7 CFR Part 1794 - RUS Environmental Policies & Procedures

| RUS is pleased to announce the publication of its    final rule on "Environmental Policies and Procedures,"    7 CFR Part 1794. The rule was published in the Federal Register on    December 11, 1998, which is also the effective date of the final rule. The    previous version of 7 CFR Part 1794, dated March 13, 1984, has    been rescinded.

The Federal Register version of the final rule    (7 CFR Part 1794) can be downloaded from the RUS web site at:    www.usda.gov/rus/regs.shtml under Electric Program Regulations and Bulletins. The final    rule exclusive of the preamble and responses to comments can be downloaded from the same    web site.

Most of the changes to 7 CFR Part 1794 result from the    addition of Water and Environmental Programs, that formerly belonged to the Farmers Home    Administration, to RUS. Actions and procedures specific to that program are defined in    separate subsections of the final rule.

The final rule contains a variety of substantive and procedural changes    from the provisions of the previous rule that affect Electric Borrowers. Those changes are    identified by section as follows:

Subpart A - General

�1794.3 Actions requiring environmental review

Only borrower actions that require the approval of financing assistance        are subject to environmental review. Specifically excluded are approvals pursuant to loan        contracts and security instruments (*e.g*., approval of the use of general funds        where no RUS reimbursement will be requested) and approvals of lien accommodations.

�1794.4 Metric units

Environmental documents prepared by or for an electric borrower should        use non-metric equivalents (British system) followed by metric units in parentheses or a        metric conversion table as an appendix. All numerical designations have been rounded to        the nearest whole number. This is a reversal of previous policy.

�1794.6 Definitions

This is a new section that defines some of the terminology used in the        regulation. Note that the environmental document submitted by electric borrowers for        projects that are normally categorically excluded or require an environmental assessment        without scoping is now called an Environmental Report (ER). In the previous rule the        document was called a Borrower’s Environmental Report (BER).

�1794.7 Guidance

The two environmental guide bulletins that were issued in        November 1993 and April 1995, respectively, have been revised and updated to        accompany the final rule. Both environmental guidance bulletins can be downloaded from the        RUS web site under Electric Program Regulations and Bulletins. The two bulletins are now        titled:

RUS Bulletin 1794A-600 – Guide for Preparing an Environmental            Report for Categorically Excluded Projects.

RUS Bulletin 1794A-601 – Guide for Preparing the Environmental            Report for Electric Projects Requiring an Environmental Assessment.

Subpart B – Implementation of the National Environmental Policy    Act

�1794.11 Apply NEPA early in the planning process.

Where a proposed action normally requires the preparation of an        Environmental Impact Statement (EIS), it is imperative that the borrower consults with RUS        prior to obtaining the services of an environmental consultant. The Council on        Environmental Quality (CEQ) Regulations in �1506.5(c) stipulate when an EIS is to be        prepared by a contractor, that contractor be chosen solely by the lead agency, with the        cooperation of the cooperating agencies, or by a cooperating agency to avoid any conflict        of interest.

It is also imperative that borrower’s notify and consult with the        appropriate Branch within the Power Supply Division (PSD) of RUS on all Environmental        Analysis (EA) with Scoping and EIS projects. The Engineering and Environmental Staff needs        authorization from PSD before staff can proceed with the environmental review for        proposals in these two categories.

Subpart C – Classification of Proposals

�1794.21  Categorically excluded proposals without an ER.

(b)  Electric and Telecommunications Programs

The following three actions were deleted in the new regulation and are        no longer considered actions subject to environmental review:

(2)  Routine approvals made pursuant to loan security            documents (*e.g.,* contracts for bulk commodities, goods and services, capital credit            retirements, and technical design or specifications).

(3)  Agreements for transmission, wheeling, interconnection            with, power purchases from, or sale to other utilities where no associated borrower            construction or financing of construction is involved.

(6)  Fuel or mineral contracts where the borrower does not            have effective control over or responsibility to alter the development of the specific            fuel or mineral source (*e.g.,* the mine).

The following five actions that previously required a BER, normally do        not require an ER under the new regulation:

(14)  Rebuilding of power lines or telecommunications cables            where road or highway reconstruction requires the applicant to relocate the lines either            within or immediately adjacent to the new road or highway easement or right-of-way.

(15)  Phase or voltage conversions, reconductoring or            upgrading of existing electric distribution lines, or telecommunication facilities.

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

(19)  Additional bulk commodity storage (*e.g.,* 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.

The following six new actions have been added to this category:

(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.

(18)  Construction of a battery energy storage system at an            existing generating station or substation site.

(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.

(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).

(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.

(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.

Note that a description of the facilities to be constructed shall be        provided to RUS for Items (14), (15), (16), (18), (20), (21), (22), and (23). 

�1794.22  Categorically excluded proposals requiring an ER.

(a) Electric and Telecommunications Programs

The following action that previously required an EA requires an ER        under the final rule.

(7)  Construction of substations, switching stations, or            telecommunications switching or multiplexing centers requiring no more than 5 acres (2            hectares) of new physically disturbed land or fenced property.

The following new actions have been added to this category:

(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

(8)  Construction of diesel electric generating facilities of            5 megawatts (MW) (nameplate rating) or less either at an existing generation or            substation sites. This category also applies to a diesel electric generating facility of            5 MW or less that is located at or adjacent to an existing landfill site and supplied            with refuse derived fuel. 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.

The acreage threshold for new headquarters (item #4) has been increased        from 5 acres (2 hectares) to 10 acres (4 hectares).

The capacity thresholds for diesel generation facilities (item #8) have        been modified and the capacity thresholds for hydroelectric proposals have been        eliminated.

�1794.23  Proposals normally requiring an EA.

(c)  Electric Program

The following new action has been added to this category:

(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.* coal or oil-fired boiler is            converted to a fluidized bed boiler or replaced with a combustion turbine unit).

The acreage threshold for new headquarters (item # 7) has been        increased to greater than 10 acres (4 hectares).

The capacity thresholds for combustion turbine or diesel generation        have been modified to differentiate between new sites (50 MW or less) and existing        sites (100 MW or less).

Capacity thresholds for hydroelectric proposals have been eliminated.

��1794.24 and 1794.25

Acreage and capacity threshold changes within �1794.24, and a capacity        threshold change within �1794.25 reflect changes that have been made in ��1794.22(a),        and 1794.23(c).

Other Procedural Changes

Subpart D - Procedure for Categorical Exclusions

Each project must be sufficiently described to ensure its proper            environmental classification. Sufficient information for this purpose is normally provided            in the project description included in the construction work plan. There are            13 actions in �1794.21(b) that require additional information. The purpose is to            ensure that construction and operation of the facilities covered by these actions will not            impact important resources.

Subpart E – Procedure for Environmental Assessments

The EA will be the subject document of the notice of availability            requirements in �1794.42, where previously, the applicant’s BER or the Environmental            Analysis (EVAL) was the subject document. With this change, the notice requirements for            all three programs will be consistent for both EA proposals and EA with scoping proposals.            This change will encourage more public involvement by allowing public review of EA            proposals prior to the issuance of a Finding of No Significant Impact (FONSI). Normally,            there will be no comment period following the issuance of the FONSI as was required for            scoping proposals under the previous regulation.

Subpart F – Procedure for Environmental Assessments with Scoping

The notice requirements for Electric program projects that require            scoping have been changed. The timing of RUS *Federal Register* notice for public            scoping meetings in �1794.52(b) has been reduced from 30 days to 14 days prior            to the meeting. No appreciable benefit resulted from the earlier notice requirement.

Scoping documents must be made available to the public at least            10 days in advance of the meeting. The meeting format can be either the traditional            (formal presentation) style or the open house style.

The previous rule allowed RUS to accept the applicant’s BER as its            EA but required RUS to prepare its own EA from the applicant’s EVAL where a proposed            action requires scoping. This requirement has been changed to allow RUS accept the EVAL as            its EA. (See �1794.53.)

Subpart G – Procedure for Environmental Impact Statements

The policy regarding the use of a contractor prepared EIS has been            modified. Under the previous rule, RUS was required to use agency funds if an independent            contractor was chosen by RUS to prepare the EIS. In accordance with the provisions of            7 CFR Part 1789, "Use of Consultants Funded by Applicants" and            Section 759A of the Federal Agriculture Improvement and Reform Act of 1996,            preparation of a draft or final EIS by an independent contractor can be funded by the            applicant, provided the consultant is selected by RUS.

A new requirement, publication of a notice of availability by RUS and            the applicant for a Record of Decision, is established in �1794.63.

If you would like more information or have any questions, please call    Larry Wolfe, Senior Environmental Protection Specialist, Engineering and Environmental    Staff, at (202) 720-5093, E-mail: [email protected].
 

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