PUBLIC UTILITIES ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
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Receive the Quarterly Regulatory Report
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director Water Utilities
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The year 2026 represents a period of high-intensity execution for the Department of Public Utilities. The utility is actively managing a convergence of federal oversight from the U.S. Environmental Protection Agency (USEPA) and state-level enforcement by the Illinois EPA (IEPA). The era of "voluntary" improvements has effectively transitioned into a framework of statutory deadlines and enforceable standards.
Key regulatory drivers for 2026 include:
• Lead Elimination: The accelerated eradication of lead service lines under the Lead and Copper Rule Improvements (LCRI).
• Nutrient Reduction: Capital-intensive mandates for phosphorus removal at the Springbrook Water Reclamation Center (WRC).
• Emerging Contaminants: Strict enforcement of PFAS standards and the monitoring of biosolids disposal liabilities.
• Cybersecurity: New state requirements under Illinois HB3576 to harden critical infrastructure.
DISCUSSION:
1. Drinking Water Compliance: Lead Service Line Replacement Program
Staff continues to aggressively implement the Lead Service Line Replacement (LSLR) program. The utility has adopted a "full replacement" strategy to ensure compliance with the Illinois Lead Service Line Replacement and Notification Act, replacing both public and private portions of the line simultaneously.
• Inventory Status: The electronic inventory submitted to the IEPA indicates lead service lines constitute less than 1% of the City’s 47,000+ connections. Approximately 203 lines remain to be addressed as of Q1 2026.
• Operational Progress: Following the successful replacement of 63 lines in 2025, operations have moved into the "grind phase," targeting more complex properties.
• Funding: The City has successfully secured a zero-interest loan through the IEPA State Revolving Fund (SRF). This funding, combined with the Water Capital Charge, ensures the program remains fiscally sustainable while aiming for a "Lead-Free" designation by 2028.
2. Regulatory Permitting: NPDES Renewal Status
Staff has been engaged in protracted negotiations with the IEPA regarding the renewal of the National Pollutant Discharge Elimination System (NPDES) permit for the Springbrook WRC.
• Status: Negotiations are near completion. Staff has reached a tentative agreement with regulators on compliance schedules for nutrient removal.
• Timeline: We anticipate the IEPA will issue the draft permit for Public Notice within the next 30 to 60 days. This will trigger a mandatory 30-day public comment period. Staff will conduct a final technical review of the draft language upon release.
3. Wastewater Capital Program: Springbrook WRC Revitalization
The revitalization of the Springbrook WRC is the primary capital focus for 2026, driven by the need to meet future phosphorus limits.
• Regulatory Driver: While the plant operates under a current phosphorus limit of 1.0 mg/L, the upgrades are designed to meet a future limit of 0.5 mg/L.
• Construction Milestones:
o Nutrient Removal & North Plant Aeration ($66.4M): Transitioning from design to active construction in 2026.
o South Plant Grit & RAS Improvements ($14.1M): Scheduled for substantial completion this year.
o Cloth Media Disc Filters ($36.0M): Currently in engineering design throughout 2026.
• Financing: Unlike the lead program, these projects are funded primarily through General Obligation Bonds (Series 2025 issuance), supported by revenue from the dedicated Phosphorus Surcharge.
4. Emerging Contaminants (PFAS) and Biosolids
Naperville’s drinking water remains fully compliant with federal PFAS standards, thanks to the high quality of our Lake Michigan source water purchased from the DuPage Water Commission.
• Biosolids Management: The primary risk remains the presence of PFAS in wastewater biosolids. Staff is currently disposing of biosolids via land application. However, we are closely monitoring USEPA interim guidance and state legislative trends that could restrict this practice. A shift to landfilling would result in significantly higher operational costs. Staff will continue to monitor this regulatory environment throughout 2026.
5. Cybersecurity Compliance
Cybersecurity is now a regulated operational requirement under Illinois HB3576.
• Implementation: Staff is proceeding with the development of the formal Cybersecurity Program mandated by the state. This includes finalizing asset inventories and incident response plans.
• Audit Status: Staff has issued RFP-25-126 for a comprehensive Cyber Security Audit. The findings from this audit will be used to validate network segmentation and access controls, ensuring compliance with both state law and USEPA Sanitary Survey requirements.
6. Watershed Management
Staff continues to participate in the DuPage River Salt Creek Workgroup (DRSCW) to manage chloride compliance.
• TLWQS Re-Evaluation: 2026 marks the 5-year re-evaluation point for the Time Limited Water Quality Standard (TLWQS) variance. Staff is assisting the DRSCW in aggregating data to demonstrate the effectiveness of our Best Management Practices (BMPs), such as the use of brine and calibrated spreaders, to maintain this variance. Please note that much of the chloride management is conducted by the Department of Public Works.