Well, hold on. They are allowed to make one copy. Then g specifically says they are allowed to distribute one copy. Doesn't say it always has to be the same copy. It is in fact their one copy.
>(1)is aware or has substantial reason to believe that it is engaging in the related or concerted reproduction or distribution of multiple copies or phonorecords of the same material, whether made on one occasion or over a period of time,
TL;DR: If you make more than one copy of a physical copy you have rights to and/or distribute that copy or copies multiple times simultanenously, the protections granted by this law do not apply.
This law only protects public libraries if they make one and only one copy and distribute (lend) that copy out once at a time on separate occasions.
There are clauses in this law permitting up to three copies in other circumstances, but those are not immediately relevant for this conversation.
