Rep. Robert Rita

Filed: 3/29/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2650

2    AMENDMENT NO. ______. Amend House Bill 2650 by replacing
3everything after the enacting clause with the following:
 
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:

 

 

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

 

 

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1        principal, negative interest rates, and grants for
2        treatment works incurred on or after October 1, 2008;
3        (3) to make direct loans at or below market interest
4    rates and to provide additional subsidization, including,
5    but not limited to, forgiveness of principal, negative
6    interest rates, and grants, to any eligible local
7    government unit to buy or refinance debt obligations for
8    costs incurred after March 7, 1985, for the construction of
9    treatment works, including storm water treatment systems
10    that are treatment works, and projects that fulfill federal
11    State Revolving Fund grant requirements for a green project
12    reserve;
13        (3.5) to make loans, including, but not limited to,
14    loans through a linked deposit program, at or below market
15    interest rates for the implementation of a management
16    program established under Section 319 of the Federal Water
17    Pollution Control Act, as amended;
18        (4) to guarantee or purchase insurance for local
19    obligations where such action would improve credit market
20    access or reduce interest rates;
21        (5) as a source of revenue or security for the payment
22    of principal and interest on revenue or general obligation
23    bonds issued by the State or any political subdivision or
24    instrumentality thereof, if the proceeds of such bonds will
25    be deposited in the Fund;
26        (6) to finance the reasonable costs incurred by the

 

 

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1    Agency in the administration of the Fund;
2        (7) to transfer funds to the Public Water Supply Loan
3    Program; and
4        (8) notwithstanding any other provision of this
5    subsection (b), to provide, in accordance with rules
6    adopted under this Title, any other financial assistance
7    that may be provided under Section 603 of the Federal Water
8    Pollution Control Act for any other projects or activities
9    eligible for assistance under that Section or federal rules
10    adopted to implement that Section.
11    (c) The Loan Support Program shall be used and administered
12by the Agency for the following purposes:
13        (1) to accept and retain funds from grant awards and
14    appropriations;
15        (2) to finance the reasonable costs incurred by the
16    Agency in the administration of the Fund, including
17    activities under Title III of this Act, including the
18    administration of the State construction grant program;
19        (3) to transfer funds to the Water Pollution Control
20    Loan Program and the Public Water Supply Loan Program;
21        (4) to accept and retain a portion of the loan
22    repayments;
23        (5) to finance the development of the low interest loan
24    programs for water pollution control and public water
25    supply projects;
26        (6) to finance the reasonable costs incurred by the

 

 

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

 

 

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1    Recovery and Reinvestment Act of 2009:
2            (A) to make direct loans at or below market
3        interest rates to any eligible local government unit or
4        to any eligible privately owned community water
5        supply, and to provide additional subsidization to any
6        eligible local government unit or to any eligible
7        privately owned community water supply, including, but
8        not limited to, forgiveness of principal, negative
9        interest rates, and grants;
10            (B) to buy or refinance the debt obligation of a
11        local government unit for costs incurred on or after
12        October 1, 2008; and
13            (C) to provide additional subsidization,
14        including, but not limited to, forgiveness of
15        principal, negative interest rates, and grants for a
16        local government unit for costs incurred on or after
17        October 1, 2008;
18        (3) to make direct loans at or below market interest
19    rates and to provide additional subsidization, including,
20    but not limited to, forgiveness of principal, negative
21    interest rates, and grants, to any eligible local
22    government unit or to any eligible privately owned
23    community water supply to buy or refinance debt obligations
24    for costs incurred on or after July 17, 1997, for the
25    construction of water supplies and projects that fulfill
26    federal State Revolving Fund requirements for a green

 

 

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1    project reserve;
2        (4) to guarantee local obligations where such action
3    would improve credit market access or reduce interest
4    rates;
5        (5) as a source of revenue or security for the payment
6    of principal and interest on revenue or general obligation
7    bonds issued by the State or any political subdivision or
8    instrumentality thereof, if the proceeds of such bonds will
9    be deposited into the Fund;
10        (6) to transfer funds to the Water Pollution Control
11    Loan Program; and
12        (7) notwithstanding any other provision of this
13    subsection (d), to provide to local government units and
14    privately owned community water supplies any other
15    financial assistance that may be provided under Section
16    1452 of the federal Safe Drinking Water Act for any
17    expenditures eligible for assistance under that Section or
18    federal rules adopted to implement that Section.
19    (e) The Agency is designated as the administering agency of
20the Fund. The Agency shall submit to the Regional Administrator
21of the United States Environmental Protection Agency an
22intended use plan which outlines the proposed use of funds
23available to the State. The Agency shall take all actions
24necessary to secure to the State the benefits of the federal
25Water Pollution Control Act and the federal Safe Drinking Water
26Act, as now or hereafter amended.

 

 

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1    (f) The Agency shall have the power to enter into
2intergovernmental agreements with the federal government or
3the State, or any instrumentality thereof, for purposes of
4capitalizing the Water Revolving Fund. Moneys on deposit in the
5Water Revolving Fund may be used for the creation of reserve
6funds or pledged funds that secure the obligations of repayment
7of loans made pursuant to this Section. For the purpose of
8obtaining capital for deposit into the Water Revolving Fund,
9the Agency may also enter into agreements with financial
10institutions and other persons for the purpose of selling loans
11and developing a secondary market for such loans. The Agency
12shall have the power to create and establish such reserve funds
13and accounts as may be necessary or desirable to accomplish its
14purposes under this subsection and to allocate its available
15moneys into such funds and accounts. Investment earnings on
16moneys held in the Water Revolving Fund, including any reserve
17fund or pledged fund, shall be deposited into the Water
18Revolving Fund.
19    (g) Beginning on the effective date of this amendatory Act
20of the 101st General Assembly, and running for a period of 5
21years after that date, the Agency shall prioritize within its
22annual intended use plan the usage of a portion of the Agency's
23capitalization grant for federally authorized set-aside
24activities. The prioritization is for the purpose of supporting
25disadvantaged communities and utilities throughout Illinois in
26building their capacity for sustainable and equitable water

 

 

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1management. This may include, but is not limited to, assistance
2for water rate studies, preliminary engineering or other
3facility planning, training activities, asset management
4plans, assistance with identification and replacement of lead
5service lines, and studies of efficiency measures through
6utility regionalization or other collaborative
7intergovernmental approaches.
8(Source: P.A. 98-782, eff. 7-23-14; 99-187, eff. 7-29-15;
999-922, eff. 1-17-17.)".