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91_HB1893sam001
LRB9104708ACdvam01
1 AMENDMENT TO HOUSE BILL 1893
2 AMENDMENT NO. . Amend House Bill 1893 by replacing
3 the title with the following:
4 "AN ACT to amend the Environmental Protection Act."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Environmental Protection Act is amended
8 by changing Sections 19.1, 19.2, 19.3, 19.4, 19.5, 19.6, and
9 19.8 as follows:
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 and privately owned
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1 community water supplies require assistance in financing the
2 construction of their public water supplies to comply with
3 State and federal drinking water laws and regulations;
4 (d) that the federal Safe Drinking Water Act ("SDWA"),
5 P.L. 93-532, as now or hereafter amended, provides an
6 important source of capitalization grant awards to the State
7 to provide assistance to local government units and privately
8 owned community water supplies through the Public Water
9 Supply Loan Program; and
10 (e) that violations of State and federal drinking water
11 standards threaten the public interest, safety, and welfare,
12 which demands that the Illinois Environmental Protection
13 Agency expeditiously adopt emergency rules to administer the
14 Public Water Supply Loan Program; and.
15 (f) that the General Assembly agrees with the
16 conclusions and recommendations of the "Report to the
17 Illinois General Assembly on the Issue of Expanding Public
18 Water Supply Loan Eligibility to Privately Owned Community
19 Water Supplies", dated August 1998, including the stated
20 access to the Public Water Supply Loan Program by the
21 privately owned public water supplies so that the long term
22 integrity and viability of the corpus of the Fund will be
23 assured.
24 (Source: P.A. 90-121, eff. 7-17-97.)
25 (415 ILCS 5/19.2) (from Ch. 111 1/2, par. 1019.2)
26 Sec. 19.2. As used in this Title, unless the context
27 clearly requires otherwise:
28 (a) "Agency" means the Illinois Environmental Protection
29 Agency.
30 (b) "Fund" means the Water Revolving Fund created
31 pursuant to this Title, consisting of the Water Pollution
32 Control Loan Program, the Public Water Supply Loan Program,
33 and the Loan Support Program.
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1 (c) "Loan" means a loan made from the Water Pollution
2 Control Loan Program or the Public Water Supply Loan Program
3 to an eligible local government unit or a privately owned
4 community water supply as a result of a contractual agreement
5 between the Agency and such unit or privately owned community
6 water supply.
7 (d) "Construction" means any one or more of the
8 following which is undertaken for a public purpose:
9 preliminary planning to determine the feasibility of the
10 treatment works or public water supply, engineering,
11 architectural, legal, fiscal or economic investigations or
12 studies, surveys, designs, plans, working drawings,
13 specifications, procedures or other necessary actions,
14 erection, building, acquisition, alteration, remodeling,
15 improvement or extension of treatment works or public water
16 supplies, or the inspection or supervision of any of the
17 foregoing items. "Construction" also includes implementation
18 of source water quality protection measures and establishment
19 and implementation of wellhead protection programs in
20 accordance with Section 1452(k)(1) of the federal Safe
21 Drinking Water Act.
22 (e) "Intended use plan" means a plan which includes a
23 description of the short and long term goals and objectives
24 of the Water Pollution Control Loan Program and the Public
25 Water Supply Loan Program, project categories, discharge
26 requirements, terms of financial assistance and the local
27 government units and privately owned community water supplies
28 communities to be served.
29 (f) "Treatment works" means any devices and systems
30 owned by a local government unit and used in the storage,
31 treatment, recycling, and reclamation of sewerage or
32 industrial wastes of a liquid nature, including intercepting
33 sewers, outfall sewers, sewage collection systems, pumping
34 power and other equipment, and appurtenances; extensions,
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1 improvements, remodeling, additions, and alterations thereof;
2 elements essential to provide a reliable recycled supply,
3 such as standby treatment units and clear well facilities;
4 and any works, including site acquisition of the land that
5 will be an integral part of the treatment process for
6 wastewater facilities.
7 (g) "Local government unit" means a county,
8 municipality, township, municipal or county sewerage or
9 utility authority, sanitary district, public water district,
10 improvement authority or any other political subdivision
11 whose primary purpose is to construct, operate and maintain
12 wastewater treatment facilities or public water supply
13 facilities or both.
14 (h) "Privately owned community water supply" means:
15 (1) an investor-owned water utility, if under
16 Illinois Commerce Commission regulation and operating as
17 a separate and distinct water utility;
18 (2) a not-for-profit water corporation, if
19 operating specifically as a water utility; and
20 (3) a mutually owned or cooperatively owned
21 community water system, if operating as a separate water
22 utility.
23 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
24 (415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)
25 Sec. 19.3. Water Revolving Fund.
26 (a) There is hereby created within the State Treasury a
27 Water Revolving Fund, consisting of 3 interest-bearing
28 special programs to be known as the Water Pollution Control
29 Loan Program, the Public Water Supply Loan Program, and the
30 Loan Support Program, which shall be used and administered by
31 the Agency.
32 (b) The Water Pollution Control Loan Program shall be
33 used and administered by the Agency to provide assistance to
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1 local government units for the following public purposes:
2 (1) to accept and retain funds from grant awards,
3 appropriations, transfers, and payments of interest and
4 principal;
5 (2) to make direct loans at or below market
6 interest rates to any eligible local government unit to
7 finance the construction of wastewater treatments works;
8 (3) to make direct loans at or below market
9 interest rates to any eligible local government unit to
10 buy or refinance debt obligations for treatment works
11 incurred after March 7, 1985;
12 (4) to guarantee or purchase insurance for local
13 obligations where such action would improve credit market
14 access or reduce interest rates;
15 (5) as a source of revenue or security for the
16 payment of principal and interest on revenue or general
17 obligation bonds issued by the State, if the proceeds of
18 such bonds will be deposited in the Fund;
19 (6) to finance the reasonable costs incurred by the
20 Agency in the administration of the Fund; and
21 (7) (blank) to transfer funds to the Public Water
22 Supply Loan Program.
23 (c) The Loan Support Program shall be used and
24 administered by the Agency for the following purposes:
25 (1) to accept and retain funds from grant awards
26 and appropriations;
27 (2) to finance the reasonable costs incurred by the
28 Agency in the administration of the Fund, including
29 activities under Title III of this Act, including the
30 administration of the State construction grant program;
31 (3) to transfer funds to the Water Pollution
32 Control Loan Program and the Public Water Supply Loan
33 Program;
34 (4) to accept and retain a portion of the loan
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1 repayments;
2 (5) to finance the development of the low interest
3 loan program for public water supply projects;
4 (6) to finance the reasonable costs incurred by the
5 Agency to provide technical assistance for public water
6 supplies; and
7 (7) to finance the reasonable costs incurred by the
8 Agency for public water system supervision programs, to
9 administer or provide for technical assistance through
10 source water protection programs, to develop and
11 implement a capacity development strategy, to delineate
12 and assess source water protection areas, and for an
13 operator certification program in accordance with Section
14 1452 of the federal Safe Drinking Water Act.
15 (d) The Public Water Supply Loan Program shall be used
16 and administered by the Agency to provide assistance to local
17 government units and privately owned community water supplies
18 for public water supplies for the following public purposes:
19 (1) to accept and retain funds from grant awards,
20 appropriations, transfers, and payments of interest and
21 principal;
22 (2) to make direct loans at or below market
23 interest rates to any eligible local government unit or
24 to any eligible privately owned community water supply to
25 finance the construction of public water supplies;
26 (3) to buy or refinance the debt obligation of a
27 local government unit for costs incurred on or after July
28 17, 1997 the effective date of this amendatory Act of
29 1997;
30 (4) to guarantee local obligations where such
31 action would improve credit market access or reduce
32 interest rates;
33 (5) as a source of revenue or security for the
34 payment of principal and interest on revenue or general
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1 obligation bonds issued by the State, if the proceeds of
2 such bonds will be deposited into the Fund; and
3 (6) (blank) to transfer funds to the Water
4 Pollution Control Loan Program.
5 (e) The Agency is designated as the administering
6 agency of the Fund. The Agency shall submit to the Regional
7 Administrator of the United States Environmental Protection
8 Agency an intended use plan which outlines the proposed use
9 of funds available to the State. The Agency shall take all
10 actions necessary to secure to the State the benefits of the
11 federal Water Pollution Control Act and the federal Safe
12 Drinking Water Act, as now or hereafter amended.
13 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
14 (415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)
15 Sec. 19.4. Regulations; priorities. The Agency shall
16 have the authority to promulgate regulations to set forth
17 procedures and criteria concerning loan applications,
18 submittal of information to the Agency to ascertain the
19 credit worthiness of the loan applicant, types of security
20 required for the loan including liens, mortgages, and other
21 kinds of security interests, types of collateral as necessary
22 that can be pledged to meet or exceed the loan amount,
23 special loan terms for securing repayment of the loan, the
24 staged access to the fund by privately owned community water
25 supplies, assurance of payment, interest rates, loan support
26 rates, impact on user charges, eligibility of proposed
27 construction, priority of needs, special loan terms for
28 disadvantaged communities, and maximum limits on annual
29 distributions of funds to applicants or groups of applicants.
30 The Agency shall develop and maintain a priority list of loan
31 applicants as categorized by need. Priority in making loans
32 from the Water Pollution Control Loan Program must first be
33 given to local government units which need to make capital
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1 improvements to achieve compliance with National Pollutant
2 Discharge Elimination System permit requirements pursuant to
3 the federal Water Quality Act of 1987 and this Act. Priority
4 in making loans from the Public Water Supply Loan Program
5 must first be given to local government units and privately
6 owned community water supplies that need to make capital
7 improvements to protect human health and to achieve
8 compliance with the State and federal primary drinking water
9 standards adopted pursuant to this Act and the federal Safe
10 Drinking Water Act, as now and hereafter amended.
11 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
12 (415 ILCS 5/19.5) (from Ch. 111 1/2, par. 1019.5)
13 Sec. 19.5. Loans; repayment.
14 (a) The Agency shall have the authority to make loans for a
15 public purpose to local government units for the construction
16 of treatment works and to local government units and
17 privately owned community public water supplies for the
18 construction of public water supplies pursuant to the
19 regulations promulgated under Section 19.4.
20 (b) Loans made from the Fund shall provide for:
21 (1) a schedule of disbursement of proceeds;
22 (2) a fixed rate that includes interest and loan
23 support based upon priority, but the loan support rate
24 shall not exceed one-half of the fixed rate established
25 for each loan;
26 (3) a schedule of repayment;
27 (4) initiation of principal repayments within one
28 year after the project is operational; and
29 (5) a confession of judgment upon default.
30 (c) The Agency may amend existing loans to include a
31 loan support rate only if the overall cost to the loan
32 recipient is not increased.
33 (d) A local government unit or privately owned community
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1 water supply shall secure the payment of its obligations to
2 the Fund by a dedicated source of repayment, including
3 revenues derived from the imposition of rates, fees and
4 charges and by other types of security or collateral or both
5 required to secure the loan pursuant to the regulations
6 promulgated under Section 19.4. In the event of a
7 delinquency as to payments to the Fund, the local government
8 unit or privately owned community water supply shall revise
9 its rates, fees and charges to meet its obligations.
10 (Source: P.A. 89-27, eff. 1-1-96; 90-121, eff. 7-17-97.)
11 (415 ILCS 5/19.6) (from Ch. 111 1/2, par. 1019.6)
12 Sec. 19.6. Delinquent loan repayment.
13 (a) In the event that a timely payment is not made by a
14 local government unit or the privately owned community water
15 supply according to the loan schedule of repayment, the local
16 government unit or privately owned community water supply
17 shall notify the Agency in writing within 15 days after the
18 payment due date. The notification shall include a statement
19 of the reasons the payment was not timely tendered, the
20 circumstances under which the late payments will be
21 satisfied, and binding commitments to assure future payments.
22 After receipt of this notification, the Agency shall confirm
23 in writing the acceptability of the plan or take action in
24 accordance with subsection (b) of this Section.
25 (b) In the event that a local government unit or
26 privately owned community water supply fails to comply with
27 subsection (a) of this Section, the Agency shall promptly
28 issue a notice of delinquency to the local government unit or
29 privately owned community water supply which shall require a
30 written response within 15 30 days. The notice of
31 delinquency shall require that the local government unit or
32 privately owned community water supply revise its rates, fees
33 and charges to meet its obligations pursuant to subsection
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1 (d) of Section 19.5 or take other specified actions as may be
2 appropriate to remedy the delinquency and to assure future
3 payments.
4 (c) In the event that the local government unit or
5 privately owned community water supply fails to timely or
6 adequately respond to a notice of delinquency, or fails to
7 meet its obligations made pursuant to subsections (a) and (b)
8 of this Section, the Agency shall pursue the collection of
9 the amounts past due, the outstanding loan balance and the
10 costs thereby incurred, either pursuant to the Illinois State
11 Collection Act of 1986 or by any other reasonable means as
12 may be provided by law, including the taking of title by
13 foreclosure or otherwise to any project or other property
14 pledged, mortgaged, encumbered, or otherwise available as
15 security or collateral.
16 (Source: P.A. 90-121, eff. 7-17-97.)
17 (415 ILCS 5/19.8) (from Ch. 111 1/2, par. 1019.8)
18 Sec. 19.8. Advisory committees; reports. (a) The
19 Director of the Agency shall appoint committees to advise the
20 Agency concerning the financial structure of the Programs.
21 The committees shall consist of representatives from
22 appropriate State agencies, the financial community,
23 engineering societies and other interested parties. The
24 committees shall meet periodically and members shall be
25 reimbursed for their ordinary and necessary expenses incurred
26 in the performance of their committee duties.
27 (b) The Agency shall report to the General Assembly by
28 June 30, 1998 regarding the feasibility of providing drinking
29 water loans to not-for-profit community water supplies that
30 serve units of local government and to investor-owned public
31 utilities. The report shall include a detailed discussion of
32 all relevant factors and shall include participation from
33 representatives of the affected entities.
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1 (Source: P.A. 90-121, eff. 7-17-97.)
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.".