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 663.110 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Unless specified otherwise 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, PWSLP materials and loan
				  agreements, the following definitions apply:
Act - The Environmental Protection Act [415 ILCS 5
				  ].
Addenda - Documents issued by the loan applicant after
				  advertisement for bids, which modify or interpret the contract documents,
				  drawings, and specifications, by additions, deletions, clarifications or
				  corrections.
Agency -
Illinois Environmental Protection
				  Agency
. [415 ILCS
				  5/19.2(a) ]
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 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.
Billed Customers - The customers receiving a bill who are
				  responsible for paying for water services.
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.
Census Tract - The small relatively permanent statistical
				  subdivisions of a county. Census tract information is available on the website
				  of the US Department of Commerce, Bureau of the Census.
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.
Community Water Supply
-
A public
				  water supply which serves or is intended to serve at least 15 service
				  connections used by residents or regularly serves at least 25
				  residents.
[415 ILCS 5/3.145 ]
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(d) ]
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.
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 may
				  include the following, as applicable: 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 water use ordinances.
Director - Director of the Illinois Environmental Protection
				  Agency.
Disadvantaged Community - A community water supply system
				  that has a lead service line inventory in accordance with Section
				  17.12(d) of the
				  Act, has lead service lines that need replacement, and has submitted an
				  application for funding for a project area where the median household income is
				  less than 100% of the State average median household income. A disadvantaged
				  community determination will be made for each application submitted to the
				  Agency.
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.
Fixed Loan Rate - The simple annual fixed rate on the
				  loan.
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) ]
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) ]
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.
Lead Service Line - A service line made of lead or service
				  line connected to a lead pigtail, lead gooseneck, or other lead fitting. A
				  galvanized service line, for purposes of this Part, is considered a lead
				  service line if it ever was or is currently downstream of any lead service line
				  or service line of unknown material.
LSLR 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 for lead service line replacement under the BIL
				  Act.
LSLR 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 lead service line replacement projects.
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 community 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 community 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) ]
Material Inventory - A water service line material inventory
				  developed by a community water supply in accordance with SDWA or Section
				  17.12 of the Act.
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 US 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 to capitalize the
				  PWSLP and enable the Agency to provide assistance for lead service line
				  replacement projects.
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 Area - All census tracts in which the project
				  identifies lead service line replacement.
Project Priority List - An ordered listing of projects
				  developed in accordance with the priority system described in 35 Ill. Adm. Code
				  663.340 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 Line - The piping, tubing, and necessary
				  appurtenances acting as a conduit from the water main or source of potable
				  water supply to the building plumbing at the first shut-off valve or 18 inches
				  inside the building, whichever is shorter.
Service Population - The number of people served by the loan
				  applicant.
Small System - A community water supply that regularly serves
				  water to 3,300 or fewer persons.
Social Security - A program administered by the United States
				  Social Security Administration providing continuing income after retirement to
				  workers and their families. For purposes of this Part, the social security rate
				  is the percentage of the population, in any given census tract, receiving
				  social security benefits.
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.
SSI or Supplemental Security Income - A program administered
				  by the United States Social Security Administration providing monthly aid to
				  aged, blind, and disabled individuals. For this purpose of this Part, the
				  supplemental security income rate is the percentage of the population, in any
				  given census tract, receiving supplemental security income.
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.