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Full Text of SB0550  99th General Assembly

SB0550sam003 99TH GENERAL ASSEMBLY

Sen. Heather A. Steans

Filed: 5/29/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 550

2    AMENDMENT NO. ______. Amend Senate Bill 550 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Public Health Act is amended
5by adding Section 5.2 as follows:
 
6    (20 ILCS 2305/5.2 new)
7    Sec. 5.2. Identification of plumbing-related lead hazards
8in schools. To protect children and other members of the public
9from any threat to public health that might be posed by lead in
10drinking water at schools, the Department of Public Health
11shall, as soon as practicable after the effective date of this
12amendatory Act of the 99th General Assembly but no later than
13June 30, 2018, adopt rules that (i) establish a program to
14identify, in each school in the State, any lead service line or
15lead-bearing plumbing that is a lead hazard, as defined in
16Section 2 of the Lead Poisoning Prevention Act, and (ii)

 

 

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1require the mitigation of those lead hazards within a
2reasonable time after their identification.
 
3    Section 10. The Environmental Protection Act is amended by
4changing Sections 19.3 and 19.4 and by adding Section 17.11 as
5follows:
 
6    (415 ILCS 5/17.11 new)
7    Sec. 17.11. Lead in drinking water prevention.
8    (a) For the purposes of this Section:
9        "First-draw sample" means one liter of water volume
10    collected at a source of potable water and prior to the
11    sample there must be a minimum of 6 hours during which
12    there is no water used from the source of potable water or
13    any sources adjacent or close to that source.
14        "Non-source origination community water system" means
15    a community water system owned by a city, village, or
16    incorporated town that receives improved water from a
17    source origination community water system and distributes
18    that water outside the corporate limits of the city,
19    village, or incorporated town that owns the source
20    origination community water system.
21        "Potentially affected residence" means any residence
22    where water service is or may be temporarily interrupted or
23    shut off by the community water supply because the supply
24    is carrying out construction or repair work.

 

 

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1        "School" means any school district or public, private,
2    charter, or nonpublic day or residential educational
3    institution, constructed prior to 1987 that provides
4    education from pre-kindergarten through grade 5 and
5    receives water from a community water supply.
6        "Source of potable water" means the point at which
7    non-bottled water exits any tap, faucet, drinking
8    fountain, or similar point of use regularly ingested by
9    children or used for food preparation.
10        "Source origination community water system" means a
11    community water system owned by a city, village, or
12    incorporated town that operates a waterworks whereby a
13    source of water from a lake, river, or other source is
14    treated at the waterworks and furnished to a non-source
15    origination community water system that operates outside
16    the corporate limits of the city, village, or incorporated
17    town.
18    (b) Prior to December 31, 2019, schools shall collect and
19the owner or operator of a community water supply shall analyze
20for lead a first-draw sample from representative sources of
21potable water located at each school within the community water
22supply distribution system. Representative sources of potable
23water shall include at least one sample from each unique model
24of drinking fountain or fixture that provides potable water.
25The community water supply shall provide the school with
26technical assistance to determine the sampling locations that

 

 

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1are most representative of the sources of potable water at each
2school. The community water supply shall supply each school
3with the sampling instructions and equipment necessary to
4collect all required lead samples. Lead sampling results
5obtained shall not be used for purposes of determining
6compliance with the Board rules that implement the national
7primary drinking water regulations for lead and copper. The
8community water supply shall submit all lead sampling results
9to the school and the Department of Public Health within 7
10business days of receipt of the results. If any sample exceeds
11the lead action level of 15 parts per billion (15 micrograms
12per liter), the school shall promptly notify the parents or
13legal guardians of all enrolled students of the exceedance and
14its location within the school and direct them to the United
15States Environmental Protection Agency's website for
16information about lead in drinking water.
17    An investor-owned water utility shall be allowed to
18annually recover expenditures associated with this Section
19through its rates.
20    (c) Within 180 days after the effective date of this
21amendatory Act of the 99th General Assembly, the owner or
22operator of a community water supply shall develop and submit
23to the Department of Public Health a plan to compile a
24comprehensive inventory of all lead service lines within the
25community water supply distribution system including privately
26owned lead service lines. At a minimum, the plan shall include:

 

 

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1        (1) a procedure for determining whether any water
2    service lines exposed as a result of construction or
3    excavation by the community water supply or any other
4    public utility are made of lead; and
5        (2) a procedure by which the owner or operator of the
6    community water supply will update the information in its
7    lead service line inventory on at least an annual basis.
8    The owner or operator of a community water supply shall
9implement the lead service line inventory development plan in
10accordance with its terms.
11    (d) On or before April 15 of each year, the owner or
12operator of a community water supply shall submit to the
13Department of Public Health an inventory of all known lead
14service lines within its community water supply distribution
15system, including privately owned lead service lines current
16through at least the end of the previous calendar year. The
17lead service line inventory shall separately identify the lead
18service lines that were added to the inventory after the
19previous year's submission and shall include a summary that
20provides:
21        (1) the total number of service lines within the
22    community water supply distribution system;
23        (2) the percentage of service lines that are known to
24    contain lead;
25        (3) the percentage of service lines that are known to
26    be of a material other than lead; and

 

 

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1        (4) the percentage of service lines added to the
2    inventory after the previous submission of the annual lead
3    service line inventory.
4    (e) Beginning January 1, 2017, when conducting routine
5inspections of community water supplies as required under this
6Act, the Agency may conduct a separate audit to identify
7progress that the community water supply has made toward
8completing the material inventories required under this
9Section.
10    (f) The owner or operator of a community water supply shall
11promptly notify the owners and occupants of a residence where
12sampling results show lead levels in any individual tap sample
13exceed 15 parts per billion (15 micrograms per liter) and shall
14also provide public education materials comparable in content
15to the public education materials that the Board rules require
16to be delivered when a supplier exceeds the lead action level.
17    (g) The owner or operator of a community water supply
18shall, 14 days prior to beginning planned work to repair or
19replace any water mains or lead service lines, notify the
20owners and occupants of all potentially affected residences of
21the planned work. In cases where a community water supply must
22perform construction or repair work on an emergency basis or
23where such work is not scheduled at least 14 days prior to work
24taking place, the community water supply shall notify
25potentially affected residences as soon as reasonably
26possible. When work is to repair or replace a water meter, the

 

 

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1notification shall be provided at the time the work is
2initiated. The notification shall include:
3        (1) a warning that the work may result in sediment,
4    possibly containing lead, in the residence's water supply;
5    and
6        (2) information concerning best practices for
7    preventing the consumption of any lead in drinking water,
8    including a recommendation to flush water lines during and
9    after the completion of the repair or replacement work and
10    to clean faucet aerator screens.
11    (h) A source origination community water system's
12obligation to comply with this Section is limited
13geographically to any and all activity that occurs within the
14corporate limits of the city, village, or incorporated town
15that owns or operates the source origination community water
16system. Once a source origination community water system has
17furnished water to a non-source origination community water
18system, it is the sole responsibility of that system to comply
19with and implement the provisions of this Section. Nothing in
20this Section shall relieve a community water system of its
21obligations under the Public Water Supply Operations Act.
 
22    (415 ILCS 5/19.3)  (from Ch. 111 1/2, par. 1019.3)
23    Sec. 19.3. Water Revolving Fund.
24    (a) There is hereby created within the State Treasury a
25Water Revolving Fund, consisting of 3 interest-bearing special

 

 

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

 

 

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

 

 

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1    obligations where such action would improve credit market
2    access or reduce interest rates;
3        (5) as a source of revenue or security for the payment
4    of principal and interest on revenue or general obligation
5    bonds issued by the State or any political subdivision or
6    instrumentality thereof, if the proceeds of such bonds will
7    be deposited in the Fund;
8        (6) to finance the reasonable costs incurred by the
9    Agency in the administration of the Fund;
10        (7) to transfer funds to the Public Water Supply Loan
11    Program; and
12        (8) notwithstanding any other provision of this
13    subsection (b), to provide, in accordance with rules
14    adopted under this Title, any other financial assistance
15    that may be provided under Section 603 of the Federal Water
16    Pollution Control Act for any other projects or activities
17    eligible for assistance under that Section or federal rules
18    adopted to implement that Section.
19    (c) The Loan Support Program shall be used and administered
20by the Agency for the following purposes:
21        (1) to accept and retain funds from grant awards and
22    appropriations;
23        (2) to finance the reasonable costs incurred by the
24    Agency in the administration of the Fund, including
25    activities under Title III of this Act, including the
26    administration of the State construction grant program;

 

 

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

 

 

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

 

 

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1    rates and to provide additional subsidization, including,
2    but not limited to, forgiveness of principal, negative
3    interest rates, and grants, to any eligible local
4    government unit or to any eligible privately owned
5    community water supply to buy or refinance debt obligations
6    for costs incurred on or after July 17, 1997, for the
7    construction of water supplies and projects that fulfill
8    federal State Revolving Fund requirements for a green
9    project reserve;
10        (4) to guarantee local obligations where such action
11    would improve credit market access or reduce interest
12    rates;
13        (5) as a source of revenue or security for the payment
14    of principal and interest on revenue or general obligation
15    bonds issued by the State or any political subdivision or
16    instrumentality thereof, if the proceeds of such bonds will
17    be deposited into the Fund; and
18        (6) to transfer funds to the Water Pollution Control
19    Loan Program.
20    (e) The Agency is designated as the administering agency of
21the Fund. The Agency shall submit to the Regional Administrator
22of the United States Environmental Protection Agency an
23intended use plan which outlines the proposed use of funds
24available to the State. The Agency shall take all actions
25necessary to secure to the State the benefits of the federal
26Water Pollution Control Act and the federal Safe Drinking Water

 

 

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1Act, as now or hereafter amended.
2    (f) The Agency shall have the power to enter into
3intergovernmental agreements with the federal government or
4the State, or any instrumentality thereof, for purposes of
5capitalizing the Water Revolving Fund. Moneys on deposit in the
6Water Revolving Fund may be used for the creation of reserve
7funds or pledged funds that secure the obligations of repayment
8of loans made pursuant to this Section. For the purpose of
9obtaining capital for deposit into the Water Revolving Fund,
10the Agency may also enter into agreements with financial
11institutions and other persons for the purpose of selling loans
12and developing a secondary market for such loans. The Agency
13shall have the power to create and establish such reserve funds
14and accounts as may be necessary or desirable to accomplish its
15purposes under this subsection and to allocate its available
16moneys into such funds and accounts. Investment earnings on
17moneys held in the Water Revolving Fund, including any reserve
18fund or pledged fund, shall be deposited into the Water
19Revolving Fund.
20(Source: P.A. 98-782, eff. 7-23-14; 99-187, eff. 7-29-15.)
 
21    (415 ILCS 5/19.4)  (from Ch. 111 1/2, par. 1019.4)
22    Sec. 19.4. Regulations; priorities.
23    (a) The Agency shall have the authority to promulgate
24regulations for the administration of this Title, including,
25but not limited to, rules setting forth procedures and criteria

 

 

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

 

 

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1units of local government under subsection (a), the regulations
2shall include, but need not be limited to, the following
3elements:
4        (1) types of security required for the loan;
5        (2) types of collateral, as necessary, that can be
6    pledged for the loan; and
7        (3) staged access to fund privately owned community
8    water supplies.
9    (c) Rules adopted under this Title shall also include, but
10shall not be limited to, criteria for prioritizing the issuance
11of loans under this Title according to applicant need. Priority
12in making loans from the Public Water Supply Loan Program must
13first be given to local government units and privately owned
14community water supplies that need to make capital improvements
15to protect human health and to achieve compliance with the
16State and federal primary drinking water standards adopted
17pursuant to this Act and the federal Safe Drinking Water Act,
18as now and hereafter amended. Rules for prioritizing loans from
19the Water Pollution Control Loan Program may include, but shall
20not be limited to, criteria designed to encourage green
21infrastructure, water efficiency, environmentally innovative
22projects, and nutrient pollution removal, and lead sampling and
23removal.
24    (d) The Agency shall have the authority to promulgate
25regulations to set forth procedures and criteria concerning
26loan applications for funds provided under the American

 

 

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1Recovery and Reinvestment Act of 2009. In addition, due to time
2constraints in the American Recovery and Reinvestment Act of
32009, the Agency shall adopt emergency rules as necessary to
4allow the timely administration of funds provided under the
5American Recovery and Reinvestment Act of 2009. Emergency rules
6adopted under this subsection (d) shall be adopted in
7accordance with Section 5-45 of the Illinois Administrative
8Procedure Act.
9    (e) The Agency may adopt rules to create a linked deposit
10loan program through which loans made pursuant to paragraph
11(3.5) of subsection (b) of Section 19.3 may be made through
12private lenders. Rules adopted under this subsection (e) shall
13include, but shall not be limited to, provisions requiring
14private lenders, prior to disbursing loan proceeds through the
15linked deposit loan program, to verify that the loan recipients
16have been approved by the Agency for financing under paragraph
17(3.5) of subsection (b) of Section 19.3.
18(Source: P.A. 98-782, eff. 7-23-14.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".