Correspondence between

Thanks, Mel. I'm wondering whether the FY 16 loans have been dispersed yet? I'd like to get an idea how soon, for instance, Flint can apply for the FY17 program and an estimate of how soon they could have that in hand to start working on, say, lead line replacement. Has the EPA indicated that it would expedite their consideration of Michigan's plan for how to spend the FY17 money? Is there an estimate of when the project plan will be submitted by the city?

Hi Melissa - Based on a conversation with EPA, the $80 million referenced in recent media outlets is not new funding. The federal funds are provided each year to support the state's water infrastructure revolving loan programs. The federal funds ($59 million for wastewater and $27 million for drinking water) plus the $17 million of state match and loan repayments from prior years are used to support new infrastructure loans. In 2016, the DEQ has committed to 33 loans totaling $240 million to various communities, including Detroit, Burton, Pontiac, and others. In addition, the DEQ received applications for 45 additional projects totaling $247 million. Flint did not apply for funding in 2016. The totals are more than the $80 million due to the fact of local repayments by other communities. Staff are working with the City of Flint and consulting engineers on a project plan. The project plan will be the top priority in relation to the other projects should/once the City submits a plan. none Original Message-----

Hi Mel, I am the Washington correspondent for the Detroit News. I just left you a voicemail about a story that I'm working on about the Drinking Water Revolving Loan program. I had a few questions about the $80M for FY 17 mentioned by Obama last week, and how soon the DEQ may start accepting loan applications, etc, from municipalities, and what determines 2 xxxEND_PAGE:treasury01_b41_7622_7971_287 whether the loans are forgivable. 1 also understand that there's ongoing discussions between Flint and DEQ regarding loans that the city could use for replacing lead service lines on private property. EPA approved this last fall as a permissible use of the federal Revolving Loan Fund. I'd like to know what the status of those conversations are, and how soon the city could potentially be securing loan funds to begin such work? Thanks, Melissa Burke Melissa Nann Burke Detroit News Washington Bureau 202.662.8736 o. // 202: xxxEND_PAGE:treasury01_b41_7622_7971_288 DEQ, Orinkiny Weter Rovoiving Fan: Fontabio Range Quarterly Roport Fiscal Year: 2018 WRF find QuarterProjects | Date: aHa2016 le (7398-01 Burton Genesee Co Waterman Replacement - Phase 3 ce 7411-01 Grand Rapids Kent Co Tank repairs $3,085,000 ‘and Quarter Total 2 Projects $7,785,000 {ord Quarter Projects "Binding Commitment Date: 8/122016 _ 7405-01 Genesee Co Drain Commissioner Geneses Co Metering Project $5,400,000 7412-01 Detrot DWSD Waterman Replacement $9,375,000 17413-01 Detrot DWSD Watermain Replacement $6,500,000 (3rd Quarter Total 3 Projects $21,275,000 (4th Quarter Projects” = sSS~S*«SBinding CommitmentDate: 8202016 8 : | "7408-01 Oakland Co Pontac Watermamn Rep! Meter Rep! Phase 2 $5,700,000 7410-01 Loch Alpe Sanitary Authority Washtenaw County Watermam Improvement Phase 2 $1,590,000 (th Quarter Tota! 2 Projects $7,280,000 otal Fundable Range Dollars 7 Projects $36,350,000 Future Project . oe 7407-99 Grand Rapids Kent Co 1 Venous future proj $40,815,000 17400-01 Burton Genesee Co 1 Watermain Replacement - Phase 5 $2,215,000 17399-01 Burton Genesee Co 1 Waterman Replacement - Phase 4 $2,995,000 7409-01 Oakland Co Ponbac 1 Watermam Repl, Meter Rep! Phasa 3 $4,800,000 71401 Detrot DWSD—st_—_Watermam Replacement ____ $18,125,000 Total Future Dollare Projected 3 Projects . $85,550,000 Wednesday, January 27, 2016 Page 1 of 1 xxxEND_PAGE:treasury01_b41_7622_7971_289 Dempkowski, Angela (Treasury)