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State Revolving Fund Loan Programs
American Recovery & Reinvestment Act of 2009
This summary is intended to update loan applicants and other interested
parties on the status of Illinois Environmental Protection Agency
(IEPA) program implementation efforts as we prepare for distribution
of the anticipated funding base. This site will be updated periodically
to include new program information and links to important program
documentation, including emergency rules established to administer
program funding.
The deadline for submission of pre-applications
for financial assistance under the ARRA programs has passed. The original
pre-application deadline was extended to accommodate the unprecedented
demand, and the programs are now closed to additional applications.
ARRA Funding Amounts
The American Recovery and Reinvestment Act of 2009 (ARRA) includes
significant funding for two State Revolving Fund (SRF) loan programs
currently administered by the IEPA:
- The Water Pollution Control Loan Program (WPCLP) will provide approximately
$177.2 million in assistance for wastewater projects.
- The Public Water Supply Loan Program (PWSLP) will provide approximately
$79.5 million in assistance for drinking water projects.
ARRA Funding Availability
Planning reports received and assigned by the
Agency far exceed the funding amounts available. The number of projects
that can be considered for ARRA funding based on the associated timelines
and funding availability is limited.
The American Recovery and Reinvestment Act of 2009 (ARRA) includes
significant funding for two State Revolving Fund (SRF) loan programs
currently administered by the IEPA:
- The IEPA has received nearly 1,700 pre-applications for funding
under the SRF loan programs, totaling more than $4.7 billion. This
level of demand will result in a substantial number of unfunded ARRA
applications. With just less than $257 million in ARRA funds
available for both programs, project demand is more than 18 times
the supply of available funds.
- If your project is not economically feasible without the one-time
loan terms being offered under the “stimulus” programs,
you should give careful consideration to proceeding with major investments
in planning for projects that may not meet the timelines associated
with those programs
ARRA Green Project Reserve
- The IEPA is committed to reserving 20% of our allocation to provide
support for projects or project components focused on “green
infrastructure, water or energy efficiency improvements or other
environmentally innovative activities.” For more information
on these types of projects, go to http://www.epa.gov/water/eparecovery/docs/STIMULUS_Guidance_Green_Reserve.pdf.
- If the 20% reserve cannot be accommodated by eligible applications
received, the IEPA will continue to solicit additional applications
to fill out the Green Project Reserve.
ARRA Funding Terms
IEPA’s SRF programs are well established
and will offer significant resources at affordable interest rates in
future years.
- Zero-interest loans with a twenty-year repayment term
- Principal forgiveness of 50% of the ARRA funds disbursed
- Single entity limited to 50% of project costs, or a maximum cap
of $10 million for WPCLP projects, and $5 million for PWSLP projects
- Existing SRF loan programs (zero interest loans) will supplement
project costs excluded by the caps
ARRA Timing
The IEPA expects to commit all ARRA program funding
in federal fiscal year (FFY) 2009 ending September 30, 2009. All funded
projects must be under contract or under construction by February 17,
2010, with uncommitted resources subject to reallocation.
- U.S. EPA capitalization grants to Illinois are being expedited.
Draft Intended Use Plans (IUP) for both programs were posted on the
IEPA Web site on April 3 and formally submitted to the U.S. EPA on
April 6.
- Those documents will be finalized over the next several weeks,
and a conditional grant is expected to be available within the next
two weeks.
ARRA Emergency Rulemaking
- The IEPA expects to file by May 25, 2009, emergency rules to streamline
procedures necessary for approval of WPCLP and PWSLP loans under
ARRA.
- The process will generally follow patterns established under the
current loan programs, with significant time and resource investments
required for project planning, design, and financial approval.
ARRA Program Implementation
Submission of a planning report, or other applicable
loan application elements, in no way assures the eventual commitment
of loan funds under the ARRA.
- The Agency will require a full and complete loan application,
which includes: an approved Project or Facilities Plan accompanied
by the appropriate checklist, certifications to assure appropriate
financial and managerial capacity, certification that the necessary
project site, rights-of-way, easements and permits for construction
of the project have been obtained, approved design and bid packages,
and various executed legal documents necessary for project implementation.
- If you filed a pre-application for the WPCLP or the PWSLP prior
to the April 2, 2009, deadline and your project had a construction
start date listed in 2009, your project has been included on the
funding list for the ARRA programs. Please be aware that
inclusion on the ARRA funding list is not an indication that the project will
be funded.
- If you filed a pre-application for the WPCLP or PWSLP prior to
the March 31, 2009, deadline your project will be included on the
funding list for FFY2010, which begins October 1, 2009. Upon achieving
an approved facilities or project plan the project will be scored
and ranked for priority and eligible for assistance under the applicable
program.
- If a Facilities Plan (WPCLP) or Project Plan (PWSLP) has been submitted
to the Agency, you will be contacted by your assigned project manager
in the Infrastructure financial Assistance Section or your assigned
review person in the Permit Section to identify potential planning
deficiencies.
- If a Facilities Plan or Project Plan has not been submitted, please
be aware that while a planning report remains the first major step
in the loan application process, the current level of demand exceeds
ARRA funding availability and your project will likely not receive
ARRA funding unless a large number of projects moving through the
loan process are unable to proceed, providing access for projects
that are just now submitting project planning documentation.
- The IEPA will require the submission and approval of a complete
financial package, including enforceable local use and user charge
ordinances, a certified local debt authorization ordinance, and a
dedicated revenue stream adequate to assure loan repayment. Consult
your attorney to determine an appropriate schedule for the accomplishment
of these important local initiatives. Sample ordinances are available
on the IEPA's Bureau of Water forms page. The IEPA contact in the
Division of Legal Counsel is Vera
Herst (217) 782-5544.
- Other important program contacts at the IEPA include Geoff
Andres,
Manager of the Infrastructure Financial Assistance Section (217)
782-2027, Al Keller, Manager of Wastewater Permits (217) 782-0610,
and Jerry Kuhn, Manager of Drinking Water Permits (217) 782-1724.
This page was last updated on:
June 2, 2010
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