Coronavirus State and Local Fiscal Recovery Funds, Interim final rule (Federal Register Vol. 88, No. 222, November 20, 2023)
Summary
The Department of the Treasury's interim final rule in the Federal Register of Monday, November 20, 2023 (Vol. 88, No. 222) amends the definition of 'obligation' in its regulations for the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, 31 CFR Part 35. It follows changes made by the Consolidated Appropriations Act, 2023 (2023 CAA) and is meant to provide additional flexibility to recipients. The rule is effective November 20, 2023, and comments must be received on or before December 20, 2023. It is signed by Jessica A. Milano, Chief Recovery Officer, Office of Recovery Programs. The same pages also print unrelated items, including an FAA airworthiness directive, an IRS correction and a Coast Guard safety zone.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
80584 Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations
(a) Effective Date (j) Additional Information who control a supported organization
This airworthiness directive (AD) is For more information about this AD, and on certain other requirements for
effective December 26, 2023. contact Sungmo Cho, Aviation Safety Type III supporting organizations. The
Engineer, FAA, 2200 South 216th Street, Des regulations reflect changes to the law
(b) Affected ADs Moines, WA 98198; phone: (781) 238–7241; made by the Pension Protection Act of
This AD replaces AD 2020–15–07, email: Sungmo.D.Cho@faa.gov. 2006.
Amendment 39–21170 (85 FR 43682, July 20,
(k) Material Incorporated by Reference DATES: This correction is effective on
2020).
(1) The Director of the Federal Register November 20, 2023.
(c) Applicability approved the incorporation by reference of FOR FURTHER INFORMATION CONTACT:
This AD applies to Rolls-Royce the service information listed in this Michael Gruccio at (202) 317–4541 (not
Deutschland Ltd & Co. KG (RRD) Model paragraph under 5 U.S.C. 552(a) and 1 CFR a toll-free number), or Don Spellman at
RB211–524G2–19, RB211–524G2–T–19, part 51. (202) 317–4086 (not a toll-free number).
RB211–524G3–19, RB211–524G3–T–19, (2) You must use this service information
as applicable to do the actions required by SUPPLEMENTARY INFORMATION:
RB211–524H2–19, RB211–524H2–T–19,
RB211–524H–36, and RB211–524H–T–36 this AD, unless the AD specifies otherwise. Background
engines. (i) European Union Aviation Safety Agency
(EASA) AD 2022–0237, dated December 2, The final regulations (TD 9981) that
(d) Subject 2022. are the subject of this correction are
Joint Aircraft System Component (JASC) (ii) [Reserved] under section 509(a) of the Code.
Code 7250, Turbine Section. (3) For EASA AD 2022–0237, contact
EASA, Konrad-Adenauer-Ufer 3, 50668 Corrections to Publication
(e) Unsafe Condition Cologne, Germany; phone: +49 221 8999 000; Accordingly, the final regulations (TD
This AD was prompted by an updated email: ADs@easa.europa.eu; 9981) that are the subject of FR Doc.
analysis by the engine manufacturer, which website:easa.europa.eu. You may find this 2023–22286, published on October 16,
indicates certain part-numbered and serial- EASA AD on the EASA website at
ad.easa.europa.eu.
2023, are corrected on page 71298, in
numbered low-pressure turbine (LPT) stage 1
(4) You may view this service information the first column, the sixth through
disks that have undergone rework could fail
before the current published life limits. The at FAA, Airworthiness Products Section, eighth lines under the heading
FAA is issuing this AD to prevent failure of Operational Safety Branch, 1200 District ‘‘Statement of Availability of IRS
the LPT stage 1 disk. The unsafe condition, Avenue, Burlington, MA 01803. For Documents’’ are corrected to read
if not addressed, could result in uncontained information on the availability of this ‘‘visiting the IRS website at: https://
release of high-energy debris from the engine, material at the FAA, call (817) 222–5110. www.irs.gov/irb/2014-02_IRB#NOT-
in-flight shutdown of the engine, damage to (5) You may view this material at the 2014-4’’.
the engine, and damage to the airplane. National Archives and Records
Administration (NARA). For information on Oluwafunmilayo A. Taylor,
(f) Compliance the availability of this material at NARA, Section Chief, Publications & Regulations
Comply with this AD within the visit www.archives.gov/federal-register/cfr/ Branch, Associate Chief Counsel (Procedure
compliance times specified, unless already ibr-locations or email fr.inspection@nara.gov. and Administration).
done. Issued on October 25, 2023. [FR Doc. 2023–25510 Filed 11–17–23; 8:45 am]
(g) Required Actions Caitlin Locke, BILLING CODE 4830–01–P
Except as specified in paragraph (h) of this Director, Compliance & Airworthiness
AD: Perform all required actions within the Division, Aircraft Certification Service.
[FR Doc. 2023–25517 Filed 11–17–23; 8:45 am] DEPARTMENT OF THE TREASURY
compliance times specified in, and in
accordance with, European Union Aviation BILLING CODE 4910–13–P
31 CFR Part 35
Safety Agency (EASA) AD 2022–0237, dated
December 2, 2022 (EASA AD 2022–0237). RIN 1505–AC83
(h) Exceptions to EASA AD 2022–0237 DEPARTMENT OF THE TREASURY
Coronavirus State and Local Fiscal
(1) Where EASA AD 2022–0237 refers to its Recovery Funds
effective date, this AD requires using the
Internal Revenue Service
effective date of this AD. AGENCY: Department of the Treasury.
(2) This AD does not adopt the ‘‘Remarks’’ 26 CFR Parts 1 and 53 ACTION: Interim final rule.
section of EASA AD 2022–0237. [TD 9981]
SUMMARY: The Secretary of the Treasury
(i) Alternative Methods of Compliance is issuing an interim final rule to amend
RIN 1545–BJ23
(AMOCs)
the definition of ‘‘obligation’’ set forth
(1) The Manager, AIR–520, Continued Requirements for Type I and Type III in the Department’s regulations with
Operational Safety Branch, FAA, has the Supporting Organizations; Correction respect to the Coronavirus State Fiscal
authority to approve AMOCs for this AD, if
AGENCY: Internal Revenue Service (IRS),
Recovery Fund and the Coronavirus
requested using the procedures found in 14
CFR 39.19. In accordance with 14 CFR 39.19, Treasury. Local Fiscal Recovery Fund established
send your request to your principal inspector under the American Rescue Plan Act of
ACTION: Final regulations; correction. 2021.
or local Flight Standards District Office, as
appropriate. If sending information directly SUMMARY: This document contains a DATES:
to the manager of the certification office, correction to Treasury Decision 9981, Effective date: The provisions in this
ddrumheller on DSK120RN23PROD with RULES1
send it to the attention of the person which was published in the Federal interim final rule are effective
identified in paragraph (j) of this AD and November 20, 2023.
email to: ANE-AD-AMOC@faa.gov.
Register for Monday, October 16, 2023.
Treasury Decision 9981 issued final Comment date: Comments must be
(2) Before using any approved AMOC, received on or before December 20,
notify your appropriate principal inspector, regulations providing guidance on the
prohibition on certain gifts or 2023.
or lacking a principal inspector, the manager
of the local flight standards district office/ contributions to Type I and Type III ADDRESSES: Please submit comments
certificate holding district office. supporting organizations from persons electronically through the Federal
VerDate Sep<11>2014 16:52 Nov 17, 2023 Jkt 262001 PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 E:\FR\FM\20NOR1.SGM 20NOR1
Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations 80585
eRulemaking Portal at http:// SLFRF program to authorize recipients Treasury implemented the statutory
www.regulations.gov. Comments may be to use funds to satisfy any non-federal requirement by providing that a cost is
mailed to the Office of Recovery match requirement of an authorized considered incurred by December 31,
Programs, Department of the Treasury, Bureau of Reclamation project.5 On 2024, if a recipient has incurred an
1500 Pennsylvania Avenue NW, December 29, 2022, the Consolidated obligation with respect to the cost by
Washington, DC 20220. Because postal Appropriations Act, 2023 (2023 CAA), December 31, 2024.12 Treasury defined
mail may be subject to processing further amended the SLFRF program to ‘‘obligation’’ as ‘‘an order placed for
delays, it is recommended that authorize recipients to use funds to property and services and entering into
comments be submitted electronically. provide emergency relief from natural contracts, subawards, and similar
All comments should be captioned with disasters or their negative economic transactions that require payment,’’ 13
‘‘Coronavirus State and Local Fiscal impacts; to use funds for projects which is based on the definition of
Recovery Funds Obligation Interim eligible under certain Department of ‘‘financial obligations’’ in the Uniform
Final Rule Comments.’’ Please include Transportation programs (Surface Administrative Requirements, Cost
your name, organization affiliation, Transportation projects); and to use Principles, and Audit Requirements for
address, email address, and telephone funds for projects that are eligible under Federal Awards (Uniform Guidance).14
number in your comment. Where Title I of the Housing and Community Treasury then set the period of
appropriate, a comment should include Development Act of 1974 (Title I performance as ending on December 31,
a short executive summary. In general, projects).6 The 2023 CAA also codified 2026, which serves as the deadline for
comments received will be posted at the $10 million ‘‘standard allowance’’ expenditures. Treasury’s approach was
http://www.regulations.gov without under the revenue loss eligible use confirmed by Congress in the
change, including any business or category.7 amendments made to the SLFRF
personal information provided. In May 2021, Treasury published an program in the CAA 2023. In providing
Comments received, including interim final rule (2021 IFR) that authority for recipients to use SLFRF
attachments and other supporting implemented the SLFRF program as funds for the new eligible use
materials, will be part of the public established by the ARPA.8 In January categories, Congress expressly provided
record and subject to public disclosure. 2022, Treasury published a final rule for the same framework of separate
Do not enclose any information in your (2022 final rule), which responded to obligation and expenditure deadlines as
comment or supporting materials that comments received on the 2021 IFR, is provided for in Treasury’s SLFRF
you consider confidential or made several clarifications to the 2021 award terms and conditions and rule.
inappropriate for public disclosure. IFR, and took effect on April 1, 2022.9 Specifically, the CAA 2023 amendments
FOR FURTHER INFORMATION CONTACT: In September 2023, Treasury published provided that funds may be obligated
Jessica Milano, Chief Recovery Officer, an additional interim final rule (2023 for Surface Transportation projects and
Office of Recovery Programs, IFR) to implement the changes made to Title I projects until December 31, 2024,
Department of the Treasury, (844) 529– the SLFRF program by the 2023 CAA.10 and must be expended by September 30,
9527. The 2023 IFR generally did not change 2026.
SUPPLEMENTARY INFORMATION: the eligible uses discussed in the 2022
final rule. II. Revision to the Definition of
I. Background Sections 602 and 603 of the Social Obligation in 31 CFR 35.3 and Related
On March 11, 2021, the American Security Act provide that SLFRF funds Guidance Updates
Rescue Plan Act of 2021 (ARPA) was may only be used to cover costs Treasury is amending the definition of
signed into law.1 The ARPA amended incurred by December 31, 2024.11 The ‘‘obligation’’ to provide additional
Title VI of the Social Security Act to add term ‘‘cost incurred’’ does not have a flexibility to recipients, providing
sections 602 and 603, which established precise meaning in this context. One clarification regarding the application of
the State and Local Fiscal Recovery approach to implementing this the obligation deadline to subrecipients,
Funds (SLFRF).2 The SLFRF program requirement might have been to have set and providing guidance regarding the
provides support to State, local, December 31, 2024, as the end of the amendment and replacement of
territorial, and Tribal governments period of performance for SLFRF contracts and subawards. Additional
(together, recipients) to mitigate the awards. However, Congress expressly guidance from Treasury regarding
fiscal effects of the COVID–19 public provided for water, sewer, and
health emergency.3 As enacted in 2021, broadband projects as eligible uses of 12 31 CFR 35.5(b). Typically, financial obligations
the SLFRF. If Treasury had set the end incurred under a federal award must be liquidated
recipients are authorized to use SLFRF no later than 120 calendar days after the end date
award funds to respond to the COVID– of period of performance as December of the period of performance specified in the terms
19 public health emergency or its 31, 2024, such that recipients would and conditions of the award. This expenditure
negative economic impacts; to provide have had to not only obligate funds but period exists to allow recipients time to receive
complete expenditures by that date, it goods ordered and make final payments. See 2 CFR
premium pay to essential workers; to 200.344.
provide government services to the would have been very difficult for 13 31 CFR 35.3.
extent of a reduction in a recipient’s recipients to engage in significant water, 14 2 CFR 200.1 (defining ‘‘financial obligation,’’
revenue due to the COVID–19 public sewer, and broadband projects. Instead, when referencing a recipient’s or subrecipient’s use
health emergency; or to make necessary of funds under a Federal award, as orders placed
5 Section 40909, Public Law 117–58, 135 Stat. 429 for property and services, contracts and subawards
investments in water, sewer, or made, and similar transactions that require
(Nov. 15, 2021).
broadband infrastructure.4 On payment). This definition aligns with a plain
ddrumheller on DSK120RN23PROD with RULES1
6 See section 102 of Division LL of Public Law
November 15, 2021, the Infrastructure 117–328, 136 Stat. 4459 (Dec. 29, 2022). language understanding of ‘‘incur’’ as meaning to
Investment and Jobs Act amended the 7 See id. become liable or subject to something. See, e.g.,
8 86 FR 26786 (May 17, 2021).
Webster’s Third Int’l Dictionary (1961) (‘‘to become
1 Public Law 117–2 (Mar. 11, 2021).
liable or subject to: bring down upon oneself’’);
9 87 FR 4338 (Jan. 27, 2022).
Black’s Law Dictionary, 11th ed. 2019 (‘‘to suffer or
2 See section 9901 of the ARPA, codified at 42 10 88 FR 64986 (Sept. 20, 2023).
bring on oneself (a liability or expense)’’); American
U.S.C. 802 and 803. 11 42 U.S.C. 802(c)(1), 803(c)(1). A recipient must Heritage Dictionary (5th ed. 2022) (‘‘to become
3 See id. Sec. 802(a)(1), 803(a).
return any funds not obligated by December 31, liable or subject to as a result of one’s actions; bring
4 See id. Sec. 802(c)(1), 803(c)(1). 2024. 31 CFR 35.5(c). upon oneself’’).
VerDate Sep<11>2014 16:15 Nov 17, 2023 Jkt 262001 PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 E:\FR\FM\20NOR1.SGM 20NOR1
80586 Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations
closeout and specific deadlines by Such expenditures include the Guidance. Other than such closeout
which recipients must return funds not following: expenditures, recipients must expend
obligated or expended will be • Reporting and compliance all SLFRF funds by the end of the
forthcoming. requirements: Funds expended to period of performance regardless of
comply with SLFRF reporting and whether they continue to have expenses
Amendment to the Definition of compliance requirements, including in
‘‘Obligation’’ of the type outlined above after that
connection with the preparation and date. A recipient’s estimate of the
Recipients have identified for submission of recipients’ required amount that it expects to expend must
Treasury that they anticipate difficulty reports, review of subaward reports or be reasonable, based on the
using SLFRF funds to satisfy subrecipient monitoring generally, considerations listed at 2 CFR 200.404.
administrative and other legal maintenance of data and reporting tools,
requirements applicable to the SLFRF If a recipient’s estimate exceeds what is
and review and processing of invoices.
program after the obligation deadline • Single Audit costs: Funds expended ultimately expended, the recipient must
has passed. The expenses associated for the conduct of audits required by the return the excess funds to Treasury.
with these requirements include payroll Single Audit Act, including on audit Treasury will update the SLFRF
and benefits of personnel responsible costs, on preparation for such audits, Compliance and Reporting Guidance to
for compliance and reporting and and on audit resolution, including funds reflect the additional reporting
expenses of maintaining records. spent by pass-through entities to carry requirements.
Recipients will not have incurred an out their responsibilities related to audit In response to suggestions from
obligation to make many of these types resolution of subawards. recipients, Treasury considered whether
of expenditures prior to the obligation • Record retention and internal ‘‘costs incurred’’ could be defined by
deadline. For example, Treasury control requirements: Expenditures to reference to a standard other than
understands that recipient personnel comply with records retention ‘‘obligation.’’ However, for the reasons
costs are typically obligated with requirements and other expenditures discussed above, the revised definition
respect to one pay period at a time necessary to ensure program integrity of ‘‘obligation’’ provides the best and
because recipient personnel generally through the closeout of the award. most reasonable interpretation of the
are not subject to long-term employment • Property standards: Expenditures
statutory requirement for recipients to
contracts. As such, expenses of on insurance, inventory and other
incur costs by December 31, 2024. For
personnel needed to comply with recordkeeping requirements, and
maintenance of equipment and other example, some recipients recommended
administrative and other legal
requirements between the obligation expenditures made to comply with the that Treasury revise the rule to define
deadline and the end of the period of property standards of the Uniform ‘‘costs incurred’’ by reference to
performance could not be paid for using Guidance (2 CFR 200.310–200.316). recipient appropriation, budget, or
SLFRF funds (or at least, not after the • Environmental compliance allocation processes. This approach
end of the last pay period that begins requirements: Expenditures to comply would not provide a standard that could
prior to the obligation deadline). To the with environmental requirements, be applied consistently across
extent that recipients have been including to obtain environmental recipients. Further, as noted above,
covering such expenses and other permit renewals. Congress, in the amendments made by
related administrative expenses under • Civil rights and nondiscrimination the 2023 CAA with respect to the SLFRF
their current negotiated indirect costs requirements: Expenditures related to program, has confirmed the definition of
rate agreement established with their comply with civil rights and ‘‘costs incurred’’ by reference to the
federal cognizant agency or using the de nondiscrimination requirements, obligation of funds. The 2023 CAA was
minimis rate of 10 percent of modified including the investigation of more specific than the ARPA, providing
total direct costs pursuant to 2 CFR complaints arising from SLFRF-funded that SLFRF funds ‘‘shall remain
200.414(f), they may continue to do so, projects. available for obligation’’ for Surface
and this interim final rule will also In each case, these would include Transportation projects and Title I
provide recipients with an additional costs, calculated in compliance with the projects until December 31, 2024, and
way to cover such costs when they are rules for compensation charged to that funds obligated for such uses must
charged directly. federal awards set out at 2 CFR 200.430, be expended by September 30, 2026.
In this interim final rule, Treasury is of recipient personnel whose time is
amending the definition of ‘‘obligation’’ Treasury is also amending the
required to comply with these
previously adopted at 31 CFR 35.3 in requirements. provision of the rule requiring
response to recipients’ concerns. Under To take advantage of this additional repayment of amounts not obligated and
the revised definition, an ‘‘obligation’’ flexibility, recipients must (1) determine expended by the applicable deadlines to
continues to include an order placed for the amount of SLFRF funds the align with the amendment to the
property and services and entry into recipient estimates it will use to cover definition of ‘‘obligation.’’ Pursuant to
contracts, subawards, and similar such expenditures, (2) document a the amended definition, recipients must
transactions that require payment. reasonable justification for this estimate, still return to Treasury any SLFRF funds
However, under the revised definition, (3) report that amount to Treasury by not obligated by December 31, 2024,
a recipient is also considered to have April 30, 2024, with an explanation of pursuant to entry into a contract or
incurred an obligation by December 31, how the amount was determined, and subaward, but need not at that time pay
2024, with respect to a requirement (4) report at award closeout the final back the amounts they previously
ddrumheller on DSK120RN23PROD with RULES1
under federal law or regulation or a amount expended for these costs. reported to Treasury as estimates of the
provision of the SLFRF award terms and Recipients may not include within this amounts that they will use during the
conditions to which the recipient estimate any expenditure that will be remainder of the period of performance
becomes subject as a result of receiving made after December 31, 2026, other to comply with legal requirements;
or expending SLFRF funds. A recipient than administrative expenditures recipients will be required to repay after
may use the SLFRF funds to cover the necessary to close out the SLFRF award December 31, 2026, any part of the
cost of meeting such a requirement. in accordance with the Uniform estimated amount that is not expended.
VerDate Sep<11>2014 16:15 Nov 17, 2023 Jkt 262001 PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 E:\FR\FM\20NOR1.SGM 20NOR1
Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations 80587
Application of Obligation Deadline to subaward entered into prior to rule, and in particular, responses to the
Subrecipients December 31, 2024, if: following question: What are the
(1) the recipient terminates the advantages and disadvantages of the
Recipients have asked whether the contract or subaward because of the change made by this interim final rule
December 31, 2024, obligation deadline contractor or subawardee’s default, to the definition of ‘‘obligation’’?
applies to subrecipients. Treasury is because the contractor or subawardee This interim final rule is being issued
clarifying that subrecipients are not goes out of business, or because the without advance notice and public
subject to this deadline. As stated in the recipient otherwise determines that the comment to allow for immediate
SLFRF rule and as referenced above, contractor or subawardee will not be implementation of the amendment to
Treasury defined obligation to include able to perform under the contract or the definition of ‘‘obligation’’ at 31 CFR
entry into a subaward. A cost is carry out the subaward; or 35.3. Immediate implementation of this
considered to have been incurred once (2) the recipient and contractor or amendment will enable recipients to
a recipient enters into a subaward that subrecipient mutually agree to terminate complete their internal budgeting
obligates the recipient to cover that cost. the contract or subaward for processes in time to meet the statutory
Once a recipient has obligated funds, convenience; 16 or deadline to incur costs by December 31,
the requirement in the statute and (3) the recipient terminates the 2024. As discussed below, the
Treasury’s rule to obligate funds by contract or subaward for convenience if requirements of advance notice and
December 31, 2024, has been satisfied, the contract or subaward was not public comment do not apply ‘‘to the
such that subrecipients need not properly awarded (such as if the extent that there is involved . . . a
themselves also obligate funds received contractor was not eligible to receive the matter relating to agency . . . grants.’’
under a subaward by December 31, contract), there is clear evidence that the This interim final rule revises the
2024. (Contractors also do not need to contract or subaward was improper, the standard pursuant to which recipients
obligate funds received under a contract recipient documents its determination satisfy the statutory requirement to
by December 31, 2024.) It remains the that the contract or subaward was not incur costs for eligible uses of SLFRF
case that all SLFRF award funds must properly awarded, and the original funds by December 31, 2024. In addition
be expended by the recipient and any contract or subaward was entered into and as discussed below, the
subrecipients by 2026, given the by the recipient in good faith. Administrative Procedure Act provides
termination of the period of A contract will be considered made in
an exception to ordinary notice-and-
performance on December 31, 2026. In good faith for purposes of clause (3)
comment procedures ‘‘when the agency
the case of funds used for Title I projects above if the parties followed standard
for good cause finds (and incorporates
and Surface Transportation projects, all procurement or subaward practices, as
the finding and a brief statement of
funds must be expended by September applicable, and the contract or
subaward was not entered into for the reasons therefor in the rules issued) that
30, 2026. Further, as the provisions of notice and public procedure thereon are
the Uniform Guidance are generally purpose of evading the obligation
deadline. A recipient that re-obligates impracticable, unnecessary, or contrary
applicable to the SLFRF program, to the public interest.’’ This good cause
recipients must comply with the funds to a new contractor or
subrecipient after the obligation justification also supports waiver of the
Uniform Guidance provisions regarding 60-day delayed effective date for major
the timing of payment to subrecipients deadline will be considered to have
used its funds to cover an obligation rules under the Congressional Review
as provided in 2 CFR 200.305. Act at 5 U.S.C. 808(2). Although this
incurred prior to the obligation deadline
Amendment and Replacement of if any of the three situations above is interim final rule is effective
Contracts and Subawards present and if the original contract or immediately, comments are solicited
subaward being replaced was entered from interested members of the public
Recipients have asked to what extent and from recipient governments on all
into by December 31, 2024.
they may, after December 31, 2024, If a recipient enters into a aspects of this interim final rule. These
amend or replace contracts and replacement contract or subaward, the comments must be received on or before
subawards entered into prior to that recipient still must expend all funds by December 20, 2023.
date. In general, recipients may not re- the expenditure deadline. Treasury will
obligate funds or obligate additional IV. Regulatory Analyses
update the SLFRF Compliance and
funds after the obligation deadline Reporting Guidance to provide a means Executive Order 12866
because to do so would violate the for recipients to report any contract or This interim final rule is not a
statutory deadline by which costs must subaward replacements after the ‘‘significant regulatory action’’ under
be incurred. For example, if a contractor December 31, 2024, obligation deadline. section 3(f) of Executive Order 12866, as
requests an unexpected change order Recipients should maintain amended.
due to a cost increase that requires a documentation to justify their
contract amendment after December 31, determinations, which should include Executive Order 13132
2024, the recipient would not be an analysis of the factors discussed Executive Order 13132 (entitled
permitted to obligate additional SLFRF above. Treasury may ask recipients to Federalism) prohibits an agency from
funds to the project because the provide this information in their publishing any rule that has federalism
December 31, 2024, obligation deadline periodic reports. implications if the rule either imposes
would have passed and the recipient substantial, direct compliance costs on
would be required to return to Treasury III. Public Comments and Effective Date
state, local, and Tribal governments, and
ddrumheller on DSK120RN23PROD with RULES1
any funds that had not been obligated Treasury is seeking comment from is not required by statute, or preempts
by that date.15 recipients regarding this interim final state law, unless the agency meets the
Treasury is clarifying that after consultation and funding requirements
December 31, 2024, recipients are 16 Note that the Uniform Guidance provides that
of section 6 of the Executive Order. This
permitted to replace a contract or ‘‘all contracts in excess of $10,000 must address
termination for cause and for convenience by the
interim final rule does not have
non-Federal entity.’’ See Appendix II.(B) to 2 CFR federalism implications within the
15 See 31 CFR 35.5(c). part 200. meaning of the Executive Order and
VerDate Sep<11>2014 16:15 Nov 17, 2023 Jkt 262001 PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 E:\FR\FM\20NOR1.SGM 20NOR1
80588 Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations
does not impose substantial, direct the grant program,’’ Center for Auto understands that many recipients
compliance costs on state, local, Safety v. Tiemann, 414 F. Supp. 215, require immediate rules on which they
territorial, and Tribal governments or 222 (D.D.C. 1976). As a result, the can rely, especially in light of the
preempt state law within the meaning of requirements of 5 U.S.C. 553 do not approaching obligation deadline. This
the Executive Order. The compliance apply. statutory urgency and practical
costs are imposed on state, local, The APA also provides an exception necessity are good cause to forego the
territorial, and Tribal governments by to ordinary notice-and-comment ordinary requirements of notice-and-
sections 602 and 603 of the Social procedures ‘‘when the agency for good comment rulemaking.
Security Act. Pursuant to the cause finds (and incorporates the
requirements set forth in section 8(a) of finding and a brief statement of reasons Congressional Review Act
Executive Order 13132, Treasury therefor in the rules issued) that notice
This rule is not a major rule for
certifies that it has complied with the and public procedure thereon are
purposes of the Congressional Review
requirements of Executive Order 13132. impracticable, unnecessary, or contrary
Act (5 U.S.C. 801 et seq.).
to the public interest.’’ 5 U.S.C.
Administrative Procedure Act 553(b)(3)(B); see also 5 U.S.C. 553(d)(3) Paperwork Reduction Act
The Administrative Procedure Act (creating an exception to the
(APA), 5 U.S.C. 551 et seq., generally requirement of a 30-day delay before the The information collections
requires public notice and an effective date of a rule ‘‘for good cause associated with the SLFRF program
opportunity for comment before a rule found and published with the rule’’). have been reviewed and approved by
becomes effective. However, the APA Assuming 5 U.S.C. 553 applied, OMB pursuant to the Paperwork
provides that the requirements of 5 Treasury would still have good cause Reduction Act (44 U.S.C. Chapter 35)
U.S.C. 553 do not apply ‘‘to the extent under sections 553(b)(3)(B) and (PRA) and assigned control number
that there is involved . . . a matter 553(d)(3) for not undertaking section 1505–0271. Under the PRA, an agency
relating to agency . . . grants.’’ This 553’s requirements. As discussed above, may not conduct or sponsor, and a
interim final rule implements statutory Congress authorizes recipients to use respondent is not required to respond
conditions on recipients’ eligible uses of SLFRF funds for costs incurred for to, an information collection unless it
their SLFRF award funds. The rule is eligible purposes by December 31, 2024. displays a valid OMB control number.
thus ‘‘both clearly and directly related Given the rapidly approaching deadline, This interim final rule is not altering the
to a federal grant program.’’ National there is an urgent need for recipients to previously approved information
Wildlife Federation v. Snow, 561 F.2d undertake the planning necessary for collections for the SLFRF program. The
227, 232 (D.C. Cir. 1976). The rule sets sound fiscal policymaking, which table below includes the estimates of
forth the ‘‘process necessary to maintain requires clarity on how SLFRF funds hourly burden under this program that
state . . . eligibility for federal funds,’’ will augment and interact with existing have been approved in previously
id., as well as other ‘‘integral part[s] of budgetary resources. Treasury approved information collections.
Cost to
Number
Number Total Total burden respondents
Reporting responses per Hours per response
respondents responses in hours ($48.80 per
respondent hour *)
Recipient Payment Form ................................................ 5,050 1 5,050 .25 (15 minutes) ...... 1,262.5 $61,610
Acceptance of Award Terms ........................................... 5,050 1 5,050 .25 (15 minutes) ...... 1,262.5 61,610
Title VI Assurances ......................................................... 5,050 1 5,050 .50 (30 minutes) ...... 2,525 123,220
Tribal Employment Information Form ............................. 584 1 584 .75 (45 minutes) ...... 438 21,374
Request for Extension Form ........................................... 96 1 96 1 .............................. 96 4,685
Annual Recovery Plan Performance Report ................... 430 1 430 100 .......................... 43,000 2,098,400
NEU Distribution Template ............................................. 55 2 110 10 ............................ 1,100 53,680
Non-UGLG Distribution Template ................................... 55 2 110 5 .............................. 550 26,840
Transfer Forms ................................................................ 1,500 1 1,500 1 .............................. 1,500 73,200
NEU Agreements and Supporting Documentation ......... 26,000 1 26,000 .5 ............................. 13,000 634,400
Project and Expenditure Report (quarterly) .................... 2,000 4 8,000 6 .............................. 48,000 2,342,400
Project and Expenditure Report (annual) ....................... 29,000 1 29,000 6 .............................. 174,000 8,491,200
Total ......................................................................... 64,770 ........................ 78,880 .................................. 284,209 13,869,339
* Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Accountants and Auditors, on the internet at https://www.bls.gov/ooh/busi-
ness-and-financial/accountants-and-auditors.htm (visited March 28, 2020). Base wage of $33.89/hour increased by 44 percent to account for fully loaded employer
cost of employee compensation (benefits, etc.) for a fully loaded wage rate of $48.80.
Regulatory Flexibility Analysis to conduct a regulatory flexibility Public health emergency, State and
The Regulatory Flexibility Act (RFA) analysis, when among other things the Local Governments, Transportation,
generally requires that when an agency agency for good cause finds that notice Tribal Governments.
issues a proposed rule, or a final rule and public procedure are impracticable,
For the reasons stated in the
pursuant to section 553(b) of the APA or unnecessary, or contrary to the public
preamble, the United States Department
another law, the agency must prepare a interest. Because this rule is exempt
of the Treasury amends 31 CFR part 35
regulatory flexibility analysis that meets from the notice and comment
ddrumheller on DSK120RN23PROD with RULES1
requirements of the APA, Treasury is as set forth below:
the requirements of the RFA and
publish such analysis in the Federal not required to conduct a regulatory
Register. 5 U.S.C. 603, 604. flexibility analysis.
Rules that are exempt from notice and List of Subjects in 31 CFR Part 35
comment under the APA or any other
law are also exempt from the RFA Community development, Disaster
requirements, including the requirement assistance, Executive compensation,
VerDate Sep<11>2014 16:15 Nov 17, 2023 Jkt 262001 PO 00000 Frm 00036 Fmt 4700 Sfmt 4700 E:\FR\FM\20NOR1.SGM 20NOR1
Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations 80589
PART 35—PANDEMIC RELIEF DEPARTMENT OF HOMELAND ‘‘impracticable, unnecessary, or contrary
PROGRAMS SECURITY to the public interest.’’ Under 5 U.S.C.
553(b)(B), the Coast Guard finds that
Subpart A—Coronavirus State and Coast Guard good cause exists for not publishing a
Local Fiscal Recovery Funds notice of proposed rulemaking (NPRM)
33 CFR Part 165 with respect to this rule because the
■ 1. The authority citation for part 35, [Docket Number USCG–2023–0865] event sponsor did not submit notice of
subpart A continues to read as follows: the fireworks display to the Coast Guard
RIN 1625–AA00 with sufficient time remaining before
Authority: 42 U.S.C. 802(f); 42 U.S.C. the event to publish an NPRM. Delaying
803(f); section 102(c) of Division LL of the Safety Zone; Oswego River, Oswego, the effective date of this rule to wait for
Consolidated Appropriations Act, 2023 (Pub. NY a comment period to run would be
L. 117–328).
AGENCY: Coast Guard, DHS. impracticable and contrary to the public
■ 2. Amend § 35.3 by adding a new ACTION: Temporary final rule. interest by inhibiting the Coast Guard’s
sentence at the end of the definition of ability to protect spectators and vessels
SUMMARY: The Coast Guard is from the hazards associated with this
‘‘Obligation’’ to read as follows:
establishing a temporary safety zone for fireworks display.
§ 35.3 Definitions. navigable waters within a 210-foot Under 5 U.S.C. 553(d)(3), the Coast
* * * * * radius of a pedestrian bridge and the Guard finds that good cause exists for
surrounding Oswego River in Oswego, making this rule effective less than 30
Obligation * * * An obligation also NY. The safety zone is needed to protect days after publication in the Federal
means a requirement under federal law personnel, vessels, and the marine Register. For the same reasons
or regulation or provision of the award environment from potential hazards discussed in the preceding paragraph,
terms and conditions to which a created by a fireworks display. Entry of waiting for a 30-day notice period to run
recipient becomes subject as a result of vessels or persons into this zone is would be impracticable and contrary to
receiving or expending funds. prohibited unless specifically the public interest.
* * * * * authorized by the Captain of the Port,
III. Legal Authority and Need for Rule
Sector Buffalo.
■ 3. Revise § 35.5(c) to read as follows: The Coast Guard is issuing this rule
DATES: This rule is effective from 5:15
p.m. through 6:45 p.m. November 25, under authority in 46 U.S.C. 70034
§ 35.5 Use of funds.
2023. (previously 33 U.S.C. 1231). The
* * * * * Captain of the Port (COTP) Buffalo has
ADDRESSES: To view documents
(c) Return of funds. A recipient must determined that fireworks over the
mentioned in this preamble as being water presents significant risks to public
return any funds that have not been available in the docket, go to https://
obligated by December 31, 2024, safety and property. This rule is needed
www.regulations.gov, type USCG–2023– to protect personnel, vessels, and the
pursuant to orders placed for property 0865 in the search box and click
and services or entry into contracts, marine environment in the navigable
‘‘Search.’’ Next, in the Document Type waters within the safety zone while the
subawards, and similar transactions that column, select ‘‘Supporting & Related
require payment other than funds in the fireworks display is taking place.
Material.’’
amount reported to Treasury by April IV. Discussion of the Rule
FOR FURTHER INFORMATION CONTACT: If
30, 2024, as the estimate of funds that you have questions on this rule, call or This rule establishes a safety zone
the recipient will expend to comply email LT William Kelley, Waterways from 5:15 p.m. through 6:45 p.m. on
with a requirement under federal law or Management at Sector Buffalo, U.S. November 25, 2023. The safety zone
regulation or provision of the award Coast Guard; telephone 716–843–9343, will cover all navigable waters within a
terms and conditions to which a email D09-SMB-SECBuffalo-WWM@ 210-foot radius of land launched
recipient becomes subject as a result of uscg.mil. fireworks over the Oswego River in
receiving or expending funds. A Oswego, NY. The duration of the zone
SUPPLEMENTARY INFORMATION:
recipient must return funds obligated is intended to protect spectators,
for a use identified in § 35.6(b) through I. Table of Abbreviations vessels, and the marine environment in
(g) by December 31, 2024, but not CFR Code of Federal Regulations these navigable waters during the
expended by December 31, 2026. A DHS Department of Homeland Security fireworks display. No vessel or person
recipient must return funds obligated FR Federal Register will be permitted to enter the safety
for a use identified in § 35.6(h) by NPRM Notice of proposed rulemaking zone without obtaining permission from
December 31, 2024, but not expended § Section the COTP Buffalo or a designated
U.S.C. United States Code representative.
by September 30, 2026. A recipient
must return funds in the amount II. Background Information and V. Regulatory Analyses
reported to Treasury by April 30, 2024, Regulatory History
We developed this rule after
as referenced above, but not expended The Coast Guard is issuing this considering numerous statutes and
by December 31, 2026, other than temporary rule without prior notice and Executive orders related to rulemaking.
administrative expenses necessary to opportunity to comment pursuant to
ddrumheller on DSK120RN23PROD with RULES1
Below we summarize our analyses
close out the award. authority under section 4(a) of the based on a number of these statutes and
Jessica A. Milano,
Administrative Procedure Act (APA) (5 Executive orders, and we discuss First
U.S.C. 553(b)). This provision Amendment rights of protestors.
Chief Recovery Officer, Office of Recovery
authorizes an agency to issue a rule
Programs. A. Regulatory Planning and Review
without prior notice and opportunity to
[FR Doc. 2023–25067 Filed 11–17–23; 8:45 am]
comment when the agency for good Executive Orders 12866 and 13563
BILLING CODE 4810–AK–P cause finds that those procedures are direct agencies to assess the costs and
VerDate Sep<11>2014 16:15 Nov 17, 2023 Jkt 262001 PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 E:\FR\FM\20NOR1.SGM 20NOR1
File and source
- File
- TreasurySLFRFObligationDefinitionPlusRelatedGuidance.pdf
- Size
- 286,494 bytes
- SHA-256
- a85c5514e3a4637a55d6b1aa2a4e1ca6360940bf9be3f47ba7c38c96cb423012
- Original
- home.treasury.gov