|
4408 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations
<br /> counterfactual growth rate)incorporate software,and protection of critical particular,the final rule permits use of
<br /> generous assumptions to give recipients infrastructure;health services; SLFRF funds for certain dam and
<br /> flexibility and to account for variation environmental remediation; school or reservoir restoration projects and certain
<br /> among recipients' experiences during educational services; and the provision drinking water projects to support
<br /> the pandemic. of police,fire,and other public safety population growth. The nature of these
<br /> Government Services services. additional uses is such that additional
<br /> The aforementioned list of factors must be considered in
<br /> The SUPPLEMENTAL INFORMATION to the government services is not exclusive. determining whether one of these
<br /> interim final rule provided a non- However,recipients should be mindful additional uses is a necessary project.In
<br /> exhaustive list of examples of services that other restrictions may apply, addition,Treasury recognizes that there
<br /> that are government services.The including those articulated in the may be a need for improvements to
<br /> interim final rule also discussed why section Restrictions on Use. In the final broadband beyond those households
<br /> neither payment of debt service nor rule,Treasury is maintaining the and businesses with limited existing
<br /> replenishing financial reserves limitations on government services service as defined in the interim final
<br /> constitutes government services,as included in the interim final rule and rule. Treasury has replaced this specific
<br /> these expenditures do not provide has addressed and responded to public requirement based on an understanding
<br /> services but relate to the financing of commenters on these issues in the that broadband investments may be
<br /> such services. Similarly,government section Restrictions on Use. necessary for a broader set of reasons.
<br /> services under the interim final rule did
<br /> not include satisfaction of any D.Investments in Water, Sewer, and Given this expansion of what is
<br /> obligation arising under or pursuant to Broadband Infrastructure considered in scope as a water,sewer,
<br /> or broadband infrastructure project,the
<br /> a settlement agreement,judgment, Summary of Interim Final Rule final rule provides a further elaboration
<br /> consent decree, or judicially confirmed Under the ARPA,recipients may use of Treasury's understanding of the
<br /> debt restructuring in a judicial, funds to make necessary investments in conditions under which an
<br /> administrative,or regulatory water, sewer,and broadband infrastructure project will be considered
<br /> proceeding,unless the judgment or infrastructure. The interim final rule to be a necessary investment. Treasury
<br /> settlement required the provision of provided recipients with the ability to considers a necessary investment in
<br /> government services. use funds for a broad array of uses infrastructure to be one that is (1)
<br /> Public Comment.Treasury received within these categories. responsive to an identified need to
<br /> several comments requesting further The interim final rule discussed two achieve or maintain an adequate
<br /> clarification regarding the scope of general provisions that apply across all minimum level of service,which may
<br /> government services,including asking water, sewer,and broadband include a reasonable projection of
<br /> for either a specific definition of infrastructure investments. First,the increased need,whether due to
<br /> government services or that a specific interim final rule addressed the population growth or otherwise and(2)
<br /> use be expressly deemed to be a meaning of"necessary"investments as a cost-effective means for meeting that
<br /> government service. Some commenters meaning those designed to provide an need,taking into account available
<br /> disagreed with the exclusions from adequate minimum level of service and alternatives.In addition,given that
<br /> government services in the interim final unlikely to be made using private drinking water is a resource that is
<br /> rule. For instance,many of the sources of funds. Second,the interim subject to depletion,in the case of
<br /> comments Treasury received suggested final rule encouraged recipients to use investments in infrastructure that
<br /> that replenishing reserve funds and at strong labor standards in water, sewer, supply drinking water in order to meet
<br /> least certain types of debt service should and broadband projects,as discussed projected population growth,the project
<br /> be treated as providing governmental below. must be projected to be sustainable over
<br /> services. Some commenters also its estimated useful life.
<br /> suggested that a recipient should be able Necessary Investments
<br /> to use funds for costs incurred before The statute limits investments to Not included in the list of criteria
<br /> above is the requirement in the interim
<br /> March 3, 2021. Other commenters asked those that are necessary. As discussed in q
<br /> final rule that the project be unlikely to
<br /> Treasury to maintain the prohibition on more detail below,Treasury determined
<br /> be made using private sources of funds.
<br /> using the funds to pay debt service. that the types of water and sewer
<br /> p Y projects that were authorized under the Given that it may be difficult to assess
<br /> TreasuryResponse:Treasury Y
<br /> continues to believe that the lists of interim final rule by reference to in a particular case what the probability
<br /> activities that either are or are not existing Environmental Protection of private investment in a project would
<br /> be,Treasury has eliminated this
<br /> providing government services are Agency(EPA) programs would in all
<br /> accurate but is clarifying here that, cases be necessary investments given standard from the meaning of necessary
<br /> but still encourages recipients to
<br /> generally speaking,services provided by the conditions applicable to such EPA
<br /> the recipient governments are programs. Similarly,the interim final prioritize projects that would provide
<br /> "government services"under the rule's definition of eligible broadband the greatest public benefit in their
<br /> interim final rule and final rule,unless projects as those designed to provide a respective jurisdictions.
<br /> Treasury has stated otherwise. certain standard of service to those Strong Labor Standards in Water, Sewer,
<br /> Government services include,but are households and businesses with limited and Broadband Construction
<br /> not limited to,maintenance or pay-go existing service was based on the
<br /> funded building 300 of infrastructure, statutory requirement that investments As stated in the Supplementary
<br /> including roads;modernization of in water,sewer, and broadband must be Information to the interim final rule,
<br /> cybersecurity,including hardware, "necessary." Treasury encourages recipients to carry
<br /> As discussed further below,Treasury out investments in water,sewer, or
<br /> soo pay-go infrastructure funding refers to the has expanded the scope of what is an broadband infrastructure in ways that
<br /> practice of funding capital projects with cash-on-hand from taxes,fees,grants,and other sources, eligible water and sewer infrastructure produce high-quality infrastructure,
<br /> rather than with borrowed sums. project to include additional uses. In avert disruptive and costly delays, and
<br />
|