Pat Quinn, Governor
Wastewater & Drinking Water State Revolving Funds
The State Revolving Fund (SRF) programs, administered by the Illinois Environmental Protection Agency (IEPA), include the Water Pollution Control Loan Program (WPCLP) for wastewater projects and the Public Water Supply Loan Program (PWSLP) for drinking water projects. These two programs are annually the recipients of federal capitalization funding, which is combined with state matching funds, program repayments, and bond and interest proceeds to form a perpetual source of low interest financing for environmental infrastructure projects. The SRF programs will be the funding conduit for the Governor's recently announced Clean Water Initiative (CWI), an initiative that will utilize the existing program capacity of the well-developed SRF programs to leverage funding available for water infrastructure over at least the next three fiscal years.
Pre-applications for financial assistance through the SRF programs are accepted throughout the year; however the eventual commitment of loan funds is dependent on the receipt and review of a Facilities Plan (wastewater) or Project Plan (drinking water) that details the specifics of your project. The yellow "Key Forms" box on this page contains links to our planning submittal checklists, along with other important links to program documents. You are encouraged to access the "Submittals and Milestones" links for drinking water or wastewater loans to get a look at our program requirements. Your project "team" will be working directly with the IEPA to accomplish these requirements and to secure a loan through the SRF programs.
SRF Program Funding
The Governor's recently announced Clean Water Initiative (CWI) is big news for the State Revolving Fund (SRF) loan programs; with the CWI providing a substantial investment in the SRF programs over at least the next three fiscal years. Beginning in FY 2013, the CWI will provide significant new resources for SRF loan projects. The CWI will utilize existing program capacity to leverage the amount of funding available for water infrastructure, and will allow the IEPA to supplement resources available for SRF loan projects based on project demand and readiness to proceed in the SRF programs. The Clean Water Initiative reflects a continued emphasis on adequate funding for water infrastructure and is expected to boost funding available for water infrastructure projects in Illinois to as much as double the amounts traditionally available for the SRF programs on an annual basis.
IEPA's SRF programs are well established and will offer significant resources at affordable interest rates for years to come. The Governor's recently announced Clean Water Initiative (CWI) will provide a significant boost in funding for the programs over the next several years, providing substantial new resources to meet our growing infrastructure needs and offering a unique opportunity for communities all across Illinois.
The SRF programs are true revolving loan programs and have traditionally been supported by a combination of federal grant funds, state matching funds, loan program repayments and investment income. In recent years, state and federal funding decisions have made available an expanded funding base for the programs, and the Clean Water Initiative (CWI) is being designed to capitalize and build on that momentum, providing hundreds of millions of dollars in additional funding support for the State's Clean Water priorities.
SRF Funding Terms
SRF program loans provide for a twenty-year repayment term in most instances; with shorter repayment schedules negotiated under certain project circumstances.
The IEPA will finance all principal in FY 2013, for loans executed between October 1, 2012 and September 30, 2013, at a 1.930% simple annual interest rate. 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.
Principal forgiveness terms are not currently being offered in the SRF programs for FY 2013. The use of additional subsidies (loan forgiveness) in the SRF programs is tied directly to, and limited by, potential congressional action that will dictate the terms and requirements of the federal capitalization grants for FY 2013.
SRF program rules require a "full and complete loan application", including: an approved Project or Facilities Plan, a complete financial package, approved design and bid packages, and a variety of executed legal documents, including construction permits, necessary for project implementation.
The assignment of Facilities and Project plans 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 issues, economic considerations and the date of project submission.
If a pre-application for the WPCLP or the PWSLP has been submitted, please be aware that the submission of a pre-application is not an indication that the project will be funded. The eventual commitment of loan funds is dependent on the receipt and review of a Facilities Plan (wastewater) or Project Plan (drinking water) that details the specifics of your project. The yellow "Key Forms" box on this page contains links that will direct you to out planning submittal checklists, along with other important links to program documents.
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. The Agency is working to streamline the required planning approval process and accelerate the pace of approvals under our programs. Upon achieving an approved Facilities or Project plan, your project will be scored and ranked for priority and eligibility under the SRF.
If you have submitted a Facilities or Project Plan and are currently working directly with a project manager in the Infrastructure Financial Assistance Section (IFAS), we consider your project to be a strong candidate for funding in FY 2013. You are encouraged to work with the IEPA to finalize your application and secure an SRF loan.
If you have submitted a Facilities or Project plan that is not the subject of an active planning review, or are considering the submission of a new project for funding assistance, your project will be assigned to a project manager for review. The volume of pending applications and the time required to fully develop and complete a loan application in the program may affect the likelihood that a new project can be considered for SRF assistance in FY 2013.
The IEPA will require the submission and approval of a complete financial package, including an enforceable water or sewer ordinance, a user charge ordinance, a certified local debt authorization ordinance, and a dedicated revenue stream that is 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 "Key Forms" box on this page. Sample ordinances are available on the IEPA's Bureau of Water Forms Page and 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 Governor's recently announced Clean Water Initiative (CWI) is expected to supplement the program substantially this fiscal year, and the IEPA will soon post revised Intended Use Plan (IUP) documents for the FY 2013 program year to provide an updated status on the Clean Water Initiative and available funds for FY 2013. The revised IUP documents will also provide updated information on capitalization grant conditions that are pending federal approval for the current fiscal year, and will more clearly define the expected recipients of loan funding in FY 2013. These formal updates to the "Draft IUP" documents for FY 2013 will be posted and made available in the green "Postings" box on this page.
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.
The yellow "Key Forms" box above provides access to Facilities and Project Plan submittal checklists, loan application packages, front-end documents and other important program information. A wide variety of additional information is available on the Bureau of Water Forms Page. Please contact the Infrastructure Financial Assistance Section (IFAS) at (217) 782-2027 for additional information.
Access to additional information, including guidance documents and instructions for achieving compliance with Davis-Bacon Wage Act requirements, Disadvantaged Business Enterprise program requirements and the Central Contractor Registry (CCR) are included in the blue "Guidance" box on this page.
The green "Postings" box on this page provides access to state rules governing the SRF programs, and to other required reports and documents, including federal Intended Use Plan (IUP) documents and program annual reports.
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