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| [ 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.
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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; and
19 (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
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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 Control Revolving
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
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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 or sewerage or
7 industrial wastes of a liquid nature, including intercepting
8 sewers, outfall sewers, sewage collection systems, pumping
9 power and other equipment, and their appurtenances;
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 the Water
28 Pollution Control Revolving Fund, consisting of 3
29 interest-bearing special 2 programs 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
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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 work incurred 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; and
20 (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;
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1 (4) (3) to accept and retain a portion of the loan
2 repayments; and
3 (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
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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, and priority 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 Fund must 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
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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
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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 Committee to advise the Agency concerning the
33 financial structure of the Programs Fund. The committees
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1 Committee shall consist of representatives from appropriate
2 State agencies, the financial community, engineering
3 societies and other interested parties. The committees
4 Committee shall meet periodically at least annually and
5 members shall be reimbursed for their ordinary and necessary
6 expenses incurred in the performance of their committee the
7 Committee's duties.
8 (Source: P.A. 85-1135.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.