The Illinois Environmental Protection Agency announced Monday over $70 million will be issued in water infrastructure loans to local governments and sanitary districts for the first quarter of Fiscal Year 2023 (July – September 2022).
In southern Illinois, The South Highway Water District in Jackson County will spend over $560,000 to 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.
The district also qualified for Disadvantaged Community Principal Forgiveness, which came in at just over $280,000.
The Illinois EPA State Revolving Fund (SRF) Program provides low-interest loans which fund wastewater, stormwater, and drinking water projects. Eleven of the 13 loans qualified for a total of over $11 million in Disadvantaged Community Principal Forgiveness, providing additional benefits to those recipients meeting the loan rules for either the Small Community Rate or Hardship Rate.
Illinois EPA’s SRF includes two loan programs, the Water Pollution Control Loan Program (WPCLP) which funds both wastewater and stormwater projects, and the Public Water Supply Loan Program (PWSLP) for drinking water projects. Both programs provide funding at a low interest rate of just 1.24 percent for FY23.
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.
For more information about Illinois EPA’s SRF, click here.