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4444 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations
<br /> such,projects meeting a lower threshold two payments separated by at least individuals and communities with the
<br /> could not be considered"necessary" twelve months,and the interim final greatest need.
<br /> investments in broadband rule provided for split payments to a Analysis of Costs
<br /> infrastructure, so Treasury has retained majority of states as well.As discussed
<br /> the threshold from the interim final above,splitting payments ensures that This regulatory action will generate
<br /> rule. recipients can adapt spending plans to administrative costs relative to a pre-
<br /> Further,the final rule adds a evolving economic conditions and that statutory baseline. This includes,
<br /> requirement that recipients address the at least some of the economic benefits chiefly, costs required to administer
<br /> affordability needs of low-income will be realized in 2022 or later. SURF funds, oversee subrecipients and
<br /> consumers in accessing broadband However,consistent with authorities beneficiaries, and file periodic reports
<br /> networks funded by SURF,either by granted to Treasury in the statute, with Treasury.It also requires states to
<br /> requiring service providers that provide Treasury recognizes that a subset of allocate SURF funds to nonentitlement
<br /> service to households to either states with significant remaining units,which are smaller units of local
<br /> participate in the FCC's Affordable elevation in the unemployment rate government that are statutorily required
<br /> Connectivity Program(ACP), or a broad- could face heightened additional near to receive their funds through states.
<br /> based affordability program with term needs to aid unemployed workers Treasury expects that the administrative
<br /> commensurate benefits.Treasury and stimulate the recovery. Therefore, burden associated with this program
<br /> believes that this requirement will for a subset of state governments, will be moderate for a grant program of
<br /> increase the number of customers that Treasury has provided funds in one its size. Treasury expects that many
<br /> are able to take advantage of broadband payment. Treasury believes that this recipients receive direct or indirect
<br /> infrastructure funded by SURF, approach strikes an appropriate balance funding from federal government
<br /> increasing the effectiveness of funds in between the general reasons to provide programs and that many have
<br /> connecting households and businesses funds in two payments and the familiarity with how to administer and
<br /> to high-speed internet that is critical to heightened additional near-term needs report on federal funds or grant funding
<br /> work,health, and education.There is a in specific states.As discussed above, provided by other entities. In particular,
<br /> potential that this requirement may Treasury set a threshold based on states,territories, and large localities
<br /> marginally increase project costs for historical analysis of unemployment will have received funds from the
<br /> recipients and providers,but this rates in recessions. Coronavirus Relief Fund (CRF) and
<br /> impact is uncertain,given the varying Reaching Underserved Communities Treasury expects them to rely heavily
<br /> business models and pricing structures on established processes developed
<br /> of broadband projects and providers. Finally,the final rule aims to promote
<br /> and streamline the provision of through that program or other prior
<br /> Labor Standards assistance to individuals and grant funding,mitigating burden on
<br /> In this Supplementary Information for communities in greatest need, these governments. Treasury has
<br /> the final rule,Treasury encourages particularly communities that have been enhanced the level of recipient
<br /> recipients to ensure that capital historically underserved and have reporting as compared to the CRF,
<br /> expenditures to respond to the public experienced disproportionate impacts of incorporating feedback from the
<br /> health and negative economic impacts the COVID-19 crisis.Targeting relief is Government Accountability Office and
<br /> of the pandemic and water, sewer,and in line with Executive Order 13985, others that additions would improve the
<br /> broadband projects use strong labor "Advancing Racial Equity and Support oversight of recipients'use of funds. To
<br /> standards,including,for example, for Underserved Communities Through balance the oversight benefits with the
<br /> project labor agreements and the Federal Government,"which laid costs of added reporting burdens,
<br /> community benefits agreements that out an Administration-wide priority to Treasury has incorporated other
<br /> offer wages at or above the prevailing support"equity for all,including people mechanisms to mitigate burden.For
<br /> rate and include local hire provisions. of color and others who have been example,Treasury is"tiering"reporting
<br /> Treasury believes that its historically underserved,marginalized, requirements so that recipients that
<br /> encouragement of labor standards and adversely affected by persistent receive relatively lesser amounts of
<br /> carries benefits because it will ensure poverty and inequality."To this end, SURF funds are required to submit less
<br /> that workers have access to strong the final rule enumerates a list of frequent reports than recipients
<br /> employment opportunities associated services that may be provided using receiving greater amounts of funds.
<br /> with infrastructure projects,which will SURF funds in disproportionately Treasury is noting administrative costs
<br /> in turn aid the economic recovery. impacted communities,including low- as a generally allowable use of SURF
<br /> Treasury believes that infrastructure income areas,to address the more funds,which defrays administrative
<br /> projects may also benefit from stronger severe impacts of the pandemic in these expenses to recipients that may be
<br /> labor standards due to the potential of communities;establishes the needed to comply with reporting
<br /> these standards to ensure a stronger characteristics of essential workers requirements. Treasury has also
<br /> skilled labor supply and minimize labor eligible for premium pay and provided options for recipients to use
<br /> disputes and workplace injuries,which encouragement to serve workers based eligibility thresholds they are already
<br /> can result in costly disruptions to on financial need;provides that familiar with during administration of
<br /> projects. Treasury assesses that these recipients may use SURF funds to SURF funds,which will enable
<br /> benefits will increase the economy and restore state and local workforces, recipients to avoid the costs of setting
<br /> efficiency of infrastructure projects where women and people of color are up new programs and reporting
<br /> undertaken through SURF and will disproportionately represented; and mechanisms to meet reporting and
<br /> outweigh the potential for a marginal requires that broadband infrastructure compliance requirements.For example,
<br /> increase in labor costs. projects participate in programs to Treasury has permitted recipients to use
<br /> support affordability of broadband "categorical eligibility"when delivering
<br /> Splitting Payments to Recipients service. Collectively,these provisions assistance to particular groups, such as
<br /> Treasury is required by statute to will promote use of resources to impacted or disproportionately
<br /> deliver funds to local governments in facilitate the provision of assistance to impacted households.
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