Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 663 - PROCEDURES FOR ISSUING LOANS FROM THE PUBLIC WATER SUPPLY LOAN PROGRAM TO PROVIDE FUNDING FOR LEAD SERVICE LINE REPLACEMENT › Subpart A - INTRODUCTION › Section 663.120 - Safe Drinking Water Act Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Public Water Supply Loan Program is
				administered by the Agency in accordance with the Safe Drinking Water Act and
				the Illinois Environmental Protection Act.
b) The LSLR Capitalization Grant Agreement
				between the Agency and USEPA contains or incorporates by reference the
				following:
1) the Operating Agreement between
				USEPA and the Agency that contains the organization, administrative framework,
				and procedures of the PWSLP that are not expected to change annually;
2) the Agency's Intended Use Plan;
3) agreed upon payment schedule between USEPA
				and the Agency;
4) the Agency's
				State environmental review process; and
5) the Agency's agreement to the following:
A) to accept grant payments in accordance
				with a negotiated payment schedule;
B) to deposit into the Fund an amount that
				the State is obligated to match;
C)
				to make binding commitments in an amount equal to the amount of each
				capitalization grant payment and accompanying State match that is deposited
				into the Fund within one year after the receipt of each grant
				payment;
D) to expend all funds in
				an expeditious and timely manner;
E) to first use funds equaling the amount of
				the grant, all repayments of principal and payments of interest on the initial
				loans from the grant, and the State match to assure maintenance of progress, as
				determined by the Governor, toward compliance with national primary drinking
				water regulations applicable under SDWA section 1412 (42 U.S.C.
				300g-1) or otherwise significantly further
				the public health protection objectives of the SDWA;
F) to comply with the USEPA general
				assistance regulations in 2 CFR Part 1500 and the specific conditions of the
				capitalization grant;
G) to commit
				or expend each quarterly grant payment in accordance with State laws and
				procedures regarding the commitment or expenditure of revenue;
H) to use accounting, audit, and fiscal
				procedures conforming to generally accepted government accounting
				standards;
I) to require recipients
				under PWSLP to maintain projects and accounts in accordance with generally
				accepted government accounting standards, including standards relating to the
				reporting of infrastructure assets;
J) to complete and submit a biennial report
				that describes how it has met the goals and objectives of the previous two
				fiscal years as stated in the Intended Use Plans and capitalization grant
				agreements;
K) to establish,
				maintain, invest and credit the Fund with repayments so that the fund balance
				will be available in perpetuity for activities under the SDWA;
L) to use fees charged by the Agency to the
				recipients of assistance that are considered as program income for the purpose
				of financing of the cost of administering the PWSLP or financing projects or
				activities eligible for assistance under this Part;
M) to an annual audit of the PWSLP in
				accordance with the auditing procedures of the General Accounting Office
				(31 U.S.C.
				75);
N) to provide USEPA with documentation
				demonstrating that the Agency has adequate personnel and resources to establish
				and manage the PWSLP;
O) to
				promptly deposit PWSLP funds into appropriate accounts as follows:
i) deposit the portion of the capitalization
				grant to be used for projects into the Fund;
ii) maintain separate and identifiable
				accounts for the portion of the capitalization grant to be used for set-aside
				activities;
iii) deposit net bond
				proceeds, interest earnings, and repayments into the Fund; and
iv) deposit any fees, which include interest
				earned on fees, into the Fund or into separate and identifiable
				accounts;
P) to adopt
				policies and procedures to assure that loan recipients have a dedicated source
				of revenue for repayment of loans, or in the case of privately-owned systems,
				assure that recipients demonstrate that there is adequate security to assure
				repayment of loans;
Q) to use all
				funds in accordance with an Intended Use Plan that was prepared after providing
				for public review and comment;
R)
				to comply with all applicable federal cross-cutting authorities; and
S) to demonstrate how the Agency is complying
				with the requirements of capacity development authority, capacity development
				strategy, and operator certification program provisions in order to avoid
				withholdings of funds under 40 CFR 35.3515(b)(1)(i) through
				(b)(1)(iii).