123-047-0140 Temporary rule language in effect until 07/31/2026. ARPA Capital Projects Fund Digital Connectivity Technology Program—Eligible Applicants, Eligible Project Costs, and Ineligible Project Costs (1) Eligible Applicants are defined in OAR 123-047-0120. Notwithstanding the foregoing sentence, public safety entities and any other entities disapproved by the U.S. Treasury are ineligible applicants for this Program. All findings regarding applicant eligibility are reserved to the Department. (2) The Department reserves the right to withhold or revoke eligibility from an applicant at its sole discretion for reasons including but not limited to: (a) Nonperformance under a prior contract with the Department, other State entity or a federal entity; (b) A final determination of failure or refusal to comply with state or federal regulations or standards; (c) Pending legal action involving the applicant (if the outcome would impact the applicant’s ability to perform under a Program Financing Contract); (d) Willful misrepresentations made within an application submitted to the Department or in communications with the Department; (e) Lacking the legal authority, capacity or ability to execute a Financing Contract with the Department; (f) Accepting the applicant may impair the integrity of the Program award process or that such withholding or revocation is in the best interests of the Department; or (g) Disapproval of the applicant by the U.S. Treasury. (3) Eligible project costs for Program grant disbursements include the following if in compliance with the recipient’s approved budget contained in an executed Program Financing Contract: (a) Costs to purchase Permitted Devices and Permitted Equipment; and (b) Costs necessary to install the project’s Permitted Devices and Permitted Equipment as determined by the Department. (4) Ineligible project costs for Program grant disbursements include but are not limited to the following: (a) Costs for capital assets purchased to resell. (b) Pre-award costs which are those costs incurred prior to the notice of intent to award date. (c) Costs for materials not used in the proposed project. If an award recipient purchases devices or equipment in bulk to obtain a more favorable price per unit, the grant funds must be prorated for actual approved project costs only. (d) Indirect or operational costs including but not limited to personnel salaries and fringe benefits of the applicant’s staff, professional services, travel costs for grant-related activities, costs for administering the grant, and any other indirect costs not related to a direct eligible project cost as determined by the Department. (e) Direct costs related to the administration of the grant, including other expenses that support grant-funded Project activities. (f) Telecommunication Services costs for subscriptions including but not limited to fixed- or wireless network services (data retail, internet retail, voice retail and mobile services). (g) Capital assets, general purpose equipment (tangible personal property [including computing devices and information technology systems]) and/or supplies for use by project staff during the project period of performance. (h) Training costs. Statutory/Other Authority: ORS 285A.075, ORS 285A.166 & ORS 285A.180 Statutes/Other Implemented: ORS 285A.180 & Oregon Laws 2025, chapter 616, section 10 History: OBDD 3-2026, temporary adopt filed 02/04/2026, effective 02/04/2026 through 07/31/2026