State of Illinois
2023 and 2024


Introduced 2/6/2024, by Rep. Lawrence "Larry" Walsh, Jr.


415 ILCS 5/19.4  from Ch. 111 1/2, par. 1019.4

    Amends the Environmental Protection Act. Requires rules adopted by the Illinois Environmental Protection Agency for purposes of administering the Water Revolving Fund to encourage regionalization and proactive compliance. Effective immediately.

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HB4808LRB103 36987 BDA 67102 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 19.4 as follows:
6    (415 ILCS 5/19.4)  (from Ch. 111 1/2, par. 1019.4)
7    Sec. 19.4. Regulations; priorities.
8    (a) The Agency shall have the authority to promulgate
9regulations for the administration of this Title, including,
10but not limited to, rules setting forth procedures and
11criteria concerning loan applications and the issuance of
12loans. For loans to units of local government, the regulations
13shall include, but need not be limited to, the following
15        (1) loan application requirements;
16        (2) determination of credit worthiness of the loan
17    applicant;
18        (3) special loan terms, as necessary, for securing the
19    repayment of the loan;
20        (4) assurance of payment;
21        (5) interest rates;
22        (6) loan support rates;
23        (7) impact on user charges;



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1        (8) eligibility of proposed construction;
2        (9) priority of needs;
3        (10) special loan terms for disadvantaged communities;
4        (11) maximum limits on annual distributions of funds
5    to applicants or groups of applicants;
6        (12) penalties for noncompliance with loan
7    requirements and conditions, including stop-work orders,
8    termination, and recovery of loan funds; and
9        (13) indemnification of the State of Illinois and the
10    Agency by the loan recipient.
11    (b) The Agency shall have the authority to promulgate
12regulations to set forth procedures and criteria concerning
13loan applications for loan recipients other than units of
14local government. In addition to all of the elements required
15for units of local government under subsection (a), the
16regulations shall include, but need not be limited to, the
17following elements:
18        (1) types of security required for the loan;
19        (2) types of collateral, as necessary, that can be
20    pledged for the loan; and
21        (3) staged access to fund privately owned community
22    water supplies.
23    (c) Rules adopted under this Title shall also include, but
24shall not be limited to, criteria for prioritizing the
25issuance of loans under this Title according to applicant
26need. Priority in making loans from the Public Water Supply



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1Loan Program must first be given to local government units and
2privately owned community water supplies that need to make
3capital improvements to protect human health and to achieve
4compliance with the State and federal primary drinking water
5standards adopted pursuant to this Act and the federal Safe
6Drinking Water Act, as now and hereafter amended. Rules for
7prioritizing loans from the Water Pollution Control Loan
8Program may include, but shall not be limited to, criteria
9designed to encourage green infrastructure, water efficiency,
10environmentally innovative projects, and nutrient pollution
12    (d) The Agency shall have the authority to promulgate
13regulations to set forth procedures and criteria concerning
14loan applications for funds provided under the American
15Recovery and Reinvestment Act of 2009. In addition, due to
16time constraints in the American Recovery and Reinvestment Act
17of 2009, the Agency shall adopt emergency rules as necessary
18to allow the timely administration of funds provided under the
19American Recovery and Reinvestment Act of 2009. Emergency
20rules adopted under this subsection (d) shall be adopted in
21accordance with Section 5-45 of the Illinois Administrative
22Procedure Act.
23    (e) The Agency may adopt rules to create a linked deposit
24loan program through which loans made pursuant to paragraph
25(3.5) of subsection (b) of Section 19.3 may be made through
26private lenders. Rules adopted under this subsection (e) shall



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1include, but shall not be limited to, provisions requiring
2private lenders, prior to disbursing loan proceeds through the
3linked deposit loan program, to verify that the loan
4recipients have been approved by the Agency for financing
5under paragraph (3.5) of subsection (b) of Section 19.3.
6    (f) Rules adopted under this Section for the
7administration of this Title shall encourage regionalization
8and shall encourage proactive compliance.
9(Source: P.A. 98-782, eff. 7-23-14.)
10    Section 99. Effective date. This Act takes effect upon
11becoming law.