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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4409
<br /> promote efficiency.301 Treasury as supplemented by Department of by the Environmental Protection Agency
<br /> encourages recipients to use strong labor Labor regulations (29 CFR part 5). (EPA). By referring to these existing
<br /> standards,including project labor Treasury will continue to seek programs,with which many recipients
<br /> agreements (PLAs) and community information from recipients on their are already familiar,Treasury intended
<br /> benefits agreements that offer wages at workforce plans and water, sewer,and to provide flexibility to recipients to
<br /> or above the prevailing rate and include broadband projects undertaken with respond to the needs of their
<br /> local hire provisions.Treasury also SURF funds.This reporting will communities while facilitating
<br /> recommends that recipients prioritize in support transparency and competition recipients'identification of eligible
<br /> their procurement decisions employers by enhancing available information on projects. Furthermore,by aligning
<br /> who can demonstrate that their the services being provided. Since SURF eligible uses with these existing
<br /> workforce meets high safety and publication of the interim final rule, programs,Treasury could ensure that
<br /> training standards (e.g.,professional Treasury has provided recipients with projects using the SURF are limited to
<br /> certification, licensure,and/or robust in- additional guidance and instructions on "necessary investments."
<br /> house training),that hire local workers the reporting requirements.302 Public Comment:Treasury received
<br /> and/or workers from historically Environmental and Other Generally many comments responding to the
<br /> underserved communities,and who Applicable Requirements water and sewer infrastructure
<br /> directly employ their workforce or have provisions of the interim final rule from
<br /> policies and practices in place to ensure Treasury cautions that, as is the case state,local,and Tribal governments,
<br /> contractors and subcontractors meet with all projects engaged in using the industry trade associations,public
<br /> high labor standards. Treasury further SURF funds,all projects must comply interest groups,private individuals, and
<br /> with applicable federal,state,and local other interested parties. Commenters
<br /> encourages recipients to prioritize law.In the case of infrastructure
<br /> employers (including contractors and requested that Treasury provide a wider
<br /> projects in particular,this includes set of eligible uses for water and sewer
<br /> subcontractors)without recent environmental and permitting laws and g
<br /> violations of federal and state labor and p g infrastructure beyond those uses
<br /> employment laws. regulations. Likewise,as with all capital articulated by the DWSRF and CWSRF,
<br /> expenditure projects using SURF suggesting that Treasury expand the
<br /> Treasury believes that such practices funds,projects must be undertaken and definition of necessary water and sewer
<br /> will promote effective and efficient completed in a manner that is infrastructure.
<br /> delivery of high-quality infrastructure technically sound,meaning that they Treasury Response:In response to
<br /> projects and support the economic must meet design and construction commenters,Treasury is expanding the
<br /> recovery through strong employment methods and use materials that are eligible use categories for water and
<br /> opportunities for workers. Such approved,codified,recognized,fall sewer infrastructure, discussed in
<br /> practices will also reduce the likelihood under standard or acceptable levels of further detail below.Because the
<br /> of potential project challenges like work practice,or otherwise are determined to interim final rule aligned the definition
<br /> stoppages or safety accidents,while be generally acceptable by the design of necessary water and sewer
<br /> ensuring a reliable supply of skilled and construction industry. infrastructure with the eligible uses
<br /> labor and minimizing disruptions,such 1.Water and Sewer Infrastructure included in the DWSRF and CWSRF,
<br /> as those associated with labor disputes Treasury is reflecting in the final rule a
<br /> or workplace injuries.That will,in turn, Sections 602(c)(1)(D) and Section revised standard for determining a
<br /> promote on-time and on-budget 603(c)(1)(D) of the Social Security Act necessary water and sewer
<br /> delivery. provide that recipients may use the infrastructure investment for eligible
<br /> Furthermore, among other SURF funds"to make necessary water and sewer uses beyond those uses
<br /> investments in water[and] sewer. that are eligible under the DWSRF and
<br /> requirements contained in 2 CFR 200, infrastructure."The interim final rule
<br /> Appendix II, all contracts made by a CWSRF.
<br /> recipient or subreci lent in excess of permitted a broad range of necessary
<br /> p p investments in projects that improve Interpretation of Necessary Investments
<br /> $100,000 with respect to water, sewer, access to clean drinking water and and Water and Sewer Infrastructure
<br /> or broadband infrastructure project that improve wastewater and stormwater Necessary Investments:As discussed
<br /> involve employment of mechanics or laborers must include a provision for infrastructure systems.As discussed above,Treasury considers an
<br /> below,after review of comments investment in infrastructure to be
<br /> compliance with certain provisions of received on the interim final rule, necessary if it is (1)responsive to an
<br /> the Contract Work Hours and Safety Treasury has made changes in the final identified need to achieve or maintain
<br /> Standards Act,40 U.S.C. 3702 and 3704, rule to expand the scope of eligible an adequate minimum level of service,
<br /> water and sewer projects. which for some eligible project
<br /> 301 Treasury received several comments related to its encouragement of certain wage and labor Summary of Interim Final Rule and categories may include a reasonable
<br /> standards in the Supplementary Information to the Final Rule Structure projection of increased need,whether
<br /> interim final rule.Some commenters opposed this due to population growth or otherwise
<br /> encouragement,arguing that even encouragement Background:In the interim final rule, and (2) a cost-effective means for
<br /> and reference to PLAs and prevailing wage laws Treasury aligned eligible uses of the meeting that need,taking into account
<br /> could lead to confusion or make it more likely that SURF with the wide range of types or
<br /> recipients would apply labor standards in ways that available alternatives. In addition,in the
<br /> t es o projects at woulde
<br /> would discourage competition and raise project categories projec that b case of investments in drinking water
<br /> costs.Conversely,some commenters supported the eligible to receive financial assistance service infrastructure to supply drinking
<br /> encouragement of the use of certain standards, through the Clean Water State Revolving
<br /> including giving preference to employers that meet Fund(CWSRF) or DrinkingWater State water to satisfy a projected increase in
<br /> those that population,the project must also be
<br /> certain employment standards(e.g., Revolving Fund(DWSRF) administered projected to be sustainable over its
<br /> maintain high safety and training standards) p
<br /> because it would support the goal of completing estimated useful life. As detailed further
<br /> water,sewer,and broadband projects efficiently 302 See U.S.Department of the Treasury, below,DWSRF and CWSRF eligible
<br /> and safely.As in the interim final rule,this Compliance and Reporting Guidance,21(June 24,
<br /> encouragement does not impose a legally binding 2021),https://home.treasury.gov/system/files/l36/ projects continue to be presumed to be
<br /> restriction on recipients. SLFRF-Compliance-and-Reporting-Guidance.pdf. necessary investments under the final
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