[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 91-0501
HB1893 Enrolled LRB9104708ACtm
AN ACT to amend the Environmental Protection Act.
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, 19.4, 19.5, 19.6, and
19.8 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 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 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. 93-532, 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; 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; and.
(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.
(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 or a privately owned
community water supply as a result of a contractual agreement
between the Agency and such unit or privately owned community
water supply.
(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 local
government units and privately owned community water supplies
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.
(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. 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) (blank) 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 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 to any eligible local government unit or
to any eligible privately owned community water supply 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 July
17, 1997 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) (blank) 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. Regulations; priorities. The Agency shall
have the authority to promulgate regulations to set forth
procedures and criteria concerning loan applications,
submittal of information to the Agency to ascertain the
credit worthiness of the loan applicant, types of security
required for the loan including liens, mortgages, and other
kinds of security interests, types of collateral as necessary
that can be pledged to meet or exceed the loan amount,
special loan terms for securing repayment of the loan, the
staged access to the fund by privately owned community water
supplies, 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 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.
(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 to local government units
and privately owned community public water supplies for the
construction of 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 or privately owned community
water supply 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 and by other types of security or collateral or both
required to secure the loan pursuant to the regulations
promulgated under Section 19.4. In the event of a
delinquency as to payments to the Fund, the local government
unit or privately owned community water supply 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 or the privately owned community water
supply according to the loan schedule of repayment, the local
government unit or privately owned community water supply
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 or
privately owned community water supply fails to comply with
subsection (a) of this Section, the Agency shall promptly
issue a notice of delinquency to the local government unit or
privately owned community water supply which shall require a
written response within 15 30 days. The notice of
delinquency shall require that the local government unit or
privately owned community water supply 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 or
privately owned community water supply 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, including the taking of title by
foreclosure or otherwise to any project or other property
pledged, mortgaged, encumbered, or otherwise available as
security or collateral.
(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.)
Section 99. Effective date. This Act takes effect upon
becoming law.
[ Top ]