Illinois EPA Awards $70M in SRF to 13 Projects

The Illinois Environmental Protection Agency issued more than $70 million in water infrastructure loans through the state revolving loan fund (SRF) for the first quarter of the fiscal year of 2023 (July to September 2022).

Of the 13 total projects awarded, 11 qualified for principal loan forgiveness. In total, more than $11 million in principal loan forgiveness has been awarded to those recipients, which will provide “additional benefits to those recipients meeting the loan rules for either the Small Community Rate or Hardship Rate,” according to the Illinois EPA press release.

“The Illinois EPA’s robust State Revolving Fund programs continue to serve as a valuable resource for communities to address ongoing water infrastructure needs,” said Director John J. Kim in the release. “Our programs provide a financial solution for funding infrastructure improvements while protecting Illinois’ water resources.”

The Water Pollution Control Loan Program and the Public Water Supply Program account for the two Illinois SRF funding programs. The WPCLP funds both wastewater and stormwater projects while the PWSLP is reserved for drinking water projects. The interest rate for loans with each program is 1.24% for FY23.

Wastewater Projects Awarded Illinois SRF Funding

The following projects were awarded funding from the Illinois SRF program for the first quarter of FY23 for wastewater projects.

City of Assumption

Loan Amount: $7,763,068.87
Principal Forgiveness: $2,466,614.00

The city will use the funding for the Samuel Street trunk sewer separation. The project also includes construction of the Leafland pump station with two pumps, replacement of 49 manholes, and site restoration. This is phase two of the sewer separation project and will focus on construction in the northwest area of the city. The current collection system is approximately 100 years old and made up of combined sewers, which collect both sanitary sewage and stormwater runoff.

Village of Villa Park

Loan Amount: $3,400,000.00
Principal Forgiveness: None

The Village will use the funding to cover a portion of their ongoing sewer separation and sanitary sewer rehabilitation/installation project. The project consists of the construction of storm sewer main, the installation of sanitary sewer and manholes, and miscellaneous associated restoration activities and appurtenances. A large portion of the Village's collection system consists of unreinforced concrete sewers and vitrified clay pipes installed in the 1950's. Many of the sewers and pipes are experiencing deterioration and are in need of repair.

Village of Stockton

Loan Amount: $19,433,614.00
Principal Forgiveness: $5,000,000.00

The Village will construct a new wastewater treatment plant (WWTP) main building. The project also includes construction of an anaerobic tank, a UV building, additional oxidation ditch, clarifier, and digester. A floodwall will also be constructed to prevent the site from flooding. Stockton's existing WWTP was first constructed in 1956. While the facility has been upgraded as recently as 2000, it is operating at or beyond its design loadings. This is Phase Two of a two-phase project.

Drinking Water Projects Awarded Illinois SRF Funding

The following projects were awarded funding from the Illinois SRF program for the first quarter of FY23 for drinking water projects.

Village of Westfield

Loan Amount: $283,244.05
Principal Forgiveness: $141,622.03

The Village will replace approximately 346 meters within the community and install a meter reading system and related appurtenances. Most water meters within the Village are antiquated and do not accurately measure the water consumption. Village-wide replacement of the water meters is intended to reduce or eliminate unaccounted for water usage, and it will reduce time needed for meter reading and billing services.

City of Evanston

Loan Amount: $31,693,658.00
Principal Forgiveness: None

The City will use the funding to replace one of three existing water intakes in Lake Michigan. The new water intake structure will consist of nine upturned cones located on the bottom of Lake Michigan. The existing water intake was installed in 1909 and has exceeded its useful life span. There has been a history of reduced intake capacity from the structure. U.S. Environmental Protection Agency Water Infrastructure Finance and Innovation Act (WIFIA) funds will cover $20,386,000 of the project costs.

City of Gilman

Loan Amount: $718,203.77
Principal Forgiveness: $359,101.89

The City will install water main and appurtenances. The project will allow the City to improve a portion of the distribution system, while continuing to provide customers with a safe and adequate supply of water.

Village of Donovan

Loan Amount: $1,456,711.54
Principal Forgiveness: $728,355.77

The Village will install water main, make modifications to the well house for the back-up well, and install a sodium hypochlorite feed system complete with piping, controls, and all the necessary appurtenances. This project will help the Village provide safe, clean drinking water to residents.

South Highway Water District, Jackson County

Loan Amount: $560,820.50
Principal Forgiveness: $280,410.25

The District will replace undersized water mains, construct three flushing hydrants, provide for five new service connections, and reconnect an additional five service lines. The project will also replace the underground Touch of Nature Pump Station with a new, above ground station, including electrical service, telemetry, and an emergency power generator. The new mains and services will ensure that residents have clean drinking water, provided at adequate pressure, and by individual services lines for each property.

Village of St. Anne

Loan Amount: $2,821,745.96
Principal Forgiveness: $1,250,000.00

The Village will install watermain and all necessary appurtenances to replace undersized watermain and eliminate dead ends by adding loops within the system. The Village has experienced numerous watermain breaks over the past years, resulting in boil orders. These watermains are over 100 years old and have reached the end of their useful life. Replacement of these mains will improve reliability and redundancy within the system.

Village of Macon

Loan Amount: $1,838,571.00
Principal Forgiveness: $919,285.50

The City will use the funding to make numerous improvements to the drinking water system. The project includes the demolition of an existing well building and construction of a new well house and associated piping; the installation of a new generator; the demolition of two existing aerators in the water treatment plant (WTP) and installation of a new aerator; and the installation of new watermain along County Highway 32. The project will also install new raw watermain from Macon corporate limits to the WTP, upsize existing watermain along Cole Street, and replace water meters at various locations throughout the City.

Indian Creek Home & Water Association, McLean

Loan Amount: $315,112.00
Principal Forgiveness: $157,556.00

The Association will rehabilitate a 40,000-gallon elevated storage tank. Both the exterior and interior surfaces of the tank will be recoated. A new ladder safety cable system will also be installed.

City of Nokomis

Loan Amount: $82,057.00
Principal Forgiveness: $41,028.50

The City will replace media for two of the filters located at the water treatment plant (WTP) and all related appurtenances. Replacement of the filter media at the WTP will extend the useful life of the filters and will allow two of the filters to be put back into service to allow an undisrupted supply of potable water to the City.

Village of Forreston

Loan Amount: $242,103.22
Principal Forgiveness: $121,051.61

The Village will replace all meters within the distribution system with radio read meters and purchase a data collection device and software. The current water meters are outdated and losing their recording capabilities and accuracy. Replacing the water meters will allow the Village to read the amount of water used more accurately and efficiently and detect leaks.

How Illinois SRF Works

The programs receive federal capitalization funding annually, which is combined with state matching funds, interest earnings, repayment money, and the sale of bonds, to form the source of financing for these infrastructure projects. The state matching funds for FY2020-2024 are being provided through Governor Pritzker’s bipartisan Rebuild Illinois Capital Plan thus increasing the funding capacity of both loan programs.

A complete list of FY23 first quarter loan recipients is attached. For more information about Illinois EPA’s SRF, visit https://www2.illinois.gov/epa/topics/grants-loans/state-revolvingfund/Pages/default.aspx.