On Monday, August 21, 2023, Illinois Environmental Protection Agency (Illinois EPA) Director John J. Kim announced the issuance of more than $571 million in water infrastructure loans, to local Governments and Water Districts, for the fourth quarter of Fiscal Year 2023 (April – June 2023.) The Illinois EPA State Revolving Fund (SRF) Program provides low-interest loans which fund wastewater, stormwater, and drinking water projects. More than $53 million in loan forgiveness was also provided, to those recipients meeting the loan rules for either the Small Community Rate or Hardship Rate. In total for fiscal year 2023, Illinois EPA issued over $803 million in low-interest loans for water infrastructure. In addition to the SRF loans, Illinois provided nearly $54 million in funding for lead service line replacement, over the last 12 months.
The City of Morrison has received $1,614,408.36 through the EPA’s Public Water Supply Loan Program, of which $807,204.18 (50%) is principal forgiveness. This funding is for the water main replacement project on IL Route 78 South (E. Wall Street, South Clinton Street, and Portland Avenue.) The project is in progress, with a completion date in December 2023. The City of Morrison’s partners in this project are Fischer Excavating of Freeport, IL, (General Contractor) and Willett Hofmann Associates, Inc. of Dixon (Engineering Services.)
“The Illinois EPA’s robust State Revolving Fund allows us to provide communities with the essential funding needed to upgrade, repair, or replace aging water infrastructure,” said Director Kim. “This funding represents clean drinking water for Illinois residents; technology to reduce environmental impacts from stormwater and wastewater; creation of good paying, local jobs.”
Illinois EPA’s SRF includes two loan programs:
1. Water Pollution Control Loan Program (WPCLP) funds both wastewater and stormwater projects
2. Public Water Supply Loan Program (PWSLP) is for drinking water projects.
Both programs provide funding at a low interest rate of just 1.24 percent for State FY23. These SRF programs receive Federal capitalization funding annually, which is combined with State matching funds, interest earnings, repayment money, and periodic bond sale proceeds, to form the source of financing for these infrastructure projects. The State matching funds for State 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 Fourth Quarter loan recipients is attached. For more information about Illinois EPA’s SRF, visit https://epa.illinois.gov/topics/grants-loans/state-revolving-fund.html.