agreements with the federal government or
12the State, or any instrumentality thereof, for purposes of
13capitalizing the Water Revolving Fund. Moneys on deposit in the
14Water Revolving Fund may be used for the creation of reserve
15funds or pledged funds that secure the obligations of repayment
16of loans made pursuant to this Section. For the purpose of
17obtaining capital for deposit into the Water Revolving Fund,
18the Agency may also enter into agreements with financial
19institutions and other persons for the purpose of selling loans
20and developing a secondary market for such loans. The Agency
21shall have the power to create and establish such reserve funds
22and accounts as may be necessary or desirable to accomplish its
23purposes under this subsection and to allocate its available
24moneys into such funds and accounts. Investment earnings on
25moneys held in the Water Revolving Fund, including any reserve
26fund or pledged fund, shall be deposited into the Water

 

 

SB2522- 16 -LRB101 14773 LNS 63732 b

1Revolving Fund.
2    (g) Beginning on the effective date of this amendatory Act
3of the 101st General Assembly, and running for a period of 5
4years after that date, the Agency shall prioritize within its
5annual intended use plan the usage of a portion of the Agency's
6capitalization grant for federally authorized set-aside
7activities. The prioritization is for the purpose of supporting
8disadvantaged communities and utilities throughout Illinois in
9building their capacity for sustainable and equitable water
10management. This may include, but is not limited to, assistance
11for water rate studies, preliminary engineering or other
12facility planning, training activities, asset management
13plans, assistance with identification and replacement of lead
14service lines, and studies of efficiency measures through
15utility regionalization or other collaborative
16intergovernmental approaches.
17(Source: P.A. 101-143, eff. 1-1-20.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.