Bill Amendment: IL SB0550 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

---

Bill Title: SAFETY-TECH

Status: 2017-01-11 - Sent to the Governor [SB0550 Detail]

Download: Illinois-2015-SB0550-Senate_Amendment_003.html

---

Sen. Heather A. Steans

Filed: 5/29/2016

09900SB0550sam003 LRB099 03301 MJP 49375 a
AMENDMENT TO SENATE BILL 550
AMENDMENT NO. ______. Amend Senate Bill 550 by replacing
everything after the enacting clause with the following:
"Section 5. The Department of Public Health Act is amended
by adding Section 5.2 as follows:
(20 ILCS 2305/5.2 new)
Sec. 5.2. Identification of plumbing-related lead hazards
in schools. To protect children and other members of the public
from any threat to public health that might be posed by lead in
drinking water at schools, the Department of Public Health
shall, as soon as practicable after the effective date of this
amendatory Act of the 99th General Assembly but no later than
June 30, 2018, adopt rules that (i) establish a program to
identify, in each school in the State, any lead service line or
lead-bearing plumbing that is a lead hazard, as defined in
Section 2 of the Lead Poisoning Prevention Act, and (ii)

09900SB0550sam003 - 2 - LRB099 03301 MJP 49375 a
require the mitigation of those lead hazards within a
reasonable time after their identification.
Section 10. The Environmental Protection Act is amended by
changing Sections 19.3 and 19.4 and by adding Section 17.11 as
follows:
(415 ILCS 5/17.11 new)
Sec. 17.11. Lead in drinking water prevention.
(a) For the purposes of this Section:
"First-draw sample" means one liter of water volume
collected at a source of potable water and prior to the
sample there must be a minimum of 6 hours during which
there is no water used from the source of potable water or
any sources adjacent or close to that source.
"Non-source origination community water system" means
a community water system owned by a city, village, or
incorporated town that receives improved water from a
source origination community water system and distributes
that water outside the corporate limits of the city,
village, or incorporated town that owns the source
origination community water system.
"Potentially affected residence" means any residence
where water service is or may be temporarily interrupted or
shut off by the community water supply because the supply
is carrying out construction or repair work.

09900SB0550sam003 - 3 - LRB099 03301 MJP 49375 a
"School" means any school district or public, private,
charter, or nonpublic day or residential educational
institution, constructed prior to 1987 that provides
education from pre-kindergarten through grade 5 and
receives water from a community water supply.
"Source of potable water" means the point at which
non-bottled water exits any tap, faucet, drinking
fountain, or similar point of use regularly ingested by
children or used for food preparation.
"Source origination community water system" means a
community water system owned by a city, village, or
incorporated town that operates a waterworks whereby a
source of water from a lake, river, or other source is
treated at the waterworks and furnished to a non-source
origination community water system that operates outside
the corporate limits of the city, village, or incorporated
town.
(b) Prior to December 31, 2019, schools shall collect and
the owner or operator of a community water supply shall analyze
for lead a first-draw sample from representative sources of
potable water located at each school within the community water
supply distribution system. Representative sources of potable
water shall include at least one sample from each unique model
of drinking fountain or fixture that provides potable water.
The community water supply shall provide the school with
technical assistance to determine the sampling locations that

09900SB0550sam003 - 4 - LRB099 03301 MJP 49375 a
are most representative of the sources of potable water at each
school. The community water supply shall supply each school
with the sampling instructions and equipment necessary to
collect all required lead samples. Lead sampling results
obtained shall not be used for purposes of determining
compliance with the Board rules that implement the national
primary drinking water regulations for lead and copper. The
community water supply shall submit all lead sampling results
to the school and the Department of Public Health within 7
business days of receipt of the results. If any sample exceeds
the lead action level of 15 parts per billion (15 micrograms
per liter), the school shall promptly notify the parents or
legal guardians of all enrolled students of the exceedance and
its location within the school and direct them to the United
States Environmental Protection Agency's website for
information about lead in drinking water.
An investor-owned water utility shall be allowed to
annually recover expenditures associated with this Section
through its rates.
(c) Within 180 days after the effective date of this
amendatory Act of the 99th General Assembly, the owner or
operator of a community water supply shall develop and submit
to the Department of Public Health a plan to compile a
comprehensive inventory of all lead service lines within the
community water supply distribution system including privately
owned lead service lines. At a minimum, the plan shall include:

09900SB0550sam003 - 5 - LRB099 03301 MJP 49375 a
(1) a procedure for determining whether any water
service lines exposed as a result of construction or
excavation by the community water supply or any other
public utility are made of lead; and
(2) a procedure by which the owner or operator of the
community water supply will update the information in its
lead service line inventory on at least an annual basis.
The owner or operator of a community water supply shall
implement the lead service line inventory development plan in
accordance with its terms.
(d) On or before April 15 of each year, the owner or
operator of a community water supply shall submit to the
Department of Public Health an inventory of all known lead
service lines within its community water supply distribution
system, including privately owned lead service lines current
through at least the end of the previous calendar year. The
lead service line inventory shall separately identify the lead
service lines that were added to the inventory after the
previous year's submission and shall include a summary that
provides:
(1) the total number of service lines within the
community water supply distribution system;
(2) the percentage of service lines that are known to
contain lead;
(3) the percentage of service lines that are known to
be of a material other than lead; and

09900SB0550sam003 - 6 - LRB099 03301 MJP 49375 a
(4) the percentage of service lines added to the
inventory after the previous submission of the annual lead
service line inventory.
(e) Beginning January 1, 2017, when conducting routine
inspections of community water supplies as required under this
Act, the Agency may conduct a separate audit to identify
progress that the community water supply has made toward
completing the material inventories required under this
Section.
(f) The owner or operator of a community water supply shall
promptly notify the owners and occupants of a residence where
sampling results show lead levels in any individual tap sample
exceed 15 parts per billion (15 micrograms per liter) and shall
also provide public education materials comparable in content
to the public education materials that the Board rules require
to be delivered when a supplier exceeds the lead action level.
(g) The owner or operator of a community water supply
shall, 14 days prior to beginning planned work to repair or
replace any water mains or lead service lines, notify the
owners and occupants of all potentially affected residences of
the planned work. In cases where a community water supply must
perform construction or repair work on an emergency basis or
where such work is not scheduled at least 14 days prior to work
taking place, the community water supply shall notify
potentially affected residences as soon as reasonably
possible. When work is to repair or replace a water meter, the

09900SB0550sam003 - 7 - LRB099 03301 MJP 49375 a
notification shall be provided at the time the work is
initiated. The notification shall include:
(1) a warning that the work may result in sediment,
possibly containing lead, in the residence's water supply;
and
(2) information concerning best practices for
preventing the consumption of any lead in drinking water,
including a recommendation to flush water lines during and
after the completion of the repair or replacement work and
to clean faucet aerator screens.
(h) A source origination community water system's
obligation to comply with this Section is limited
geographically to any and all activity that occurs within the
corporate limits of the city, village, or incorporated town
that owns or operates the source origination community water
system. Once a source origination community water system has
furnished water to a non-source origination community water
system, it is the sole responsibility of that system to comply
with and implement the provisions of this Section. Nothing in
this Section shall relieve a community water system of its
obligations under the Public Water Supply Operations Act.
(415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)
Sec. 19.3. Water Revolving Fund.
(a) There is hereby created within the State Treasury a
Water Revolving Fund, consisting of 3 interest-bearing special

09900SB0550sam003 - 8 - LRB099 03301 MJP 49375 a
programs to be known as the Water Pollution Control Loan
Program, the Public Water Supply Loan Program, and the Loan
Support Program, which shall be used and administered by the
Agency.
(b) The Water Pollution Control Loan Program shall be used
and administered by the Agency to provide assistance for the
following purposes:
(1) to accept and retain funds from grant awards,
appropriations, transfers, and payments of interest and
principal;
(2) to make direct loans at or below market interest
rates and to provide additional subsidization, including,
but not limited to, forgiveness of principal, negative
interest rates, and grants, to any eligible local
government unit to finance the construction of treatments
works, including storm water treatment systems that are
treatment works, and projects that fulfill federal State
Revolving Fund grant requirements for a green project
reserve, and sampling and replacement of lead pipes and
fixtures in schools;
(2.5) with respect to funds provided under the American
Recovery and Reinvestment Act of 2009:
(A) to make direct loans at or below market
interest rates to any eligible local government unit
and to provide additional subsidization to any
eligible local government unit, including, but not

09900SB0550sam003 - 9 - LRB099 03301 MJP 49375 a
limited to, forgiveness of principal, negative
interest rates, and grants;
(B) to make direct loans at or below market
interest rates to any eligible local government unit to
buy or refinance debt obligations for treatment works
incurred on or after October 1, 2008; and
(C) to provide additional subsidization,
including, but not limited to, forgiveness of
principal, negative interest rates, and grants for
treatment works incurred on or after October 1, 2008;
(3) to make direct loans at or below market interest
rates and to provide additional subsidization, including,
but not limited to, forgiveness of principal, negative
interest rates, and grants, to any eligible local
government unit to buy or refinance debt obligations for
costs incurred after March 7, 1985, for the construction of
treatment works, including storm water treatment systems
that are treatment works, and projects that fulfill federal
State Revolving Fund grant requirements for a green project
reserve;
(3.5) to make loans, including, but not limited to,
loans through a linked deposit program, at or below market
interest rates for the implementation of a management
program established under Section 319 of the Federal Water
Pollution Control Act, as amended;
(4) to guarantee or purchase insurance for local

09900SB0550sam003 - 10 - LRB099 03301 MJP 49375 a
obligations where such action would improve credit market
access or reduce interest rates;
(5) as a source of revenue or security for the payment
of principal and interest on revenue or general obligation
bonds issued by the State or any political subdivision or
instrumentality thereof, if the proceeds of such bonds will
be deposited in the Fund;
(6) to finance the reasonable costs incurred by the
Agency in the administration of the Fund;
(7) to transfer funds to the Public Water Supply Loan
Program; and
(8) notwithstanding any other provision of this
subsection (b), to provide, in accordance with rules
adopted under this Title, any other financial assistance
that may be provided under Section 603 of the Federal Water
Pollution Control Act for any other projects or activities
eligible for assistance under that Section or federal rules
adopted to implement that Section.
(c) The Loan Support Program shall be used and administered
by the Agency for the following purposes:
(1) to accept and retain funds from grant awards and
appropriations;
(2) to finance the reasonable costs incurred by the
Agency in the administration of the Fund, including
activities under Title III of this Act, including the
administration of the State construction grant program;

09900SB0550sam003 - 11 - LRB099 03301 MJP 49375 a
(3) to transfer funds to the Water Pollution Control
Loan Program and the Public Water Supply Loan Program;
(4) to accept and retain a portion of the loan
repayments;
(5) to finance the development of the low interest loan
programs for water pollution control and public water
supply projects;
(6) to finance the reasonable costs incurred by the
Agency to provide technical assistance for public water
supplies; and
(7) to finance the reasonable costs incurred by the
Agency for public water system supervision programs, to
administer or provide for technical assistance through
source water protection programs, to develop and implement
a capacity development strategy, to delineate and assess
source water protection areas, and for an operator
certification program in accordance with Section 1452 of
the federal Safe Drinking Water Act.
(d) The Public Water Supply Loan Program shall be used and
administered by the Agency to provide assistance to local
government units and privately owned community water supplies
for public water supplies for the following public purposes:
(1) to accept and retain funds from grant awards,
appropriations, transfers, and payments of interest and
principal;
(2) to make direct loans at or below market interest

09900SB0550sam003 - 12 - LRB099 03301 MJP 49375 a
rates and to provide additional subsidization, including,
but not limited to, forgiveness of principal, negative
interest rates, and grants, to any eligible local
government unit or to any eligible privately owned
community water supply to finance the construction of water
supplies and projects that fulfill federal State Revolving
Fund grant requirements for a green project reserve;
(2.5) with respect to funds provided under the American
Recovery and Reinvestment Act of 2009:
(A) to make direct loans at or below market
interest rates to any eligible local government unit or
to any eligible privately owned community water
supply, and to provide additional subsidization to any
eligible local government unit or to any eligible
privately owned community water supply, including, but
not limited to, forgiveness of principal, negative
interest rates, and grants;
(B) to buy or refinance the debt obligation of a
local government unit for costs incurred on or after
October 1, 2008; and
(C) to provide additional subsidization,
including, but not limited to, forgiveness of
principal, negative interest rates, and grants for a
local government unit for costs incurred on or after
October 1, 2008;
(3) to make direct loans at or below market interest

09900SB0550sam003 - 13 - LRB099 03301 MJP 49375 a
rates and to provide additional subsidization, including,
but not limited to, forgiveness of principal, negative
interest rates, and grants, to any eligible local
government unit or to any eligible privately owned
community water supply to buy or refinance debt obligations
for costs incurred on or after July 17, 1997, for the
construction of water supplies and projects that fulfill
federal State Revolving Fund requirements for a green
project reserve;
(4) to guarantee local obligations where such action
would improve credit market access or reduce interest
rates;
(5) as a source of revenue or security for the payment
of principal and interest on revenue or general obligation
bonds issued by the State or any political subdivision or
instrumentality thereof, if the proceeds of such bonds will
be deposited into the Fund; and
(6) to transfer funds to the Water Pollution Control
Loan Program.
(e) The Agency is designated as the administering agency of
the Fund. The Agency shall submit to the Regional Administrator
of the United States Environmental Protection Agency an
intended use plan which outlines the proposed use of funds
available to the State. The Agency shall take all actions
necessary to secure to the State the benefits of the federal
Water Pollution Control Act and the federal Safe Drinking Water

09900SB0550sam003 - 14 - LRB099 03301 MJP 49375 a
Act, as now or hereafter amended.
(f) The Agency shall have the power to enter into
intergovernmental agreements with the federal government or
the State, or any instrumentality thereof, for purposes of
capitalizing the Water Revolving Fund. Moneys on deposit in the
Water Revolving Fund may be used for the creation of reserve
funds or pledged funds that secure the obligations of repayment
of loans made pursuant to this Section. For the purpose of
obtaining capital for deposit into the Water Revolving Fund,
the Agency may also enter into agreements with financial
institutions and other persons for the purpose of selling loans
and developing a secondary market for such loans. The Agency
shall have the power to create and establish such reserve funds
and accounts as may be necessary or desirable to accomplish its
purposes under this subsection and to allocate its available
moneys into such funds and accounts. Investment earnings on
moneys held in the Water Revolving Fund, including any reserve
fund or pledged fund, shall be deposited into the Water
Revolving Fund.
(Source: P.A. 98-782, eff. 7-23-14; 99-187, eff. 7-29-15.)
(415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)
Sec. 19.4. Regulations; priorities.
(a) The Agency shall have the authority to promulgate
regulations for the administration of this Title, including,
but not limited to, rules setting forth procedures and criteria

09900SB0550sam003 - 15 - LRB099 03301 MJP 49375 a
concerning loan applications and the issuance of loans. For
loans to units of local government, the regulations shall
include, but need not be limited to, the following elements:
(1) loan application requirements;
(2) determination of credit worthiness of the loan
applicant;
(3) special loan terms, as necessary, for securing the
repayment of the loan;
(4) assurance of payment;
(5) interest rates;
(6) loan support rates;
(7) impact on user charges;
(8) eligibility of proposed construction;
(9) priority of needs;
(10) special loan terms for disadvantaged communities;
(11) maximum limits on annual distributions of funds to
applicants or groups of applicants;
(12) penalties for noncompliance with loan
requirements and conditions, including stop-work orders,
termination, and recovery of loan funds; and
(13) indemnification of the State of Illinois and the
Agency by the loan recipient.
(b) The Agency shall have the authority to promulgate
regulations to set forth procedures and criteria concerning
loan applications for loan recipients other than units of local
government. In addition to all of the elements required for

09900SB0550sam003 - 16 - LRB099 03301 MJP 49375 a
units of local government under subsection (a), the regulations
shall include, but need not be limited to, the following
elements:
(1) types of security required for the loan;
(2) types of collateral, as necessary, that can be
pledged for the loan; and
(3) staged access to fund privately owned community
water supplies.
(c) Rules adopted under this Title shall also include, but
shall not be limited to, criteria for prioritizing the issuance
of loans under this Title according to applicant need. Priority
in making loans from the Public Water Supply Loan Program must
first be given to local government units and privately owned
community water supplies that need to make capital improvements
to protect human health and to achieve compliance with the
State and federal primary drinking water standards adopted
pursuant to this Act and the federal Safe Drinking Water Act,
as now and hereafter amended. Rules for prioritizing loans from
the Water Pollution Control Loan Program may include, but shall
not be limited to, criteria designed to encourage green
infrastructure, water efficiency, environmentally innovative
projects, and nutrient pollution removal, and lead sampling and
removal.
(d) The Agency shall have the authority to promulgate
regulations to set forth procedures and criteria concerning
loan applications for funds provided under the American

09900SB0550sam003 - 17 - LRB099 03301 MJP 49375 a
Recovery and Reinvestment Act of 2009. In addition, due to time
constraints in the American Recovery and Reinvestment Act of
2009, the Agency shall adopt emergency rules as necessary to
allow the timely administration of funds provided under the
American Recovery and Reinvestment Act of 2009. Emergency rules
adopted under this subsection (d) shall be adopted in
accordance with Section 5-45 of the Illinois Administrative
Procedure Act.
(e) The Agency may adopt rules to create a linked deposit
loan program through which loans made pursuant to paragraph
(3.5) of subsection (b) of Section 19.3 may be made through
private lenders. Rules adopted under this subsection (e) shall
include, but shall not be limited to, provisions requiring
private lenders, prior to disbursing loan proceeds through the
linked deposit loan program, to verify that the loan recipients
have been approved by the Agency for financing under paragraph
(3.5) of subsection (b) of Section 19.3.
(Source: P.A. 98-782, eff. 7-23-14.)
Section 99. Effective date. This Act takes effect upon
becoming law.".