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Full Text of SB3825
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SB3825 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3825
Introduced 2/6/2026, by Sen. Ram Villivalam
SYNOPSIS AS INTRODUCED:
New Act
Creates the Lead Service Line Replacement Bonding Act. Authorizes the
Illinois Environmental Protection Agency to issue up to $2,000,000,000 in
bonds to provide funding for the Lead Service Line Replacement Loans
Program. Defines key terms. Provides that bond proceeds may be used for
loans to replace lead service lines, principal forgiveness or negative
interest loans for disadvantaged communities, costs of issuance and
administration, and refinancing or refunding of similar obligations.
LRB104 20310 BDA 33761 b
A BILL FOR
SB3825
LRB104 20310 BDA 33761 b
1
AN ACT concerning State government.
2
Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1.
Short title.
This Act may be cited as the
Lead
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Service Line Replacement Bonding Act.
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Section 5.
Findings; purpose.
The General Assembly finds
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that:
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(1) Lead service lines pose a serious risk to public
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health, particularly to children and pregnant persons.
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(2) Replacing lead service lines is a critical
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infrastructure investment necessary to ensure safe
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drinking water throughout the State.
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(3) The Illinois Environmental Protection Agency
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administers loan programs that assist public water
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supplies and local governments with drinking water
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infrastructure improvements.
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(4) Authorizing the issuance of State bonds to
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capitalize the Lead Service Line Replacement Loans Program
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will accelerate the removal of lead service lines and
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leverage federal and local funds.
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It is therefore the purpose of this Act to authorize the
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Illinois Environmental Protection Agency to issue bonds to
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finance loans for the replacement of lead service lines
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LRB104 20310 BDA 33761 b
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throughout Illinois.
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Section 10.
Definitions.
As used in this Act:
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"Agency" means the Illinois Environmental Protection
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Agency.
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"Bond" or "bonds" means bonds, notes, or other evidences
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of indebtedness issued by the Agency pursuant to this Act.
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"Lead service line" has the meaning ascribed to that term
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in Section 17.12 of the Environmental Protection Act.
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"Lead Service Line Replacement Loans Program" or "LSLR
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Program" means the loan program administered by the Agency to
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provide financial assistance for the full replacement of lead
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service lines, including both publicly and privately owned
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portions.
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Section 15.
Authority to issue bonds.
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(a) The Agency is authorized to issue bonds, in one or more
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series, in an aggregate principal amount not to exceed
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$2,000,000,000, for the purpose of providing funding for the
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Lead Service Line Replacement Loans Program.
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(b) Bonds issued under this Act may be used to:
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(1) provide low-interest or zero-interest loans for
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lead service line replacement projects;
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(2) provide principal forgiveness or negative interest
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loans to disadvantaged communities to the extent permitted
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by law;
SB3825
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LRB104 20310 BDA 33761 b
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(3) pay costs of issuance, administration, and credit
2
enhancement related to the bonds; and
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(4) refinance or refund outstanding obligations issued
4
for similar purposes, if determined to be in the best
5
interest of the State.
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