Lee Donner

| don’t know why it wasn’t dated. | believe there are communications between EPA and DEQ where EPA estimates the timeframe for the letter. | may be mistaken, but | think EPA provided the letter in response to an inquiry from DEQ. ll check. Kester K. So Member 215 S Washington Square phone §17-487-4722 Sutte 200 Lansing MI 48933 Fax 517-487-4700 Profile | VeCard Email KSo@dickinsonwright com DICKINSON WRIGHTruc CAICHIGAN ARIZONA RENTUIMY NEVADA <HIC TENNESSEE WASHINGTONDC TORCNTI

| may have asked before; is there a reason this would not have had adate ? Do we know for sure it was 2012-13?

Here is a copy of the EPA memo. It may have been issued in the 2012 to 2013 time frame. Kester K. So Member 216 S Washington Square Phone §17-487-4722 ute Lansing MI 48933 Fax 517-487-4700 | Pwofita 1 Verd Email [email protected] DICKINSON WRIGHTriic MICHIGAN ARIZONA KENTUCM HEADA OHMIC TENNESSEE WASHINSTONG C TORONTO The information contained in this e-mail, including any attachments, is confidential, intended only for the named recipient(s), and may be legally priviteged If you are not the intended recipient, please delete the e-mail and any attachments, destroy any printouts that you may have made and notify us immediately by retum e- mail Neither this transmission nor any attachment shall be deemed for any purpose to be a “signature” or "signed” under any electronic transmission acts, unless otherwise specifically stated herein Thank you xxxEND_PAGE:treasury01_b41_7622_7971_025 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Wate tae ty oBrage MEMORANDLM SUBJECT: — Eligibility of Replacement of Lead Service Lines on Private Property Under the DWSRP. FROM: Joanne Hogan ~ A Attomey- Advisor f) rv In Civil Rights and Financial Law Office | Office of General Counsel THROUGH: Wendel Askew eat \ Assistunt General Counsel H vt Civil Roghts and Financial Law Office Office of General Counsel nd Af . = Ken Redden Byte | Deputy Associate General Counsel Civil Rights and Financial [ aw Office Office of General Counsel TO: Peter Shanaghan Team |.eader Drinking Water State Revolving Fund Team Office of Ground Water and Drinking Water, Office of Water Question Presented. You have asked whether financial assistance from a State’s Drinking Water State Revolving Loan Fund can be used by eligible entities to fund projects that involve replacing lead service lines that may be on private property and that connect to private dwellings. Brief Answer We believe that lead service line projects. regardless of the ownership of the property on which the pipe is placed, may be funded by a State’s DWSRF so long as the toans are made to an eligible entity and all other requirements of the DWSRF are met. xxxEND_PAGE:treasury01_b41_7622_7971_026 Analysis The statute and the regulatory provisions governing the use of State DWSRF funds, though defining which entities may receive funds, do not require the Public Water System to have control over all portions of a project that is Funded by the DWSRF. Congress gave EPA's Administrator the clear authority to determine which projects would be eligible under §1452: “Financial assistance. .. may be used. . . only for expenditures of a type or category which the Administrator has determined, through guidance, will facilitate compliance with national primary drinking water regulations.” PHSA §1452 (a)(2). The only broad statutory limitations on the types of projects that cannot be funded are projects which include monitoring, operation, or maintenance expenditures, or projects for the acquisition of real property unless the purchase is made from a willing seller and the acquisition is integral to the project. 40 CFR §35.3520 (b)(2) sets forth the categories of projects that can be funded by a DWSRF. This provision includes the transmission and distribution of water to be a category of eligible projects. Specifically, the regulation provides examples of such projects to include: “installation or replacement of transmission and distribution pipes to improve water pressure to sale levels or 10 prevent contamination caused by leaks or breaks in the pipes.” See 40 CFR §35.3520 (2){ii). Lead pipes can contaminate water at any point, including on its way to a private home. Allowing a public water system to use its funds to replace such pipes is consistent with this allowable category of projects, and is similarly consistent with the overall health protections of the Safe Drinking Water Act. See PHSA 1452 (a}(1)(A). Note that if a Public Water System wishes to purchase and retain an easement so that it maintains control of such infrastructure, that purchase is authorized as well: “Funds shall not be used for real property or interests therein unless the acquisition is integral to the project authorized... and the purchase is from a willing seller. . .~ PHSA 1452(a)(2). This determination that replacement of lead pipes on privately owned property is an eligible project cost so long as it otherwise complies with the PHSA is consistent with prior approved eligible projects, such as water efficiency projects. that do not require all elements of a project to be under the control of a Public Water System. In a Memorandum dated July 25, 2003, then Assistant Administrator for Water G. Tracy Mehan III informed Water Division Directors in the tegions that projects such as the installation or retrofit of plumbing fixtures and appliances, installation of water meters, and implementation of incentive programs to conserve water, such as rebates or conservation rate structures were all eligible projects under the DWSRF. Therefore. so Jong as the assistance is given to an eligible entity, and the project otherwise mects the Tequirements of the DWSRF., the project may be funded regardless of ownership or control of the resulting infrastructure. xxxEND_PAGE:treasury01_b41_7622_7971_027 Workman, Wayne (TREASURY)