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Illinois Senate Bill SB1444

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1444 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1444 Introduced 1/31/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: New Act Creates the Chicago Water Contracts Transparency Study Act. Provides that the Commission on Government Forecasting and Accountability shall commission an independent study on the City of Chicago's water contracts with distributing municipalities, including detailed information on the agreements and costs associated with those agreements. Provides that the study shall also assess the potential cost impacts of establishing an alternative stream of water distribution, such as through the creation of a Southwest Water Authority or similar entity. Provides that the Commission shall hold at least 2 public hearings to solicit input from municipal representatives, water industry experts, and other stakeholders and include any relevant information resulting from those hearings in the study. Provides that the Commission shall complete the study and submit a report that includes an executive summary, detailed findings, and any recommendations resulting from the study to the General Assembly and the Governor no later than one year after the effective date of the Act. Effective immediately. LRB104 08135 SPS 18181 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1444 Introduced 1/31/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: New Act New Act Creates the Chicago Water Contracts Transparency Study Act. Provides that the Commission on Government Forecasting and Accountability shall commission an independent study on the City of Chicago's water contracts with distributing municipalities, including detailed information on the agreements and costs associated with those agreements. Provides that the study shall also assess the potential cost impacts of establishing an alternative stream of water distribution, such as through the creation of a Southwest Water Authority or similar entity. Provides that the Commission shall hold at least 2 public hearings to solicit input from municipal representatives, water industry experts, and other stakeholders and include any relevant information resulting from those hearings in the study. Provides that the Commission shall complete the study and submit a report that includes an executive summary, detailed findings, and any recommendations resulting from the study to the General Assembly and the Governor no later than one year after the effective date of the Act. Effective immediately. LRB104 08135 SPS 18181 b LRB104 08135 SPS 18181 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1444 Introduced 1/31/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED:
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55 Creates the Chicago Water Contracts Transparency Study Act. Provides that the Commission on Government Forecasting and Accountability shall commission an independent study on the City of Chicago's water contracts with distributing municipalities, including detailed information on the agreements and costs associated with those agreements. Provides that the study shall also assess the potential cost impacts of establishing an alternative stream of water distribution, such as through the creation of a Southwest Water Authority or similar entity. Provides that the Commission shall hold at least 2 public hearings to solicit input from municipal representatives, water industry experts, and other stakeholders and include any relevant information resulting from those hearings in the study. Provides that the Commission shall complete the study and submit a report that includes an executive summary, detailed findings, and any recommendations resulting from the study to the General Assembly and the Governor no later than one year after the effective date of the Act. Effective immediately.
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1111 1 AN ACT concerning State government.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 1. Short title. This Act may be cited as the
1515 5 Chicago Water Contracts Transparency Study Act.
1616 6 Section 5. Purpose. The purpose of this Act is to direct
1717 7 the Commission on Government Forecasting and Accountability to
1818 8 commission a comprehensive study on the City of Chicago's
1919 9 water contracts with distributing municipalities. This study
2020 10 shall include detailed information on the agreements, charges,
2121 11 past infrastructure costs, future infrastructure costs, and
2222 12 fee increases and shall provide transparency concerning water
2323 13 distribution agreements within this State. The study shall
2424 14 also assess the potential cost impacts of establishing an
2525 15 alternative stream of water distribution, such as through the
2626 16 creation of a Southwest Water Authority or similar entity.
2727 17 Section 10. Study commissioned.
2828 18 (a) The Commission on Government Forecasting and
2929 19 Accountability shall commission an independent study to:
3030 20 (1) identify and catalog all existing water contracts
3131 21 the City of Chicago has with municipalities that
3232 22 distribute water from the City of Chicago's water supply;
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3636 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1444 Introduced 1/31/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED:
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3939 Creates the Chicago Water Contracts Transparency Study Act. Provides that the Commission on Government Forecasting and Accountability shall commission an independent study on the City of Chicago's water contracts with distributing municipalities, including detailed information on the agreements and costs associated with those agreements. Provides that the study shall also assess the potential cost impacts of establishing an alternative stream of water distribution, such as through the creation of a Southwest Water Authority or similar entity. Provides that the Commission shall hold at least 2 public hearings to solicit input from municipal representatives, water industry experts, and other stakeholders and include any relevant information resulting from those hearings in the study. Provides that the Commission shall complete the study and submit a report that includes an executive summary, detailed findings, and any recommendations resulting from the study to the General Assembly and the Governor no later than one year after the effective date of the Act. Effective immediately.
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6767 1 (2) articulate the amount of money charged by the City
6868 2 of Chicago for the provision of water to these
6969 3 distributing municipalities, including an analysis of any
7070 4 pass-through contracts or agreements these municipalities
7171 5 may have with other municipalities;
7272 6 (3) analyze historical trends in the charges and fee
7373 7 increases associated with these water contracts, including
7474 8 but not limited to:
7575 9 (A) the percentage increases in charges over the
7676 10 previous 10 years;
7777 11 (B) the specific reasons for any fee increases;
7878 12 and
7979 13 (C) an overview of how those increases have
8080 14 impacted municipal budgets and water customers;
8181 15 (4) review past infrastructure costs related to water
8282 16 treatment and distribution to these municipalities and
8383 17 estimate future infrastructure costs needed to maintain or
8484 18 improve water delivery systems, including projected costs
8585 19 for upgrades, maintenance, and necessary capital
8686 20 improvements;
8787 21 (5) provide recommendations for improving
8888 22 transparency, accountability, and equitable pricing in the
8989 23 future water contracts between the City of Chicago and
9090 24 distributing municipalities; and
9191 25 (6) assess the potential cost impacts and benefits of
9292 26 establishing an alternative stream of water distribution
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103103 1 to the distributing municipalities, such as through the
104104 2 creation of a Southwest Water Authority or similar entity.
105105 3 (b) The study shall include a detailed examination of the
106106 4 following:
107107 5 (1) Infrastructure and capital investment. The study
108108 6 shall evaluate the initial capital investment required to
109109 7 develop and construct an alternative water distribution
110110 8 system, including the construction of treatment plants,
111111 9 pipelines, reservoirs, and any necessary infrastructure to
112112 10 support water delivery. The study shall also consider the
113113 11 timeline for such development and the long-term
114114 12 maintenance and operational needs.
115115 13 (2) Operational and maintenance costs. The study shall
116116 14 analyze the annual operating costs associated with the
117117 15 establishment and ongoing management of a new water
118118 16 distribution entity, including staffing, energy,
119119 17 maintenance, and administrative overhead. The study shall
120120 18 also compare these costs to the current expenditures
121121 19 related to water distribution through the City of Chicago,
122122 20 including any hidden or indirect costs borne by
123123 21 municipalities.
124124 22 (3) Impact on existing contracts. The study shall
125125 23 examine how the introduction of a new water distribution
126126 24 authority might affect the terms and financial obligations
127127 25 of current water contracts between the City of Chicago and
128128 26 municipalities. The study shall specifically assess
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139139 1 whether municipalities could potentially reduce reliance
140140 2 on the City of Chicago for water, renegotiate existing
141141 3 contracts, or seek alternative supply sources, and how
142142 4 this would affect the pricing structure and stability of
143143 5 the current system.
144144 6 (4) Cost to municipalities and ratepayers. The study
145145 7 shall project the potential cost impact on municipalities
146146 8 and their residents if an alternative water distribution
147147 9 system were implemented. The study shall also include
148148 10 short-term and long-term price projections for water
149149 11 rates, including any potential savings or increased costs
150150 12 to municipalities and their customers and the financial
151151 13 feasibility of transitioning to such a system.
152152 14 (5) Environmental and regulatory considerations. The
153153 15 study shall assess any environmental impacts associated
154154 16 with building a new water distribution system, including
155155 17 water sourcing, treatment processes, and the
156156 18 sustainability of the proposed alternative water supply.
157157 19 The study shall include any considerations of compliance
158158 20 with State and federal regulations and any potential
159159 21 environmental challenges, such as water quality or access
160160 22 issues.
161161 23 (6) Market competition and reliability. The study
162162 24 shall analyze how the establishment of a Southwest Water
163163 25 Authority or similar entity could introduce competition
164164 26 into the water market, potentially benefiting
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175175 1 municipalities by offering more competitive pricing and
176176 2 reliable service options. The study shall also assess
177177 3 whether the introduction of competition could lead to
178178 4 innovation, greater efficiency, or better service quality.
179179 5 (7) Feasibility study of water sources. The study
180180 6 shall evaluate alternative water sources available to the
181181 7 proposed new authority, including the feasibility of
182182 8 obtaining water from new sources, such as rivers, lakes,
183183 9 or groundwater, that could be used to supply the new water
184184 10 distribution entity. The study shall also consider the
185185 11 potential risks and benefits of these sources compared to
186186 12 the current reliance on the City of Chicago's water
187187 13 supply.
188188 14 (8) Regional and statewide implications. The study
189189 15 shall analyze the broader impact of establishing an
190190 16 alternative water distribution system on regional and
191191 17 statewide water management strategies. The study shall
192192 18 also assess how the creation of an alternative authority
193193 19 would influence overall water resource planning,
194194 20 coordination among municipalities, and alignment with
195195 21 State water management goals.
196196 22 (9) Potential for public-private partnerships. The
197197 23 study shall explore the possibility of engaging
198198 24 public-private partnerships to fund, build, and operate
199199 25 the new water distribution system. The study shall also
200200 26 evaluate the potential advantages and risks associated
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211211 1 with such partnerships, including the potential for
212212 2 greater efficiency, cost-sharing, and infrastructure
213213 3 investment.
214214 4 (10) Municipal wells and local infrastructure. The
215215 5 study shall examine the following:
216216 6 (A) State of infrastructure. The study shall
217217 7 assess the condition of municipal wells used by
218218 8 municipalities that do not solely rely on the City of
219219 9 Chicago for water supply. The study shall include an
220220 10 evaluation of existing well infrastructure, such as
221221 11 pump systems, pipelines, storage tanks, treatment
222222 12 facilities, maintenance needs, and associated costs
223223 13 for repairs or upgrades.
224224 14 (B) Wells expiring and costs of replacement. The
225225 15 study shall catalog the expiration or decommissioning
226226 16 dates of wells in municipalities using wells as a
227227 17 primary or supplementary water source, including the
228228 18 age of the wells, expected lifespans, and projected
229229 19 decommissioning timelines. The study shall also
230230 20 evaluate the costs associated with replacing or
231231 21 upgrading these wells, including drilling new wells,
232232 22 expanding storage capacity, and upgrading treatment
233233 23 systems to meet modern standards and regulatory
234234 24 requirements.
235235 25 (C) Costs of infrastructure improvements. The
236236 26 study shall examine the costs of necessary
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247247 1 infrastructure improvements in municipalities with
248248 2 aging or inadequate water infrastructure, including
249249 3 system-wide assessments, repairs, expansions, or full
250250 4 replacements. The study shall project the funding
251251 5 required to bring the infrastructure up to code,
252252 6 maintain system reliability, and ensure the
253253 7 sustainability of local water supplies.
254254 8 (D) Impacts of wells on overall water cost. The
255255 9 study shall consider the financial impacts on
256256 10 municipalities' water costs, including any savings or
257257 11 increases that could result from relying on well water
258258 12 versus purchasing water from the City of Chicago or an
259259 13 alternative distribution authority. The study shall
260260 14 include energy costs, maintenance of infrastructure,
261261 15 and the long-term sustainability of groundwater
262262 16 resources in making this consideration.
263263 17 Section 15. Public hearings. The Commission on Government
264264 18 Forecasting and Accountability shall hold at least 2 public
265265 19 hearings to solicit input from municipal representatives,
266266 20 water industry experts, and other stakeholders and include any
267267 21 relevant information resulting from those hearings in the
268268 22 study.
269269 23 Section 20. Reporting requirements. The Commission on
270270 24 Government Forecasting and Accountability shall complete the
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281281 1 study and submit a report that includes an executive summary,
282282 2 detailed findings, and any recommendations resulting from the
283283 3 study to the General Assembly and the Governor no later than
284284 4 one year after the effective date of this Act.
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