80584 Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations 

(a) Effective Date 

This airworthiness directive (AD) is 

effective December 26, 2023. 

(b) Affected ADs 

This AD replaces AD 2020–15–07, 

Amendment 39–21170 (85 FR 43682, July 20, 

2020). 

(c) Applicability 

This AD applies to Rolls-Royce 

Deutschland Ltd & Co. KG (RRD) Model 

RB211–524G2–19, RB211–524G2–T–19, 

RB211–524G3–19, RB211–524G3–T–19, 

RB211–524H2–19, RB211–524H2–T–19, 

RB211–524H–36, and RB211–524H–T–36 

engines. 

(d) Subject 

Joint Aircraft System Component (JASC) 

Code 7250, Turbine Section. 

(e) Unsafe Condition 

This AD was prompted by an updated 

analysis by the engine manufacturer, which 

indicates certain part-numbered and serialnumbered low-pressure turbine (LPT) stage 1 

disks that have undergone rework could fail 

before the current published life limits. The 

FAA is issuing this AD to prevent failure of 

the LPT stage 1 disk. The unsafe condition, 

if not addressed, could result in uncontained 

release of high-energy debris from the engine, 

in-flight shutdown of the engine, damage to 

the engine, and damage to the airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Required Actions 

Except as specified in paragraph (h) of this 

AD: Perform all required actions within the 

compliance times specified in, and in 

accordance with, European Union Aviation 

Safety Agency (EASA) AD 2022–0237, dated 

December 2, 2022 (EASA AD 2022–0237). 

(h) Exceptions to EASA AD 2022–0237 

(1) Where EASA AD 2022–0237 refers to its 

effective date, this AD requires using the 

effective date of this AD. 

(2) This AD does not adopt the ‘‘Remarks’’ 

section of EASA AD 2022–0237. 

(i) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, AIR–520, Continued 

Operational Safety Branch, FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the certification office, 

send it to the attention of the person 

identified in paragraph (j) of this AD and 

email to: ANE-AD-AMOC@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(j) Additional Information 

For more information about this AD, 

contact Sungmo Cho, Aviation Safety 

Engineer, FAA, 2200 South 216th Street, Des 

Moines, WA 98198; phone: (781) 238–7241; 

email: Sungmo.D.Cho@faa.gov. 

(k) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference of 

the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) European Union Aviation Safety Agency 

(EASA) AD 2022–0237, dated December 2, 

2022. 

(ii) [Reserved] 

(3) For EASA AD 2022–0237, contact 

EASA, Konrad-Adenauer-Ufer 3, 50668 

Cologne, Germany; phone: +49 221 8999 000; 

email: ADs@easa.europa.eu; 

website:easa.europa.eu. You may find this 

EASA AD on the EASA website at 

ad.easa.europa.eu. 

(4) You may view this service information 

at FAA, Airworthiness Products Section, 

Operational Safety Branch, 1200 District 

Avenue, Burlington, MA 01803. For 

information on the availability of this 

material at the FAA, call (817) 222–5110. 

(5) You may view this material at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

visit www.archives.gov/federal-register/cfr/ 

ibr-locations or email fr.inspection@nara.gov. 

Issued on October 25, 2023. 

Caitlin Locke, 

Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2023–25517 Filed 11–17–23; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1 and 53 

[TD 9981] 

RIN 1545–BJ23 

Requirements for Type I and Type III 

Supporting Organizations; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations; correction. 

SUMMARY: This document contains a 

correction to Treasury Decision 9981, 

which was published in the Federal 

Register for Monday, October 16, 2023. 

Treasury Decision 9981 issued final 

regulations providing guidance on the 

prohibition on certain gifts or 

contributions to Type I and Type III 

supporting organizations from persons 

who control a supported organization 

and on certain other requirements for 

Type III supporting organizations. The 

regulations reflect changes to the law 

made by the Pension Protection Act of 

2006. 

DATES: This correction is effective on 

November 20, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Michael Gruccio at (202) 317–4541 (not 

a toll-free number), or Don Spellman at 

(202) 317–4086 (not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9981) that 

are the subject of this correction are 

under section 509(a) of the Code. 

Corrections to Publication 

Accordingly, the final regulations (TD 

9981) that are the subject of FR Doc. 

2023–22286, published on October 16, 

2023, are corrected on page 71298, in 

the first column, the sixth through 

eighth lines under the heading 

‘‘Statement of Availability of IRS 

Documents’’ are corrected to read 

‘‘visiting the IRS website at: https://

www.irs.gov/irb/2014-02_IRB#NOT2014-4’’. 

Oluwafunmilayo A. Taylor, 

Section Chief, Publications & Regulations 

Branch, Associate Chief Counsel (Procedure 

and Administration). 

[FR Doc. 2023–25510 Filed 11–17–23; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 35 

RIN 1505–AC83 

Coronavirus State and Local Fiscal 

Recovery Funds 

AGENCY: Department of the Treasury. 

ACTION: Interim final rule. 

SUMMARY: The Secretary of the Treasury 

is issuing an interim final rule to amend 

the definition of ‘‘obligation’’ set forth 

in the Department’s regulations with 

respect to the Coronavirus State Fiscal 

Recovery Fund and the Coronavirus 

Local Fiscal Recovery Fund established 

under the American Rescue Plan Act of 

2021. 

DATES: 

Effective date: The provisions in this 

interim final rule are effective 

November 20, 2023. 

Comment date: Comments must be 

received on or before December 20, 

2023. 

ADDRESSES: Please submit comments 

electronically through the Federal 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations 80585 

1Public Law 117–2 (Mar. 11, 2021). 

2See section 9901 of the ARPA, codified at 42 

U.S.C. 802 and 803. 

3See id. Sec. 802(a)(1), 803(a). 

4See id. Sec. 802(c)(1), 803(c)(1). 

5Section 40909, Public Law 117–58, 135 Stat. 429 

(Nov. 15, 2021). 

6See section 102 of Division LL of Public Law 

117–328, 136 Stat. 4459 (Dec. 29, 2022). 

7See id. 

8 86 FR 26786 (May 17, 2021). 

9 87 FR 4338 (Jan. 27, 2022). 

10 88 FR 64986 (Sept. 20, 2023). 

11 42 U.S.C. 802(c)(1), 803(c)(1). A recipient must 

return any funds not obligated by December 31, 

2024. 31 CFR 35.5(c). 

12 31 CFR 35.5(b). Typically, financial obligations 

incurred under a federal award must be liquidated 

no later than 120 calendar days after the end date 

of the period of performance specified in the terms 

and conditions of the award. This expenditure 

period exists to allow recipients time to receive 

goods ordered and make final payments. See 2 CFR 

200.344. 

13 31 CFR 35.3. 

14 2 CFR 200.1 (defining ‘‘financial obligation,’’ 

when referencing a recipient’s or subrecipient’s use 

of funds under a Federal award, as orders placed 

for property and services, contracts and subawards 

made, and similar transactions that require 

payment). This definition aligns with a plain 

language understanding of ‘‘incur’’ as meaning to 

become liable or subject to something. See, e.g., 

Webster’s Third Int’l Dictionary (1961) (‘‘to become 

liable or subject to: bring down upon oneself’’); 

Black’s Law Dictionary, 11th ed. 2019 (‘‘to suffer or 

bring on oneself (a liability or expense)’’); American 

Heritage Dictionary (5th ed. 2022) (‘‘to become 

liable or subject to as a result of one’s actions; bring 

upon oneself’’). 

eRulemaking Portal at http://

www.regulations.gov. Comments may be 

mailed to the Office of Recovery 

Programs, Department of the Treasury, 

1500 Pennsylvania Avenue NW, 

Washington, DC 20220. Because postal 

mail may be subject to processing 

delays, it is recommended that 

comments be submitted electronically. 

All comments should be captioned with 

‘‘Coronavirus State and Local Fiscal 

Recovery Funds Obligation Interim 

Final Rule Comments.’’ Please include 

your name, organization affiliation, 

address, email address, and telephone 

number in your comment. Where 

appropriate, a comment should include 

a short executive summary. In general, 

comments received will be posted at 

http://www.regulations.gov without 

change, including any business or 

personal information provided. 

Comments received, including 

attachments and other supporting 

materials, will be part of the public 

record and subject to public disclosure. 

Do not enclose any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

FOR FURTHER INFORMATION CONTACT: 

Jessica Milano, Chief Recovery Officer, 

Office of Recovery Programs, 

Department of the Treasury, (844) 529– 

9527. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On March 11, 2021, the American 

Rescue Plan Act of 2021 (ARPA) was 

signed into law.1 The ARPA amended 

Title VI of the Social Security Act to add 

sections 602 and 603, which established 

the State and Local Fiscal Recovery 

Funds (SLFRF).2 The SLFRF program 

provides support to State, local, 

territorial, and Tribal governments 

(together, recipients) to mitigate the 

fiscal effects of the COVID–19 public 

health emergency.3 As enacted in 2021, 

recipients are authorized to use SLFRF 

award funds to respond to the COVID– 

19 public health emergency or its 

negative economic impacts; to provide 

premium pay to essential workers; to 

provide government services to the 

extent of a reduction in a recipient’s 

revenue due to the COVID–19 public 

health emergency; or to make necessary 

investments in water, sewer, or 

broadband infrastructure.4 On 

November 15, 2021, the Infrastructure 

Investment and Jobs Act amended the 

SLFRF program to authorize recipients 

to use funds to satisfy any non-federal 

match requirement of an authorized 

Bureau of Reclamation project.5 On 

December 29, 2022, the Consolidated 

Appropriations Act, 2023 (2023 CAA), 

further amended the SLFRF program to 

authorize recipients to use funds to 

provide emergency relief from natural 

disasters or their negative economic 

impacts; to use funds for projects 

eligible under certain Department of 

Transportation programs (Surface 

Transportation projects); and to use 

funds for projects that are eligible under 

Title I of the Housing and Community 

Development Act of 1974 (Title I 

projects).6 The 2023 CAA also codified 

the $10 million ‘‘standard allowance’’ 

under the revenue loss eligible use 

category.7

In May 2021, Treasury published an 

interim final rule (2021 IFR) that 

implemented the SLFRF program as 

established by the ARPA.8 In January 

2022, Treasury published a final rule 

(2022 final rule), which responded to 

comments received on the 2021 IFR, 

made several clarifications to the 2021 

IFR, and took effect on April 1, 2022.9

In September 2023, Treasury published 

an additional interim final rule (2023 

IFR) to implement the changes made to 

the SLFRF program by the 2023 CAA.10

The 2023 IFR generally did not change 

the eligible uses discussed in the 2022 

final rule. 

Sections 602 and 603 of the Social 

Security Act provide that SLFRF funds 

may only be used to cover costs 

incurred by December 31, 2024.11 The 

term ‘‘cost incurred’’ does not have a 

precise meaning in this context. One 

approach to implementing this 

requirement might have been to have set 

December 31, 2024, as the end of the 

period of performance for SLFRF 

awards. However, Congress expressly 

provided for water, sewer, and 

broadband projects as eligible uses of 

the SLFRF. If Treasury had set the end 

of period of performance as December 

31, 2024, such that recipients would 

have had to not only obligate funds but 

complete expenditures by that date, it 

would have been very difficult for 

recipients to engage in significant water, 

sewer, and broadband projects. Instead, 

Treasury implemented the statutory 

requirement by providing that a cost is 

considered incurred by December 31, 

2024, if a recipient has incurred an 

obligation with respect to the cost by 

December 31, 2024.12 Treasury defined 

‘‘obligation’’ as ‘‘an order placed for 

property and services and entering into 

contracts, subawards, and similar 

transactions that require payment,’’ 13

which is based on the definition of 

‘‘financial obligations’’ in the Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards (Uniform Guidance).14

Treasury then set the period of 

performance as ending on December 31, 

2026, which serves as the deadline for 

expenditures. Treasury’s approach was 

confirmed by Congress in the 

amendments made to the SLFRF 

program in the CAA 2023. In providing 

authority for recipients to use SLFRF 

funds for the new eligible use 

categories, Congress expressly provided 

for the same framework of separate 

obligation and expenditure deadlines as 

is provided for in Treasury’s SLFRF 

award terms and conditions and rule. 

Specifically, the CAA 2023 amendments 

provided that funds may be obligated 

for Surface Transportation projects and 

Title I projects until December 31, 2024, 

and must be expended by September 30, 

2026. 

II. Revision to the Definition of 

Obligation in 31 CFR 35.3 and Related 

Guidance Updates 

Treasury is amending the definition of 

‘‘obligation’’ to provide additional 

flexibility to recipients, providing 

clarification regarding the application of 

the obligation deadline to subrecipients, 

and providing guidance regarding the 

amendment and replacement of 

contracts and subawards. Additional 

guidance from Treasury regarding 


ddrumheller on DSK120RN23PROD with RULES1
80586 Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations 

closeout and specific deadlines by 

which recipients must return funds not 

obligated or expended will be 

forthcoming. 

Amendment to the Definition of 

‘‘Obligation’’ 

Recipients have identified for 

Treasury that they anticipate difficulty 

using SLFRF funds to satisfy 

administrative and other legal 

requirements applicable to the SLFRF 

program after the obligation deadline 

has passed. The expenses associated 

with these requirements include payroll 

and benefits of personnel responsible 

for compliance and reporting and 

expenses of maintaining records. 

Recipients will not have incurred an 

obligation to make many of these types 

of expenditures prior to the obligation 

deadline. For example, Treasury 

understands that recipient personnel 

costs are typically obligated with 

respect to one pay period at a time 

because recipient personnel generally 

are not subject to long-term employment 

contracts. As such, expenses of 

personnel needed to comply with 

administrative and other legal 

requirements between the obligation 

deadline and the end of the period of 

performance could not be paid for using 

SLFRF funds (or at least, not after the 

end of the last pay period that begins 

prior to the obligation deadline). To the 

extent that recipients have been 

covering such expenses and other 

related administrative expenses under 

their current negotiated indirect costs 

rate agreement established with their 

federal cognizant agency or using the de 

minimis rate of 10 percent of modified 

total direct costs pursuant to 2 CFR 

200.414(f), they may continue to do so, 

and this interim final rule will also 

provide recipients with an additional 

way to cover such costs when they are 

charged directly. 

In this interim final rule, Treasury is 

amending the definition of ‘‘obligation’’ 

previously adopted at 31 CFR 35.3 in 

response to recipients’ concerns. Under 

the revised definition, an ‘‘obligation’’ 

continues to include an order placed for 

property and services and entry into 

contracts, subawards, and similar 

transactions that require payment. 

However, under the revised definition, 

a recipient is also considered to have 

incurred an obligation by December 31, 

2024, with respect to a requirement 

under federal law or regulation or a 

provision of the SLFRF award terms and 

conditions to which the recipient 

becomes subject as a result of receiving 

or expending SLFRF funds. A recipient 

may use the SLFRF funds to cover the 

cost of meeting such a requirement. 

Such expenditures include the 

following: 

• Reporting and compliance 

requirements: Funds expended to 

comply with SLFRF reporting and 

compliance requirements, including in 

connection with the preparation and 

submission of recipients’ required 

reports, review of subaward reports or 

subrecipient monitoring generally, 

maintenance of data and reporting tools, 

and review and processing of invoices. 

• Single Audit costs: Funds expended 

for the conduct of audits required by the 

Single Audit Act, including on audit 

costs, on preparation for such audits, 

and on audit resolution, including funds 

spent by pass-through entities to carry 

out their responsibilities related to audit 

resolution of subawards. 

• Record retention and internal 

control requirements: Expenditures to 

comply with records retention 

requirements and other expenditures 

necessary to ensure program integrity 

through the closeout of the award. 

• Property standards: Expenditures 

on insurance, inventory and other 

recordkeeping requirements, and 

maintenance of equipment and other 

expenditures made to comply with the 

property standards of the Uniform 

Guidance (2 CFR 200.310–200.316). 

• Environmental compliance 

requirements: Expenditures to comply 

with environmental requirements, 

including to obtain environmental 

permit renewals. 

• Civil rights and nondiscrimination 

requirements: Expenditures related to 

comply with civil rights and 

nondiscrimination requirements, 

including the investigation of 

complaints arising from SLFRF-funded 

projects. 

In each case, these would include 

costs, calculated in compliance with the 

rules for compensation charged to 

federal awards set out at 2 CFR 200.430, 

of recipient personnel whose time is 

required to comply with these 

requirements. 

To take advantage of this additional 

flexibility, recipients must (1) determine 

the amount of SLFRF funds the 

recipient estimates it will use to cover 

such expenditures, (2) document a 

reasonable justification for this estimate, 

(3) report that amount to Treasury by 

April 30, 2024, with an explanation of 

how the amount was determined, and 

(4) report at award closeout the final 

amount expended for these costs. 

Recipients may not include within this 

estimate any expenditure that will be 

made after December 31, 2026, other 

than administrative expenditures 

necessary to close out the SLFRF award 

in accordance with the Uniform 

Guidance. Other than such closeout 

expenditures, recipients must expend 

all SLFRF funds by the end of the 

period of performance regardless of 

whether they continue to have expenses 

of the type outlined above after that 

date. A recipient’s estimate of the 

amount that it expects to expend must 

be reasonable, based on the 

considerations listed at 2 CFR 200.404. 

If a recipient’s estimate exceeds what is 

ultimately expended, the recipient must 

return the excess funds to Treasury. 

Treasury will update the SLFRF 

Compliance and Reporting Guidance to 

reflect the additional reporting 

requirements. 

In response to suggestions from 

recipients, Treasury considered whether 

‘‘costs incurred’’ could be defined by 

reference to a standard other than 

‘‘obligation.’’ However, for the reasons 

discussed above, the revised definition 

of ‘‘obligation’’ provides the best and 

most reasonable interpretation of the 

statutory requirement for recipients to 

incur costs by December 31, 2024. For 

example, some recipients recommended 

that Treasury revise the rule to define 

‘‘costs incurred’’ by reference to 

recipient appropriation, budget, or 

allocation processes. This approach 

would not provide a standard that could 

be applied consistently across 

recipients. Further, as noted above, 

Congress, in the amendments made by 

the 2023 CAA with respect to the SLFRF 

program, has confirmed the definition of 

‘‘costs incurred’’ by reference to the 

obligation of funds. The 2023 CAA was 

more specific than the ARPA, providing 

that SLFRF funds ‘‘shall remain 

available for obligation’’ for Surface 

Transportation projects and Title I 

projects until December 31, 2024, and 

that funds obligated for such uses must 

be expended by September 30, 2026. 

Treasury is also amending the 

provision of the rule requiring 

repayment of amounts not obligated and 

expended by the applicable deadlines to 

align with the amendment to the 

definition of ‘‘obligation.’’ Pursuant to 

the amended definition, recipients must 

still return to Treasury any SLFRF funds 

not obligated by December 31, 2024, 

pursuant to entry into a contract or 

subaward, but need not at that time pay 

back the amounts they previously 

reported to Treasury as estimates of the 

amounts that they will use during the 

remainder of the period of performance 

to comply with legal requirements; 

recipients will be required to repay after 

December 31, 2026, any part of the 

estimated amount that is not expended. 


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Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations 80587 

15See 31 CFR 35.5(c). 

16Note that the Uniform Guidance provides that 

‘‘all contracts in excess of $10,000 must address 

termination for cause and for convenience by the 

non-Federal entity.’’ See Appendix II.(B) to 2 CFR 

part 200. 

Application of Obligation Deadline to 

Subrecipients 

Recipients have asked whether the 

December 31, 2024, obligation deadline 

applies to subrecipients. Treasury is 

clarifying that subrecipients are not 

subject to this deadline. As stated in the 

SLFRF rule and as referenced above, 

Treasury defined obligation to include 

entry into a subaward. A cost is 

considered to have been incurred once 

a recipient enters into a subaward that 

obligates the recipient to cover that cost. 

Once a recipient has obligated funds, 

the requirement in the statute and 

Treasury’s rule to obligate funds by 

December 31, 2024, has been satisfied, 

such that subrecipients need not 

themselves also obligate funds received 

under a subaward by December 31, 

2024. (Contractors also do not need to 

obligate funds received under a contract 

by December 31, 2024.) It remains the 

case that all SLFRF award funds must 

be expended by the recipient and any 

subrecipients by 2026, given the 

termination of the period of 

performance on December 31, 2026. In 

the case of funds used for Title I projects 

and Surface Transportation projects, all 

funds must be expended by September 

30, 2026. Further, as the provisions of 

the Uniform Guidance are generally 

applicable to the SLFRF program, 

recipients must comply with the 

Uniform Guidance provisions regarding 

the timing of payment to subrecipients 

as provided in 2 CFR 200.305. 

Amendment and Replacement of 

Contracts and Subawards 

Recipients have asked to what extent 

they may, after December 31, 2024, 

amend or replace contracts and 

subawards entered into prior to that 

date. In general, recipients may not reobligate funds or obligate additional 

funds after the obligation deadline 

because to do so would violate the 

statutory deadline by which costs must 

be incurred. For example, if a contractor 

requests an unexpected change order 

due to a cost increase that requires a 

contract amendment after December 31, 

2024, the recipient would not be 

permitted to obligate additional SLFRF 

funds to the project because the 

December 31, 2024, obligation deadline 

would have passed and the recipient 

would be required to return to Treasury 

any funds that had not been obligated 

by that date.15

Treasury is clarifying that after 

December 31, 2024, recipients are 

permitted to replace a contract or 

subaward entered into prior to 

December 31, 2024, if: 

(1) the recipient terminates the 

contract or subaward because of the 

contractor or subawardee’s default, 

because the contractor or subawardee 

goes out of business, or because the 

recipient otherwise determines that the 

contractor or subawardee will not be 

able to perform under the contract or 

carry out the subaward; or 

(2) the recipient and contractor or 

subrecipient mutually agree to terminate 

the contract or subaward for 

convenience; 16 or 

(3) the recipient terminates the 

contract or subaward for convenience if 

the contract or subaward was not 

properly awarded (such as if the 

contractor was not eligible to receive the 

contract), there is clear evidence that the 

contract or subaward was improper, the 

recipient documents its determination 

that the contract or subaward was not 

properly awarded, and the original 

contract or subaward was entered into 

by the recipient in good faith. 

A contract will be considered made in 

good faith for purposes of clause (3) 

above if the parties followed standard 

procurement or subaward practices, as 

applicable, and the contract or 

subaward was not entered into for the 

purpose of evading the obligation 

deadline. A recipient that re-obligates 

funds to a new contractor or 

subrecipient after the obligation 

deadline will be considered to have 

used its funds to cover an obligation 

incurred prior to the obligation deadline 

if any of the three situations above is 

present and if the original contract or 

subaward being replaced was entered 

into by December 31, 2024. 

If a recipient enters into a 

replacement contract or subaward, the 

recipient still must expend all funds by 

the expenditure deadline. Treasury will 

update the SLFRF Compliance and 

Reporting Guidance to provide a means 

for recipients to report any contract or 

subaward replacements after the 

December 31, 2024, obligation deadline. 

Recipients should maintain 

documentation to justify their 

determinations, which should include 

an analysis of the factors discussed 

above. Treasury may ask recipients to 

provide this information in their 

periodic reports. 

III. Public Comments and Effective Date 

Treasury is seeking comment from 

recipients regarding this interim final 

rule, and in particular, responses to the 

following question: What are the 

advantages and disadvantages of the 

change made by this interim final rule 

to the definition of ‘‘obligation’’? 

This interim final rule is being issued 

without advance notice and public 

comment to allow for immediate 

implementation of the amendment to 

the definition of ‘‘obligation’’ at 31 CFR 

35.3. Immediate implementation of this 

amendment will enable recipients to 

complete their internal budgeting 

processes in time to meet the statutory 

deadline to incur costs by December 31, 

2024. As discussed below, the 

requirements of advance notice and 

public comment do not apply ‘‘to the 

extent that there is involved . . . a 

matter relating to agency . . . grants.’’ 

This interim final rule revises the 

standard pursuant to which recipients 

satisfy the statutory requirement to 

incur costs for eligible uses of SLFRF 

funds by December 31, 2024. In addition 

and as discussed below, the 

Administrative Procedure Act provides 

an exception to ordinary notice-andcomment procedures ‘‘when the agency 

for good cause finds (and incorporates 

the finding and a brief statement of 

reasons therefor in the rules issued) that 

notice and public procedure thereon are 

impracticable, unnecessary, or contrary 

to the public interest.’’ This good cause 

justification also supports waiver of the 

60-day delayed effective date for major 

rules under the Congressional Review 

Act at 5 U.S.C. 808(2). Although this 

interim final rule is effective 

immediately, comments are solicited 

from interested members of the public 

and from recipient governments on all 

aspects of this interim final rule. These 

comments must be received on or before 

December 20, 2023. 

IV. Regulatory Analyses 

Executive Order 12866 

This interim final rule is not a 

‘‘significant regulatory action’’ under 

section 3(f) of Executive Order 12866, as 

amended. 

Executive Order 13132 

Executive Order 13132 (entitled 

Federalism) prohibits an agency from 

publishing any rule that has federalism 

implications if the rule either imposes 

substantial, direct compliance costs on 

state, local, and Tribal governments, and 

is not required by statute, or preempts 

state law, unless the agency meets the 

consultation and funding requirements 

of section 6 of the Executive Order. This 

interim final rule does not have 

federalism implications within the 

meaning of the Executive Order and 


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80588 Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations 

does not impose substantial, direct 

compliance costs on state, local, 

territorial, and Tribal governments or 

preempt state law within the meaning of 

the Executive Order. The compliance 

costs are imposed on state, local, 

territorial, and Tribal governments by 

sections 602 and 603 of the Social 

Security Act. Pursuant to the 

requirements set forth in section 8(a) of 

Executive Order 13132, Treasury 

certifies that it has complied with the 

requirements of Executive Order 13132. 

Administrative Procedure Act 

The Administrative Procedure Act 

(APA), 5 U.S.C. 551 et seq., generally 

requires public notice and an 

opportunity for comment before a rule 

becomes effective. However, the APA 

provides that the requirements of 5 

U.S.C. 553 do not apply ‘‘to the extent 

that there is involved . . . a matter 

relating to agency . . . grants.’’ This 

interim final rule implements statutory 

conditions on recipients’ eligible uses of 

their SLFRF award funds. The rule is 

thus ‘‘both clearly and directly related 

to a federal grant program.’’ National 

Wildlife Federation v. Snow, 561 F.2d 

227, 232 (D.C. Cir. 1976). The rule sets 

forth the ‘‘process necessary to maintain 

state . . . eligibility for federal funds,’’ 

id., as well as other ‘‘integral part[s] of 

the grant program,’’ Center for Auto 

Safety v. Tiemann, 414 F. Supp. 215, 

222 (D.D.C. 1976). As a result, the 

requirements of 5 U.S.C. 553 do not 

apply. 

The APA also provides an exception 

to ordinary notice-and-comment 

procedures ‘‘when the agency for good 

cause finds (and incorporates the 

finding and a brief statement of reasons 

therefor in the rules issued) that notice 

and public procedure thereon are 

impracticable, unnecessary, or contrary 

to the public interest.’’ 5 U.S.C. 

553(b)(3)(B); see also 5 U.S.C. 553(d)(3) 

(creating an exception to the 

requirement of a 30-day delay before the 

effective date of a rule ‘‘for good cause 

found and published with the rule’’). 

Assuming 5 U.S.C. 553 applied, 

Treasury would still have good cause 

under sections 553(b)(3)(B) and 

553(d)(3) for not undertaking section 

553’s requirements. As discussed above, 

Congress authorizes recipients to use 

SLFRF funds for costs incurred for 

eligible purposes by December 31, 2024. 

Given the rapidly approaching deadline, 

there is an urgent need for recipients to 

undertake the planning necessary for 

sound fiscal policymaking, which 

requires clarity on how SLFRF funds 

will augment and interact with existing 

budgetary resources. Treasury 

understands that many recipients 

require immediate rules on which they 

can rely, especially in light of the 

approaching obligation deadline. This 

statutory urgency and practical 

necessity are good cause to forego the 

ordinary requirements of notice-andcomment rulemaking. 

Congressional Review Act 

This rule is not a major rule for 

purposes of the Congressional Review 

Act (5 U.S.C. 801 et seq.). 

Paperwork Reduction Act 

The information collections 

associated with the SLFRF program 

have been reviewed and approved by 

OMB pursuant to the Paperwork 

Reduction Act (44 U.S.C. Chapter 35) 

(PRA) and assigned control number 

1505–0271. Under the PRA, an agency 

may not conduct or sponsor, and a 

respondent is not required to respond 

to, an information collection unless it 

displays a valid OMB control number. 

This interim final rule is not altering the 

previously approved information 

collections for the SLFRF program. The 

table below includes the estimates of 

hourly burden under this program that 

have been approved in previously 

approved information collections. 

Reporting Number 

respondents 

Number 

responses per 

respondent 

Total 

responses Hours per response Total burden in hours 

Cost to 

respondents 

($48.80 per 

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/business-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 

The Regulatory Flexibility Act (RFA) 

generally requires that when an agency 

issues a proposed rule, or a final rule 

pursuant to section 553(b) of the APA or 

another law, the agency must prepare a 

regulatory flexibility analysis that meets 

the requirements of the RFA and 

publish such analysis in the Federal 

Register. 5 U.S.C. 603, 604. 

Rules that are exempt from notice and 

comment under the APA or any other 

law are also exempt from the RFA 

requirements, including the requirement 

to conduct a regulatory flexibility 

analysis, when among other things the 

agency for good cause finds that notice 

and public procedure are impracticable, 

unnecessary, or contrary to the public 

interest. Because this rule is exempt 

from the notice and comment 

requirements of the APA, Treasury is 

not required to conduct a regulatory 

flexibility analysis. 

List of Subjects in 31 CFR Part 35 

Community development, Disaster 

assistance, Executive compensation, 

Public health emergency, State and 

Local Governments, Transportation, 

Tribal Governments. 

For the reasons stated in the 

preamble, the United States Department 

of the Treasury amends 31 CFR part 35 

as set forth below: 


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Federal Register / Vol. 88, No. 222 / Monday, November 20, 2023 / Rules and Regulations 80589 

PART 35—PANDEMIC RELIEF 

PROGRAMS 

Subpart A—Coronavirus State and 

Local Fiscal Recovery Funds 

■ 1. The authority citation for part 35, 

subpart A continues to read as follows: 

Authority: 42 U.S.C. 802(f); 42 U.S.C. 

803(f); section 102(c) of Division LL of the 

Consolidated Appropriations Act, 2023 (Pub. 

L. 117–328). 

■ 2. Amend § 35.3 by adding a new 

sentence at the end of the definition of 

‘‘Obligation’’ to read as follows: 

§ 35.3 Definitions. 

* * * * * 

Obligation * * * An obligation also 

means a requirement under federal law 

or regulation or provision of the award 

terms and conditions to which a 

recipient becomes subject as a result of 

receiving or expending funds. 

* * * * * 

■ 3. Revise § 35.5(c) to read as follows: 

§ 35.5 Use of funds. 

* * * * * 

(c) Return of funds. A recipient must 

return any funds that have not been 

obligated by December 31, 2024, 

pursuant to orders placed for property 

and services or entry into contracts, 

subawards, and similar transactions that 

require payment other than funds in the 

amount reported to Treasury by April 

30, 2024, as the estimate of funds that 

the recipient will expend to comply 

with a requirement under federal law or 

regulation or provision of the award 

terms and conditions to which a 

recipient becomes subject as a result of 

receiving or expending funds. A 

recipient must return funds obligated 

for a use identified in § 35.6(b) through 

(g) by December 31, 2024, but not 

expended by December 31, 2026. A 

recipient must return funds obligated 

for a use identified in § 35.6(h) by 

December 31, 2024, but not expended 

by September 30, 2026. A recipient 

must return funds in the amount 

reported to Treasury by April 30, 2024, 

as referenced above, but not expended 

by December 31, 2026, other than 

administrative expenses necessary to 

close out the award. 

Jessica A. Milano, 

Chief Recovery Officer, Office of Recovery 

Programs. 

[FR Doc. 2023–25067 Filed 11–17–23; 8:45 am] 

BILLING CODE 4810–AK–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2023–0865] 

RIN 1625–AA00 

Safety Zone; Oswego River, Oswego, 

NY 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone for 

navigable waters within a 210-foot 

radius of a pedestrian bridge and the 

surrounding Oswego River in Oswego, 

NY. The safety zone is needed to protect 

personnel, vessels, and the marine 

environment from potential hazards 

created by a fireworks display. Entry of 

vessels or persons into this zone is 

prohibited unless specifically 

authorized by the Captain of the Port, 

Sector Buffalo. 

DATES: This rule is effective from 5:15 

p.m. through 6:45 p.m. November 25, 

2023. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2023– 

0865 in the search box and click 

‘‘Search.’’ Next, in the Document Type 

column, select ‘‘Supporting & Related 

Material.’’ 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email LT William Kelley, Waterways 

Management at Sector Buffalo, U.S. 

Coast Guard; telephone 716–843–9343, 

email D09-SMB-SECBuffalo-WWM@

uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of proposed rulemaking 

§ Section 

U.S.C. United States Code 

II. Background Information and 

Regulatory History 

The Coast Guard is issuing this 

temporary rule without prior notice and 

opportunity to comment pursuant to 

authority under section 4(a) of the 

Administrative Procedure Act (APA) (5 

U.S.C. 553(b)). This provision 

authorizes an agency to issue a rule 

without prior notice and opportunity to 

comment when the agency for good 

cause finds that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ Under 5 U.S.C. 

553(b)(B), the Coast Guard finds that 

good cause exists for not publishing a 

notice of proposed rulemaking (NPRM) 

with respect to this rule because the 

event sponsor did not submit notice of 

the fireworks display to the Coast Guard 

with sufficient time remaining before 

the event to publish an NPRM. Delaying 

the effective date of this rule to wait for 

a comment period to run would be 

impracticable and contrary to the public 

interest by inhibiting the Coast Guard’s 

ability to protect spectators and vessels 

from the hazards associated with this 

fireworks display. 

Under 5 U.S.C. 553(d)(3), the Coast 

Guard finds that good cause exists for 

making this rule effective less than 30 

days after publication in the Federal 

Register. For the same reasons 

discussed in the preceding paragraph, 

waiting for a 30-day notice period to run 

would be impracticable and contrary to 

the public interest. 

III. Legal Authority and Need for Rule 

The Coast Guard is issuing this rule 

under authority in 46 U.S.C. 70034 

(previously 33 U.S.C. 1231). The 

Captain of the Port (COTP) Buffalo has 

determined that fireworks over the 

water presents significant risks to public 

safety and property. This rule is needed 

to protect personnel, vessels, and the 

marine environment in the navigable 

waters within the safety zone while the 

fireworks display is taking place. 

IV. Discussion of the Rule 

This rule establishes a safety zone 

from 5:15 p.m. through 6:45 p.m. on 

November 25, 2023. The safety zone 

will cover all navigable waters within a 

210-foot radius of land launched 

fireworks over the Oswego River in 

Oswego, NY. The duration of the zone 

is intended to protect spectators, 

vessels, and the marine environment in 

these navigable waters during the 

fireworks display. No vessel or person 

will be permitted to enter the safety 

zone without obtaining permission from 

the COTP Buffalo or a designated 

representative. 

V. Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

Executive orders related to rulemaking. 

Below we summarize our analyses 

based on a number of these statutes and 

Executive orders, and we discuss First 

Amendment rights of protestors. 

A. Regulatory Planning and Review 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 


ddrumheller on DSK120RN23PROD with RULES1