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|[ Engrossed ]||[ Enrolled ]||[ Senate Amendment 001 ]|
|[ Senate Amendment 002 ]|
90_SB0815 415 ILCS 5/Title IV-A heading 415 ILCS 5/19.1 from Ch. 111 1/2, par. 1019.1 415 ILCS 5/19.2 from Ch. 111 1/2, par. 1019.2 415 ILCS 5/19.3 from Ch. 111 1/2, par. 1019.3 415 ILCS 5/19.4 from Ch. 111 1/2, par. 1019.4 415 ILCS 5/19.5 from Ch. 111 1/2, par. 1019.5 415 ILCS 5/19.6 from Ch. 111 1/2, par. 1019.6 415 ILCS 5/19.8 from Ch. 111 1/2, par. 1019.8 Amends the Environmental Protection Act. Creates the Public Water Supply Loan Program to be administered by the Environmental Protection Agency to provide financial assistance to local government units in their development of public water supplies. Provides that this Program, the Water Pollution Control Loan Program, and the Loan Support Program comprise the Water Revolving Fund (formerly, Water Pollution Control Revolving Fund). Expands the uses of the Loan Support Program to include, among others, financing costs incurred by the Agency to provide technical and administrative assistance relating to public water systems. Vests the Agency with the authority to set by rule special loan terms for disadvantaged communities and maximum limits on annual distributions of funds to loan applicants. Effective immediately. LRB9000167DPdv LRB9000167DPdv 1 AN ACT to amend the Environmental Protection Act by 2 changing the heading of Title IV-A and Sections 19.1, 19.2, 3 19.3, 19.4, 19.5, 19.6, and 19.8. 4 Be it enacted by the People of the State of Illinois, 5 represented in the General Assembly: 6 Section 5. The Environmental Protection Act is amended 7 by changing the heading of Title IV-A and Sections 19.1, 8 19.2, 19.3, 19.4, 19.5, 19.6, and 19.8 as follows: 9 (415 ILCS 5/Title IV-A heading) 10 TITLE IV-A: WATER POLLUTION CONTROL 11 AND PUBLIC WATER SUPPLIES 12 (415 ILCS 5/19.1) (from Ch. 111 1/2, par. 1019.1) 13 Sec. 19.1. Legislative findings. The General Assembly 14 finds: 15 (a) that local government units require assistance in 16 financing the construction of wastewater treatment works in 17 order to comply with the State's program of environmental 18 protection and federally mandated requirements;
and19 (b) that the federal Water Quality Act of 1987 provides 20 an important source of grant awards to the State for 21 providing assistance to local government units through the 22 Water Pollution Control Loan Program; Revolving Fund.23 (c) that local government units require assistance in 24 financing the construction of their public water supplies to 25 comply with State and federal drinking water laws and 26 regulations; and 27 (d) that the federal Safe Drinking Water Act ("SDWA"), 28 P.L. 93-532, as now or hereafter amended, provides an 29 important source of capitalization grant awards to the State 30 to provide assistance to local government units through the -2- LRB9000167DPdv 1 Public Water Supply Loan Program. 2 (Source: P.A. 85-1135.) 3 (415 ILCS 5/19.2) (from Ch. 111 1/2, par. 1019.2) 4 Sec. 19.2. As used in this Title, unless the context 5 clearly requires otherwise: 6 (a) "Agency" means the Illinois Environmental Protection 7 Agency. 8 (b) "Fund" means the Water Pollution ControlRevolving 9 Fund created pursuant to this Title, consisting of the Water 10 Pollution Control Loan Program, the Public Water Supply Loan 11 Program, and the Loan Support Program. 12 (c) "Loan" means a loan made from the Water Pollution 13 Control Loan Program or the Public Water Supply Loan Program 14 to an eligible local government unit as a result of a 15 contractual agreement between the Agency and such unit. 16 (d) "Construction" means any one or more of the 17 following which is undertaken for a public purpose: 18 preliminary planning to determine the feasibility of the 19 treatment works or public water supply, engineering, 20 architectural, legal, fiscal or economic investigations or 21 studies, surveys, designs, plans, working drawings, 22 specifications, procedures or other necessary actions, 23 erection, building, acquisition, alteration, remodeling, 24 improvement or extension of treatment works or public water 25 supplies, or the inspection or supervision of any of the 26 foregoing items. "Construction" also includes implementation 27 of source water quality protection measures and establishment 28 and implementation of wellhead protection programs in 29 accordance with Section 1452(k)(1) of the federal Safe 30 Drinking Water Act. 31 (e) "Intended use plan" means a plan which includes a 32 description of the short and long term goals and objectives 33 of the Water Pollution Control Loan Program and the Public -3- LRB9000167DPdv 1 Water Supply Loan Program, project categories, discharge 2 requirements, terms of financial assistance and the 3 communities to be served. 4 (f) "Treatment works" means any devices and systems 5 owned by a local government unit and used in the storage, 6 treatment, recycling, and reclamation of orsewerage or 7 industrial wastes of a liquid nature, including intercepting 8 sewers, outfall sewers, sewage collection systems, pumping 9 power and other equipment, and theirappurtenances; 10 extensions, improvements, remodeling, additions, and 11 alterations thereof; elements essential to provide a reliable 12 recycled supply, such as standby treatment units and clear 13 well facilities; and any works, including site acquisition of 14 the land that will be an integral part of the treatment 15 process for wastewater facilities. 16 (g) "Local government unit" means a county, 17 municipality, township, municipal or county sewerage or 18 utility authority, sanitary district, public water district, 19 improvement authority or any other political subdivision 20 whose primary purpose is to construct, operate and maintain 21 wastewater treatment facilities or public water supply 22 facilities or both. 23 (Source: P.A. 89-27, eff. 1-1-96.) 24 (415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3) 25 Sec. 19.3. Water Revolving Fund. 26 (a) There is hereby created within the State Treasury a 27 an interest bearing special fund to be known as theWater 28 Pollution ControlRevolving Fund, consisting of 3 29 interest-bearing special 2programs to be known as the Water 30 Pollution Control Loan Program, the Public Water Supply Loan 31 Program, and the Loan Support Program, which shall be used 32 and administered by the Agency. 33 (b) (a-1)The Water Pollution Control Loan Program shall -4- LRB9000167DPdv 1 be used and administered by the Agency to provide assistance 2 to local government units for the following public purposes: 3 (1) to accept and retain funds from grant awards, 4 appropriations, transfers, and payments of interest and 5 principal; 6 (2) to make direct loans at or below market 7 interest rates to any eligible local government unit to 8 finance the construction of wastewater treatments works; 9 (3) to make direct loans at or below market 10 interest rates to any eligible local government unit to 11 buy or refinance debt obligations for treatment works 12 workincurred after March 7, 1985; 13 (4) to guarantee or purchase insurance for local 14 obligations where such action would improve credit market 15 access or reduce interest rates; 16 (5) as a source of revenue or security for the 17 payment of principal and interest on revenue or general 18 obligation bonds issued by the State, if the proceeds of 19 such bonds will be deposited in the Fund; and20 (6) to finance the reasonable costs incurred by the 21 Agency in the administration of the Fund; and .22 (7) to transfer funds to the Public Water Supply 23 Loan Program. 24 (c) (a-2)The Loan Support Program shall be used and 25 administered by the Agency for the following purposes: 26 (1) to accept and retain funds from grant awards 27 and appropriations; 28 (2) (1)to finance the reasonable costs incurred by 29 the Agency in the administration of the Fund, including 30 activities under Title III of this Act, including the 31 administration of the State construction grant program; 32 (3) (2)to transfer funds to the Water Pollution 33 Control Loan Program and the Public Water Supply Loan 34 Program; -5- LRB9000167DPdv 1 (4) (3)to accept and retain a portion of the loan 2 repayments; and3 (5) (4)to finance the development of the low 4 interest loan program for public water supply projects; .5 (6) to finance the reasonable costs incurred by the 6 Agency to provide technical assistance for public water 7 supplies; and 8 (7) to finance the reasonable costs incurred by the 9 Agency for public water system supervision programs, to 10 administer or provide for technical assistance through 11 source water protection programs, to develop and 12 implement a capacity development strategy, to delineate 13 and assess source water protection areas, and for an 14 operator certification program in accordance with Section 15 1452 of the federal Safe Drinking Water Act. 16 (d) The Public Water Supply Loan Program shall be used 17 and administered by the Agency to provide assistance to local 18 government units for public water supplies for the following 19 public purposes: 20 (1) to accept and retain funds from grant awards, 21 appropriations, transfers, and payments of interest and 22 principal; 23 (2) to make direct loans at or below market 24 interest rates to any eligible local government unit to 25 finance the construction of public water supplies; 26 (3) to buy or refinance the debt obligation of a 27 local government unit for costs incurred on or after the 28 effective date of this amendatory Act of 1996; 29 (4) to guarantee local obligations where such 30 action would improve credit market access or reduce 31 interest rates; 32 (5) as a source of revenue or security for the 33 payment of principal and interest on revenue or general 34 obligation bonds issued by the State, if the proceeds of -6- LRB9000167DPdv 1 such bonds will be deposited into the Fund; and 2 (6) to transfer funds to the Water Pollution 3 Control Loan Program. 4 (e) (b)The Agency is designated as the administering 5 agency of the Fund. The Agency shall submit to the Regional 6 Administrator of the United States Environmental Protection 7 Agency an intended use plan which outlines the proposed use 8 of funds available to the State. The Agency shall take all 9 actions necessary to secure to the State the benefits of the 10 federal Water Pollution Control Act and the federal Safe 11 Drinking Water Act, as now or hereafter amended. 12 (Source: P.A. 89-27, eff. 1-1-96.) 13 (415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4) 14 Sec. 19.4. The Agency shall have the authority to 15 promulgate regulations to set forth procedures and criteria 16 concerning loan applications, assurance of payment, interest 17 rates, loan support rates, impact on user charges, 18 eligibility of proposed construction, andpriority of needs, 19 special loan terms for disadvantaged communities, and maximum 20 limits on annual distributions of funds to applicants or 21 groups of applicants. The Agency shall develop and maintain 22 a priority list of loan applicants as categorized by need. 23 Priority in making loans from the Water Pollution Control 24 Loan Program Fundmust first be given to local government 25 units which need to make capital improvements to achieve 26 compliance with National Pollutant Discharge Elimination 27 System permit requirements pursuant to the federal Water 28 Quality Act of 1987 and this Act. Priority in making loans 29 from the Public Water Supply Loan Program must first be given 30 to local government units that need to make capital 31 improvements to protect human health and to achieve 32 compliance with the State and federal primary drinking water 33 standards adopted pursuant to this Act and the federal Safe -7- LRB9000167DPdv 1 Drinking Water Act, as now and hereafter amended. 2 (Source: P.A. 89-27, eff. 1-1-96.) 3 (415 ILCS 5/19.5) (from Ch. 111 1/2, par. 1019.5) 4 Sec. 19.5. Loans; repayment. 5 (a) The Agency shall have the authority to make loans 6 for a public purpose to local government units for the 7 construction of treatment works and public water supplies 8 pursuant to the regulations promulgated under Section 19.4. 9 (b) Loans made from the Fund shall provide for: 10 (1) a schedule of disbursement of proceeds; 11 (2) a fixed rate that includes interest and loan 12 support based upon priority, but the loan support rate 13 shall not exceed one-half of the fixed rate established 14 for each loan; 15 (3) a schedule of repayment not to exceed 20 years; 16 (4) initiation of principal repayments within one 17 year after the project is operational; and 18 (5) a confession of judgment upon default. 19 (c) (b-1)The Agency may amend existing loans to include 20 a loan support rate only if the overall cost to the loan 21 recipient is not increased. 22 (d) (c)A local government unit shall secure the payment 23 of its obligations to the Fund by a dedicated source of 24 repayment, including revenues derived from the imposition of 25 rates, fees and charges. In the event of a delinquency as to 26 payments to the Fund, the local government unit shall revise 27 its rates, fees and charges to meet its obligations. 28 (Source: P.A. 89-27, eff. 1-1-96.) 29 (415 ILCS 5/19.6) (from Ch. 111 1/2, par. 1019.6) 30 Sec. 19.6. Delinquent loan repayment. 31 (a) In the event that a timely payment is not made by a -8- LRB9000167DPdv 1 local government unit according to the loan schedule of 2 repayment, the local government unit shall notify the Agency 3 in writing within 15 days after the payment due date. The 4 notification shall include a statement of the reasons the 5 payment was not timely tendered, the circumstances under 6 which the late payments will be satisfied, and binding 7 commitments to assure future payments. After receipt of this 8 notification, the Agency shall confirm in writing the 9 acceptability of the plan or take action in accordance with 10 subsection (b) of this Section. 11 (b) In the event that a local government unit fails to 12 comply with subsection (a) of this Section, the Agency shall 13 promptly issue a notice of delinquency to the local 14 government unit which shall require a written response within 15 30 days. The notice of delinquency shall require that the 16 local government unit revise its rates, fees and charges to 17 meet its obligations pursuant to subsection (d) (c)of 18 Section 19.5 or take other specified actions as may be 19 appropriate to remedy the delinquency and to assure future 20 payments. 21 (c) In the event that the local government unit fails to 22 timely or adequately respond to a notice of delinquency, or 23 fails to meet its obligations made pursuant to subsections 24 (a) and (b) of this Section, the Agency shall pursue the 25 collection of the amounts past due, the outstanding loan 26 balance and the costs thereby incurred, either pursuant to 27 the Illinois State Collection Act of 1986 or by any other 28 reasonable means as may be provided by law. 29 (Source: P.A. 85-1135.) 30 (415 ILCS 5/19.8) (from Ch. 111 1/2, par. 1019.8) 31 Sec. 19.8. The Director of the Agency shall appoint 32 committees a Committeeto advise the Agency concerning the 33 financial structure of the Programs Fund. The committees -9- LRB9000167DPdv 1 Committeeshall consist of representatives from appropriate 2 State agencies, the financial community, engineering 3 societies and other interested parties. The committees 4 Committeeshall meet periodically at least annuallyand 5 members shall be reimbursed for their ordinary and necessary 6 expenses incurred in the performance of their committee the7 Committee'sduties. 8 (Source: P.A. 85-1135.) 9 Section 99. Effective date. This Act takes effect upon 10 becoming law.
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