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90_SB0815eng
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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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;
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; and
2 (e) that violations of State and federal drinking water
3 standards threaten the public interest, safety, and welfare,
4 which demands that the Illinois Environmental Protection
5 Agency expeditiously adopt emergency rules to administer the
6 Public Water Supply Loan Program.
7 (Source: P.A. 85-1135.)
8 (415 ILCS 5/19.2) (from Ch. 111 1/2, par. 1019.2)
9 Sec. 19.2. As used in this Title, unless the context
10 clearly requires otherwise:
11 (a) "Agency" means the Illinois Environmental Protection
12 Agency.
13 (b) "Fund" means the Water Pollution Control Revolving
14 Fund created pursuant to this Title, consisting of the Water
15 Pollution Control Loan Program, the Public Water Supply Loan
16 Program, and the Loan Support Program.
17 (c) "Loan" means a loan made from the Water Pollution
18 Control Loan Program or the Public Water Supply Loan Program
19 to an eligible local government unit as a result of a
20 contractual agreement between the Agency and such unit.
21 (d) "Construction" means any one or more of the
22 following which is undertaken for a public purpose:
23 preliminary planning to determine the feasibility of the
24 treatment works or public water supply, engineering,
25 architectural, legal, fiscal or economic investigations or
26 studies, surveys, designs, plans, working drawings,
27 specifications, procedures or other necessary actions,
28 erection, building, acquisition, alteration, remodeling,
29 improvement or extension of treatment works or public water
30 supplies, or the inspection or supervision of any of the
31 foregoing items. "Construction" also includes implementation
32 of source water quality protection measures and establishment
33 and implementation of wellhead protection programs in
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1 accordance with Section 1452(k)(1) of the federal Safe
2 Drinking Water Act.
3 (e) "Intended use plan" means a plan which includes a
4 description of the short and long term goals and objectives
5 of the Water Pollution Control Loan Program and the Public
6 Water Supply Loan Program, project categories, discharge
7 requirements, terms of financial assistance and the
8 communities to be served.
9 (f) "Treatment works" means any devices and systems
10 owned by a local government unit and used in the storage,
11 treatment, recycling, and reclamation of or sewerage or
12 industrial wastes of a liquid nature, including intercepting
13 sewers, outfall sewers, sewage collection systems, pumping
14 power and other equipment, and their appurtenances;
15 extensions, improvements, remodeling, additions, and
16 alterations thereof; elements essential to provide a reliable
17 recycled supply, such as standby treatment units and clear
18 well facilities; and any works, including site acquisition of
19 the land that will be an integral part of the treatment
20 process for wastewater facilities.
21 (g) "Local government unit" means a county,
22 municipality, township, municipal or county sewerage or
23 utility authority, sanitary district, public water district,
24 improvement authority or any other political subdivision
25 whose primary purpose is to construct, operate and maintain
26 wastewater treatment facilities or public water supply
27 facilities or both.
28 (Source: P.A. 89-27, eff. 1-1-96.)
29 (415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)
30 Sec. 19.3. Water Revolving Fund.
31 (a) There is hereby created within the State Treasury a
32 an interest bearing special fund to be known as the Water
33 Pollution Control Revolving Fund, consisting of 3
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1 interest-bearing special 2 programs to be known as the Water
2 Pollution Control Loan Program, the Public Water Supply Loan
3 Program, and the Loan Support Program, which shall be used
4 and administered by the Agency.
5 (b) (a-1) The Water Pollution Control Loan Program shall
6 be used and administered by the Agency to provide assistance
7 to local government units for the following public 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
12 interest rates to any eligible local government unit to
13 finance the construction of wastewater treatments works;
14 (3) to make direct loans at or below market
15 interest rates to any eligible local government unit to
16 buy or refinance debt obligations for treatment works
17 work incurred after March 7, 1985;
18 (4) to guarantee or purchase insurance for local
19 obligations where such action would improve credit market
20 access or reduce interest rates;
21 (5) as a source of revenue or security for the
22 payment of principal and interest on revenue or general
23 obligation bonds issued by the State, if the proceeds of
24 such bonds will be deposited in the Fund; and
25 (6) to finance the reasonable costs incurred by the
26 Agency in the administration of the Fund; and.
27 (7) to transfer funds to the Public Water Supply
28 Loan Program.
29 (c) (a-2) The Loan Support Program shall be used and
30 administered by the Agency for the following purposes:
31 (1) to accept and retain funds from grant awards
32 and appropriations;
33 (2) (1) to finance the reasonable costs incurred by
34 the Agency in the administration of the Fund, including
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1 activities under Title III of this Act, including the
2 administration of the State construction grant program;
3 (3) (2) to transfer funds to the Water Pollution
4 Control Loan Program and the Public Water Supply Loan
5 Program;
6 (4) (3) to accept and retain a portion of the loan
7 repayments; and
8 (5) (4) to finance the development of the low
9 interest loan program for public water supply projects;.
10 (6) to finance the reasonable costs incurred by the
11 Agency to provide technical assistance for public water
12 supplies; and
13 (7) to finance the reasonable costs incurred by the
14 Agency for public water system supervision programs, to
15 administer or provide for technical assistance through
16 source water protection programs, to develop and
17 implement a capacity development strategy, to delineate
18 and assess source water protection areas, and for an
19 operator certification program in accordance with Section
20 1452 of the federal Safe Drinking Water Act.
21 (d) The Public Water Supply Loan Program shall be used
22 and administered by the Agency to provide assistance to local
23 government units for public water supplies for the following
24 public purposes:
25 (1) to accept and retain funds from grant awards,
26 appropriations, transfers, and payments of interest and
27 principal;
28 (2) to make direct loans at or below market
29 interest rates to any eligible local government unit to
30 finance the construction of public water supplies;
31 (3) to buy or refinance the debt obligation of a
32 local government unit for costs incurred on or after the
33 effective date of this amendatory Act of 1997;
34 (4) to guarantee local obligations where such
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1 action would improve credit market access or reduce
2 interest rates;
3 (5) as a source of revenue or security for the
4 payment of principal and interest on revenue or general
5 obligation bonds issued by the State, if the proceeds of
6 such bonds will be deposited into the Fund; and
7 (6) to transfer funds to the Water Pollution
8 Control Loan Program.
9 (e) (b) The Agency is designated as the administering
10 agency of the Fund. The Agency shall submit to the Regional
11 Administrator of the United States Environmental Protection
12 Agency an intended use plan which outlines the proposed use
13 of funds available to the State. The Agency shall take all
14 actions necessary to secure to the State the benefits of the
15 federal Water Pollution Control Act and the federal Safe
16 Drinking Water Act, as now or hereafter amended.
17 (Source: P.A. 89-27, eff. 1-1-96.)
18 (415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)
19 Sec. 19.4. The Agency shall have the authority to
20 promulgate regulations to set forth procedures and criteria
21 concerning loan applications, assurance of payment, interest
22 rates, loan support rates, impact on user charges,
23 eligibility of proposed construction, and priority of needs,
24 special loan terms for disadvantaged communities, and maximum
25 limits on annual distributions of funds to applicants or
26 groups of applicants. The Agency shall develop and maintain
27 a priority list of loan applicants as categorized by need.
28 Priority in making loans from the Water Pollution Control
29 Loan Program Fund must first be given to local government
30 units which need to make capital improvements to achieve
31 compliance with National Pollutant Discharge Elimination
32 System permit requirements pursuant to the federal Water
33 Quality Act of 1987 and this Act. Priority in making loans
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1 from the Public Water Supply Loan Program must first be given
2 to local government units that need to make capital
3 improvements to protect human health and to achieve
4 compliance with the State and federal primary drinking water
5 standards adopted pursuant to this Act and the federal Safe
6 Drinking Water Act, as now and hereafter amended.
7 (Source: P.A. 89-27, eff. 1-1-96.)
8 (415 ILCS 5/19.5) (from Ch. 111 1/2, par. 1019.5)
9 Sec. 19.5. Loans; repayment.
10 (a) The Agency shall have the authority to make loans
11 for a public purpose to local government units for the
12 construction of treatment works and public water supplies
13 pursuant to the regulations promulgated under Section 19.4.
14 (b) Loans made from the Fund shall provide for:
15 (1) a schedule of disbursement of proceeds;
16 (2) a fixed rate that includes interest and loan
17 support based upon priority, but the loan support rate
18 shall not exceed one-half of the fixed rate established
19 for each loan;
20 (3) a schedule of repayment not to exceed 20 years;
21 (4) initiation of principal repayments within one
22 year after the project is operational; and
23 (5) a confession of judgment upon default.
24 (c) (b-1) The Agency may amend existing loans to include
25 a loan support rate only if the overall cost to the loan
26 recipient is not increased.
27 (d) (c) A local government unit shall secure the payment
28 of its obligations to the Fund by a dedicated source of
29 repayment, including revenues derived from the imposition of
30 rates, fees and charges. In the event of a delinquency as to
31 payments to the Fund, the local government unit shall revise
32 its rates, fees and charges to meet its obligations.
33 (Source: P.A. 89-27, eff. 1-1-96.)
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1 (415 ILCS 5/19.6) (from Ch. 111 1/2, par. 1019.6)
2 Sec. 19.6. Delinquent loan repayment.
3 (a) In the event that a timely payment is not made by a
4 local government unit according to the loan schedule of
5 repayment, the local government unit shall notify the Agency
6 in writing within 15 days after the payment due date. The
7 notification shall include a statement of the reasons the
8 payment was not timely tendered, the circumstances under
9 which the late payments will be satisfied, and binding
10 commitments to assure future payments. After receipt of this
11 notification, the Agency shall confirm in writing the
12 acceptability of the plan or take action in accordance with
13 subsection (b) of this Section.
14 (b) In the event that a local government unit fails to
15 comply with subsection (a) of this Section, the Agency shall
16 promptly issue a notice of delinquency to the local
17 government unit which shall require a written response within
18 30 days. The notice of delinquency shall require that the
19 local government unit revise its rates, fees and charges to
20 meet its obligations pursuant to subsection (d) (c) of
21 Section 19.5 or take other specified actions as may be
22 appropriate to remedy the delinquency and to assure future
23 payments.
24 (c) In the event that the local government unit fails to
25 timely or adequately respond to a notice of delinquency, or
26 fails to meet its obligations made pursuant to subsections
27 (a) and (b) of this Section, the Agency shall pursue the
28 collection of the amounts past due, the outstanding loan
29 balance and the costs thereby incurred, either pursuant to
30 the Illinois State Collection Act of 1986 or by any other
31 reasonable means as may be provided by law.
32 (Source: P.A. 85-1135.)
33 (415 ILCS 5/19.8) (from Ch. 111 1/2, par. 1019.8)
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1 Sec. 19.8. Advisory committees; reports.
2 (a) The Director of the Agency shall appoint committees
3 a Committee to advise the Agency concerning the financial
4 structure of the Programs Fund. The committees Committee
5 shall consist of representatives from appropriate State
6 agencies, the financial community, engineering societies and
7 other interested parties. The committees Committee shall
8 meet periodically at least annually and members shall be
9 reimbursed for their ordinary and necessary expenses incurred
10 in the performance of their committee the Committee's duties.
11 (b) The Agency shall report to the General Assembly by
12 June 30, 1998 regarding the feasibility of providing drinking
13 water loans to not-for-profit community water supplies that
14 serve units of local government and to investor-owned public
15 utilities. The report shall include a detailed discussion of
16 all relevant factors and shall include participation from
17 representatives of the affected entities.
18 (Source: P.A. 85-1135.)
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.