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Since publication of the interim final rule, Treasury has provided recipients with additional <br />guidance and instructions on the reporting requirements.302 <br />Environmental and Other Generally Applicable Requirements <br />Treasury cautions that, as is the case with all projects engaged in using the SLFRF funds, <br />all projects must comply with applicable federal, state, and local law. In the case of infrastructure <br />projects in particular, this includes environmental and permitting laws and regulations. Likewise, <br />as with all capital expenditure projects using SLFRF funds, projects must be undertaken and <br />completed in a manner that is technically sound, meaning that they must meet design and <br />construction methods and use materials that are approved, codified, recognized, fall under <br />standard or acceptable levels of practice, or otherwise are determined to be generally acceptable <br />by the design and construction industry. <br />1. WATER AND SEWER INFRASTRUCTURE <br />Sections 602(c)(1)(D) and Section 603(c)(1)(D) of the Social Security Act provide that <br />recipients may use the SLFRF funds "to make necessary investments in water [and] sewer... <br />infrastructure." The interim final rule permitted a broad range of necessary investments in <br />projects that improve access to clean drinking water and improve wastewater and stormwater <br />infrastructure systems. As discussed below, after review of comments received on the interim <br />final rule, Treasury has made changes in the final rule to expand the scope of eligible water and <br />sewer projects. <br />302 See U.S. Department of the Treasury, Compliance and Reporting Guidance, 21 (June 24, 2021), <br />https://home.treasury.gov/system/files/ 13 6/SLFRF-Compliance-and-Reporting-Guidance.pdf. <br />264 <br />