Lead Service Line Replacement Funding Overview

State Revolving State Revolving Fund Overview Fund Overview Gary Bingenheimer SRF Loan Program Section Manager

State Revolving Fund State Revolving Fund Water Pollution Control Loan Program Public Water Supply Loan Program Lead Service Line Replacement Funding

SRF- Funding Levels (FY July 1- June 30) SRF Funding Levels 600.0 519.0 500.0 443.0 407.9 393.0 400.0 284.5 300.0 255.5 240.8 173.6 200.0 164.6 159.0 100.0 52.3 27.4 23.2 11.1 2.0 - FY2019 FY2020 FY2021 FY2022 FY2023 CWSRF DWSRF Lead

Lead Service Line Inventory Grant Program To assist communities in meeting the inventory requirements, the IEPA provided $2 million in round 1, $5 million in round 2, $3.4 million available in round 3. Round 4 will make available $6 million. Notice of funding opportunity (NOFO) $20k - $50k per applicant. Round 4 applications opened 2/15/24. There is no deadline to apply, the round will stay open until all funds are expended.

Bipartisan Infrastructure Law (BIL)- Illinois Funding Clean Water $ $ $ $ $ $ Drinking Water $ $ $ $ $ 403.4 $ Emerging Contaminants $ $ $ $ $ $ Lead Service Lines $ $ $ $ $ 1,027.8 $ Fiscal Year 2023 2024 2025 2026 2027 Total Total 80.5 94.3 101.7 110.2 110.2 496.8 67.9 63.9 85.8 92.9 92.9 32.7 32.8 38.0 38.0 38.0 179.5 107.0 230.2 230.2 230.2 230.2 $ $ $ $ $ $ 288.1 421.2 455.7 471.3 471.3 2,107.4 FY24 Principal Forgiveness Caps New administrative rules Part 663 will govern the implementation of the lead funds in FY25. Regular DW: $1.650M DW Lead:$2.755M WW: $5.0M

SRF- Loan Application Process Obtain Project Planning Approval (By March 31) Submit a Funding Nomination Form & a Project Plan Undergo a State Environmental Review Submit loan application (legal and financial documents) Project competitively bid/submit bid package IEPA issues loan agreement after all approvals Construction CANNOT start until Agency signs loan Obtain all necessary permits

Project area determined by census tracts where lead service lines are being replaced. Disadvantaged Community (DAC) determination made by project area not by service population of an applicant. Top ranked DAC s will receive PF. Lead Service Line Rule Update- Part 663 DAC Definition- A community water supply system which has a lead service line inventory, has lead service lines that need replaced, and has submitted an application for funding for a project area where the MHI is less than 100% of the state average MHI. Funding cycle and application process will be same as the Public Water Supply Loan Program (PWSLP). Under the new rule (Part 663): - 0% Interest Loans - All Lead Service Line projects eligible for a 30 Year loan term - 40 Year loan term for DAC

Lead Service Line Replacement Priority Scoring Census Metrics Project Area determined by census tract(s) where lead service lines are being replaced. Projects scored for priority based upon totaling the points awarded on the following criteria per Part 663: Median Household Income (MHI) Children under the age of 6 Poverty Rate Social Security Rate Supplemental Security Income Houses built Pre-1990 Lead Service Line burden A new funding nomination form must be submitted to the agency prior to March 31.

Illinois EPA SRF Contacts 1.) State Revolving Fund- Section Manager: Gary Bingenheimer (Gary.Bingenheimer@Illinois.gov, 217-782-2027). 2.) State Revolving Fund- Deputy Section Manager: Nidhan Singh (Nidhan.Singh@Illinois.gov, 217-524-4337). 3.) GATA Questions: EPA.GATA@Illinois.gov, 217-785-1724