Agenda - Council Work Session - 03/08/2022

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4452 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations (b)(1) of such regulation to address identified need,as determined by the (b) Violation.Treasury will consider a present or prevent future violations of recipient,for such infrastructure; State or Territory to have used funds to health-based drinking water standards, (B)The broadband infrastructure is offset a reduction in net tax revenue if, if the following conditions are met: designed to,upon completion: during a reporting year: (A)The project is needed to support (1)Reliably meet or exceed (1) Covered change.The State or increased population,with need symmetrical 100 Mbps download speed Territory has made a covered change assessed as of the time the project is and upload speeds;or that, either based on a reasonable undertaken; (2)In cases where it is not practicable, statistical methodology to isolate the (B) The project is designed to support because of the excessive cost of the impact of the covered change in actual no more than a reasonable level of project or geography or topography of revenue or based on projections that use projected increased need,whether due the area to be served by the project,to reasonable assumptions and do not to population growth or otherwise; provide service reliably meeting or incorporate the effects of (C) The project is a cost-effective exceeding symmetrical 100 Mbps macroeconomic growth to reduce or means for achieving the desired level of download speed and upload speeds: increase the projected impact of the service; and (i)Reliably meet or exceed 100 Mbps covered change,the State or Territory (D)The project is projected to download speed and between at least 20 assesses has had or predicts to have the continue to provide an adequate level of Mbps and 100 Mbps upload speed; and effect of reducing tax revenue relative to drinking water over its estimated useful (ii)Be scalable to a minimum of 100 current law; life. Mbps download speed and 100 Mbps (2)Exceeds the de minimis threshold. (vi)Dams and reservoirs. upload speed; and The aggregate amount of the measured Rehabilitation of dams and reservoirs if (C)The service provider for a or predicted reductions in tax revenue the following conditions are met: completed broadband infrastructure caused by covered changes identified (A)The project meets the investment project that provides service under paragraph(b)(1) of this section,in requirements of 40 CFR 35.3520 other to households is required, for as long as the aggregate,exceeds 1 percent of the than the following requirements: the SLFRF-funded broadband State's or Territory's baseline; (1)The prohibition on the infrastructure is in use,by the recipient (3)Reduction in net tax revenue. The rehabilitation of dams and reservoirs in to: State or Territory reports a reduction in 40 CFR 35.3520(e)(1)and (3); and (1)Participate in the Federal net tax revenue,measured as the (2)The requirement in 40 CFR Communications Commission's difference between actual tax revenue 35.3520(b)(1)that the project is needed Affordable Connectivity Program(ACP) and the State's or Territory's baseline, to address present or prevent future through the lifetime of the ACP; or each measured as of the end of the violations of health-based drinking (2) Otherwise provide access to a reporting year;and water standards,provided that if the broad-based affordability program to (4) Consideration of other changes. dam or reservoir project does not meet low-income consumers in the proposed The aggregate amount of measured or this requirement,the project must be service area of the broadband predicted reductions in tax revenue needed to support increased population, infrastructure that provides benefits to caused by covered changes is greater with need assessed as of the time the households commensurate with those than the sum of the following,in each project is undertaken, and the project provided under the ACP through the case,as calculated for the reporting must be projected to continue to provide lifetime of the ACP. year: an adequate level of drinking water over (ii) Cybersecurity infrastructure (i) The aggregate amount of the its estimated useful life; investments. Cybersecurity expected increases in tax revenue (B) The primary purpose of the dam infrastructure investments that are caused by one or more covered changes or reservoir is for drinking water supply; designed to improve the reliability and that, either based on a reasonable (C) The project is needed for the resiliency of new and existing statistical methodology to isolate the provision of drinking water supply, broadband infrastructure. Such impact of the covered change in actual with need assessed as of the time the investments may include the addition or revenue or based on projections that use project is initiated; modernization of network security reasonable assumptions and do not (D)The project is designed to support hardware and software tools designed to incorporate the effects of no more than a reasonable level of strengthen cybersecurity for the end- macroeconomic growth to reduce or projected increased need,whether due users of these networks. increase the projected impact of the to population growth or otherwise;and (f)Meeting the non-federal matching covered change,the State or Territory (E) The project is a cost-effective requirements for Bureau of Reclamation assesses has had or predicts to have the means for achieving the desired level of projects.A recipient may use funds to effect of increasing tax revenue; and service. meet the non-federal matching (ii)Reductions in spending,up to the (vii)Private wells.Rehabilitation of requirements of any authorized Bureau amount of the State's or Territory's net private wells,testing initiatives to of Reclamation project. reduction in total spending,that are in: identify contaminants in private wells, (A)Departments,agencies, or and treatment activities and remediation §35.7 Pensions. authorities in which the State or projects that address contamination in A recipient(other than a Tribal Territory is not using funds; and private wells,if the project meets the government)may not use funds for (B)Departments,agencies,or requirements of 40 CFR 35.3520 other deposit into any pension fund. authorities in which the State or than the limitation to certain eligible Territory is using funds,in an amount systems under 40 CFR 35.3520(a). §35.8 Tax. equal to the value of the spending cuts (2)Broadband investments—(i) (a)Restriction.A State or Territory in those departments, agencies, or General.Broadband infrastructure if the shall not use funds to either directly or authorities,minus funds used. following conditions are met: indirectly offset a reduction in the net (c)Amount and revenue reduction (A)The broadband infrastructure is tax revenue of the State or Territory cap.If a State or Territory is considered designed to provide service to resulting from a covered change during to be in violation pursuant to paragraph households and businesses with an the covered period. (b) of this section,the amount used in