Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 662 - PROCEDURES FOR ISSUING LOANS FROM THE PUBLIC WATER SUPPLY LOAN PROGRAM › Subpart A - INTRODUCTION › Section 662.120 - 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 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 Green
				Project Reserve requirements;
5)
				the Agency's State environmental review process; and
6) the Agency's agreement to the following:
A) to accept grant payments in accordance
				with a negotiated payment schedule;
B) to deposit into the State Water Revolving
				Fund an amount equaling at least 20% of each grant payment;
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 USC
				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 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 State Water Revolving 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 USC 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).