103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3375

 

Introduced 2/7/2024, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
415 ILCS 5/19.3  from Ch. 111 1/2, par. 1019.3

    Amends the Environmental Protection Act. Provides that a wastewater treatment facility located in the Village of Lisbon in Kendall County is allowed to apply for the Water Pollution Control Loan Program for the purposes of refinancing existing debt. Effective immediately.


LRB103 38336 BDA 68471 b

 

 

A BILL FOR

 

SB3375LRB103 38336 BDA 68471 b

1    AN ACT concerning safety.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Environmental Protection Act is amended by
5changing Section 19.3 as follows:
 
6    (415 ILCS 5/19.3)  (from Ch. 111 1/2, par. 1019.3)
7    Sec. 19.3. Water Revolving Fund.
8    (a) There is hereby created within the State Treasury a
9Water Revolving Fund, consisting of 3 interest-bearing special
10programs to be known as the Water Pollution Control Loan
11Program, the Public Water Supply Loan Program, and the Loan
12Support Program, which shall be used and administered by the
13Agency.
14    (b) The Water Pollution Control Loan Program shall be used
15and administered by the Agency to provide assistance for the
16following purposes:
17        (1) to accept and retain funds from grant awards,
18    appropriations, transfers, and payments of interest and
19    principal;
20        (2) to make direct loans at or below market interest
21    rates and to provide additional subsidization, including,
22    but not limited to, forgiveness of principal, negative
23    interest rates, and grants, to any eligible local

 

 

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1    government unit to finance the construction of treatments
2    works, including storm water treatment systems that are
3    treatment works, and projects that fulfill federal State
4    Revolving Fund grant requirements for a green project
5    reserve;
6        (2.5) with respect to funds provided under the
7    American Recovery and Reinvestment Act of 2009:
8            (A) to make direct loans at or below market
9        interest rates to any eligible local government unit
10        and to provide additional subsidization to any
11        eligible local government unit, including, but not
12        limited to, forgiveness of principal, negative
13        interest rates, and grants;
14            (B) to make direct loans at or below market
15        interest rates to any eligible local government unit
16        to buy or refinance debt obligations for treatment
17        works incurred on or after October 1, 2008; and
18            (C) to provide additional subsidization,
19        including, but not limited to, forgiveness of
20        principal, negative interest rates, and grants for
21        treatment works incurred on or after October 1, 2008;
22        (3) to make direct loans at or below market interest
23    rates and to provide additional subsidization, including,
24    but not limited to, forgiveness of principal, negative
25    interest rates, and grants, to any eligible local
26    government unit to buy or refinance debt obligations for

 

 

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1    costs incurred after March 7, 1985, for the construction
2    of treatment works, including storm water treatment
3    systems that are treatment works, and projects that
4    fulfill federal State Revolving Fund grant requirements
5    for a green project reserve;
6        (3.5) to make loans, including, but not limited to,
7    loans through a linked deposit program, at or below market
8    interest rates for the implementation of a management
9    program established under Section 319 of the Federal Water
10    Pollution Control Act, as amended;
11        (4) to guarantee or purchase insurance for local
12    obligations where such action would improve credit market
13    access or reduce interest rates;
14        (5) as a source of revenue or security for the payment
15    of principal and interest on revenue or general obligation
16    bonds issued by the State or any political subdivision or
17    instrumentality thereof, if the proceeds of such bonds
18    will be deposited in the Fund;
19        (6) to finance the reasonable costs incurred by the
20    Agency in the administration of the Fund;
21        (7) to transfer funds to the Public Water Supply Loan
22    Program; and
23        (8) notwithstanding any other provision of this
24    subsection (b), to provide, in accordance with rules
25    adopted under this Title, any other financial assistance
26    that may be provided under Section 603 of the Federal

 

 

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1    Water Pollution Control Act for any other projects or
2    activities eligible for assistance under that Section or
3    federal rules adopted to implement that Section.
4    (b-5) The wastewater treatment facility located in the
5Village of Lisbon in Kendall County, specifically located at
6200 East Joliet Street, is allowed to apply for the Water
7Pollution Control Loan Program for the purposes of refinancing
8existing debt.
9    (c) The Loan Support Program shall be used and
10administered by the Agency for the following purposes:
11        (1) to accept and retain funds from grant awards and
12    appropriations;
13        (2) to finance the reasonable costs incurred by the
14    Agency in the administration of the Fund, including
15    activities under Title III of this Act, including the
16    administration of the State construction grant program;
17        (3) to transfer funds to the Water Pollution Control
18    Loan Program and the Public Water Supply Loan Program;
19        (4) to accept and retain a portion of the loan
20    repayments;
21        (5) to finance the development of the low interest
22    loan programs for water pollution control and public water
23    supply projects;
24        (6) to finance the reasonable costs incurred by the
25    Agency to provide technical assistance for public water
26    supplies; and

 

 

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1        (7) to finance the reasonable costs incurred by the
2    Agency for public water system supervision programs, to
3    administer or provide for technical assistance through
4    source water protection programs, to develop and implement
5    a capacity development strategy, to delineate and assess
6    source water protection areas, and for an operator
7    certification program in accordance with Section 1452 of
8    the federal Safe Drinking Water Act.
9    (d) The Public Water Supply Loan Program shall be used and
10administered by the Agency to provide assistance to local
11government units and privately owned community water supplies
12for public water supplies for the following public purposes:
13        (1) to accept and retain funds from grant awards,
14    appropriations, transfers, and payments of interest and
15    principal;
16        (2) to make direct loans at or below market interest
17    rates and to provide additional subsidization, including,
18    but not limited to, forgiveness of principal, negative
19    interest rates, and grants, to any eligible local
20    government unit or to any eligible privately owned
21    community water supply to finance the construction of
22    water supplies and projects that fulfill federal State
23    Revolving Fund grant requirements for a green project
24    reserve;
25        (2.5) with respect to funds provided under the
26    American Recovery and Reinvestment Act of 2009:

 

 

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1            (A) to make direct loans at or below market
2        interest rates to any eligible local government unit
3        or to any eligible privately owned community water
4        supply, and to provide additional subsidization to any
5        eligible local government unit or to any eligible
6        privately owned community water supply, including, but
7        not limited to, forgiveness of principal, negative
8        interest rates, and grants;
9            (B) to buy or refinance the debt obligation of a
10        local government unit for costs incurred on or after
11        October 1, 2008; and
12            (C) to provide additional subsidization,
13        including, but not limited to, forgiveness of
14        principal, negative interest rates, and grants for a
15        local government unit for costs incurred on or after
16        October 1, 2008;
17        (3) to make direct loans at or below market interest
18    rates and to provide additional subsidization, including,
19    but not limited to, forgiveness of principal, negative
20    interest rates, and grants, to any eligible local
21    government unit or to any eligible privately owned
22    community water supply to buy or refinance debt
23    obligations for costs incurred on or after July 17, 1997,
24    for the construction of water supplies and projects that
25    fulfill federal State Revolving Fund requirements for a
26    green project reserve;

 

 

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1        (4) to guarantee local obligations where such action
2    would improve credit market access or reduce interest
3    rates;
4        (5) as a source of revenue or security for the payment
5    of principal and interest on revenue or general obligation
6    bonds issued by the State or any political subdivision or
7    instrumentality thereof, if the proceeds of such bonds
8    will be deposited into the Fund;
9        (6) to transfer funds to the Water Pollution Control
10    Loan Program; and
11        (7) notwithstanding any other provision of this
12    subsection (d), to provide to local government units and
13    privately owned community water supplies any other
14    financial assistance that may be provided under Section
15    1452 of the federal Safe Drinking Water Act for any
16    expenditures eligible for assistance under that Section or
17    federal rules adopted to implement that Section.
18    (e) The Agency is designated as the administering agency
19of the Fund. The Agency shall submit to the Regional
20Administrator of the United States Environmental Protection
21Agency an intended use plan which outlines the proposed use of
22funds available to the State. The Agency shall take all
23actions necessary to secure to the State the benefits of the
24federal Water Pollution Control Act and the federal Safe
25Drinking Water Act, as now or hereafter amended.
26    (f) The Agency shall have the power to enter into

 

 

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1intergovernmental agreements with the federal government or
2the State, or any instrumentality thereof, for purposes of
3capitalizing the Water Revolving Fund. Moneys on deposit in
4the Water Revolving Fund may be used for the creation of
5reserve funds or pledged funds that secure the obligations of
6repayment of loans made pursuant to this Section. For the
7purpose of obtaining capital for deposit into the Water
8Revolving Fund, the Agency may also enter into agreements with
9financial institutions and other persons for the purpose of
10selling loans and developing a secondary market for such
11loans. The Agency shall have the power to create and establish
12such reserve funds and accounts as may be necessary or
13desirable to accomplish its purposes under this subsection and
14to allocate its available moneys into such funds and accounts.
15Investment earnings on moneys held in the Water Revolving
16Fund, including any reserve fund or pledged fund, shall be
17deposited into the Water Revolving Fund.
18    (g) Beginning on the effective date of this amendatory Act
19of the 101st General Assembly, and running for a period of 5
20years after that date, the Agency shall prioritize within its
21annual intended use plan the usage of a portion of the Agency's
22capitalization grant for federally authorized set-aside
23activities. The prioritization is for the purpose of
24supporting disadvantaged communities and utilities throughout
25Illinois in building their capacity for sustainable and
26equitable water management. This may include, but is not

 

 

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1limited to, assistance for water rate studies, preliminary
2engineering or other facility planning, training activities,
3asset management plans, assistance with identification and
4replacement of lead service lines, and studies of efficiency
5measures through utility regionalization or other
6collaborative intergovernmental approaches.
7(Source: P.A. 101-143, eff. 1-1-20.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.