SB1707 Engrossed LRB099 10940 MGM 31283 b
1		AN ACT concerning safety.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Environmental Protection Act is amended by
5		changing 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
9		Water Revolving Fund, consisting of 3 interest-bearing special
10		programs to be known as the Water Pollution Control Loan
11		Program, the Public Water Supply Loan Program, and the Loan
12		Support Program, which shall be used and administered by the
13		Agency.
14		(b) The Water Pollution Control Loan Program shall be used
15		and administered by the Agency to provide assistance for the
16		following 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

SB1707 Engrossed - 2 - LRB099 10940 MGM 31283 b
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

SB1707 Engrossed - 3 - LRB099 10940 MGM 31283 b
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

SB1707 Engrossed - 4 - LRB099 10940 MGM 31283 b
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
6		by 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

SB1707 Engrossed - 5 - LRB099 10940 MGM 31283 b
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
6		administered by the Agency to provide assistance to local
7		government units and privately owned community water supplies
8		for 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

SB1707 Engrossed - 6 - LRB099 10940 MGM 31283 b
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

SB1707 Engrossed - 7 - LRB099 10940 MGM 31283 b
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
7		the Fund. The Agency shall submit to the Regional Administrator
8		of the United States Environmental Protection Agency an
9		intended use plan which outlines the proposed use of funds
10		available to the State. The Agency shall take all actions
11		necessary to secure to the State the benefits of the federal
12		Water Pollution Control Act and the federal Safe Drinking Water
13		Act, as now or hereafter amended.
14		(f) The Agency shall have the power to enter into
15		intergovernmental agreements with the federal government or
16		the State, or any instrumentality thereof, for purposes of
17		capitalizing the Water Revolving Fund. Moneys on deposit in the
18		Water Revolving Fund may be used for the creation of reserve
19		funds or pledged funds that secure the obligations of repayment
20		of loans made pursuant to this Section. For the purpose of
21		obtaining capital for deposit into the Water Revolving Fund,
22		the Agency may also enter into agreements with financial
23		institutions and other persons for the purpose of selling loans
24		and developing a secondary market for such loans. The Agency
25		shall have the power to create and establish such reserve funds
26		and accounts as may be necessary or desirable to accomplish its

SB1707 Engrossed - 8 - LRB099 10940 MGM 31283 b
1		purposes under this subsection and to allocate its available
2		moneys into such funds and accounts. Investment earnings on
3		moneys held in the Water Revolving Fund, including any reserve
4		fund or pledged fund, shall be deposited into the Water
5		Revolving Fund.
6		(Source: P.A. 98-782, eff. 7-23-14.)
7		Section 99. Effective date. This Act takes effect upon
8		becoming law.