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[Code of Federal Regulations]
[Title 7, Volume 11, Parts 1600 to 1899]
[Revised as of January 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1794]

[Page 1048-1063]
 
PART 1794--ENVIRONMENTAL POLICIES AND PROCEDURES

                           Subpart A--General

Sec.
1794.1  Purpose.
1794.2  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 Statements

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., 42 U.S.C. 4321 et seq.; 40 CFR 
Parts 1500-1508.

    Source: 63 FR 68655, Dec. 11, 1998, unless otherwise noted.

                           Subpart A--General

Sec. 1794.1  Purpose.

    (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

[[Page 1049]]

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.

Sec. 1794.2  Authority.

    (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., p. 
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.

Sec. 1794.3  Actions requiring environmental review.

    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.

Sec. 1794.4  Metric units.

    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.

Sec. 1794.5  Responsible officials.

    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. The appropriate 
Assistant Administrator is responsible for ensuring compliance with this 
**part** for the respective programs.
    (b) Water and waste program. 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.

[[Page 1050]]

Sec. 1794.6  Definitions.

    The following definitions, as well as the definitions contained in 
40 CFR **part** 1508 of the CEQ regulations, apply to the implementation of 
this **part**:
    Applicant. 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). The document required by 7 CFR **part** 
1710.
    Emergency situation. A natural disaster or system failure that may 
involve an immediate or imminent threat to public health, safety, or the 
human environment.
    Environmental Analysis (EVAL). The document submitted by the 
applicant for proposed actions subject to compliance with Sec. 1794.24 
and under special circumstances Sec. 1794.25.
    Environmental Report (ER). The environmental documentation normally 
submitted by applicants for proposed actions subject to compliance with 
Secs. 1794.22 and 1794.23. 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. Any one or all of the levels of environmental 
analysis described under subpart C of this **part**.
    Equivalent Dwelling Unit (EDU). Level of water or waste service 
provided to a typical rural residential dwelling.
    Important land resources. 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, DC 20250.
    Loan design. Document required by 7 CFR **part** 1737.
    Multiplexing center. 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. 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). 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). Electronic 
monitoring and control equipment installed at electric substations and 
switching stations.
    Third party consultant. A party selected by RUS to prepare the EIS 
for proposed actions described in Sec. 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)).

Sec. 1794.7  Guidance.

    (a) Electric and telecommunications programs. 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) (Sec. 1794.22(a)) and 
RUS Bulletin 1794A-601 provides guidance in preparing the ER for 
proposed actions which require EAs (Sec. 1794.23(b) Telecommunications 
only and (c));. Copies of these bulletins are available upon request by 
contacting Rural Utilities Service, Publications Office, PDRA, Stop 
1522; 1400 Independence Avenue, SW; Washington, DC 20250-1522.

[[Page 1051]]

    (b) Water and waste program. RUS Bulletin 1794A-602 provides 
guidance in preparing the ER for proposed actions classified as CEs 
(Sec. 1794.22(b)) and EAs (Sec. 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.

Secs. 1794.8-1794.9  [Reserved]

   Subpart B--Implementation of the National Environmental Policy Act

Sec. 1794.10  Applicant responsibilities.

    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.

Sec. 1794.11  Apply NEPA early in the planning process.

    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.

Sec. 1794.12  Consideration of alternatives.

    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.

Sec. 1794.13  Public involvement.

    (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 Sec. 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

[[Page 1052]]

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 
(Sec. 1794.24) or an EIS (Sec. 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. In all cases, RUS may publish notices in the Federal 
Register as appropriate.

Sec. 1794.14  Interagency involvement and coordination.

    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.

Sec. 1794.15  Limitations on actions during the NEPA process.

    (a) General. 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).
    (b) Electric program. 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.

[[Page 1053]]

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.

Sec. 1794.16  Tiering.

    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).

Sec. 1794.17  Mitigation.

    (a) General. 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. (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.

Secs. 1794.18-1794.19  [Reserved]

                 Subpart C--Classification of Proposals

Sec. 1794.20  Control.

    Electric and telecommunications programs. For environmental review 
purposes, RUS has identified and established categories of proposed 
actions (Secs. 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.

Sec. 1794.21  Categorically excluded proposals without an ER.

    (a) General. Certain types of actions taken by RUS do not normally 
require

[[Page 1054]]

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. 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 Sec. 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., 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., 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., 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 Sec. 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;

[[Page 1055]]

    (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., 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.
    (c) Water and waste program. 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 Sec. 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.

[[Page 1056]]

Sec. 1794.22  Categorically excluded proposals requiring an ER.

    (a) Electric and telecommunications programs. 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 Sec. 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 diesel electric generating facilities of five 
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 five 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;
    (9) Additions to 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.
    (b) Water and waste program. 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 Sec. 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-

[[Page 1057]]

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 Sec. 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 paragraphs (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 paragraphs (b)(1) through (b)(5).
    (c) Specialized criteria for not granting a CE for water and waste 
projects. 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.

Sec. 1794.23  Proposals normally requiring an EA.

    RUS will normally prepare an EA for all proposed actions which are 
neither categorical exclusions (Secs. 1794.21 and 1794.22) nor normally 
requiring an EIS (Sec. 1794.25). For certain actions within this class, 
scoping and document procedures contained in Secs. 1794.50 through 
1794.54 shall be followed (see Sec. 1794.24). The following are proposed 
actions which normally require an EA and shall be subject to the 
requirements of Secs. 1794.40 through 1794.44.
    (a) General. Issuance or modification of RUS regulations concerning 
environmental matters.
    (b) Telecommunications and water and waste programs. 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. 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 combustion turbine or diesel generating 
facilities of 50 MW (nameplate rating) or less at a new site (no 
existing generating capacity) except for items covered by 
Sec. 1794.22(a)(8). All new associated facilities and related electric 
power lines shall be covered in the EA;
    (2) Construction of combustion turbine or diesel generating 
facilities of 100 MW (nameplate rating) or less at an existing 
generating site, except for items covered by Sec. 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 10 MW (nameplate rating) or less. All new associated 
facilities and related electric power lines shall be covered in the EA;

[[Page 1058]]

    (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);
    (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.

Sec. 1794.24  Proposals normally requiring an EA with scoping.

    (a) General. 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 Secs. 1794.50 through 1794.54. RUS has the discretion to 
modify or waive the requirements listed in Sec. 1794.52 for a proposed 
action in this category.
    (b) Electric program. 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 combustion turbines and diesel generators 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 10 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. There are no 
actions normally falling within this classification.

Sec. 1794.25  Proposals normally requiring an EIS.

    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. 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 diesel generators or combustion turbines. 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 
Secs. 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 Secs. 1794.62 and 1794.64.

[[Page 1059]]

    (c) Telecommunications and water and waste programs. 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.

Secs. 1794.26-1794.29  [Reserved]

             Subpart D--Procedure for Categorical Exclusions

Sec. 1794.30  General.

    The procedures of this subpart which apply to proposed actions 
classified as CEs in Secs. 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.

Sec. 1794.31  Classification.

    (a) Electric and telecommunications programs. 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. RUS will normally determine the proper 
environmental classification for projects based on its evaluation of the 
preliminary planning and design information.

Sec. 1794.32  Environmental report.

    (a) For proposed actions listed in Sec. 1794.21(b) and (c), the 
applicant is normally not required to submit an ER.
    (b) For proposed actions listed in Sec. 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.

Sec. 1794.33  Agency action.

    RUS may act on an application for financial assistance upon 
determining, based on the review of documents as set forth in 
Sec. 1794.32 and such additional information as RUS deems necessary, 
that the project is categorically excluded.

Secs. 1794.34-1794.39  [Reserved]

           Subpart E--Procedure for Environmental Assessments

Sec. 1794.40  General.

    This subpart applies to proposed actions described in Sec. 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.

Sec. 1794.41  Document requirements.

    Applicants will provide an ER in accordance with the appropriate 
guidance documents referenced in Sec. 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.

Sec. 1794.42  Notice of availability.

    Prior to RUS making a finding in accordance with Sec. 1794.43 and 
upon RUS authorization and guidance, the applicant shall have a notice 
published

[[Page 1060]]

which announces the availability of the EA and solicits public comments 
on the EA.

Sec. 1794.43  Agency finding.

    (a) General. 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.
    (b) Electric and telecommunications programs. RUS shall have a 
notice published in the Federal Register that announces the availability 
of the EA and FONSI.

Sec. 1794.44  Timing of agency action.

    RUS may take its final action on proposed actions requiring an EA 
(Sec. 1794.23) at any time after publication of the RUS and 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.

Secs. 1794.45-1794.49  [Reserved]

     Subpart F--Procedure for Environmental Assessments With Scoping

Sec. 1794.50  Normal sequence.

    For proposed actions covered by Sec. 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 at which the Environmental Analysis 
(EVAL) is submitted (see Sec. 1794.54). After the EVAL has been 
submitted, RUS will make a judgment to utilize the EVAL as its EA and 
issue a FONSI or prepare an EIS.

Sec. 1794.51  Preparation for scoping.

    (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 (Sec. 1794.13) 
published in the Federal Register (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.

Sec. 1794.52  Scoping meetings.

    (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

[[Page 1061]]

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. A transcript will be made of the scoping 
meeting.
    (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.

Sec. 1794.53  Environmental analysis.

    (a) After scoping procedures have been completed, RUS shall require 
the applicant to develop and submit an EVAL. The EVAL 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 EVAL will normally serve as the RUS EA. The EVAL can also 
serve as the basis for an EIS, and under such circumstances will be made 
an appendix to the EIS. After RUS has reviewed and found the EVAL to be 
satisfactory, the applicant shall provide RUS with a sufficient number 
of copies of the EVAL to satisfy the RUS distribution plan.
    (c) The EVAL 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 or ROD.

Sec. 1794.54  Agency determination.

    Following the scoping process and the development of a satisfactory 
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 Secs. 1794.42 
through 1794.44.

Secs. 1794.55-1794.59  [Reserved]

        Subpart G--Procedure for Environmental Impact Statements

Sec. 1794.60  Normal sequence.

    For proposed actions requiring an EIS (see Sec. 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 Sec. 1794.52).

Sec. 1794.61  Environmental impact statement.

    (a) General. 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., 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.
    (1) 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

[[Page 1062]]

Federal Register in accordance with 40 CFR 1506.10.
    (2) 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.
    (3) 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.
    (b) Electric program. Where the applicant or its consultant has 
prepared an EVAL, RUS will develop its draft and final EIS from the 
EVAL. An EVAL will not be required if a third-party consultant prepares 
the draft and final EIS.

Sec. 1794.62  Supplemental EIS.

    (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 Sec. 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.

Sec. 1794.63  Record of decision.

    (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.

Sec. 1794.64  Timing of agency action.

    (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.

Secs. 1794.65-1794.69  [Reserved]

             Subpart H--Adoption of Environmental Documents

Sec. 1794.70  General.

    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.

Sec. 1794.71  Adoption of an EA.

    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.

Sec. 1794.72  Adoption of an EIS.

    (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

[[Page 1063]]

its draft EIS. The circulation and notice provisions for a draft and 
final EIS (see Sec. 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.

Sec. 1794.73  Timing of agency action.

    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.

Sec. 1794.74  Incorporation of environmental materials.

    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.

Sec. 1794.75-1794.79  [Reserved]

[[Page 1065]]
```