101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2650

 

Introduced , by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
415 ILCS 5/19.3  from Ch. 111 1/2, par. 1019.3

    Amends the Environmental Protection Act. Requires the Environmental Protection Agency to adopt rules to expand the usage of federally allowable set-aside programs within the Water Revolving Fund, including, but not limited to, programs that provide financial assistance to utilities exploring consolidation or other collaborative approaches with separate utilities for the purpose of improving efficiency, sustainable water management, and equitable water rates. Effective immediately


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A BILL FOR

 

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

 

 

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

 

 

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

 

 

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1    instrumentality thereof, if the proceeds of such bonds will
2    be deposited into the Fund;
3        (6) to transfer funds to the Water Pollution Control
4    Loan Program; and
5        (7) notwithstanding any other provision of this
6    subsection (d), to provide to local government units and
7    privately owned community water supplies any other
8    financial assistance that may be provided under Section
9    1452 of the federal Safe Drinking Water Act for any
10    expenditures eligible for assistance under that Section or
11    federal rules adopted to implement that Section.
12    (e) The Agency is designated as the administering agency of
13the Fund. The Agency shall submit to the Regional Administrator
14of the United States Environmental Protection Agency an
15intended use plan which outlines the proposed use of funds
16available to the State. The Agency shall take all actions
17necessary to secure to the State the benefits of the federal
18Water Pollution Control Act and the federal Safe Drinking Water
19Act, as now or hereafter amended.
20    (f) The Agency shall have the power to enter into
21intergovernmental agreements with the federal government or
22the State, or any instrumentality thereof, for purposes of
23capitalizing the Water Revolving Fund. Moneys on deposit in the
24Water Revolving Fund may be used for the creation of reserve
25funds or pledged funds that secure the obligations of repayment
26of loans made pursuant to this Section. For the purpose of

 

 

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1obtaining capital for deposit into the Water Revolving Fund,
2the Agency may also enter into agreements with financial
3institutions and other persons for the purpose of selling loans
4and developing a secondary market for such loans. The Agency
5shall have the power to create and establish such reserve funds
6and accounts as may be necessary or desirable to accomplish its
7purposes under this subsection and to allocate its available
8moneys into such funds and accounts. Investment earnings on
9moneys held in the Water Revolving Fund, including any reserve
10fund or pledged fund, shall be deposited into the Water
11Revolving Fund.
12    (g) By August 1, 2020 the Agency shall adopt rules to
13expand the usage of set-aside programs within the Fund that are
14allowed by federal law, including, but not limited to, programs
15that provide financial assistance to utilities exploring
16consolidation or other collaborative approaches with separate
17utilities for the purpose of improving efficiency, sustainable
18water management, and equitable water rates.
19(Source: P.A. 98-782, eff. 7-23-14; 99-187, eff. 7-29-15;
2099-922, eff. 1-17-17.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.