Correspondence among

FYI

Rep. Kildee asks EPA about clearing Flint's $22-million water loans xxxEND_PAGE:deq24_b351_0904_0907_1 Mrimt Eval ¥ Ron Former | fongertairdivescom 7) RedditEmail <imageoun dpe >t FLINT, MI-- U.S. Rep. Dan Kildee says the state may have the authority to forgive Flint’s $22 million in remaining water loans, potentially freeing up that money for “bnmediate water infrastructure improvements.” "We don't know if the state would grant relief, (but} we don't want to be in a position where they think they don't have the authority,” Kildee said today, April 8. The congressman asked U.S. Environmental Protection Agency Administrator Gina McCarthy for clarification on whether the debt ean be forgiven, citing two provisions in federal law that could allow Gov. Rick Snyder to take action because of Flint's status as a disadvantaged community. Kildee said he made the request in a March 26 letter to the EPA. MLive-The Flint Journal could not immediately reach an agency representative for comment. Dave Murray, a spokesman for Snyder, said in an email that Snyder "doesn't believe it is appropriate to answer hypothetical questions." Murray said last month that the state Treasury Department “doesn't have the legal authority to forgive loans, and this has been shared with Flint city leaders." His email today said the loans are a mix of federal and state dollars and said treasury officials do “not believe there is any pathway in federal law that would allow for loan forgiveness.” "Gov. Snyder and the state continue to offer assistance to city leaders in their efforts to address long-standing water infrastructure issues in Flint,” the statement says. Rildee said he believes it's more than likely that Snyder has the authority to act, based in part on a legal opinion from the Congressional Research Service. xxxEND_PAGE:deq24_b351_0904_0907_2 Kildee's request comes less than a month after Fiint Mayor Dayne Walling renewed his request to Snyder to forgive the water loans because of the city’s continuing financial emergency. Snyder declared Flint was in a financial emergency in 2011 after a review team issued a report, and since then the city has been run by a succession of four state- appointed emergency managers. Emergency manager Jerry Ambrose authorized the restructuring of Flint’s four outstanding Drinking Water Revolving Fund bonds on March 19, postponing current principal payments and freeing up $2.2 million to help fix water safety and quality in the city. Murray said the state allowed that action so that the loan repayments can be used for expenses tied to "Maintaining safety and improving the quality of Flint water.” The city's water bonds are currently financed at a rate of 2.5 percent, and delaying the principal payment will increase the cost of the borrowing by approximately 2 pereent ~ or $228,000 ~ over the 20-vear life of the issues, the city has said. The city has been struggling with the quality of its drinking water since it started using the Flint River as a water source in April 2014. Flint was found te be in violation of the federal Safe Drinking Water Act because the annual average level of total trihalomethanes (TTHM) at two testing locations in the city since April 2014 was too high. TTHM is a byproduct of chlorinating water and warnings issued by the city say the contaminant in high levels could increase the risk of cancer if consumed over many years. The most recent tests have shown that each of eight sampling locations in the city had acceptable levels of TTHM, but residents and City Council members have continued to complain about water quality issues like discoloration and cdor. City officials have said the water meets safety standards for drinking, and that those quality issues are tied to Fiint's aging water infrastructure, which includes distribution pines that are breaking at a rate of nearly one per day and which are too large for the current population, xxxEND_PAGE:deq24_b351_0904_0907_3 Kildee said Flint is among older cities in Michigan that are struggling with population loss and maintaining infrastructure that was built decades ago when more people lived here to support it. "It makes it harder for the city to dig itself out of a hole (now),” Kildee said, "I think it does create a unique circumstance for cities like Flint ... trying to go from the old to the new economy.” Many of the water problems here have come to light since the city began using the Flint River as its water source one year ago. Although the city and Genesee County are currently building a new water pipeline to Lake Huron, it's not expected to be completed until some point in 2026. e §6Rep. Kildee asks EPA about clearing Flint’s $22-million water loans e §6Flint pastors plan news conference on ‘lack of progress’ on Flint water issues e §6Flint councilman equates water troubles to ‘genocide’ by governor e §6Flint Mayor Dayne Walling: I drink Fiint water every day e €6TTHM contaminant notices, water quality updates ready for mailing to Flint customers http://www asks feds about forgive htmikine art river Wendy Fitzner, Chief East Project Management Unit, Revolving Loan Section Office of Drinking Water and Municipal Assistance 517-248-5406 xxxEND_PAGE:deq24_b351_0904_0907_4

Rep. Kildee asks EPA about clearing Flint's $22-million water loans Print Email ae Ron Fonger | [email protected] The Flint Journal on April 08, 2015 at 2:01 PM Reddit Email _ FLINT, MI -- U.S. Rep. Dan Kildee says the state may have the authority to forgive Flint's $22 million in remaining water loans, potentially freeing up that money for "immediate water infrastructure improvements." "We don't know if the state would grant relief, (but) we don't want to be in a position where they think they don't have the authority," Kildee said today, April 8. The congressman asked U.S. Environmental Protection Agency Administrator Gina McCarthy for clarification on whether the debt can be forgiven, citing two provisions in federal law that could allow Gov. Rick Snyder to take action because of Flint's status as a disadvantaged community. Kildee said he made the request in a March 26 letter to the EPA. MLive-The Flint Journal could not immediately reach an agency representative for comment. Dave Murray, a spokesman for Snyder, said in an email that Snyder "doesn't believe it is appropriate to answer hypothetical questions." Murray said last month that the state Treasury Department "doesn't have the legal authority to forgive loans, and this has been shared with Flint city leaders." xxxEND_PAGE:deq03_b085_0098_0100_1 His email today said the loans are a mix of federal and state dollars and said treasury officials do "not believe there is any pathway in federal law that would allow for loan forgiveness." "Gov. Snyder and the state continue to offer assistance to city leaders in their efforts to address long-standing water infrastructure issues in Flint," the statement says. Kildee said he believes it's more than likely that Snyder has the authority to act, based in part on a legal opinion from the Congressional Research Service. Kildee's request comes less than a month after Flint Mayor Dayne Walling renewed his request to Snyder to forgive the water loans because of the city's continuing financial emergency. Snyder declared Flint was in a financial emergency in 2011 after a review team issued a report, and since then the city has been run by a succession of four state-appointed emergency managers. Emergency manager Jerry Ambrose authorized the restructuring of Flint's four outstanding Drinking Water Revolving Fund bonds on March 19, postponing current principal payments and freeing up $2.2 million to help fix water safety and quality in the city. Murray said the state allowed that action so that the loan repayments can be used for expenses tied to "maintaining safety and improving the quality of Flint water." The city's water bonds are currently financed at a rate of 2.5 percent, and delaying the principal payment will increase the cost of the borrowing by approximately 2 percent -- or $228,000 -- over the 20-year life of the issues, the city has said. The city has been struggling with the quality of its drinking water since it started using the Flint River as a water source in April 2014. Flint was found to be in violation of the federal Safe Drinking Water Act because the annual average level of total trihalomethanes (TTHM) at two testing locations in the city since April 2014 was too high. TTHM is a byproduct of chlorinating water and warnings issued by the city say the contaminant in high levels could increase the risk of cancer if consumed over many years. The most recent tests have shown that each of eight sampling locations in the city had acceptable levels of TTHM, but residents and City Council members have continued to complain about water quality issues like discoloration and odor. City officials have said the water meets safety standards for drinking, and that those quality issues are tied to Flint's aging water infrastructure, which includes distribution pipes that are breaking at a rate of nearly one per day and which are too large for the current population. Kildee said Flint is among older cities in Michigan that are struggling with population xxxEND_PAGE:deq03_b085_0098_0100_2 loss and maintaining infrastructure that was built decades ago when more people lived here to support it. "It makes it harder for the city to dig itself out of a hole (now)," Kildee said. "I think it does create a unique circumstance for cities like Flint ... trying to go from the old to the new economy." Many of the water problems here have come to light since the city began using the Flint River as its water source one year ago. Although the city and Genesee County are currently building a new water pipeline to Lake Huron, it's not expected to be completed until some point in 2016. FLINT WATER e Rep. Kildee asks EPA about clearing Flint's $22-million water loans e Flint pastors plan news conference on ‘lack of progress’ on Flint water issues e Flint councilman equates water troubles to 'genocide' by governor e Flint Mayor Dayne Walling: | drink Flint water every day e TTHM contaminant notices, water quality updates ready for mailing to Flint customers http://www. Wendy Fitzner, Chief East Project Management Unit, Revolving Loan Section Office of Drinking Water and Municipal Assistance 517-248-5406 xxxEND_PAGE:deq03_b085_0098_0100_3

There were a number of quustions this morning during cur SMT meeting about what is new in Flint. {rr proposing te include the following paragraph in the SMT summary. Please let me knew Hf you have concerns or think we need to add additional information, ODWMA shared that we are still working with and following the situation in the city of Flint. H was reported that the city council voted to return to water supplied by DWSD. However, the emergency manager and the mayor indicated that they will be continuing to use the Flint River. DEQ staff continues to provide oversight to ensure that water provided by the city of Flint mmats drinking water standards, As a result of elevated trihalamethane (TTHM} levels last summer, the city continues to excaad the locational running annual average for TTHMs at one sampling site. However, all sarnmles this carter were low. ft annears that operational changes imolemented by the olant are managing previous water quality concerns, Gn another note, the city has requested U.S. EPA nrovide principal forgiveness for past low- interest SRF (State Revolving Fund) loans and DWF (Drinking Water Revolving Fund} loans. We are awaiting an official response from EPA, Liane

FYI

Date: Thursday, February 26, 2015 8:43:26 AM FYI

PY Kelly Greer @ 517.284.5409

Date: Monday, January 26, 2015 8:23:13 AM FYI Kelly Greew @ 517.284.5409