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91_SB0145eng
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1 AN ACT in relation to environmental protection.
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 re-enacting Title IV-A and adding Section 19.10 as
6 follows:
7 (415 ILCS 5/Title IV-A heading)
8 TITLE IV-A: WATER POLLUTION CONTROL
9 AND PUBLIC WATER SUPPLIES
10 (415 ILCS 5/19.1) (from Ch. 111 1/2, par. 1019.1)
11 Sec. 19.1. Legislative findings. The General Assembly
12 finds:
13 (a) that local government units require assistance in
14 financing the construction of wastewater treatment works in
15 order to comply with the State's program of environmental
16 protection and federally mandated requirements;
17 (b) that the federal Water Quality Act of 1987 provides
18 an important source of grant awards to the State for
19 providing assistance to local government units through the
20 Water Pollution Control Loan Program;
21 (c) that local government units require assistance in
22 financing the construction of their public water supplies to
23 comply with State and federal drinking water laws and
24 regulations;
25 (d) that the federal Safe Drinking Water Act ("SDWA"),
26 P.L. 93-532, as now or hereafter amended, provides an
27 important source of capitalization grant awards to the State
28 to provide assistance to local government units through the
29 Public Water Supply Loan Program; and
30 (e) that violations of State and federal drinking water
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1 standards threaten the public interest, safety, and welfare,
2 which demands that the Illinois Environmental Protection
3 Agency expeditiously adopt emergency rules to administer the
4 Public Water Supply Loan Program.
5 (Source: P.A. 90-121, eff. 7-17-97.)
6 (415 ILCS 5/19.2) (from Ch. 111 1/2, par. 1019.2)
7 Sec. 19.2. As used in this Title, unless the context
8 clearly requires otherwise:
9 (a) "Agency" means the Illinois Environmental Protection
10 Agency.
11 (b) "Fund" means the Water Revolving Fund created
12 pursuant to this Title, consisting of the Water Pollution
13 Control Loan Program, the Public Water Supply Loan Program,
14 and the Loan Support Program.
15 (c) "Loan" means a loan made from the Water Pollution
16 Control Loan Program or the Public Water Supply Loan Program
17 to an eligible local government unit as a result of a
18 contractual agreement between the Agency and such unit.
19 (d) "Construction" means any one or more of the
20 following which is undertaken for a public purpose:
21 preliminary planning to determine the feasibility of the
22 treatment works or public water supply, engineering,
23 architectural, legal, fiscal or economic investigations or
24 studies, surveys, designs, plans, working drawings,
25 specifications, procedures or other necessary actions,
26 erection, building, acquisition, alteration, remodeling,
27 improvement or extension of treatment works or public water
28 supplies, or the inspection or supervision of any of the
29 foregoing items. "Construction" also includes implementation
30 of source water quality protection measures and establishment
31 and implementation of wellhead protection programs in
32 accordance with Section 1452(k)(1) of the federal Safe
33 Drinking Water Act.
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1 (e) "Intended use plan" means a plan which includes a
2 description of the short and long term goals and objectives
3 of the Water Pollution Control Loan Program and the Public
4 Water Supply Loan Program, project categories, discharge
5 requirements, terms of financial assistance and the
6 communities to be served.
7 (f) "Treatment works" means any devices and systems
8 owned by a local government unit and used in the storage,
9 treatment, recycling, and reclamation of sewerage or
10 industrial wastes of a liquid nature, including intercepting
11 sewers, outfall sewers, sewage collection systems, pumping
12 power and other equipment, and appurtenances; extensions,
13 improvements, remodeling, additions, and alterations thereof;
14 elements essential to provide a reliable recycled supply,
15 such as standby treatment units and clear well facilities;
16 and any works, including site acquisition of the land that
17 will be an integral part of the treatment process for
18 wastewater 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 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
27 (415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)
28 Sec. 19.3. Water Revolving Fund.
29 (a) There is hereby created within the State Treasury a
30 Water Revolving Fund, consisting of 3 interest-bearing
31 special programs to be known as the Water Pollution Control
32 Loan Program, the Public Water Supply Loan Program, and the
33 Loan Support Program, which shall be used and administered by
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1 the Agency.
2 (b) The Water Pollution Control Loan Program shall be
3 used and administered by the Agency to provide assistance to
4 local government units for the following public purposes:
5 (1) to accept and retain funds from grant awards,
6 appropriations, transfers, and payments of interest and
7 principal;
8 (2) to make direct loans at or below market
9 interest rates to any eligible local government unit to
10 finance the construction of wastewater treatments works;
11 (3) to make direct loans at or below market
12 interest rates to any eligible local government unit to
13 buy or refinance debt obligations for treatment works
14 incurred after March 7, 1985;
15 (4) to guarantee or purchase insurance for local
16 obligations where such action would improve credit market
17 access or reduce interest rates;
18 (5) as a source of revenue or security for the
19 payment of principal and interest on revenue or general
20 obligation bonds issued by the State, if the proceeds of
21 such bonds will be deposited in the Fund;
22 (6) to finance the reasonable costs incurred by the
23 Agency in the administration of the Fund; and
24 (7) to transfer funds to the Public Water Supply
25 Loan Program.
26 (c) The Loan Support Program shall be used and
27 administered by the Agency for the following purposes:
28 (1) to accept and retain funds from grant awards
29 and appropriations;
30 (2) to finance the reasonable costs incurred by the
31 Agency in the administration of the Fund, including
32 activities under Title III of this Act, including the
33 administration of the State construction grant program;
34 (3) to transfer funds to the Water Pollution
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1 Control Loan Program and the Public Water Supply Loan
2 Program;
3 (4) to accept and retain a portion of the loan
4 repayments;
5 (5) to finance the development of the low interest
6 loan program for public water supply projects;
7 (6) to finance the reasonable costs incurred by the
8 Agency to provide technical assistance for public water
9 supplies; and
10 (7) to finance the reasonable costs incurred by the
11 Agency for public water system supervision programs, to
12 administer or provide for technical assistance through
13 source water protection programs, to develop and
14 implement a capacity development strategy, to delineate
15 and assess source water protection areas, and for an
16 operator certification program in accordance with Section
17 1452 of the federal Safe Drinking Water Act.
18 (d) The Public Water Supply Loan Program shall be used
19 and administered by the Agency to provide assistance to local
20 government units for public water supplies for the following
21 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 public water supplies;
28 (3) to buy or refinance the debt obligation of a
29 local government unit for costs incurred on or after the
30 effective date of this amendatory Act of 1997;
31 (4) to guarantee local obligations where such
32 action would improve credit market access or reduce
33 interest rates;
34 (5) as a source of revenue or security for the
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1 payment of principal and interest on revenue or general
2 obligation bonds issued by the State, if the proceeds of
3 such bonds will be deposited into the Fund; and
4 (6) to transfer funds to the Water Pollution
5 Control Loan Program.
6 (e) The Agency is designated as the administering
7 agency of the Fund. The Agency shall submit to the Regional
8 Administrator of the United States Environmental Protection
9 Agency an intended use plan which outlines the proposed use
10 of funds available to the State. The Agency shall take all
11 actions necessary to secure to the State the benefits of the
12 federal Water Pollution Control Act and the federal Safe
13 Drinking Water Act, as now or hereafter amended.
14 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
15 (415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)
16 Sec. 19.4. The Agency shall have the authority to
17 promulgate regulations to set forth procedures and criteria
18 concerning loan applications, assurance of payment, interest
19 rates, loan support rates, impact on user charges,
20 eligibility of proposed construction, priority of needs,
21 special loan terms for disadvantaged communities, and maximum
22 limits on annual distributions of funds to applicants or
23 groups of applicants. The Agency shall develop and maintain
24 a priority list of loan applicants as categorized by need.
25 Priority in making loans from the Water Pollution Control
26 Loan Program must first be given to local government units
27 which need to make capital improvements to achieve compliance
28 with National Pollutant Discharge Elimination System permit
29 requirements pursuant to the federal Water Quality Act of
30 1987 and this Act. Priority in making loans from the Public
31 Water Supply Loan Program must first be given to local
32 government units that need to make capital improvements to
33 protect human health and to achieve compliance with the State
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1 and federal primary drinking water standards adopted pursuant
2 to this Act and the federal Safe Drinking Water Act, as now
3 and hereafter amended.
4 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
5 (415 ILCS 5/19.5) (from Ch. 111 1/2, par. 1019.5)
6 Sec. 19.5. Loans; repayment.
7 (a) The Agency shall have the authority to make loans
8 for a public purpose to local government units for the
9 construction of treatment works and public water supplies
10 pursuant to the regulations promulgated under Section 19.4.
11 (b) Loans made from the Fund shall provide for:
12 (1) a schedule of disbursement of proceeds;
13 (2) a fixed rate that includes interest and loan
14 support based upon priority, but the loan support rate
15 shall not exceed one-half of the fixed rate established
16 for each loan;
17 (3) a schedule of repayment;
18 (4) initiation of principal repayments within one
19 year after the project is operational; and
20 (5) a confession of judgment upon default.
21 (c) The Agency may amend existing loans to include a
22 loan support rate only if the overall cost to the loan
23 recipient is not increased.
24 (d) A local government unit shall secure the payment of
25 its obligations to the Fund by a dedicated source of
26 repayment, including revenues derived from the imposition of
27 rates, fees and charges. In the event of a delinquency as to
28 payments to the Fund, the local government unit 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.
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1 (a) In the event that a timely payment is not made by a
2 local government unit according to the loan schedule of
3 repayment, the local government unit shall notify the Agency
4 in writing within 15 days after the payment due date. The
5 notification shall include a statement of the reasons the
6 payment was not timely tendered, the circumstances under
7 which the late payments will be satisfied, and binding
8 commitments to assure future payments. After receipt of this
9 notification, the Agency shall confirm in writing the
10 acceptability of the plan or take action in accordance with
11 subsection (b) of this Section.
12 (b) In the event that a local government unit fails to
13 comply with subsection (a) of this Section, the Agency shall
14 promptly issue a notice of delinquency to the local
15 government unit which shall require a written response within
16 30 days. The notice of delinquency shall require that the
17 local government unit revise its rates, fees and charges to
18 meet its obligations pursuant to subsection (d) of Section
19 19.5 or take other specified actions as may be appropriate to
20 remedy the delinquency and to assure future payments.
21 (c) In the event that the local government unit fails to
22 timely or adequately respond to a notice of delinquency, or
23 fails to meet its obligations made pursuant to subsections
24 (a) and (b) of this Section, the Agency shall pursue the
25 collection of the amounts past due, the outstanding loan
26 balance and the costs thereby incurred, either pursuant to
27 the Illinois State Collection Act of 1986 or by any other
28 reasonable means as may be provided by law.
29 (Source: P.A. 90-121, eff. 7-17-97.)
30 (415 ILCS 5/19.8) (from Ch. 111 1/2, par. 1019.8)
31 Sec. 19.8. Advisory committees; reports.
32 (a) The Director of the Agency shall appoint committees
33 to advise the Agency concerning the financial structure of
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1 the Programs. The committees shall consist of
2 representatives from appropriate State agencies, the
3 financial community, engineering societies and other
4 interested parties. The committees shall meet periodically
5 and members shall be reimbursed for their ordinary and
6 necessary expenses incurred in the performance of their
7 committee duties.
8 (b) The Agency shall report to the General Assembly by
9 June 30, 1998 regarding the feasibility of providing drinking
10 water loans to not-for-profit community water supplies that
11 serve units of local government and to investor-owned public
12 utilities. The report shall include a detailed discussion of
13 all relevant factors and shall include participation from
14 representatives of the affected entities.
15 (Source: P.A. 90-121, eff. 7-17-97.)
16 (415 ILCS 5/19.9) (from Ch. 111 1/2, par. 1019.9)
17 Sec. 19.9. This Title shall be liberally construed so as
18 to effect its purpose.
19 (Source: P.A. 86-820.)
20 (415 ILCS 5/19.10 new)
21 Sec. 19.10. Re-enactment of Title IV-A; findings;
22 purpose; validation.
23 (a) The General Assembly finds and declares that:
24 (1) Title IV-A (consisting of Sections 19.1 through
25 19.9) was first added to the Environmental Protection Act
26 by Article III of Public Act 85-1135, effective September
27 1, 1988. In its original form, Title IV-A created the
28 Water Pollution Control Revolving Fund and authorized the
29 Illinois Environmental Protection Agency to establish a
30 program for providing units of local government with
31 low-cost loans to be used to construct wastewater
32 treatment works. The loans are paid from the Revolving
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1 Fund, which consists primarily of a combination of
2 federal grant money, State matching money, and money that
3 has been repaid on past loans.
4 (2) In 1995, Title IV-A was amended by Public Act
5 89-27, effective January 1, 1997, which created the Loan
6 Support Program and made other changes. The Loan Support
7 Program provides financing for certain administrative
8 costs of the Agency. It specifically includes the costs
9 of developing a loan program for public water supply
10 projects.
11 (3) Title IV-A was amended by Public Act 90-121,
12 effective July 17, 1997, which changed the name of the
13 Water Pollution Control Revolving Fund to the Water
14 Revolving Fund and created the Public Water Supply Loan
15 Program. Under this program, the Agency is authorized to
16 make low-interest loans to units of local government for
17 the construction of public water supply facilities.
18 (4) Title IV-A has also been amended by Public Act
19 86-671, effective September 1, 1989; P.A. 86-820,
20 effective September 7, 1989; and P.A. 90-372, effective
21 July 1, 1998.
22 (5) Article III, Section 6, of Public Act 85-1135
23 amended the Build Illinois Bond Act. Among other changes
24 to that Act, P.A. 85-1135 authorized the deposit of up to
25 $70,000,000 into the Water Pollution Control Revolving
26 Fund to be used for the Title IV-A loan program.
27 (6) Article III of Public Act 85-1135 also added
28 Section 5.237 to the State Finance Act. This Section
29 added the Water Pollution Control Revolving Fund to the
30 list of special funds in the State Treasury. The Section
31 was renumbered as Section 5.238 by a revisory bill,
32 Public Act 85-1440, effective February 1, 1989. Although
33 the name of the Fund was changed by Public Act 90-121,
34 that Act did not make the corresponding change in Section
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1 5.238.
2 (7) Over the 10 years that it has administered
3 Title IV-A programs, the Agency has entered into loan
4 agreements with hundreds of units of local government and
5 provided hundreds of millions of dollars of financial
6 assistance for water pollution control projects. There
7 are currently many active Title IV-A loans in the
8 disbursement phase and many more that are in the process
9 of being repaid. The Agency continues to receive many
10 new applications each year.
11 (8) Public Act 85-1135, which created Title IV-A,
12 also contained provisions relating to tax reform and
13 State bonds.
14 (9) On August 26, 1998, the Cook County Circuit
15 Court entered an order in the case of Oak Park Arms
16 Associates v. Whitley (No. 92 L 51045), in which it found
17 that Public Act 85-1135 violates the single subject
18 clause of the Illinois Constitution (Article IV, Section
19 8(d)). As of the time this amendatory Act of 1999 was
20 prepared, the order declaring P.A. 85-1135 invalid has
21 been vacated but the case is subject to appeal.
22 (10) The projects funded under Title IV-A affect
23 the vital areas of wastewater and sewage disposal and
24 drinking water supply and are important for the continued
25 health, safety, and welfare of the people of this State.
26 (b) It is the purpose of this amendatory Act of 1999 to
27 prevent or minimize any disruption to the programs
28 administered under Title IV-A that may result from challenges
29 to the constitutional validity of Public Act 85-1135.
30 (c) This amendatory Act of 1999 re-enacts Title IV-A of
31 the Environmental Protection Act as it has been amended.
32 This re-enactment is intended to ensure the continuation of
33 the programs administered under that Title and, if necessary,
34 to recreate them. The material in Sections 19.1 through 19.9
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1 is shown as existing text (i.e., without underscoring)
2 because, as of the time this amendatory Act of 1999 was
3 prepared, the order declaring P.A. 85-1135 invalid has been
4 vacated. Section 19.7 has been omitted because it was
5 repealed by Public Act 90-372, effective July 1, 1998.
6 Section 4.1 is added to the Build Illinois Bond Act to
7 re-authorize the deposit of funds into the Water Pollution
8 Control Revolving Fund.
9 Section 5.238 of the State Finance Act is both re-enacted
10 and amended to reflect the current name of the Water
11 Revolving Fund.
12 (d) The re-enactment of Title IV-A of the Environmental
13 Protection Act by this amendatory Act of 1999 is intended to
14 remove any question as to the validity or content of Title
15 IV-A; it is not intended to supersede any other Public Act
16 that amends the text of a Section as set forth in this
17 amendatory Act. This re-enactment is not intended, and shall
18 not be construed, to imply that Public Act 85-1135 is invalid
19 or to limit or impair any legal argument concerning (1)
20 whether the Agency has express or implied authority to
21 administer loan programs in the absence of Title IV-A, or (2)
22 whether the provisions of Title IV-A were substantially
23 re-enacted by P.A. 89-27 or 90-121.
24 (e) All otherwise lawful actions taken before the
25 effective date of this amendatory Act of 1999 by any
26 employee, officer, agency, or unit of State or local
27 government or by any other person or entity, acting in
28 reliance on or pursuant to Title IV-A of the Environmental
29 Protection Act, as set forth in Public Act 85-1135 or as
30 subsequently amended, are hereby validated.
31 (f) All otherwise lawful obligations arising out of loan
32 agreements entered into before the effective date of this
33 amendatory Act of 1999 by the State or by any employee,
34 officer, agency, or unit of State or local government, acting
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1 in reliance on or pursuant to Title IV-A of the Environmental
2 Protection Act, as set forth in Public Act 85-1135 or as
3 subsequently amended, are hereby validated and affirmed.
4 (g) All otherwise lawful deposits into the Water
5 Pollution Control Revolving Fund made before the effective
6 date of this amendatory Act of 1999 in accordance with
7 Section 4 of the Build Illinois Bond Act, as set forth in
8 Public Act 85-1135 or as subsequently amended, and the use of
9 those deposits for the purposes of Title IV-A of the
10 Environmental Protection Act, are hereby validated.
11 (h) This amendatory Act of 1999 applies, without
12 limitation, to actions pending on or after the effective date
13 of this amendatory Act.
14 Section 10. The State Finance Act is amended by
15 re-enacting and changing Section 5.238 as follows:
16 (30 ILCS 105/5.238) (from Ch. 127, par. 141.238)
17 Sec. 5.238. The Water Pollution Control Revolving Fund.
18 (Source: P.A. 85-1440.)
19 Section 15. The Build Illinois Bond Act is amended by
20 adding Section 4.1 as follows:
21 (30 ILCS 425/4.1 new)
22 Sec. 4.1. Re-authorization of deposits into the Water
23 Pollution Control Revolving Fund. The making of deposits
24 into the Water Pollution Control Revolving Fund (now known as
25 the Water Revolving Fund) to provide assistance in accordance
26 with the provisions of Title IV-A of the Environmental
27 Protection Act, in an aggregate amount not to exceed
28 $70,000,000, which was originally authorized in Section 4 of
29 this Act by Public Act 85-1135, is hereby re-authorized.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.