State Revolving Fund
Quick Links

Postings
• PWSLP IUP FY Supplement FY2012
• WPCLP IUP FY Supplement FY2012
• PWSLP Draft IUP FY2012
• WPCLP Draft IUP FY2012
• Draft SRF Recommendations
• WPCLP Annual Report 2011
• WPCLP Green Project Reserve 2010
• WPCLP Green Project Reserve 2011
• PWSLP Annual Report 2011
• PWSLP Green Project Reserve 2010
• PWSLP Green Project Reserve 2011

Rules
• Drinking Water Rules
• Wastewater Rules

Guidance
• Davis-Bacon Instructions
• Central Contractor Registration Tip Sheet
• Getting a DUNS Number
• DBE Guidance
• Green Project Reserve Guidance

General Forms
• Five Officer Certification Form
• Tax Exemption Certificate & Agreement
• USEPA Form 4700-4 - Compliance Review

Drinking Water
• PWSLP Plans-Specs Checklist / Front-end Documents
• PWSLP Financial Information Checklist and Program Financial Requirements
• PWSLP Bid Certifications Form
• PWSLP Loan Application Form
• PWSLP Green Project Reserve Quick Reference Guide

Wastewater
• WPCLP Plans-Specs Checklist / Front-end Documents
• WPCLP Financial Information Checklist and Program Financial Requirements
• WPCLP Bid Certifications Form
• WPCLP Loan Application Form
• WPCLP Green Project Reserve Quick Reference Guide

State Revolving Fund Update
(Status as of December 15, 2011)

This status summary is intended to update loan applicants and other interested parties on the status of the State Revolving Fund (SRF) programs administered by the Illinois Environmental Protection Agency (IEPA). The SRF programs, including the Water Pollution Control Loan Program (WPCLP) for wastewater projects and the Public Water Supply Loan Program (PWSLP) for drinking water projects, are annually the recipients of federal capitalization funding, which is combined with state matching funds and program repayments to form a perpetual source of low interest financing for environmental infrastructure projects. This site will be updated periodically to include new program information as it becomes available and to provide additional links to important program documentation.

The deadline for submission of pre-applications for current year (FY 2012) financial assistance was March 31, 2011. All new and renewal pre-applications received this year are included on the Project Priority List for FY 2012, which extends through September 30, 2012, but please be aware that the submission of a pre-application, a planning report, or other applicable loan application elements in no way assures the eventual commitment of loan funds under the SRF. If loan funds are available, a full and complete loan application, including all financial and bidding documentation, is required to secure a loan.

SRF Program Funding Amounts

The SRF programs are true revolving loan programs and are supported by a combination of federal grant funds, state matching funds, loan program repayments and investment income. Over the past three fiscal years, federal and state funding decisions have made available an expanded funding base for the programs, with the FY 2012 Intended Use Plans reflecting a reduction in available funds relative to the funding levels enjoyed during that FY 2009 - FY 2011 funding period. Provided below are projected funding levels for the SRF programs for FY 2012 extending through and including September 30, 2012:

• The Water Pollution Control Loan Program (WPCLP) will provide approximately $200 million in assistance for wastewater projects and projects that fulfill federal SRF grant requirements for the Green Project Reserve;
• The Public Water Supply Loan Program (PWSLP) will provide approximately $80 million in assistance for drinking water projects and projects that fulfill federal SRF grant requirements for the Green Project Reserve.

SRF Program Funding Availability

• The IEPA annually receives pre-applications for funding under the SRF loan programs that are far in excess of available loan funds. 447 pre-applications were received for FY 2012, with those project requests totaling nearly $2.3 billion.
• The high level of demand associated with the SRF programs places great emphasis on prior planning, and in recent years has extended the timelines associated with the loan review and approval process. Please be aware that participation in the SRF programs is not guaranteed, and that careful consideration should be given to scheduling concerns, particularly if your proposed project is an immediate need and is not economically feasible without the favorable loan terms offered under the SRF programs.

SRF Program Funding Terms

SRF program loans generally provide a twenty-year repayment term, with shorter repayment schedules negotiated under certain project circumstances. Simple interest rates for the program are established annually, and are calculated and applied at one-half the Bond Market Interest Rate, defined as the mean interest rate of the 20 General Obligation Bond Buyer Index for the preceding fiscal year. For FY 2012 the rate has been established at a level of 2.295%, and the programs will continue to offer principal forgiveness terms to certain communities based on economic criteria. A caveat on principal forgiveness terms for the WPCLP is provided in the last bullet point below.

• SRF program loans provide a twenty-year repayment term in most instances.
• The IEPA will finance all principal in FY 2012, for loans executed between October 1, 2011 and September 30, 2012, at a 2.295% simple annual interest rate.
• Loan assistance to any single entity will be limited to maximum amounts of $15 million for WPCLP projects and $7.5 million for PWSLP projects in FY 2012.
• Principal forgiveness terms are currently being offered in the PWSLP program for FY 2012. These terms are based on economic criteria, with loan recipients serving a population with a Median Household Income (MHI) less than the statewide average MHI ($53,974) benefitting from 25% principal forgiveness on the original loan amount. A principal forgiveness “cap” of $1.0 million will be employed for all loan entities.
• The IEPA hopes to offer identical principal forgiveness terms in the WPCLP for FY 2012; however the ability to forgive principal for wastewater project loans is pending congressional authorization at this time. The IEPA will proceed with WPCLP program loans in the absence of the specific congressional approval, and will apply principal forgiveness terms retroactively for qualifying loan entities if federal appropriations and the terms of the capitalization grant allow.

SRF Program Implementation

• SRF program rules will require a full and complete loan application, including: an approved Project or Facilities Plan, a complete financial package, 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 a variety of executed legal documents necessary for project implementation.
• If a pre-application for the WPCLP or the PWSLP was filed prior to April 1, 2011, your project has been included on the funding list for the applicable SRF program for FY 2012. Please be aware that the submission of a pre-application and inclusion on the funding list is not an indication that the project will be funded. Upon achieving an approved facilities or project plan, the project will be scored and ranked for priority and eligible for assistance under the SRF.
• If a Facilities Plan (WPCLP) or Project Plan (PWSLP) has been submitted to the Agency, you will be contacted regarding the status of a pending planning review. Please be aware that the number of planning reports (“new” projects) in-house far exceeds the amount of funding expected to be available this fiscal year.
• If you submitted a Facilities or Project Plan that has been assigned to a project manager in the Infrastructure Financial Assistance Section, we consider your project to be a strong candidate for funding in FY 2012 or future fiscal years. You will be contacted regarding a planning review by your project manager or your permit reviewer to identify potential planning deficiencies.
The assignment of facilities and project plans (projects) for staff review is governed by a priority system that is based primarily on compliance issues (acute and chronic health hazard violations) that may be associated with the project, along with a variety of other priority factors including water quality factors, economic considerations and the date of project submission.
• If you have submitted a Facilities or Project Plan that is not the subject of an active planning review, or if you are considering the submission of a new project (planning report) for funding assistance, please be aware that the volume of pending project applications, when combined with the time required to fully develop and complete a loan application in the program, will severely limit the likelihood that a new project can be considered for SRF assistance in fiscal year 2012.
• The IEPA will require the submission and approval of a complete financial package, including an enforceable water/sewer ordinance, a user charge ordinance, 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. The applicable Financial Information Checklist is available in the yellow "Quick Links" box above. 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.

SRF Program Planning

• The IEPA is engaged in the process of revising the SRF programs to better manage the high level of demand for SRF funding in Illinois, and to accommodate new federal program requirements and schedules. The IEPA will post revised IUP documents for the FY 2012 program year in January 2012, with those documents designed to more clearly define the candidates for loan funding in FY2012, and to provide updated information on anticipated capitalization grant conditions that are pending federal approval for the current fiscal year. These formal updates to the “Draft IUP” documents for FY 2012 will be posted and made available in the yellow “Quick Links” box above.
• In addition, the IEPA formed two advisory committees, made up of a variety of program stakeholders, to assist with the development of new guidelines, procedures and regulations for the SRF programs in Illinois. This effort, spurred by new federal requirements focused on additional program subsidies (principal forgiveness, negative interest rates or grants) and Green Infrastructure, has produced draft recommendations that are guiding this ongoing project. Go to SRF Draft Recommendations for more information.

The yellow “Quick Links” box above provides access to Facilities and Project Plan submittal checklists, loan application packages, front-end documents, federal Intended Use Plan documents and other important program information.

SRF Contacts

• 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 Dave McMillan, Manager of the Public Water Supply Division (217) 524-8111.