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Financial Assistance Programs

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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