Public Act 098-0782
 
SB2780 EnrolledLRB098 19511 MGM 54687 b


  
    AN ACT concerning safety.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  

  
 
    Section 5. The Environmental Protection Act is amended  by 
changing Sections 19.1, 19.2, 19.3, and 19.4 as follows:
 



    (415 ILCS 5/19.1)  (from Ch. 111 1/2, par. 1019.1)



    Sec. 19.1. Legislative findings. The General Assembly 
finds:

    (a) that local government units require assistance in 
financing the
construction of water wastewater treatment works 
and projects in order to comply with the
State's program of 
environmental protection and federally mandated
requirements;

    (b) that the federal Water Quality Act of 1987 provides an 
important
source of grant awards to the State for providing 
assistance to local
government units through the Water 
Pollution Control Loan Program;

    (c) that local government units and privately owned 
community water
supplies require assistance in financing the 
construction of their public
water supplies to comply with 
State and federal drinking water laws and
regulations;

    (d) that the federal Safe Drinking Water Act ("SDWA"), P.L. 
93-523, as now or hereafter amended, provides an important 
source of
capitalization grant awards to the State to provide 
assistance to local
government units and privately owned 
community water supplies through the
Public Water Supply Loan 
Program;

    (e) that violations of State and federal drinking water 
standards
threaten the public interest, safety, and welfare, 
which demands that
the Illinois Environmental Protection 
Agency expeditiously adopt
emergency rules to administer the 
Public Water Supply Loan Program;

    (f) that the General Assembly agrees with the conclusions 
and
recommendations of the "Report to the Illinois General 
Assembly on the Issue
of Expanding Public Water Supply Loan 
Eligibility to Privately Owned Community
Water Supplies", 
dated August 1998, including the stated access to the Public

Water Supply Loan Program by the privately owned public water 
supplies so that
the long term integrity and viability of the 
corpus of the Fund will be
assured; and

    (g) that the American Recovery and Reinvestment Act of 2009 
provides a source of capitalization grant awards to the State 
to provide loans and additional subsidization, including, but 
not limited to, forgiveness of principal, negative interest 
loans, and grants, to local government units through the Water 
Pollution Control Loan Program and to local government units 
and privately owned community water supplies through the Public 
Water Supply Loan Program; . 
    (h)   that expanding eligibility to include publicly owned 
municipal storm water projects eligible for financing as 
treatment works, as defined under Section 212 of the Federal 
Water Pollution Control Act, will provide the Agency with the 
statutory authority to use moneys in the Water Pollution 
Control Loan Program to provide financial assistance for 
eligible projects, including those that encourage green 
infrastructure, that manage and treat storm water, and that 
maintain and restore natural hydrology by infiltrating, 
evapotranspiring, and capturing and using storm water;
    (i)  that in planning projects for which financing will be 
sought from the Water Pollution Control Loan Program, 
municipalities may benefit from efforts to consider a project's 
lifetime costs; the availability of long-term funding for the 
construction, operation, maintenance, and replacement of the 
project; the resilience of the project to the effects of 
climate change; the project's ability to increase water 
efficiency; the capacity of the project to restore natural 
hydrology or to preserve or restore landscape features; the 
cost-effectiveness of the project; and the overall 
environmental innovativeness of the project; and
    (j)  that projects implementing a management program 
established under Section 319 of the Federal Water Pollution 
Control Act may benefit from the creation of a linked deposit 
program that would make loans available at or below market 
interest rates through private lenders. 
(Source: P.A. 96-8, eff. 4-28-09.)

 



    (415 ILCS 5/19.2)  (from Ch. 111 1/2, par. 1019.2)



    Sec. 19.2. 
As used in this Title, unless the context 
clearly
requires otherwise:

    (a) "Agency" means the Illinois Environmental Protection 
Agency.

    (b) "Fund" means the Water Revolving Fund created
pursuant 
to this Title, consisting of the Water Pollution Control Loan

Program, the Public Water Supply Loan Program,
and the Loan 
Support Program.

    (c) "Loan" means a loan made from the Water Pollution 
Control
Loan Program or the Public Water Supply Loan Program to 
an eligible applicant as a result of a
contractual agreement 
between the Agency and such applicant.

    (d) "Construction" means any one or more of the following 
which is
undertaken for a public purpose:  preliminary planning 
to determine the
feasibility of the treatment works or public 
water supply, engineering,
architectural, legal,
fiscal or 
economic investigations or studies, surveys, designs, plans,

working drawings, specifications, procedures or other 
necessary actions,
erection, building, acquisition, 
alteration, remodeling, improvement or
extension of treatment 
works or public water supplies, or the inspection or

supervision of any of
the foregoing items.  "Construction" also 
includes implementation of source
water quality protection 
measures and establishment and implementation of
wellhead 
protection programs in accordance with Section 1452(k)(1) of 
the
federal Safe Drinking Water Act.

    (e) "Intended use plan" means a plan which includes a 
description of the
short and long term goals and objectives of 
the Water Pollution Control Loan
Program and the Public Water 
Supply Loan Program, project categories,
discharge 
requirements, terms of financial assistance and the loan 
applicants
to be served.

    (f) "Treatment works" means treatment works, as defined in 
Section 212 of the Federal Water Pollution Control Act, 
including, but not limited to, the following: any devices and 
systems owned by a local
government unit and used in the 
storage, treatment, recycling, and
reclamation of sewerage or 
industrial wastes of a liquid nature, including
intercepting 
sewers, outfall sewers, sewage collection systems, pumping

power and other equipment, and appurtenances; extensions,

improvements, remodeling, additions, and alterations thereof; 
elements
essential to provide a reliable recycled supply, such 
as standby treatment
units and clear well facilities; and any 
works, including site acquisition
of the land that will be an 
integral part of the treatment process for
wastewater 
facilities; and any other method or system for preventing, 
abating, reducing, storing, treating, separating, or disposing 
of municipal waste, including storm water runoff, or industrial 
waste, including waste in combined storm water and sanitary 
sewer systems as those terms are defined in the Federal Water 
Pollution Control Act.

    (g) "Local government unit" means a county, municipality, 
township,
municipal or county sewerage or utility authority, 
sanitary district, public
water district, improvement 
authority or any other political subdivision
whose primary

purpose is to construct, operate and maintain wastewater 
treatment facilities, including storm water treatment systems,

or public water supply facilities or both.

    (h) "Privately owned community water supply" means:


        (1) an investor-owned water utility, if under Illinois 
    Commerce Commission
regulation and operating as a separate 
    and distinct water utility;


        (2) a not-for-profit water corporation, if operating 
    specifically as a
water utility; and


        (3) a mutually owned or cooperatively owned community 
    water system, if
operating
as a separate water utility.

(Source: P.A. 91-36, eff. 6-15-99; 91-52, eff. 6-30-99;
91-501, 
eff. 8-13-99; 92-16, eff. 6-28-01.)

 



    (415 ILCS 5/19.3)  (from Ch. 111 1/2, par. 1019.3)



    Sec. 19.3. Water Revolving Fund. 

    (a) There is hereby created within the State Treasury a 
Water Revolving
Fund, consisting of 3 interest-bearing special 
programs to be known as the
Water Pollution Control Loan 
Program, the Public Water Supply Loan Program, and
the Loan 
Support Program, which shall be used and administered by the 
Agency.

    (b) The Water Pollution Control Loan Program shall be used 
and administered
by the Agency to provide assistance for the 
following purposes:


        (1) to accept and retain funds from grant awards, 
    appropriations,
transfers, and payments of interest and 
    principal;


        (2) to make direct loans at or below market interest 
    rates and to provide additional subsidization, including, 
    but not limited to, forgiveness of principal, negative 
    interest rates, and grants, to any
eligible local 
    government unit to finance the construction of wastewater

    treatments works, including storm water treatment systems 
    that are treatment works, and projects that fulfill federal 
    State Revolving Fund grant requirements for a green project 
    reserve;

        (2.5) with respect to funds provided under the American 
    Recovery and Reinvestment Act of 2009:
            (A)  to make direct loans at or below market 
        interest rates to any eligible local government unit 
        and to provide additional subsidization to any 
        eligible local government unit, including, but not 
        limited to, forgiveness of principal, negative 
        interest rates, and grants;
            (B) to make direct loans at or below market 
        interest rates to any eligible local government unit to 
        buy or refinance debt obligations for treatment works 
        incurred on or after October 1, 2008; and
            (C) to provide additional subsidization, 
        including, but not limited to, forgiveness of 
        principal, negative interest rates, and grants for 
        treatment works incurred on or after October 1, 2008; 

        (3) to make direct loans at or below market interest 
    rates and to provide additional subsidization, including, 
    but not limited to, forgiveness of principal, negative 
    interest rates, and grants, to any
eligible local 
    government unit to buy or refinance debt obligations for 
    costs
 incurred after March 7, 1985, for the construction of 
    wastewater treatment works, including storm water 
    treatment systems that are treatment works, and projects 
    that fulfill federal State Revolving Fund grant 
    requirements for a green project reserve;


        (3.5) to make direct loans, including, but not limited 
    to, loans through a linked deposit program, at or below 
    market interest rates for the
implementation of a 
    management program established under Section 319 of the

    Federal Water Pollution Control Act, as amended;


        (4) to guarantee or purchase insurance for local 
    obligations
where such action would improve credit market 
    access or reduce interest rates;


        (5) as a source of revenue or security for the payment 
    of principal and
interest on revenue or general obligation 
    bonds issued by the State or any
political subdivision or 
    instrumentality thereof, if the proceeds of such
bonds will 
    be deposited in the Fund;


        (6) to finance the reasonable costs incurred by the 
    Agency in the
administration of the Fund; and


        (7) to transfer funds to the Public Water Supply Loan 
    Program; and .

        (8)   notwithstanding any other provision of this 
    subsection (b), to provide, in accordance with rules 
    adopted under this Title, any financial assistance that may 
    be provided under Section 603 of the Federal Water 
    Pollution Control Act for any projects eligible for 
    assistance under subsections (c)(1) or (c)(2) of that 
    Section or federal rules adopted under those subsections. 
    (c) The Loan Support Program shall be used and administered 
by the Agency
for the following purposes:


        (1) to accept and retain funds from grant awards and 
    appropriations;


        (2) to finance the reasonable costs incurred by the 
    Agency in the
administration of the Fund, including 
    activities under Title III of this
Act, including the 
    administration of the State
construction grant program;


        (3) to transfer funds to the Water Pollution Control 
    Loan
Program and the Public Water Supply Loan Program;


        (4) to accept and retain a portion of the loan 
    repayments;


        (5) to finance the development of the low interest loan

    programs for water pollution control and public water 
    supply projects;


        (6) to finance the reasonable costs incurred by the 
    Agency to provide
technical assistance for public water 
    supplies; and


        (7) to finance the reasonable costs incurred by the 
    Agency for
public water system supervision programs, to 
    administer or provide for
technical assistance through 
    source water protection programs, to develop and
implement 
    a capacity development strategy, to delineate and assess 
    source water
protection areas, and for an operator 
    certification program in accordance with
Section 1452 of 
    the federal Safe Drinking Water Act.

    (d) The Public Water Supply Loan Program shall be used and 
administered by
the Agency to provide assistance to local 
government units and privately owned
community water supplies 
for public water
supplies for the following public purposes:


        (1) to accept and retain funds from grant awards, 
    appropriations,
transfers, and payments of interest and 
    principal;


        (2) to make direct loans at or below market interest 
    rates and to provide additional subsidization, including, 
    but not limited to, forgiveness of principal, negative 
    interest rates, and grants, to any eligible
local 
    government unit or to any eligible privately owned 
    community water supply
to finance the construction of water 
    supplies and projects that fulfill federal State Revolving 
    Fund grant requirements for a green project reserve;

        (2.5) with respect to funds provided under the American 
    Recovery and Reinvestment Act of 2009: 
            (A) to make direct loans at or below market 
        interest rates to any eligible local government unit or 
        to any eligible privately owned community water 
        supply, and to provide additional subsidization to any 
        eligible local government unit or to any eligible 
        privately owned community water supply, including, but 
        not limited to, forgiveness of principal, negative 
        interest rates, and grants; 
            (B) to buy or refinance the debt obligation of a 
        local government unit for costs incurred on or after 
        October 1, 2008; and 

            (C) to provide additional subsidization, 
        including, but not limited to, forgiveness of 
        principal, negative interest rates, and grants for a 
        local government unit for costs  incurred on or after 
        October 1, 2008; 

        (3) to make direct loans at or below market interest 
    rates and to provide additional subsidization, including, 
    but not limited to, forgiveness of principal, negative 
    interest rates, and grants, to any eligible local 
    government unit or to any eligible privately owned 
    community water supply to buy or refinance debt obligations 
    for
costs incurred on or after July 17, 1997, for the 
    construction of water supplies and projects that fulfill 
    federal State Revolving Fund requirements for a green 
    project reserve;


        (4) to guarantee local obligations where such action 
    would improve credit
market access or reduce interest 
    rates;


        (5) as a source of revenue or security for the payment 
    of principal and
interest on revenue or general obligation 
    bonds issued by the State or any
political subdivision or 
    instrumentality thereof, if the proceeds of such
bonds will 
    be deposited into the Fund; and


        (6) to transfer funds to the Water Pollution Control 
    Loan Program.

    (e) The Agency is designated as the administering agency of 
the Fund.
The Agency shall submit to the Regional Administrator 
of the United States
Environmental Protection Agency an 
intended use plan which outlines the
proposed use of funds 
available to the State.  The Agency shall take all
actions 
necessary to secure to the State the benefits of the federal

Water Pollution Control Act and the federal Safe Drinking Water 
Act, as now
or hereafter amended.

    (f) The Agency shall have the power to enter into 
intergovernmental
agreements with the federal government or 
the State, or any instrumentality
thereof, for purposes of 
capitalizing the Water Revolving Fund.
Moneys on deposit in the 
Water Revolving Fund may be used for the
creation of reserve 
funds or pledged funds that secure the obligations
of repayment 
of loans made pursuant to this Section.  For the purpose
of 
obtaining capital for deposit into the Water Revolving Fund, 
the
Agency may also enter into agreements with financial 
institutions and other
persons for the purpose of selling loans 
and developing a secondary market
for such loans.  The Agency 
shall have the power to create and establish such
reserve funds 
and accounts as may be necessary or desirable to accomplish its

purposes under this subsection and to allocate its available 
moneys into such
funds and accounts.  Investment earnings on 
moneys held in the Water Revolving
Fund, including any reserve 
fund or pledged fund, shall be deposited into the
Water 
Revolving Fund.

(Source: P.A. 96-8, eff. 4-28-09; 96-917, eff. 6-9-10.)

 



    (415 ILCS 5/19.4)  (from Ch. 111 1/2, par. 1019.4)



    Sec. 19.4. Regulations; priorities. 

    (a) The Agency shall have the authority to promulgate

regulations for the administration of this Title, including, 
but not limited to, rules setting to set forth procedures and 
criteria concerning loan
applications and the issuance of 
loans.  For loans to units of local government, the regulations 
shall
include, but need not be limited to, the following 
elements:


        (1) loan application requirements;


        (2) determination of credit worthiness of the loan 
    applicant;


        (3) special loan terms, as necessary, for securing the 
    repayment of the
loan;


        (4) assurance of payment;


        (5) interest rates;


        (6) loan support rates;


        (7) impact on user charges;


        (8) eligibility of proposed construction;


        (9) priority of needs;


        (10) special loan terms for disadvantaged communities;


        (11) maximum limits on annual distributions of funds to 
    applicants
or groups of applicants;


        (12) penalties for noncompliance with loan 
    requirements and conditions,
including stop-work orders, 
    termination, and recovery of loan funds; and


        (13) indemnification of the State of Illinois and the 
    Agency by the loan
recipient.

    (b) The Agency shall have the authority to promulgate 
regulations to set
forth procedures and criteria concerning 
loan applications for loan recipients
other than units of local 
government.  In addition to all of the elements
required for 
units of local government under subsection (a), the regulations

shall include, but need not be limited to, the following 
elements:


        (1) types of security required for the loan;


        (2) types of collateral, as necessary, that can be 
    pledged for the loan;
and


        (3) staged access to fund privately owned community 
    water supplies.

    (c) Rules adopted under this Title shall also include, but 
shall not be limited to, criteria for prioritizing the issuance 
of loans under this Title according to applicant need. The 
Agency shall develop and maintain a priority list of loan

applicants as categorized by need.
 Priority in making loans 
from the Public Water Supply Loan Program must first
be given 
to local government units and privately owned community water 
supplies
that need to make capital improvements to
protect 
human health and to achieve compliance with the State and 
federal
primary drinking water standards adopted pursuant to 
this Act and the federal
Safe Drinking Water Act, as now and 
hereafter amended. Rules for prioritizing loans from the Water 
Pollution Control Loan Program may include, but shall not be 
limited to, criteria designed to encourage green 
infrastructure, water efficiency, environmentally innovative 
projects, and nutrient pollution removal. 
    (d) The Agency shall have the authority to promulgate 
regulations to set forth procedures and criteria concerning 
loan applications for funds provided under the American 
Recovery and Reinvestment Act of 2009. In addition, due to time 
constraints in the American Recovery and Reinvestment Act of 
2009, the Agency shall adopt emergency rules as necessary to 
allow the timely administration of funds provided under the 
American Recovery and Reinvestment Act of 2009. Emergency rules 
adopted under this subsection (d) shall be adopted in 
accordance with Section 5-45 of the Illinois Administrative 
Procedure Act. 
    (e)   The Agency may adopt rules to create a linked deposit 
loan program through which loans made pursuant to paragraph 
(3.5) of subsection (b) of Section 19.3 may be made through 
private lenders. Rules adopted under this subsection (e) shall 
include, but shall not be limited to, provisions requiring 
private lenders, prior to disbursing loan proceeds through the 
linked deposit loan program, to verify that the loan recipients 
have been approved by the Agency for financing under paragraph 
(3.5) of subsection (b) of Section 19.3. 
(Source: P.A. 96-8, eff. 4-28-09.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.


Effective Date:  07/23/2014