SB1707 EngrossedLRB099 10940 MGM 31283 b

1    AN ACT concerning safety.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Environmental Protection Act is amended by
5changing Section 19.3 as follows:
 
6    (415 ILCS 5/19.3)  (from Ch. 111 1/2, par. 1019.3)
7    Sec. 19.3. Water Revolving Fund.
8    (a) There is hereby created within the State Treasury a
9Water Revolving Fund, consisting of 3 interest-bearing special
10programs to be known as the Water Pollution Control Loan
11Program, the Public Water Supply Loan Program, and the Loan
12Support Program, which shall be used and administered by the
13Agency.
14    (b) The Water Pollution Control Loan Program shall be used
15and administered by the Agency to provide assistance for the
16following purposes:
17        (1) to accept and retain funds from grant awards,
18    appropriations, transfers, and payments of interest and
19    principal;
20        (2) to make direct loans at or below market interest
21    rates and to provide additional subsidization, including,
22    but not limited to, forgiveness of principal, negative
23    interest rates, and grants, to any eligible local

 

 

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1    government unit to finance the construction of treatments
2    works, including storm water treatment systems that are
3    treatment works, and projects that fulfill federal State
4    Revolving Fund grant requirements for a green project
5    reserve;
6        (2.5) with respect to funds provided under the American
7    Recovery and Reinvestment Act of 2009:
8            (A) to make direct loans at or below market
9        interest rates to any eligible local government unit
10        and to provide additional subsidization to any
11        eligible local government unit, including, but not
12        limited to, forgiveness of principal, negative
13        interest rates, and grants;
14            (B) to make direct loans at or below market
15        interest rates to any eligible local government unit to
16        buy or refinance debt obligations for treatment works
17        incurred on or after October 1, 2008; and
18            (C) to provide additional subsidization,
19        including, but not limited to, forgiveness of
20        principal, negative interest rates, and grants for
21        treatment works incurred on or after October 1, 2008;
22        (3) to make direct loans at or below market interest
23    rates and to provide additional subsidization, including,
24    but not limited to, forgiveness of principal, negative
25    interest rates, and grants, to any eligible local
26    government unit to buy or refinance debt obligations for

 

 

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1    costs incurred after March 7, 1985, for the construction of
2    treatment works, including storm water treatment systems
3    that are treatment works, and projects that fulfill federal
4    State Revolving Fund grant requirements for a green project
5    reserve;
6        (3.5) to make loans, including, but not limited to,
7    loans through a linked deposit program, at or below market
8    interest rates for the implementation of a management
9    program established under Section 319 of the Federal Water
10    Pollution Control Act, as amended;
11        (4) to guarantee or purchase insurance for local
12    obligations where such action would improve credit market
13    access or reduce interest rates;
14        (5) as a source of revenue or security for the payment
15    of principal and interest on revenue or general obligation
16    bonds issued by the State or any political subdivision or
17    instrumentality thereof, if the proceeds of such bonds will
18    be deposited in the Fund;
19        (6) to finance the reasonable costs incurred by the
20    Agency in the administration of the Fund;
21        (7) to transfer funds to the Public Water Supply Loan
22    Program; and
23        (8) notwithstanding any other provision of this
24    subsection (b), to provide, in accordance with rules
25    adopted under this Title, any other financial assistance
26    that may be provided under Section 603 of the Federal Water

 

 

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1    Pollution Control Act for any other projects or activities
2    eligible for assistance under subsections (c)(1) or (c)(2)
3    of that Section or federal rules adopted to implement that
4    Section under those subsections.
5    (c) The Loan Support Program shall be used and administered
6by the Agency for the following purposes:
7        (1) to accept and retain funds from grant awards and
8    appropriations;
9        (2) to finance the reasonable costs incurred by the
10    Agency in the administration of the Fund, including
11    activities under Title III of this Act, including the
12    administration of the State construction grant program;
13        (3) to transfer funds to the Water Pollution Control
14    Loan Program and the Public Water Supply Loan Program;
15        (4) to accept and retain a portion of the loan
16    repayments;
17        (5) to finance the development of the low interest loan
18    programs for water pollution control and public water
19    supply projects;
20        (6) to finance the reasonable costs incurred by the
21    Agency to provide technical assistance for public water
22    supplies; and
23        (7) to finance the reasonable costs incurred by the
24    Agency for public water system supervision programs, to
25    administer or provide for technical assistance through
26    source water protection programs, to develop and implement

 

 

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1    a capacity development strategy, to delineate and assess
2    source water protection areas, and for an operator
3    certification program in accordance with Section 1452 of
4    the federal Safe Drinking Water Act.
5    (d) The Public Water Supply Loan Program shall be used and
6administered by the Agency to provide assistance to local
7government units and privately owned community water supplies
8for public water supplies for the following public purposes:
9        (1) to accept and retain funds from grant awards,
10    appropriations, transfers, and payments of interest and
11    principal;
12        (2) to make direct loans at or below market interest
13    rates and to provide additional subsidization, including,
14    but not limited to, forgiveness of principal, negative
15    interest rates, and grants, to any eligible local
16    government unit or to any eligible privately owned
17    community water supply to finance the construction of water
18    supplies and projects that fulfill federal State Revolving
19    Fund grant requirements for a green project reserve;
20        (2.5) with respect to funds provided under the American
21    Recovery and Reinvestment Act of 2009:
22            (A) 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
25        supply, and to provide additional subsidization to any
26        eligible local government unit or to any eligible

 

 

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1        privately owned community water supply, including, but
2        not limited to, forgiveness of principal, negative
3        interest rates, and grants;
4            (B) to buy or refinance the debt obligation of a
5        local government unit for costs incurred on or after
6        October 1, 2008; and
7            (C) to provide additional subsidization,
8        including, but not limited to, forgiveness of
9        principal, negative interest rates, and grants for a
10        local government unit for costs incurred on or after
11        October 1, 2008;
12        (3) to make direct loans at or below market interest
13    rates and to provide additional subsidization, including,
14    but not limited to, forgiveness of principal, negative
15    interest rates, and grants, to any eligible local
16    government unit or to any eligible privately owned
17    community water supply to buy or refinance debt obligations
18    for costs incurred on or after July 17, 1997, for the
19    construction of water supplies and projects that fulfill
20    federal State Revolving Fund requirements for a green
21    project reserve;
22        (4) to guarantee local obligations where such action
23    would improve credit market access or reduce interest
24    rates;
25        (5) as a source of revenue or security for the payment
26    of principal and interest on revenue or general obligation

 

 

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1    bonds issued by the State or any political subdivision or
2    instrumentality thereof, if the proceeds of such bonds will
3    be deposited into the Fund; and
4        (6) to transfer funds to the Water Pollution Control
5    Loan Program.
6    (e) The Agency is designated as the administering agency of
7the Fund. The Agency shall submit to the Regional Administrator
8of the United States Environmental Protection Agency an
9intended use plan which outlines the proposed use of funds
10available to the State. The Agency shall take all actions
11necessary to secure to the State the benefits of the federal
12Water Pollution Control Act and the federal Safe Drinking Water
13Act, as now or hereafter amended.
14    (f) The Agency shall have the power to enter into
15intergovernmental agreements with the federal government or
16the State, or any instrumentality thereof, for purposes of
17capitalizing the Water Revolving Fund. Moneys on deposit in the
18Water Revolving Fund may be used for the creation of reserve
19funds or pledged funds that secure the obligations of repayment
20of loans made pursuant to this Section. For the purpose of
21obtaining capital for deposit into the Water Revolving Fund,
22the Agency may also enter into agreements with financial
23institutions and other persons for the purpose of selling loans
24and developing a secondary market for such loans. The Agency
25shall have the power to create and establish such reserve funds
26and accounts as may be necessary or desirable to accomplish its

 

 

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1purposes under this subsection and to allocate its available
2moneys into such funds and accounts. Investment earnings on
3moneys held in the Water Revolving Fund, including any reserve
4fund or pledged fund, shall be deposited into the Water
5Revolving Fund.
6(Source: P.A. 98-782, eff. 7-23-14.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.