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|[ Introduced ]||[ Engrossed ]||[ Senate Amendment 001 ]|
|[ Senate Amendment 002 ]|
90_SB0815enr 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 SB815 Enrolled 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; 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 SB815 Enrolled -2- LRB9000167DPdv 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 ControlRevolving 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 SB815 Enrolled -3- LRB9000167DPdv 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 orsewerage or 12 industrial wastes of a liquid nature, including intercepting 13 sewers, outfall sewers, sewage collection systems, pumping 14 power and other equipment, and theirappurtenances; 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 theWater 33 Pollution ControlRevolving Fund, consisting of 3 SB815 Enrolled -4- LRB9000167DPdv 1 interest-bearing special 2programs 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 workincurred 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; and25 (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 SB815 Enrolled -5- LRB9000167DPdv 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; and8 (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 SB815 Enrolled -6- LRB9000167DPdv 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, andpriority 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 Fundmust 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 SB815 Enrolled -7- LRB9000167DPdv 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.) SB815 Enrolled -8- LRB9000167DPdv 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) SB815 Enrolled -9- LRB9000167DPdv 1 Sec. 19.8. Advisory committees; reports. 2 (a) The Director of the Agency shall appoint committees 3 a Committeeto advise the Agency concerning the financial 4 structure of the Programs Fund. The committees Committee5 shall consist of representatives from appropriate State 6 agencies, the financial community, engineering societies and 7 other interested parties. The committees Committeeshall 8 meet periodically at least annuallyand members shall be 9 reimbursed for their ordinary and necessary expenses incurred 10 in the performance of their committee the Committee'sduties. 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.
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