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4416 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations
<br /> Public Comment:Several commenters available alternatives. For this eligible Sewer Infrastructure" above for more
<br /> requested that the removal of dams and use category,expansion of drinking information.
<br /> associated habitat restoration should be water service infrastructure,the project Non-Federal Matching Requirements for
<br /> eligible uses of SURF funds,noting that must also be projected to be sustainable Authorized Bureau of Reclamation
<br /> in some cases, dam removal will over its estimated useful life. Projects
<br /> improve water quality while removing Investments must be determined to be
<br /> long-term operational expenses for the necessary when they are initiated. The Infrastructure Investment and
<br /> recipient. Accordingly,Treasury is clarifying in Jobs Act amends sections 602(c) and
<br /> Treasury Response:Dam removal the final rule that the need identified for 603(c) of the Social Security Act to add
<br /> projects and associated stream and a water or sewer project may include a an additional eligible use of SURF
<br /> habitat restoration projects are eligible need arising from reasonable funds,providing that SURF funds
<br /> uses of the CWSRF and continue to be expectations of future population "may be used for purposes of satisfying
<br /> eligible under the final rule when the growth,provided that it is necessary at any non-Federal matching requirement
<br /> removal implements either a nonpoint the time the investment is initiated for required for[an authorized Bureau of
<br /> source management program plan or a the recipient to make the investment to Reclamation project]."326
<br /> National Estuary Program meet this growth. For example,a This amendment permits the use of
<br /> Comprehensive Conservation and recipient expecting increased SURF funds to meet non-federal
<br /> Management Plan or when the removal population during the period of matching requirements of any
<br /> will provide a water quality benefit. performance may install a drinking authorized Bureau of Reclamation
<br /> Habitat restoration projects more water treatment plant to meet that project,regardless of whether the
<br /> generally may also be eligible under the growth.In addition,a recipient underlying project would be an eligible
<br /> CWSRF and the final rule if they expecting increased population growth use of SURF funds under the water and
<br /> constitute a form of stormwater outside the period of performance may sewer infrastructure eligible use
<br /> infrastructure. install the treatment plant if the category. These amendments are
<br /> Expansion of Drinking Water Service planning and construction timeline for effective as of March 11, 2021,as if
<br /> Infrastructure the project would require work to begin included in the ARPA at the time of its
<br /> during the performance period in order enactment.327 Treasury will provide
<br /> Public Comment:Commenters asked further guidance to recipients on the
<br /> for the ability to use funds for drinking to meet the expected population growth. scope of Bureau of Reclamation water
<br /> water projects for the purpose of A recipient may install transmission p
<br /> p p p lines as part of the development of new projects and expenses covered by this
<br /> meeting needs arising from future growth,which,given the restrictions housing occurring during the period of provision.
<br /> applicable to the DWSRF,was not performance. In this case,the housing Floodplain Management and Flood
<br /> permitted under the interim final rule. development must be in progress; a Mitigation Projects
<br /> Treasury Response:As provided for in recipient may not use the SURF funds public Comment:Several commenters
<br /> the SDWA,the DWSRF is meant to to install a water main, for example,to requested that projects to address
<br /> serve the public health needs of the an undeveloped tract in the expectation floodwater,including floodplain
<br /> existing population.The EPA regulation that in the future that tract will be management and flood mitigation
<br /> implementing the DWSRF program developed with housing,because there projects,be included as an eligible use
<br /> provides that projects needed primarily would be no need for that investment to of SURF funds.Within this category of
<br /> to serve future population growth are be made at the time it is initiated. floodplain management and flood
<br /> not eligible uses of the DWSRF. A For the reasons discussed above,if a mitigation infrastructure, several
<br /> project that is intended primarily to project is undertaken to address commenters requested that the
<br /> address public health or regulatory expected growth in population,the installation of levees,flood walls,sea
<br /> compliance issues for the existing project must also be sustainable, walls, elevation projects, dredging, or
<br /> service population may be sized for a meaning that the project can continue nature-based flood mitigation projects
<br /> "reasonable" amount of population providing the adequate minimum level be included as eligible projects.
<br /> growth over the useful life of the of service for its estimated useful life, Treasury Response:Treasury notes
<br /> project.325 taking into account projected impacts of that some floodplain management and
<br /> ARPA does not include the same changes to the climate and other flood mitigation infrastructure projects,
<br /> limitation as the SDWA.Accordingly, expected demands on the source of including green infrastructure designed
<br /> the final rule provides that recipients water.In considering how much of a to protect treatment works from flood
<br /> may use SURF funds for projects that source of water will be available in the waters and flood impact are currently
<br /> are needed to support increased future for the drinking water project,a eligible under the CWSRF and therefore
<br /> population in certain cases.ARPA recipient must consider that a source of continue to be eligible under the final
<br /> limits projects to those investments that water may be drawn upon or otherwise rule.
<br /> are"necessary."As discussed above, used for other current and expected Treasury has not included floodplain
<br /> Treasury interprets this to mean that the uses,including use by fish and other management and flood mitigation
<br /> investments must be (1)responsive to wildlife. A drinking water project that is projects more generally as eligible under
<br /> an identified need to achieve or designed to address a growing the final rule.Although floodplain
<br /> maintain an adequate minimum level of population cannot be considered a management and flood mitigation are
<br /> service,which for some eligible project necessary investment if the source of functions of many state and local
<br /> categories may include a reasonable drinking water will cease to be available governments,they are not the sort of
<br /> projection of increased need,whether to meet the populations needs before generally-provided essential services
<br /> due to population growth or otherwise the end of the estimated useful life of included within the meaning of water
<br /> and (2)a cost-effective means for the project.In such a case,a recipient
<br /> meeting that need,taking into account should consider alternative sources for 326 See Public Law 117-58,40909(a)—(b)(Nov.15,
<br /> drinking water. See Interpretation of 2021).
<br /> 325 See 40 CFR 35.3520(e)(5). Necessary Investments and Water and 327 See Public Law 117-58§40909(c).
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