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in rehabilitation to address deterioration of dams and the diminished capacity of reservoirs. <br />Further, Treasury expects that in many cases it would be considerably more difficult to <br />demonstrate that construction of a new dam or reservoir would be necessary for the purpose of <br />the provision of drinking water than is the case for rehabilitation of dams and reservoirs already <br />serving that purpose for a particular population, particularly given opportunities to meet drinking <br />water needs through water reuse and conversation efforts. For these reasons, and given that the <br />relatively short period of availability of the funds makes new dam and reservoir construction <br />with these funds less likely, Treasury has limited the scope of the final rule to dam and reservoir <br />rehabilitation projects. <br />As discussed above, Treasury has determined that ARPA does not authorize the use of <br />SLFRF funds for uses other than the provision of drinking water and the management of <br />wastewater and storm water. As such, the final rule does not include infrastructure projects <br />related to dams and reservoirs as eligible uses of SLFRF funds unless they meet the conditions <br />discussed above. <br />Public Comment: Several commenters requested that the removal of dams and associated <br />habitat restoration should be eligible uses of SLFRF funds, noting that in some cases, dam <br />removal will improve water quality while removing long-term operational expenses for the <br />recipient. <br />Treasury Response: Dam removal projects and associated stream and habitat restoration <br />projects are eligible uses of the CWSRF and continue to be eligible under the final rule when the <br />removal implements either a nonpoint source management program plan or a National Estuary <br />Program Comprehensive Conservation and Management Plan or when the removal will provide <br />288 <br />