SPRINGFIELD - In the first quarter of Fiscal Year 2022 (July - September), the Illinois Environmental Protection Agency (EPA) has issued more than $29 million in water infrastructure loans to seven local governments and sanitary districts. These low-interest loans are made possible through Illinois EPA's State Revolving Fund program, which provides funding for wastewater, stormwater, and drinking water projects. Five out of the seven loan recipients qualified for a total of more than $5 million in principal forgiveness, providing additional benefits to those recipients.
"Every community in Illinois should be equipped with clean drinking water as well as functional wastewater infrastructure to protect homes and businesses from flooding. Thanks to the Rebuild Illinois capital plan, millions of dollars are being invested in communities across the state to make that goal a reality," said Governor Pritzker. "This round of $29 million in grants will provide funding for significant infrastructure improvements to communities, providing necessary upgrades that will improve the health and safety of residents."
"The Illinois EPA State Revolving Fund continues to provide essential funding to allow communities to address aging and deteriorating wastewater and drinking water infrastructure," said Director John Kim. "The low-interest loans not only provide significant cost savings to the recipients, but also provide additional relief through principal forgiveness to eligible small systems and disadvantaged communities."
Illinois EPA's State Revolving Fund 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. 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.
Projects funded in FY22 receive an interest rate of just 1.11% for both wastewater and drinking water loans.
Original source can be found here.
