Grants Development and Administration Services

1 Town of Oyster Bay Department of Intergovernmental Affairs Nassau County, New York ------------------------------------------------------------------------------------------------------------------- REQUEST FOR PROPOSALS FOR GRANTS DEVELOPMENT/ADMINISTRATION SERVICES --------------------------------------------------------------------------------------------------------------------- ISSUANCE DATE: January 28, 2022 THIS RESPONSE IS DUE BY: February 18, 2022 by 3:30 PM RESPONSE REQUIREMENTS: EMAIL TO FSAMMARTANO@OYSTERBAY-NY.GOV --------------------------------------------------------------------------------------------------------------------- 2 REQUEST FOR PROPOSALS TABLE OF CONTENTS Page Authorized Contact Person.............................. 3 Introduction.......................................... 3 Form of Proposal..................................... .. 3 Qualification Based Selection Process................... 4

Criteria for Evaluation.............................. 4 Use of Sub-consultants, Certified Outside Laboratories and Other Subordinate Entities........................ 4-5 Ethics and Disclosure 5 Familiarization with Current Programs, Facilities and Documents.................................................... 5 Payments and Claims.................................... 5 Consultant Evaluation and Selection .. 5 Scope of Services..................................... 6 ATTACHMENT A: Format of Proposal 7 APPENDIX A: U.S. Department of Treasury: Coronavirus State and Local Fiscal Recovery Funds Award Terms and Conditions APPENDIX B: U.S. Department of Treasury: Coronavirus State and Local Fiscal Recovery Funds Frequently Asked Questions (January, 2022) 3 AUTHORIZED CONTACT PERSON: Prospective firms are advised that the authorized Town of Oyster Bay contact person for all matters concerning this RFP is: Frank V. Sammartano, Commissioner Town of Oyster Bay Dept. of Intergovernmental Affairs 977 Hicksville Road Massapequa, New York 11758 FSammartano@oysterbay-ny.gov INTRODUCTION: On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by the President. Section 9901 of ARPA amended Title VI of the Social Security Act (the Act) to add section 602, which establishes the Coronavirus State Fiscal Recovery Fund, and section 603, which establishes the Coronavirus Local Fiscal Recovery Fund (together, the Fiscal Recovery Funds). The Fiscal Recovery Funds are intended to provide support to state, local, and tribal governments in responding to the impact of COVID19 and in their efforts to contain COVID 19 on their communities, residents, and businesses. Fiscal Recovery Funding may be applied to programs to address the negative economic impacts resulting from the Covid-19 Pandemic. The Town of Oyster Bay (Town) seeks a contractor(s) to oversee the development and administration of a grant program(s) for small businesses, non-profit organizations, and other eligible entities, within the Town of Oyster Bay, with use of Fiscal Recovery Funding. In accordance with the Towns qualification-based consultant procurement policy, The Town, through its Department of Intergovernmental Affairs, is seeking proposals from qualified Contractor(s) for Grant Program Development and Administration Services as a part of the federal American Rescue Plan of 2021. The Town anticipates that services will be required: From: MARCH 2022 Through: DECEMBER 2024 (or exhaustion of available funds) (hereinafter referred to as "the contract period"). The scope of the anticipated services is more fully described below under the paragraph entitled "Scope of Services". CONTRACT VALUE: The Town currently estimates that the total value of the project, inclusive of grant funding to be awarded and the selected Contractor(s) administration fees is: $4,950,000 FORM OF PROPOSAL: Any provider wishing to be considered under this RFP must submit its proposal with any additional relevant information via email. Proposals should be organized as described in Appendix A. RESPONSE IS DUE BY FEBRUARY 18, 2022 AT 3:30 p.m. EDT. Responses sent by fax or postal service will not be considered. QUALIFICATION BASED SELECTION PROCESS: The Town, after receipt and review of responses to this RFP, reserves the right to reject proposals based upon the information provided by the firm in their proposals and based upon subsequent negotiations between the Town and the firm. The review process of the RFPs submitted is based on the qualifications of the firm for the nature of that project. The Town also reserves the right to subdivide individual items and award one or more portions to one firm and other portions to one or more other firms. mailto:FSammartano@oysterbay-ny.gov 4 CRITERIA FOR EVALUATION: The following elements will be considered by the Town in evaluating proposals made under this RFP: - The magnitude, scope and complexity of the services to be rendered - The experience of the firm in assignments of similar size, scope and complexity - Special knowledge relevant to the project - Special equipment or facilities relevant to the project - The firms ability to provide sufficient manpower to advance the project, the need to utilize sub- consultants to supplement the firms staffing - The firm's knowledge and experience with Town facility(ies) and programs involved in the assignment - The firm's past performance with the Town - Time constraints and deliverability service - The firms current workload, current workload remaining, workload remaining from prior years and total workload remaining with the Town, and - The firms commitment and ability to comply with the regulatory requirements of the U.S. Department of Treasury, the Town and any other regulatory agency as applicable. The specific Scoring Criterial to be utilized shall be the following: A. Size, staffing, resources & financial capability relative to the size of the assignment 10 PTS B. Experience of firm in assignments of similar size, scope and complexity 30 PTS C. Overall approach and understanding of the project, strategy to advance the project 30 PTS D. Proposed technical staffing 10 PTS E. Commitment/ability to comply with the regulatory requirements 20 PTS TOTAL POTENTIAL SCORE: 100 PTS It is further expressly acknowledged that the quality of the services to be rendered is of paramount importance to the Town. However, it is further expressly acknowledged that the cost of the services to be rendered is a substantial concern. USE OF SUBCONSULTANTS AND OTHER SUBORDINATE ENTITIES: Prospective firms are advised that the Town will entertain proposals that include the use of sub-consultants and/or other subordinate entities. In such event, the proposal must clearly state the extent and nature of the work proposed 5 to be delegated to the sub-consultant and/or other entity. Further, if the proposed sub-consultant is an architectural, engineering or surveying firm, the proposal must also be accompanied by a completed and current Federal Form SF 330 if such form is not already on file with the Town. ETHICS AND DISCLOSURE: Pursuant to Town policy, proposers will be required to complete a disclosure questionnaire. That disclosure will be processed through the Towns online vendor monitoring system, Exiger. The questionnaire will be forwarded by e-mail to the principal whose name is provided on the firms response. Any firm that does not complete and return the electronic questionnaire will not be considered for an award under this RFP. FAMILIARIZATION WITH CURRENT PROGRAMS, FACILITIES AND DOCUMENTS: It is the sole responsibility of the prospective firms to familiarize themselves with the Town's current programs, facilities, documents and any other information which is necessary and relevant to the scope of this RFP, inclusive of the rules and regulations as set forth per The U.S. Department of Treasury, Coronavirus State and Local Fiscal Recovery Funds-Final Rule. The Final Rule may be viewed at: https://home.treasury.gov/system/files/136/SLFRF-Final-Rule.pdf Upon sufficient and reasonable advance notice to the contact person named above, arrangements may be made to visit and inspect any involved Town facilities and/or to view applicable documents. Any and all costs borne by the prospective proposer in familiarizing themselves with the above are to be borne solely by the prospective proposer. In the event that the prospective proposer is ultimately awarded a contract pursuant to this RFP, the Town will not allow any claims for payment which include billable time for such familiarization costs, regardless of whether they were incurred prior to or following the submission of the proposer's proposal. PAYMENTS AND CLAIMS: Payments to the successful proposer will be made in accordance with the terms agreed to between the Town and the successful proposer, and must be submitted with a Town of Oyster Bay claim form. * Note: The Town makes no representation of the actual value of the work. Further, as part of the award process, a maximum dollar amount may be determined and may be incorporated into the agreement that is awarded pursuant to this Request for Proposals. The Town further states that it also makes no representation that actual services required will be for the full maximum dollar amount incorporated into the agreement. CONSULTANT EVALUATION AND SELECTION: Proposals received prior to the deadline for submission will be evaluated by the Towns selection committee based upon their technical merit. The committee will establish a ranking of all proposals received and develop a short list of the firms deemed best qualified to perform the work. If necessary to supplement the review of the proposals, firms on the short list will be contacted for a proposal interview. If a satisfactory agreement cannot be negotiated with such firm at a fee determined by the Town to be fair and reasonable, then negotiations with such firm will be terminated and negotiations undertaken with the second highest ranked firm. Should an agreement not be reached with the second highest ranked firm, negotiations will likewise terminate and negotiations will then be undertaken with the third highest ranked firm. If acceptable terms cannot be reached with the third highest ranked firm, the selection process will be terminated and the project will be re-evaluated by the Town. 6 SCOPE OF SERVICES: Fiscal Recovery Funding may be applied to programs to address the negative economic impacts resulting from the Covid-19 Pandemic. The Town seeks to develop a grant program(s) for small businesses, non-profit organizations, and other eligible entities, within the Town of Oyster Bay, with use of Fiscal Recovery Funding. Assistance to small businesses, non-profit organizations and other eligible entities may include, but is not limited to: Grants to mitigate financial hardship such as declines in revenues or impacts of periods of business closure, for example by supporting payroll and benefits costs, costs to retain employees, mortgage, rent, or utilities costs, and other operating costs; Grants to implement COVID-19 prevention or mitigation tactics, such as physical plant changes to enable social distancing, enhanced cleaning efforts, barriers or partitions, or COVID-19 vaccination, testing, or contact tracing programs; and Grants to provide for technical assistance, counseling, or other services to assist with business planning needs The Town seeks a Contractor(s) to develop and administer this grant program(s). Requested services include, but are not limited to, the following: Coordination with the Town on program/policy development; Development of application process and associated forms; In-take and processing of applications; Determining eligibility of applications; Notification to applicants of approvals and denials; Resolution of appeals from those whose applications were denied; Disbursement of payments to eligible recipients; Case management services; Preparation of all reports required by U.S. Department of Treasury and other regulatory agencies as applicable; Continuous review and monitoring of additional or revised regulatory guidance provided by the U.S. Department of Treasury and other regulatory agencies as applicable; and Provision of extensive outreach/marketing services to connect eligible applicants with the program. 7 ATTACHMENT A FORMAT OF PROPOSAL Proposals should be organized as shown below and should include all the information indicated. Note that elaborate brochures or other presentations beyond those sufficient to present a complete and extensive response to this solicitation are not desired. SECTION A. INTRODUCTORY STATEMENT SECTION B. QUALIFICATIONS AND APPROPRIATENESS OF PROPOSED STAFF 1. Project team. 2. Provide names and resumes of key personnel proposed for this project. SECTION C. APPROPRIATENESS AND QUALITY OF PROPOSER'S EXPERIENCE 1. Please include experience on projects within Long Island including projects with the Town of Oyster Bay. 2. Minimum of five (5) references with contract information (recent, similar projects preferred). SECTION D. PRICE PROPOSAL Each proposal shall include a price proposal and proposers fees for the required services. SECTION E. PROPOSED METHODOLOGY Based on the project description and scope of services, the firm should discuss how it would approach and manage the project. SECTION F. SUPPLEMENTAL INFORMATION Any additional information relevant to the firm's qualifications for this project may be included at the firm's option APPENDIX A U.S. DEPARTMENT OF TREASURY CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS AWARD TERMS AND CONDITIONS icable Law and Regulations. a. Recipient agrees to comply with the requirements of section 608 of the Act, regulations adopted by Treasury pursuant to section 603(f) of the Act, and guidance issued by Treasury regarding the foregoing. Recipient also agrees to comply with all other applicable federal statutes, regulations, and executive orders, and Recipient shall provide for such compliance by other parties in any agreements it enters into with other parties relating to this award. b. Federal regulations applicable to this award include, without limitation, the following: ii. iii. iv. vil. ix, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200, other than such provisions as Treasury may determine are inapplicable to this Award and subject to such exceptions as may be otherwise provided by Treasury. Subpart F ~ Audit Requirements of the Uniform Guidance, implementing the Single Audit Act, shall apply to this award. Universal Identifier and System for Award Management (SAM), 2 C.F.R. Part 25, pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 26 is hereby incorporated by reference. Reporting Subaward and Executive Compensation Information, 2 C.F.R. Part 170, pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 170 is hereby incorporated by reference. OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower tier covered transactions (contracts and subcontracts described in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R, Part 180 and Treasurys implementing regulation at 31 C.F.R. Part 19, Recipient Integrity and Performance Matters, pursuant to which the award term set forth in 2 C.F.R. Part 200, Appendix XII to Part 200 is hereby incorporated by reference. Governmentwide Requirements for Drug-Free Workplace, 31 C.F.R. Part 20. New Restrictions on Lobbying, 31 C.F.R. Part 21. Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (42 U.S.C. 4601-4655) and implementing regulations. Generally applicable federal environmental laws and regulations. ec. Statutes and regulations prohibiting discrimination applicable to this award include, without limitation, the following: ds Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and Treasury's implementing regulations at 31 C.F.R. Part 22, which prohibit discrimination on the basis of race, color, or national origin under programs or activities receiving federal financial assistance; 10. il 12, 18. 14, ii. The Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.), which prohibits discrimination in housmg on the basis of race, color, religion, national origin, sex, familial status, or disability; iii, Section 504 of the Rehabilitation Act of 1978, as amended (29 U.S.C. 794), which prohibits discrimination on the basis of disability under any program or activity receiving federal financial assistance; iv. The Age Discrimination Act of 1975, as amended (42 U.S.C. 6101 et seq.), and Treasury's implementing regulations at 81 C.F.R. Part 28, which prohibit discrimination on the basis of age in programs or activities receiving federal financial assistance; and v. Title II of the Americans with Disabilities Act of 1990, as amended (42 U.S.C. 12101 et seq.), which prohibits discrimination on the basis of disability under programs, activities, and services provided or made available by state and local governments or instrumentalities or agencies thereto. Remedial Actions. In the event of Recipients noncompliance with section 608 of the Act, other applicable laws, Treasury's implementing regulations, guidance, or any reporting or other program requirements, Treasury may impose additional conditions on the receipt of a subsequent tranche of future award funds, if any, or take other available remedies as set forth in 2 C.F.R. 200.839. In the case of a violation of section 603(c) of the Act regarding the use of funds, previous payments shall be subject to recoupment as provided in section 603(e) of the Act. Hatch Act. Recipient agrees to comply, as applicable, with requirements of the Hatch Act (5 U.S.C. 1501-1508 and 7324-7828), which limit certain political activities of State or local government employees whose principal employment is in connection with an activity financed in whole or in part by this federal assistance. False Statements, Recipient understands that making false statements or claims in connection with this award is a violation of federal law and may result in criminal, civil, or administrative sanctions, including fines, imprisonment, civil damages and penalties, debarment from participating in federal awards or contracts, and/or any other remedy available by law. Publications. Any publications produced with funds from this award must display the following language: This project [is being] [was] supported, in whole or in part, by federal award number [enter project FAIN] awarded to [name of Recipient] by the U.S. Department of the Treasury. Debts Owed the Federal Government. a. Any funds paid to Recipient (1) in excess of the amount to which Recipient is finally determined to be authorized to retain under the terms of this award; (2) that are determined by the Treasury Office of Inspector General to have been misused; or (3) that are determined by Treasury to be subject to a repayment obligation pursuant to section 603(e) of the Act and have not been repaid by Recipient shall constitute a debt to the federal government. b. Any debts determined to be owed the federal government must be paid promptly by 4 Recipient. A debt is delinquent if it has not been paid by the date specified in Treasurys initial written demand for payment, unless other satisfactory arrangements have been made or if the Recipient knowingly or improperly retains funds that are a debt as defined in paragraph 14(a). Treasury will take any actions available to it to collect such a debt. 15. Disclaimer. a. The United States expressly disclaims any and all responsibility or liability to Recipient, or third persons for the actions of Recipient or third persons resulting in death, bodily injury, property damages, or any other losses resulting in any way from the performance of this award or any other losses resulting in any way from the performance of this award or any contract, or subcontract under this award. b. The acceptance of this award by Recipient does not in any way establish an agency relationship between the United States and Recipient. 16. Protections for Whistleblowers. a. In accordance with 41 U.S.C. 4712, Recipient may not discharge, demote, or otherwise discriminate against an employee in reprisal for disclosing to any of the list of persons or entities provided below, information that the employee reasonably believes is evidence of gross mismanagement of a federal contract or grant, a gross waste of federal funds, an abuse of authority relating to a federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal contract (including the competition for or negotiation of a contract) or grant. b. The list of persons and entities referenced in the paragraph above includes the following: i. Amember of Congress or a representative of a committee of Congress; ii. An Inspector General; iii. The Government Accountability Office; iv. A Treasury employee responsible for contract or grant oversight or management; v. An authorized official of the Department of Justice or other law enforcement agency; vi. Acourt or grand jury; or viii A management official or other employee of Recipient, contractor, or subcontractor who has the responsibility to investigate, discover, or address misconduct. c, Recipient shall inform its employees in writing of the rights and remedies provided under this section, in the predominant native language of the workforce. 17. Increasing Seat Belt Use in the United States. Pursuant to Executive Order 18048, 62 FR 19217 (Apr. 18, 1997), Recipient should encourage its contractors to adopt and enforce on-the- job seat belt policies and programs for their employees when operating company-owned, rented or personally owned vehicles. 18. Reducing Text Messaging While Driving. Pursuant to Executive Order 18613, 74 FR 51225 (Oct. 6, 2009), Recipient should encourage its employees, subrecipients, and contractors to adopt and enforce policies that ban text messaging while driving, and Recipient should establish workplace safety policies to decrease accidents caused by distracted drivers. APPENDIX B U.S. DEPARTMENT OF TREASURY CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS FREQUENTLY ASKED QUESTIONS anuary, 2022) AS OF JANUARY 2022 Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule: Frequently Asked Questions AS OF JANUARY 2022 Update (January 2022): The FAQs in this document pertain to the Interim Final Rule (ER), which is in effect until April 1, 2022. In addition to this document, recipients are encouraged to consult the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule, which provides guidance on use of funds until the Final Rule takes effect. Treasury anticipates issuing FAQs for the Final Rule at a later date. Recipients may find helpful the Overview of the Final Rule, which provides a summary of major provision of the Final Rule for informational purposes. This document contains answers to frequently asked questions regarding the Interim Final Rule of the Coronavirus State and Local Fiscal Recovery Funds (CSFRF / CLFRF, or Fiscal Recovery Funds). Treasury will be updating this document periodically in response to questions received from stakeholders. Recipients and stakeholders should consult the Interim Final Rule for additional information. e For overall information about the program, including information on requesting funding, please see https://home.treasury.gov/policy-issues/coronavitus/assistance-for-state-local- and-tribal-governments For general questions about CSFRF / CLFRF, please email SLFRP@treasury. Questions added 5/27/21: 1.5, 1.6, 2.13, 2.14, 2.15, 3.9, 4.5, 4.6, 10.3, 10.4 (noted with [5/27]) Questions added 6/8/21: 2.16, 3.10, 3.11, 3.12, 4.7, 6.7, 8.2, 9.4, 9.5, 10.5 (noted with [6/8]) Questions added 6/17/21: 6.8, 6.9, 6.10, 6.11 (noted with [6/17]) Questions added 6/23/21: 1.7, 2.17, 2.18, 2.19, 2.20, 3.1 (appendix), 3.13, 4.8, 6.12 (noted with [6/23}) Question added 6/24/21: 2.21 (noted with [6/24]) Questions added 7/14/21: 1.8, 3.14, 3.15, 4.9, 4.10, 4.11, 4.12, 6.13, 6.14, 6.15, 6.16, 6.17, 10.3 updated (noted with [7/14]) Question added 11/15/21: 12.1; Questions updated 11/15/21: 9.2 Answers to frequently asked questions on distribution of funds to non-entitlement units of local government (NEUs) can be found in this FAQ supplement, which is regularly updated. AS OF JANUARY 2022 1. Eligibility and Allocations 11. 1.2. 1.3. 1.4. Which governments are eligible for funds? The following governments are eligible: States and the District of Columbia Territories Tribal governments Counties Metropolitan cities e Non-entitlement units, or smaller local governments Which governments receive funds directly from Treasury? Treasury will distribute funds directly to each eligible state, territory, metropolitan city, county, or Tribal government. Smaller local governments that are classified as non- entitlement units will receive funds through their applicable state government. Are special-purpose units of government eligible to receive funds? Special-purpose units of local government will not receive funding allocations; however, a state, territory, local, or Tribal government may transfer funds to a special-purpose unit of government. Special-purpose districts perform specific functions in the community, such as fire, water, sewer or mosquito abatement districts. How are funds being allocated to Tribal governments, and how will Tribal governments find out their allocation amounts?! $20 billion of Fiscal Recovery Funds was reserved for Tribal governments. The American Rescue Plan Act specifies that $1 billion will be allocated evenly to all eligible Tribal governments. The remaining $19 billion will be distributed using an allocation methodology based on enrollment and employment. There will be two payments to Tribal governments. Each Tribal governments first payment will include (i) an amount in respect of the $1 billion allocation that is to be divided equally among eligible Tribal governments and (ii) each Tribal governments pro rata share of the Enrollment Allocation. Tribal governments will be notified of their allocation amount and delivery of payment 4-5 days after completing request for funds in the Treasury Submission Portal. The deadline to make the initial request for funds was June 21, 2021. The second payment will include a Tribal governments pro rata share of the Employment Allocation. There is a $1,000,000 minimum employment allocation for Tribal governments. In late-June, Tribal governments will receive an email notification ' The answer to this question was updated on July 19, 2021. 2 1.5. 1.6. 1.7. 1.8. AS OF JANUARY 2022 to re-enter the Treasury Submission Portal to confirm or amend their 2019 employment numbers that were submitted to the Department of the Treasury for the CARES Acts Coronavirus Relief Fund. To receive an Employment Allocation, including the minimum employment allocation, Tribal governments must confirm employment numbers by July 23, 2021. Treasury will calculate employment allocations for those Tribal governments that confirmed or submitted amended employment numbers by the deadline. In August, Treasury will communicate to Tribal governments the amount of their portion of the Employment Allocation and the anticipated date for the second payment. My county is a unit of general local government with population under 50,000. Will my county receive funds directly from Treasury? [5/27] Yes. All counties that are units of general local government will receive funds directly from Treasury and should apply via the online portal. The list of county allocations is available here. My local government expected to be classified as a non-entitlement unit. Instead, it was classified as a metropolitan city. Why? [5/27] The American Rescue Plan Act defines, for purposes of the Coronavirus Local Fiscal Recovery Fund (CLFRF), metropolitan cities to include those that are currently metropolitan cities under the Community Development Block Grant (CDBG) program but also those cities that relinquish or defer their status as a metropolitan city for purposes of the CDBG program. This would include, by way of example, cities that are principal cities of their metropolitan statistical area, even if their population is less than 50,000. In other words, a city that is eligible to be a metropolitan city under the CDBG program is eligible as a metropolitan city under the CLFRF, regardless of how that city has elected to participate in the CDBG program. Unofficial allocation estimates produced by other organizations may have classified certain local governments as non-entitlement units of local government. However, based on the statutory definitions, some of these local governments should have been classified as metropolitan cities. In order to receive and use Fiscal Recovery Funds, must a recipient government maintain a declaration of emergency relating to COVID-19? [6/23] No. Neither the statute establishing the CSFRF/CLFRF nor the Interim Final Rule requires recipients to maintain a local declaration of emergency relating to COVID-19. Can non-profit or private organizations receive funds? If so, how? [7/14] AS OF JANUARY 2022 Yes. Under section 602(c)(3) of the Social Security Act, a State, territory, or Tribal government may transfer funds to a private nonprofit organization... , a Tribal organization... , a public benefit corporation involved in the transportation of passengers or cargo, or a special-purpose unit of State or local government. Similarly, section 603(c)(3) authorizes a local government to transfer funds to the same entities (other than Tribal organizations). The Interim Final Rule clarifies that the lists of transferees in sections 602(c)(3) and 603(c)(3) are not exclusive, and recipients may transfer funds to constituent units of government or private entities beyond those specified in the statute. A transferee receiving a transfer from a recipient under sections 602(c)(3) and 603(c)(3) will be considered to be a subrecipient and will be expected to comply with all subrecipient reporting requirements. The ARPA does not authorize Treasury to provide CSFRF/CLFRF funds directly to non- profit or private organizations. Thus, non-profit or private organizations should seek funds from CSFRF/CLFRF recipient(s) in their jurisdiction (e.g., a State, local, territorial, or Tribal government). 2. Eligible Uses ~- Responding to the Public Health Emergency / Negative Economic Impacts 2.1. What types of COVID-19 response, mitigation, and prevention activities are eligible? A broad range of services are needed to contain COVID-19 and are eligible uses, including vaccination programs; medical care; testing; contact tracing; support for isolation or quarantine; supports for vulnerable populations to access medical or public health services; public health surveillance (e.g., monitoring case trends, genomic sequencing for variants); enforcement of public health orders; public communication efforts; enhancement to health care capacity, including through alternative care facilities; purchases of personal protective equipment; support for prevention, mitigation, or other services in congregate living facilities (e.g., nursing homes, incarceration settings, homeless shelters, group living facilities) and other key settings like schools; ventilation improvements in congregate settings, health care settings, or other key locations; enhancement of public health data systems; and other public health responses. Capital investments in public facilities to meet pandemic operational needs are also eligible, such as physical plant improvements to public hospitals and health clinics or adaptations to public buildings to implement COVID-19 mitigation tactics. 2.2. Ifa use of funds was allowable under the Coronavirus Relief Fund (CRF) to respond to the public health emergency, may recipients presume it is also allowable under CSFRFE/CLFRF? Generally, funding uses eligible under CRF as a response to the direct public health impacts of COVID-19 will continue to be eligible under CSFRF/CLFRE, with the following two exceptions: (1) the standard for eligibility of public health and safety 2.3. 2.4, 2.5. AS OF JANUARY 2022 payrolls has been updated; and (2) expenses related to the issuance of tax-anticipation notes are not an eligible funding use. If a use of funds is not explicitly permitted in the Interim Final Rule as a response to the public health emergency and its negative economic impacts, does that mean it is prohibited? The Interim Final Rule contains a non-exclusive list of programs or services that may be funded as responding to COVID-19 or the negative economic impacts of the COVID-19 public health emergency, along with considerations for evaluating other potential uses of Fiscal Recovery Funds not explicitly listed. The Interim Final Rule also provides flexibility for recipients to use Fiscal Recovery Funds for programs or services that are not identified on these non-exclusive lists but which meet the objectives of section 602(c)(1)(A) or 603(c)(1)(A) by responding to the COVID-19 public health emergency with respect to COVID-19 or its negative economic impacts. May recipients use funds to respond to the public health emergency and its negative economic impacts by replenishing state unemployment funds? Consistent with the approach taken in the CRF, recipients may make deposits into the state account of the Unemployment Trust Fund up to the level needed to restore the pre- pandemic balances of such account as of January 27, 2020, or to pay back advances received for the payment of benefits between January 27, 2020 and the date when the Interim Final Rule is published in the Federal Register. What types of services are eligible as responses to the negative economic impacts of the pandemic? Eligible uses in this category include assistance to households; small businesses and non- profits; and aid to impacted industries. Assistance to households includes, but is not limited to: food assistance; rent, mortgage, or utility assistance; counseling and legal aid to prevent eviction or homelessness; cash assistance; emergency assistance for burials, home repairs, weatherization, or other needs; internet access or digital literacy assistance; or job training to address negative economic or public health impacts experienced due to a workers occupation or level of training. Assistance to small business and non-profits includes, but is not limited to: loans or grants to mitigate financial hardship such as declines in revenues or impacts of periods of business closure, for example by supporting payroll and benefits costs, costs to retain employees, mortgage, rent, or utilities costs, and other operating costs; e Loans, grants, or in-kind assistance to implement COVID-19 prevention or mitigation tactics, such as physical plant changes to enable social distancing, 2.6. 2.7. 2.8. 2.9. AS OF JANUARY 2022 enhanced cleaning efforts, barriers or partitions, or COVID-19 vaccination, testing, or contact tracing programs; and Technical assistance, counseling, or other services to assist with business planning needs May recipients use funds to respond to the public health emergency and its negative economic impacts by providing direct cash transfers to households? Yes, provided the recipient considers whether, and the extent to which, the household has experienced a negative economic impact from the pandemic. Additionally, cash transfers must be reasonably proportional to the negative economic impact they are intended to address. Cash transfers grossly in excess of the amount needed to address the negative economic impact identified by the recipient would not be considered to be a response to the COVID-19 public health emergency or its negative impacts. In particular, when considering appropriate size of permissible cash transfers made in response to the COVID-19 public health emergency, state, local, territorial, and Tribal governments may consider and take guidance from the per person amounts previously provided by the federal government in response to the COVID crisis. May funds be used to reimburse recipients for costs incurred by state and local governments in responding to the public health emergency and its negative economic impacts prior to passage of the American Rescue Plan? Use of Fiscal Recovery Funds is generally forward looking. The Interim Final Rule permits funds to be used to cover costs incurred beginning on March 3, 2021. May recipients use funds for general economic development or workforce development? Generally, not. Recipients must demonstrate that funding uses directly address a negative economic impact of the COVID-19 public health emergency, including funds used for economic or workforce development. For example, job training for unemployed workers may be used to address negative economic impacts of the public health emergency and be eligible. How can recipients use funds to assist the travel, tourism, and hospitality industries? Aid provided to tourism, travel, and hospitality industries should respond to the negative economic impacts of the pandemic. For example, a recipient may provide aid to support safe reopening of businesses in the tourism, travel and hospitality industries and to districts that were closed during the COVID-19 public health emergency, as well as aid a planned expansion or upgrade of tourism, travel and hospitality facilities delayed due to the pandemic. 2.10. 2.11, AS OF JANUARY 2022 Tribal development districts are considered the commercial centers for tribal hospitality, gaming, tourism and entertainment industries. May recipients use funds to assist impacted industries other than travel, tourism, and hospitality? Yes, provided that recipients consider the extent of the impact in such industries as compared to tourism, travel, and hospitality, the industries enumerated in the statute. For example, nationwide the leisure and hospitality industry has experienced an approximately 17 percent decline in employment and 24 percent decline in revenue, on net, due to the COVID-19 public health emergency. Recipients should also consider whether impacts were due to the COVID-19 pandemic, as opposed to longer-term economic or industrial trends unrelated to the pandemic. Recipients should maintain records to support their assessment of how businesses or business districts receiving assistance were affected by the negative economic impacts of the pandemic and how the aid provided responds to these impacts. How does the Interim Final Rule help address the disparate impact of COVID-19 on certain populations and geographies? In recognition of the disproportionate impacts of the COVID-19 virus on health and economic outcomes in low-income and Native American communities, the Interim Final Rule identifies a broader range of services and programs that are considered to be in response to the public health emergency when provided in these communities. Specifically, Treasury will presume that certain types of services are eligible uses when provided in a Qualified Census Tract (QCT), to families living in QCTs, or when these services are provided by Tribal governments. Recipients may also provide these services to other populations, households, or geographic areas disproportionately impacted by the pandemic. In identifying these disproportionately-impacted communities, recipients should be able to support their determination for how the pandemic disproportionately impacted the populations, households, or geographic areas to be served. Eligible services include: e Addressing health disparities and the social determinants of health, including: community health workers, public benefits navigators, remediation of lead paint or other lead hazards, and community violence intervention programs; Building stronger neighborhoods and communities, including: supportive housing and other services for individuals experiencing homelessness, development of affordable housing, and housing vouchers and assistance relocating to neighborhoods with higher levels of economic opportunity; 2.12. 2.13. 2.14, AS OF JANUARY 2022 e Addressing educational disparities exacerbated by COVID-19, including: early learning services, increasing resources for high-poverty school districts, educational services like tutoring or afterschool programs, and supports for students social, emotional, and mental health needs; and Promoting healthy childhood environments, including: child care, home visiting programs for families with young children, and enhanced services for child welfare-involved families and foster youth. May recipients use funds to pay for vaccine incentive programs (e.g., cash or in-kind transfers, lottery programs, or other incentives for individuals who get vaccinated)? Yes. Under the Interim Final Rule, recipients may use Coronavirus State and Local Fiscal Recovery Funds to respond to the COVID-19 public health emergency, including expenses related to COVID-19 vaccination programs. See 31 CFR 35.6(b)(1)(i). Programs that provide incentives reasonably expected to increase the number of people who choose to get vaccinated, or that motivate people to get vaccinated sooner than they otherwise would have, are an allowable use of funds so long as such costs are reasonably proportional to the expected public health benefit. May recipients use funds to pay back to work incentives (e.g., cash payments for newly employed workers after a certain period of time on the job)? [5/27] Yes. Under the Interim Final Rule, recipients may use Coronavirus State and Local Fiscal Recovery Funds to provide assistance to unemployed workers. See 31 CFR. 35.6(b)(4). This assistance can include job training or other efforts to accelerate rehiring and thus reduce unemployment, such as childcare assistance, assistance with transportation to and from a jobsite or interview, and incentives for newly employed workers. The Coronavirus Relief Fund (CRE) included as an eligible use: "Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency." What has changed in CSFRF/CLFRE, and what type of documentation is required under CSFRF/CLFRE? [5/27] Many of the expenses authorized under the Coronavirus Relief Fund are also eligible uses under the CSFRF/CLFRF. However, in the case of payroll expenses for public safety, public health, health care, human services, and similar employees (hereafter, public health and safety staff), the CSFRF/CLFRF does differ from the CRF. This change reflects the differences between the ARPA and CARES Act and recognizes that the response to the COVID-19 public health emergency has changed and will continue to change over time. In particular, funds may be used for payroll and covered benefits expenses for public safety, public health, health care, human services, and similar employees, including first responders, to the extent that the employees time that is dedicated to responding to the COVID-19 public health emergency. 2.16. AS OF JANUARY 2022 For administrative convenience, the recipient may consider a public health and safety employee to be entirely devoted to mitigating or responding to the COVID-19 public health emergency, and therefore fully covered, if the employee, or his or her operating unit or division, is primarily dedicated (e.g., more than half of the employees time is dedicated) to responding to the COVID-19 public health emergency. Recipients may use presumptions for assessing whether an employee, division, or operating unit is primarily dedicated to COVID-19 response. The recipient should maintain records to support its assessment, such as payroll records, attestations from supervisors or staff, or regular work product or correspondence demonstrating work on the COVID-19 response. Recipients need not routinely track staff hours. Recipients should periodically reassess their determinations. What staff are included in public safety, public health, health care, human services, and similar employees? Would this include, for example, 911 operators, morgue staff, medical examiner staff, or EMS staff? [5/27] As discussed in the Interim Final Rule, funds may be used for payroll and covered benefits expenses for public safety, public health, health care, human services, and similar employees, for the portion of the employees time that 1 is dedicated to responding to the COVID-19 public health emergency. Public safety employees would include police officers (including state police officers), sheriffs and deputy sheriffs, firefighters, emergency medical responders, correctional and detention officers, and those who directly support such employees such as dispatchers and supervisory personnel. Public health employees would include employees involved in providing medical and other health services to patients and supervisory personnel, including medical staff assigned to schools, prisons, and other such institutions, and other support services essential for patient care (e.g., laboratory technicians, medical examiner or morgue staff) as well as employees of public health departments directly engaged in matters related to public health and related supervisory personnel. Human services staff include employees providing or administering social services; public benefits; child welfare services; and child, elder, or family care, as well as others. May recipients use funds to establish a public jobs program? [6/8] Yes. The Interim Final Rule permits a broad range of services to unemployed or underemployed workers and other individuals that suffered negative economic impacts from the pandemic. That can include public jobs programs, subsidized employment, combined education and on-the-job training programs, or job training to accelerate rehiring or address negative economic or public health impacts experienced due to a workers occupation or level of training. The broad range of permitted services can also include other employment supports, such as childcare assistance or assistance with transportation to and from a jobsite or interview. 2.17. AS OF JANUARY 2022 The Interim Final Rule includes as an eligible use re-hiring public sector staff up to the governments level of pre-pandemic employment. Public sector staff would not include individuals participating in a job training or subsidized employment program administered by the recipient. The Interim Final Rule states that assistance or aid to individuals or businesses that did not experience a negative economic impact from the public health emergency would not be an eligible use under this category. Are recipients required to demonstrate that each individual or business experienced a negative economic impact for that individual or business to receive assistance? [6/23] Not necessarily. The Interim Final Rule allows recipients to demonstrate a negative economic impact on a population or group and to provide assistance to households or businesses that fall within that population or group. In such cases, the recipient need only demonstrate that the household or business is within the population or group that experienced a negative economic impact. For assistance to households, the Interim Final Rule states, In assessing whether a household or population experienced economic harm as a result of the pandemic, a recipient may presume that a household or population that experienced unemployment or increased food or housing insecurity or is low- or moderate-income experienced negative economic impacts resulting from the pandemic. This would allow, for example, an internet access assistance program for all low- or moderate-income households, but would not require the recipient to demonstrate or document that each individual low- or - moderate income household experienced a negative economic impact from the COVID- 19 public health emergency apart from being low- or -moderate income. For assistance to small businesses, the Interim Final Rule states that assistance may be provided to small businesses, including loans, grants, in-kind assistance, technical assistance or other services, to respond to the negative economic impacts of the COVID- 19 public health emergency. In providing assistance to small businesses, recipients must design a program that responds to the negative economic impacts of the COVID-19 public health emergency, including by identifying how the program addresses the identified need or impact faced by small businesses. This can include assistance to adopt safer operating procedures, weather periods of closure, or mitigate financial hardship resulting from the COVID-19 public health emergency. As part of program design and to ensure that the program responds to the identified need, recipients may consider additional criteria to target assistance to businesses in need, including to small businesses. Assistance may be targeted to businesses facing financial insecurity, with substantial declines in gross receipts (e.g., comparable to measures used to assess eligibility for the Paycheck Protection Program), or facing other economic harm due to the pandemic, as well as businesses with less capacity to weather financial hardship, such as the smallest businesses, those with less access to credit, or those serving disadvantaged communities. For example, a recipient could find based on local data or research that the smallest businesses faced sharply increased risk of bankruptcy and 10 2.18. AS OF JANUARY 2022 develop a program to respond; such a program would only need to document a population or group-level negative economic impact, and eligibility criteria to limit access to the program to that population or group (in this case, the smallest businesses). In addition, recognizing the disproportionate impact of the pandemic on disadvantaged communities, the Interim Final Rule also identifies a set of services that are presumptively eligible when provided in a Qualified Census Tract (QCT); to families and individuals living in QCTs; to other populations, households, or geographic areas identified by the recipient as disproportionately impacted by the pandemic; or when these services are provided by Tribal governments. For more information on the set of ptesumptively eligible services, see the Interim Final Rule section on Building Stronger Communities through Investments in Housing and Neighborhoods and FAQ 2.11. Would investments in improving outdoor spaces (e.g. parks) be an eligible use of funds as a response to the public health emergency and/or its negative economic impacts? [6/23] : There are multiple ways that investments in improving outdoor spaces could qualify as eligible uses; several are highlighted below, though there may be other ways that a specific investment in outdoor spaces would meet eligible use criteria. First, in recognition of the disproportionate negative economic impacts on certain communities and populations, the Interim Final Rule identifies certain types of services that are eligible uses when provided in a Qualified Census Tract (QCT), to families and individuals living in QCTs, or when these services are provided by Tribal governments. Recipients may also provide these services to other populations, households, or geographic areas disproportionately impacted by the pandemic. These programs and services include services designed to build stronger neighborhoods and communities and to address health disparities and the social determinants of health. The Interim Final Rule provides a non-exhaustive list of eligible services to respond to the needs of communities disproportionately impacted by the pandemic, and recipients may identify other uses of funds that do so, consistent with the Rules framework. For example, investments in parks, public plazas, and other public outdoor recreation spaces may be responsive to the needs of disproportionately impacted communities by promoting healthier living environments and outdoor recreation and socialization to mitigate the spread of COVID-19. Second, recipients may provide assistance to small businesses in all communities. Assistance to small businesses could include support to enhance outdoor spaces for COVID-19 mitigation (e.g., restaurant patios) or to improve the built environment of the neighborhood (e.g., fagade improvements). Third, many governments saw significantly increased use of parks during the pandemic that resulted in damage or increased maintenance needs. The Interim Final Rule 11 2.19, 2.20. AS OF JANUARY 2022 recognizes that decrease[s to] a state or local governments ability to effectively administer services can constitute a negative economic impact of the pandemic. Would expenses to address a COVID-related backlog in court cases be an eligible use of funds as a response to the public health emergency? [6/23] The Interim Final Rule recognizes that decrease[s to] a state or local governments ability to effectively administer services, such as cuts to public sector staffing levels, can constitute a negative economic impact of the pandemic. During the COVID-19 public health emergency, many courts were unable to operate safely during the pandemic and, as a result, now face significant backlogs. Court backlogs resulting from inability of courts to safely operate during the COVID-19 pandemic decreased the governments ability to administer services. Therefore, steps to reduce these backlogs, such as implementing COVID-19 safety measures to facilitate court operations, hiring additional court staff or attorneys to increase speed of case resolution, and other expenses to expedite case resolution are eligible uses. Can funds be used to assist small business startups as a response to the negative economic impact of COVID-19? [6/23] As discussed in the Interim Final Rule, recipients may provide assistance to small businesses that responds to the negative economic impacts of COVID-19. The Interim Final Rule provides a non-exclusive list of potential assistance mechanisms, as well as considerations for ensuring that such assistance is responsive to the negative economic impacts of COVID-19, Treasury acknowledges a range of potential circumstances in which assisting small business startups could be responsive to the negative economic impacts of COVID-19, including for small businesses and individuals seeking to start smal! businesses after the start of the COVID-19 public health emergency. For example: e A recipient could assist small business startups with additional costs associated with COVID-19 mitigation tactics (e.g., barriers or partitions; enhanced cleaning; or physical plant changes to enable greater use of outdoor space). e A recipient could identify and respond to a negative economic impact of COVID- 19 on new small business startups; for example, if it could be shown that small business startups in a locality were facing greater difficult accessing credit than prior to the pandemic, faced increased costs to starting the business due to the pandemic, or that the small business had lost expected startup capital due to the pandemic. e The Interim Final Rule also discusses eligible uses that provide support for individuals who have experienced a negative economic impact from the COVID- 19 public health emergency, including uses that provide job training for unemployed individuals. These initiatives also may support small business startups and individuals seeking to start small businesses. 12 AS OF JANUARY 2022 2.21. Can funds be used for eviction prevention efforts or housing stability services? [6/24] Yes. Responses to the negative economic impacts of the pandemic include rent, mortgage, or utility assistance [and] counseling and legal aid to prevent eviction or homelessness. This includes housing stability services that enable eligible households to maintain or obtain housing, such as housing counseling, fair housing counseling, case management related to housing stability, outreach to households at risk of eviction or promotion of housing support programs, housing related services for survivors of domestic abuse or human trafficking, and specialized services for individuals with disabilities or seniors that supports their ability to access or maintain housing. This also includes legal aid such as legal services or attorneys fees related to eviction proceedings and maintaining housing stability, court-based eviction prevention or eviction diversion programs, and other legal services that help households maintain or obtain housing. Recipients may transfer funds to, or execute grants or contracts with, court systems, non- profits, and a wide range of other organizations to implement these strategies. 3. Eligible Uses Revenue Loss 3.1. 3.2. How is revenue defined for the purpose of this provision? [appendix added 6/23] The Interim Final Rule adopts a definition of General Revenue that is based on, but not identical, to the Census Bureaus concept of General Revenue from Own Sources in the Annual Survey of State and Local Government Finances. General Revenue includes revenue from taxes, current charges, and miscellaneous general revenue. It excludes refunds and other correcting transactions, proceeds from issuance of debt or the sale of investments, agency or private trust transactions, and. revenue generated by utilities and insurance trusts. General revenue also includes intergovernmental transfers between state and local governments, but excludes intergovernmental transfers from the Federal government, including Federal transfers made via a state to a locality pursuant to the CRF or the Fiscal Recovery Funds. Tribal governments may include all revenue from Tribal enterprises and gaming operations in the definition of General Revenue. Please see the appendix for a diagram of the Interim Final Rules definition of General Revenue within the Census Bureaus revenue classification structure. Will revenue be calculated on an entity-wide basis or on a source-by-source basis (e.g. property tax, income tax, sales tax, etc.)? 13 3.3. 3.4. 3.5. AS OF JANUARY 2022 Recipients should calculate revenue on an entity-wide basis. This approach minimizes the administrative burden for recipients, provides for greater consistency across recipients, and presents a more accurate representation of the net impact of the COVID- 19 public health emergency on a recipients revenue, rather than relying on financial reporting prepared by each recipient, which vary in methodology used and which generally aggregates revenue by purpose rather than by source. Does the definition of revenue include outside concessions that contract with a state or local government? Recipients should classify revenue sources as they would if responding to the U.S. Census Bureaus Annual Survey of State and Local Government Finances. According to the Census Bureaus Government Finance and Employment Classification manual, the following is an example of current charges that would be included in a state or local governments general revenue from own sources: Gross revenue of facilities operated by a government (swimming pools, recreational marinas and piers, golf courses, skating rinks, museums, zoos, etc.); auxiliary facilities in public recreation areas (camping areas, refreshment stands, gift shops, etc.); lease or use fees from stadiums, auditoriums, and community and convention centers; and rentals from concessions at such facilities. What is the time period for estimating revenue loss? Will revenue losses experienced prior to the passage of the Act be considered? Recipients are permitted to calculate the extent of reduction in revenue as of four points in time: December 31, 2020; December 31, 2021; December 31, 2022; and December 31, 2023. This approach recognizes that some recipients may experience lagged effects of the pandemic on revenues. Upon receiving Fiscal Recovery Fund payments, recipients may immediately calculate revenue loss for the period ending December 31, 2020. What is the formula for calculating the reduction in revenue? A reduction in a recipients General Revenue equals: De Max {[Base Year Revenue* (1+Growth Adjustment) (T)] - Actual General Revenue, ; 0} Where: Base Year Revenue is General Revenue collected in the most recent full fiscal year prior to the COVD-19 public health emergency. Growth Adjustment is equal to the greater of 4.1 percent (or 0.041) and the recipients average annual revenue growth over the three full fiscal years prior to the COVID-19 public health emergency. 14 3.6. 3.7. 3.8. AS OF JANUARY 2022 n equals the number of months elapsed from the end of the base year to the calculation date. Actual General Revenue is a recipients actual general revenue collected during 12-month period ending on each calculation date. Subscript denotes the calculation date. Are recipients expected to demonstrate that reduction in revenue is due to the COVID-19 public health emergency? In the Interim Final Rule, any diminution in actual revenue calculated using the formula above would be presumed to have been due to the COVID-19 public health emergency. This presumption is made for administrative ease and in recognition of the broad-based economic damage that the pandemic has wrought. May recipients use pre-pandemic projections as a basis to estimate the reduction in revenue? No. Treasury is disallowing the use of projections to ensure consistency and comparability across recipients and to streamline verification. However, in estimating the revenue shortfall using the formula above, recipients may incorporate their average annual revenue growth rate in the three full fiscal years prior to the public health emergency. Once a recipient has identified a reduction in revenue, are there any restrictions on how recipients use funds up to the amount of the reduction? The Interim Final Rule gives recipients broad latitude to use funds for the provision of government services to the extent of reduction in revenue. Government services can include, but are not limited to, maintenance of infrastructure or pay-go spending for building new infrastructure, including roads; modernization of cybersecurity, including hardware, software, and protection of critical infrastructure; health services; environmental remediation; school or educational services; and the provision of police, fire, and other public safety services. However, paying interest or principal on outstanding debt, replenishing rainy day or other reserve funds, or paying settlements or judgments would not be considered provision of a government service, since these uses of funds do not entail direct provision of services to citizens. This restriction on paying interest or principal on any outstanding debt instrument, includes, for example, short-term revenue or tax anticipation notes, or paying fees or issuance costs associated with the issuance of new debt. In addition, the overarching restrictions on all program funds (e.g., restriction on pension deposits, restriction on using funds for non-federal match where barred by regulation or statute) would apply. 15 3.9. 3.10. 3.11. 3.12. 3.13. AS OF JANUARY 2022 How do I know if a certain type of revenue should be counted for the purpose of computing revenue loss? [5/27] As discussed in FAQ #3.1, the Interim Final Rule adopts a definition of General Revenue that is based on, but not identical, to the Census Bureaus concept of General Revenue from Own Sources in the Annual Survey of State and Local Government Finances. Recipients should refer to the definition of General Revenue included in the Interim Final Rule. See 31 CFR 35.3. Ifa recipient is unsure whether a particular revenue source is included in the Interim Final Rules definition of General Revenue, the recipient may consider the classification and instructions used to complete the Census Bureaus Annual Survey. For example, parking fees would be classified as a Current Charge for the purpose of the Census Bureaus Annual Survey, and the Interim Final Rules concept of General Revenue includes all Current Charges. Therefore, parking fees would be included in the Interim Final Rules concept of General Revenue. The Census Bureaus Government Finance and Employment Classification manual is available here. In calculating revenue loss, are recipients required to use audited financials? [6/8] Where audited data is not available, recipients are not required to obtain audited data. Treasury expects all information submitted to be complete and accurate. See 31 CFR 35.4(c). In calculating revenue loss, should recipients use their own data, or Census data? [6/8] Recipients should use their own data sources to calculate general revenue, and do not need to rely on published revenue data from the Census Bureau. Treasury acknowledges that due to differences in timing, data sources, and definitions, recipients self-reported general revenue figures may differ somewhat from those published by the Census Bureau. Should recipients calculate revenue loss on a cash basis or an accrual basis? [6/8] Recipients may provide data on a cash, accrual, or modified accrual basis, provided that recipients are consistent in their choice of methodology throughout the covered period and until reporting is no longer required. In identifying intergovernmental revenue for the purpose of calculating General Revenue, should recipients exclude all federal funding, or just federal funding related to the COVID-19 response? How should local governments treat federal 16 3.14. AS OF JANUARY 2022 funds that are passed through states or other entities, or federal funds that are intermingled with other funds? [6/23] In calculating General Revenue, recipients should exclude all intergovernmental transfers from the federal government. This includes, but is not limited to, federal transfers made via a state to a locality pursuant to the Coronavirus Relief Fund or Fiscal Recovery Funds. To the extent federal funds are passed through states or other entities or intermingled with other funds, recipients should attempt to identify and exclude the federal portion of those funds from the calculation of General Revenue on a best-efforts basis. What entities constitute a government for the purpose of calculating revenue loss? [7/14] In determining whether a particular entity is part of a recipients government for purposes of measuring a recipients government revenue, recipients should identify all the entities included in their government and the general revenue attributable to these entities on a best-efforts basis. Recipients are encouraged to consider how their administrative structure is organized under state and local statutes. In cases in which the autonomy of certain authorities, commissions, boards, districts, or other entities is not readily distinguishable from the recipients government, recipients may adopt the Census Bureaus criteria for judging whether an entity is independent from, or a constituent of, a given government. For an entity to be independent, it generally meets all four of the following conditions: e The entity is an organized entity and possesses corporate powers, such as perpetual succession, the right to sue and be sued, having a name, the ability to make contracts, and the ability to acquire and dispose of property. e The entity has governmental character, meaning that it provides public services, or wields authority through a popularly elected governing body or officers appointed by public officials. A high degree of responsibility to the public, , demonstrated by public reporting requirements or by accessibility of records for public inspection, also evidences governmental character. e The entity has substantial fiscal independence, meaning it can determine its budget without review and modification by other governments. For instance, the entity can determine its own taxes, charges, and debt issuance without another governments supervision. e The entity has substantial administrative independence, meaning it has a popularly elected governing body, or has a governing body representing two or more governments, or, in the event its governing body is appointed by another government, the entity performs functions that are essentially different from those of, and are not subject to specification by, its creating government. 17 3.15. AS OF JANUARY 2022 If an entity does not meet all four of these conditions, a recipient may classify the entity as part of the recipients government and assign the portion of General Revenue that corresponds to the entity. To further assist recipients in applying the forgoing criteria, recipients may refer to the Census Bureaus Individual State Descriptions: 2017 Census of Governments publication, which lists specific entities and classes of entities classified as either independent (defined by Census as special purpose governments) or constituent (defined by Census as dependent agencies) on a state-by-state basis. Recipients should note that the Census Bureaus lists are not exhaustive and that Census classifications are based on an analysis of state and local statutes as of 2017 and subject to the Census Bureaus judgement. Though not included in the Census Bureaus publication, state colleges and universities are generally classified as dependent agencies of state governments by the Census Bureau. If an entity is determined to be part of the recipients government, the recipient must also determine whether the entitys revenue is covered by the Interim Final Rules definition of general revenue. For example, some cash flows may be outside the definition of general revenue. In addition, note that the definition of general revenue includes Tribal enterprises in the case of Tribal governments. Refer to FAQ 3.1 (and the Appendix) for the components included in General Revenue. The Interim Final Rules definition of General Revenue excludes revenue generated by utilities. Can you please clarify the definition of utility revenue? [7/14] As noted in FAQs 3.1 and 3.9, the Interim Final Rule adopts a definition of general revenue that is based on, but not identical to, the Census Bureaus concept of General Revenue from Own Sources in the Annual Survey of State and Local Government Finances. Recipients should refer to the definition of general revenue included in the Interim Final Rule. See 31 CFR 35.3. Ifa recipient is unsure whether a particular revenue source is included in the Interim Final Rules definition of general revenue, the recipient may consider the classification and instructions used to complete the Census Bureaus Annual Survey. According to the Census Bureaus Government Finance and Employment Classification manual, utility revenue is defined as [g]ross receipts from sale of utility commodities or services to the public or other governments by publicly-owned and controlled utilities. This includes revenue from operations of publicly-owned and controlled water supply systems, electric power systems, gas supply systems, and public mass transit systems (see pages 4-45 and 4-46 of the manual for more detail). Except for these four types of utilities, revenues from all commercial-type activities of a recipients government (e.g., airports, educational institutions, lotteries, public hospitals, public housing, parking facilities, port facilities, sewer or solid waste systems, and toll roads and bridges) are covered by the Interim Final Rules definition of general revenue. Ifa recipient is unsure whether a particular entity performing one of these 18 AS OF JANUARY 2022 commercial-type activities can be considered part of the recipients government, please see FAQ 3.14. 4. Eligible Uses General 4.1. 4.2. 4.3. 4.4, May recipients use funds to replenish a budget stabilization fund, rainy day fund, or similar reserve account? No. Funds made available to respond to the public health emergency and its negative economic impacts are intended to help meet pandemic response needs and provide immediate stabilization for households and businesses. Contributions to rainy day funds and similar reserves funds would not address these needs or respond to the COVID-19 public health emergency, but would rather be savings for future spending needs. Similarly, funds made available for the provision of governmental services (to the extent of reduction in revenue) are intended to support direct provision of services to citizens. Contributions to rainy day funds are not considered provision of government services, since such expenses do not directly relate to the provision of government services. May recipients use funds to invest in infrastructure other than water, sewer, and broadband projects (e.g. reads, public facilities)? Under 602(c)(1)(C) or 603(c)(1)(C), recipients may use funds for maintenance of infrastructure or pay-go spending for building of new infrastructure as part of the general provision of government services, to the extent of the estimated reduction in revenue due to the public health emergency. Under 602(c)(1)(A) or 603(c)(1)(A), a general infrastructure project typically would not be considered a response to the public health emergency and its negative economic impacts unless the project responds to a specific pandemic-related public health need (e.g., investments in facilities for the delivery of vaccines) or a specific negative economic impact of the pandemic (e.g., affordable housing in a Qualified Census Tract). May recipients use funds to pay interest or principal on outstanding debt? No. Expenses related to financing, including servicing or redeeming notes, would not address the needs of pandemic response or its negative economic impacts. Such expenses would also not be considered provision of government services, as these financing expenses do not directly provide services or aid to citizens, This applies to paying interest or principal on any outstanding debt instrument, including, for example, short-term revenue or tax anticipation notes, or paying fees or issuance costs associated with the issuance of new debt. May recipients use funds to satisfy nonfederal matching requirements under the Stafford Act? May recipients use funds to satisfy nonfederal matching requirements generally? 19 4.5. 4.6. AS OF JANUARY 2022 Fiscal Recovery Funds are subject to pre-existing limitations in other federal statutes and regulations and may not be used as non-federal match for other Federal programs whose statute or regulations bar the use of Federal funds to meet matching requirements. For example, expenses for the state share of Medicaid are not an eligible use. For information on FEMA programs, please see here. Are governments required to submit proposed expenditures to Treasury for approval? [5/27] No. Recipients are not required to submit planned expenditures for prior approval by Treasury. Recipients are subject to the requirements and guidelines for eligible uses contained in the Interim Final Rule. How do I know if a specific use is eligible? [5/27] Fiscal Recovery Funds must be used in one of the four eligible use categories specified in the American Rescue Plan Act and implemented in the Interim Final Rule: a) To respond to the public health emergency or its negative economic impacts, including assistance to households, smal! businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality; b) To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers; c) For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and d) To make necessary investments in water, sewer, or broadband infrastructure. Recipients should consult Section II of the Interim Final Rule for additional information on eligible uses. For recipients evaluating potential uses under (a), the Interim Final Rule contains a non-exclusive list of programs or services that may be funded as responding to COVID-19 or the negative economic impacts of the COVID-19 public health emergency, along with considerations for evaluating other potential uses of Fiscal Recovery Funds not explicitly listed. See Section If of the Interim Final Rule for additional discussion. For recipients evaluating potential uses under (c), the Interim Final Rule gives recipients broad latitude to use funds for the provision of government services to the extent of reduction in revenue. See FAQ #3.8 for additional discussion. For recipients evaluating potential uses under (b) and (d), see Sections 5 and 6. 20 4.7. 4.8. AS OF JANUARY 2022 Do restrictions on using Coronavirus State and Local Fiscal Recovery Funds to cover costs incurred beginning on March 3, 2021 apply to costs incurred by the recipient (e.g., a State, local, territorial, or Tribal government) or to costs incurred by households, businesses, and individuals benefiting from assistance provided using Coronavirus State and Local Fiscal Recovery Funds? [6/8] The Interim Final Rule permits funds to be used to cover costs incurred beginning on March 3, 2021. This limitation applies to costs incurred by the recipient (ie., the state, local, territorial, or Tribal government receiving funds). However, recipients may use Coronavirus State and Local Fiscal Recovery Funds to provide assistance to households, businesses, and individuals within the eligible use categories described in the Interim Final Rule for economic harms experienced by those households, businesses, and individuals prior to March 3, 2021. For example, e Public Health/Negative Economic Impacts Recipients may use Coronavirus State and Local Fiscal Recovery Funds to provide assistance to households such as rent, mortgage, or utility assistance for economic harms experienced or costs incurred by the household prior to March 3, 2021 (e.g., rental arrears from preceding months), provided that the cost of providing assistance to the household was not incurred by the recipient prior to March 3, 2021. e Premium Pay Recipients may provide premium pay retrospectively for work performed at any time since the start of the COVID-19 public health emergency. Such premium pay must be in addition to wages and remuneration already received and the obligation to provide such pay must not have been incurred by the recipient prior to March 3, 2021. e Revenue Loss The Interim Final Rule gives recipients broad latitude to use funds for the provision of government services to the extent of reduction in revenue. The calculation of lost revenue begins with the recipients revenue in the last full fiscal year prior to the COVID-19 public health emergency and includes the 12-month period ending December 31, 2020. However, use of funds for government services must be forward looking for costs incurred by the recipient after March 3, 2021. e Investments in Water, Sewer, and Broadband Recipients may use Coronavirus State and Local Fiscal Recovery Funds to make necessary investments in water, sewer, and broadband. See FAQ Section 6. Recipients may use Coronavirus State and Local Fiscal Recovery Funds to cover costs incurred for eligible projects planned or started prior to March 3, 2021, provided that the project costs covered by the Coronavirus State and Local Fiscal Recovery Funds were incurred after March 3, 2021. How can J use CSFRF/CLFREF funds to prevent and respond to crime, and support public safety in my community? [6/23] Under Treasurys Interim Final Rule, there are many ways in which the State and Local Fiscal Recovery Funds (Funds) under the American Rescue Plan Act can support communities working to reduce and respond to increased violence due to the pandemic. 21 AS OF JANUARY 2022 Among the eligible uses of the Funds are restoring of public sector staff to their pre- pandemic levels and responses to the public health crisis and negative economic impacts resulting from the pandemic. The Interim Final Rule provides several ways for recipients to respond to this pandemic-related gun violence, ranging from community violence intervention programs to mental health services to hiring of public safety personnel. Below are some examples of how Fiscal Recovery Funds can be used to address public safety: Inall communities, recipients may use resources to rehire police officers and other public servants to restore law enforcement and courts to their pre-pandemic levels. Additionally, Funds can be used for expenses to address COVID-related court backlogs, including hiring above pre-pandemic levels, as a response to the public health emergency. See FAQ 2.19. e Incommunities where an increase in violence or increased difficulty in accessing or providing services to respond to or mitigate the effects of violence, is a result of the pandemic they may use funds to address that harm. This spending may include: o Hiring law enforcement officials even above pre-pandemic levels or paying overtime where the funds are directly focused on advancing community policing strategies in those communities experiencing an increase in gun violence associated with the pandemic o Community Violence Intervention (CVJ programs, including capacity building efforts at CVI programs like funding and training additional intervention workers o Additional enforcement efforts to reduce gun violence exacerbated by the pandemic, including prosecuting gun traffickers, dealers, and other parties contributing to the supply of crime guns, as well as collaborative federal, state, and local efforts to identify and address gun trafficking channels o Investing in technology and equipment to allow law enforcement to more efficiently and effectively respond to the rise in gun violence resulting from the pandemic As discussed in the Interim Final Rule, uses of CSFRF/CLFRF funds that respond to an identified harm must be related and reasonably proportional to the extent and type of harm experienced; uses that bear no relation or are grossly disproportionate to the type or extent of harm experienced would not be eligible uses. Recipients may also use funds up to the level of revenue loss for government services, including those outlined above. Recognizing that the pandemic exacerbated mental health and substance use disorder needs in many communities, eligible public health services include mental health and other behavioral health services, which are a critical component of a holistic public safety approach. This could include: * Mental health services and substance use disorder services, including for individuals experiencing trauma exacerbated by the pandemic, such as: 22 AS OF JANUARY 2022 - Community-based mental health and substance use disorder programs that deliver evidence-based psychotherapy, crisis support services, medications for opioid use disorder, and/or recovery support - School-based social-emotional support and other mental health services e Referrals to trauma recovery services for crime victims. Recipients also may use Funds to respond to the negative economic impacts of the public health emergency, including: Assistance programs to households or populations facing negative economic impacts of the public health emergency, including: - Assistance to support economic security, including for the victims of crime; - Housing assistance, including rent, utilities, and relocation assistance; - Assistance with food, including Summer EBT and nutrition programs; and - Employment or job training services to address negative economic or public health impacts experienced due to a workers occupation or level of training. e Assistance to unemployed workers, including: - Subsidized jobs, including for young people. Summer youth employment programs directly address the negative economic impacts of the pandemic on young people and their families and communities; - Programs that provide paid training and/or work experience targeted primarily to (1) formerly incarcerated individuals, and/or (2) communities experiencing high levels of violence exacerbated by the pandemic; - Programs that provide workforce readiness training, apprenticeship or pre- apprenticeship opportunities, skills development, placement services, and/or coaching and mentoring; and - Associated wraparound services, including for housing, health care, and food. Recognizing the disproportionate impact of the pandemic on certain communities, a broader range of services are eligible in those communities than would otherwise be available in communities not experiencing a pandemic-related increase in crime or gun violence. These eligible uses aim to address the pandemics exacerbation of public health and economic disparities and include services to address health and educational disparities, support neighborhoods and affordable housing, and promote healthy childhood environments. The Interim Final Rule provides a non-exhaustive list of eligible services in these categories. These services automatically qualify as eligible uses when provided in Qualified Census Tracts (QCTs), low-income areas designated by HUD; to families in QCTs; or by Tribal governments. Outside of these areas, recipient governments can also identify and serve households, populations, and geographic areas disproportionately impacted by the pandemic. Services under this category could include: 23 AS OF JANUARY 2022 Programs or services that address or mitigate the impacts of the COVID-19 public health emergency on education, childhood health and welfare, including: o Summer education and enrichment programs in these communities, which include many communities currently struggling with high levels of violence; o Programs that address learning loss and keep students productively engaged; o Enhanced services for foster youths and home visiting programs; and o Summer camps and recreation. Programs or services that provide or facilitate access to health and social services and address health disparities exacerbated by the pandemic. This includes Community Violence Intervention (CVI programs, such as: o Evidence-based practices like focused deterrence, street outreach, violence interrupters, and hospital-based violence intervention models, complete with wraparound services such as behavioral therapy, trauma recovery, job training, education, housing and relocation services, and financial assistance; and, o Capacity-building efforts at CVI programs like funding more intervention workers; increasing their pay; providing training and professional development for intervention workers; and hiring and training workers to administer the programs, Please refer to Treasurys Interim Final Rule for additional information. 4.9. 4.10. May recipients pool funds for regional projects? [7/14] Yes, provided that the project is itself an eligible use of finds and that recipients can track the use of funds in line with the reporting and compliance requirements of the CSFRF/CLFRE. In general, when pooling funds for regional projects, recipients may expend funds directly on the project or transfer funds to another government that is undertaking the project on behalf of multiple recipients. To the extent recipients undertake regional projects via transfer to another government, recipients would need to comply with the rules on transfers specified in the Interim Final Rule, Section V. A recipient may transfer funds to a government outside its boundaries (e.g., county transfers to a neighboring county), provided that the recipient can document that its jurisdiction receives a benefit proportionate to the amount contributed. May recipients fund a project with both ARP funds and other sources of funding (e.g., blending, braiding, or other pairing funding sources), including in conjunction with financing provided through a debt issuance? [7/14] Cost sharing or matching funds are not required under CSFRF/CLFRF. Funds may be used in conjunction with other funding sources, provided that the costs are eligible costs under each source program and are compliant with all other related statutory and regulatory requirements and policies. The recipient must comply with applicable reporting requirements for all sources of funds supporting the CSFRF/CLFRF projects, and with any requirements and restrictions on the use of funds from the supplemental funding sources and the CSFRF/CLFRF program. Specifically, 24 AS OF JANUARY 2022 e All funds provided under the CSFRF/CLFRF program must be used for projects, investments, or services that are eligible under the CSFRF/CLFREF statute, Treasurys Interim Final Rule, and guidance. See 31 CFR 35.6-8; FAQ 4.6. CSFRF/CLFRE funds may not be used to fund an activity that is not, in its entirety, an eligible use under the CSFRF/CLFRE statute, Treasurys Interim Final Rule, and guidance. For example, o CSFRF/CLFRF funds may be used in conjunction with other sources of funds to make an investment in water infrastructure, which is eligible under the CSLFRF statute, and Treasurys Interim Final Rule. o CSFRF/CLFRF funds could not be used to fund the entirety of a water infrastructure project that was partially, although not entirely, an eligible use under Treasurys Interim Final Rule. However, the recipient could use CSFRF/CLFRE funds only for a smaller component project that does constitute an eligible use, while using other funds for the remaining | portions of the larger planned water infrastructure project that do not | constitute an eligible use. In this case, the project under this program would be only the eligible use component of the larger project. e Inaddition, because CSFRF/CLFRF funds must be obligated by December 31, 2024, and expended by December 31, 2026, recipients must be able to, at a minimum, determine and report to Treasury on the amount of CSFRF/CLFRF funds obligated and expended and when such funds were obligated and expended. 4.11. May Coronavirus State and Local Fiscal Recovery Funds be used to make loans or other extensions of credit (loans), including loans to small businesses and loans to finance necessary investments in water, sewer, and broadband infrastructure? [7/14] Yes. Coronavirus State and Local Fiscal Recovery Funds (Funds) may be used to make loans, provided that the loan is an eligible use and the cost of the loan is tracked and reported in accordance with the points below. See 31 CFR 35.6. For example, a recipient may use Coronavirus State and Local Fiscal Recovery Funds to make loans to small businesses. See 31 CFR 35.6(b)(6). In addition, a recipient may use Funds to finance a necessary investment in water, sewer or broadband, as described in the Interim Final Rule. See 31 CFR 35.6(e). Funds must be used to cover costs incurred by the recipient between March 3, 2021, and December 31, 2024, and Funds must be expended by December 31, 2026. See Section IIL.D of the Interim Final Rule; 31 CFR 35.5. Accordingly, recipients must be able to determine the amount of Funds used to make a loan. e For loans that mature or are forgiven on or before December 31, 2026, the recipient must account for the use of finds on a cash flow basis, consistent with the approach to loans taken in the Coronavirus Relief Fund. 25 4.12. AS OF JANUARY 2022 Recipients may use Fiscal Recovery Funds to fund the principal of the loan and in that case must track repayment of principal and interest (i.e., program income, as defined under 2 CFR 200). o When the loan is made, recipients must report the principal of the loan as an expense. Repayment of principal may be re-used only for eligible uses, and subject to restrictions on timing of use of funds. Interest payments received prior to the end of the period of performance will be considered an addition to the total award and may be used for any purpose that is an eligible use of funds under the statute and IFR. Recipients are not subject to restrictions under 2 CFR 200.307(e)(1) with respect to such payments. e For loans with maturities longer than December 31, 2026, the recipient may use Fiscal Recovery Funds for only the projected cost of the loan. Recipients may estimate the subsidy cost of the loan, which equals the expected cash flows associated with the loan discounted at the recipients cost of funding. A recipients cost of funding can be determined based on the interest rates of securities with a similar maturity to the cash flow being discounted that were either (i) recently issued by the recipient or (ii) recently issued by a unit of state, local, or Tribal government similar to the recipient. Recipients that have adopted the Current Expected Credit Loss (CECL) standard may also treat the cost of the loan as equal to the CECL-based expected credit losses over the life of the loan. Recipients may measure projected losses either once, at the time the loan is extended, or annually over the covered period. Under either approach for measuring the amount of funds used to make loans with maturities longer than December 31, 2026, recipients would not be subject to restrictions under 2 CFR 200.307(e)(1) and need not separately track repayment of principal or interest. Any contribution of Fiscal Recovery Funds to a revolving loan fund must follow the approach described above for loans with maturities longer than December 31, 2026. In other words, a recipient could contribute Fiscal Recovery Funds to a revolving loan fund, provided that the revolving loan fund makes loans that are eligible uses and the Fiscal Recovery Funds contributed represent the projected cost of loans made over the life of the revolving loan fund. May funds be used for outreach to increase uptake of federal assistance like the Child Tax Credit or federal programs like SNAP? [7/14] Yes. Eligible uses to address negative economic impacts include work to improve efficacy of programs addressing negative economic impacts, including through use of data analysis, targeted consumer outreach, improvements to data or technology infrastructure, and impact evaluations. See 31 CFR 35.6(b)(10). Of note, per the CSFRF/CLFRF Reporting Guidance, allowable use of funds for evaluations may also include other types of program evaluations focused on program improvement and 26 AS OF JANUARY 2022 evidence building. In addition, recipients may use funds to facilitate access to health and social services in populations and communities disproportionately impacted by the COVID-19 pandemic, including benefits navigators or marketing efforts to increase consumer uptake of federal tax credits, benefits, or assistance programs that respond to negative economic impacts of the pandemic. See 31 CFR 35.6(b)(12). 5. Eligible Uses - Premium Pay 5.1. 5.2. 5.3. What criteria should recipients use in identifying essential workers to receive premium pay? Essential workers are those in critical infrastructure sectors who regularly perform in- person work, interact with others at work, or physically handle items handled by others. Critical infrastructure sectors include healthcare, education and childcare, transportation, sanitation, grocery and food production, and public health and safety, among others, as provided in the Interim Final Rule. Governments receiving Fiscal Recovery Funds have the discretion to add additional sectors to this list, so long as the sectors are considered critical to protect the health and well-being of residents. The Interim Final Rule emphasizes the need for recipients to prioritize premium pay for lower income workers. Premium pay that would increase a workers total pay above 150% of the greater of the state or county average annual wage requires specific justification for how it responds to the needs of these workers. What criteria should recipients use in identifying third-party employers to receive grants for the purpose of providing premium pay to essential workers? Any third-party employers of essential workers are eligible. Third-party contractors who employ essential workers in eligible sectors are also eligible for grants to provide premium pay. Selection of third-party employers and contractors who receive grants is at the discretion of recipients. To ensure any grants respond to the needs of essential workers and are made in a fair and transparent manner, the rule imposes some additional reporting requirements for grants to third-party employers, including the public disclosure of grants provided. May recipients provide premium pay retroactively for work already performed? Yes. Treasury encourages recipients to consider providing premium pay retroactively for work performed during the pandemic, recognizing that many essential workers have not yet received additional compensation for their service during the pandemic. 6. Eligible Uses - Water, Sewer, and Broadband Infrastructure 27 6.1. 6.2. 6.3. 6.4, AS OF JANUARY 2022 What types of water and sewer projects are eligible uses of funds? The Interim Final Rule generally aligns eligible uses of the Funds with the wide range of types or categories of projects that would be eligible to receive financial assistance through the Environmental Protection Agencys Clean Water State Revolving Fund (CWSRF) or Drinking Water State Revolving Fund (DWSRF). Under the DWSRE, categories of eligible projects include: treatment, transmission and distribution (including lead service line replacement), source rehabilitation and decontamination, storage, consolidation, and new systems development. Under the CWSRE, categories of eligible projects include: construction of publicly- owned treatment works, nonpoint source pollution management, national estuary program projects, decentralized wastewater treatment systems, stormwater systems, water conservation, efficiency, and reuse measures, watershed pilot projects, energy efficiency measures for publicly-owned treatment works, water reuse projects, security measures at publicly-owned treatment works, and technical assistance to ensure compliance with the Clean Water Act. As mentioned in the Interim Final Rule, eligible projects under the DWSRF and CWSRF support efforts to address climate change, as well as to meet cybersecurity needs to protect water and sewer infrastructure. Given the lifelong impacts of lead exposure for children, and the widespread nature of lead service lines, Treasury also encourages recipients to consider projects to replace lead service lines. May construction on eligible water, sewer, or broadband infrastructure projects continue past December 31, 2024, assuming funds have been obligated prior to that date? Yes, Treasury is interpreting the requirement that costs be incurred by December 31, 2024 to only require that recipients have obligated the funds by such date. The period of performance will run until December 31, 2026, which will provide recipients a reasonable amount of time to complete projects funded with Fiscal Recovery Funds. May recipients use funds as a non-federal match for the Clean Water State Revolving Fund (CWSRF) or Drinking Water State Revolving Fund (DWSRF)? Recipients may not use funds as a state match for the CWSRF and DWSRF due to prohibitions in utilizing federal funds as a state match in the authorizing statutes and regulations of the CWSRF and DWSRF. Does the National Environmental Policy Act (NEPA) apply to eligible infrastructure projects? 28 6.5. 6.6. AS OF JANUARY 2022 NEPA does not apply to Treasurys administration of t...