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91_HB1893enr
HB1893 Enrolled LRB9104708ACtm
1 AN ACT to amend the Environmental Protection Act.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Environmental Protection Act is amended
5 by changing Sections 19.1, 19.2, 19.3, 19.4, 19.5, 19.6, and
6 19.8 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 through the
17 Water Pollution Control Loan Program;
18 (c) that local government units and privately owned
19 community water supplies require assistance in financing the
20 construction of their public water supplies to comply with
21 State and federal drinking water laws and regulations;
22 (d) that the federal Safe Drinking Water Act ("SDWA"),
23 P.L. 93-532, as now or hereafter amended, provides an
24 important source of capitalization grant awards to the State
25 to provide assistance to local government units and privately
26 owned community water supplies through the Public Water
27 Supply Loan Program; and
28 (e) that violations of State and federal drinking water
29 standards threaten the public interest, safety, and welfare,
30 which demands that the Illinois Environmental Protection
31 Agency expeditiously adopt emergency rules to administer the
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1 Public Water Supply Loan Program; and.
2 (f) that the General Assembly agrees with the
3 conclusions and recommendations of the "Report to the
4 Illinois General Assembly on the Issue of Expanding Public
5 Water Supply Loan Eligibility to Privately Owned Community
6 Water Supplies", dated August 1998, including the stated
7 access to the Public Water Supply Loan Program by the
8 privately owned public water supplies so that the long term
9 integrity and viability of the corpus of the Fund will be
10 assured.
11 (Source: P.A. 90-121, eff. 7-17-97.)
12 (415 ILCS 5/19.2) (from Ch. 111 1/2, par. 1019.2)
13 Sec. 19.2. As used in this Title, unless the context
14 clearly requires otherwise:
15 (a) "Agency" means the Illinois Environmental Protection
16 Agency.
17 (b) "Fund" means the Water Revolving Fund created
18 pursuant to this Title, consisting of the Water Pollution
19 Control Loan Program, the Public Water Supply Loan Program,
20 and the Loan Support Program.
21 (c) "Loan" means a loan made from the Water Pollution
22 Control Loan Program or the Public Water Supply Loan Program
23 to an eligible local government unit or a privately owned
24 community water supply as a result of a contractual agreement
25 between the Agency and such unit or privately owned community
26 water supply.
27 (d) "Construction" means any one or more of the
28 following which is undertaken for a public purpose:
29 preliminary planning to determine the feasibility of the
30 treatment works or public water supply, engineering,
31 architectural, legal, fiscal or economic investigations or
32 studies, surveys, designs, plans, working drawings,
33 specifications, procedures or other necessary actions,
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1 erection, building, acquisition, alteration, remodeling,
2 improvement or extension of treatment works or public water
3 supplies, or the inspection or supervision of any of the
4 foregoing items. "Construction" also includes implementation
5 of source water quality protection measures and establishment
6 and implementation of wellhead protection programs in
7 accordance with Section 1452(k)(1) of the federal Safe
8 Drinking Water Act.
9 (e) "Intended use plan" means a plan which includes a
10 description of the short and long term goals and objectives
11 of the Water Pollution Control Loan Program and the Public
12 Water Supply Loan Program, project categories, discharge
13 requirements, terms of financial assistance and the local
14 government units and privately owned community water supplies
15 communities to be served.
16 (f) "Treatment works" means any devices and systems
17 owned by a local government unit and used in the storage,
18 treatment, recycling, and reclamation of sewerage or
19 industrial wastes of a liquid nature, including intercepting
20 sewers, outfall sewers, sewage collection systems, pumping
21 power and other equipment, and appurtenances; extensions,
22 improvements, remodeling, additions, and alterations thereof;
23 elements essential to provide a reliable recycled supply,
24 such as standby treatment units and clear well facilities;
25 and any works, including site acquisition of the land that
26 will be an integral part of the treatment process for
27 wastewater facilities.
28 (g) "Local government unit" means a county,
29 municipality, township, municipal or county sewerage or
30 utility authority, sanitary district, public water district,
31 improvement authority or any other political subdivision
32 whose primary purpose is to construct, operate and maintain
33 wastewater treatment facilities or public water supply
34 facilities or both.
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1 (h) "Privately owned community water supply" means:
2 (1) an investor-owned water utility, if under
3 Illinois Commerce Commission regulation and operating as
4 a separate and distinct water utility;
5 (2) a not-for-profit water corporation, if
6 operating specifically as a water utility; and
7 (3) a mutually owned or cooperatively owned
8 community water system, if operating as a separate water
9 utility.
10 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
11 (415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)
12 Sec. 19.3. Water Revolving Fund.
13 (a) There is hereby created within the State Treasury a
14 Water Revolving Fund, consisting of 3 interest-bearing
15 special programs to be known as the Water Pollution Control
16 Loan Program, the Public Water Supply Loan Program, and the
17 Loan Support Program, which shall be used and administered by
18 the Agency.
19 (b) The Water Pollution Control Loan Program shall be
20 used and administered by the Agency to provide assistance to
21 local government units for the following public purposes:
22 (1) to accept and retain funds from grant awards,
23 appropriations, transfers, and payments of interest and
24 principal;
25 (2) to make direct loans at or below market
26 interest rates to any eligible local government unit to
27 finance the construction of wastewater treatments works;
28 (3) to make direct loans at or below market
29 interest rates to any eligible local government unit to
30 buy or refinance debt obligations for treatment works
31 incurred after March 7, 1985;
32 (4) to guarantee or purchase insurance for local
33 obligations where such action would improve credit market
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1 access or reduce interest rates;
2 (5) as a source of revenue or security for the
3 payment of principal and interest on revenue or general
4 obligation bonds issued by the State, if the proceeds of
5 such bonds will be deposited in the Fund;
6 (6) to finance the reasonable costs incurred by the
7 Agency in the administration of the Fund; and
8 (7) (blank) to transfer funds to the Public Water
9 Supply Loan Program.
10 (c) The Loan Support Program shall be used and
11 administered by the Agency for the following purposes:
12 (1) to accept and retain funds from grant awards
13 and appropriations;
14 (2) to finance the reasonable costs incurred by the
15 Agency in the administration of the Fund, including
16 activities under Title III of this Act, including the
17 administration of the State construction grant program;
18 (3) to transfer funds to the Water Pollution
19 Control Loan Program and the Public Water Supply Loan
20 Program;
21 (4) to accept and retain a portion of the loan
22 repayments;
23 (5) to finance the development of the low interest
24 loan program for public water supply projects;
25 (6) to finance the reasonable costs incurred by the
26 Agency to provide technical assistance for public water
27 supplies; and
28 (7) to finance the reasonable costs incurred by the
29 Agency for public water system supervision programs, to
30 administer or provide for technical assistance through
31 source water protection programs, to develop and
32 implement a capacity development strategy, to delineate
33 and assess source water protection areas, and for an
34 operator certification program in accordance with Section
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1 1452 of the federal Safe Drinking Water Act.
2 (d) The Public Water Supply Loan Program shall be used
3 and administered by the Agency to provide assistance to local
4 government units and privately owned community water supplies
5 for public water supplies for the following public purposes:
6 (1) to accept and retain funds from grant awards,
7 appropriations, transfers, and payments of interest and
8 principal;
9 (2) to make direct loans at or below market
10 interest rates to any eligible local government unit or
11 to any eligible privately owned community water supply to
12 finance the construction of public water supplies;
13 (3) to buy or refinance the debt obligation of a
14 local government unit for costs incurred on or after July
15 17, 1997 the effective date of this amendatory Act of
16 1997;
17 (4) to guarantee local obligations where such
18 action would improve credit market access or reduce
19 interest rates;
20 (5) as a source of revenue or security for the
21 payment of principal and interest on revenue or general
22 obligation bonds issued by the State, if the proceeds of
23 such bonds will be deposited into the Fund; and
24 (6) (blank) to transfer funds to the Water
25 Pollution Control Loan Program.
26 (e) The Agency is designated as the administering
27 agency of the Fund. The Agency shall submit to the Regional
28 Administrator of the United States Environmental Protection
29 Agency an intended use plan which outlines the proposed use
30 of funds available to the State. The Agency shall take all
31 actions necessary to secure to the State the benefits of the
32 federal Water Pollution Control Act and the federal Safe
33 Drinking Water Act, as now or hereafter amended.
34 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
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1 (415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)
2 Sec. 19.4. Regulations; priorities. The Agency shall
3 have the authority to promulgate regulations to set forth
4 procedures and criteria concerning loan applications,
5 submittal of information to the Agency to ascertain the
6 credit worthiness of the loan applicant, types of security
7 required for the loan including liens, mortgages, and other
8 kinds of security interests, types of collateral as necessary
9 that can be pledged to meet or exceed the loan amount,
10 special loan terms for securing repayment of the loan, the
11 staged access to the fund by privately owned community water
12 supplies, assurance of payment, interest rates, loan support
13 rates, impact on user charges, eligibility of proposed
14 construction, priority of needs, special loan terms for
15 disadvantaged communities, and maximum limits on annual
16 distributions of funds to applicants or groups of applicants.
17 The Agency shall develop and maintain a priority list of loan
18 applicants as categorized by need. Priority in making loans
19 from the Water Pollution Control Loan Program must first be
20 given to local government units which need to make capital
21 improvements to achieve compliance with National Pollutant
22 Discharge Elimination System permit requirements pursuant to
23 the federal Water Quality Act of 1987 and this Act. Priority
24 in making loans from the Public Water Supply Loan Program
25 must first be given to local government units and privately
26 owned community water supplies that need to make capital
27 improvements to protect human health and to achieve
28 compliance with the State and federal primary drinking water
29 standards adopted pursuant to this Act and the federal Safe
30 Drinking Water Act, as now and hereafter amended.
31 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
32 (415 ILCS 5/19.5) (from Ch. 111 1/2, par. 1019.5)
33 Sec. 19.5. Loans; repayment.
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1 (a) The Agency shall have the authority to make loans
2 for a public purpose to local government units for the
3 construction of treatment works and to local government units
4 and privately owned community public water supplies for the
5 construction of public water supplies pursuant to the
6 regulations promulgated under Section 19.4.
7 (b) Loans made from the Fund shall provide for:
8 (1) a schedule of disbursement of proceeds;
9 (2) a fixed rate that includes interest and loan
10 support based upon priority, but the loan support rate
11 shall not exceed one-half of the fixed rate established
12 for each loan;
13 (3) a schedule of repayment;
14 (4) initiation of principal repayments within one
15 year after the project is operational; and
16 (5) a confession of judgment upon default.
17 (c) The Agency may amend existing loans to include a
18 loan support rate only if the overall cost to the loan
19 recipient is not increased.
20 (d) A local government unit or privately owned community
21 water supply shall secure the payment of its obligations to
22 the Fund by a dedicated source of repayment, including
23 revenues derived from the imposition of rates, fees and
24 charges and by other types of security or collateral or both
25 required to secure the loan pursuant to the regulations
26 promulgated under Section 19.4. In the event of a
27 delinquency as to payments to the Fund, the local government
28 unit or privately owned community water supply shall revise
29 its rates, fees and charges to meet its obligations.
30 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
31 (415 ILCS 5/19.6) (from Ch. 111 1/2, par. 1019.6)
32 Sec. 19.6. Delinquent loan repayment.
33 (a) In the event that a timely payment is not made by a
HB1893 Enrolled -9- LRB9104708ACtm
1 local government unit or the privately owned community water
2 supply according to the loan schedule of repayment, the local
3 government unit or privately owned community water supply
4 shall notify the Agency in writing within 15 days after the
5 payment due date. The notification shall include a statement
6 of the reasons the payment was not timely tendered, the
7 circumstances under which the late payments will be
8 satisfied, and binding commitments to assure future payments.
9 After receipt of this notification, the Agency shall confirm
10 in writing the acceptability of the plan or take action in
11 accordance with subsection (b) of this Section.
12 (b) In the event that a local government unit or
13 privately owned community water supply fails to comply with
14 subsection (a) of this Section, the Agency shall promptly
15 issue a notice of delinquency to the local government unit or
16 privately owned community water supply which shall require a
17 written response within 15 30 days. The notice of
18 delinquency shall require that the local government unit or
19 privately owned community water supply revise its rates, fees
20 and charges to meet its obligations pursuant to subsection
21 (d) of Section 19.5 or take other specified actions as may be
22 appropriate to remedy the delinquency and to assure future
23 payments.
24 (c) In the event that the local government unit or
25 privately owned community water supply fails to timely or
26 adequately respond to a notice of delinquency, or fails to
27 meet its obligations made pursuant to subsections (a) and (b)
28 of this Section, the Agency shall pursue the collection of
29 the amounts past due, the outstanding loan balance and the
30 costs thereby incurred, either pursuant to the Illinois State
31 Collection Act of 1986 or by any other reasonable means as
32 may be provided by law, including the taking of title by
33 foreclosure or otherwise to any project or other property
34 pledged, mortgaged, encumbered, or otherwise available as
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1 security or collateral.
2 (Source: P.A. 90-121, eff. 7-17-97.)
3 (415 ILCS 5/19.8) (from Ch. 111 1/2, par. 1019.8)
4 Sec. 19.8. Advisory committees; reports. (a) The
5 Director of the Agency shall appoint committees to advise the
6 Agency concerning the financial structure of the Programs.
7 The committees shall consist of representatives from
8 appropriate State agencies, the financial community,
9 engineering societies and other interested parties. The
10 committees shall meet periodically and members shall be
11 reimbursed for their ordinary and necessary expenses incurred
12 in the performance of their committee duties.
13 (b) The Agency shall report to the General Assembly by
14 June 30, 1998 regarding the feasibility of providing drinking
15 water loans to not-for-profit community water supplies that
16 serve units of local government and to investor-owned public
17 utilities. The report shall include a detailed discussion of
18 all relevant factors and shall include participation from
19 representatives of the affected entities.
20 (Source: P.A. 90-121, eff. 7-17-97.)
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.