Formula Grant 01E03526

DESCRIPTION:THIS AGREEMENT PROVIDES FUNDING TO ILLINOIS ENVIRONMENTAL PROTECTION AGENCY UNDER THE SAFE DRINKING ACT: SECTION 1452 AND INFRASTRUCTURE INVESTMENT AND JOBS ACT (IIJA) PL117-58. THE PURPOSE OF THIS AGREEMENT IS FOR A CAPITALIZATION GRANT WHICH PROVIDES FUNDS FOR THE RECIPIENT'S DRINKING WATER STATE REVOLVING FUND (DWSRF) PROGRAM WITH THE PRIMARY PURPOSE TO ADDRESS EMERGING CONTAMINANTS IN DRINKING WATER WITH A FOCUS ON PROJECTS ADDRESSING PERFLUOROALKYL AND POLYFLUOROALKYL SUBSTANCES (PFAS). EMERGING CONTAMINANTS REFER TO SUBSTANCES AND MICROORGANISMS, INCLUDING MANUFACTURED OR NATURALLY OCCURRING PHYSICAL, CHEMICAL, BIOLOGICAL, RADIOLOGICAL, OR NUCLEAR MATERIALS, WHICH ARE KNOWN OR ANTICIPATED IN THE ENVIRONMENT, THAT MAY POSE NEWLY IDENTIFIED OR RE-EMERGING RISKS TO HUMAN HEALTH, AQUATIC LIFE, OR THE ENVIRONMENT. THESE SUBSTANCES, MICROORGANISMS OR MATERIALS CAN INCLUDE MANY DIFFERENT TYPES OF NATURAL OR MANUFACTURED CHEMICALS AND SUBSTANCES - SUCH AS THOSE IN SOME COMPOUNDS OF PERSONAL CARE PRODUCTS, PHARMACEUTICALS, INDUSTRIAL CHEMICALS, PESTICIDES, AND MICROPLASTICS. IN ADDITION, THE ILLINOIS ENVIRONMENTAL PROTECTION AGENCY HAS PROVIDED A REQUEST AND ALL THE NECESSARY DOCUMENTATION TO TRANSFER THE FULL CWSRF EC GRANT TO DWSRF EC. THE CWSRF EC FUNDS OF $9,617,000 ARE AWARDED AS EPA IN-KIND IN (4X-01E03525-0) AND WILL BE AWARDED TO ILLINOIS IN THIS, THE DWSRF EMERGING CONTAMINANTS GRANT. THE ILLINOIS ENVIRONMENTAL PROTECTION AGENCY WILL PROVIDE THE FUNDS IN ILLINOIS ENTIRELY AS ADDITIONAL SUBSIDY, CONSISTENT WITH THE LAW, TO PROTECT WATER QUALITY AND PUBLIC HEALTH IN ILLINOIS AND TO VITALIZE THE ECONOMY THROUGH THE CREATION OF JOBS. THIS PROCESS SATISFIES THE STATUTORY REQUIREMENT THAT THE CWSRF AWARD BE MADE PRIOR TO THE FUNDS TRANSFER. IN ADDITION, THE ILLINOIS ENVIRONMENTAL PROTECTION AGENCY HAS PROVIDED A REQUEST AND ALL THE NECESSARY DOCUMENTATION TO INCLUDE THE FULL REALLOTMENT FFY 2022 BIL EMERGING CONTAMINATION REALLOTMENT OF $196,000 TO BE ADDED TO THE DWSRF BIL EMERGING CONTAMINATION ALLOCATION.ACTIVITIES:SECTION 1452 OF THE SAFE DRINKING WATER ACT (SDWA) AUTHORIZES THE STATE TO UTILIZE FUNDS TO FURTHER THE HEALTH PROTECTION OBJECTIVES OF SDWA. THE STATE HAS SUBMITTED AN INTENDED USE PLAN (IUP) AS PART OF THE APPLICATION PACKAGE FOR THIS CAPITALIZATION GRANT. THIS IUP CONTAINS A LIST OF THE CAPITAL PROJECTS THAT ADDRESS EMERGING CONTAMINANTS THAT MAY RECEIVE FUNDING FROM THIS GRANT. THE RECIPIENT MAY ALSO USE SOME OF THE FUNDING FOR SPECIFIC 'SET-ASIDES' TO PROVIDE TECHNICAL ASSISTANCE TO SMALL SYSTEMS, PROGRAM ADMINISTRATION, STATE PROGRAM MANAGEMENT AND OTHER ALLOWABLE USES.SUBRECIPIENT:THE DWSRF FR PROGRAM IS EXEMPT FROM THE 2 CFR 200.332 SUBRECIPIENT MANAGEMENT REQUIREMENTS FOR SUB-AWARDS AS PROVIDED IN 2 CFR 1500. THE PROGRAM PROVIDES ASSISTANCE IN THE FORM OF LOANS. OF THIS GRANT AMOUNT, ILLINOIS EPA WILL FUND $32,999,000 IN LOANS IN THEIR INTENDED USE PLAN.OUTCOMES:THE BENEFITS OF THIS GRANT WILL BE TO CAPITALIZE THE RECIPIENT'S DWSRF WITH PRIMARY PURPOSE TO ADDRESS EMERGING CONTAMINANTS IN DRINKING WATER WITH A FOCUS ON PROJECTS ADDRESSING PFAS. THE FUND CAN BE USED FOR ELIGIBLE SET-ASIDE ACTIVITIES RELATED TO PFAS AND OTHER EMERGING CONTAMINANTS. THESE PUBLIC HEALTH BENEFITS WILL BE STATEWIDE.