Bill Mcbride

Erik — thank you for your time and assistance in this important matter. Attached, please find the questions we would like to discuss during tomorrow’s call. These questions are only intended to facilitate our discussion; we are not seeking written responses. xxxEND_PAGE:treasury01_b38_6783_6976_138 Questions for Michigan Officials Federal Funding e The Administration recently announced that it would provide $82 million in funding to the State of Michigan to help deal with the situation in Flint. It is our understanding that the money is the State’s allotment of FY 2016 Clean Water and Drinking Water State Revolving Fund dollars. ° Of the $82 million, how much is the State planning to allot to Flint specifically? ° What is the timeframe under which Flint’s allotment can be disbursed? e Upon the President’s emergency declaration for Flint, FEMA made $5 million available for immediate use for items like potable water and testing kits. What is the timeframe for disbursing these federal dollars? e What is the difference in federal funding that could be made available under the disaster declaration that Michigan sought, and the emergency declaration that the Obama Administration ultimately issued? e Does the State have an accurate assessment of how much federal assistance would be needed within the next 12 months and for what purpose (please see below)? State Funding e Does the State have any funds available from its FY 2015 allotment from the State Revolving Fund that it can dedicate to Flint? e How much funding does the State of Michigan have available over the next 12 months to work on fixing this problem? e Isit accurate that to-date, Michigan has provided $37.3 million for Flint relief? fe) Last week the Governor signed a supplemental bill to provide $28 million to Flint to supply free bottled water, faucet filters, and testing kits; place nurses in local schools for monitoring purposes; and enhance WIC services. What is the timeframe for disbursing these funds? fe) In Oct. 2015, the State provided $9.3 million to move Flint back to Detroit’s water system, test drinking water, and provide other services. Has this funding already been disbursed? e There is currently a measure pending in Michigan that would provide another $30 million in order to credit citizens’ water/sewer bills. Is this expected to pass? Is this $30 million entirely the state’s money or is it tied to a federal program in some way? xxxEND_PAGE:treasury01_b38_6783_6976_139 Focus of Needed Work Is the State’s goal to restore the corrosion control system or to replace the lead pipe infrastructure? How much actual, on the ground work can be completed in Flint in the next 12 months and what is the cost to complete that work? Ata briefing for Congressional staff yesterday, the combined federal agencies (HHS, EPA, CDC, USDA, and OASH) said the key issue right now is to restore the corrosion control system. Does the State agree with this assessment? What is the most accurate estimate for the cost to fix the corrosion control system? Also at that briefing, EPA relayed a non-federal estimate that replacing Flint’s lead service lines would cost about $75 million. ° EPA said Flint contains 14,000 to 15,000 lead service lines (combined public/private figure) and that it would take $3000 to $5000 per line to replace. Does the State agree with this assessment? ° Does the State have a breakdown of the number of public lines versus private lines? What is the most accurate estimate for the cost to fix the water infrastructure in Flint and what type of work is required to fix the water infrastructure? Does this include replacing both public and private pipes? xxxEND_PAGE:treasury01_b38_6783_6976_140 Robert, Carta M. (T reasury) .

5.docx

Here’s a simple offer for the Senate Its two pieces (1) Allow the State to forgive the current $21m DWREF loan to Flint AND recapitalize the fund by the same amount so other communities in Michigan aren’t hurt (2) Provide an additional $25m capitalization each year for 5 years to the OWRF (above the normal $25m/yr) directed toward communities under an emergency declaration. The capitalization could be converted to a forgivable loan based on a viable implementation plan #2 could be modified based on legislative appetite Call with questions

Attached is the summary and the language we are working with. If you want to hope on a quick call | can walk you all through it real quick. Bottom line e Up to $640m in loans paid back in 35 years, at subsidy cost to US Treasury of $64m paid for out the Leaking Underground Storage Tank Trust Fund e Up $160 in SRF loans paid back in 5 years paid for out the Leaking Underground Storage Tank Trust Fund e Authorization for $20m in loan forgiveness for the State to offer to the City of Flint Instead of the $200m for the Centers for Excellence on Lead Exposure, directs Agency for Toxic Substance and Disease Registry (“ATSDR”) to establish a lead exposure registry for Flint, Michigan and to provide health consultations for the citizens of Flint. (I will point out that even if the loans are amendable to the Ds, this Centers for Excellence is a major Stabenow priority and will be what she says she has to have). We have engaged with the HELP Committee on working an HHS/nutrition solution that may serve as an alternative. Alex 202-224-8260 xxxEND_PAGE:treasury01_b41_7622_7971_319 Flint, Michigan Emergency Disaster Relief-summary. (a) Finding of Emergency. The intent of the emergency finding is to distinguish the situation in Flint from every other city with infrastructure issues. (b) State Revolving Loan Fund Assistance Under current law, the federal government capitalizes state drinking water revolving loan funds to allow states to give loans to drinking water systems for infrastructure improvements. (1) Under current law, the Safe Drinking Water Act authorizes forgiveness of principal for disadvantaged communities. This paragraph gives the State the authority to forgive the approximately $20 million in outstanding loans to Flint from the state drinking water revolving loan fund. (2 Under current law, states provide loans to cities for drinking water infrastructure. This paragraph authorizes State of Michigan to provide $160,000,000 in loans from the state drinking water revolving loan fund to the City of Flint, Michigan, for the purpose of addressing tead in drinking water, including repair and replacement of public and private drinking water infrastructure. This assistance may include principal forgiveness. (c) Water Infrastructure Financing. (1) This paragraph authorizes EPA to make use of the new WIFIA authority enacted as part of WRRDA 2014, to make secured loans to the State of Michigan to provide assistance to Flint. Under current law, a WIFIA loan may only cover 49% of project costs. This paragraph allows the loan to cover up to 80% of reasonably anticipated project costs. (2) This paragraph makes it clear that any remaining project costs may be paid for with an SRF loan, as is the intent of current law. (d) Funding. (1) Additional SRF Capitalization Grant. (A) This subparagraph makes $160,000,000 [transferred from the Leaking Underground Storage Trust Fund] available to EPA to provide an additional grant to Michigan to capitalize its state drinking water revolving loan fund. (B) This subparagraph requires the state to reimburse that additional grant. (Cc) This subparagraph uses the reimbursement to create a new emergency infrastructure fund. xxxEND_PAGE:treasury01_b41_7622_7971_320 (2) {e) = (g (h = (i) WIFIA Funding. This paragraph provides $64,000,000 [transferred from the Leaking Underground Storage Tank Trust Fund] to EPA to allow it to make secured loans to Michigan under the WIFIA program. Because these secured loans are treated by Treasury as accounts receivable, only the credit/default risk scores. A municipal project of this nature, secured by the state of Michigan as obligor wiil likely yield a much lower credit risk assessment from OMB when loan is processed than 10%; however we are establishing a 10% default risk, which will support loans of up to $640,000,000. If the credit risk is less {as is likely), then less than $64,000,000 is needed to support $640,000,000 in loans and the remainder can be returned to the Leaking Underground Storage Tank Trust Fund. Emergency Infrastructure Fund. This subsection creates an “Emergency Water Infrastructure Fund,” with the $160,000,000 paid back by Michigan. If the emergency fund is not used within 10 years, the balance of the fund is returned to the Leaking Underground Storage Tank Trust Fund. Offset. The offset for the assistance provided in this section is a transfer from the Leaking Underground Storage Tank Trust Fund. City of Flint, Michigan Lead Exposures Registry. This subsection directs ATSDR to establish a lead exposure registry for Flint, Michigan and to provide health consultations for the citizens of Flint. Notification Placeholder on notification to users of lead levels in drinking water [S.2466?] Asset Management Placeholder requiring Flint to carry out an asset management program to provide appropriate operation and maintenance of the infrastructure funded in this section. xxxEND_PAGE:treasury01_b41_7622_7971_321 Pleyte, Beth (Ti reasury)

12315.docx; Flint Blood Lead Level Summary Report Dec.pdf Team, DHHS is sending out this update on Flint blood lead testing this afternoon. Preliminary data indicates that 30 of 1,361 adults and children tested in Flint since October 1 had elevated blood lead levels, according to a report issued today by the Michigan Department of Health and Human Services. We’ve worked with the folks there to make the release as reader friendly and people focused as possible, and also to show some historical context. The graph on the PDF is particularly effective, showing that levels were just as high in 2010. Please share any concerns you may have. Dave xxxEND_PAGE:executiveofficeemails20_b0161_0378_0378_1

This is how am planning to respond to any media inquiries on this letter, which is just a counle so far: We look forward ta continuing work with Congressman Kildee and other officials and stakeholders at the federal, state and local levels toe bring ideas and resources to bear to ensure public health in Flint and clean, safe drinking water. And again, we have the multiole step action plan as well as the independent, bipartisan task farce work underway.

{do not believe we should respond to this over the top letter for both legal and philosophical reasons. Responding to this bust feeds his narrative, Haw about we not issue a letter in response? Here’s my issues: L. ceey ut First paragraph, top of second page. ”...additional steps that need to be taken to remediate the damage done to the people of Flint due to the failures at the state government level, alongside the forgiveness of Flint’s Revolving Funds loan debt if that becomes available.” All of these emotionally charged and essentially unfounded accusations suggest the state’s culnability in levying damages to “the people of Hint”. There are definitely people in Flint (mostly poor and without many resources but also many other people) struggling with an old system, brown water, lead and unsavory health problems that have been put through several months of alarm and struggle, but lets try to deal with human beings and not political bombast. Let’s identify and solve problems. Literally hundreds of state ernployees have worked night and day to reselve these issues. Are we going to blame state employees indiscriminately when our people were simply trying to do their jobs to the best of their ability and were unable to anticipate (for whatever reason} all the consequences? First bullet point. “Land other state resources such as the rainy day and general funds to repair damage to", Sorry, but we're not going to commit the general fund to renair “...Flint’s water distribution 1, What does that mean? Arvtif we sign on to that then where coes it stop and what repairs? Second peragraph. “..hundreds of millions of collars of damage....”. Where did this come frorn? itake it the Congressman is now a self-anncintedd expert on water systems and their cost? Second bullet. “the state create a fund for ongoing assistance...” We already have several funds to deal with lead exposure anc we have multiple programs, WIC, Medicaid, health endowment, etc. to assist people in need. Why would we create another fund? Third paragranh. “. need for significant investments in the local health system in order to respand...”. We already make significant investments in the local system. They were able to identify the clanger early and | would assurne they will te significant players in the future. Additionally, DHHS has a myriad of prograrns already in phace to assist the local health system, which tdan't need to remind averyane is a city owned hospital and for whatever reason never consulted oy the city when the HWA conversion was being studied and proposed. That systern also never objected nor tested the Flint River before, even though the river was always the city’s source backun. Even the proposal pricr to the states involvement considered using two million gallons of Hint River water and that was a public record. But, that’s another issue best left to another dime. Third bullet. “rescind Fint’s obligation to provide 52 million for the cast of connecting....”. The state gave the city $2.1 million to heip the water system during the summer, and part of the agreement te get the $6 million fron the hegisiature for the emergency was contingent on Flint contributing 4 share. 1 xxxEND_PAGE:executiveofficeemails21_b1023_2533_2535_1 ” 7. Fourth paragranh. “for the state’s failures is an abdication of clear responsibility...” First of all, it's nota state’s failures, it is a perhaps avoidable mistake made with the corrosives that was unacceptable to us, the Director and Governor are taking actions to fix the problerns, the health and wellness of the peaple of Flint is our absolute concern, and it’s not an abdication of clear resnansibility. The “..state-appointed emergency manager was in charge...” may well be accurate for the physical change, but the decision to leave the Detroit system was made when the city, the Mayor, the council, the county, local leaders and the KWA was devised and that was well before the physical change. For these reasons and others, ld prefer Sara’s general assistance and aid comments and not responding to the letter.

ido nat beleve we sheauid respond te this over the top letter for both legal and philosophical reasons. Responding to this lust feeds his narrative. How about we noi issue a letter in resmerse? Here’s my issues: L. 4, “ First oaragraph, ten of second page. “additional steps that need ta be taken to remediate the damage done to the people of Flint due to the failures at the state government level, alongside the forgiveness of Flint’s Revolving Funds boan debt if that becomes available.” All of these emotionally charged and essentially unfounded accusations suggest the state’s culpability in levying damages to “the pacnle of Flint”. There are definitely people in Hint (mostly poor and without many resources but alse many other peogie) struggling with an old system, brown water, lead anc unsavory health problems that have been put through several rnonths of alarm and struggle, put fet’s try to deal with human beings and not political bambast, Let’s identify and solve problems. Literally hundreds of state ernployees have worked night and day to resalve these issues. Are we going to Blame state employees indiscriminately when aur people were simply trying to de their inks to the best of their ability and were unable to anticipate (for whatever reason} all the consequences? First bullet paint. “..and other state resources such as the rainy day and general funds to repair darnage done...”. Sorry, but we're rot going to carnmit the general fund to repair ”...FHint’s water distribution system.” What does that meant And if we sign on to that then where does it stop and what repairs? Second paragraph. “..hundreds of millions of dollars of damage....”. Where did this corne from? | teke it the Congresarnan is now a self-appointed expert on water systems and their cost? Second bullet. “the state create a fund for ongoing assistance...” We already have several funds to deal with lead exposure and we have multiple programs, WIC, Medicaid, health endowrnent, etc. to assist people ir need, Why would we create another fund? Third paragraph. “..need for significant investments in the local health system in order to respond....”. We already make significant investments in the local systern. They were able to identify the danger early and | would assume they will be significant players in the future. Additionally, DHHS has a myriad of pragrams already in place to assist the local health system, which I don’t need to remind everyone is a city owned hasnital and for whatever reason never cansulted by the city when the RWA conversion was being studied and proposed. That system also never objected nor tested the Flint River before, even though the river was always the city’s source backun. Even the proposal prior to the state's involvement considered using two million gallons of Flint River water and that was @ public record, But, that’s another issue best left te another time. Third bullet. “rescind Flirt’s obligation to provide $2 million for the cost of connecting....”. The state gave the city 52.1 million to heip the water system during the summer, and part of the agreement to get the $6 million frorn the fegisiature for the emergency was contingent on Flint contributing a share. Fourth paragraph. “..for the state’s failures is an abdication of clear responsibility....°. First of ali, it's nota state’s failures, itis a perhaps avoidable mistake made with the corrosives that was unacceptable te us, the Director and Governor are taking actions to fix the problems, the health and wellness of the peaple of Flint is our absolute concern, and it’s not an abdication of clear responsibility. The “..state-appointed emergency manager was in charge...” may well be accurate for the physical change, but the decision to leave the Detroit system was made when the city, the Mayor, the council, the county, local leaders and the KWA was devised and that was well before the physical change. For these reasons and others, Pd prefer Sara‘’s general assistance and aid cornments and not responding to the letter. 1 xxxEND_PAGE:executiveofficeemails20_b0565_1840_1842_1

xxxEND_PAGE:executiveofficeemails21_b1023_2533_2535_2 Hi Sara: I’ve attached a copy of a letter Congressman Kildee sent to Gov. Snyder last week concerning Flint water issues. | didn’t know if there has been a formal reply and/or if you would want to comment on it. Thanks, Ron Fonger MLive Media Group Reporter email rfenge Yt address 540 S. Saginaw St. #101, Flint MI 48502 xxxEND_PAGE:executiveofficeemails21_b1023_2533_2535_3

xxxEND_PAGE:executiveofficeemails21_b1181_2973_2973_1

Importance: High ENE This was passed along by a few people who have received, Begin forwarded message: 5D Date: October 22, 2015 at 6:39:37 PM EDT

Importance: High Fyt— This was passed along by 4 few people wha have recaived, Begin forwarded message: Date: October 22, 2015 at 6:39:37 PM EDT

Click here to open this e-mail in its own browser windew Click here to open a plain text version of this email Dear The Flint water crisis is a failure of government at every level, and | am committed to increasing | transparency and finding answers to ensure thai these failures never happen again. That's why | | have called far an investigetion into the causes of water orablems in Flint. Simply put, high lead levels in Flint’s drinking waier are unacceptable, and there must be : accountability. | As part of my ongoing efforts, | am holding a telephone town hall with constituents on Wednesday, October 28th, at 7 pan. ET to provide an update on ry efforis. Pll be joined by both | Dr. Mona Hanna-Attisha and Dr. Marc Ecwares, who both conducted critical tests that exposed unaccepiabis lead levels in Flint. On the live call, we will aiso answer quesiions frorn Flint residents. if you're interested in joining our conversation, please RSVP hers, or fill out the form below. What is your preferred Prefix (Mr./Mrs./Ms./Dr., etc)? ft ] | What is your First Name? ot ] : What is your Last Name? [ ] What phone number would you like to use to participate in the telephone town hall? i ] : What is your Email Address? | What is your Address? : What is your Zip Code? [ ] xxxEND_PAGE:executiveofficeemails20_b0572_1856_1857_1 [RSVP!] For months, | have been pressing state and federal agencies for immediate resources and aciion to | improve and restore confidence in water quality. At the federal level, | am pushing for resources to | ensure the safety of water, but also make much-needed repairs to our city’s aging water system and infrastructure. The Flint Journal covered these federal efforts in March. You can view them here. | Additionally, | welcome the announcement recenily that the U.S. Environmental Protection Agency : will send technical advisors to Flint to assist the city and state. | have repeatediy asked the EPA to | send these much-needed experts to help improve the water quality and hopefully restore some | public confidence in the safety of our water. Serious issues remain, and there is a long way to go before complete confidence in the city’s | drinking water is restored. | am committed to working to ensure that Flint residents get a thorough : Investigation and answers to their questions. ihope you'll join me next Wednesday for a telephone town hall update on Fiint water. Sincerely, | Dan Kildee t i t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t i i i i i i i i i i i i i i i i i i xxxEND_PAGE:executiveofficeemails20_b0572_1856_1857_2

Sent from my iPhone Begin forwarded message:

ATT00004.htm; 100715 Response to 100215 Snyder Letter.pdf; ATTO0005.htm; 09-22-15 Kildee Requesting Temporary Assistance for Lead in Flint Water.pdf; ATT00006.htm; 03-27-15 - SRF Loan Forgiveness for Flint - EPA (McCarthy).pdf; ATTO00007.htm FYI Begin forwarded message:

Temporary Assistance for Lead in Flint Water.pdf; 03-27-15 - SRF Loan Forgiveness for Flint - EPA (McCarthy).pdf Hi Everyone, Please see the attached letter to Governor Snyder. Can you make sure he sees it? Congressman Kildee is looking forward to the call with Governor Snyder tomorrow to hear updates on the Flint water emergency. Thank you, Jordan Dickinson Legislative Assistant Congressman Dan Kildee (MI-05) 227 Cannon House Office Building Washington, D.C. 20515 Phone: (202) 225-3611 www dankildes house gov xxxEND_PAGE:executiveofficeemails20_b1039_2716_2716_1

Hi Everyone, Please see the attached letter to Governor Snyder. Can you make sure he sees it? Congressman Kildee is looking forward to the call with Governor Snyder tomorrow to hear updates on the Flint water emergency. Thank you, Jordan Dickinson Legislative Assistant Congressman Dan Kildee (MI-05) 227 Cannon House Office Building Washington, D.C. 20515 Phone: (202) 225-3611 www.dankiidee. house pov xxxEND_PAGE:deq18_b360_3248_3248_1

The attached letter was sent to Congressman Kiidee this morning. We. Slightly different version sent to Senators Peters and Stabenow. xxxEND_PAGE:executiveofficeemails20_b0040_0074_0074_1

Go figure huh? Sent from my iPhone

He never mentioned this an the call this morning.

nobinshSmichigzan goy>: Agen, Jarrod (GOV) .gery>; Lyon, Nick (DCH) <Lyanh2@michigan cov>; urf dust came in

The call has been scheduled for 11:30 a.m. Monday

Ok. | should be seeing Governor shortly. Will see what his reaction is Sent from my iPhone

Dennis sent a note to Gov asking if he wants more info and telling him that Kildee wants a calls. We will ultimately have to do a call. Don't see how we avoid it. But should be time of our choosing and Gov needs more thorough update beforehand. xxxEND_PAGE:executiveofficeemails20_b0570_1853_1853_1

I didn't realize I responded to Kildees staff also in last message. My point is that Dennis needs to brief Governor Sent from my iPhone Begin forwarded message: