SB0550sam003 99TH GENERAL ASSEMBLY

Sen. Heather A. Steans

Filed: 5/29/2016

09900SB0550sam003 LRB099 03301 MJP 49375 a

AMENDMENT TO SENATE BILL 550

AMENDMENT NO. ______. Amend Senate Bill 550 by replacing everything after the enacting clause with the following:

"Section 5. The Department of Public Health Act is amended by adding Section 5.2 as follows:

(20 ILCS 2305/5.2 new)

Sec. 5.2. Identification of plumbing-related lead hazards in schools. To protect children and other members of the public from any threat to public health that might be posed by lead in drinking water at schools, the Department of Public Health shall, as soon as practicable after the effective date of this amendatory Act of the 99th General Assembly but no later than June 30, 2018, adopt rules that (i) establish a program to identify, in each school in the State, any lead service line or lead-bearing plumbing that is a lead hazard, as defined in Section 2 of the Lead Poisoning Prevention Act, and (ii) require the mitigation of those lead hazards within a reasonable time after their identification.

Section 10. The Environmental Protection Act is amended by changing Sections 19.3 and 19.4 and by adding Section 17.11 as follows:

(415 ILCS 5/17.11 new)

Sec. 17.11. Lead in drinking water prevention.

(a) For the purposes of this Section:

"First-draw sample" means one liter of water volume collected at a source of potable water and prior to the sample there must be a minimum of 6 hours during which there is no water used from the source of potable water or any sources adjacent or close to that source.

"Non-source origination community water system" means a community water system owned by a city, village, or incorporated town that receives improved water from a source origination community water system and distributes that water outside the corporate limits of the city, village, or incorporated town that owns the source origination community water system.

"Potentially affected residence" means any residence where water service is or may be temporarily interrupted or shut off by the community water supply because the supply is carrying out construction or repair work.

"School" means any school district or public, private, charter, or nonpublic day or residential educational institution, constructed prior to 1987 that provides education from pre-kindergarten through grade 5 and receives water from a community water supply.

"Source of potable water" means the point at which non-bottled water exits any tap, faucet, drinking fountain, or similar point of use regularly ingested by children or used for food preparation.

"Source origination community water system" means a community water system owned by a city, village, or incorporated town that operates a waterworks whereby a source of water from a lake, river, or other source is treated at the waterworks and furnished to a non-source origination community water system that operates outside the corporate limits of the city, village, or incorporated town.

(b) Prior to December 31, 2019, schools shall collect and the owner or operator of a community water supply shall analyze for lead a first-draw sample from representative sources of potable water located at each school within the community water supply distribution system. Representative sources of potable water shall include at least one sample from each unique model of drinking fountain or fixture that provides potable water. The community water supply shall provide the school with technical assistance to determine the sampling locations that are most representative of the sources of potable water at each school. The community water supply shall supply each school with the sampling instructions and equipment necessary to collect all required lead samples. Lead sampling results obtained shall not be used for purposes of determining compliance with the Board rules that implement the national primary drinking water regulations for lead and copper. The community water supply shall submit all lead sampling results to the school and the Department of Public Health within 7 business days of receipt of the results. If any sample exceeds the lead action level of 15 parts per billion (15 micrograms per liter), the school shall promptly notify the parents or legal guardians of all enrolled students of the exceedance and its location within the school and direct them to the United States Environmental Protection Agency's website for information about lead in drinking water.

An investor-owned water utility shall be allowed to annually recover expenditures associated with this Section through its rates.

(c) Within 180 days after the effective date of this amendatory Act of the 99th General Assembly, the owner or operator of a community water supply shall develop and submit to the Department of Public Health a plan to compile a comprehensive inventory of all lead service lines within the community water supply distribution system including privately owned lead service lines. At a minimum, the plan shall include:

(1) a procedure for determining whether any water service lines exposed as a result of construction or excavation by the community water supply or any other public utility are made of lead; and

(2) a procedure by which the owner or operator of the community water supply will update the information in its lead service line inventory on at least an annual basis.

The owner or operator of a community water supply shall implement the lead service line inventory development plan in accordance with its terms.

(d) On or before April 15 of each year, the owner or operator of a community water supply shall submit to the Department of Public Health an inventory of all known lead service lines within its community water supply distribution system, including privately owned lead service lines current through at least the end of the previous calendar year. The lead service line inventory shall separately identify the lead service lines that were added to the inventory after the previous year's submission and shall include a summary that provides:

(1) the total number of service lines within the community water supply distribution system;

(2) the percentage of service lines that are known to contain lead;

(3) the percentage of service lines that are known to be of a material other than lead; and

(4) the percentage of service lines added to the inventory after the previous submission of the annual lead service line inventory.

(e) Beginning January 1, 2017, when conducting routine inspections of community water supplies as required under this Act, the Agency may conduct a separate audit to identify progress that the community water supply has made toward completing the material inventories required under this Section.

(f) The owner or operator of a community water supply shall promptly notify the owners and occupants of a residence where sampling results show lead levels in any individual tap sample exceed 15 parts per billion (15 micrograms per liter) and shall also provide public education materials comparable in content to the public education materials that the Board rules require to be delivered when a supplier exceeds the lead action level.

(g) The owner or operator of a community water supply shall, 14 days prior to beginning planned work to repair or replace any water mains or lead service lines, notify the owners and occupants of all potentially affected residences of the planned work. In cases where a community water supply must perform construction or repair work on an emergency basis or where such work is not scheduled at least 14 days prior to work taking place, the community water supply shall notify potentially affected residences as soon as reasonably possible. When work is to repair or replace a water meter, the notification shall be provided at the time the work is initiated. The notification shall include:

(1) a warning that the work may result in sediment, possibly containing lead, in the residence's water supply; and

(2) information concerning best practices for preventing the consumption of any lead in drinking water, including a recommendation to flush water lines during and after the completion of the repair or replacement work and to clean faucet aerator screens.

(h) A source origination community water system's obligation to comply with this Section is limited geographically to any and all activity that occurs within the corporate limits of the city, village, or incorporated town that owns or operates the source origination community water system. Once a source origination community water system has furnished water to a non-source origination community water system, it is the sole responsibility of that system to comply with and implement the provisions of this Section. Nothing in this Section shall relieve a community water system of its obligations under the Public Water Supply Operations Act.

(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 for the following 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 and to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants, to any eligible local government unit to finance the construction of treatments works, including storm water treatment systems that are treatment works, and projects that fulfill federal State Revolving Fund grant requirements for a green project reserve, and sampling and replacement of lead pipes and fixtures in schools;

(2.5) with respect to funds provided under the American Recovery and Reinvestment Act of 2009:

(A) to make direct loans at or below market interest rates to any eligible local government unit and to provide additional subsidization to any eligible local government unit, including, but not limited to, forgiveness of principal, negative interest rates, and grants;

(B) 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 on or after October 1, 2008; and

(C) to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants for treatment works incurred on or after October 1, 2008;

(3) to make direct loans at or below market interest rates and to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants, to any eligible local government unit to buy or refinance debt obligations for costs incurred after March 7, 1985, for the construction of treatment works, including storm water treatment systems that are treatment works, and projects that fulfill federal State Revolving Fund grant requirements for a green project reserve;

(3.5) to make loans, including, but not limited to, loans through a linked deposit program, at or below market interest rates for the implementation of a management program established under Section 319 of the Federal Water Pollution Control Act, as amended;

(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 or any political subdivision or instrumentality thereof, 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;

(7) to transfer funds to the Public Water Supply Loan Program; and

(8) notwithstanding any other provision of this subsection (b), to provide, in accordance with rules adopted under this Title, any other financial assistance that may be provided under Section 603 of the Federal Water Pollution Control Act for any other projects or activities eligible for assistance under that Section or federal rules adopted to implement that Section.

(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 programs for water pollution control and 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 and to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants, to any eligible local government unit or to any eligible privately owned community water supply to finance the construction of water supplies and projects that fulfill federal State Revolving Fund grant requirements for a green project reserve;

(2.5) with respect to funds provided under the American Recovery and Reinvestment Act of 2009:

(A) 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, and to provide additional subsidization to any eligible local government unit or to any eligible privately owned community water supply, including, but not limited to, forgiveness of principal, negative interest rates, and grants;

(B) to buy or refinance the debt obligation of a local government unit for costs incurred on or after October 1, 2008; and

(C) to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants for a local government unit for costs incurred on or after October 1, 2008;

(3) to make direct loans at or below market interest rates and to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants, to any eligible local government unit or to any eligible privately owned community water supply to buy or refinance debt obligations for costs incurred on or after July 17, 1997, for the construction of water supplies and projects that fulfill federal State Revolving Fund requirements for a green project reserve;

(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 or any political subdivision or instrumentality thereof, 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.

(f) The Agency shall have the power to enter into intergovernmental agreements with the federal government or the State, or any instrumentality thereof, for purposes of capitalizing the Water Revolving Fund. Moneys on deposit in the Water Revolving Fund may be used for the creation of reserve funds or pledged funds that secure the obligations of repayment of loans made pursuant to this Section. For the purpose of obtaining capital for deposit into the Water Revolving Fund, the Agency may also enter into agreements with financial institutions and other persons for the purpose of selling loans and developing a secondary market for such loans. The Agency shall have the power to create and establish such reserve funds and accounts as may be necessary or desirable to accomplish its purposes under this subsection and to allocate its available moneys into such funds and accounts. Investment earnings on moneys held in the Water Revolving Fund, including any reserve fund or pledged fund, shall be deposited into the Water Revolving Fund.

(Source: P.A. 98-782, eff. 7-23-14; 99-187, eff. 7-29-15.)

(415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)

Sec. 19.4. Regulations; priorities.

(a) The Agency shall have the authority to promulgate regulations for the administration of this Title, including, but not limited to, rules setting forth procedures and criteria concerning loan applications and the issuance of loans. For loans to units of local government, the regulations shall include, but need not be limited to, the following elements:

(1) loan application requirements;

(2) determination of credit worthiness of the loan applicant;

(3) special loan terms, as necessary, for securing the repayment of the loan;

(4) assurance of payment;

(5) interest rates;

(6) loan support rates;

(7) impact on user charges;

(8) eligibility of proposed construction;

(9) priority of needs;

(10) special loan terms for disadvantaged communities;

(11) maximum limits on annual distributions of funds to applicants or groups of applicants;

(12) penalties for noncompliance with loan requirements and conditions, including stop-work orders, termination, and recovery of loan funds; and

(13) indemnification of the State of Illinois and the Agency by the loan recipient.

(b) The Agency shall have the authority to promulgate regulations to set forth procedures and criteria concerning loan applications for loan recipients other than units of local government. In addition to all of the elements required for units of local government under subsection (a), the regulations shall include, but need not be limited to, the following elements:

(1) types of security required for the loan;

(2) types of collateral, as necessary, that can be pledged for the loan; and

(3) staged access to fund privately owned community water supplies.

(c) Rules adopted under this Title shall also include, but shall not be limited to, criteria for prioritizing the issuance of loans under this Title according to applicant need. 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. Rules for prioritizing loans from the Water Pollution Control Loan Program may include, but shall not be limited to, criteria designed to encourage green infrastructure, water efficiency, environmentally innovative projects, and nutrient pollution removal, and lead sampling and removal.

(d) The Agency shall have the authority to promulgate regulations to set forth procedures and criteria concerning loan applications for funds provided under the American Recovery and Reinvestment Act of 2009. In addition, due to time constraints in the American Recovery and Reinvestment Act of 2009, the Agency shall adopt emergency rules as necessary to allow the timely administration of funds provided under the American Recovery and Reinvestment Act of 2009. Emergency rules adopted under this subsection (d) shall be adopted in accordance with Section 5-45 of the Illinois Administrative Procedure Act.

(e) The Agency may adopt rules to create a linked deposit loan program through which loans made pursuant to paragraph (3.5) of subsection (b) of Section 19.3 may be made through private lenders. Rules adopted under this subsection (e) shall include, but shall not be limited to, provisions requiring private lenders, prior to disbursing loan proceeds through the linked deposit loan program, to verify that the loan recipients have been approved by the Agency for financing under paragraph (3.5) of subsection (b) of Section 19.3.

(Source: P.A. 98-782, eff. 7-23-14.)

Section 99. Effective date. This Act takes effect upon becoming law.".