The State Revolving Fund (SRF) programs, administered by the Illinois Environmental Protection Agency (Illinois EPA), 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.
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. 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 Illinois EPA to accomplish these requirements and to secure a loan through the SRF programs.
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. 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.
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 program loans provide for a twenty-year repayment term in most instances; with shorter repayment schedules negotiated under certain project circumstances.
The Illinois EPA will finance all principal in FY 2015, for loans executed between October 1, 2014 and September 30, 2015, at a 2.21% 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.
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, necessary for project implementation.
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 State Revolving Fund Forms page contains links that will direct you to the planning submittal checklists.
The Illinois EPA 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 State Revolving Fund Forms page. Sample ordinances are available on the SRF Guidance Page and the Illinois EPA contact in the Division of Legal Counsel is Vera Herst (217) 782-5544.
You may reach the following contacts at (217) 782-2027.
Use of American Iron and Steel is now a requirement for Water Pollution Control Loan Program (WPCLP) and Public Water Supply Loan Program (PWSLP) projects. This includes Clean Water Initiative Loan Projects. On January 17, 2014, the Consolidated Appropriations Act, 2014 was enacted and a “Buy American” requirement was added to both SRF loan programs. In order to obtain funds from either SRF loan program, all iron and steel products that are used for the construction, alteration, maintenance or repair of a public water system or treatment works must be produced in the United States. Current loan applicants should contact their assigned Project Manager at 217-782-2027 regarding this requirement. Illinois EPA’s sample Plans-Specs Checklist and Bidding Certification (on the State Revolving Fund Forms page) have been updated to reflect this change.
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 SRF Guidance page.
The SRF Postings 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.