HB4382 EngrossedLRB098 19526 MGM 54702 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 Sections 19.1, 19.2, 19.3, and 19.4 as follows:
 
6    (415 ILCS 5/19.1)  (from Ch. 111 1/2, par. 1019.1)
7    Sec. 19.1. Legislative findings. The General Assembly
8finds:
9    (a) that local government units require assistance in
10financing the construction of water wastewater treatment works
11and projects in order to comply with the State's program of
12environmental protection and federally mandated requirements;
13    (b) that the federal Water Quality Act of 1987 provides an
14important source of grant awards to the State for providing
15assistance to local government units through the Water
16Pollution Control Loan Program;
17    (c) that local government units and privately owned
18community water supplies require assistance in financing the
19construction of their public water supplies to comply with
20State and federal drinking water laws and regulations;
21    (d) that the federal Safe Drinking Water Act ("SDWA"), P.L.
2293-523, as now or hereafter amended, provides an important
23source of capitalization grant awards to the State to provide

 

 

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1assistance to local government units and privately owned
2community water supplies through the Public Water Supply Loan
3Program;
4    (e) that violations of State and federal drinking water
5standards threaten the public interest, safety, and welfare,
6which demands that the Illinois Environmental Protection
7Agency expeditiously adopt emergency rules to administer the
8Public Water Supply Loan Program;
9    (f) that the General Assembly agrees with the conclusions
10and recommendations of the "Report to the Illinois General
11Assembly on the Issue of Expanding Public Water Supply Loan
12Eligibility to Privately Owned Community Water Supplies",
13dated August 1998, including the stated access to the Public
14Water Supply Loan Program by the privately owned public water
15supplies so that the long term integrity and viability of the
16corpus of the Fund will be assured; and
17    (g) that the American Recovery and Reinvestment Act of 2009
18provides a source of capitalization grant awards to the State
19to provide loans and additional subsidization, including, but
20not limited to, forgiveness of principal, negative interest
21loans, and grants, to local government units through the Water
22Pollution Control Loan Program and to local government units
23and privately owned community water supplies through the Public
24Water Supply Loan Program; .
25    (h) that expanding eligibility to include publicly owned
26municipal storm water projects eligible for financing as

 

 

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1treatment works, as defined under Section 212 of the Federal
2Water Pollution Control Act, will provide the Agency with the
3statutory authority to use moneys in the Water Pollution
4Control Loan Program to provide financial assistance for
5eligible projects, including those that encourage green
6infrastructure, that manage and treat storm water, and that
7maintain and restore natural hydrology by infiltrating,
8evapotranspiring, and capturing and using storm water;
9    (i) that in planning projects for which financing will be
10sought from the Water Pollution Control Loan Program,
11municipalities may benefit from efforts to consider a project's
12lifetime costs; the availability of long-term funding for the
13construction, operation, maintenance, and replacement of the
14project; the resilience of the project to the effects of
15climate change; the project's ability to increase water
16efficiency; the capacity of the project to restore natural
17hydrology or to preserve or restore landscape features; the
18cost-effectiveness of the project; and the overall
19environmental innovativeness of the project; and
20    (j) that projects implementing a management program
21established under Section 319 of the Federal Water Pollution
22Control Act may benefit from the creation of a linked deposit
23program that would make loans available at or below market
24interest rates through private lenders.
25(Source: P.A. 96-8, eff. 4-28-09.)
 

 

 

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1    (415 ILCS 5/19.2)  (from Ch. 111 1/2, par. 1019.2)
2    Sec. 19.2. As used in this Title, unless the context
3clearly requires otherwise:
4    (a) "Agency" means the Illinois Environmental Protection
5Agency.
6    (b) "Fund" means the Water Revolving Fund created pursuant
7to this Title, consisting of the Water Pollution Control Loan
8Program, the Public Water Supply Loan Program, and the Loan
9Support Program.
10    (c) "Loan" means a loan made from the Water Pollution
11Control Loan Program or the Public Water Supply Loan Program to
12an eligible applicant as a result of a contractual agreement
13between the Agency and such applicant.
14    (d) "Construction" means any one or more of the following
15which is undertaken for a public purpose: preliminary planning
16to determine the feasibility of the treatment works or public
17water supply, engineering, architectural, legal, fiscal or
18economic investigations or studies, surveys, designs, plans,
19working drawings, specifications, procedures or other
20necessary actions, erection, building, acquisition,
21alteration, remodeling, improvement or extension of treatment
22works or public water supplies, or the inspection or
23supervision of any of the foregoing items. "Construction" also
24includes implementation of source water quality protection
25measures and establishment and implementation of wellhead
26protection programs in accordance with Section 1452(k)(1) of

 

 

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1the federal Safe Drinking Water Act.
2    (e) "Intended use plan" means a plan which includes a
3description of the short and long term goals and objectives of
4the Water Pollution Control Loan Program and the Public Water
5Supply Loan Program, project categories, discharge
6requirements, terms of financial assistance and the loan
7applicants to be served.
8    (f) "Treatment works" means treatment works, as defined in
9Section 212 of the Federal Water Pollution Control Act,
10including, but not limited to, the following: any devices and
11systems owned by a local government unit and used in the
12storage, treatment, recycling, and reclamation of sewerage or
13industrial wastes of a liquid nature, including intercepting
14sewers, outfall sewers, sewage collection systems, pumping
15power and other equipment, and appurtenances; extensions,
16improvements, remodeling, additions, and alterations thereof;
17elements essential to provide a reliable recycled supply, such
18as standby treatment units and clear well facilities; and any
19works, including site acquisition of the land that will be an
20integral part of the treatment process for wastewater
21facilities; and any other method or system for preventing,
22abating, reducing, storing, treating, separating, or disposing
23of municipal waste, including storm water runoff, or industrial
24waste, including waste in combined storm water and sanitary
25sewer systems as those terms are defined in the Federal Water
26Pollution Control Act.

 

 

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1    (g) "Local government unit" means a county, municipality,
2township, municipal or county sewerage or utility authority,
3sanitary district, public water district, improvement
4authority or any other political subdivision whose primary
5purpose is to construct, operate and maintain wastewater
6treatment facilities, including storm water treatment systems,
7or public water supply facilities or both.
8    (h) "Privately owned community water supply" means:
9        (1) an investor-owned water utility, if under Illinois
10    Commerce Commission regulation and operating as a separate
11    and distinct water utility;
12        (2) a not-for-profit water corporation, if operating
13    specifically as a water utility; and
14        (3) a mutually owned or cooperatively owned community
15    water system, if operating as a separate water utility.
16(Source: P.A. 91-36, eff. 6-15-99; 91-52, eff. 6-30-99; 91-501,
17eff. 8-13-99; 92-16, eff. 6-28-01.)
 
18    (415 ILCS 5/19.3)  (from Ch. 111 1/2, par. 1019.3)
19    Sec. 19.3. Water Revolving Fund.
20    (a) There is hereby created within the State Treasury a
21Water Revolving Fund, consisting of 3 interest-bearing special
22programs to be known as the Water Pollution Control Loan
23Program, the Public Water Supply Loan Program, and the Loan
24Support Program, which shall be used and administered by the
25Agency.

 

 

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

 

 

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

 

 

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1    instrumentality thereof, if the proceeds of such bonds will
2    be deposited in the Fund;
3        (6) to finance the reasonable costs incurred by the
4    Agency in the administration of the Fund; and
5        (7) to transfer funds to the Public Water Supply Loan
6    Program; and .
7        (8) notwithstanding any other provision of this
8    subsection (b), to provide, in accordance with rules
9    adopted under this Title, any financial assistance that may
10    be provided under Section 603 of the Federal Water
11    Pollution Control Act for any projects eligible for
12    assistance under subsections (c)(1) or (c)(2) of that
13    Section or federal rules adopted under those subsections.
14    (c) The Loan Support Program shall be used and administered
15by the Agency for the following purposes:
16        (1) to accept and retain funds from grant awards and
17    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 Control
23    Loan Program and the Public Water Supply Loan Program;
24        (4) to accept and retain a portion of the loan
25    repayments;
26        (5) to finance the development of the low interest loan

 

 

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1    programs for water pollution control and public water
2    supply projects;
3        (6) to finance the reasonable costs incurred by the
4    Agency to provide technical assistance for public water
5    supplies; and
6        (7) to finance the reasonable costs incurred by the
7    Agency for public water system supervision programs, to
8    administer or provide for technical assistance through
9    source water protection programs, to develop and implement
10    a capacity development strategy, to delineate and assess
11    source water protection areas, and for an operator
12    certification program in accordance with Section 1452 of
13    the federal Safe Drinking Water Act.
14    (d) The Public Water Supply Loan Program shall be used and
15administered by the Agency to provide assistance to local
16government units and privately owned community water supplies
17for public water supplies for the following public 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
24    interest rates, and grants, to any eligible local
25    government unit or to any eligible privately owned
26    community water supply to finance the construction of water

 

 

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

 

 

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1    for costs incurred on or after July 17, 1997, for the
2    construction of water supplies and projects that fulfill
3    federal State Revolving Fund requirements for a green
4    project reserve;
5        (4) to guarantee local obligations where such action
6    would improve credit market access or reduce interest
7    rates;
8        (5) as a source of revenue or security for the payment
9    of principal and interest on revenue or general obligation
10    bonds issued by the State or any political subdivision or
11    instrumentality thereof, if the proceeds of such bonds will
12    be deposited into the Fund; and
13        (6) to transfer funds to the Water Pollution Control
14    Loan Program.
15    (e) The Agency is designated as the administering agency of
16the Fund. The Agency shall submit to the Regional Administrator
17of the United States Environmental Protection Agency an
18intended use plan which outlines the proposed use of funds
19available to the State. The Agency shall take all actions
20necessary to secure to the State the benefits of the federal
21Water Pollution Control Act and the federal Safe Drinking Water
22Act, as now or hereafter amended.
23    (f) The Agency shall have the power to enter into
24intergovernmental agreements with the federal government or
25the State, or any instrumentality thereof, for purposes of
26capitalizing the Water Revolving Fund. Moneys on deposit in the

 

 

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1Water Revolving Fund may be used for the creation of reserve
2funds or pledged funds that secure the obligations of repayment
3of loans made pursuant to this Section. For the purpose of
4obtaining capital for deposit into the Water Revolving Fund,
5the Agency may also enter into agreements with financial
6institutions and other persons for the purpose of selling loans
7and developing a secondary market for such loans. The Agency
8shall have the power to create and establish such reserve funds
9and accounts as may be necessary or desirable to accomplish its
10purposes under this subsection and to allocate its available
11moneys into such funds and accounts. Investment earnings on
12moneys held in the Water Revolving Fund, including any reserve
13fund or pledged fund, shall be deposited into the Water
14Revolving Fund.
15(Source: P.A. 96-8, eff. 4-28-09; 96-917, eff. 6-9-10.)
 
16    (415 ILCS 5/19.4)  (from Ch. 111 1/2, par. 1019.4)
17    Sec. 19.4. Regulations; priorities.
18    (a) The Agency shall have the authority to promulgate
19regulations for the administration of this Title, including,
20but not limited to, rules setting to set forth procedures and
21criteria concerning loan applications and the issuance of
22loans. For loans to units of local government, the regulations
23shall include, but need not be limited to, the following
24elements:
25        (1) loan application requirements;

 

 

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1        (2) determination of credit worthiness of the loan
2    applicant;
3        (3) special loan terms, as necessary, for securing the
4    repayment of the loan;
5        (4) assurance of payment;
6        (5) interest rates;
7        (6) loan support rates;
8        (7) impact on user charges;
9        (8) eligibility of proposed construction;
10        (9) priority of needs;
11        (10) special loan terms for disadvantaged communities;
12        (11) maximum limits on annual distributions of funds to
13    applicants or groups of applicants;
14        (12) penalties for noncompliance with loan
15    requirements and conditions, including stop-work orders,
16    termination, and recovery of loan funds; and
17        (13) indemnification of the State of Illinois and the
18    Agency by the loan recipient.
19    (b) The Agency shall have the authority to promulgate
20regulations to set forth procedures and criteria concerning
21loan applications for loan recipients other than units of local
22government. In addition to all of the elements required for
23units of local government under subsection (a), the regulations
24shall include, but need not be limited to, the following
25elements:
26        (1) types of security required for the loan;

 

 

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1        (2) types of collateral, as necessary, that can be
2    pledged for the loan; and
3        (3) staged access to fund privately owned community
4    water supplies.
5    (c) Rules adopted under this Title shall also include, but
6shall not be limited to, criteria for prioritizing the issuance
7of loans under this Title according to applicant need. The
8Agency shall develop and maintain a priority list of loan
9applicants as categorized by need. Priority in making loans
10from the Public Water Supply Loan Program must first be given
11to local government units and privately owned community water
12supplies that need to make capital improvements to protect
13human health and to achieve compliance with the State and
14federal primary drinking water standards adopted pursuant to
15this Act and the federal Safe Drinking Water Act, as now and
16hereafter amended. Rules for prioritizing loans from the Water
17Pollution Control Loan Program may include, but shall not be
18limited to, criteria designed to encourage green
19infrastructure, water efficiency, environmentally innovative
20projects, and nutrient pollution removal.
21    (d) The Agency shall have the authority to promulgate
22regulations to set forth procedures and criteria concerning
23loan applications for funds provided under the American
24Recovery and Reinvestment Act of 2009. In addition, due to time
25constraints in the American Recovery and Reinvestment Act of
262009, the Agency shall adopt emergency rules as necessary to

 

 

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1allow the timely administration of funds provided under the
2American Recovery and Reinvestment Act of 2009. Emergency rules
3adopted under this subsection (d) shall be adopted in
4accordance with Section 5-45 of the Illinois Administrative
5Procedure Act.
6    (e) The Agency may adopt rules to create a linked deposit
7loan program through which loans made pursuant to paragraph
8(3.5) of subsection (b) of Section 19.3 may be made through
9private lenders. Rules adopted under this subsection (e) shall
10include, but shall not be limited to, provisions requiring
11private lenders, prior to disbursing loan proceeds through the
12linked deposit loan program, to verify that the loan recipients
13have been approved by the Agency for financing under paragraph
14(3.5) of subsection (b) of Section 19.3.
15(Source: P.A. 96-8, eff. 4-28-09.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.