Agenda - Council Work Session - 03/08/2022

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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4443 resources to determine how unique projects,particularly given the broad Treasury considered multiple variations in revenue interact with the range of projects eligible under the alternatives when selecting this revenue loss formula. CWSRF and DWSRF. The approach also standard. The threshold for the interim Premium Pay ensured that projects would conform to final rule allowed benefits to accrue in vetted project types from a widely used a more targeted manner to the Per the ARPA statute,recipients have program. Treasury received comments approximately 9 percent of the country broad latitude to designate critical from recipients requesting additional with access to speeds under the 25/3 infrastructure sectors and make grants to project categories to be considered Mbps threshold.394 However,since third-party employers for the purpose of eligible,indicating a potential cost to SURF funds are distributed to tens of providing premium pay. While the final maintaining alignment with the CWSRF thousands of governments across the rule provides significant flexibility to and DWSRF. country with a variety of broadband implement the statutory requirement For the final rule,Treasury has needs,Treasury believes that allowing that premium pay respond to essential expanded eligibility to include several recipients greater flexibility to workers,it requires recipients give additional project types beyond those determine locations to serve in their written justification in the case that covered by the CWSRF and DWSRF. jurisdictions—including considering premium pay would increase a worker's Treasury believes that expanded affordability and competition barriers— annual pay above a certain threshold or eligibility will benefit recipients by will lead to greater long-term public is awarded to an individual whose allowing them additional flexibility to benefit. Further,given that many federal annual pay is already above that pursue beneficial projects, including broadband grant programs are focused threshold. To set this threshold, project categories that support the solely on unserved and underserved Treasury analyzed data from the Bureau provision of drinking water and the areas,Treasury believes that the final of Labor Statistics to determine a level removal,management,and treatment of rule's flexibility enables these funds to that would not require further wastewater and stormwater:Additional fill an important role in the overall justification for premium pay to the vast stormwater management projects, federal broadband landscape. majority of essential workers,while private well infrastructure, additional In the final rule,Treasury also requiring higher scrutiny for provision projects that address lead in water,and requires that broadband projects must of premium pay to higher earners who, certain dam and reservoir rehabilitation meet a standard of reliably delivering at even without premium pay,would projects undertaken to address the least 100 Mbps download speeds and likely have greater personal financial provision of drinking water. A potential upload speeds, or in cases where it is resources to cope with the effects of the cost of this approach is that uses beyond not practicable to do so,reliably pandemic.Alternatively, a recipient the CWWRF and DWSRF may have less delivering at least 100 Mbps download need not submit written justification to public guidance available to understand speed and between at least 20 Mbps and Treasury if the worker receiving project eligibilities. However,Treasury 100 Mbps upload speed while being premium pay is eligible for overtime anticipates that this eligibility scalable to 100 Mbps upload and under the FLSA. Treasury believes this expansion will provide a net benefit to download speeds.Treasury expects that alternative,which is an addition to the recipients by allowing them to pursue this threshold will yield long-term final rule,will give recipients more projects relevant to their goals that were benefits and allow networks to meet flexibility and will simplify application ineligible under the interim final rule. both pandemic-related and future needs. of the final rule as employers,public The expansion to allow private well The Federal Communications and private, are already legally required infrastructure may also affect the Commission(FCC) estimates that to determine whether an employee is distributional impact of SLFRF. Private currently a household with two to three eligible for overtime pay under the wells disproportionately serve rural remote learners using the internet FLSA. Treasury believes the threshold Americans,including low-income simultaneously needs a connection and overtime eligibility provision in the households,and expanding eligibility to supporting 100 Mbps download final rule strike the appropriate balance between preserving flexibility and include this use may allow SURF funds speeds.395 While a lower threshold may helping encourage use of these to benefit such households. While have resulted in lower near-term costs resources to help those in greatest need. distributional impacts are uncertain, to build, it would have potentially Treasury believes that the potential for constrained future utility from the The final rule also requires that workers eligible for premium pay have regular benefits to accrue to rural and low- infrastructure by producing in-person interactions or regular income households makes it important infrastructure that would more to clarify that these types of projects are quickly—potentially in the near-term— physical handling of items that were eligible. become obsolete and no longer meet also handled by others. This household needs,potentially requiring requirement will help encourage use of Broadband Infrastructure sooner replacement and generally endured the heightened risk of financial resources for those who have In the final rule,Treasury expands decreasing the return on investment. As eligible areas for broadband investment performing essential work. by requiring that recipients invest in served by a wireline connection that reliably Water and Sewer Infrastructure projects designed to provide service to delivers at least 100 Mbps of download speed and households and businesses with an 20 Mbps of upload speed. In the interim final rule,Treasury identified need for additional 394 Data from the Federal Communications aligned eligible uses of funds for water Commission shows that as of June 2020,9.07 broadband investment,including percent of the U.S.population had no available and sewer infrastructure to those increasing access to high-speed cable or fiber broadband providers providing greater projects eligible to receive financial broadband,increasing the affordability than 25 Mbps download speeds and 3 Mbps upload assistance through the DWSRF and of broadband services, and improving speeds.Federal Communications Commission, Fixed Broadband Deployment,htt s// CWSRF administered by the EPA. the reliabilityof broadband service.393p The benefits of this approach broadbandinap.fcc.gov/#/(last visited May 9,2021). included giving recipients an existing 395 See Federal Communications Commission, list that would provide them clarity as 393 Further,the final rule encourages,but does not Broadband Speed Guide,available at https:// require,that recipients pursue broadband www.fcc.gov/consumers/guides/broadband-speed- well as flexibility in identifying eligible infrastructure projects in locations not currently guide(last visited October 28,2021).