IL HB2650

Amends the Environmental Protection Act Section 19.3 to establish a Water Revolving Fund with three programs: Water Pollution Control Loan Program, Public Water Supply Loan Program, and Loan Support Program administered by the Illinois Environmental Protection Agency.

Authorizes the Agency to provide direct loans at or below market interest rates, subsidies, principal forgiveness, negative interest rates, and grants to local government units and water supplies for construction and refinancing of treatment works and water supply projects.

Permits the Agency to enter into agreements with federal government, financial institutions, and other entities to capitalize the fund, create reserve funds, and develop secondary markets for loans, with investment earnings deposited back into the fund.

Requires the Agency for 5 years from the effective date to prioritize a portion of federally authorized set-aside activities in its annual intended use plan to support disadvantaged communities and utilities in building water management capacity.

Authorized assistance includes water rate studies, facility planning, training, asset management plans, lead service line replacement identification, and studies of efficiency measures through utility regionalization or collaborative approaches.