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Public Act 91-0052
SB145 Enrolled LRB9100649EGfg
AN ACT in relation to environmental protection.
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 re-enacting Title IV-A and adding Section 19.10 as
follows:
(415 ILCS 5/Title IV-A heading)
TITLE IV-A: WATER POLLUTION CONTROL
AND PUBLIC WATER SUPPLIES
(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 wastewater treatment works 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 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. 93-532, as now or hereafter amended, provides an
important source of capitalization grant awards to the State
to provide assistance to local government units through the
Public Water Supply Loan Program; and
(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.
(Source: P.A. 90-121, eff. 7-17-97.)
(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 local government unit as a result of a
contractual agreement between the Agency and such unit.
(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
communities to be served.
(f) "Treatment works" means 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.
(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 or public water supply
facilities or both.
(Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
(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 to
local government units 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 to any eligible local government unit to
finance the construction of wastewater treatments works;
(3) 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 after March 7, 1985;
(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, 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.
(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 program for 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 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 to any eligible local government unit to
finance the construction of public water supplies;
(3) to buy or refinance the debt obligation of a
local government unit for costs incurred on or after the
effective date of this amendatory Act of 1997;
(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, 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.
(Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
(415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)
Sec. 19.4. The Agency shall have the authority to
promulgate regulations to set forth procedures and criteria
concerning loan applications, assurance of payment, interest
rates, loan support rates, impact on user charges,
eligibility of proposed construction, priority of needs,
special loan terms for disadvantaged communities, and maximum
limits on annual distributions of funds to applicants or
groups of applicants. The Agency shall develop and maintain
a priority list of loan applicants as categorized by need.
Priority in making loans from the Water Pollution Control
Loan Program must first be given to local government units
which need to make capital improvements to achieve compliance
with National Pollutant Discharge Elimination System permit
requirements pursuant to the federal Water Quality Act of
1987 and this Act. Priority in making loans from the Public
Water Supply Loan Program must first be given to local
government units 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.
(Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
(415 ILCS 5/19.5) (from Ch. 111 1/2, par. 1019.5)
Sec. 19.5. Loans; repayment.
(a) The Agency shall have the authority to make loans
for a public purpose to local government units for the
construction of treatment works and public water supplies
pursuant to the regulations promulgated under Section 19.4.
(b) Loans made from the Fund shall provide for:
(1) a schedule of disbursement of proceeds;
(2) a fixed rate that includes interest and loan
support based upon priority, but the loan support rate
shall not exceed one-half of the fixed rate established
for each loan;
(3) a schedule of repayment;
(4) initiation of principal repayments within one
year after the project is operational; and
(5) a confession of judgment upon default.
(c) The Agency may amend existing loans to include a
loan support rate only if the overall cost to the loan
recipient is not increased.
(d) A local government unit shall secure the payment of
its obligations to the Fund by a dedicated source of
repayment, including revenues derived from the imposition of
rates, fees and charges. In the event of a delinquency as to
payments to the Fund, the local government unit shall revise
its rates, fees and charges to meet its obligations.
(Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
(415 ILCS 5/19.6) (from Ch. 111 1/2, par. 1019.6)
Sec. 19.6. Delinquent loan repayment.
(a) In the event that a timely payment is not made by a
local government unit according to the loan schedule of
repayment, the local government unit shall notify the Agency
in writing within 15 days after the payment due date. The
notification shall include a statement of the reasons the
payment was not timely tendered, the circumstances under
which the late payments will be satisfied, and binding
commitments to assure future payments. After receipt of this
notification, the Agency shall confirm in writing the
acceptability of the plan or take action in accordance with
subsection (b) of this Section.
(b) In the event that a local government unit fails to
comply with subsection (a) of this Section, the Agency shall
promptly issue a notice of delinquency to the local
government unit which shall require a written response within
30 days. The notice of delinquency shall require that the
local government unit revise its rates, fees and charges to
meet its obligations pursuant to subsection (d) of Section
19.5 or take other specified actions as may be appropriate to
remedy the delinquency and to assure future payments.
(c) In the event that the local government unit fails to
timely or adequately respond to a notice of delinquency, or
fails to meet its obligations made pursuant to subsections
(a) and (b) of this Section, the Agency shall pursue the
collection of the amounts past due, the outstanding loan
balance and the costs thereby incurred, either pursuant to
the Illinois State Collection Act of 1986 or by any other
reasonable means as may be provided by law.
(Source: P.A. 90-121, eff. 7-17-97.)
(415 ILCS 5/19.8) (from Ch. 111 1/2, par. 1019.8)
Sec. 19.8. Advisory committees; reports.
(a) The Director of the Agency shall appoint committees
to advise the Agency concerning the financial structure of
the Programs. The committees shall consist of
representatives from appropriate State agencies, the
financial community, engineering societies and other
interested parties. The committees shall meet periodically
and members shall be reimbursed for their ordinary and
necessary expenses incurred in the performance of their
committee duties.
(b) The Agency shall report to the General Assembly by
June 30, 1998 regarding the feasibility of providing drinking
water loans to not-for-profit community water supplies that
serve units of local government and to investor-owned public
utilities. The report shall include a detailed discussion of
all relevant factors and shall include participation from
representatives of the affected entities.
(Source: P.A. 90-121, eff. 7-17-97.)
(415 ILCS 5/19.9) (from Ch. 111 1/2, par. 1019.9)
Sec. 19.9. This Title shall be liberally construed so as
to effect its purpose.
(Source: P.A. 86-820.)
(415 ILCS 5/19.10 new)
Sec. 19.10. Re-enactment of Title IV-A; findings;
purpose; validation.
(a) The General Assembly finds and declares that:
(1) Title IV-A (consisting of Sections 19.1 through
19.9) was first added to the Environmental Protection Act
by Article III of Public Act 85-1135, effective September
1, 1988. In its original form, Title IV-A created the
Water Pollution Control Revolving Fund and authorized the
Illinois Environmental Protection Agency to establish a
program for providing units of local government with
low-cost loans to be used to construct wastewater
treatment works. The loans are paid from the Revolving
Fund, which consists primarily of a combination of
federal grant money, State matching money, and money that
has been repaid on past loans.
(2) In 1995, Title IV-A was amended by Public Act
89-27, effective January 1, 1997, which created the Loan
Support Program and made other changes. The Loan Support
Program provides financing for certain administrative
costs of the Agency. It specifically includes the costs
of developing a loan program for public water supply
projects.
(3) Title IV-A was amended by Public Act 90-121,
effective July 17, 1997, which changed the name of the
Water Pollution Control Revolving Fund to the Water
Revolving Fund and created the Public Water Supply Loan
Program. Under this program, the Agency is authorized to
make low-interest loans to units of local government for
the construction of public water supply facilities.
(4) Title IV-A has also been amended by Public Act
86-671, effective September 1, 1989; P.A. 86-820,
effective September 7, 1989; and P.A. 90-372, effective
July 1, 1998.
(5) Article III, Section 6, of Public Act 85-1135
amended the Build Illinois Bond Act. Among other changes
to that Act, P.A. 85-1135 authorized the deposit of up to
$70,000,000 into the Water Pollution Control Revolving
Fund to be used for the Title IV-A loan program.
(6) Article III of Public Act 85-1135 also added
Section 5.237 to the State Finance Act. This Section
added the Water Pollution Control Revolving Fund to the
list of special funds in the State Treasury. The Section
was renumbered as Section 5.238 by a revisory bill,
Public Act 85-1440, effective February 1, 1989. Although
the name of the Fund was changed by Public Act 90-121,
that Act did not make the corresponding change in Section
5.238.
(7) Over the 10 years that it has administered
Title IV-A programs, the Agency has entered into loan
agreements with hundreds of units of local government and
provided hundreds of millions of dollars of financial
assistance for water pollution control projects. There
are currently many active Title IV-A loans in the
disbursement phase and many more that are in the process
of being repaid. The Agency continues to receive many
new applications each year.
(8) Public Act 85-1135, which created Title IV-A,
also contained provisions relating to tax reform and
State bonds.
(9) On August 26, 1998, the Cook County Circuit
Court entered an order in the case of Oak Park Arms
Associates v. Whitley (No. 92 L 51045), in which it found
that Public Act 85-1135 violates the single subject
clause of the Illinois Constitution (Article IV, Section
8(d)). As of the time this amendatory Act of 1999 was
prepared, the order declaring P.A. 85-1135 invalid has
been vacated but the case is subject to appeal.
(10) The projects funded under Title IV-A affect
the vital areas of wastewater and sewage disposal and
drinking water supply and are important for the continued
health, safety, and welfare of the people of this State.
(b) It is the purpose of this amendatory Act of 1999 to
prevent or minimize any disruption to the programs
administered under Title IV-A that may result from challenges
to the constitutional validity of Public Act 85-1135.
(c) This amendatory Act of 1999 re-enacts Title IV-A of
the Environmental Protection Act as it has been amended.
This re-enactment is intended to ensure the continuation of
the programs administered under that Title and, if necessary,
to recreate them. The material in Sections 19.1 through 19.9
is shown as existing text (i.e., without underscoring)
because, as of the time this amendatory Act of 1999 was
prepared, the order declaring P.A. 85-1135 invalid has been
vacated. Section 19.7 has been omitted because it was
repealed by Public Act 90-372, effective July 1, 1998.
Section 4.1 is added to the Build Illinois Bond Act to
re-authorize the deposit of funds into the Water Pollution
Control Revolving Fund.
Section 5.238 of the State Finance Act is both re-enacted
and amended to reflect the current name of the Water
Revolving Fund.
(d) The re-enactment of Title IV-A of the Environmental
Protection Act by this amendatory Act of 1999 is intended to
remove any question as to the validity or content of Title
IV-A; it is not intended to supersede any other Public Act
that amends the text of a Section as set forth in this
amendatory Act. This re-enactment is not intended, and shall
not be construed, to imply that Public Act 85-1135 is invalid
or to limit or impair any legal argument concerning (1)
whether the Agency has express or implied authority to
administer loan programs in the absence of Title IV-A, or (2)
whether the provisions of Title IV-A were substantially
re-enacted by P.A. 89-27 or 90-121.
(e) All otherwise lawful actions taken before the
effective date of this amendatory Act of 1999 by any
employee, officer, agency, or unit of State or local
government or by any other person or entity, acting in
reliance on or pursuant to Title IV-A of the Environmental
Protection Act, as set forth in Public Act 85-1135 or as
subsequently amended, are hereby validated.
(f) All otherwise lawful obligations arising out of loan
agreements entered into before the effective date of this
amendatory Act of 1999 by the State or by any employee,
officer, agency, or unit of State or local government, acting
in reliance on or pursuant to Title IV-A of the Environmental
Protection Act, as set forth in Public Act 85-1135 or as
subsequently amended, are hereby validated and affirmed.
(g) All otherwise lawful deposits into the Water
Pollution Control Revolving Fund made before the effective
date of this amendatory Act of 1999 in accordance with
Section 4 of the Build Illinois Bond Act, as set forth in
Public Act 85-1135 or as subsequently amended, and the use of
those deposits for the purposes of Title IV-A of the
Environmental Protection Act, are hereby validated.
(h) This amendatory Act of 1999 applies, without
limitation, to actions pending on or after the effective date
of this amendatory Act.
Section 10. The State Finance Act is amended by
re-enacting and changing Section 5.238 as follows:
(30 ILCS 105/5.238) (from Ch. 127, par. 141.238)
Sec. 5.238. The Water Pollution Control Revolving Fund.
(Source: P.A. 85-1440.)
Section 15. The Build Illinois Bond Act is amended by
adding Section 4.1 as follows:
(30 ILCS 425/4.1 new)
Sec. 4.1. Re-authorization of deposits into the Water
Pollution Control Revolving Fund. The making of deposits
into the Water Pollution Control Revolving Fund (now known as
the Water Revolving Fund) to provide assistance in accordance
with the provisions of Title IV-A of the Environmental
Protection Act, in an aggregate amount not to exceed
$70,000,000, which was originally authorized in Section 4 of
this Act by Public Act 85-1135, is hereby re-authorized.
Section 99. Effective date. This Act takes effect upon
becoming law.
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