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91_HB1893eng
HB1893 Engrossed LRB9104708ACtm
1 AN ACT to amend the Environmental Protection Act by
2 changing Sections 19.1, 19.2, 19.3, and 19.5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Environmental Protection Act is amended
6 by changing Sections 19.1, 19.2, 19.3, and 19.5 as follows:
7 (415 ILCS 5/19.1) (from Ch. 111 1/2, par. 1019.1)
8 Sec. 19.1. Legislative findings. The General Assembly
9 finds:
10 (a) that local government units require assistance in
11 financing the construction of wastewater treatment works in
12 order to comply with the State's program of environmental
13 protection and federally mandated requirements;
14 (b) that the federal Water Quality Act of 1987 provides
15 an important source of grant awards to the State for
16 providing assistance to local government units and privately
17 owned community water systems through the Water Pollution
18 Control Loan Program;
19 (c) that local government units and privately owned
20 community water systems require assistance in financing the
21 construction of their public water supplies to comply with
22 State and federal drinking water laws and regulations;
23 (d) that the federal Safe Drinking Water Act ("SDWA"),
24 P.L. 93-532, as now or hereafter amended, provides an
25 important source of capitalization grant awards to the State
26 to provide assistance to local government units and privately
27 owned community water systems through the Public Water Supply
28 Loan Program; and
29 (e) that violations of State and federal drinking water
30 standards threaten the public interest, safety, and welfare,
31 which demands that the Illinois Environmental Protection
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1 Agency expeditiously adopt emergency rules to administer the
2 Public Water Supply Loan Program.
3 (Source: P.A. 90-121, eff. 7-17-97.)
4 (415 ILCS 5/19.2) (from Ch. 111 1/2, par. 1019.2)
5 Sec. 19.2. As used in this Title, unless the context
6 clearly requires otherwise:
7 (a) "Agency" means the Illinois Environmental Protection
8 Agency.
9 (b) "Fund" means the Water Revolving Fund created
10 pursuant to this Title, consisting of the Water Pollution
11 Control Loan Program, the Public Water Supply Loan Program,
12 and the Loan Support Program.
13 (c) "Loan" means a loan made from the Water Pollution
14 Control Loan Program or the Public Water Supply Loan Program
15 to an eligible local government unit or a privately owned
16 community water system as a result of a contractual agreement
17 between the Agency and such unit.
18 (d) "Construction" means any one or more of the
19 following which is undertaken for a public purpose:
20 preliminary planning to determine the feasibility of the
21 treatment works or public water supply, engineering,
22 architectural, legal, fiscal or economic investigations or
23 studies, surveys, designs, plans, working drawings,
24 specifications, procedures or other necessary actions,
25 erection, building, acquisition, alteration, remodeling,
26 improvement or extension of treatment works or public water
27 supplies, or the inspection or supervision of any of the
28 foregoing items. "Construction" also includes implementation
29 of source water quality protection measures and establishment
30 and implementation of wellhead protection programs in
31 accordance with Section 1452(k)(1) of the federal Safe
32 Drinking Water Act.
33 (e) "Intended use plan" means a plan which includes a
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1 description of the short and long term goals and objectives
2 of the Water Pollution Control Loan Program and the Public
3 Water Supply Loan Program, project categories, discharge
4 requirements, terms of financial assistance and the
5 communities to be served.
6 (f) "Treatment works" means any devices and systems
7 owned by a local government unit or a privately owned
8 community water system and used in the storage, treatment,
9 recycling, and reclamation of sewerage or industrial wastes
10 of a liquid nature, including intercepting sewers, outfall
11 sewers, sewage collection systems, pumping power and other
12 equipment, and appurtenances; extensions, improvements,
13 remodeling, additions, and alterations thereof; elements
14 essential to provide a reliable recycled supply, such as
15 standby treatment units and clear well facilities; and any
16 works, including site acquisition of the land that will be an
17 integral part of the treatment process for wastewater
18 facilities.
19 (g) "Local government unit" means a county,
20 municipality, township, municipal or county sewerage or
21 utility authority, sanitary district, public water district,
22 improvement authority or any other political subdivision
23 whose primary purpose is to construct, operate and maintain
24 wastewater treatment facilities or public water supply
25 facilities or both.
26 (h) "Privately owned community water system" means:
27 (1) an investor-owned water utility, if under
28 Illinois Commerce Commission regulation and operating as
29 a separate and distinct water utility;
30 (2) a not-for-profit water corporation, if
31 operating specifically as a water utility; and
32 (3) a mutually owned or cooperatively owned
33 community water system, if operating as a separate water
34 utility.
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1 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
2 (415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)
3 Sec. 19.3. Water Revolving Fund.
4 (a) There is hereby created within the State Treasury a
5 Water Revolving Fund, consisting of 3 interest-bearing
6 special programs to be known as the Water Pollution Control
7 Loan Program, the Public Water Supply Loan Program, and the
8 Loan Support Program, which shall be used and administered by
9 the Agency.
10 (b) The Water Pollution Control Loan Program shall be
11 used and administered by the Agency to provide assistance to
12 local government units 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
17 interest rates to any eligible local government unit to
18 finance the construction of wastewater treatments works;
19 (3) to make direct loans at or below market
20 interest rates to any eligible local government unit to
21 buy or refinance debt obligations for treatment works
22 incurred after March 7, 1985;
23 (4) to guarantee or purchase insurance for local
24 obligations where such action would improve credit market
25 access or reduce interest rates;
26 (5) as a source of revenue or security for the
27 payment of principal and interest on revenue or general
28 obligation bonds issued by the State, if the proceeds of
29 such bonds will be deposited in the Fund;
30 (6) to finance the reasonable costs incurred by the
31 Agency in the administration of the Fund; and
32 (7) to transfer funds to the Public Water Supply
33 Loan Program.
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1 (c) The Loan Support Program shall be used and
2 administered by the Agency for the following purposes:
3 (1) to accept and retain funds from grant awards
4 and appropriations;
5 (2) to finance the reasonable costs incurred by the
6 Agency in the administration of the Fund, including
7 activities under Title III of this Act, including the
8 administration of the State construction grant program;
9 (3) to transfer funds to the Water Pollution
10 Control Loan Program and the Public Water Supply Loan
11 Program;
12 (4) to accept and retain a portion of the loan
13 repayments;
14 (5) to finance the development of the low interest
15 loan program for public water supply projects;
16 (6) to finance the reasonable costs incurred by the
17 Agency to provide technical assistance for public water
18 supplies; and
19 (7) to finance the reasonable costs incurred by the
20 Agency for public water system supervision programs, to
21 administer or provide for technical assistance through
22 source water protection programs, to develop and
23 implement a capacity development strategy, to delineate
24 and assess source water protection areas, and for an
25 operator certification program in accordance with Section
26 1452 of the federal Safe Drinking Water Act.
27 (d) The Public Water Supply Loan Program shall be used
28 and administered by the Agency to provide assistance to local
29 government units and privately owned community water systems
30 for public water supplies for the following public purposes:
31 (1) to accept and retain funds from grant awards,
32 appropriations, transfers, and payments of interest and
33 principal;
34 (2) to make direct loans at or below market
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1 interest rates to any eligible local government unit to
2 finance the construction of public water supplies;
3 (3) to buy or refinance the debt obligation of a
4 local government unit for costs incurred on or after the
5 effective date of this amendatory Act of 1997;
6 (4) to guarantee local obligations where such
7 action would improve credit market access or reduce
8 interest rates;
9 (5) as a source of revenue or security for the
10 payment of principal and interest on revenue or general
11 obligation bonds issued by the State, if the proceeds of
12 such bonds will be deposited into the Fund; and
13 (6) to transfer funds to the Water Pollution
14 Control Loan Program.
15 (e) The Agency is designated as the administering
16 agency of the Fund. The Agency shall submit to the Regional
17 Administrator of the United States Environmental Protection
18 Agency an intended use plan which outlines the proposed use
19 of funds available to the State. The Agency shall take all
20 actions necessary to secure to the State the benefits of the
21 federal Water Pollution Control Act and the federal Safe
22 Drinking Water Act, as now or hereafter amended.
23 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
24 (415 ILCS 5/19.5) (from Ch. 111 1/2, par. 1019.5)
25 Sec. 19.5. Loans; repayment.
26 (a) The Agency shall have the authority to make loans
27 for a public purpose to local government units and privately
28 owned community water systems for the construction of
29 treatment works and public water supplies pursuant to the
30 regulations promulgated under Section 19.4.
31 (b) Loans made from the Fund shall provide for:
32 (1) a schedule of disbursement of proceeds;
33 (2) a fixed rate that includes interest and loan
HB1893 Engrossed -7- LRB9104708ACtm
1 support based upon priority, but the loan support rate
2 shall not exceed one-half of the fixed rate established
3 for each loan;
4 (3) a schedule of repayment;
5 (4) initiation of principal repayments within one
6 year after the project is operational; and
7 (5) a confession of judgment upon default.
8 (c) The Agency may amend existing loans to include a
9 loan support rate only if the overall cost to the loan
10 recipient is not increased.
11 (d) A local government unit or privately owned community
12 water system shall secure the payment of its obligations to
13 the Fund by a dedicated source of repayment, including
14 revenues derived from the imposition of rates, fees and
15 charges. In the event of a delinquency as to payments to the
16 Fund, the local government unit or privately owned community
17 water system shall revise its rates, fees and charges to meet
18 its obligations.
19 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.