Sen. Dan Kotowski

Filed: 3/18/2014

 

 


 

 


 
09800SB2780sam001LRB098 19511 MGM 57118 a

1
AMENDMENT TO SENATE BILL 2780

2    AMENDMENT NO. ______. Amend Senate Bill 2780 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Environmental Protection Act is amended by
5changing Sections 19.1, 19.2, 19.3, and 19.4 as follows:
 
6    (415 ILCS 5/19.1)  (from Ch. 111 1/2, par. 1019.1)
7    Sec. 19.1. Legislative findings. The General Assembly
8finds:
9    (a) that local government units require assistance in
10financing the construction of water wastewater treatment works
11and projects in order to comply with the State's program of
12environmental protection and federally mandated requirements;
13    (b) that the federal Water Quality Act of 1987 provides an
14important source of grant awards to the State for providing
15assistance to local government units through the Water
16Pollution Control Loan Program;

 

 

09800SB2780sam001- 2 -LRB098 19511 MGM 57118 a

1    (c) that local government units and privately owned
2community water supplies require assistance in financing the
3construction of their public water supplies to comply with
4State and federal drinking water laws and regulations;
5    (d) that the federal Safe Drinking Water Act ("SDWA"), P.L.
693-523, as now or hereafter amended, provides an important
7source of capitalization grant awards to the State to provide
8assistance to local government units and privately owned
9community water supplies through the Public Water Supply Loan
10Program;
11    (e) that violations of State and federal drinking water
12standards threaten the public interest, safety, and welfare,
13which demands that the Illinois Environmental Protection
14Agency expeditiously adopt emergency rules to administer the
15Public Water Supply Loan Program;
16    (f) that the General Assembly agrees with the conclusions
17and recommendations of the "Report to the Illinois General
18Assembly on the Issue of Expanding Public Water Supply Loan
19Eligibility to Privately Owned Community Water Supplies",
20dated August 1998, including the stated access to the Public
21Water Supply Loan Program by the privately owned public water
22supplies so that the long term integrity and viability of the
23corpus of the Fund will be assured; and
24    (g) that the American Recovery and Reinvestment Act of 2009
25provides a source of capitalization grant awards to the State
26to provide loans and additional subsidization, including, but

 

 

09800SB2780sam001- 3 -LRB098 19511 MGM 57118 a

1not limited to, forgiveness of principal, negative interest
2loans, and grants, to local government units through the Water
3Pollution Control Loan Program and to local government units
4and privately owned community water supplies through the Public
5Water Supply Loan Program; .
6    (h) that expanding eligibility to include publicly owned
7municipal storm water projects eligible for financing as
8treatment works, as defined under Section 212 of the Federal
9Water Pollution Control Act, will provide the Agency with the
10statutory authority to use moneys in the Water Pollution
11Control Loan Program to provide financial assistance for
12eligible projects, including those that encourage green
13infrastructure, that manage and treat storm water, and that
14maintain and restore natural hydrology by infiltrating,
15evapotranspiring, and capturing and using storm water;
16    (i) that in planning projects for which financing will be
17sought from the Water Pollution Control Loan Program,
18municipalities may benefit from efforts to consider a project's
19lifetime costs; the availability of long-term funding for the
20construction, operation, maintenance, and replacement of the
21project; the resilience of the project to the effects of
22climate change; the project's ability to increase water
23efficiency; the capacity of the project to restore natural
24hydrology or to preserve or restore landscape features; the
25cost-effectiveness of the project; and the overall
26environmental innovativeness of the project; and

 

 

09800SB2780sam001- 4 -LRB098 19511 MGM 57118 a

1    (j) that projects implementing a management program
2established under Section 319 of the Federal Water Pollution
3Control Act may benefit from the creation of a linked deposit
4program that would make loans available at or below market
5interest rates through private lenders.
6(Source: P.A. 96-8, eff. 4-28-09.)
 
7    (415 ILCS 5/19.2)  (from Ch. 111 1/2, par. 1019.2)
8    Sec. 19.2. As used in this Title, unless the context
9clearly requires otherwise:
10    (a) "Agency" means the Illinois Environmental Protection
11Agency.
12    (b) "Fund" means the Water Revolving Fund created pursuant
13to this Title, consisting of the Water Pollution Control Loan
14Program, the Public Water Supply Loan Program, and the Loan
15Support Program.
16    (c) "Loan" means a loan made from the Water Pollution
17Control Loan Program or the Public Water Supply Loan Program to
18an eligible applicant as a result of a contractual agreement
19between the Agency and such applicant.
20    (d) "Construction" means any one or more of the following
21which is undertaken for a public purpose: preliminary planning
22to determine the feasibility of the treatment works or public
23water supply, engineering, architectural, legal, fiscal or
24economic investigations or studies, surveys, designs, plans,
25working drawings, specifications, procedures or other

 

 

09800SB2780sam001- 5 -LRB098 19511 MGM 57118 a

1necessary actions, erection, building, acquisition,
2alteration, remodeling, improvement or extension of treatment
3works or public water supplies, or the inspection or
4supervision of any of the foregoing items. "Construction" also
5includes implementation of source water quality protection
6measures and establishment and implementation of wellhead
7protection programs in accordance with Section 1452(k)(1) of
8the federal Safe Drinking Water Act.
9    (e) "Intended use plan" means a plan which includes a
10description of the short and long term goals and objectives of
11the Water Pollution Control Loan Program and the Public Water
12Supply Loan Program, project categories, discharge
13requirements, terms of financial assistance and the loan
14applicants to be served.
15    (f) "Treatment works" means treatment works, as defined in
16Section 212 of the Federal Water Pollution Control Act,
17including, but not limited to, the following: any devices and
18systems owned by a local government unit and used in the
19storage, treatment, recycling, and reclamation of sewerage or
20industrial wastes of a liquid nature, including intercepting
21sewers, outfall sewers, sewage collection systems, pumping
22power and other equipment, and appurtenances; extensions,
23improvements, remodeling, additions, and alterations thereof;
24elements essential to provide a reliable recycled supply, such
25as standby treatment units and clear well facilities; and any
26works, including site acquisition of the land that will be an

 

 

09800SB2780sam001- 6 -LRB098 19511 MGM 57118 a

1integral part of the treatment process for wastewater
2facilities; and any other method or system for preventing,
3abating, reducing, storing, treating, separating, or disposing
4of municipal waste, including storm water runoff, or industrial
5waste, including waste in combined storm water and sanitary
6sewer systems as those terms are defined in the Federal Water
7Pollution Control Act.
8    (g) "Local government unit" means a county, municipality,
9township, municipal or county sewerage or utility authority,
10sanitary district, public water district, improvement
11authority or any other political subdivision whose primary
12purpose is to construct, operate and maintain wastewater
13treatment facilities, including storm water treatment systems,
14or public water supply facilities or both.
15    (h) "Privately owned community water supply" means:
16        (1) an investor-owned water utility, if under Illinois
17    Commerce Commission regulation and operating as a separate
18    and distinct water utility;
19        (2) a not-for-profit water corporation, if operating
20    specifically as a water utility; and
21        (3) a mutually owned or cooperatively owned community
22    water system, if operating as a separate water utility.
23(Source: P.A. 91-36, eff. 6-15-99; 91-52, eff. 6-30-99; 91-501,
24eff. 8-13-99; 92-16, eff. 6-28-01.)
 
25    (415 ILCS 5/19.3)  (from Ch. 111 1/2, par. 1019.3)

 

 

09800SB2780sam001- 7 -LRB098 19511 MGM 57118 a

1    Sec. 19.3. Water Revolving Fund.
2    (a) There is hereby created within the State Treasury a
3Water Revolving Fund, consisting of 3 interest-bearing special
4programs to be known as the Water Pollution Control Loan
5Program, the Public Water Supply Loan Program, and the Loan
6Support Program, which shall be used and administered by the
7Agency.
8    (b) The Water Pollution Control Loan Program shall be used
9and administered by the Agency to provide assistance for the
10following purposes:
11        (1) to accept and retain funds from grant awards,
12    appropriations, transfers, and payments of interest and
13    principal;
14        (2) to make direct loans at or below market interest
15    rates and to provide additional subsidization, including,
16    but not limited to, forgiveness of principal, negative
17    interest rates, and grants, to any eligible local
18    government unit to finance the construction of wastewater
19    treatments works, including storm water treatment systems
20    that are treatment works, and projects that fulfill federal
21    State Revolving Fund grant requirements for a green project
22    reserve;
23        (2.5) with respect to funds provided under the American
24    Recovery and Reinvestment Act of 2009:
25            (A) to make direct loans at or below market
26        interest rates to any eligible local government unit

 

 

09800SB2780sam001- 8 -LRB098 19511 MGM 57118 a

1        and to provide additional subsidization to any
2        eligible local government unit, including, but not
3        limited to, forgiveness of principal, negative
4        interest rates, and grants;
5            (B) to make direct loans at or below market
6        interest rates to any eligible local government unit to
7        buy or refinance debt obligations for treatment works
8        incurred on or after October 1, 2008; and
9            (C) to provide additional subsidization,
10        including, but not limited to, forgiveness of
11        principal, negative interest rates, and grants for
12        treatment works incurred on or after October 1, 2008;
13        (3) to make direct loans at or below market interest
14    rates and to provide additional subsidization, including,
15    but not limited to, forgiveness of principal, negative
16    interest rates, and grants, to any eligible local
17    government unit to buy or refinance debt obligations for
18    costs incurred after March 7, 1985, for the construction of
19    wastewater treatment works, including storm water
20    treatment systems that are treatment works, and projects
21    that fulfill federal State Revolving Fund grant
22    requirements for a green project reserve;
23        (3.5) to make direct loans, including, but not limited
24    to, loans through a linked deposit program, at or below
25    market interest rates for the implementation of a
26    management program established under Section 319 of the

 

 

09800SB2780sam001- 9 -LRB098 19511 MGM 57118 a

1    Federal Water Pollution Control Act, as amended;
2        (4) to guarantee or purchase insurance for local
3    obligations where such action would improve credit market
4    access or reduce interest 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 in the Fund;
10        (6) to finance the reasonable costs incurred by the
11    Agency in the administration of the Fund; and
12        (7) to transfer funds to the Public Water Supply Loan
13    Program; and .
14        (8) notwithstanding any other provision of this
15    subsection (b), to provide, in accordance with rules
16    adopted under this Title, any financial assistance that may
17    be provided under Section 603 of the Federal Water
18    Pollution Control Act for any projects eligible for
19    assistance under subsections (c)(1) or (c)(2) of that
20    Section or federal rules adopted under those subsections.
21    (c) The Loan Support Program shall be used and administered
22by the Agency for the following purposes:
23        (1) to accept and retain funds from grant awards and
24    appropriations;
25        (2) to finance the reasonable costs incurred by the
26    Agency in the administration of the Fund, including

 

 

09800SB2780sam001- 10 -LRB098 19511 MGM 57118 a

1    activities under Title III of this Act, including the
2    administration of the State construction grant program;
3        (3) to transfer funds to the Water Pollution Control
4    Loan Program and the Public Water Supply Loan Program;
5        (4) to accept and retain a portion of the loan
6    repayments;
7        (5) to finance the development of the low interest loan
8    programs for water pollution control and public water
9    supply projects;
10        (6) to finance the reasonable costs incurred by the
11    Agency to provide technical assistance for public water
12    supplies; and
13        (7) to finance the reasonable costs incurred by the
14    Agency for public water system supervision programs, to
15    administer or provide for technical assistance through
16    source water protection programs, to develop and implement
17    a capacity development strategy, to delineate and assess
18    source water protection areas, and for an operator
19    certification program in accordance with Section 1452 of
20    the federal Safe Drinking Water Act.
21    (d) The Public Water Supply Loan Program shall be used and
22administered by the Agency to provide assistance to local
23government units and privately owned community water supplies
24for public water supplies for the following public purposes:
25        (1) to accept and retain funds from grant awards,
26    appropriations, transfers, and payments of interest and

 

 

09800SB2780sam001- 11 -LRB098 19511 MGM 57118 a

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

 

 

09800SB2780sam001- 12 -LRB098 19511 MGM 57118 a

1        October 1, 2008;
2        (3) to make direct loans at or below market interest
3    rates and to provide additional subsidization, including,
4    but not limited to, forgiveness of principal, negative
5    interest rates, and grants, to any eligible local
6    government unit or to any eligible privately owned
7    community water supply to buy or refinance debt obligations
8    for costs incurred on or after July 17, 1997, for the
9    construction of water supplies and projects that fulfill
10    federal State Revolving Fund requirements for a green
11    project reserve;
12        (4) to guarantee local obligations where such action
13    would improve credit market access or reduce interest
14    rates;
15        (5) as a source of revenue or security for the payment
16    of principal and interest on revenue or general obligation
17    bonds issued by the State or any political subdivision or
18    instrumentality thereof, if the proceeds of such bonds will
19    be deposited into the Fund; and
20        (6) to transfer funds to the Water Pollution Control
21    Loan Program.
22    (e) The Agency is designated as the administering agency of
23the Fund. The Agency shall submit to the Regional Administrator
24of the United States Environmental Protection Agency an
25intended use plan which outlines the proposed use of funds
26available to the State. The Agency shall take all actions

 

 

09800SB2780sam001- 13 -LRB098 19511 MGM 57118 a

1necessary to secure to the State the benefits of the federal
2Water Pollution Control Act and the federal Safe Drinking Water
3Act, as now or hereafter amended.
4    (f) The Agency shall have the power to enter into
5intergovernmental agreements with the federal government or
6the State, or any instrumentality thereof, for purposes of
7capitalizing the Water Revolving Fund. Moneys on deposit in the
8Water Revolving Fund may be used for the creation of reserve
9funds or pledged funds that secure the obligations of repayment
10of loans made pursuant to this Section. For the purpose of
11obtaining capital for deposit into the Water Revolving Fund,
12the Agency may also enter into agreements with financial
13institutions and other persons for the purpose of selling loans
14and developing a secondary market for such loans. The Agency
15shall have the power to create and establish such reserve funds
16and accounts as may be necessary or desirable to accomplish its
17purposes under this subsection and to allocate its available
18moneys into such funds and accounts. Investment earnings on
19moneys held in the Water Revolving Fund, including any reserve
20fund or pledged fund, shall be deposited into the Water
21Revolving Fund.
22(Source: P.A. 96-8, eff. 4-28-09; 96-917, eff. 6-9-10.)
 
23    (415 ILCS 5/19.4)  (from Ch. 111 1/2, par. 1019.4)
24    Sec. 19.4. Regulations; priorities.
25    (a) The Agency shall have the authority to promulgate

 

 

09800SB2780sam001- 14 -LRB098 19511 MGM 57118 a

1regulations for the administration of this Title, including,
2but not limited to, rules setting to set forth procedures and
3criteria concerning loan applications and the issuance of
4loans. For loans to units of local government, the regulations
5shall include, but need not be limited to, the following
6elements:
7        (1) loan application requirements;
8        (2) determination of credit worthiness of the loan
9    applicant;
10        (3) special loan terms, as necessary, for securing the
11    repayment of the loan;
12        (4) assurance of payment;
13        (5) interest rates;
14        (6) loan support rates;
15        (7) impact on user charges;
16        (8) eligibility of proposed construction;
17        (9) priority of needs;
18        (10) special loan terms for disadvantaged communities;
19        (11) maximum limits on annual distributions of funds to
20    applicants or groups of applicants;
21        (12) penalties for noncompliance with loan
22    requirements and conditions, including stop-work orders,
23    termination, and recovery of loan funds; and
24        (13) indemnification of the State of Illinois and the
25    Agency by the loan recipient.
26    (b) The Agency shall have the authority to promulgate

 

 

09800SB2780sam001- 15 -LRB098 19511 MGM 57118 a

1regulations to set forth procedures and criteria concerning
2loan applications for loan recipients other than units of local
3government. In addition to all of the elements required for
4units of local government under subsection (a), the regulations
5shall include, but need not be limited to, the following
6elements:
7        (1) types of security required for the loan;
8        (2) types of collateral, as necessary, that can be
9    pledged for the loan; and
10        (3) staged access to fund privately owned community
11    water supplies.
12    (c) Rules adopted under this Title shall also include, but
13shall not be limited to, criteria for prioritizing the issuance
14of loans under this Title according to applicant need. The
15Agency shall develop and maintain a priority list of loan
16applicants as categorized by need. Priority in making loans
17from the Public Water Supply Loan Program must first be given
18to local government units and privately owned community water
19supplies that need to make capital improvements to protect
20human health and to achieve compliance with the State and
21federal primary drinking water standards adopted pursuant to
22this Act and the federal Safe Drinking Water Act, as now and
23hereafter amended. Rules for prioritizing loans from the Water
24Pollution Control Loan Program may include, but shall not be
25limited to, criteria designed to encourage green
26infrastructure, water efficiency, environmentally innovative

 

 

09800SB2780sam001- 16 -LRB098 19511 MGM 57118 a

1projects, and nutrient pollution removal.
2    (d) The Agency shall have the authority to promulgate
3regulations to set forth procedures and criteria concerning
4loan applications for funds provided under the American
5Recovery and Reinvestment Act of 2009. In addition, due to time
6constraints in the American Recovery and Reinvestment Act of
72009, the Agency shall adopt emergency rules as necessary to
8allow the timely administration of funds provided under the
9American Recovery and Reinvestment Act of 2009. Emergency rules
10adopted under this subsection (d) shall be adopted in
11accordance with Section 5-45 of the Illinois Administrative
12Procedure Act.
13    (e) The Agency may adopt rules to create a linked deposit
14loan program through which loans made pursuant to paragraph
15(3.5) of subsection (b) of Section 19.3 may be made through
16private lenders. Rules adopted under this subsection (e) shall
17include, but shall not be limited to, provisions requiring
18private lenders, prior to disbursing loan proceeds through the
19linked deposit loan program, to verify that the loan recipients
20have been approved by the Agency for financing under paragraph
21(3.5) of subsection (b) of Section 19.3.
22(Source: P.A. 96-8, eff. 4-28-09.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.".