F Flint Water Crisis Public Archive

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Debbie Baltazar Steve Marquardt

RE: Flint Water Request

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xxxEND_PAGE:deq21_b244_0800_0801_1 Total ask was for $30M There are 2 funding issues raised: 1) $20 M in outstanding loans under DWSRF. We had previously indicated that they could not be forgiven under federal rules. He asked if a loan for $20M could be given and forgiven or was looking for state funding. No. The FY15 appropriations dictate, “The recipient agrees to provide additional subsidization in the form of principal forgiveness, negative interest rate loans, or grants to recipients of eligible Drinking Water State Revolving loans in accordance with the Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235), and shall be so used by the recipient only where such funds are provided as initial financing or to buy, refinance, or restructure debt obligations only where such debt was incurred on or after the date of enactment of P.L. 113-235.” The $20M in debt occurred prior to this date. Also, the MI FY 15 total DWSRF allocation is $27,349,000. States are able to use 20%-30% of the allocation for principal forgiveness so MI be looking at $5.5M-$8.2M in total for the whole state. MI has completed their state FY16 Intended Use Plan which includes who would get loans and principal forgiveness. Flint did not apply. 2) $10M request for “replacing service lines” to address lead. Flint could apply to MI and may be eligible for principal forgiveness depending on Congressional appropriations levels and requirements as well as State decisions on how to allocate. Seems that Flint would need to look at other state funds to address the $20M and should talk to the SRF program about the future $10M which would be a loan vs a grant. Please let me know if questions. thanks Steve Marquardt USEPA Region 5 77 West Jackson Blvd Chicago, iHinois 6G604 (312)553-3214