Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 662 - PROCEDURES FOR ISSUING LOANS FROM THE PUBLIC WATER SUPPLY LOAN PROGRAM › Subpart A - INTRODUCTION › Section 662.110 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Unless specified otherwise in subsection (b), all terms shall
				  have the meanings set forth in the Environmental Protection Act (Act)
				  [415 ILCS
				  5 ] and the regulations adopted under that Act (35
				  Ill. Adm. Code: Subtitle F) and the federal Safe Drinking Water Act (SDWA), as
				  amended (42 U.S.C.
				  300j-12 et seq.).
For the purposes of this Part, the following definitions
				  apply:
Act - The Environmental Protection Act [415 ILCS 5
				  ].
Acute Violation - Exceedance of a maximum contaminant level
				  (MCL) or treatment technique requirement for a contaminant that would require
				  the owner or operator of the community water supply to issue a Tier 1 public
				  notice pursuant to 35 Ill. Adm. Code 611.
Addenda - Documents issued by the loan applicant after
				  advertisement for bids, by additions, deletions, clarifications, or
				  corrections.
Agency -
Illinois Environmental Protection
				  Agency
. [415 ILCS
				  5/19.2(a) ]
Asset Management Plan - Any system-wide plan that contains
				  the information on asset conditions, service levels, customer needs, and
				  financial resources to ensure the loan applicant can conduct planned
				  maintenance and repair, replace, and upgrade capital assets to reliably provide
				  quality service for the foreseeable future.
BABA Act - The portion of the BIL Act at Sections 70901
				  through 70952 (Public Law
				  117-58;
				  41 U.S.C.
				  8301 note) also known as the Build America
				  Buy America Act.
BIL Act - The Bipartisan Infrastructure Law (Public Law
				  117-58) also known as the Infrastructure
				  Investment and Jobs Act of 2021 or IIJA.
Binding Commitment - A legal obligation between the Agency
				  and the loan recipient to provide financial assistance from the PWSLP to the
				  loan recipient, specifying the terms and schedules under which assistance is
				  provided. The loan agreement will be considered a binding commitment.
Capitalization Grant - The actual federal funds received by
				  the Agency for deposit into the PWSLP as a result of the capitalization grant
				  agreement with USEPA.
Capitalization Grant Agreement - The agreement entered into
				  each federal fiscal year between the Agency and USEPA for the purpose of
				  providing a grant to capitalize the PWSLP and enable the Agency to provide
				  assistance for PWSLP projects.
Change Order - A written order by the loan recipient to the
				  contractor authorizing an addition, deletion or revision in the work within the
				  general scope of the contract documents, or authorizing an adjustment in the
				  contract price or contract time.
Chronic Violation - Exceedance of an MCL or treatment
				  technique requirement for a contaminant that would require the owner or
				  operator of the community water supply to issue a Tier 2 or Tier 3 public
				  notice pursuant to 35 Ill. Adm. Code 611.
Construction
-
Any one or more of
				  the following which is undertaken for a public purpose: preliminary planning to
				  determine the feasibility of the public water supply, engineering,
				  architectural, legal, fiscal or economic investigations, or studies, surveys,
				  designs, plans, working drawings, specifications, procedures or other necessary
				  actions, erection, building, acquisition, alteration, remodeling, improvement
				  or extension of public water supplies, or the inspection or supervision of any
				  of the foregoing items.
[415 ILCS 5/19.2 ]
Contract Documents - The contract, including but not limited
				  to advertisement for bids, information for bidders, bid, bid bond, agreement,
				  payment bond, performance bond, notice of award, notice to proceed, change
				  order, drawings, specifications, and addenda.
Compliance Project - A project that consists of construction,
				  expansion, or upgrading of a treatment works necessary to meet State and
				  federal requirements as specified in 35 Ill. Adm. Code: Subtitle F and the
				  SDWA, respectively.
Dedicated Source of Revenue - The type of security and the
				  basis of legal authorization that are dedicated by legislative enactment or
				  other appropriate authority, along with the applicable revenue source pledged
				  for repayment and recorded in an account for the purpose of loan repayment,
				  which is sufficient to repay the principal and interest on the loan.
Design - All administrative, legal, and engineering tasks,
				  subsequent to Project Plan approval but prior to advertisement for bid
				  proposal, associated with receiving approval of a loan application. This must
				  include the following: surveys, designs, plans, working drawings,
				  specifications, soil investigations, and any other tests or process
				  determinations required to establish design criteria, and development of user
				  charge systems and sewer use ordinances.
Director - Director of the Illinois Environmental Protection
				  Agency.
Disadvantaged Community - A public water supply owned by a
				  local government unit or not-for-profit water corporation that qualifies for
				  either the Small Community Rate or Hardship Rate as defined in Section
				  662.210.
Energy Efficiency - The use of improved technologies and
				  practices to reduce the energy consumption of water quality projects, including
				  projects to reduce energy consumption or produce clean energy used by a
				  treatment works.
Environmentally Innovative Projects - Projects that
				  demonstrate new and/or innovative approaches to managing water resources in a
				  more sustainable way, including projects that achieve pollution prevention or
				  pollutant removal with reduced cost and projects that foster adaptation of
				  water protection programs and practices to climate change.
Facilities - Equipment or operating systems that are
				  constructed, installed or established to serve the particular purpose of
				  improving or augmenting sustainability for public water supplies and public
				  water supply facilities in a watershed. Facilities may involve stand-alone
				  projects or be involved as component pieces of public water supplies and public
				  water supply projects. Facilities in the context of the Green Project Reserve
				  will address green infrastructure, water and energy efficiency improvements,
				  and other environmentally innovative activities.
Fixed Loan Rate - The simple annual fixed rate on the loan,
				  which includes an interest rate portion and a loan support rate portion. The
				  fixed loan rate shall be determined on an annual basis by the procedures
				  defined in Section 662.210.
Interest Rate - The interest rate is a portion of the Fixed
				  Loan Rate and shall not be less than one-half of the Fixed Loan Rate rounded to
				  the nearest 0.01 %. The monies generated by
				  the interest rate portion of the Fixed Loan Rate shall be deposited in the
				  PWSLP receipt account within the Fund.
Loan Support Rate - The loan support rate is a portion of the
				  Fixed Loan Rate and shall not exceed one-half of the Fixed Loan Rate rounded to
				  the nearest 0.01%. The monies generated by the loan support rate portion of the
				  Fixed Loan Rate shall be deposited in the Loan Support Program receipt account
				  within the Fund.
Fund -
The Water Revolving Fund
as
				  authorized by Section
				  19.3 of the Act,
consisting of the Water Pollution Control Loan Program, the Public
				  Water Supply Loan Program, and the Loan Support Program
.
				  [415 ILCS
				  5/19.2(b) ]
Green Infrastructure - Includes a wide array of practices at
				  multiple scales that manage and treat stormwater and that maintain and restore
				  natural hydrology by infiltrating, evapotranspiring, and capturing and using
				  stormwater. On a regional scale, green infrastructure is the preservation and
				  restoration of natural landscape features, such as forests, floodplains, and
				  wetlands, coupled with policies that reduce overall imperviousness in a
				  watershed. On a local scale, green infrastructure consists of site- and
				  neighborhood-specific practices, such as bioretention, trees, green roofs,
				  porous pavements, and cisterns.
Green Project Reserve - The portion of funded projects, as
				  required by the Capitalization Grant, identified by the Agency in its Intended
				  Use Plan and annual report that address green infrastructure, water and energy
				  efficiency improvements, and other environmentally innovative activities as
				  directed by federal law.
Health Hazard - A health hazard exists when concentrations of
				  regulated contaminants, in a water supply, or concentrations of contaminants
				  not otherwise regulated, exceed health effects standards published in USEPA
				  Health Advisories, or by the Illinois Department of Public Health or by the
				  Centers for Disease Control and Prevention or that otherwise pose an immediate
				  threat to public health.
Initiation of Loan Repayment Period - The date in a loan
				  agreement or amendment that establishes the beginning point of the loan
				  repayment period.
Initiation of Operation - The date specified by the loan
				  agreement on which use of the project began operation for the purposes that it
				  was planned, designed, and constructed.
Intended Use Plan - A plan which includes a
				  description of the short and long term goals and objectives of the Public Water
				  Supply Loan Program, project categories, discharge requirements, terms of
				  financial assistance and the loan applicants to be served
.
				  [415 ILCS
				  5/19.2(e) ]
Interstate Agency - An agency of two or more states
				  established by or pursuant to an agreement or compact approved by the U.S.
				  Congress, or any other agency of two or more states, having substantial powers
				  or duties pertaining to the control of pollution as determined and approved by
				  USEPA.
Iron and Steel Products - The following products made
				  primarily of iron or steel: lined or unlined pipes and fittings, manhole covers
				  and other municipal castings, hydrants, tanks, flanges, pipe clamps and
				  restraints, valves, structural steel, reinforced precast concrete, and
				  construction materials.
Loan -
A loan made from the Public Water Supply Loan
				  Program to an eligible applicant as a result of a contractual agreement between
				  the Agency and such applicant
. [415 ILCS
				  5/19.2(c) ]
Loan Agreement - The contractual agreement document between
				  the Agency and the loan recipient that contains the terms and conditions
				  governing the loan issued from the PWSLP.
Loan Applicant - The public water supply that has applied for
				  a loan from the PWSLP under this Part.
Loan Procedures - The procedures for issuing loans from the
				  PWSLP as set out in this Part.
Loan Recipient - The public water supply that has been
				  provided a loan from the PWSLP under this Part.
Local Government Unit - A county, municipality,
				  township, municipal or county sewerage or utility authority, sanitary district,
				  public water district, improvement authority or any other political subdivision
				  whose primary purpose is to construct, operate and maintain wastewater
				  treatment facilities, including storm water treatment systems, or public water
				  supply facilities or both
. [415 ILCS
				  5/19.2(g) ]
Market Interest Rate - The mean interest rate of the 20
				  General Obligation Bond Buyer Index, from July 1 through June 30 of the
				  preceding year, rounded to the nearest 0.01%.
Maximum Contaminant Level or MCL - The maximum permissible
				  level of a contaminant in water that is delivered to any user of a public water
				  supply.
Median Household Income or MHI - The median household income
				  is the American Community Survey 5-year estimate from the U.S. Department of
				  Commerce, Bureau of the Census.
Operating Agreement - The agreement between the Agency and
				  USEPA that establishes the policies, procedures, and activities for the
				  application and receipt of federal capitalization grant funds for
				  capitalization of the PWSLP.
Person
-
Any individual,
				  partnership, co-partnership, firm, company, limited liability company,
				  corporation, association, joint stock company, trust, estate, political
				  subdivision, state agency, or any other legal entity, or their legal
				  representative, agent or assigns
. [415 ILCS
				  5/3.315 ]
Principal - The total amount of funds distributed to loan
				  recipients for eligible project costs.
Privately Owned Community Water Supply - An
				  investor-owned water utility, if under Illinois Commerce Commission regulation
				  and operating as a separate and distinct water utility; a not-for-profit water
				  corporation, if operating specifically as a water utility; and a mutually owned
				  or cooperatively owned community water system, if operating as a separate water
				  utility.
[415 ILCS
				  5/19.2(h) ]
Project - The activities or tasks the Agency identifies in
				  the loan agreement for which the loan recipient may expend loan funds.
Project Priority List - An ordered listing of projects
				  developed in accordance with the priority system described in 35 Ill. Adm. Code
				  663 that the Agency has determined are eligible to receive financial assistance
				  from the PWSLP.
PWSLP - The Public Water Supply Loan Program as authorized by
				  Section 19.2 of the Act.
Public Water Supply
-
All mains,
				  pipes and structures through which water is obtained and distributed to the
				  public, including wells and well structures, intakes and cribs, pumping
				  stations, treatment plants, reservoirs, storage tanks and appurtenances,
				  collectively or severally, actually used or intended for use for the purpose of
				  furnishing water for drinking or general domestic use and which serve at least
				  15 service connections or which regularly serve at least 25 persons at least 60
				  days per year. A public water supply is either a "community water supply" or a
				  "non-community water supply".
[415 ILCS
				  5/3.365 ]
Responsible Bid - A bid that demonstrates the apparent
				  ability of the bidder to successfully meet all the requirements specified in
				  the contract documents. Information necessary to demonstrate responsibility may
				  be corrected or submitted after bid opening.
Responsive Bid - A bid that complies with all meaningful or
				  material aspects of the contract documents. The bid must constitute a definite
				  and unqualified offer to meet the material requirements of the contract
				  documents including any terms that affect price, quality, quantity, or time of
				  delivery, or are clearly identified in the contract documents to be complied
				  with at the risk of bid rejection for nonresponsiveness. Bid defects resulting
				  in a nonresponsive bid may not be corrected after the bid opening.
SDWA - The Safe Drinking Water Act, as amended (42 U.S.C.
				  300f et seq.).
Service Population - The number of people served by the loan
				  applicant.
Source of Revenue - All revenues of the loan applicant that
				  are sufficient to repay the principal and interest (as calculated by the fixed
				  loan rate) on the loan.
Subagreement - A written agreement between the loan recipient
				  and another party, and any tier of agreement under that written agreement, to
				  furnish services, supplies, or equipment necessary to complete the project for
				  which a loan is provided, including construction contracts, contracts for
				  personal and professional services, and purchase orders.
Treatment Technique Requirement - An enforceable procedure
				  developed by USEPA when it is not economically or technologically feasible to
				  ascertain the level of a contaminant. Public water supplies must follow this
				  procedure and treat their drinking water supplies according to USEPA
				  specifications to ensure the contaminant is controlled.
Unemployment Rate - The annual average unemployment rate
				  calculated by the Illinois Department of Employment Security, Economic
				  Information and Analysis Division.
Useful Life - The estimated period during which a public
				  water supply facility is intended to be operable, as certified by the project's
				  consulting licensed professional engineer.
USEPA - The United States Environmental Protection
				  Agency.
User Charge - A charge levied on the users of a public water
				  supply to produce adequate revenues for the operation, maintenance, and
				  replacement of the public water supply.