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4410 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations
<br /> rule,with the exception of projects for available alternatives to conducting may be made.When faced with such an
<br /> the rehabilitation of dams and these projects.Projects for the extension issue, such as in the case of a
<br /> reservoirs,which the EPA has permitted of drinking water service to meet contaminated well system, a project to
<br /> in certain circumstances under the population growth needs are also often replace the contaminated source can be
<br /> DWSRF and,as discussed below,are particularly expensive, and there are said to be "necessary" even if the
<br /> addressed separately in the final rule. often different ways to meet the needs replaced source is not sustainable over
<br /> In evaluating whether a project would of expanding populations. Treasury will the long term.Expediency may dictate
<br /> respond to a need to achieve or accordingly require that recipients that a shorter-term solution is pursued
<br /> maintain an adequate minimum level of engage in a cost-effectiveness analysis if it is cost-effective and will prevent
<br /> service,a recipient should consider when engaging in projects for the health issues while a longer-term
<br /> whether it would meet the needs of the creation of new drinking water systems, solution can be found. In contrast, an
<br /> population to be served and would dam and reservoir rehabilitation expansion to accommodate population
<br /> satisfy applicable standards. For projects, or projects for the extension of growth cannot be said to be necessary if
<br /> example,a drinking water project must drinking water service to meet it is not sustainable over its estimated
<br /> be sized such that it provides an population growth needs. Other types of useful life.
<br /> adequate volume of water to households eligible water or sewer projects will not Not included in the list of criteria
<br /> and other customers and must meet be subject to this cost-effectiveness test, above is the requirement in the interim
<br /> applicable standards for drinking water including lead line replacement and final rule that the project be unlikely to
<br /> quality under the Safe Drinking Water lead remediation.304 be made using private sources of funds.
<br /> Act(SDWA). Similarly,a centralized In the case of projects that expand Given that it may be difficult to assess
<br /> wastewater treatment project should be drinking water service infrastructure to in a particular case what the probability
<br /> designed to manage updated estimated satisfy a projected increase in of private investment in a project would
<br /> flow rates and comply with Clean Water population,the project must also be be,Treasury has eliminated this
<br /> Act requirements.These requirements sustainable,meaning that the project standard from the meaning of necessary
<br /> are already reflected in the eligibility can continue providing the adequate but nevertheless encourages recipients
<br /> criteria of the DWSRF and CWSRF, minimum level of service for its to apply funds to projects that would
<br /> respectively. estimated useful life,taking into provide the greatest public benefit.
<br /> In evaluating whether a project is a account projected impacts of changes to Water and Sewer Infrastructure:As
<br /> cost-effective means of providing the the climate and other expected demands stated above,Congress provided that
<br /> water or sewer service,the recipient on the source of water. For example, a SURF funds are available for
<br /> should consider the need for the project, reservoir rehabilitation project may not "necessary water, sewer,and broadband
<br /> the costs and benefits of the project be pursued if the reservoir will no infrastructure."Treasury interprets the
<br /> compared to alternatives,and the longer be able to provide an adequate reference to water and sewer uses
<br /> effectiveness of the project in meeting source of drinking water before the end consistent with the inclusion of
<br /> the identified need.Recipients are not of the estimated useful life of the broadband uses. Water,sewer, and
<br /> required to conduct a full cost-benefit improvements to the reservoir. In areas broadband infrastructure all involve the
<br /> analysis;however,they should consider currently impacted by drought or where provision of essential services to
<br /> and analyze relevant factors. For drought conditions are expected to be residents,businesses, and other
<br /> example,a recipient may not use funds more frequent or more severe in the consumers. As the pandemic has made
<br /> to pursue a costly dam rehabilitation to future,sources of drinking water may be clear,access to broadband has itself
<br /> provide drinking water to a community diminished more quickly than in prior become essential for individuals and
<br /> if it could provide the same service with periods. In considering how much of a businesses to participate in education,
<br /> a significantly smaller investment by source of water will be available in the commerce,work,and civic matters and
<br /> drawing water from another available future for the drinking water project, a to receive health care and social
<br /> reservoir, assuming that doing so would recipient must consider that a source of services.
<br /> meet the other requirements of the final water may be drawn upon or otherwise Water and sewer services provided
<br /> rule.As detailed further below, used for other current and expected broadly to the public as essential
<br /> recipients are only required to assess uses,including use by fish and other services include the provision of
<br /> cost-effectiveness of projects for the wildlife. drinking water and the removal,
<br /> creation of new drinking water systems, The final rule applies this management, and treatment of
<br /> dam and reservoir rehabilitation sustainability condition to projects that wastewater and stormwater.305
<br /> projects, or projects for the extension of expand drinking water service Although governments are engaged in
<br /> drinking water service to meet infrastructure to satisfy a projected other infrastructure related to water,
<br /> population growth needs. increase in population but not to other including irrigation projects,
<br /> Certain DWSRF eligibilities are drinking water projects.When a new transportation projects,and recreation
<br /> already subject to a cost-effectiveness source of water is required to remedy an projects, such projects go beyond the
<br /> test. Specifically,projects that create existing threat to public health,as in the scope of what is provided to all
<br /> new drinking water systems must be a case of source projects eligible under the residents as an essential service.
<br /> cost-effective solution to addressing the DWSRF, sustainability should be a Provision of drinking water and
<br /> identified problem.303 The EPA also consideration,but in some cases,the removal,management,and treatment of
<br /> imposes acost-effectiveness condition need to replace a contaminated source
<br /> on dam and reservoir rehabilitation may mean that a less sustainable choice 305In many jurisdictions,stormwater flows into
<br /> projects undertaken pursuant to its class the sewer system rather than into a separate
<br /> stormwater system.The separate inclusion of
<br /> deviation from the DWSRF rule. These 304In such cases,either the projects are "water"and"sewer"infrastructure also makes
<br /> projects are particularly expensive and, presumptively cost-effective(e.g.,lead projects clear that"water"in this context cannot refer to all
<br /> unlike in the case of other types of would always be considered cost-effective given the uses relevant to water.Given that sewer systems
<br /> eligible projects,there are often costs imposed by lead poisoning)or a cost- carry wastewater(and often stormwater),if water
<br /> effectiveness test is less relevant given the lack of infrastructure were to refer to all water-related
<br /> available alternatives or the relatively low cost of infrastructure in this context,it would make the
<br /> 303 See 40 CFR 35.3520(b)(2)(vi). the project. inclusion of sewer infrastructure redundant.
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