Document ID: FRA-2021-0037-0004
Agency: fra
Document Type: Notice
Title: Surface Transportation Project Delivery Program: California High-Speed Rail Authority Audit Report
Posted Date: 2022-07-20T04:00Z

[Federal Register Volume 87, Number 138 (Wednesday, July 20, 2022)]
[Notices]
[Pages 43371-43373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15478]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket No. FRA-2021-0037]

Surface Transportation Project Delivery Program; California High-
Speed Rail Authority Audit Report

AGENCY: Federal Railroad Administration (FRA), U.S. Department of 
Transportation (DOT).

ACTION: Notice; request for comment.

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SUMMARY: The Surface Transportation Project Delivery Program (STPD 
Program), often referred to as the ``NEPA Assignment Program,'' allows 
a State to assume FRA's environmental responsibilities for Federal 
environmental review, consultation, and compliance under the National 
Environmental Policy Act (NEPA) for railroad projects. When a State 
assumes these responsibilities, it carries out the assigned 
environmental review process, in lieu of FRA. The STPD Program requires 
annual audits for the first four years of the State's lead role in the 
program to ensure compliance with program requirements. FRA is issuing 
this notice to advise the public that it has conducted the second 
annual audit of the State of California, acting by and through, the 
California High-Speed Rail Authority (CHSRA), and seek comment from the 
public on the draft audit report. Following the comment period, FRA 
will publish a final audit report.

DATES: Comments must be received on or before August 19, 2022.

ADDRESSES: Comments related to Docket No. FRA-2021-0037 may be 
submitted by going to https://www.regulations.gov and following the 
online instructions for submitting comments.
    Instructions: All submissions must include the agency name and 
docket number (docket #). All comments received will be posted without 
change to https://www.regulations.gov; this includes any personal 
information. Please see the Privacy Act heading in the SUPPLEMENTARY 
INFORMATION section of this document for Privacy Act information 
related to any submitted comments or materials.
    Docket: For access to the docket to read background documents or 
comments received, go to https://www.regulations.gov and follow the 
online instructions for accessing the docket.

FOR FURTHER INFORMATION CONTACT: Marlys Osterhues, Chief Environment 
and Project Engineering, RPD, telephone: (202) 493-0413, email: 
[email protected].

SUPPLEMENTARY INFORMATION: Privacy Act Statement: FRA will post 
comments it receives without edit, to www.regulations.gov, as described 
in the system of records notice, DOT/ALL-14 FDMS, accessible through 
www.dot.gov/privacy. In order to facilitate comment tracking and 
response, we encourage commenters to provide their name, or the name of 
their organization; however, submission of names is completely 
optional. Whether commenters identify themselves or not, all timely 
comments will be fully considered. If you wish to provide comments 
containing proprietary or confidential information, please contact the 
agency for alternate submission instructions.

[[Page 43372]]

Draft Surface Transportation Project Delivery Program Audit of the 
California High-Speed Rail Authority Conducted Between: December 13-16, 
2021

Executive Summary

    This report summarizes the results of FRA's second audit of CHSRA's 
conduct in carrying out its assigned environmental review 
responsibilities between July 1, 2020, and July 30, 2021 (Audit 
Period), to assess CHSRA's compliance with applicable Federal law, and 
the memorandum of understanding (section 327 MOU) executed July 23, 
2019, between CHSRA and FRA. The Secretary, acting by and through FRA, 
is required to conduct annual audits of the State during each of the 
first 4 years of State participation in the STPD Program. 23 U.S.C. 
327(g).
    To conduct the audit, FRA formed a team (Audit Team) in April 2021. 
The Audit Team consisted of NEPA subject matter experts (SMEs) from 
FRA's environmental and project management divisions and the John A. 
Volpe National Transportation Systems Center. In addition, FRA 
designated a Senior Environmental Protection Specialist to serve as a 
NEPA Assignment Program liaison to CHSRA. The Audit Team reviewed 
samples of project documentation related to CHSRA's environmental 
decisions completed during the Audit Period, and CHSRA's self-
assessment of its program. In addition, the Audit Team reviewed CHSRA's 
internal procedures related to Quality Assurance/Quality Control (QA/
QC), project files, updated guidance documentation, and conducted 
interviews with relevant CHSRA staff between December 13 and 16, 2021. 
The Audit Team also conducted an interview with the U.S. Army Corps of 
Engineers on January 19, 2022. FRA provided CHSRA an opportunity to 
review the findings described below and has considered CHSRA's comments 
in developing this draft audit report.
    Overall, the Audit Team found that CHSRA continues to carry out its 
assigned environmental responsibilities and complies with the 
provisions of the section 327 MOU.

Background

    The STPD Program, codified at 23 U.S.C. 327, allows a State to 
assume FRA's environmental responsibilities for review, consultation, 
and compliance for railroad projects. When a State assumes these 
Federal responsibilities, the State becomes solely liable for carrying 
out the responsibilities it has assumed, in lieu of the FRA. CHSRA 
published its application under the STPD Program on November 9, 2017 
and made it available for public comment for 30 days. After considering 
public comments, CHSRA submitted its application to FRA on January 31, 
2018. The application served as the basis for developing the section 
327 MOU, which identifies the responsibilities and obligations that 
CHSRA would assume.
    FRA published a notice of the draft section 327 MOU in the Federal 
Register on May 2, 2018, for a 30-day comment period to solicit the 
views of the public and Federal agencies. After the close of the 
comment period, FRA and CHSRA considered comments and proceeded to 
execute the section 327 MOU. On July 23, 2019, CHSRA assumed FRA's 
responsibilities under NEPA, and the responsibilities for NEPA-related 
Federal environmental laws, as described in the section 327 MOU.
    To oversee CHSRA's compliance, FRA conducts annual audits during 
each of the first four years of State participation. After the fourth 
year, FRA will not conduct annual audits but will monitor CHSRA's 
compliance with the section 327 MOU and applicable Federal laws and 
policies and assess whether CHSRA is attaining the performance measures 
listed in part 10 of the section 327 MOU. During monitoring FRA may 
request information from CHSRA and relevant Federal agencies, verify 
CHSRA's financial and personnel resources dedicated to carrying out the 
section 327 MOU, and review documents and other information. FRA 
provides the results of each annual audit to the public and solicits 
comment. FRA published the first audit report of CHSRA on April 21, 
2021.
    Audits are the primary mechanism through which FRA, oversees 
CHSRA's compliance with the provisions in the section 327 MOU. FRA 
conducts annual audits to: (1) oversee the State's compliance with this 
MOU and applicable Federal laws and policies; (2) determine the State's 
attainment of the performance measures identified in part 10 of the 
section 327 MOU; and (3) collect information needed for the Secretary's 
annual report to Congress pursuant to 23 U.S.C. 327(i). FRA intends to 
conduct two more annual audits consistent with 23 U.S.C. 327(g) and 
part 11 of the section 327 MOU. FRA will publish the results of each 
audit in a draft report and make the report available for public 
comment in the Federal Register, before publishing the final audit 
report.

Scope and Methodology

    This audit covers all final NEPA decisions issued by CHSRA within 
the Audit Period. The Audit Team reviewed a sampling from CHSRA's 
project files complied for NEPA decisions; CHSRA's self-assessment 
report; and CHSRA current policies, guidance, and manuals relating to 
NEPA decisions and the decision-making process. FRA reviewed twelve 
reexaminations of previously approved final environmental impact 
statements (EIS) and one final EIS/record of decision (ROD), 
representing all projects completed within the Audit Period. In 
conducting the audit, the Audit Team focused on objectives related to 
six NEPA Assignment Program Elements: program management, documentation 
and records management, quality assurance and control (QA/QC), 
training, performance measurement, and legal sufficiency. Each NEPA 
Assignment Program Element is described further below.
    The Audit Team interviewed nine CHSRA staff in CHSRA's regional 
offices and its headquarters office. In addition, the Audit Team 
interviewed one staff member from the U.S. Army Corps of Engineers to 
ensure timely and effective coordination occurs with this Federal 
resource agency partner. The Audit Team invited CHSRA staff, middle 
management, legal counsel, and executive management to participate in 
the interview process to ensure representation from a diverse range of 
staff expertise, experience, and program responsibility.
    The Audit Team compared the procedures outlined in CHSRA's current 
environmental manuals and policies to the information obtained during 
staff interviews and project file reviews to evaluate CHSRA's 
performance against its documented procedures. The Audit Team then 
assessed CHSRA's performance based on the six NEPA Assignment Program 
Elements.

Audit Results

    Overall, FRA found that CHSRA has carried out the environmental 
responsibilities assumed through the section 327 MOU and the Audit Team 
found that CHSRA is complying with the section 327 MOU. The following 
sections detail each of FRA's findings with respect to CHSRA's 
performance and the six NEPA Assignment Program Elements.

Program Management

    Consistent with part 4 of the section 327 MOU, the State committed 
to maintaining adequate organizational and staff capability at CHSRA to 
manage the STPD Program. This includes integrating the STPD Program 
into CHSRA's environmental and project

[[Page 43373]]

development processes, using the appropriate SMEs, and developing, 
maintaining and implementing internal policies and procedures. In 
reviewing documentation for this audit, FRA found that CHSRA continues 
to implement an effective STPD Program by adhering to its Environmental 
Policies and Procedures Handbook, Environmental Compliance Program 
Manual, and the QA/QC Plan. The section 327 MOU requires CHSRA to 
conduct a self-assessment of their program implementation, and document 
actions to improve upon the previous audit self-assessment findings. 
CHSRA has conducted the required self-assessment and implemented 
actions to improve upon the findings described in the first audit.
    CHSRA has incorporated the STPD Program into its overall project 
development process. CHSRA staff and counsel at the headquarters office 
are responsible for ensuring NEPA Assignment responsibilities are 
fulfilled by reviewing projects for compliance with assigned 
environmental laws and regulations independently from those responsible 
for developing the NEPA and related documentation as required in part 3 
of the section 327 MOU.
    CHSRA environmental staff at the three regional offices continues 
to coordinate their NEPA related project-work with headquarters staff 
through NEPA Coordinators. While no changes in staff functions have 
occurred since the completion of the first audit, the CHSRA NEPA 
Assignment Team has demonstrated an increased level of engagement in 
the overall project development process during the Audit Period. FRA's 
Audit Team found that the CHSRA is effectively incorporating 
environmental justice and climate change considerations into the CHSRA 
planning process.\1\ CHSRA noted that it is currently updating its 
environmental justice guidance. The Audit Team recognizes CHSRA efforts 
to ensure compliance with these Administration initiatives through 
successfully tracking and implementing commitments.
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    \1\ CHSRA's environmental justice guidance is available at: 
https://hsr.ca.gov/wp-content/uploads/docs/programs/title_VI/CHSRA%20EJ%20Guidance%208-14-2012.pdf. CHSRA also publishes an 
annual sustainability report documenting its efforts to mitigate 
climate impacts. The 2021 report is available at: https://hsr.ca.gov/wp-content/uploads/2021/09/Sustainability_Report_2021.pdf.
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Documentation and Records Management

    In accordance with part 10.2.A of the section 327 MOU, CHSRA agreed 
to maintain documented compliance with NEPA and other Federal 
environmental statutes and regulations. During the Audit Period CHSRA 
issued 13 final NEPA decisions. The Audit Team reviewed the project 
files for twelve reexaminations of previously approved Final EISs and 
one combined Final EIS/ROD. These projects represented all CHSRA 
environmental review decisions completed within the Audit Period. The 
Audit Team found that CHSRA maintained a complete final electronic 
project record, containing all NEPA-related documentation, in 
accordance with the section 327 MOU.

Quality Assurance/Quality Control

    CHSRA agreed to carry out regular QA/QC activities to ensure the 
assumed responsibilities are conducted consistent with applicable law 
and part 10.2.B of the section 327 MOU. The QA/QC program includes 
coordination between the regional environmental staff and the 
headquarters' NEPA assignment team, including CHSRA NEPA counsel. The 
NEPA assignment team reviews all NEPA documentation and technical 
reports to ensure regulatory compliance and technical sufficiency. 
CHSRA staff also engage with SMEs, when appropriate, regarding various 
environmental resources and regulations.
    During interviews with the Audit Team, CHSRA described the 
continued use of comment resolution workshops to ensure appropriate 
consideration of all comments, both internal and from external 
stakeholders, including agencies. In addition, CHSRA continues to 
utilize an electronic file system to manage documentation effectively 
across the program. CHSRA provided the Audit Team documentation used to 
track QA/QC in the form of project review checklists, comment summary 
reports, and other associated documentation with project the file 
reviews.
    Based on the information evaluated by the Audit Team, the Audit 
Team found that CHSRA is conducting regular QA/QC activities in 
accordance with the section 327 MOU.

Training Program

    CHSRA committed to implementing training necessary to meet its 
environmental obligations consistent with part 12 of the section 327 
MOU. CHSRA developed its NEPA Assignment Training Plan to meet this 
requirement. The training covers topics related to CHSRA's assigned 
environmental responsibilities. Based on interviews and a review of 
training documentation and records, all CHSRA staff received the 
training in accordance with the NEPA Assignment Training Plan during 
the Audit Period.
    During interviews, CHSRA noted their continuing efforts to ensure 
effective coordination with Federal agencies, including the Federal 
Aviation Administration. These efforts may include providing additional 
training opportunities regarding high-speed rail system requirements. 
The Audit Team recognizes CHSRA ongoing activities and will evaluate 
these training efforts during the next audit cycle.

Performance Measures

    As described in part 10.2 of the section 327 MOU, FRA and CHSRA 
established performance measures that CHSRA will seek to attain, and 
that FRA will consider during FRA's audits.
    FRA evaluated CHSRA's administration of its assigned 
responsibilities against the performance measures outlined in the 327 
MOU. The Audit Team recognizes the CHSRA efforts to implement a robust 
self-assessment review process. Based on results of the self-
assessment, project file review and interviews, the FRA Audit Team 
found that CHSRA is attaining the performances measures in the section 
327 MOU.

Legal Sufficiency

    CHSRA maintains a documented legal sufficiency review for draft and 
final documents, which generally includes multiple rounds of review and 
procedures for elevating issues of concern, as outlined in the section 
327 MOU. This review is conducted by CHSRA NEPA attorneys who also 
engage with NEPA outside counsel, as necessary. CHSRA attorneys are 
also involved in the preparation of guidance and trainings for staff. 
Since the first audit, CHSRA has updated its guidance for reevaluations 
and reexaminations, to include a legal sufficiency review for these 
documents.

Next Steps

    FRA is providing the draft audit report for public review and 
comment for a 30-day period in accordance with 23 U.S.C. 327(g). No 
later than 60 days after the close of the comment period, FRA will 
publish the final audit report in the Federal Register.

    Issued in Washington, DC.
Jennifer Mitchell,
Deputy Administrator.
[FR Doc. 2022-15478 Filed 7-19-22; 8:45 am]
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