Bill Text: IL SB1919 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Environmental Protection Act. Provides that an eligible local government unit with a population that is greater than or equal to 150,000 is not eligible for the forgiveness of principal through the Water Pollution Control Loan Program, the Public Water Supply Loan Program, or the Loan Support Program.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2025-06-02 - Rule 3-9(a) / Re-referred to Assignments [SB1919 Detail]

Download: Illinois-2025-SB1919-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1919 Introduced 2/6/2025, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED:
415 ILCS 5/19.3 from Ch. 111 1/2, par. 1019.3
Amends the Environmental Protection Act. Provides that an eligible local government unit with a population that is greater than or equal to 150,000 is not eligible for the forgiveness of principal through the Water Pollution Control Loan Program, the Public Water Supply Loan Program, or the Loan Support Program.
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A BILL FOR
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AN ACT concerning safety.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Environmental Protection Act is amended by
changing Section 19.3 as follows:
(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
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

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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;
(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
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

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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
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

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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;
(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

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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
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

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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
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

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bonds issued by the State or any political subdivision or
instrumentality thereof, if the proceeds of such bonds
will be deposited into the Fund;
(6) to transfer funds to the Water Pollution Control
Loan Program; and
(7) notwithstanding any other provision of this
subsection (d), to provide to local government units and
privately owned community water supplies any other
financial assistance that may be provided under Section
1452 of the federal Safe Drinking Water Act for any
expenditures eligible for assistance under that Section or
federal rules adopted to implement that Section.
(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 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

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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.
(g) Beginning on the effective date of this amendatory Act
of the 101st General Assembly, and running for a period of 5
years after that date, the Agency shall prioritize within its
annual intended use plan the usage of a portion of the Agency's
capitalization grant for federally authorized set-aside
activities. The prioritization is for the purpose of
supporting disadvantaged communities and utilities throughout
Illinois in building their capacity for sustainable and
equitable water management. This may include, but is not
limited to, assistance for water rate studies, preliminary
engineering or other facility planning, training activities,
asset management plans, assistance with identification and
replacement of lead service lines, and studies of efficiency
measures through utility regionalization or other

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collaborative intergovernmental approaches.
(h) Notwithstanding any other provision of this Section,
an eligible local government unit with a population that is
greater than or equal to 150,000 is not eligible for the
forgiveness of principal through the Water Pollution Control
Loan Program, the Public Water Supply Loan Program, or the
Loan Support Program.
(Source: P.A. 101-143, eff. 1-1-20.)