HB3739 102ND GENERAL ASSEMBLY

LRB102 14540 CPF 19893 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3739

Introduced 2/22/2021, by Rep. Lamont J. Robinson, Jr.

SYNOPSIS AS INTRODUCED:

See Index

Creates the Lead Service Line Replacement and Notification Act. Creates the Lead Service Line Replacement Fund to be used to finance and administer programs and activities specified under the Act. Makes a conforming change in the State Finance Act. Requires the Environmental Protection Agency to establish procedures for the collection of a specified lead in drinking water protection fee to be collected by all community water supplies. Requires the owner or operator of each community water supply to perform specified activities. Creates the Lead Service Line Replacement Advisory Board within the Agency to perform specified duties. Contains other provisions. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Requires the Department of Commerce and Economic Opportunity to establish a comprehensive low-income water assistance policy and program with specified requirements. Amends the Public Utilities Act. Provides that the Illinois Commerce Commission may allow or direct a water utility to establish a customer assistance program that provides financial relief to residential customers who qualify for income-related assistance. Makes other changes. Amends the Environmental Protection Act. Requires specified entities to provide to the Environmental Protection Agency by December 31, 2023, and again by December 31, 2025, specified information as it relates to the cost of providing water service. Provides that the Agency shall publish the information on the Agency's website. Provides that the Agency may adopt rules setting forth the general requirements for submittal of the information. Repeals the provisions regarding the information on January 1, 2026. Repeals a Section regarding lead in drinking water notifications and inventories.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning safety.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 75-1. Short title. This Act may be cited as the the Lead Service Line Replacement and Notification Act.

Section 75-5. Purpose. The purpose of this Act is to: (1) require the owners and operators of community water supplies to develop, implement, and maintain a comprehensive water service line material inventory and a comprehensive lead service line replacement plan, provide notice to occupants of potentially affected buildings before any construction or repair work on water mains or lead service lines, and request access to potentially affected buildings before replacing lead service lines; (2) prohibit partial lead service line replacements; and (3) establish a revenue source capable of paying for lead service line replacement activities in Illinois.

Section 75-10. Definitions. As used in this Act, unless the context otherwise clearly requires:

"Advisory Board" means the Lead Service Line Replacement Advisory Board created under Section 75-45 of this Act.

"Agency" means the Illinois Environmental Protection Agency.

"Board" means the Illinois Pollution Control Board.

"Community water supply" has the meaning ascribed to it in Section 3.145 of the Environmental Protection Act.

"Department" means the Department of Public Health.

"Emergency repair" means any unscheduled water main, water service, or water valve repair or replacement that results from failure or accident.

"Fund" means the Lead Service Line Replacement Fund created under Section 75-15 of this Act.

"Lead service line" means a service line made of lead or service line connected to a lead pigtail, lead gooseneck, or other lead fitting.

"Material inventory" means a water service line material inventory developed by a community water supply pursuant to this Act.

"Noncommunity water supply" has the meaning ascribed to it in Section 3.145 of the Environmental Protection Act.

"NSF/ANSI Standard" means a water treatment standard developed by NSF International.

"Partial lead service line replacement" means replacement of only a portion of a lead service line.

"Potentially affected building" means any building that is provided water service through a service line that is either a lead service line or a suspected lead service line.

"Public water supply" has the meaning ascribed to it in Section 3.365 of the Environmental Protection Act.

"Service line" means the piping, tubing, and necessary appurtenances acting as a conduit from the water main or source of potable water supply to the building plumbing at the first shut-off valve or 18 inches inside the building, whichever is shorter.

"Suspected lead service line" means a line that a community water supply finds more likely than not to be made of lead after completing the requirements under paragraphs (2) through (5) of subsection (e) of Section 75-25.

"Small system" means a community water supply that regularly serves water to 3,300 or fewer persons.

Section 75-15. Lead Service Line Replacement Fund.

(a) The Lead Service line Replacement Fund is created as a special fund in the State treasury to be used by the Agency and the Department of Commerce and Economic Opportunity for the purposes provided under Section 75-5 of this Act. The Fund shall be used exclusively to finance and administer programs and activities specified under this Act and listed under subsection (c).

(b) The objective of the Fund is to finance all activities associated with identifying and replacing lead service lines, build Agency capacity to oversee the provisions of this Act, and provide related assistance for the activities listed under subsection (c).

(c) The Agency shall be responsible for the administration of the Fund and shall allocate moneys on the basis of priorities established by the Agency. Each year, the Agency shall determine the available amount of resources in the Fund that can be allocated to the activities identified under this Section and shall allocate the moneys accordingly. The moneys shall be allocated from the Fund in the following percentages, except as provided under subsection (d):

(1) for costs related to replacing lead service lines as described under Section 75-40, 75% of the available funding;

(2) for assistance to low-income communities in identifying, inventorying, planning for replacement of, and implementing plans for replacement of lead service lines, 5% of the available funding;

(3) for personnel costs within the Agency associated with administering the provisions of this Act, 3% of the available funding;

(4) for transfer to the Department of Commerce and Economic Opportunity for the low-income water assistance policy and program described under Section 605-870 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois, 7% of the available funding;

(5) for transfer to the Department of Commerce and Economic Opportunity for deposit into the Water Workforce Development Fund, 5% of the available funding; and

(6) for the Water Innovation Grants Program described in Section 75-90, 5% of the available funding.

(d) The Agency may, subject to the following provisions, adjust the percentages of available funding allocated to each activity described under subsection (c). The purpose of this subsection is to enable the Agency flexibility in managing distributions from the Fund while ensuring that distributions are apportioned in a manner consistent with the intent of subsection (c):

(1) In the years preceding the completion of all final inventories and plans described under Sections 75-25 and 75-30, the Agency may direct up to 10% of available funds to the low-income technical assistance activities described under paragraph 2 of subsection (c) of this Section. If the Agency chooses to increase funding for these technical assistance activities, it must decrease the share of funding apportioned to lead service line replacement activities by a commensurate amount for those same years.

(2) For all other deviations from the funding percentages described under subsection (c), the Agency shall consult the Advisory Board.

(3) In no case shall the allocation percentages be modified such that the Agency cannot substantially fulfill this Section's primary purpose of funding the identification, inventory, and replacement of all lead service lines in Illinois.

(e) The Agency is granted all powers necessary for the implementation of this Section.

Section 75-20. Lead in drinking water protection fee.

(a) The General Assembly finds and declares that:

(1) there is no safe level of exposure to heavy metal lead, as found by the United States Environmental Protection Agency and the Center for Disease Control;

(2) lead-based plumbing, including service lines, can convey this harmful substance to the drinking water supply;

(3) according to the Illinois Environmental Protection Agency's 2018 Service Line Material Inventory, the State of Illinois is estimated to have over 680,000 lead-based service lines still in operation;

(4) the true number of lead service lines is not fully known because Illinois lacks an adequate inventory of lead service lines;

(5) for the general health, safety and welfare of its residents, all lead service lines in Illinois should be disconnected from the drinking water supply; and

(6) people throughout the State of Illinois should share the costs of lead service line replacement in order to reduce the public health and social costs of lead in the State's drinking water supply.

(b) Beginning January 1, 2022, a lead in drinking water protection fee is imposed on billed water usage in the following amounts:

(1) In a census tract where the median household income is less than 60% of the State of Illinois' median household income, as defined by the most recent decennial United States Census, the fee shall be $0.00.

(2) In census tracts where the median household income is equal to or greater than 60% but less than 80% of the State of Illinois' median household income, as defined by the most recent decennial United States Census, the fee shall be $0.10 per 1,000 gallons of billed water, rounded to the nearest 1,000 gallons.

(3) In census tracts where the median household income is equal to or greater than 80% but less than 120% of the State of Illinois median household income, as defined by the most recent decennial United States Census, the fee shall be $0.25 per 1,000 gallons of billed water, rounded to the nearest 1,000 gallons.

(4) In census tracts where the median household income is equal to or greater than 120% but less than 150% of the State of Illinois median household income, as defined by the most recent decennial United States Census, the fee shall be $0.35 per 1,000 gallons of billed water, rounded to the nearest 1,000 gallons.

(5) In census tracts where the median household income is equal to or greater than 150% of the State of Illinois median household income, as defined by the most recent decennial United States Census, the fee shall be $0.45 per 1,000 gallons of billed water, rounded to the nearest 1,000 gallons.

(6) In instances where a water account is not metered, the fee shall be $30 per year. If that water account user lives in a census tract where the median household income is less than 60% of the State of Illinois median household income, the fee shall be $0.00.

(c) The lead in drinking water protection fee described under subsection (b) shall be collected by each owner or operator of a community water supply. The fee shall be levied once per billing cycle. If the fee is imposed on an unmetered account as described in paragraph (6) of subsection (b), the amount of the fee charged per billing cycle shall be equal to the annual fee divided by the number of bills issued per year. The fee shall be separately stated on each customer's water bill as the "Lead in Drinking Water Protection Fee". Each owner or operator of a community water supply shall remit all proceeds from the fee to the Department of Revenue.

(d) The Department of Revenue shall deposit all proceeds from the lead in drinking water protection fee described under subsection (b) into the Lead Service Line Replacement Fund, to be used in the manner described in Section 75-15.

(e) The lead in drinking water protection fee described under subsection (b) shall be reviewed by the Agency and the Advisory Board every 5 years. Upon reviewing the fee, the Agency shall report their findings to the Governor and the General Assembly. The report shall include, at a minimum, the following:

(1) An assessment of the sufficiency of the fee to meet the goals of this Act and the activities described in section 75-15.

(2) An assessment of the financial burden, if any, imposed by the fee on households falling below 150 percent of the federal poverty limit.

(3) An assessment of the ability of community water supplies to assess and collect the fee.

(4) Any recommendations for revisions to fee structure and amount.

(5) Upon completion of the initial 5-year review under this subsection, the report shall include recommendations for creating and implementing a lead in drinking water protection fee structure that varies according to individual household income. The recommendations shall be made with the purpose of developing a fee structure that accounts for variations in financial resources among individual households within a service area. The recommended fee structure must consider income variation among individual households and may not solely consider median household income as it pertains to census tract, municipality, or other aggregating geography. The recommendations shall consider, at a minimum, the following:

(A) Variation in the ability of ratepayers at different income levels to pay the fee.

(B) Variation in the ability of different water user types to pay the fee. Such user types may include residential, commercial, industrial, or institutional water ratepayers.

(C) Variation in the ability of utilities to assess and collect the fee.

Section 75-25. Contractor and vendor requirements.

(a) The owner or operator of a community water supply must demonstrate how the community water supply will ensure that program implementation contractors and vendors will meet multiple workforce equity building criteria, including, but not limited to, the following:

(1) Ensuring that an amount of program portfolio incentive funding proportional to the population of persons who are black, indigenous, or persons of color within each county in which the owner or operator of a community water supply is located, to be updated every 2 years, is administered and installed by vendors who meet one of the following criteria:

(A) is certified under Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act;

(B) is certified by another municipal, State, federal, or other certification for disadvantaged businesses;

(C) the owner or operator submission of an affidavit showing that the vendor meets the eligibility criteria for a certification program such as those in subparagraph (1) or (2); or

(D) if the vendor is a nonprofit, meet any of the criteria in subparagraph (A), (B), or (D) or is controlled by a board of directors of which at lease 51% of its members are individuals who are minorities, women, or persons with a disability, as those terms are defined under Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(2) Ensuring that contractors and vendors pay employees working on lead service line replacement programs at or above the prevailing wage rate, when such a wage rate has been published by the Illinois Department of Labor, and pay employees at or above the median wage rate for a similar job description in the nearest metropolitan area when there is no applicable published prevailing wage rate.

(b) An owner or operator of a community water supply shall collect data necessary to ensure compliance with subsection (a) no less than quarterly and shall communicate progress toward compliance with subsection (a) by submitted a report to the Department. The report must include data on vendor and employee diversity, including data on the owner's or operator's implementation of subsection (a).

Section 75-30. Lead service line replacement plans.

(a) Every owner or operator of a community water supply that has known or suspected lead service lines shall:

(1) create a plan to:

(A) replace each lead service line connected to its distribution system;

(B) replace each galvanized service line connected to its distribution system, if the galvanized service line is or was connected downstream to lead piping;

(C) determine the materials of construction of suspected lead service lines and service lines of unknown materials; and

(D) propose a timeline for review and regular revisions of the lead service line replacement plan; and

(2) electronically submit, by April 15, 2023, its initial lead service line replacement plan to the Agency for approval;

(3) electronically submit by April 15 of each subsequent year an updated lead service line replacement plan to the Agency for approval; the updated replacement plan shall account for changes in the number of lead service lines or unknown service lines in the material inventory described in Section 75-25 of this Act;

(4) electronically submit by April 15, 2027 a complete and final replacement plan to the Agency for approval; the complete and final replacement plan shall account for all lead service lines documented in the complete material inventory described under paragraph (3) of subsection (a) of Section 75-25; and

(5) post on its website a copy of the plan most recently approved by the Agency or request that the Agency post a copy of that plan on the Agency's website.

(b) Each plan required under subsection (a) shall include the following:

(1) the name and identification number of the community water supply;

(2) the total number of service lines connected to the distribution system of the community water supply;

(3) the total number of suspected lead service lines connected to the distribution system of the community water supply;

(4) the total number of known lead service lines connected to the distribution system of the community water supply;

(5) the total number of lead service lines connected to the distribution system of the community water supply that have been replaced each year beginning in 2018;

(6) a proposed lead service line replacement schedule that includes one-year, 5-year, 10-year, 15-year, 20-year, and 25-year goals, as applicable under the timelines described under Section 75-35;

(7) the estimated total number of remaining years until all known lead service lines have been replaced or suspected lead service lines have been determined to be made of materials other than lead and the estimated year in which lead service line replacement will be complete;

(8) an analysis of costs and financing options for replacing the lead service lines connected to the community water supply's distribution system, which shall include, but shall not be limited to:

(A) a detailed accounting of costs associated with replacing lead service lines and galvanized lines that are or were connected downstream to lead piping;

(B) measures to address affordability and prevent service shut-offs for customers or ratepayers; and

(C) an explanation of any costs that exceed the funding provisions set forth under Section 75-40; and

(9) a feasibility and affordability plan that includes, but is not limited to, information on how the community water supply intends to fund or finance lead service line replacement costs that exceed the State funding provisions set forth under Section 75-40;

(10) a plan for prioritizing high-risk facilities, such as preschools, day care centers, day care homes, group day care homes, parks, playgrounds, hospitals, and clinics, as well as high-risk areas identified by the community water supply;

(11) a map of the areas where lead service lines are expected to be found and the sequence with which those areas will be inventoried and lead service lines replaced;

(12) measures for how the community water supply will inform the public of the plan and provide opportunity for public comment; and

(13) measures to encourage diversity in hiring in the workforce required to implement the plan.

(c) The Agency shall review each plan submitted to it under this Section. The Agency shall approve a plan if the plan includes all of the elements set forth under subsection (b) and the Agency determines that:

(1) the proposed lead service line replacement schedule set forth in the plan aligns with the timeline requirements set forth under Section 75-35;

(2) the plan prioritizes the replacement of lead service lines that provide water service to high-risk facilities, such as preschools, day care centers, day care homes, group day care homes, parks, playgrounds, hospitals, and clinics, and high-risk areas identified by the community water supply;

(3) the plan includes an analysis of cost and financing options; and

(4) the plan provides an opportunity for public review.

(d) An owner or operator of a community water supply has no duty to include in the plans required under this Section information about service lines that are physically disconnected from a water main in its distribution system.

(e) If a community water supply does not deliver a complete plan to the Agency by April 15, 2027, that community water supply may apply for an extension to the Agency. The Agency shall develop criteria for granting plan extensions. When considering requests for extension, the Agency shall at a minimum consider:

(1) the number of service connections in a water supply;

(2) the staff capacity and financial condition of the community;

(3) the number of service lines of an unknown material composition; and

(4) other criteria as determined by the Agency in consultation with the Lead Service Line Replacement Advisory Board created under Section 75-45.

Section 75-35. Replacement timelines.

(a) Every owner or operator of a community water supply shall replace all lead service lines, subject to the requirements of Section 75-50, according to the following replacement rates and timelines:

(1) Community water supplies reporting 249 or fewer lead service lines in their final inventory and replacement plans shall replace all lead service lines within 5 years after the date of filing the replacement plan, at an annual rate of no less than 20% of the amount described in the final inventory.

(2) Community water supplies reporting more than 249 but fewer than 1,200 lead service lines in their final inventory and replacement plans shall replace all lead service lines within 10 years after the date of filing the replacement plan, at an annual rate of no less than 10% of the amount described in the final inventory.

(3) Community water supplies reporting more than 1,199 but fewer than 10,000 lead service lines in their final inventory and replacement plans shall replace all lead service lines within 15 years after the date of filing the replacement plan, at an annual rate of no less than 6.7% of the amount described in the final inventory.

(4) Community water supplies reporting more than 9,999 but fewer than 50,000 lead service lines in their final inventory and replacement plans shall replace all lead service lines within 20 years after the date of filing the replacement plan, at an annual rate of no less than 5% of the amount described in the final inventory.

(5) Community water supplies reporting more than 49,999 lead service lines in their final inventory and replacement plans shall replace all lead service lines within 25 years after the date of filing the replacement plan, at an annual replacement rate of no less than 4% of the amount described in the final inventory.

(b) A community water supply may apply to the Agency for an extension to the replacement timelines described in paragraphs (1) through (5) of subsection (a). The Agency shall develop criteria for granting replacement timeline extensions. When considering requests for timeline extensions, the Agency shall at a minimum consider:

(1) the number of service connections in a water supply;

(2) the staff capacity and financial condition of the community;

(3) unusual circumstances creating hardship for a community; and

(4) other criteria as determined by the Agency in consultation with the Lead Service Line Replacement Advisory Board described in Section 75-45.

Replacement rates and timelines shall be calculated from the date of submission of the final plan to the Agency.

Section 75-40. Lead service line replacement funding amounts.

(a) Through financial resources provided by the Fund, the Agency shall make available grants to community water supplies for the purpose of the replacement of lead service lines. The annual amount of grant funding available for this purpose shall be determined by the Agency in consultation with the Advisory Board.

(b) Within 120 days of the effective date of this Act, the Agency shall design a program for the purpose of administration of lead service line replacement grant funds. In designing the grant program, the Agency shall consider at a minimum:

(1) the process by which community water supplies may apply for grant funding; and

(2) eligible expenses for grant funding.

(c) Community water supplies shall be eligible for grant funding for the replacement of lead service lines. Grants shall be available at an amount described in subsection (f) of this Section. Grant funding shall be available for the following activities as they relate to lead service line replacement, subject to Agency approval:

(1) costs associated with planning and inventory;

(2) material costs, including the cost of pipes and fittings;

(3) labor and construction costs incidental to lead service line replacement; and

(4) costs borne by the community water supply related to administration of lead service line replacement.

(d) Grant funding shall not be used for the general operating expenses of a municipality or community water supply. Grant funding is intended only for costs directly associated with lead service line replacement.

(e) Any lead service line replacement expense incurred by a community water supply in excess of grant funding under this Section or any other any foundation, State, or federal grant funding shall be borne no more than 50% by the property owner of that lead service line. The remaining costs shall be assumed exclusively by the community water supply.

Section 75-45. Lead Service Line Replacement Advisory Board.

(a) The Lead Service Line Replacement Advisory Board is created within the Agency. The Advisory Board shall convene within 120 days after the effective date of this Act.

(b) The Advisory Board shall consist of at least 19 voting members, as follows:

(1) the Director of the Agency, or his or her designee, who shall serve as chairperson;

(2) the Director of Revenue, or his or her designee;

(3) the Director of Public Health, or his or her designee;

(4) one member appointed by the Governor;

(5) fifteen members appointed by the Agency as follows:

(A) one member of a representative of a statewide organization representing municipalities;

(B) one member representing a municipality with a population of 2,000,000 or more inhabitants, nominated by the mayor of the municipality;

(C) one member representing a municipality with a population of less than 2,000,000 inhabitants located in northern Illinois, nominated by the mayor of the municipality;

(D) one member representing a municipality with a population of less than 2,000,000 inhabitants located in southern Illinois, nominated by the mayor of the municipality;

(E) two members who are representatives from public health advocacy groups;

(F) two members who are representatives from publicly-owned water utilities;

(G) one member who is a representative from an investor-owned utility;

(H) one member who is a research professional employed at an academic institution and specializing in water infrastructure research;

(I) two members who are representatives from nonprofit civic organizations;

(J) one member who is a representative from a statewide organization representing environmental organizations; and

(K) two members who are representatives from organized labor.

No less than 10 of the 19 voting members shall be persons of color, and no less than 3 shall represent communities defined or self-identified as environmental justice communities.

(c) Advisory Board members shall serve without compensation, but may be reimbursed for necessary expenses incurred in the performance of their duties from funds appropriated for that purpose. The Agency shall provide administrative support to the Advisory Board.

(d) The Advisory Board shall meet no less than once every 6 months.

(e) The Advisory Board shall have, at minimum, the following duties:

(1) reviewing the structure and amount of the lead in drinking water protection fee, as described under subsection (b) of Section 75-20;

(2) determining variations in program funding percentage allocation as described under subsection (c) of Section 75-15;

(3) establishing criteria for granting extensions for completion of the material inventory and final lead service line replacement plan, as described under Sections 75-25 and 75-30;

(4) advising the Agency on best practices in lead service line replacement;

(5) reviewing the performance of the Agency and community water supplies in their progress toward lead service line replacement goals;

(6) determining the amount of funding per service line required under Section 75-40;

(7) advising the Agency on other matters related to the administration of the provisions of this Act;

(8) within 10 years after the effective date of this Act, and each year thereafter, preparing reports to the Governor and General Assembly concerning the status of all lead service line remediation sites within the State;

(9) proposing rules prescribing procedures and standards for the administration of the provisions of this Act;

(10) advising the Agency on the integration of existing lead service line remediation or replacement plans with any statewide plan; and

(11) providing technical support and practical expertise in general.

Section 75-50. Lead service line replacement requirements.

(a) When replacing a lead service line, the owner or operator of the community water supply shall replace the service line in its entirety, including, but not limited to, any portion of the service line (i) running on private property and (ii) within the building plumbing at the first shut-off valve. Partial lead service line replacements are expressly prohibited. Exceptions shall be made for the following circumstances:

(1) In the event of an emergency repair that affects a lead service line or a suspected lead service line, a community water supply must contact the building owner to begin the process of replacing the entire service line. If the building owner is not able to be contacted or the building owner or occupant refuses to grant access and permission to replace the entire service line at the time of the emergency repair, then the community water supply may perform a partial lead service line replacement. Where an emergency repair on a service line constructed of lead or galvanized steel pipe results in a partial service line replacement, the water supply responsible for commencing the repair shall perform the following:

(A) Inform the building's owner or operator and the resident or residents served by the lead service line that the community water supply will, at the community water supply's expense, collect a sample from each partially replaced lead service line that is representative of the water in the lead service line for analysis of lead content within 72 hours after the completion of the partial replacement of the lead service line. The community water supply shall collect the sample and report the results of the analysis to the owner or operator and the resident or residents served by the lead service line within 3 business days of receiving the results. Individual written notification shall be delivered in the method and according to the provisions of subsections (c), (d), and (e) of Section 75-60. Mailed notices postmarked within 3 business days of receiving the results are satisfactory.

(B) Notify the building's owner or operator and the resident or residents served by the lead service line in writing that a repair has been completed. Such notification shall include, at a minimum:

(i) a warning that the work may result in sediment, possibly containing lead, in the buildings water supply system;

(ii) information concerning practices for preventing the consumption of any lead in drinking water, including a recommendation to flush water distribution pipe during and after the completion of the repair or replacement work and to clean faucet aerator screens; and

(iii) information regarding the dangers of lead in young children and for pregnant women.

(C) Provide filters for at least one fixture supplying potable water for consumption. The filter must be compliant with NSF/ANSI Standards 53 and 42. The filter must be provided until such time that the remaining portions of the service line have been replaced with a material approved by the Department or a waiver has been issued under subsection (b) of Section 75-55.

(D) Replace the remaining portion of the lead service line within 30 days of the repair. If a complete lead service line replacement cannot be made within the required 30 day period, the person responsible for commencing the repair shall notify the Department in writing of, at a minimum, the following within 24 hours of the repair:

(i) an explanation of why it is not feasible to replace the remaining portion of the lead service line within the allotted time; and

(ii) a timeline for when the remaining portion of the lead service line will be replaced.

(E) If complete repair of a lead service line cannot be completed within 30 days due to denial by the property owner, the person commencing the repair shall request the affected property owner to sign a waiver developed by the Department. If a property owner of a nonresidential building or residence operating as rental properties denies a complete lead service line replacement, the property owner shall be responsible for installing and maintaining point-of-use filters compliant with NSF/ANSI Standards 53 and 42 at all fixtures intended to supply water for the purposes of drinking, food preparation, or making baby formula. The filters shall continue to be supplied until such time that the property owner has affected the remaining portions of the lead service line to be replaced.

(F) Document any remaining lead service line, including a portion on the private side of the property, in the community water supply's distribution system materials inventory required under this Act.

For the purposes of this paragraph, written notice shall be provided in the method and according to the provisions of subsection (a) through (e) of Section 75-60.

(2) Lead service lines that are physically disconnected from the distribution system are exempt from this subsection.

(b) On and after January 1, 2022, when the owner or operator of a community water supply replaces a water main, the community water supply shall identify all lead service lines connected to the water main and shall replace, in accordance with its lead service line replacement plan, the lead service lines by:

(1) identifying the material or materials of each lead service line connected to the water main, including, but not limited to, any portion of the service line (i) running on private property and (ii) within the building plumbing at the first shut-off valve or 18 inches inside the building, whichever is shorter; and

(2) in conjunction with replacement of the water main, replacing any and all portions of each lead service line connected to that water main that are composed of lead.

(c) If an owner of a potentially affected building intends to replace a portion of a lead service line or a galvanized service line and the galvanized service line is or was connected downstream to lead piping, then the owner of the potentially affected building shall provide the owner or operator of the community water supply with notice at least 45 days before commencing the work. In the case of an emergency repair, if the owner of the potentially affected building notifies the owner or operator of the community water supply of the replacement of a portion of the lead service line after the emergency repair is completed, then the owner or operator of the community water supply must provide filters for each kitchen area that are certified to meet the requirements of NSF/ANSI Standards 42 and 53 and replace the remainder of the lead service line within 30 days after completion of the emergency repair. A community water supply may take up to 120 days if necessary due to weather conditions. If a replacement takes longer than 30 days, provided filters must be replaced in accordance with the manufacturer's recommendations. Partial lead service line replacements by the owners of potentially affected buildings are otherwise prohibited.

Section 75-55. Request for private property access.

(a) At least one month before conducting planned lead service line replacement, the owner or operator of a community water supply shall, by certified mail, attempt to contact the owner of the potentially affected building serviced by the lead service line to request access to the building and permission to replace the lead service line in accordance with the lead service line replacement plan. If the owner of the potentially affected building does not respond to that request within 2 weeks after the request is sent, the owner or operator of the community water supply shall attempt to post the request on the entrance of the potentially affected building.

(b) If the owner or operator of a community water supply is unable to obtain approval to access and replace the lead service line, the owner or operator of the community water supply shall request that the owner of the potentially affected building sign a waiver. The waiver shall be developed by the Department and should be made available in the owner's language. If the owner of the potentially affected building refuses to sign the waiver, or fails to respond to the community water supply after the community water supply has complied with subsection (a), the community water supply shall notify the Department in writing within 15 working days.

Section 75-60. Construction notice.

(a) When replacing a lead service line or repairing or replacing water mains with lead service lines or partial lead service lines attached to them, the owner or operator of a community water supply shall provide the owner of each potentially affected building that is serviced by the affected lead service lines or partial lead service lines, as well as the occupants of those buildings, with an individual written notice. The notice shall be delivered by mail or posted at the primary entranceway of the building. The notice may, in addition, be electronically mailed. Written notice shall include, at a minimum, the following:

(1) a warning that the work may result in sediment, possibly containing lead from the service line, in the building's water;

(2) information concerning the best practices for preventing exposure to or risk of consumption of lead in drinking water, including a recommendation to flush water lines during and after the completion of the repair or replacement work and to clean faucet aerator screens; and

(3) information regarding the dangers of lead exposure to young children and pregnant women.

(b) When the individual written notice described in subsection (a) is required as a result of planned work other than the repair or replacement of a water meter, the owner or operator of the community water supply shall provide the notice not less than 14 days before work begins. When the individual written notice described in subsection (a) is required as a result of emergency repairs other than the repair or replacement of a water meter, the owner or operator of the community water supply shall provide the notice at the time the work is initiated. When the individual written notice described in subsection (a) is required as a result of the repair or replacement of a water meter, the owner or operator of the community water supply shall provide the notice at the time the work is initiated.

(c) If a community water supply serves a significant proportion of non-English speaking consumers, the notifications required under this Section must contain information in the appropriate language regarding the importance of the notice and a telephone number or address where a person may contact the owner or operator of the community water supply to obtain a translated copy of the notification or request assistance in the appropriate language.

(d) An owner or operator of a community water supply that is required under this Section to provide an individual written notice to the owner and occupants of a potentially affected building that is a multi-dwelling building may satisfy that requirement and the requirements of subsection (c) by posting the required notice on the primary entranceway of the building and at the location where the occupant's mail is delivered as reasonably as possible.

(e) When this Section would require the owner or operator of a community water supply to provide an individual written notice to the entire community served by the community water supply or would require the owner or operator of a community water supply to provide individual written notices as a result of emergency repairs or when the community water supply that is required to comply with this Section is a small system, the owner or operator of the community water supply may provide the required notice through local media outlets, social media, or other similar means in lieu of providing the individual written notices otherwise required under this Section.

(f) No notifications are required under this Section for work performed on water mains that are used to transmit treated water between community water supplies and that have no service connections.

Section 75-65. Replacement program progress reports. The owner or operator of each community water supply shall include the following information in the annual consumer confidence report required under the United States Environmental Protection Agency's National Primary Drinking Water Regulations:

(1) an estimate of the number of known or suspected lead service lines connected to its distribution system; and

(2) a statement describing progress that has been made toward replacing lead service lines connected to its distribution system.

Section 75-70. Sale to wholesale or retail consecutive community water supply. No community water supply that sells water to any wholesale or retail consecutive community water supply may pass on any costs associated with compliance with this Act to consecutive systems.

Section 75-75. Board review. Authority is hereby vested in the Illinois Pollution Control Board to conduct hearings to review final actions of the Agency under this Act.

Section 75-80. Community water supply liability. To the extent allowed by law, when a community water supply enters into an agreement with a private contractor for replacement or installation of water service lines, the community water supply shall be held harmless for damage to property when replacing or installing water service lines. If dangers are encountered that prevent the replacement of the lead service line, the community water supply shall notify the Department within 15 working days of why the replacement of the lead service line could not be accomplished.

Section 75-85. Rules.

(a) The Agency may propose to the Board, and the Board may adopt, any rules necessary to implement and administer this Act.

(b) The Department may adopt rules necessary to address lead service lines attached to noncommunity water supplies.

Section 75-90. Water Innovation Grants Program.

(a) The purpose of this Section is to create a statewide program for making grants to local units of government for the purposes of drinking water infrastructure improvement.

(b) No later than December 1, 2020, the Agency shall, in coordination with the Advisory Board, create a Water Innovation Grants Program.

(c) In creating and administering the Water Innovation Grants Program, the Agency shall prioritize making grants for infrastructure improvement that are not sufficiently funded through the Drinking Water State Revolving Fund. Municipal programs that address lead pipes and lead plumbing attached to private wells shall be eligible for prioritization under this subsection.

(d) Revenue for this program shall be provided under the terms contained under Section 75-15.

Section 75-95. Federal law. Notwithstanding any other provision in this Act, no requirement in this Act shall be construed as being less stringent than existing applicable federal requirements.

Section 75-100. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-870 as follows:

(20 ILCS 605/605-870 new)

Sec. 605-870. Low-income water assistance policy and program.

(a) The Department shall by rule establish a comprehensive low-income water assistance policy and program that incorporates financial assistance and includes, but is not limited to, water efficiency or water quality projects, such as lead service line replacement, or other measures to ensure that residents have access to affordable and clean water. The policy and program shall not jeopardize the ability of public utilities, community water supplies, or other entities to receive just compensation for providing services. The resources applied in achieving the policy and program shall be coordinated and efficiently used through the integration of public programs and through the targeting of assistance. The Department shall use all appropriate and available means to fund this program and, to the extent possible, identify and use sources of funding that complement State tax revenues. The rule or rules shall be finalized within 180 days after the effective date of this amendatory Act of the 102nd General Assembly, or within 60 days after receiving an appropriation for the program.

(b) Any person who is a resident of the State and whose household income is not greater than an amount determined annually by the Department may apply for assistance under this Section in accordance with rules adopted by the Department. In setting the annual eligibility level, the Department shall consider the amount of available funding and may not set a limit higher than 150% of the poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. 9902(2).

(c) Applicants who qualify for assistance under subsection (b) shall, subject to appropriation from the General Assembly and availability of funds by the Department, receive assistance as provided under this Section. The Department, upon receipt of moneys authorized under this Section for assistance, shall commit funds for each qualified applicant in an amount determined by the Department. In determining the amounts of assistance to be provided to or on behalf of a qualified applicant the Department shall ensure that the highest amounts of assistance go to households with the greatest water costs in relation to household income. The Department may consider factors such as water costs, household size, household income, and region of the State when determining individual household benefits. In adopting rules for the administration of this Section, the Department shall ensure that a minimum of one-third of the funds for the program are available for benefits to eligible households with the lowest incomes and that elderly households, households with persons with disabilities, and households with children under 6 years of age are offered a priority application period.

(d) Application materials for the program shall be made available in multiple languages.

(e) The Department may adopt any rules necessary to implement this Section.

Section 75-105. The State Finance Act is amended by adding Section 5.935 as follows:

(30 ILCS 105/5.935 new)

Sec. 5.935. The Lead Service Line Replacement Fund.

Section 75-110. The Public Utilities Act is amended by changing Section 8-306 as follows:

(220 ILCS 5/8-306)

Sec. 8-306. Special provisions relating to water and sewer utilities.

(a) No later than 120 days after the effective date of this amendatory Act of the 94th General Assembly, the Commission shall prepare, make available to customers upon request, and post on its Internet web site information concerning the service obligations of water and sewer utilities and remedies that a customer may pursue for a violation of the customer's rights. The information shall specifically address the rights of a customer of a water or sewer utility in the following situations:

(1) The customer's water meter is replaced.

(2) The customer's bill increases by more than 50% within one billing period.

(3) The customer's water service is terminated.

(4) The customer wishes to complain after receiving a termination of service notice.

(5) The customer is unable to make payment on a billing statement.

(6) A rate is filed, including without limitation a surcharge or annual reconciliation filing, that will increase the amount billed to the customer.

(7) The customer is billed for services provided prior to the date covered by the billing statement.

(8) The customer is due to receive a credit.

Each billing statement issued by a water or sewer utility shall include an Internet web site address where the customer can view the information required under this subsection (a) and a telephone number that the customer may call to request a copy of the information.

(b) A water or sewer utility may discontinue service only after it has mailed or delivered by other means a written notice of discontinuance substantially in the form of Appendix A of 83 Ill. Adm. Code 280. The notice must include the Internet web site address where the customer can view the information required under subsection (a) and a telephone number that the customer may call to request a copy of the information. Any notice required to be delivered or mailed to a customer prior to discontinuance of service shall be delivered or mailed separately from any bill. Service shall not be discontinued until at least 5 days after delivery or 8 days after the mailing of this notice. Service shall not be discontinued and shall be restored if discontinued for the reason which is the subject of a dispute or complaint during the pendency of informal or formal complaint procedures of the Illinois Commerce Commission under 83 Ill. Adm. Code 280.160 or 280.170, where the customer has complied with those rules. Service shall not be discontinued and shall be restored if discontinued where a customer has established a deferred payment agreement pursuant to 83 Ill. Adm. Code 280.110 and has not defaulted on such agreement. Residential customers who are indebted to a utility for past due utility service shall have the opportunity to make arrangements with the utility to retire the debt by periodic payments, referred to as a deferred payment agreement, unless this customer has failed to make payment under such a plan during the past 12 months. The terms and conditions of a reasonable deferred payment agreement shall be determined by the utility after consideration of the following factors, based upon information available from current utility records or provided by the customer or applicant:

(1) size of the past due account;

(2) customer or applicant's ability to pay;

(3) customer or applicant's payment history;

(4) reason for the outstanding indebtedness; and

(5) any other relevant factors relating to the circumstances of the customer or applicant's service.

A residential customer shall pay a maximum of one-fourth of the amount past due and owing at the time of entering into the deferred payment agreement, and the water or sewer utility shall allow a minimum of 2 months from the date of the agreement and a maximum of 12 months for payment to be made under a deferred payment agreement. Late payment charges may be assessed against the amount owing that is the subject of a deferred payment agreement.

(c) A water or sewer utility shall provide notice as required by subsection (a) of Section 9-201 after the filing of each information sheet under a purchased water surcharge, purchased sewage treatment surcharge, or qualifying infrastructure plant surcharge. The utility also shall post notice of the filing in accordance with the requirements of 83 Ill. Adm. Code 255. Unless filed as part of a general rate increase, notice of the filing of a purchased water surcharge rider, purchased sewage treatment surcharge rider, or qualifying infrastructure plant surcharge rider also shall be given in the manner required by this subsection (c) for the filing of information sheets.

(d) Commission rules pertaining to formal and informal complaints against public utilities shall apply with full and equal force to water and sewer utilities and their customers, including provisions of 83 Ill. Adm. Code 280.170, and the Commission shall respond to each complaint by providing the consumer with a copy of the utility's response to the complaint and a copy of the Commission's review of the complaint and its findings. The Commission shall also provide the consumer with all available options for recourse.

(e) Any refund shown on the billing statement of a customer of a water or sewer utility must be itemized and must state if the refund is an adjustment or credit.

(f) Water service for building construction purposes. At the request of any municipality or township within the service area of a public utility that provides water service to customers within the municipality or township, a public utility must (1) require all water service used for building construction purposes to be measured by meter and subject to approved rates and charges for metered water service and (2) prohibit the unauthorized use of water taken from hydrants or service lines installed at construction sites.

(g) Water meters.

(1) Periodic testing. Unless otherwise approved by the Commission, each service water meter shall be periodically inspected and tested in accordance with the schedule specified in 83 Ill. Adm. Code 600.340, or more frequently as the results may warrant, to insure that the meter accuracy is maintained within the limits set out in 83 Ill. Adm. Code 600.310.

(2) Meter tests requested by customer.

(A) Each utility furnishing metered water service shall, without charge, test the accuracy of any meter upon request by the customer served by such meter, provided that the meter in question has not been tested by the utility or by the Commission within 2 years previous to such request. The customer or his or her representatives shall have the privilege of witnessing the test at the option of the customer. A written report, giving the results of the test, shall be made to the customer.

(B) When a meter that has been in service less than 2 years since its last test is found to be accurate within the limits specified in 83 Ill. Adm. Code 600.310, the customer shall pay a fee to the utility not to exceed the amounts specified in 83 Ill. Adm. Code 600.350(b). Fees for testing meters not included in this Section or so located that the cost will be out of proportion to the fee specified will be determined by the Commission upon receipt of a complete description of the case.

(3) Commission referee tests. Upon written application to the Commission by any customer, a test will be made of the customer's meter by a representative of the Commission. For such a test, a fee as provided for in subsection (g)(2) shall accompany the application. If the meter is found to be registering more than 1.5% fast on the average when tested as prescribed in 83 Ill. Adm. Code 600.310, the utility shall refund to the customer the amount of the fee. The utility shall in no way disturb the meter after a customer has made an application for a referee test until authority to do so is given by the Commission or the customer in writing.

(h) Water and sewer utilities; low usage. Each public utility that provides water and sewer service must establish a unit sewer rate, subject to review by the Commission, that applies only to those customers who use less than 1,000 gallons of water in any billing period.

(i) Water and sewer utilities; separate meters. Each public utility that provides water and sewer service must offer separate rates for water and sewer service to any commercial or residential customer who uses separate meters to measure each of those services. In order for the separate rate to apply, a combination of meters must be used to measure the amount of water that reaches the sewer system and the amount of water that does not reach the sewer system.

(j) Each water or sewer public utility must disclose on each billing statement any amount billed that is for service provided prior to the date covered by the billing statement. The disclosure must include the dates for which the prior service is being billed. Each billing statement that includes an amount billed for service provided prior to the date covered by the billing statement must disclose the dates for which that amount is billed and must include a copy of the document created under subsection (a) and a statement of current Commission rules concerning unbilled or misbilled service.

(k) When the customer is due a refund resulting from payment of an overcharge, the utility shall credit the customer in the amount of overpayment with interest from the date of overpayment by the customer. The rate for interest shall be at the appropriate rate determined by the Commission under 83 Ill. Adm. Code 280.70.

(l) Water and sewer public utilities; subcontractors. The Commission shall adopt rules for water and sewer public utilities to provide notice to the customers of the proper kind of identification that a subcontractor must present to the customer, to prohibit a subcontractor from soliciting or receiving payment of any kind for any service provided by the water or sewer public utility or the subcontractor, and to establish sanctions for violations.

(m) Water and sewer public utilities; nonrevenue unaccounted-for water. Each By December 31, 2006, each water public utility shall file tariffs with the Commission to establish the maximum percentage of nonrevenue unaccounted-for water that would be considered in the determination of any rates or surcharges. The rates or surcharges approved for a water public utility shall not include charges for nonrevenue unaccounted-for water in excess of this maximum percentage without well-documented support and justification for the Commission to consider in any request to recover charges in excess of the tariffed maximum percentage.

(n) Rate increases; public forums. When any public utility providing water or sewer service proposes a general rate increase, in addition to other notice requirements, the water or sewer public utility must notify its customers of their right to request a public forum. A customer or group of customers must make written request to the Commission for a public forum and must also provide written notification of the request to the customer's municipal or, for unincorporated areas, township government. The Commission, at its discretion, may schedule the public forum. If it is determined that public forums are required for multiple municipalities or townships, the Commission shall schedule these public forums, in locations within approximately 45 minutes drive time of the municipalities or townships for which the public forums have been scheduled. The public utility must provide advance notice of 30 days for each public forum to the governing bodies of those units of local government affected by the increase. The day of each public forum shall be selected so as to encourage the greatest public participation. Each public forum will begin at 7:00 p.m. Reports and comments made during or as a result of each public forum must be made available to the hearing officials and reviewed when drafting a recommended or tentative decision, finding or order pursuant to Section 10-111 of this Act.

(o) The Commission may allow or direct a water utility to establish a customer assistance program that provides financial relief to residential customers who qualify for income-related assistance. A customer assistance program established under this subsection that affects rates and charges for service is not discriminatory for purposes of this Act or any other law regulating rates and charges for service. In considering whether to approve a water utility's proposed customer assistance program, the Commission must determine that a customer assistance program established under this subsection is in the public interest. The Commission shall adopt rules to implement this subsection. The rules shall require customer assistance programs under this subsection to coordinate with utility energy efficiency programs and the Illinois Home Weatherization Assistance Program for the purpose of informing eligible customers of additional resources that may help the customer conserve water.

(Source: P.A. 94-950, eff. 6-27-06.)

Section 75-115. The Environmental Protection Act is amended by adding Section 17.12 as follows:

(415 ILCS 5/17.12 new)

Sec. 17.12. Water cost information.

(a) An entity subject to the federal Safe Drinking Water Act that has over 3,500 meter connections shall provide to the Agency by December 31, 2023, and again by December 31, 2025, the following information as it relates to the cost of providing water service:

(1) All revenue recovered from water bills or any other revenue used for water service from the preceding year.

(2) Total operating expenses, including both principal and interest debt service payments.

(3) The percentage of the revenue recovered from water bills used or allocated for water capital infrastructure investment.

(4) A narrative description of the capital infrastructure investment made based on the information provided under paragraph (3).

(b) The Agency shall publish the information provided under subsection (a) on the Agency's website.

(c) The Agency may adopt rules setting forth the general requirements for submittal of the information provided under subsection (a).

(d) This Section is repealed on January 1, 2026.

(415 ILCS 5/17.11 rep.)

Section 75-200. The Environmental Protection Act is amended by repealing Section 17.11.