This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

62527

Vol. 62, No. 226

Monday, November 24, 1997

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1794

RIN 0572–AB33

Environmental Policies and

Procedures

AGENCY: Rural Utilities Service, USDA.

ACTION: Proposed rule.

SUMMARY: The Rural Utilities Service

(RUS) hereby revises its existing

environmental regulations,

Environmental Policies and Procedures,

which have served as RUS’

implementation of the National

Environmental Policy Act (NEPA) in

compliance with the Council on

Environmental Quality (CEQ)

Regulations for Implementing the

Procedural Provisions of the NEPA.

Based on new Congressional mandates,

changes in the electric industry, and the

agency’s experience and review of its

existing procedures, RUS has

determined that several changes are

necessary for its environmental review

process to operate in a smooth, efficient,

and effective manner.

DATES: Public comments must be

received by RUS or bear a postmark or

equivalent, no later than January 23,

1998.

ADDRESSES: Written comments should

be sent to Gary J. Morgan, Director,

Engineering and Environmental Staff,

Rural Utilities Service, Stop 1571, Room

2242, 1400 Independence Ave., SW.,

Washington, DC 20250–1571. This

proposed rule and the guidance

bulletins in this rule will be available on

the Internet via the RUS home page at

www.usda.gov/rus/.

FOR FURTHER INFORMATION CONTACT: Gary

J. Morgan, Director or Lawrence R.

Wolfe, Senior Environmental Protection

Specialist, Engineering and

Environmental Staff; Rural Utilities

Service, Stop 1571, 1400 Independence

Ave., SW., Washington, DC 20250–1571.

Telephone (202) 720–1784. E-mail

address (gmorgan@rus.usda.gov) or

(lwolfe@rus.usda.gov).

SUPPLEMENTARY INFORMATION:

Classification

This proposed rule has been

determined to be significant and was

reviewed by the Office of Management

and Budget (OMB) under Executive

Order 12866.

Civil Justice Reform

This proposed rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. RUS has determined

that this proposed rule meets the

applicable standards provided in Sec. 3.

of the Executive Order.

Regulatory Flexibility Act Certification

Pursuant to section 605(b) of the

Regulatory Flexibility Act, 5 U.S.C.

605(b), RUS certifies that this proposed

rule will not have a significant

economic impact on a substantial

number of small entities. If a rule has a

significant economic impact on a

substantial number of small entities, the

Regulatory Flexibility Act requires

agencies to analyze regulatory options

that would minimize any significant

impact of a rule on small entities. The

application for financial assistance

under the RUS electric and

telecommunications programs and the

application for loans and grants under

the RUS water and waste program are

discretionary, regulatory requirements

will, therefore, apply only to those

entities which choose to apply for

financial assistance or funding.

Information Collection and

Recordkeeping Requirements

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C.

Chapter 35, as amended) RUS is

requesting comments on the information

collection incorporated in this proposed

rule.

Comments on this information

collection must be received by January

23, 1998.

Comments are invited in: (a) Whether

the proposed collection of information

is necessary for the proper performance

of the functions of the agency, including

whether the information will have

practical utility; (b) the accuracy of the

agency’s estimate of the burden of the

proposed collection of information; (c)

ways to enhance the quality, utility and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the collection of information

on respondents, including through the

use of automated collection techniques

of other forms of information

technology.

For further information contact

Lawrence R. Wolfe, Senior

Environmental Protection Specialist;

Engineering and Environment Staff;

Rural Utilities Service, Stop 1571, 1400

Independence Ave., SW, Washington,

DC 20250–1571. Telephone: (202) 720–

1784. E-mail: (lwolfe@rus.usda.gov).

Title: 7 CFR Part 1794, Environmental

Policies and Procedures.

OMB Number: 0572–NEW.

Type of Request: New collection.

Abstract: The information collection

contained in this rule are requirements

prescribed by 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 1500–1508) and

certain related Federal environmental

laws, statutes, regulations, and

Executive Orders.

The major events which influenced

the promulgation of the proposed

revisions to this rule were the 1994

reorganization of the U.S. Department of

Agriculture, which transferred the water

and waste program from the former

Farmers Home Administration to RUS,

reforms within the electric and

telecommunications programs, and

fundamental changes in RUS’

implementation of the CEQ regulations.

The proposed rule will combine all

three programs (electric,

telecommunications, and water and

waste) under a single environmental

regulation and will eliminate

unnecessary and burdensome

requirements previously imposed on

applicants seeking financial assistance

under the three programs. The

streamlining of the regulation will allow

RUS headquarters and field staff to more

expeditiously evaluate the

environmental implications of

implementing RUS programs and thus

speed up the delivery of these programs

to qualified applicants.

RUS applicants would provide

environmental documentation, as

prescribed by the rule, to assure that

policy contained in NEPA is followed.
62528 Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules

The burden will vary depending on the

type, size, and location of each project,

which would then prescribe the type of

information collection involved. The

collection of information is only that

information which is essential for RUS

to provide environmental safeguards

and to comply with NEPA as

implemented by the CEQ regulations.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 229 hours per

response.

Respondents: Business or other forprofit and non-profit institutions.

Estimated Number of Respondents:

600.

Estimated Number of Responses per

Respondents: 3.

Estimated Total Annual Burden on

Respondents: 415,000 hours.

Copies of this information collection

can be obtained from Dawn Wolfgang,

Program Support and Regulatory

Analysis, Rural Utilities Service.

Telephone: (202) 720–0812.

Send comments regarding this

information collection requirement to

the Office of Information and Regulatory

Affairs, Office of Management and

Budget, ATTN: Desk Officer, USDA,

Room 10102, New Executive Office

Building, Washington, DC 20503, and to

F. Lamont Heppe, Jr., Director, Program

Support and Regulatory Analysis, Rural

Utilities Service, Stop 1522, 1400

Independence Ave., SW., Room 4034,

Washington, DC 20250–1522.

Comments are best assured of having

full effect if OMB receives them within

30 days of publication in the Federal

Register. All comments will become a

matter of public record.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review to eliminate unnecessary

regulations and improve those that

remain in force.

National Environmental Policy Act

Certification

RUS has determined that this

proposed rule will not significantly

affect the quality of the human

environment as defined by the National

Environmental Policy Act of 1969 (42

U.S.C. 4321 et seq.). Therefore, this

action does not require an

environmental impact statement or

assessment.

Program Affected

The program described by this

proposed rule is listed in the Catalog of

Federal Domestic Assistance programs

under numbers 10.850, Rural

Electrification Loans and Loan

Guarantees, 10.851, Rural Telephone

Loans and Loan Guarantees, 10.760,

Water and Waste Disposal System for

Rural Communities, 10.764, Resource

Conservation Development Loans, and

10.765, Watershed Protection and Flood

Prevention Loans. This catalog is

available on a subscription basis from

the Superintendent of Documents, the

U.S. Government Printing Office,

Washington, DC 20402.

Intergovernmental Review

This program is subject to the

provisions of Executive Order 12372

that requires intergovernmental

consultation with State and local

officials.

Unfunded Mandate

This rule contains no Federal

mandates (under the regulatory

provision of Title II of the Unfunded

Mandate Reform Act) for State, local,

and tribal governments of the private

sector. Thus today’s rule is not subject

to the requirements of section 202 and

205 of the Unfunded Mandate Reform

Act.

Background

On March 13, 1984, the Rural

Electrification Administration

(predecessor of RUS) published 7 CFR

part 1794, Environmental Policies and

Procedures, as a final rule in the Federal

Register (49 FR 9544) covering the

actions of the electric and

telecommunications programs. Based on

new Congressional mandates, changes

in the electric industry, and the agency’s

experience and review of its existing

procedures, RUS has determined that

several changes are necessary for its

environmental review process to operate

in a smooth, efficient, and effective

manner.

The existing 7 CFR part 1794 was

designed to process proposals from

RUS’ electric and telecommunications

programs in addition to the agency’s

internal administrative actions. The

Federal Crop Insurance Reform and

Department of Agriculture

Reorganization Act of 1994 (Pub. L.

103–354, 108 Stat. 3178), under which

RUS became the successor to the Rural

Electrification Administration,

transferred the water and waste program

from the former Farmers Home

Administration (FmHA) to RUS. Most

changes proposed to 7 CFR part 1794

are the result of the addition of the

water and waste program to RUS. The

environmental review requirements of

the water and waste program were

previously contained in 7 CFR part

1940, subpart G. While the

environmental review of electric and

telecommunications proposals is

entirely managed from the national

office, the environmental review of all

but major or highly controversial water

and waste proposals is managed by

USDA Rural Development staff in state,

county, or district offices. To avoid

confusion, some sections and

subsections are further subdivided to

differentiate among the responsibilities

of the three program areas. Examples of

differences in program responsibilities

and requirements can be found in

§ 1794.5, Responsible Officials and

§ 1794.13, Public Involvement.

Due to the requirements of the

existing regulation, RUS has sometimes

gone through a lengthy environmental

review with no commensurate benefit to

the quality of the human environment.

Consequently, significant time and

resources have been expended by RUS

and its applicants when early

indications strongly suggest that an

easier and more expeditious procedure

would be more prudent. Experience has

shown that several types of minor RUS

applicant proposals involve negligible

environmental impact. In a number of

instances, such projects have been

delayed as a result of outdated

procedures without any benefit to the

quality of the human environment.

To foster clarity, readability, and

brevity, this proposed rule includes

changes to the format of the current

rule. A list of definitions has been

added to subpart A. Existing subparts B

and C have been combined. The order

in which proposals are classified in

subpart C has been arranged from minor

to major actions. The arrangement of

subparts D through G mirrors the order

of classification in subpart C.

Information originally included in

subpart J on Supplemental

Environmental Impact Statements (EIS)

has been incorporated into proposed

subpart G.

Appendix A, which displays a flow

chart of RUS’ EIS process would be

deleted. RUS believes that displaying a

flow chart of its EIS process as part of

this regulation had limited value and

there is no benefit to include it in the

proposed revision.

For further guidance in the

preparation of public notices and

environmental documents, RUS is

preparing a series of guidance bulletins.

Three program specific bulletins that

will be issued concurrently with the

final rule provide guidance in preparing

the Environmental Report (ER) for

proposed actions classified as

categorical exclusions and proposed

actions which require an Environmental

Assessment (EA). A fourth bulletin

provides applicants with guidance in
Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules 62529

the preparation of public notices and

public involvement activities. Further

information on these bulletins is

provided in § 1794.8.

This proposed rule contains a variety

of substantive and procedural changes

from the provisions of the current rule.

Some of these revisions are minor or

merely intended to clarify existing RUS

policy and procedure, such as § 1794.4

(Trivial Violations) which was deleted

and § 1794.7 which defines some of the

terminology specific to the agency.

Other revisions reflect fundamental

changes in RUS’ implementation of the

CEQ regulations and are outlined below.

The relationship between RUS and its

electric and telecommunications

applicants has changed substantially

since RUS issued the final rule in March

of 1984. Changes that have occurred in

the last 4 years have been particularly

dramatic. Historically, RUS provided

substantially all of its applicants’ capital

needs and established a lending

relationship reflecting that dominant

lending role. However, because of

limited annual loan authorization

levels, RUS no longer serves such a role.

Moreover, in a 1993 amendment to

section 306E of the Rural Electrification

Act of 1936, as amended (7 U.S.C. 936e),

Congress required RUS to abandon its

close hands-on control of its applicants

and instead follow the practices of

private market lenders. RUS has done so

through the development of new forms

of loan agreements and security

instruments and the publication of 7

CFR Part 1717, subpart M, Operational

Controls, which reduce or eliminate

much of the oversight and control

historically exercised by RUS.

Reflecting these changes and reforms,

RUS proposes to revise that section of

the regulations identifying actions

requiring environmental review.

Environmental reviews will be required

in connection with the approval of

financial assistance for applicants and

the issuance of rules, regulations, and

bulletins by RUS. No reviews will be

required in connection with approvals

provided by RUS pursuant to its loan

contracts and security instruments with

applicants such as approvals of lien

accommodations or the use of general

funds by applicants. These approvals

are ministerial and are not federal

actions subject to environmental

reviews.

The existing regulation states that all

RUS prepared environmental

documents will use metric units with

non-metric equivalents in parentheses

and that environmental documents

prepared by or for the applicant should

follow the same format. RUS proposes

to reverse that format. All RUS prepared

environmental documents will use nonmetric 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. RUS

environmental guide bulletins will

recommend that applicants follow the

same format.

Within subpart C, a classification

system defines the level of

environmental review required for

agency and applicant proposed actions.

Sections 1794.21 through 1794.25 are

further subdivided when appropriate to

differentiate between actions being

proposed by RUS and actions proposed

by electric, telecommunications, and

water and waste program applicants.

The purpose of these additional

subsections is to aid program applicants

in determining the category in which

their proposed action is classified.

A number of classification changes

are being proposed within subpart C.

These proposed reclassifications involve

minor actions proposed by applicants

which rarely, if ever, result in

significant environmental impact or

public interest. These changes will

streamline environmental review of

minor actions, and will allow the

agency to focus its resources on larger

projects. RUS believes that the proposed

changes will provide adequate

safeguards to identify any unusual

circumstances that may require

additional agency scrutiny.

Within §§ 1794.21(a) and 1794.22(a),

RUS proposes to modify the thresholds

for acreage (facility sites), and capacity

(generation facilities). Three categories

of proposals that previously required

RUS approval of applicant actions

would be deleted, five categories of

proposals would be downgraded to no

longer require an Environmental Report

(ER), and six new categories of

proposals would be added to

§ 1794.21(a). One proposal that

previously required an Environmental

Assessment (EA) and two new

categories of proposals would be added

to § 1794.22(a).

In addition to modifying the

thresholds for acreage and capacity,

RUS proposes to impose different

thresholds for construction of electric

generating capacity at new sites versus

existing sites and to add three new

categories of proposals within § 1794.23.

Proposed acreage and capacity

threshold changes within § 1794.24, and

a proposed capacity threshold change

within § 1794.25 reflect changes that

would be made in §§ 1794.21(a),

1794.22(a), and 1794.23. No change is

proposed for the existing thresholds for

transmission line length, however, the

existing thresholds for multiple

substations associated with

transmission lines would be eliminated.

Capacity thresholds would also be

eliminated for hydroelectric proposals

in §§ 1794.22 and 1794.23. RUS

proposed instead to, in most cases,

adopt the NEPA document prepared by

the Federal Energy Regulatory

Commission, the Federal licensing

agency of hydroelectric projects in

which RUS applicants participate.

The thresholds for proposed actions

in the Water and Waste Program as

defined in 7 CFR part 1940, subpart G,

were reclassified in §§ 1794.21(b) and

1794.22(b). In 7 CFR part 1940, subpart

G, EAs are classified into two categories,

Class I and II; each category establishing

a level of documentation commensurate

with the extent of potential

environmental impacts. Class I EAs

were classified as routine minor actions

which typically do not justify more

extensive documentation as are

necessary for Class II EAs. The Class I

EA includes a checklist to document

environmental impacts similar to that of

a categorical exclusion.

Based on historical experience and a

survey of the thresholds established by

other agencies who administer similar

types of water and waste programs, RUS

is proposing to eliminate the two tiered

classification for EAs and adopt the

more traditional classification scheme

as outlined in the CEQ regulations.

Because RUS co-funds a significant

portion of its projects with other Federal

and State agencies, a more traditional

classification and documentation

scheme is thought to be more conducive

to minimizing duplicative

environmental review efforts.

All current thresholds in 7 CFR part

1940, subpart G were re-evaluated and

would be reclassified based on the

following parameters. The primary

parameter determining thresholds

between categorically excluded actions

and those actions which require the

preparation of EAs would be the volume

of water or wastewater, as defined in

terms of equivalent residential dwelling

units. The proposed regulation would

require applicants to design

categorically excluded proposals to

meet current needs with a modest

growth potential and to serve

predominantly residential uses either

within the existing service area of a

system or confined to within a one-mile

extension beyond current community

boundaries. The proposed regulation

would require that proposed actions not

meeting the above conditions warrant a

more detailed analysis as outlined for

EAs.
62530 Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules

In addition, specialized criteria would

be established for not classifying a

proposed action as a categorical

exclusion. These criteria are consistent

conceptually with the U. S.

Environmental Protection Agency’s

environmental review requirements in

40 CFR 6.505 for Title II of the Clean

Water Act, Grants for Construction of

Treatment Works.

Reviewers that disagree with RUS’

proposed classifications and or

thresholds are encouraged to cite

specific experiences that support their

position on this proposed action.

RUS proposes to modify its

procedures in subparts D through G of

this part. In § 1794.32, public notice

requirements are established for

proposed actions that impact important

land resources (floodplains, wetlands,

and important farmland). Notice of

availability requirements in § 1794.42

would be modified for all three program

areas. As proposed, the EA would be the

subject document of the notice, where

previously, the applicant’s ER was the

subject document. By this change the

notice requirements for all three

programs would 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).

RUS would also change its notice

requirements for electric program

projects requiring scoping. The timing

of RUS’ Federal Register notice for

public scoping meetings in § 1794.52

would be reduced from 30 days to 14

days prior to the meeting. RUS has

determined that no appreciable benefit

has resulted from an earlier notice

requirement. The existing regulation

allows RUS to adopt the applicant’s ER

as its EA but requires RUS to prepare its

own EA from the applicant’s

Environmental Impact Assessment (EIA)

where a proposed action requires

scoping. RUS proposes to change this

requirement by allowing the EIA to

serve as its EA provided RUS completes

an independent evaluation which

certifies the accuracy of the document

(see § 1794.53) and thus be consistent

with 40 CFR § 1506.5(a).

RUS would modify its policy

regarding the use of contractor prepared

EIS’s. Under the existing regulation,

RUS was required to use agency funds

when 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, the draft and final

EIS may be prepared by a consultant

selected by RUS and funded by the

applicant. A new requirement,

publication of a notice of availability by

RUS and the applicant for a Record of

Decision would be established in

§ 1794.63. Information on Supplemental

EIS’s would be included in subpart G of

this part.

Any environmental document

accepted or prepared by RUS prior to

the effective date of these regulations

should be developed in accordance with

the RUS’ environmental requirements in

effect at the time the document was

accepted or prepared by RUS.

List of Subjects in 7 CFR Part 1794

Environmental impact statements,

Reporting and recordkeeping

requirements.

For reasons set forth in the preamble,

chapter XVII of title 7 of the Code of

Federal Regulations is proposed to be

amended by revising part 1794 to read

as follows:

PART 1794—ENVIRONMENTAL

POLICIES AND PROCEDURES

Subpart A—General

Sec.

1794.1 Purpose.

1794.2 Authority

1794.3 Actions requiring environmental

review.

1794.4 [Reserved].

1794.5 Metric units

1794.6 Responsible officials.

1794.7 Definitions.

1794.8 Guidance.

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 impact 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—1794.79 [Reserved]

Authority: 7 U.S.C. 6941 et seq.; 42 U.S.C.

4321 et seq.; 40 CFR parts 1500–1508.

Subpart A—General

§ 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 1500–1508) and

certain related Federal environmental

laws, statutes, regulations, and

Executive Orders (E.O.) 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
Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules 62531

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.

(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 statutes,

regulations, and E.O.s. Bulletins

identified in § 1794.8 contain a list of

certain statutes, regulations, and E.Os

that may be applicable to proposed

actions for which RUS financial

assistance is provided. Environmental

documents submitted by the applicant

shall be prepared under the supervision

and guidance of RUS and RUS will

evaluate and be responsible for the

accuracy of all information contained

therein.

§ 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.

§ 1794.4 [Reserved]

§ 1794.5 Metric units.

RUS normally will prepare

environmental documents using nonmetric 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.

§ 1794.6 Responsible officials.

The Administrator of RUS has the

responsibility for Agency compliance

with all environmental laws,

regulations, and E.O.s 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.

§ 1794.7 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. The repairs

made to return the damaged facilities of

an applicant’s system back to service

because of a natural disaster or system

failure that may involve an immediate

or imminent threat to public health or

safety.

Environmental Impact Analysis (EIA).

The document submitted by the

applicant for proposed actions subject to

compliance with § 1794.24 and under

special circumstances § 1794.25.

Environmental Report (ER). The

environmental document and

documentation normally submitted by

applicants for proposed actions subject

to compliance with §§ 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 the Departmental Regulation

are available from USDA, Rural Utilities

Service, Washington, DC 20250.

Loan Design. Document required by 7

CFR part 1737.

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 listed 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)).

§ 1794.8 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)

(§ 1794.22(a)); RUS Bulletin 1794A–601

provides guidance in preparing the ER

for proposed actions which require EAs

(§ 1794.23(b)); and RUS Bulletin 1794A–

602 provides guidance in the

preparation of public notices. Copies of
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these bulletins are available upon

request by contacting Rural Utilities

Service, Publications Office, PSRA, Stop

1522; 1400 Independence Avenue, SW;

Washington, D.C. 20250–1522.

(b) Water and Waste Program. RUS

Bulletin 1780–26 provides guidance in

preparing the PER for proposed actions

classified as CEs (§ 1794.22(b)) and EAs

(§ 1794.23(c)). 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 1780–26.

§ 1794.9 [Reserved]

Subpart B—Implementation of the

National Environmental Policy Act

§ 1794.10 Applicant responsibilities.

As described in subpart C of this part,

applicants shall, under RUS’ direct

guidance and supervision, prepare the

applicable documentation concurrent

with a proposed action’s engineering,

planning, and design activities.

Documentation shall not be considered

complete until all public review

periods, as applicable, have expired and

RUS’ concurrence, as defined by the

appropriate decision document and

associated public notice, has been

issued. This section does not in any way

relieve RUS or the applicant of the

responsibilities for the scope,

objectivity, and content of the entire

environmental document or compliance

with any policy, regulation, EO, or

statute.

§ 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 an 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.

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.

(a) General. 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. Specific

guidance is found in RUS bulletins. See

§ 1794.8.

(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

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 consult with RUS

prior to the issuance of notices.

(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 all environmental

documents, comments received, errata

sheets and amendments thereto, public

notices, interagency correspondence,

and any applicable reference material.

These materials shall be placed in

locations convenient for the public as

determined by RUS and the applicants.

(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 RUS’ opinion, 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 will be coordinated to the

extent practicable with other meetings

which may be required by RUS.

Applicants shall, as necessary,

participate in all 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) Electric and Telecommunication

Programs. RUS shall have public notices

published in the Federal Register and

the applicant shall concurrently have a

similar notice published in a

newspaper(s) as described in this

section. Applicants shall obtain proof of

publication from the newspaper(s) for

inclusion into the applicable

environmental document.

(c) Water and Waste Programs. 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.

Only where the proposed actions

requires an EIS shall RUS, in addition

to applicant published notices, publish

notice in the Federal Register.

§ 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 indicate that RUS

is a cooperating agency in all NEPA

related notices published for the

proposed action;

(b) The scope and content 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.

(a) 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. See 40

CFR 1506.1.

(b) Electric Program. In determining

which applicant activities related to a
Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules 62533

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. Notwithstanding 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.

It is the policy of RUS to prepare

programmatic level analysis in order to

tier an EIS and an EA where it is

practicable, and there will be a

reduction of delay and paperwork, or

where better decision making will be

fostered. This policy is in compliance

with the requirements of 40 CFR

1502.20.

§ 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.

§§ 1794.18–1794.19 [Reserved]

Subpart C—Classification of Proposals

§ 1794.20 Control.

Electric and Telecommunications

Programs. 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 proposal prior to

determining its classification. Where the

applicant proposes to participate with

other parties in the ownership of a

proposal and all applicants

cumulatively own:

(a) Five percent or less of a project,

the proposed action will not be

considered a Federal action subject to

this part;

(b) Thirty three and one-third percent

or more of a project, the proposed action

shall be treated in its usual category;

(c) More than five percent but less

than 331⁄3 percent of a project, RUS shall

determine whether the applicant

participants have sufficient control and

responsibility to alter the development

of the proposal. 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 applicant participation;

(4) Participation percentage of each

utility; and

(5) Managerial arrangements and

contractual provisions.

§ 1794.21 Categorically excluded

proposals without an ER.

(a) General. Certain types of action

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; and

(3) Personnel and administrative

actions.

(b) Electric and Telecommunications

Programs. Applications for financial

assistance for the types of proposed

actions listed below, normally do not

require the submission of an ER. These

types of actions are subject to the

requirements of § 1794.31. Applicants

shall sufficiently describe all proposed

actions so their proper classification can

be determined. Detailed description

shall be provided for those proposed

actions so noted. 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 the 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 where there is no

substantial increase in use. 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);
62534 Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules

(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;

(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. A description of

the facilities to be constructed shall be

provided to RUS;

(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 § 1794.17

(e.g., long lead time items such as

turbines, boilers, or substation

transformers);

(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 previously disturbed

industrial or commercial, 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) Purchase of existing facilities or

a portion thereof where use or operation

will remain unchanged and which

presently are in compliance with

environmental laws and regulations. A

description of the facilities to be

purchased along with a certification

from the utility owner that the facilities

are in compliance with applicable

environmental laws and regulations

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, 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

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 an

industrial 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 coalfired 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 that does not include

the substitution of one fuel combustion

technology with another.

(c) Water and Waste Program.

Applications for financial assistance for

certain proposed actions do not

normally require the submission of an

ER. These types of actions are subject to

the classification requirements of

§ 1794.31. Proposed actions within this

classification are:

(1) Management actions relating to

invitation for bids, contract award, 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 service activities

that do not alter the purpose, operation,

location, or design of the proposal as

originally approved, such as

subordinations, and amendments and

revisions to approved actions, and the

provision of additional financial

assistance for cost overruns.

§ 1794.22 Categorically excluded

proposals requiring an ER.

(a) Electric and Telecommunications

Programs. Applications for financial

assistance for the types of proposed

actions listed herein normally require

the submission of an ER and are subject

to the requirements of § 1794.32. In

order to provide for extraordinary

circumstances, RUS may require

development of an ER for proposals

listed in § 1794.21(b). 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 right-of-way (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
Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules 62535

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 site.

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 will

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 a battery energy

storage system at an existing generating

station or substation site;

(11) Proposals designed or associated

with facilities that will reduce the

amount of pollutants released into the

environment which will not have

significant environmental impacts

outside of the existing facility site; and

(12) Construction of new water supply

wells and associated pipelines not

located within the boundaries of an

existing well field or generating station

site.

(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 § 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 populations less

than 500 EDU in size with modest

growth potential. 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 and must be located

within the existing service area of the

facility;

(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) Actions described in

§ 1794.21(c)(4) which alter the purpose,

operation, location, or design of the

proposed action as originally approved;

(6) 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; 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 above.

(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) The facilities to be provided will

either create a new or relocate an

existing discharge to surface or ground

waters;

(2) The facilities will result in

substantial increases in the volume of

discharge or the loading of pollutants

from an existing source or from new

facilities to receiving waters; or

(3) The facilities would provide

capacity to serve a population greater

than 500 EDUs or a 30 percent increase

in the existing population whichever is

larger.

§ 1794.23 Proposals normally requiring an

EA.

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. 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

§ 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 § 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;

(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) Purchase of existing facilities or a

portion thereof which are presently in

violation of Federal, State, or local

environmental laws or regulations;
62536 Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules

(8) Construction of cooperative

headquarters, maintenance, and

equipment storage facilities involving

more than 10 acres (4 hectares) of

physical disturbance or fenced property;

(9) 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;

(10) 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;

(11) The construction of substations

or switching stations requiring greater

than five acres (2 hectares) but not more

than 10 acres (4 hectares) of new

physical disturbance at a single site; and

(12) 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.

§ 1794.24 Proposals normally requiring an

EA with scoping.

(a) Electric Program. 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—

1794.54. 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) The construction of substations

and switching stations require new

physical disturbance or fencing of more

than 10 acres (4 hectares) at any one

site; and

(3) 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.

(b) Telecommunications and Water

and Waste Programs. There are no

actions normally falling within this

classification.

§ 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 §§ 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. 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]

Subpart D—Procedure for Categorical

Exclusions

§ 1794.30 General.

The procedures of this subpart which

apply to proposed actions classified as

CE’s 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 proposed

action may have a significant effect on

the quality of the human environment,

RUS may require additional

environmental documentation.

§ 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 develop detailed

descriptions 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. This information is

developed by the applicant under the

guidance and supervision of the State

Environmental Coordinator.

§ 1794.32 Environmental report.

(a) For proposed actions listed in

§§ 1794.21(a) and 1794.21(b), the

applicant is normally not required to

submit an ER.

(b) For proposed actions listed in

§§ 1794.22(a) and 1794.22(b), the

applicant shall normally submit an ER

or its equivalent. The applicant may be

required to publish public notices and

provide evidence of such with its ER if

the proposed action is located in,

impacts on, or converts important land

resources.

§ 1794.33 Agency action.

RUS may act on an application for

financial assistance upon determining,

based on the review of documents as set

forth above and such additional

information as RUS deems necessary,

that the project is categorically

excluded.

§§ 1794.34–1794.39 [Reserved]

Subpart E—Procedure for

Environmental Assessments

§ 1794.40 General.

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-bycase 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

impact on the 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.

Applicants will provide an ER in

accordance with the appropriate

guidance documents referenced in

§ 1794.8. 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. RUS will

take responsibility for the scope and

content of an EA.
Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules 62537

§ 1794.42 Notice of availability.

(a) 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.

(b) Electric and Telecommunications

Programs. RUS shall have a notice

published in the Federal Register which

announces the availability of the EA and

solicits public comments on the EA.

§ 1794.43 Agency finding.

(a) If RUS finds, based on an EA that

the proposed action will not have a

significant impact on 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.

§ 1794.44 Timing of agency action.

RUS may take its final action on

proposed actions requiring an EA

(§ 1794.23) at any time after publication

of the RUS and applicant notices that a

FONSI has been made.

§§ 1794.45–1794.49 [Reserved]

Subpart F—Procedure for

Environmental Assessments With

Scoping

§ 1794.50 Normal sequence.

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 at which the

Environmental Impact Assessment (EIA)

is submitted (see § 1794.54). After the

EIA has been submitted, RUS will make

a judgment to utilize the EIA as its EA

and issue a FONSI or prepare an EIS.

§ 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 will have its notice of

intent to prepare an EA or EIS 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.

§ 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 places 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. 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 will 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 impact analysis.

(a) After scoping procedures have

been completed, RUS will require the

applicant to develop and submit an EIA.

The EIA shall be prepared under the

supervision and guidance of the RUS

staff and RUS will evaluate and be

responsible for the accuracy of all

information contained therein.

(b) The EIA will normally serve as the

RUS EA. The EIA 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 EIA to be

satisfactory, the applicant shall provide

RUS with a sufficient number of copies

of the EIA to satisfy RUS’ distribution

plan.

(c) The EIA 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.

§ 1794.54 Agency determination.

Following the scoping process and the

development of a satisfactory EA, RUS

shall make a judgment as to whether or

not the proposed action is a major

Federal action significantly affecting the

quality of the human environment. If a

significant effect is evident, RUS will

continue with the procedures in subpart

G of this part. If a significant effect is not

evident, RUS will proceed in

accordance with §§ 1794.42 through

1794.44.

§§ 1794.55–1794.59 [Reserved]

Subpart G—Procedure for

Environmental Impact Statements

§ 1794.60 Normal sequence.

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
62538 Federal Register / Vol. 62, No. 226 / Monday, November 24, 1997 / Proposed Rules

scoping through the point at which the

scoping process is completed (see

§ 1794.52).

§ 1794.61 Environmental impact

statement.

(a) General. An EIS shall be prepared

in accordance with 40 CFR part 1502.

The draft and final EIS may be prepared

by a third-party consultant selected by

RUS and funded by the applicant.

(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 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 the draft EIS will be

provided if requested within 30 days of

publication of notice of availability of

the final EIS.

(b) Electric Program. Where an EIA

has been prepared by the applicant or

its consultant, RUS will develop its

draft and final EIS from the EIA. An EIA

will not be required if the draft and final

EIS is prepared by a third-party

consultant.

§ 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

§ 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.

(a) Upon completion of the review

period for a final EIS, RUS will have its

ROD published in accordance with 40

CFR 1505.2 and 1506.10.

(b) Separate RUS and applicant

notices 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.

(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]

Subpart H—Adoption of Environmental

Documents.

§ 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.

§ 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.

§ 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 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 the 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 the Agency’s

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 as above and will circulate

copies in accordance with 40 CFR

1502.19 and 1506.3.

§ 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.

§§ 1794.74–1794.79 [Reserved]

Dated: November 12, 1997.

Inga Smulkstys,

Deputy Under Secretary, Rural Development.

[FR Doc. 97–30341 Filed 11–21–97; 8:45 am]

BILLING CODE 3410–15–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG–103330–97]

RIN 1545–AV08

IRS Adoption Taxpayer Identification

Numbers

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking

by cross-reference to temporary

regulations and notice of public hearing.

SUMMARY: In the Rules and Regulations

section of this issue of the Federal

Register, the IRS is issuing temporary

regulations under section 6109 relating

to taxpayer identifying numbers. The

temporary regulations provide rules for

obtaining and using IRS adoption

taxpayer identification numbers. The

temporary regulations assist individuals

who are in the process of adopting

children and wish to claim certain tax

benefits with respect to these children.

The text of those temporary regulations

also serves as the text of these proposed