Correspondence among

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) .

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