104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3825
 
Introduced 2/6/2026, by Sen. Ram Villivalam
 
SYNOPSIS AS INTRODUCED:
 
New Act
    Creates the Lead Service Line Replacement Bonding Act. Authorizes the Illinois Environmental Protection Agency to issue up to $2,000,000,000 in bonds to provide funding for the Lead Service Line Replacement Loans Program. Defines key terms. Provides that bond proceeds may be used for loans to replace lead service lines, principal forgiveness or negative interest loans for disadvantaged communities, costs of issuance and administration, and refinancing or refunding of similar obligations.


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A BILL FOR
 
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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Lead 
5Service Line Replacement Bonding Act.
 
6    Section 5. Findings; purpose. The General Assembly finds 
7that: 
8        (1) Lead service lines pose a serious risk to public 
9    health, particularly to children and pregnant persons. 
10        (2) Replacing lead service lines is a critical 
11    infrastructure investment necessary to ensure safe 
12    drinking water throughout the State. 
13        (3) The Illinois Environmental Protection Agency 
14    administers loan programs that assist public water 
15    supplies and local governments with drinking water 
16    infrastructure improvements. 
17        (4) Authorizing the issuance of State bonds to 
18    capitalize the Lead Service Line Replacement Loans Program 
19    will accelerate the removal of lead service lines and 
20    leverage federal and local funds. 
21    It is therefore the purpose of this Act to authorize the 
22Illinois Environmental Protection Agency to issue bonds to 
23finance loans for the replacement of lead service lines 
 
 
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1throughout Illinois.
 
2    Section 10. Definitions. As used in this Act: 
3    "Agency" means the Illinois Environmental Protection 
4Agency. 
5    "Bond" or "bonds" means bonds, notes, or other evidences 
6of indebtedness issued by the Agency pursuant to this Act.
7    "Lead service line" has the meaning ascribed to that term 
8in Section 17.12 of the Environmental Protection Act. 
9    "Lead Service Line Replacement Loans Program" or "LSLR 
10Program" means the loan program administered by the Agency to 
11provide financial assistance for the full replacement of lead 
12service lines, including both publicly and privately owned 
13portions. 
 
14    Section 15. Authority to issue bonds. 
15    (a) The Agency is authorized to issue bonds, in one or more 
16series, in an aggregate principal amount not to exceed 
17$2,000,000,000, for the purpose of providing funding for the 
18Lead Service Line Replacement Loans Program. 
19    (b) Bonds issued under this Act may be used to: 
20        (1) provide low-interest or zero-interest loans for 
21    lead service line replacement projects; 
22        (2) provide principal forgiveness or negative interest 
23    loans to disadvantaged communities to the extent permitted 
24    by law; 
 
 
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1        (3) pay costs of issuance, administration, and credit 
2    enhancement related to the bonds; and 
3        (4) refinance or refund outstanding obligations issued 
4    for similar purposes, if determined to be in the best 
5    interest of the State.