35 ILLINOIS ADMINISTRATIVE CODE

CH. II, SEC. 363

SUBTITLE

TITLE 35: ENVIRONMENTAL PROTECTION

SUBTITLE C: WATER POLLUTION

CHAPTER II: ENVIRONMENTAL PROTECTION AGENCY

PART 363

PROCEDURE FOR ISSUING GRANTS FROM THE ANTI-POLLUTION

BOND ACT AND THE BUILD ILLINOIS ACT FOR SEWAGE TREATMENT WORKS

SUBPART A: INTRODUCTION

Section

363.101 Purpose

363.102 Definitions

SUBPART B: GENERAL CRITERIA

Section

363.201 Relationship to Title II Grants

363.202 Reimbursement

363.203 Allocation of Grant Funds

363.204 Supplemental Grants

363.205 Required Content and Filing of Applications for Bond Act Grants

363.206 Limitations Upon Grants for Collection Systems

363.207 State Owned Facilities

SUBPART C: STANDARD PRIORITY PROJECT GRANTS

Section

363.301 Project Priority Requirement

363.302 Consolidation of Priorities

SUBPART D: HEALTH RISK GRANTS

Section

363.401 Determination of Health Risk

363.402 Priorities for Issuance

SUBPART E: REGIONALIZATION PROJECT GRANTS

Section

363.501 Availability of Funding

363.502 Priorities for Issuance

35 ILLINOIS ADMINISTRATIVE CODE

CH. II, SEC. 363

SUBTITLE

SUBPART F: BACKLOG PROJECT GRANTS

Section

363.601 Availability of Funding

363.602 State/Federal Piggyback Grants

363.603 State Reimbursement Grants

SUBPART G: BUILD ILLINOIS BOND FUND GRANTS

Section

363.701 Availability of Funding

363.702 Build Illinois Bond Fund Grants

363.703 Supplemental State/Federal Piggyback Grants

363.704 Supplemental State Reimbursement Grants

363.705 Supplemental Build Illinois Bond Fund Grants

SUBPART H: UNSEWERED COMMUNITIES GRANTS

Section

363.801 Applicability

363.802 Eligibility

363.803 Grant Percentage and Design Grants

363.804 Limitations

AUTHORITY: Implementing and authorized by Section 4 of the Anti-Pollution Bond Act [30

ILCS 405/4], Section 1-3 of the Build Illinois Act [30 ILCS 750/1-3] and Section 4 of the

Environmental Protection Act [415 ILCS 5/4].

SOURCE: Adopted and codified at 8 Ill. Reg. 15914, effective August 17, 1984; amended at 9

Ill. Reg. 3951, effective March 15, 1985; amended at 10 Ill. Reg. 216, effective December 20,

1985; amended at 27 Ill. Reg. 13421, effective July 25, 2003.

SUBPART A: INTRODUCTION

Section 363.101 Purpose

a) The Anti-Pollution Bond Act, (Ill. Rev. Stat. 1983, ch. 127, pars. 451-464)

provides that the State of Illinois may issue grants to units of local government for

the planning, financing, and construction of sewage treatment works. Such grants

are made under the direction of the Illinois Environmental Protection Agency.

("Agency")

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.101

SUBTITLE

b) These rules set forth the procedures used by the Agency in the issuance of grants

to units of local government for the planning, financing, and construction of

sewage treatment works.

Section 363.102 Definitions

a) Unless specified otherwise, all terms shall have the meanings set forth in the

Environmental Protection Act and the federal Clean Water Act (33 U.S.C. 1251 et

seq.) and regulations promulgated under those Acts 40 CFR 30, 33, and 35

(1983). No incorporation by reference in this Part, other than the Illinois Revised

Statutes or the United States Code includes any later amendment or addition.

b) For purposes of these rules the following definitions apply:

"Bond Act" means the Anti-Pollution Bond Act, (Ill. Rev. Stat. 1983, ch. 127,

pars. 451-464).

"Title II" means Title II of the federal Clean Water Act, (33 U.S.C. 1281 et seq.).

"State Owned Facilities" means mental health or developmental centers or

institutions for which the Department of Mental Health and Development

Disabilities exercises executive and administrative supervision under Ill. Rev.

Stat. 1983, ch. 91½, par. 100-4, and correctional institutions or facilities for which

the Department of Corrections maintains and administers control under the State

Penitentiary System in accordance with Ill. Rev. Stat. 1983, ch. 38, par. 1003-2-2.

SUBPART B: GENERAL CRITERIA

Section 363.201 Relationship to Title II Grants

a) Subject to Section 363.207, no grant shall be issued under the Bond Act for the

planning financing or construction of sewage treatment works if a grant has been

offered under Title II which would provide 75% or more of the eligible project

costs.

b) Subject to Section 363.207, no recipient shall receive any assistance under the

Bond Act if the combination of assistance under the Bond Act and Title II equals

or exceeds 75% of the eligible project costs; except as provided in Section

363.602 for Backlog Project Grants. The previous sentence shall not apply if an

existing Bond Act grant offer, issued prior to January 1, 1973, specifies that the

combination of assistance may not exceed 80% of the eligible project cost; in

such case the recipient may not receive any assistance under the Bond Act if the

combination of assistance under the Bond Act and Title II equals or exceeds 80%

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.201

SUBTITLE

of the eligible project cost.

(Source: Amended at 9 Ill. Reg. 3951, effective March 15, 1985)

Section 363.202 Reimbursement

If the recipient of a Bond Act grant is at any time offered a Title II grant to assist in the payment

of expenses for which a Bond Act grant has been issued, the recipient shall reimburse the State

of Illinois for any Bond Act grant funds used to pay expenses paid or offered to be paid under the

Title II grant.

Section 363.203 Allocation of Grant Funds

a) Grant funds available under the Bond Act and Title II will be subject to an equal

division of total grant funds available to the State between the service area of the

Metropolitan Sanitary District of Greater Chicago and the area which is

comprised of the geographical balance of the state, to the extent that projects in

either area in any grant year have qualified to receive Bond Act or Title II grant

funds and the Agency has determined that the projects are ready to proceed in

accordance with the criteria for grant award.

b) If insufficient projects in either area are ready to proceed in any grant year to

permit an equal division of the total grant funds available to the State, grants will

be made to those projects in either area which are ready to proceed to the extent

that funds are available.

c) Any imbalance in the division of the total grant funds available to the State shall

be carried forward from year to year and shall be applied as projects are ready to

proceed to achieve an accumulatively equal distribution, if possible within the

constraints of this Part, to both areas of the total of the grant funds available to the

State.

Section 363.204 Supplemental Grants

A unit of local government which has received a state grant offer shall be eligible for a

supplemental state grant not to exceed the appropriate percentage of eligible costs of the project.

The issuance of a supplemental grant will be based on the availability of Bond Act funds.

(Source: Amended at 9 Ill. Reg. 3951, effective March 15, 1985)

Section 363.205 Required Content and Filing of Applications for Bond Act Grants

a) Bond Act grants will be made only for the funding of eligible project costs which

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.205

SUBTITLE

comply with the requirements of 40 CFR 35 Subpart I Appendix A and B (1984),

as published on February 17, 1984, in the Federal Register (as amended at 55 Fed.

Reg. 27098, June 29, 1990). No later editions are included in the incorporation.

b) Any of the requirements of 40 CFR 35 Subpart I (1984), except facilities

planning, sewer system evaluation, user charges, sewer use ordinance, and

initiation of construction may be waived in writing by the Agency, in whole or in

part, if the purpose of the requirement has been accomplished or if the

requirement waived is not considered by the Agency to be necessary to assure that

the project attains pollution control goals in a cost-effective manner.

c) Bond Act grants will not be offered for any project unless a complete application

for the project is filed prior to the filing deadline and unless the Agency has

entered the project on the priority list for the fiscal year in which the grant is

requested as determined by Agency Rules entitled "Procedures and Requirements

for Determining Construction Grant Priorities for Municipal Sewage Treatment

Works Needs." (35 Ill. Adm. Code 364).

d) Any of the requirements of Subpart H of this Part, except Sections 363.802(c),

363.803(a), and 363.803(b)(2) and any provisions of Part 360 or Part 365 (as

applicable) that may not be waived pursuant to those Parts, may be waived in

writing by the Agency, in whole or in part, if the purpose of the requirement has

been accomplished or if the requirement is not considered by the Agency to be

necessary to assure that the project attains the goals of the Unsewered

Communities Grant Program.

(Source: Amended at 27 Ill. Reg. 13421, effective July 25, 2003)

Section 363.206 Limitations Upon Grants for Collection Systems

a) Bond Act grants that may be used for planning, financing and construction of

sewage collection systems will be limited as follows:

1) The area within which the system will be constructed must have been

within the incorporated boundaries of the grant recipient on October 18,

1972;

2) Design capacity for the sewer system will not exceed one hundred fifty

percent (150%) of the wastewater flows originating from the community

as it existed on October 18, 1972. This limitation will be applied sewer

line by sewer line; and

3) The facilities which convey wastewater from individual structures or from

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.206

SUBTITLE

private property to the public lateral sewer are not eligible for grant

funding, with the exception of pumping units and pressurized lines for

individual structures or groups of structures when such units are cost

effective and then only if such units are owned and maintained by the

grant recipient.

b) Eligible for grant funding are the common lateral sewers, within a publicly-owned

treatment system, which are primarily installed to receive wastewaters directly

from facilities which convey wastewater from individual structures or from

private property, and which include service connection "Y" fittings designed for

connection with those facilities.

Section 363.207 State Owned Facilities

a) Bond Act grants for that portion of the local share of eligible project costs

attributable to state owned facilities shall not be awarded unless the following

conditions are met:

1) The grant is in conjunction with and in addition to a Title II grant or a

Bond Act grant under Subparts C, D or E awarded to an eligible unit of

local government;

2) The proposed treatment works project must provide service to residential,

industrial and commercial users within the boundaries of the unit of local

government in addition to providing service to the state owned facility;

3) The proposed sewage treatment works must be owned and operated by a

unit of local government and must be located on property which is also

owned by the unit of local government.

4) Grants to the applicant for a share of the local cost attributable to the state

owned facility must be awarded to the unit of local government at the time

that the Step 3 grant is awarded and prior to initiation of construction of

the sewage treatment works.

5) The grant for the share of the local cost attributable to the state owned

facility shall not be awarded unless the Agency has approved a cost

effective analysis of the treatment works configuration in facility planning.

6) The grant for the share of the local cost attributable to the state owned

facility shall not exceed 100% of the state share of eligible projects costs

as determined pursuant to a signed written service agreement between the

applicant and the state agency which operates the state owned facilities

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.207

SUBTITLE

which is to be served by the treatment works.

b) No grant under this section may be made if the state owned facility is eligible and

has been approved by the Capital Development Board for securing its share of the

local funding under the Capital Development Bond Act (Ill. Rev. Stat. 1983, ch.

127, pars. 751 et seq.) or any other bonding program of the State of Illinois.

SUBPART C: STANDARD PRIORITY PROJECT GRANTS

Section 363.301 Project Priority Requirement

a) Bond Act grants to units of local government under this Section shall be made in

accordance with the grant applicant's priority as established under Agency rules

entitled "Procedures and Requirements for Determining Construction Grant

Priorities for Municipal Sewage Treatment Works Needs." (35 Ill. Adm. Code

364).

b) Except as set forth in Subtitles D and E, the Director of the Agency shall not

approve a project for funding under this Subpart unless the priority of the project

is within the range of project priorities for which grant funding from combined

state and federal resources is available.

Section 363.302 Consolidation of Priorities

a) Notwithstanding Section 363.301, two or more needs of one or more applicants

which are initially ranked at different priorities, may be consolidated into one

need at the higher (highest) priority, and a grant may be issued under this Subpart

for the consolidated need at the higher (highest) priority, if the following

conditions are satisfied:

1) The applicant must have a facilities plan approved by the Agency which

concludes that the two or more needs will be most cost-effectively met by

an integrated solution; and

2) Available state and federal funding must be adequate to permit complete

funding of the consolidated need.

b) Such consolidations may include:

1) Sewer rehabilitation work and sewage treatment plant improvements

and/or intercepting sewer construction;

2) Projects to eliminate on-system wet weather overflow and sewage

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.302

SUBTITLE

treatment plant inprovements and/or intercepting sewer construction;

3) Projects to construct collection systems in currently unsewered

communities and projects to construct a new sewage treatment plant

and/or intercepting sewer.

SUBPART D: HEALTH RISK GRANTS

Section 363.401 Determination of Health Risk

a) Notwithstanding Subpart C, the Agency may, based on the availability of grant

funds and criteria in this Part, provide grant assistance under this Subpart for

construction of sewage treatment works if, in the judgment of the Director, an

actual or potential severe health hazard exists because of a lack of adequate

sewage treatment works.

b) Prior to determining whether a grant will be offered under this Subpart, the

Director will consult with other state agencies, including the Illinois Department

of Public Health, to identify those projects for which the most severe health risk

exists.

c) In the event that alleviation of a health risk would require construction of a

sewage collection system, the Director will consult with local health authorities to

determine whether the health is of such an area-wide nature that installation of a

collection system is appropriate. In making this determination the Director shall

evaluate available information on the area-wide nature of:

1) cases of gastro-intestinal illness

2) probable body contact with exposed sewage from septic tanks

3) formal complaints of odors from exposed sewage from septic tanks

4) soil samples indicating unsatisfactory soil types.

Section 363.402 Priorities for Issuance

Projects eligible under this Subpart will be funded under the following priorities to the extent

funds are made available by the General Assembly:

a) First health risk priority is assigned to those projects that have already been

notified by the Agency of the availability of grant funds under this Subpart, but

have not yet completed the requirements of Section 363.205. If an applicant is to

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.402

SUBTITLE

remain eligible, the Director must determine that the applicant is making

satisfactory progress toward completing the requirements of Section 363.205 in

accordance with the schedule contained in Step I grant.

b) Second health risk priority is assigned those projects which will reduce

contamination of a public water supply.

c) Third health risk priority is assigned to those projects which will reduce the

probability of primary contact with effluent from inadequately functioning septic

tanks.

d) Fourth health risk priority is assigned to those projects which will reduce the

probability of primary contact with sewage overflows from inadequately sized

sewage collection systems during periods of wet weather. This class includes

basement backups.

e) The following project costs are not eligible for funding under this Subpart:

1) Project costs for collection systems or for facilities which convey

wastewater from individual structures or from private property to the

collector sewer.

2) Project costs for on-system wet weather overflow facilities for interception

and for storage of treatment overflows.

SUBPART E: REGIONALIZATION PROJECT GRANTS

Section 363.501 Availability of Funding

a) Notwithstanding Subpart C, the Agency may provide grant assistance under this

Subpart, to units of local government which are entirely or partially unsewered for

the planning, financing and construction of interceptor or collector sewers if the

following requirements are met:

1) The proposed sewer system is included in an area of regionalization in

which state or federal funds have been or will be obligated to construct a

regional treatment facility; and

2) The regional treatment facility has been planned to accommodate and

designed with capacity to treat sewage to be conveyed by the proposed

sewer system.

b) Bond Act grants may be available to fund up to 75% of the eligible project costs

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.501

SUBTITLE

for planning, design and construction of interceptor or collector sewers.

c) The following projects and project costs are not eligible for funding under this

Subpart:

1) Projects of which federal or state standard priority construction grant

funds are expected to be available;

2) Projects costs for systems designed to intercept, store, or treat wet weather

overflows; and

3) Projects which consist of sewer systems for partially sewered communities

which are tributary to single-municipal treatment facilities.

Section 363.502 Priorities for Issuance

Projects eligible under this Subpart will be funded under the following priorities to the extent

that funds are made available by the General Assembly:

a) First regionalization priority is assigned to those projects that have already been

notified by the Agency of the availability of grant funds for them under this

Subpart but have not yet completed the requirements of Section 363.205. If an

applicant is to remain eligible, the Director must determine that it is making

satisfactory progress toward completing the requirements of Section 363.205.

b) Second regionalization priority is assigned to sewer systems for entirely

unsewered communities tributary to a multi-municipal regional treatment facility

which is operational.

c) Third regionalization priority is assigned to sewer systems for entirely unsewered

communities tributary to a multi-municipal regional treatment facility where the

regional treatment facility has been or can be funded (through Step 2 or Step 3

grant award) but is not operational.

d) Fourth regionalization priority is assigned to sewer systems for partially sewered

communities tributary to a multi-municipal regional treatment facility which is

operational.

e) Fifth regionalization priority is assigned to sewer systems for partially sewered

communities tributary to a multi-municipal regional treatment facility which has

been or can be funded (through Step 2 or Step 3 grant award) but is not

operational.

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.601

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SUBPART F: BACKLOG PROJECT GRANTS

Section 363.601 Availability of Funding

Eligible backlog projects include those projects listed in P.A. 83-1231 (effective July 20, 1984).

(Source: Amended at 10 Ill. Reg. 216, effective December 20, 1985)

Section 363.602 State/Federal Piggyback Grants

For those backlog projects receiving a Title II grant after September 30, 1984, a Bond Act grant

may also be issued under this Section provided that:

a) the total percentage of the grant funding does not exceed 70 percent.

b) the State share of design will be an allowance in accordance with the criteria set

forth in 35 Ill. Adm. Code 363.205.

(Source: Amended at 10 Ill. Reg. 216, effective December 20, 1985)

Section 363.603 State Reimbursement Grants

For those backlog projects not receiving a Title II grant, a Bond Act grant may be issued

provided the State share does not exceed 70 percent. The State grant shall be issued in

increments based on cash flow limitations relating to the sales of bonds.

(Source: Amended at 10 Ill. Reg. 216, effective December 20, 1985)

SUBPART G: BUILD ILLINOIS BOND FUND GRANTS

Section 363.701 Availability of Funding

Build Illinois Bond Fund grants to units of local government under this Section shall be made in

accordance with the criteria set forth in 35 Ill. Adm. Code 363.301.

(Source: Added at 10 Ill. Reg. 216, effective December 20, 1985)

Section 363.702 Build Illinois Bond Fund Grants

For those projects not receiving a Title II grant, a Build Illinois Bond Fund grant may be issued

provided:

a) the State share does not exceed 70 percent,

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b) the State share of either planning or design, or both, will be an allowance in

accordance with the criteria set forth in 35 Ill. Adm. Code 363.205.

(Source: Added at 10 Ill. Reg. 216, effective December 20, 1985)

Section 363.703 Supplemental State/Federal Piggyback Grants

For those projects which receive a State/Federal piggyback grant after September 30, 1984, as set

forth in Section 363.602, a supplemental Build Illinois Bond Fund grant may be issued provided

that the total percentage of State/Federal grant funding does not exceed 70 percent.

(Source: Added at 10 Ill. Reg. 216, effective December 20, 1985)

Section 363.704 Supplemental State Reimbursement Grants

For those backlog projects not receiving a Title II grant, a supplemental Build Illinois Bond Fund

grant may be issued provided that the State share does not exceed 70 percent. The State grant

shall be issued in increments based on cash flow limitations relating to the sale of bonds.

(Source: Added at 10 Ill. Reg. 216, effective December 20, 1985)

Section 363.705 Supplemental Build Illinois Bond Fund Grants

To the extent that Build Illinois Bond Funds are available, a supplemental Build Illinois Bond

Fund grant may be issued under this Section for those projects which received a Bond Act grant

on or before September 30, 1984, and which did not receive full 75 percent funding of eligible

project costs provided that:

a) the Agency has received construction bids on the project, and

b) the State share does not exceed 75 percent of the total eligible project cost.

(Source: Added at 10, Ill. Reg. 216, effective December 20, 1985)

SUBPART H: UNSEWERED COMMUNITIES GRANTS

Section 363.801 Applicability

a) All projects receiving unsewered communities grants pursuant to this Subpart

must comply with the requirements of 35 Ill. Adm. Code 360 (General Conditions

of State of Illinois Grants under the Anti-Pollution Bond Act of 1970).

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.801

SUBTITLE

b) For projects receiving unsewered communities grants pursuant to this Subpart that

also receive a Water Pollution Control Loan Program loan, compliance with 35

Ill. Adm. Code 365 (Procedures for Issuing Loans from the Water Pollution

Control Loan Program) will satisfy the requirements of Part 360.

(Source: Added at 27 Ill. Reg. 13421, effective July 25, 2003)

Section 363.802 Eligibility

A unit of local government is eligible for an unsewered communities grant if it has met all of the

following requirements:

a) it is a municipality as defined in Article VII, Section 1 of the Illinois Constitution

and was incorporated on or before July 1, 1988 or a Sanitary District established

on or before July 1, 1988 under the Sanitary District Acts of 1917 [70 ILCS 2405]

or 1936 [70 ILCS 2805];

b) it lacks a permitted sewerage system;

c) it is on an enforceable compliance schedule as defined in 35 Ill. Adm. Code

366.102(b); and

d) it has submitted a pre-application to be scored in accordance with 35 Ill. Adm.

Code 366 and appears on the current fiscal year priority list.

(Source: Added at 27 Ill. Reg. 13421, effective July 25, 2003)

Section 363.803 Grant Percentage and Design Grants

a) Grant Percentage

Communities receiving grants under the unsewered communities grant program

will be eligible to receive grants of between 10 and 70% of eligible project costs

depending on the relationship between the community’s median household

income (MHI) to the statewide MHI based on the latest census as incorporated by

reference at 35 Ill. Adm. Code 366.103. The following table lists the percentage

of eligible project costs that may be provided to an applicant based on the

applicant’s MHI percentage above or below the statewide MHI:

State MHI

Grant Percentage

80% and below

70%

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81% 69%

82% 68%

83% 67%

84% 66%

85% 65%

86% 64%

87% 63%

88% 62%

89% 61%

90% 60%

91% 59%

92% 58%

93% 57%

94% 56%

95% 55%

96% 54%

97% 53%

98% 52%

99% 51%

100% 50%

101% 49%

102% 48%

103% 47%

104% 46%

105% 45%

106% 44%

107% 43%

108% 42%

109% 41%

110% 40%

111% 39%

112% 38%

113% 37%

114% 36%

115% 35%

116% 34%

117% 33%

118% 32%

119% 31%

120% 30%

121% 29%

122% 28%

123% 27%

35 ILLINOIS ADMINISTRATIVE CODE CH. II, SEC. 363.803

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124% 26%

125% 25%

126% 24%

127% 23%

128% 22%

129% 21%

130% 20%

131% 19%

132% 18%

133% 17%

134% 16%

135% 15%

136% 14%

137% 13%

138% 12%

139% 11%

140% or above

10%

b) Design Grants

1) Design grants may be made upon submission of an approved facilities

plan pursuant to 35 Ill. Adm. Code 365 and an architectural/engineering

agreement for design services.

2) An applicant will be eligible for a design grant of between 10 and 70% of

the architectural/engineering agreement for design services depending on

the relationship between the community's MHI and the state-wide MHI as

provided in subsection (a) of this Section.

3) An applicant may elect to receive a design grant prior to the start of design

or as a reimbursement at the start of construction.

(Source: Added at 27 Ill. Reg. 13421, effective July 25, 2003)

Section 363.804 Limitations

a) Grant participation for sewers shall be limited to sewers necessary to cost-

effectively serve buildings in existence on July 1, 2001.

b) The maximum amount of grant assistance is $5 million for any one applicant on a

cumulative basis.

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c) The maximum percentage of grant assistance from all available sources is 85% of

eligible project costs. The maximum financial assistance from all sources

including grants and loans cannot exceed 100%.

(Source: Added at 27 Ill. Reg. 13421, effective July 25, 2003)