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4392 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations <br /> If a project has total expected cap- and the use is enumerated by Treasury as eligible, and the use is beyond those enumerated by Treas- <br /> ital expenditures of then 254 ury as eligible, then 255 <br /> Less than$1 million ........................ No Written Justification required ............................... No Written Justification required. <br /> Greater than or equal to $1 million, Written Justification required but recipients are not Written Justification required and recipients must <br /> but less than $10 million. required to submit as part of regular reporting to submit as part of regular reporting to Treasury. <br /> Treasury. <br /> $10 million or more ......................... Written Justification required and recipients must <br /> submit as part of regular reporting to Treasury. <br /> In selecting these thresholds,Treasury projects may be less likely to be projects with total expected capital <br /> recognized that capital expenditures reasonably proportional responses. The expenditures of less than$1 million and <br /> vary widely in size and therefore would $10 million threshold also generally will not require recipients to complete, <br /> benefit from tiered treatment to aligns with thresholds in other parts of submit, or meet the substantive <br /> implement eligibility standards while the SLFRF program,such as for requirements of a Written Justification <br /> minimizing administrative burden, enhanced reporting on labor practices. for the capital expenditure. In essence, <br /> especially for smaller projects. For Expenditures from closely related recipients may pursue an enumerated <br /> example,Treasury selected$1 million activities directed toward a common project with total expected capital <br /> as a threshold for whether a recipient purpose are considered part of the scope expenditures of under$1 million <br /> needs to complete a Written of one project. These expenditures can without having to undergo additional <br /> Justification as well as a threshold include capital expenditures,as well as assessments to meet SLFRF <br /> under which capital expenditures expenditures on related programs, requirements. <br /> would be presumed reasonably services,or other interventions.A • Projects with total expected capital <br /> proportional.Treasury estimates that$1 project includes expenditures that are expenditures of at least$1 million but <br /> million would encapsulate the costs of interdependent(e.g., acquisition of land, under$10 million:Recipients should <br /> a significant portion of equipment or construction of the school on the land, complete a Written Justification for the <br /> small renovations. These types of and purchase of school equipment), or capital expenditure and make an <br /> smaller projects are often a necessary are of the same or similar type and independent assessment of whether <br /> and reasonably proportional part of a would be utilized for a common their proposed capital expenditure <br /> response to the public health purpose (e.g., acquisition of a fleet of meets the substantive requirements of <br /> emergency;therefore,the$1 million ambulances that would be used for the Written Justification.Recipients will <br /> threshold provides a simplified pathway COVID-19 emergency response). not be required to submit the Written <br /> to complete smaller projects more likely Recipients must not segment a larger Justification as part of regular reporting <br /> to meet the eligibility standard. At the project into smaller projects in order to to Treasury but should keep <br /> same time,Treasury selected$10 evade review. A recipient undertaking a documentation for their records. <br /> million as the threshold for more set of identical or similar projects (e.g., * Projects with total expected capital <br /> intensive reporting requirements, development of a number of new expenditures of at least$10 million: <br /> estimating that projects larger than$10 affordable housing complexes across the Similar to the above,recipients should <br /> million would likely constitute recipient jurisdiction)may complete complete a Written Justification of the <br /> significant improvements or one Written Justification capital expenditure and make an <br /> construction of mid- or large-sized comprehensively addressing the entire independent assessment of whether <br /> facilities. As discussed above,given set of projects. their proposed capital expenditure <br /> their scale and longer time to meets the substantive requirements of <br /> completion,these types of larger Projects Enumerated as Eligible by the Written Justification. Further, <br /> Treasury recipients will be asked to submit the <br /> 254 Whether or not a Written Justification is Under the public health and negative Written Justification as part of regular <br /> required,recipients should still determine that the economic impacts eligible use category, reporting to Treasury. Similar to other <br /> response is related and reasonably proportional to <br /> the public health emergency and its negative the final rule provides anon-exclusive parts of the SLFRF program, such as on <br /> economic impacts.Treasury recognizes that list of eligible uses of funding for reporting on labor practices,Treasury <br /> enumerated eligible uses are"related"to the public projects that respond to the public recognizes that projects with expected <br /> health emergency and its negative economic <br /> impacts and presumed to be reasonably health emergency or its negative total capital expenditures of at least$10 <br /> proportional,except recipients pursuing projects economic impacts.Treasury has million may be less likely to meet <br /> with expected total capital expenditures equal to or determined that these enumerated eligibility requirements and therefore <br /> greater than$1 million should still independently projects are related to the public health requires recipients to provide an <br /> determine that the expenditures are a reasonably <br /> proportional response.Enumerated projects with emergency and its negative economic enhanced level of information to <br /> total expected capital expenditures under$1 impacts;however,recipients (other than Treasury. <br /> million receive a safe harbor and deemed to meet Tribal governments)undertaking these <br /> the related and reasonably proportional standard. projects with total expected capital Projects Beyond Those Enumerated as <br /> 255 Whether or not a Written Justification is Eligible by Treasury <br /> required,recipients should still determine that the expenditures of$1 million or greater <br /> response is related and reasonably proportional to must still complete and meet the As with all uses,recipients that <br /> the public health emergency and its negative substantive requirements of a Written undertake capital expenditures beyond <br /> economic impacts.Treasury presumes that projects Justification as part of their those enumerated as eligible by <br /> with total expected capital expenditures under$1 <br /> million are reasonably proportional in size to demonstration that the project is a Treasury must meet the two-part <br /> responding to the public health emergency and its related and reasonably proportional framework under Standards: <br /> negative economic impacts;however,recipients response to the harm identified. Designating a Public Health Impact and <br /> should determine that the response otherwise meets . projects with total expected capital Standards:Designating a Negative <br /> the requirements of the standard,including that the <br /> response is related to the public health emergency expenditures of under$1 million: Economic Impact under General <br /> and its negative economic impacts. Treasury provides a safe harbor for Provisions: Structure and Standards, <br />