The U.S. Environmental Protection Agency (EPA) said the City of Peoria is not complying with regulations, because when it rains, storm water and sewage flow into the Illinois River.
Falling to resolve the problem could result in a $800,000 fine against the city.
City Manager Patrick Urich told WMBD that negotiations are continuing with the EPA. He said that while the fine could be as high as $800,000, the city does not have another option.
The city and the federal organization have been negotiating how to remedy the situation for the last 10 years.
He said the if the city instead spends $800,000 on a water quality improvement project, the EPA will take the fine off the table.
Now, leaders are considering a project in the area of Spring Street.
Urich said he was “confident” the city will find a solution.