Public Act 90-0121 of the 90th General Assembly
Public Act 90-0121
SB815 Enrolled LRB9000167DPdv
AN ACT to amend the Environmental Protection Act by
changing the heading of Title IV-A and Sections 19.1, 19.2,
19.3, 19.4, 19.5, 19.6, and 19.8.
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 the heading of Title IV-A and Sections 19.1,
19.2, 19.3, 19.4, 19.5, 19.6, and 19.8 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; and
(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; Revolving Fund.
(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. 85-1135.)
(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 Pollution Control 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 or sewerage or
industrial wastes of a liquid nature, including intercepting
sewers, outfall sewers, sewage collection systems, pumping
power and other equipment, and their 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.)
(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
an interest bearing special fund to be known as the Water
Pollution Control Revolving Fund, consisting of 3
interest-bearing special 2 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) (a-1) 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
work 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; and
(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) (a-2) 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) (1) 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) (2) to transfer funds to the Water Pollution
Control Loan Program and the Public Water Supply Loan
Program;
(4) (3) to accept and retain a portion of the loan
repayments; and
(5) (4) 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) (b) 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.)
(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, and 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 Fund 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.)
(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 not to exceed 20 years;
(4) initiation of principal repayments within one
year after the project is operational; and
(5) a confession of judgment upon default.
(c) (b-1) 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) (c) 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.)
(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) (c) 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. 85-1135.)
(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
a Committee to advise the Agency concerning the financial
structure of the Programs Fund. The committees Committee
shall consist of representatives from appropriate State
agencies, the financial community, engineering societies and
other interested parties. The committees Committee shall
meet periodically at least annually and members shall be
reimbursed for their ordinary and necessary expenses incurred
in the performance of their committee the Committee's 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. 85-1135.)
Section 99. Effective date. This Act takes effect upon
becoming law.