**PART 1794** - **ENVIRONMENTAL POLICIES AND PROCEDURES (AMENDED)**

**Subpart A** - **General**

Sec.

1.  Purpose.

2.  Authority.

1794.3 Actions requiring environmental review.

1794.4 Metric units.

1794.5 Responsible officials.

1794.6 Definitions.

1794.7 Guidance.

1794.8 - 1794.9 \[Reserved\]

**Subpart B** - **Implementation of the National Environmental Policy
Act**

1794.10 Applicant responsibilities.

1794.11 Apply NEPA early in the planning process.

1794.12 Consideration of alternatives.

1794.13 Public involvement.

1794.14 Interagency involvement and coordination.

1794.15 Limitations on actions during the NEPA process.

1794.16 Tiering.

1794.17 Mitigation.

1794.18 - 1794.19 \[Reserved\]

**Subpart C** - **Classification of Proposals**

1794.20 Control.

1794.21 Categorically excluded proposals without an ER.

1794.22 Categorically excluded proposals requiring an ER.

1794.23 Proposals normally requiring an EA.

1794.24 Proposals normally requiring an EA with scoping.

1794.25 Proposals normally requiring an EIS.

1794.26 - 1794.29 \[Reserved\]

**Subpart D - Procedure for Categorical Exclusions**

1794.30 General.

1794.31 Classification.

1794.32 Environmental report.

1794.33 Agency action.

1794.34 - 1794.39 \[Reserved\]

**Subpart E - Procedure for Environmental Assessments**

1794.40 General.

1794.41 Document requirements.

1794.42 Notice of availability.

1794.43 Agency finding.

1794.44 Timing of agency action.

1794.45 - 1794.49 \[Reserved\]

**Subpart F - Procedure for Environmental Assessments with Scoping**

1794.50 Normal sequence.

1794.51 Preparation for scoping.

1794.52 Scoping meetings.

1794.53 Environmental analysis.

1794.54 Agency determination.

1794.55 - 1794.59 \[Reserved\]

**Subpart G - Procedure for Environmental Impact Statement**

1794.60 Normal sequence.

1794.61 Environmental impact statement.

1794.62 Supplemental EIS.

1794.63 Record of decision.

1794.64 Timing of agency action.

1794.65 - 1794.69 \[Reserved\]

**Subpart H - Adoption of Environmental Documents**

1794.70 General.

1794.71 Adoption of an EA.

1794.72 Adoption of an EIS.

1794.73 Timing of agency action.

1794.74 Incorporation of environmental materials.

1794.75 - 1794.79 \[Reserved\]

**Authority:** 7 U.S.C. 6941 [et seq]{.underline}., 42 U.S.C. 4321 [et
seq]{.underline}.; 40 CFR Parts 1500-1508.

**Subpart A - General**

## [§1794.1 Purpose.]{.underline}

\(a\) This part contains the policies and procedures of the Rural
Utilities Service (RUS) for implementing the requirements of the
National Environmental Policy Act of 1969 (NEPA), as amended (42 U.S.C.
4321-4346); the Council on Environmental Quality (CEQ) Regulations for
Implementing the Procedural Provisions of NEPA (40 CFR parts 1500
through 1508) and certain related Federal environmental laws, statutes,
regulations, and Executive Orders (EO) that apply to RUS programs and
administrative actions.

\(b\) The policies and procedures contained in this part are intended to
help RUS officials make decisions that are based on an understanding of
environmental consequences, and take actions that protect, restore, and
enhance the environment. In assessing the potential environmental
impacts of its actions, RUS will consult early with appropriate Federal,
State, and local agencies and other organizations to provide
decision-makers with information on the issues that are truly
significant to the action in question.

[§1794.2 Authority.]{.underline}

\(a\) This part derives its authority from and is intended to be
compliant with NEPA, CEQ Regulations for Implementing the Procedural
Provisions of NEPA, and other RUS regulations.

\(b\) Where practicable, RUS will use NEPA analysis and documents and
review procedures to integrate the requirements of related environmental
statutes, regulations, and orders.

\(c\) This part integrates the requirements of NEPA with other planning
and environmental review procedures required by law, or by RUS practice
including but not limited to:

\(1\) Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.);

\(2\) The National Historic Preservation Act (16 U.S.C. 470 et seq.);

\(3\) Farmland Protection Policy Act (7 U.S.C. 4201 et seq.);

\(4\) E.O. 11593, Protection and Enhancement of the Cultural Environment
(3 CFR, 1971 Comp., p. 154);

\(5\) E.O. 11514, Protection and Enhancement of Environmental Quality (3
CFR, 1970 Comp., p. 104);

\(6\) E.O. 11988, Floodplain Management (3 CFR, 1977 Comp., p. 117);

\(7\) E.O. 11990, Protection of Wetlands (3 CFR, 1977 Comp., p. 121);
and

(8) E.O. 12898, Federal Actions to Address Environmental Justice in
    Minority

Populations and Low-Income Populations (3 CFR, 1994 Comp., pg. 859).

\(d\) Applicants are responsible for ensuring that proposed actions are
in compliance with all appropriate RUS requirements. Environmental
documents submitted by the applicant shall be prepared under the
oversight and guidance of RUS. RUS will evaluate and be responsible for
the accuracy of all information contained therein.

## [§1794.3 Actions requiring environmental review.]{.underline}

##  The provisions of this part apply to actions by RUS including the approval of financial assistance pursuant to the Electric, Telecommunications, and Water and Waste Programs, the disposal of property held by RUS pursuant to such programs, and the issuance of new or revised rules, regulations, and bulletins. Approvals provided by RUS pursuant to loan contracts and security instruments, including approvals of lien accommodations, are not actions for the purposes of this part and the provisions of this part shall not apply to the exercise of such approvals.

[§1794.4 Metric units.]{.underline}

RUS normally will prepare environmental documents using non-metric
equivalents with one of the following two options; metric units in
parentheses immediately following the non-metric equivalents or a metric
conversion table as an appendix. Environmental documents prepared by or
for a RUS applicant should follow the same format.

[§1794.5 Responsible officials.]{.underline}

The Administrator of RUS has the responsibility for Agency compliance
with all environmental laws, regulations, and EOs that apply to RUS
programs and administrative actions. Responsibility for ensuring
environmental compliance for actions taken by RUS has been delegated as
follows:

\(a\) [Electric and Telecommunications Programs]{.underline}. The
appropriate Assistant Administrator is responsible for ensuring
compliance with this part for the respective programs.

\(b\) [Water and Waste Program]{.underline}. The Assistant Administrator
for this program is responsible for ensuring compliance with this part
at the national level. The State Director is the responsible official
for ensuring compliance with this part for actions taken at the State
Office level.

[§1794.6 Definitions.]{.underline}

The following definitions, as well as the definitions contained in 40
CFR 1508 of the CEQ regulations, apply to the implementation of this
part:

[Applicant]{.underline}. The organization applying for financial
assistance or other approval from either the Electric or
Telecommunications programs or the organization applying for a loan or
grant from the Water and Waste program.

[Construction Work Plan (CWP)]{.underline}. The document required by 7
CFR part 1710.

[Emergency Situation.]{.underline} A natural disaster or system failure
that may involve an immediate or imminent threat to public health,
safety, or the human environment.

[Environmental Report (ER]{.underline}). The environmental documentation
normally submitted by applicants for proposed actions subject to
compliance with §§1794.22 through 1794.24. An ER for the Water and Waste
Program refers to the environmental review documentation normally
included as part of the Preliminary Engineering Report.

[Environmental review]{.underline}. Any one or all of the levels of
environmental analysis described under subpart C of this part.

[Equivalent Dwelling Unit (EDU]{.underline}). Level of water or waste
service provided to a typical rural residential dwelling.

[Distributed Generation]{.underline}. The generation of electricity by a
sufficiently small electric generating system as to allow
interconnection of the system near the point of service at distribution
voltages or customer voltages. A distributed generating system may be
fueled by any source, including but not limited to renewable energy
sources.

[Important Land Resources]{.underline}. Defined pursuant to the U.S.
Department of Agriculture's Departmental Regulation 9500-3, Land Use
Policy, as important farmland, prime forestland, prime rangeland,
wetlands, and floodplains. Copies of this Departmental Regulation are
available from USDA, Rural Utilities Service, Washington, D.C. 20250.

[Loan Design]{.underline}. Document required by 7 CFR part 1737.

[Multiplexing Center]{.underline}. A field site where a
telecommunications provider houses a device that combines individual
subscriber circuits onto a single system for economical connection with
a switching center. The combiner, or \"multiplexer,\" may be mounted on
a pole, on a concrete pad, or in a partial or full enclosure such as a
shelter, or small building.

[Natural Resource Management Guide]{.underline}. Inventory of natural
resources, land uses, and environmental factors specified by Federal,
State, and local authorities as deserving some degree of protection or
special consideration. The guide describes the standards or types of
protection that apply.

[Preliminary Engineering Report (PER]{.underline}). Document required by
7 CFR part 1780 for Water and Waste Programs. A PER is prepared by an
applicant's engineering consultant documenting a proposed action's
preliminary engineering plan and design and the applicable environmental
review activities as required in this part. Upon approval by RUS, the
PER, or a portion thereof, shall serve as the RUS environmental
document.

[Supervisory Control and Data Acquisition System (SCADA)]{.underline}.
Electronic monitoring and control equipment installed at electric
substations and switching stations.

[Third party Consultant]{.underline}. A party selected by RUS to prepare
the EIS for proposed actions described in §1794.25 where the applicant
initiating the proposal agrees to fund preparation of the document in
accordance with the provisions of 7 CFR Part 1789, "Use of Consultants
Funded by Borrowers" and Section 759A of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 2204b(b)).

[§1794.7 Guidance.]{.underline}

\(a\) [Electric and Telecommunications Programs]{.underline}. For
further guidance in the preparation of public notices and environmental
documents, RUS has prepared a series of program specific guidance
bulletins. RUS Bulletin 1794A-600 provides guidance in preparing the ER
for proposed actions classified as categorical exclusions (CEs)
(§1794.22(a)). RUS Bulletin 1794A-601 provides guidance in preparing the
ER for proposed actions which require EAs (§1794.23(b) and (c)). RUS
Bulletin 1794A-603 provides guidance in conducting scoping for proposed
actions classified as requiring an EA with scoping or an EIS. Copies of
these bulletins are available upon request by contacting Rural Utilities
Service, Publications Office, Program Development and Regulatory
Analysis, Stop 1522; 1400 Independence Avenue, SW; Washington, D.C.
20250-1522.

\(b\) [Water and Waste Program]{.underline}. RUS Bulletin 1794A-602
provides guidance in preparing the ER for proposed actions classified as
CEs (§1794.22(b)) and EAs (§1794.23(b)). A copy of this bulletin is
available upon request by contacting the appropriate State Director.
State Directors may provide supplemental guidance to meet state and
local laws and regulations and to provide for orderly application
procedures and efficient service to applicants. State Directors shall
obtain the Administrator's approval for all supplements to RUS Bulletin
1794A-602. Each State Office shall maintain an updated Natural Resource
Management Guide and provide applicants with pertinent sections or a
copy of the current edition thereof.

[§§1794.8 - 1794.9 \[Reserved\]]{.underline}

**Subpart B - Implementation of the National Environmental Policy Act**

[§1794.10 Applicant responsibilities.]{.underline}

As described in subpart C of this part, applicants shall prepare the
applicable environmental documentation concurrent with a proposed
action's engineering, planning, and design activities. RUS shall assist
applicants by outlining the types of information required and shall
provide guidance and oversight in the development of the documentation.
Documentation shall not be considered complete until all public review
periods, as applicable, have expired and RUS concurrence, as set forth
in the appropriate decision document and associated public notice, has
been issued.

[§1794.11 Apply NEPA early in the planning process.]{.underline}

The environmental review process requires early coordination with and
involvement of RUS. Applicants should consult with RUS at the earliest
stages of planning for any proposal that may require RUS action. For
proposed actions that normally require an EIS, applicants shall consult
with RUS prior to obtaining the services of an environmental consultant.

[§1794.12 Consideration of alternatives.]{.underline}

In determining what are reasonable alternatives, RUS considers a number
of factors. These factors may include, but are not limited to, the
proposed action's size and scope, state of the technology, economic
considerations, legal and socioeconomic concerns, availability of
resources, and the timeframe in which the identified need must be
fulfilled.

[§1794.13 Public involvement.]{.underline}

\(a\) In carrying out its responsibilities under NEPA, RUS shall make
diligent efforts to involve the public in the environmental review
process through public notices and public hearings and meetings.

\(1\) All public notices required by this part shall describe the
nature, location, and extent of the proposed action and indicate the
availability and location of additional information. They shall be
published in newspaper(s) of general circulation within the proposed
action's area of environmental impact and the county(s) in which the
proposed action will take place or such other places as RUS determines.

\(2\) The number of editions in which the notices should be published
will be specified in the Bulletins referenced in §1794.7 or established
on a project-by-project basis. Alternative forms of notice may also be
necessary to ensure that residents located in the area affected by the
proposed action are notified. The applicant should not publish notices
for compliance with this Part until so notified by RUS.

\(3\) A copy of all comments received by the applicant concerning
environmental aspects of the proposed action shall be provided to RUS in
a timely manner. RUS and applicants shall assess and consider public
comments both individually and collectively. Responses to public
comments will be appended to the applicable environmental document.

\(4\) RUS and applicants shall make available to the public those
project related environmental documents that RUS determines will enhance
public participation in the environmental process. These materials shall
be placed in locations convenient for the public as determined by RUS in
consultation with applicants. Included with the documentation shall be a
list of other project-related information that shall be available for
inspection through a designated RUS or applicant contact person.

\(5\) Public hearings or meetings shall be held at reasonable times and
locations concerning environmental aspects of a proposed action in all
cases where, in the opinion of RUS, the need for hearings or meetings is
indicated in order to develop adequate information on the environmental
implications of the proposed action. Public hearings or meetings
conducted by RUS will be coordinated to the extent practicable with
other meetings, hearings, and environmental reviews which may be held or
required by other Federal, state and local agencies. Applicants shall,
as necessary, participate in all RUS conducted public hearings or
meeting.

\(6\) Scoping procedures, in accordance with 40 CFR 1501.7, are required
for proposed actions normally requiring an EA with scoping (§1794.24) or
an EIS (§1794.25). RUS may require scoping procedures to be followed for
other proposed actions where appropriate to achieve the purposes of
NEPA.

\(b\) The applicant shall have public notices described in this section
published in a newspaper(s). Applicants shall obtain proof of
publication from the newspaper(s) for inclusion into the applicable
environmental document. Where the proposed action requires an EIS RUS
shall, in addition to applicant published notices, publish notice in the
[Federal Register]{.underline}. In all cases, RUS may publish notices in
the [Federal Register]{.underline} as appropriate.

[§1794.14 Interagency involvement and coordination.]{.underline}

In an attempt to reduce or eliminate duplication of effort with state or
local procedures, RUS will, to the extent possible and in accordance
with 40 CFR 1506.2, actively participate with any governmental agency to
cooperatively or jointly prepare environmental documents so that one
document will comply with all applicable laws. Where RUS has agreed to
participate as a cooperating agency, in accordance with 40 CFR 1501.6,
RUS may rely upon the lead agency's procedures for implementing NEPA
procedures. In addition, RUS shall request that:

\(a\) The lead agency indicates that RUS is a cooperating agency in all
NEPA-related notices published for the proposed action;

\(b\) The scope and content of the EA or EIS satisfies the statutory and
regulatory requirements applicable to RUS; and

\(c\) The applicant shall inform RUS in a timely manner of its
involvement in a proposed action where another Federal agency is
preparing an environmental document so as to permit RUS to adequately
fulfill its duties as a cooperating agency.

[§1794.15 Limitations on actions during the NEPA process.]{.underline}

\(a\) [General]{.underline}. Until RUS concludes its environmental
review process, the applicant shall take no action concerning the
proposed action which would have an adverse environmental impact or
limit the choice of reasonable alternatives being considered in the
environmental review process (40 CFR 1506.1). The RUS environmental
review process is concluded when:

\(1\) A categorical exclusion determination has been made for proposals
listed under §§1794.21 and 1794.22.

\(2\) Applicant notices announcing the RUS FONSI determination have been
published for proposals listed under §§1794.23 and 1794.24.

\(3\) Applicant notices announcing the RUS Record of Decision have been
published for proposals listed under §1794.25.

\(b\) [Electric Program]{.underline}. In determining which applicant
activities related to a proposed action can proceed prior to completion
of the environmental review process, RUS must determine, among other
matters that:

\(1\) The activity shall not have an adverse environmental impact and
shall not preclude the search for other alternatives. For example,
purchase of water rights, optioning or transfer of land title, or
continued use of land as historically employed will not have an adverse
environmental impact. However, site preparation or construction at or
near the proposed site (*e.g.* rail spur) or development of a related
facility (*e.g.* opening a captive mine) normally will have an adverse
environmental impact.

\(2\) Expenditures are minimal. To be minimal, the expenditure must not
exceed the amount of loss which the applicant could absorb without
jeopardizing the Government's security interest in the event the
proposed action is not approved by the Administrator, and must not
compromise the objectivity of RUS environmental review. Not withstanding
other considerations, expenditures equivalent to up to 10 percent of the
proposed action's cost normally will not compromise RUS objectivity.
Expenditures for the purpose of producing documentation required for RUS
environmental review are excluded from this limitation.

[§1794.16 Tiering.]{.underline}

It is the policy of RUS to prepare programmatic level analysis in order
to tier an EIS and an EA where:

\(a\) It is practicable, and

\(b\) There will be a reduction of delay and paperwork, or where better
decision making will be fostered (40 CFR 1502.20).

[§1794.17 Mitigation.]{.underline}

\(a\) [General]{.underline}. In addition to complying with the
requirements of 40 CFR 1502.14(f), it is RUS policy that a discussion of
mitigative measures essential to render the impacts of the proposed
action not significant will be included in or referenced in the Finding
of No Significant Impact (FONSI) and the Record of Decision (ROD).

\(b\) [Water and Waste Program]{.underline}.

\(1\) Mitigation measures which involve protective measures for
environmental resources cited in this part or restrictions or
limitations on real property located in the service areas of the
proposed action shall be negotiated with applicants and any relevant
regulatory agency so as to be enforceable. All mitigation measures
incorporating land use issues shall recognize the rights and
responsibilities of landholders in making private land use decisions and
recognize the responsibility of governments in influencing how land may
be used to meet public needs.

\(2\) Mitigation measures shall be included in the letter of conditions.

\(3\) RUS has the responsibility for the post approval construction or
security inspections or monitoring to ensure that all mitigation
measures included in the environmental documents have been implemented
as specified in the letter of conditions.

[§§1794.18 - 1794.19 \[Reserved\]]{.underline}

**Subpart C - Classification of Proposals**

[§1794.20 Control.]{.underline}

[Electric and Telecommunications Programs]{.underline}. For
environmental review purposes, RUS has identified and established
categories of proposed actions (§§1794.21 through 1794.25). An applicant
may propose to participate with other parties in the ownership of a
project where the applicant(s) does not have sufficient control to alter
the development of the project. In such a case, RUS shall determine
whether the applicant participants have sufficient control and
responsibility to alter the development of the proposed project prior to
determining its classification. Where the applicant proposes to
participate with other parties in the ownership of a proposed project
and all applicants cumulatively own:

\(a\) Five percent or less of a project is not considered a Federal
action subject to this part;

\(b\) Thirty-three and one-third percent or more of a project shall be
treated in its usual category;

\(c\) More than five percent but less than 33-1/3 percent of a project,
RUS shall determine whether the applicant participants have sufficient
control and responsibility to alter the development of the proposal such
that RUS's action will be considered a Federal action subject to this
part. Consideration shall be given to such factors as:

\(1\) Whether construction would be completed regardless of RUS
financial assistance or approval;

\(2\) The stage of planning and construction;

\(3\) Total participation of the applicant;

\(4\) Participation percentage of each utility; and

\(5\) Managerial arrangements and contractual provisions.

[§1794.21 Categorically excluded proposals without an ER.]{.underline}

\(a\) [General]{.underline}. Certain types of actions taken by RUS do
not normally require an ER. Proposed actions within this classification
are:

\(1\) The issuance of bulletins and information publications that do not
concern environmental matters or substantial facility design,
construction, or maintenance practices;

\(2\) Procurement activities related to the operation of RUS;

\(3\) Personnel and administrative actions; and

\(4\) Repairs made because of an emergency situation to return to
service damaged facilities of an applicant's system.

\(b\) [Electric and Telecommunications Programs]{.underline}.
Applications for financial assistance for the types of proposed actions
listed in this paragraph (b) normally do not require the submission of
an ER. These types of actions are subject to the requirements of
§1794.31. Applicants shall sufficiently identify all proposed actions so
their proper classification can be determined. Detailed descriptions
shall be provided for each proposal noted in this section. RUS normally
requires additional information in addition to a description of what is
being proposed, to ensure that proposals are properly classified. In
order to provide for extraordinary circumstances, RUS may require
development of an ER for proposals listed in this section. Proposed
actions within this classification are:

\(1\) Purchase of land where use shall remain unchanged, or the purchase
of existing water rights where no associated construction is involved;

\(2\) Additional or substitute financial assistance for proposed actions
which have previously received environmental review and approval from
RUS, provided the scope of the proposal and environmental considerations
have not changed;

\(3\) Rehabilitation or reconstruction of transportation facilities
within existing rights-of-way (ROW) or generating facility sites. A
description of the rehabilitation or reconstruction shall be provided to
RUS;

\(4\) Changes or additions to microwave sites, substations, switching
stations, telecommunications switching or multiplexing centers,
buildings, or small structures requiring new physical disturbance or
fencing of less than one acre (0.4 hectare). A description of the
additions or changes and the area to be impacted by the expansion shall
be provided to RUS;

\(5\) Internal modifications or equipment additions ([e.g]{.underline}.,
computer facilities, relocating interior walls) to structures or
buildings;

\(6\) Internal or minor external changes to electric generating or fuel
processing facilities and related support structures where there is
negligible impact on the outside environment. A description of the
changes shall be provided to RUS;

\(7\) Ordinary maintenance or replacement of equipment or small
structures ([e.g]{.underline}., line support structures, line
transformers, microwave facilities, telecommunications remote switching
and multiplexing sites);

\(8\) The construction of telecommunications facilities within the
fenced area of an existing substation, switching station, or within the
boundaries of an existing electric generating facility site. A
description of the facilities to be constructed shall be provided to
RUS;

\(9\) SCADA and energy management systems involving no new external
construction;

\(10\) Testing or monitoring work ([e.g]{.underline}., soil or rock core
sampling, monitoring wells, air monitoring);

\(11\) Studies and engineering undertaken to define proposed actions or
alternatives sufficiently so that environmental effects can be assessed;

\(12\) Construction of electric power lines within the fenced area of an
existing substation, switching station, or within the boundaries of an
electric generating facility site;

\(13\) Contracts for certain items of equipment which are part of a
proposed action for which RUS is preparing an EA or EIS, and which meet
the limitations on actions during the NEPA process as established in 40
CFR 1506.1(d) and contained in §1794.15(b)(2);

\(14\) Rebuilding of power lines or telecommunications cables where road
or highway reconstruction requires the applicant to relocate the lines
either within or adjacent to the new road or highway easement or
right-of-way. A description of the facilities to be constructed shall be
provided to RUS;

\(15\) Phase or voltage conversions, reconductoring or upgrading of
existing electric distribution lines, or telecommunication facilities. A
description of the facilities to be constructed shall be provided to
RUS;

\(16\) Construction of new power lines, substations, or
telecommunications facilities on industrial or commercial sites, where
the applicant has no control over the location of the new facilities.
Related off-site facilities would be treated in their normal category. A
description of the facilities to be constructed shall be provided to
RUS;

\(17\) Participation by an applicant(s) in any proposed action where
total applicant financial participation will be five percent or less;

\(18\) Construction of a battery energy storage system at an existing
generating station or substation site. A description of the facilities
to be constructed shall be provided to RUS.

\(19\) Additional bulk commodity storage ([e.g]{.underline}., coal, fuel
oil, limestone) within existing generating station boundaries. A
certification attesting to the current state of compliance of the
existing facilities and a description of the facilities to be added
shall be provided to RUS;

\(20\) Proposals designed to reduce the amount of pollutants released
into the environment (e.g., precipitators, baghouse or scrubber
installations, and coal washing equipment) which will have no other
environmental impact outside the existing facility site. A description
of the facilities to be constructed shall be provided to RUS;

\(21\) Construction of standby diesel electric generators (one megawatt
or less total capacity) and associated facilities, for the primary
purpose of providing emergency power, at an existing applicant
headquarters or district office, telecommunications switching or
multiplexing site, or at an industrial, commercial or agricultural
facility served by the applicant. A description of the facilities to be
constructed shall be provided to RUS;

\(22\) Construction of onsite facilities designed for the transfer of
ash, scrubber wastes, and other byproducts from coal-fired electric
generating stations for recycling or storage at an existing coal mine
(surface or underground). A description of the facilities to be
constructed shall be provided to RUS;

\(23\) Changes or additions to an existing water well system, including
new water supply wells and associated pipelines within the boundaries of
an existing well field or generating station site. A description of the
changes or additions shall be provided; and

\(24\) Repowering or uprating of an existing unit(s) at a fossil-fueled
generating station in order to improve the efficiency or the energy
output of the facility. Repowering or uprating that results in increased
fuel consumption or the substitution of one fuel combustion technology
with another is excluded from this classification.

\(25\) Electric generating facilities of less than 100 kilowatts at any
one site for the purpose of providing service to customers or facilities
such as stock tanks, oil wells, and irrigation pumps.

\(26\) New bulk commodity storage and associated handling facilities
within existing fossil-fueled generating station boundaries for the
purpose of co-firing biofuels and refuse derived fuel. A description of
the facilities to be constructed shall be provided to RUS.

\(c\) [Water and Waste Program]{.underline}. Applications for financial
assistance for certain proposed actions do not normally require the
submission of an ER. Applicants shall sufficiently identify all proposed
actions so their proper classification can be determined. These types of
actions are subject to the requirements of §1794.31. In order to provide
for extraordinary circumstances, RUS may require development of an ER
for proposals listed in this section. Proposed actions within this
classification are:

\(1\) Management actions relating to invitation for bids, award of
contracts, and the actual physical commencement of construction
activities;

\(2\) Proposed actions that primarily involve the purchase and
installation of office equipment or motorized vehicles;

\(3\) The award of financial assistance for technical assistance,
planning purposes, environmental analysis, management studies, or
feasibility studies; and

\(4\) Loan closing and servicing activities that do not alter the
purpose, operation, location, or design of the proposal as originally
approved, such as subordinations, amendments and revisions to approved
actions, and the provision of additional financial assistance for cost
overruns.

[§1794.22 Categorically excluded proposals requiring an ER.]{.underline}

\(a\) [Electric and Telecommunications Programs]{.underline}.
Applications for financial assistance for the types of proposed actions
listed in this section normally require the submission of an ER and are
subject to the requirements of §1794.32. Proposed actions within this
classification are:

\(1\) Construction of electric power lines and associated facilities
designed for or capable of operation at a nominal voltage of either:

\(i\) Less that 69 kilovolts (kV);

\(ii\) Less than 230 kV if no more than 25 miles (40.2 kilometers) of
line are involved; or

\(iii\) 230 kV or greater involving no more than three miles (4.8
kilometers) of line;

\(2\) Construction of buried and aerial telecommunications lines,
cables, and related facilities;

\(3\) Construction of microwave facilities, SCADA, and energy management
systems involving no more than five acres (2 hectares) of physical
disturbance at any single site;

\(4\) Construction of cooperative or company headquarters, maintenance
facilities, or other buildings involving no more than 10 acres (4
hectares) of physical disturbance or fenced property;

\(5\) Changes to existing transmission lines that involve less than 20
percent pole replacement, or the complete rebuilding of existing
distribution lines within the same ROW. Changes to existing transmission
lines that require 20 percent or greater pole replacement will be
considered the same as new construction;

\(6\) Changes or additions to existing substations, switching stations,
telecommunications switching or multiplexing centers, or external
changes to buildings or small structures requiring one acre (0.4
hectare) or more but no more than five acres (2 hectares) of new
physically disturbed land or fenced property;

\(7\) Construction of substations, switching stations, or
telecommunications switching or multiplexing centers requiring no more
than five acres (2 hectares) of new physically disturbed land or fenced
property;

\(8\) Construction of distributed generation totaling 10 MW or less at
an existing utility, industrial, commercial or educational facility
site. There is no capacity limit for a electric generating facility
located at or adjacent to an existing landfill site that is powered by
refuse derived fuel. All new associated facilities and related electric
power lines shall be covered in the ER;

\(9\) Installation of new generating units or the replacement of
existing generating units at a hydroelectric facility or dam which
result in no change in the normal maximum surface area or normal maximum
surface elevation of the existing impoundment. All new associated
facilities and related electric power lines shall be covered in the ER;

\(10\) Construction of new water supply wells and associated pipelines
not located within the boundaries of an existing well field or
generating station site; and

\(11\) Purchase of existing facilities or a portion thereof where use or
operation will remain unchanged. The results of a facility environmental
audit can be substituted for the ER.

\(12\) Installing a heat recovery steam generator and steam turbine with
a rating of 200 MW or less on an existing combustion turbine generation
site for the purpose of combined cycle operation. All new associated
facilities and related electric power lines shall be covered in the ER.

\(b\) [Water and Waste Program]{.underline}. For certain proposed
actions, applications for financial assistance normally require the
submittal of an ER as part of the PER. These types of actions are
subject to the requirements of §1794.32. Proposed actions within this
classification are:

\(1\) Rehabilitation of existing facilities, functional replacement or
rehabilitation of equipment, or the construction of new ancillary
facilities adjacent or appurtenant to existing facilities, including but
not limited to, replacement of utilities such as water or sewer lines
and appurtenances for existing users with modest or moderate growth
potential, reconstruction of curbs and sidewalks, street repaving, and
building modifications, renovations, and improvements;

\(2\) Facility improvements to meet current needs with a modest change
in use, size, capacity, purpose or location from the original facility.
The proposed action must be designed for predominantly residential use
with other new or expanded users being small-scale, commercial
enterprises having limited secondary impacts;

\(3\) Construction of new facilities that are designed to serve not more
than 500 EDUs and with modest growth potential. The proposed action must
be designed for predominantly residential use with other users being
small-scale, commercial enterprises having limited secondary impacts;

\(4\) The extension, enlargement or construction of interceptors,
collection, transmission or distribution lines within a one-mile
(1.6-kilometer) limit from existing service areas estimated from any
boundary listed as follows:

\(i\) The corporate limits of the community being served;

\(ii\) If there are developed areas immediately contiguous to the
corporate limits of a community, the limits of these developed areas; or

\(iii\) If an unincorporated area is to be served, the limits of the
developed areas;

\(5\) Installation of new water supply wells or water storage facilities
that are required by a regulatory authority or standard engineering
practice as a backup to existing production well(s) or as reserve for
fire protection;

\(6\) Actions described in §1794.21(c)(4) which alter the purpose,
operation, location, or design of the proposed action as originally
approved, and such alteration is equivalent in magnitude or type as
described in (b)(1) through (b)(5) of this section; and

(7) The lease or disposal of real property by RUS, which may result in a
    change in use of

the real property in the reasonably foreseeable future and such change,
is equivalent in magnitude or type as described in paragraph (b)(1)
through (b)(5).

\(c\) [Specialized criteria for not granting a CE for Water and Waste
Projects]{.underline}. An EA must be prepared if a proposed action
normally classified as a CE meets any of the following:

\(1\) Will either create a new or relocate an existing discharge to or a
withdrawal from surface or ground waters;

\(2\) Will result in substantial increases in the volume or the loading
of pollutants from an existing discharge to receiving waters;

\(3\) Will cause a substantial increase in the volume of withdrawal from
surface or ground waters at an existing site; or

\(4\) Would provide capacity to serve more than 500 EDUs or a 30 percent
increase in the existing population whichever is larger.

[§1794.23 Proposals normally requiring an EA.]{.underline}

RUS will normally prepare an EA for all proposed actions which are
neither categorical exclusions (§§1794.21 and 1794.22) nor normally
requiring an EIS (§1794.25). For certain actions within this class,
scoping and document procedures contained in §§1794.50 through 1794.54
shall be followed (see §1794.24). The following are proposed actions
which normally require an EA and shall be subject to the requirements of
§§1794.40 through 1794.44.

\(a\) [General]{.underline}. Issuance or modification of RUS regulations
concerning environmental matters.

\(b\) [Telecommunications and Water and Waste Programs]{.underline}. An
EA shall be prepared for applications for financial assistance for all
proposed actions not specifically defined as a CE or otherwise
specifically categorized by the Administrator on a case-by-case basis.

\(c\) [Electric Program]{.underline}. Applications for financial
assistance for certain proposed actions normally require the preparation
of an EA. Proposed actions falling within this classification are:

\(1\) Construction of fuel cell, combustion turbine, combined cycle, or
diesel generating facilities of 50 MW (nameplate rating) or less at a
new site (no existing generating capacity) except for items covered by
§1794.22(a)(8). All new associated facilities and related electric power
lines shall be covered in the EA;

\(2\) Construction of fuel cell, combustion turbine, combined cycle, or
diesel generating facilities of 100 MW (nameplate rating) or less at an
existing generating site, except for items covered by §1794.22(a)(8).
All new associated facilities and related electric power lines shall be
covered in the EA;

\(3\) Construction of any other type of new electric generating
facilities of 20 MW (nameplate rating) or less, except for items covered
by §1794.22(a)(8). All new associated facilities and related electric
power lines shall be covered in the EA;

\(4\) Repowering or uprating of an existing unit(s) at a fossil-fueled
generating station where the existing fuel combustion technology of the
affected unit(s) is substituted for another ([e.g]{.underline}. coal or
oil-fired boiler is converted to a fluidized bed boiler or replaced with
a combustion turbine unit);

\(5\) Installation of new generating units at an existing hydroelectric
facility or dam, or the replacement of existing generating units at a
hydroelectric facility or dam which will result in a change in the
normal maximum surface area or normal maximum surface elevation of the
existing impoundment. All new associated facilities and related electric
power lines shall be covered in the EA;

\(6\) A new drilling operation or the expansion of a mining or drilling
operation;

\(7\) Construction of cooperative headquarters, maintenance, and
equipment storage facilities involving more than 10 acres (4 hectares)
of physical disturbance or fenced property;

\(8\) The construction of electric power lines and related facilities
designed for and capable of operation at a nominal voltage of 230 kV or
more involving more than three miles (4.8 kilometers) but not more than
25 miles (40 kilometers) of line;

\(9\) The construction of electric power lines and related facilities
designed for or capable of operation at a nominal voltage of 69 kV or
more but less than 230 kV where more than 25 miles (40 kilometers) of
power line are involved;

\(10\) The construction of substations or switching stations requiring
greater than five acres (2 hectares) of new physical disturbance at a
single site; and

\(11\) Construction of facilities designed for the transfer and storage
of ash, scrubber wastes, and other byproducts from coal-fired electric
generating stations that will be located beyond the existing facility
site boundaries.

\(12\) Installing a heat recovery steam generator and steam turbine with
a rating of more than 200 MW on an existing combustion turbine
generation site for the purpose of combined cycle operation. All new
associated facilities and related electric power lines shall be covered
in the EA.

\(13\) Construction of a natural gas pipeline to serve an existing
gas-fueled generating facility.

[§1794.24 Proposals normally requiring an EA with scoping.]{.underline}

\(a\) [General]{.underline}. Applications for financial assistance for
certain proposed actions require the use of a scoping procedure in the
development of the EA. These types of actions are subject to the
requirements of §§1794.50 through 1794.54. RUS has the discretion to
modify or waive the requirements listed in §1794.52 for a proposed
action in this category.

\(b\) [Electric Program]{.underline}. Proposed actions falling within
this classification are:

\(1\) The construction of electric power lines and related facilities
designed for and capable of operation at a nominal voltage of 230 kV or
more where more than 25 miles (40 kilometers) of power line are
involved;

\(2\) Construction of fuel cell, combustion turbine, combined cycle, and
diesel generating facilities of more than 50 MW at a new site or more
than 100 MW at an existing site; and the construction of any other type
of electric generating facility of more than 20 MW but not more than 50
MW (nameplate rating). All new associated facilities and related
electric power lines shall be covered in any EA or EIS that is prepared.

\(c\) [Telecommunications and Water and Waste Programs]{.underline}.
There are no actions normally falling within this classification.

[§1794.25 Proposals normally requiring an EIS.]{.underline}

Applications for financial assistance for certain proposed actions that
may significantly affect the quality of the human environment shall
require the preparation of an EIS.

\(a\) [Electric Program]{.underline}. An EIS will normally be required
in connection with proposed actions involving the following types of
facilities:

\(1\) New electric generating facilities of more than 50 MW (nameplate
rating) other than, fuel cell, combustion turbine, combined cycle, or
diesel generators. All new associated facilities and related electric
power lines shall be covered in the EIS; and

\(2\) A new mining operation when the applicants have effective control
(*e.g.,* dedicated mine or purchase of a substantial portion of the
mining equipment).

\(b\) Proposals listed above are subject to the requirements of
§§1794.60, 1794.61, 1794.63, and 1794.64. Preparation of a supplemental
draft or final EIS in accordance with 40 CFR 1502.9 shall be subject to
the requirements of §§1794.62 and 1794.64.

\(c\) [Telecommunications and Water and Waste Programs]{.underline}. No
groups or sets of proposed actions normally require the preparation of
an EIS. The environmental review process, as described in this part,
shall be used to identify those proposed actions for which the
preparation of an EIS is necessary. If an EIS is required, RUS shall
proceed directly to its preparation. Prior completion of an EA is not
mandatory.

[§§1794.26 - 1794.29 \[Reserved\]]{.underline}

**Subpart D - Procedure for Categorical Exclusions**

[§1794.30 General.]{.underline}

The procedures of this subpart which apply to proposed actions
classified as CEs in §§1794.21 and 1794.22 provide RUS with information
necessary to determine if the proposed action meets the criteria for a
CE. Where, because of extraordinary circumstances, a normally
categorically excluded action may have a significant effect on the
quality of the human environment, RUS may require additional
environmental documentation.

[§1794.31 Classification.]{.underline}

\(a\) [Electric and Telecommunications Programs]{.underline}. RUS will
normally determine the proper environmental classification of projects
based on its evaluation of the project description set forth in the
construction work plan or loan design which the applicant is required to
submit with its application for financial assistance. Each project must
be sufficiently described to ensure its proper classification. RUS may
require the applicant to provide additional information on a project
where appropriate.

\(b\) [Water and Waste Program]{.underline}. RUS will normally determine
the proper environmental classification for projects based on its
evaluation of the preliminary planning and design information.

[§1794.32 Environmental report.]{.underline}

\(a\) For proposed actions listed in §1794.21(b) and (c), the applicant
is normally not required to submit an ER.

\(b\) For proposed actions listed in §1794.22(a) and (b), the applicant
shall normally submit an ER. Guidance in preparing the ER for Electric
and Telecommunication proposals is contained in RUS Bulletin 1794A-600.
Guidance in preparing the ER for Water and Waste proposals is contained
in RUS Bulletin 1794A-602. The applicant may be required to publish
public notices and provide evidence of such if the proposed action is
located in, impacts, or converts important land resources.

[§1794.33 Agency action.]{.underline}

RUS may act on an application for financial assistance upon determining,
based on the review of documents as set forth in §1794.32 and such
additional information as RUS deems necessary, that the project is
categorically excluded.

[§§1794.34 - 1794.39 \[Reserved\]]{.underline}

**Subpart E - Procedure for Environmental Assessments**

[§1794.40 General.]{.underline}

This subpart applies to proposed actions described in §1794.23. Where
appropriate to carry out the purposes of NEPA, RUS may impose, on a
case-by-case basis, additional requirements associated with the
preparation of an EA. If at any point in the preparation of an EA, RUS
determines that the proposed action will have a significant effect on
the quality of the human environment, the preparation of an EIS shall be
required and the procedures in subpart G of this part shall be followed.

[§1794.41 Document requirements.]{.underline}

Applicants will provide an ER in accordance with the appropriate
guidance documents referenced in §1794.7. After RUS has evaluated the ER
and has determined the ER adequately addresses all applicable
environmental issues, the ER will normally serve as RUS' EA. However,
RUS reserves the right to prepare its own EA from the information
provided in the ER. RUS will take responsibility for the scope and
content of an EA.

[§1794.42 Notice of availability.]{.underline}

Prior to RUS making a finding in accordance with §1794.43 and upon RUS
authorization and guidance, the applicant shall have a notice published
which announces the availability of the EA and solicits public comments
on the EA.

[§1794.43 Agency finding.]{.underline}

If RUS finds, based on an EA that the proposed action will not have a
significant effect on the quality of the human environment, RUS will
prepare a FONSI. Upon authorization of RUS, the applicant shall have a
notice published which informs the public of the RUS finding and the
availability of the EA and FONSI. The notice shall be prepared and
published in accordance with RUS guidance.

[§1794.44 Timing of agency action.]{.underline}

RUS may take its final action on proposed actions requiring an EA
(§1794.23) at any time after publication of the applicant notices that a
FONSI has been made and any required review period has expired. When
substantive comments are received on the EA, RUS may provide an
additional period (15 days) for public review following the publication
of its FONSI determination. Final action shall not be taken until this
review period has expired.

[§§1794.45 - 1794.49 \[Reserved\]]{.underline}

**Subpart F - Procedure for Environmental Assessments With Scoping**

[§1794.50 Normal sequence.]{.underline}

For proposed actions covered by §1794.24 and other actions determined by
the Administrator to require an EA with Scoping, RUS and the applicant
will follow the same procedures for scoping and the requirements for
notices and documents as for proposed actions normally requiring an EIS
through the point where project scoping has been completed. Following
project scoping, RUS will make a judgment to have an EA prepared or
contract for the preparation of an EIS.

[§1794.51 Preparation for scoping.]{.underline}

\(a\) As soon as practicable after RUS and the applicant have developed
a schedule for the environmental review process, RUS shall have its
notice of intent to prepare an EA or EIS and schedule scoping meetings
(§1794.13) published in the [Federal Register]{.underline} (see 40 CFR
1508.22). The applicant shall have published, in a timely manner, a
notice similar to RUS' notice.

\(b\) As part of the early planning, the applicant should consult with
appropriate Federal, state, and local agencies to inform them of the
proposed action, identify permits and approvals which must be obtained,
and administrative procedures which must be followed.

\(c\) Before formal scoping is initiated, RUS will require the applicant
to submit an Alternative Evaluation Study and either a Siting Study
(generation) or a Macro-Corridor Study (transmission lines).

\(d\) The applicant is encouraged to hold public information meetings in
the general location of the proposed action and any reasonable
alternatives when such applicant meetings will make the scoping process
more meaningful. A written summary of the comments made at such meetings
must be submitted to RUS as soon as practicable after the meetings.

[§1794.52 Scoping meetings.]{.underline}

\(a\) Both RUS and the applicant shall have a notice published which
announces a public scoping meeting is to be conducted, either in
conjunction with the notice of intent or as a separate notice.

\(b\) The RUS notice shall be published in the Federal Register at least
14 days prior to the meeting(s). The applicant's notice shall be
published in a newspaper at least 10 days prior to the meeting(s). Other
forms of media may also be used by the applicant to notice the meetings.

\(c\) Where an environmental document is the subject of the hearing or
meeting, that document will be made available to the public at least 10
days in advance of the meeting.

\(d\) The scoping meeting(s) will be held in the area of the proposed
action at such place(s) as RUS determines will best afford an
opportunity for public involvement. Any person or representative of an
organization, or government body desiring to make a statement at the
meeting may make such statement in writing or orally. The format of the
meeting may be one of two styles. It can either be of the traditional
style which features formal presentations followed by a comment period,
or the open house style in which attendees are able to individually
obtain information on topics or issues of interest within an established
time period. The applicant or its consultant shall prepare a record of
the scoping meeting. The record shall consist of a transcript when a
traditional meeting format is used or a summary report when an open
house format is used.

\(e\) As soon as practicable after the scoping meeting(s), RUS, as lead
agency, shall determine the significant issues to be analyzed in depth
and identify and eliminate from detailed study the issues which are not
significant or which have been covered by prior environmental review.
RUS will develop a proposed scope for further environmental study and
review. RUS shall send a copy of this proposed scope to cooperating
agencies and the applicant, and allow recipients 30 days to comment on
the scope's adequacy and emphasis. After expiration of the 30-day
period, RUS shall provide written guidance to the applicant concerning
the scope of environmental study to be performed and information to be
gathered.

[§1794.53 Environmental report.]{.underline}

\(a\) After scoping procedures have been completed, RUS shall require
the applicant to develop and submit an ER. The ER shall be prepared
under the supervision and guidance of RUS staff and RUS shall evaluate
and be responsible for the accuracy of all information contained
therein.

\(b\) The applicant\'s ER will normally serve as the RUS EA. After RUS
has reviewed and found the ER to be satisfactory, the applicant shall
provide RUS with a sufficient number of copies of the ER to satisfy the
RUS distribution plan.

\(c\) The ER shall include a summary of the construction and operation
monitoring and mitigation measures for the proposed action. These
measures may be revised as appropriate in response to comments and other
information, and shall be incorporated by summary or reference into the
FONSI.

[§1794.54 Agency determination.]{.underline}

Following the scoping process and the development of a satisfactory ER
by the applicant or its consultant that will serve as the agency\'s EA,
RUS shall determine whether the proposed action is a major Federal
action significantly affecting the quality of the human environment. If
RUS determines the action is significant, RUS will continue with the
procedures in subpart G of this part. If RUS determines the action is
not significant, RUS will proceed in accordance with §§1794.42 through
1794.44. For proposals subject to the procedures of subpart F, RUS shall
publish notices in the Federal Register that announce the availability
of the EA and solicit public comments on the EA (refer to §1794.42) and
the RUS finding and the availability of the EA and FONSI (refer to
§1794.43).

[§§1794.55 - 1794.59 \[Reserved\]]{.underline}

**Subpart G - Procedure for Environmental Impact Statements**

[§1794.60 Normal sequence.]{.underline}

For proposed actions requiring an EIS (see §1794.25), the NEPA process
shall proceed in the same manner as for proposed actions requiring an EA
with scoping through the point at which the scoping process is completed
(see §1794.52).

[§1794.61 Environmental impact statement.]{.underline}

An EIS shall be prepared in accordance with 40 CFR part 1502. Funding,
in whole or in part, for an EIS can be obtained from any lawful source
([e.g]{.underline}., cooperative agreements developed in accordance with
Section 759A, Federal Agricultural Improvement and Reform Act of 1996,
Pub. L. 104-127 and 31 U.S.C. 6301). A third-party consultant selected
by RUS and funded by the applicant (7 CFR part 1789) may prepare the
EIS.

\(a\) After a draft or final EIS has been prepared, RUS and the
applicant shall concurrently have a notice of availability for the
document published. The time period allowed for review will be a minimum
of 45 days for a draft EIS and 30 days for a final EIS. This period is
measured from the date that the U.S. Environmental Protection Agency
(EPA) publishes a notice in the [Federal Register]{.underline} in
accordance with 40 CFR 1506.10.

\(b\) In addition to circulation required by 40 CFR 1502.19, the draft
and final EIS (or summaries thereof, at RUS discretion) shall be
circulated to the appropriate state, regional, and metropolitan
clearinghouses.

\(c\) Where a final EIS does not require substantial changes from the
draft EIS, RUS may document required changes through errata sheets,
insertion pages, and revised sections to be incorporated into the draft
EIS. In such cases, RUS shall circulate such changes together with
comments on the draft EIS, responses to comments, and other appropriate
information as its final EIS. RUS will not circulate the draft EIS
again, although RUS will provide the draft EIS if requested within 30
days of publication of notice of availability of the final EIS.

[§1794.62 Supplemental EIS.]{.underline}

\(a\) A supplement to a draft or final EIS shall be prepared,
circulated, and given notice by RUS and the applicant in the same manner
(exclusive of scoping) as a draft and final EIS (see §1794.61).

\(b\) Normally RUS and the applicant will have published notices of
intent to prepare a supplement to a final EIS in those cases where a ROD
has already been issued.

\(c\) RUS, at its discretion, may issue an information supplement to a
final EIS where RUS determines that the purposes of NEPA are furthered
by doing so even though such supplement is not required by 40 CFR
1502.9(c)(1). RUS and the applicant shall concurrently have a notice of
availability published. The notice requirements shall be the same as for
a final EIS and the information supplement shall be circulated in the
same manner as a final EIS. RUS shall take no final action on any
proposed modification discussed in the information supplement until 30
days after the RUS notice of availability or the applicant 's notice is
published, whichever occurs later.

[§1794.63 Record of decision.]{.underline}

\(a\) Upon completion of the review period for a final EIS, RUS will
have its ROD prepared in accordance with 40 CFR 1505.2.

\(b\) Separate RUS and applicant notices of availability shall be
published concurrently. The notices shall summarize the RUS decision and
announce the availability of the ROD. Copies of the ROD will be made
available upon request from the point of contact identified in the
notice.

[§1794.64 Timing of agency action.]{.underline}

\(a\) RUS may take its final action or execute commitments on proposed
actions requiring an EIS or Supplemental EIS at any time after the ROD
has been published.

\(b\) For budgetary purposes some financial assistance may be approved
conditionally with a stipulation that no funds shall be advanced until a
ROD has been prepared.

[§§1794.65 - 1794.69 \[Reserved\]]{.underline}

**Subpart H - Adoption of Environmental Documents**

[§1794.70 General]{.underline}

This subpart covers the adoption of environmental documents prepared by
other Federal agencies. Where applicants participate in proposed actions
for which an EA or EIS has been prepared by or for another Federal
agency, RUS may adopt the existing EA or EIS in accordance with 40 CFR
1506.3.

[§1794.71 Adoption of an EA.]{.underline}

RUS may adopt a Federal EA or EIS or a portion thereof as its EA. RUS
shall make the EA available and assure that notice is provided in the
same manner as if RUS had prepared the EA.

[§1794.72 Adoption of an EIS.]{.underline}

\(a\) Where RUS determines that an existing Federal EIS requires
additional information to meet the standards for an adequate statement
for RUS proposed action, RUS may adopt all or a portion of the EIS as a
part of its draft EIS. The circulation and notice provisions for a draft
and final EIS (see §1794.61) apply.

\(b\) If RUS was not a cooperating agency but determines that another
Federal agency's EIS is adequate, RUS shall adopt that agency's EIS as
its final EIS. RUS and the applicant shall have separate notices
published advising of RUS adoption of the EIS and independent
determination of its adequacy.

\(c\) If the adopted EIS is generally available and meets RUS standards,
RUS shall have a public notice published informing the public of its
action and availability of the EIS to interested parties upon request.
If the adopted EIS is not generally available, RUS shall have a public
notice published informing the public of its action and will circulate
copies of the EIS in accordance with 40 CFR 1502.19 and 40 CFR 1506.3.

[§1794.73 Timing of agency action.]{.underline}

Where RUS has adopted another agency's environmental documents, the
timing of the action shall be subject to the same requirements as if RUS
had prepared the required EA or EIS.

[§1794.74 Incorporation of environmental materials.]{.underline}

RUS may incorporate into its environmental documents, environmental
documents or portions thereof prepared by state, or local agencies or
other parties for purposes other than compliance with the requirements
of NEPA. RUS will circulate the incorporated documents as a part of its
EA or draft and final EIS in the same manner as if prepared by RUS.

[§1794.75 - 1794.79 \[Reserved\]]{.underline}