(14) Studies and engineering undertaken to define a proposal or alternatives sufficiently so that environmental effects can be assessed.

(15) The construction of electric power lines within an existing substation, switching station or electric generating facility site. A description of the facilities to be constructed shall be provided to RUS.

(16) Contracts for certain items of equipment which are part of a proposal for which RUS is preparing an EA or EIS, and which meet the limitations on actions during the NEPA process set forth in §1794.21 (e.g., long lead time items such as turbines or boilers).

(17) Internal RUS administrative actions (e.g., personnel actions, procurement) and RUS bulletins that do not concern environmental matters or substantial facility design, construction or maintenance practices.

(c) Certain types of Borrower proposals normally require Borrower submission of a BER or its equivalent. Proposals of this type are subject to the requirements of § 1794.42. Proposals within this classification are:

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

(i) Less than 69 kV (low side) or

(ii) Less than 230 kV (low side) if both:

(A) No more than 40 kilometers (24.85 miles) of power line are involved, and

(B) Substations and switching stations require new physical disturbance or fencing of no more than 2 hectares (4.94 acres) at any single site nor more than 4 hectares (9.88 acres) for all sites.

(2) The construction of electric power lines where less than 5 kilometers (3.11 miles) of line are involved.

(3) The construction of telephone and communication lines, cables and facili

derlying project will be five (5) percent or less.

(6) 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.

(7) Additional bulk commodity storage (e.g., coal, peat, lignite, limestone, etc.) within existing generating station boundaries.

(8) SCADA and energy management systems which require new external construction.

(9) Reconductoring or upgrading of existing telephone or power lines where either the same or substantially equivalent support structures at the approximate existing support structure locations are used.

(10) Proposals designed to reduce the amount of pollutants released into the environment (e.g., precipitators, baghouse or scrubber installation, coal washing plant and equipment) which have no other environmental impact outside of the existing facility site.

(11) Changes or additions to existing substations or switching stations or external changes to buildings or small structures requiring 0.4 hectare (0.99 acre) or more but no more than 2 hectares (4.94 acres) of new physically disturbed land or fenced property.

(12) Construction of diesel electric generating facilities of less than 3 megawatts (MW) (nameplate rating) at an existing generating site. All new associated facilities and electric power lines related to the generating proposal shall be covered in the BER.

(13) Modification of an existing hydroelectric project or dam that will have a total installed capacity of 1.5 MW (nameplate rating) or less and which will result in no change in the normal maximum surface area or normal maximum surface elevation of an existing impoundment. All new associated facilities and electric power lines related to the generating proposal shall be covered in the BER.

§ 1794.32 Proposals normally requiring an EIS.

(a) Actions that may significantly affect the quality of the human environment require preparation of an EIS. An

EIS normally will be required in connection with Borrower proposals for construction and operation of the following types of facilities:

(1) New electric generating facilities of 40 MW or more (nameplate rating) other than diesel generators or combustion turbines. All new associated facilities and electric power lines related to the generating proposal shall be covered in the EIS.

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

(b) Proposals of this type are subject to the requirements of §§ 1794.50 to 1794.55.

1794.33 Proposals normally requiring an Environmental Assessment without scoping.

(a) RUS will normally prepare an EA for all proposals which are neither categorical exclusions (§1794.31) nor are proposals normally requiring an EIS (§ 1794.32). For certain actions within this class, scoping and document procedures set forth in §§ 1794.50 to 1794.53 shall be followed (see § 1794.34). The following are examples of specific Borrower proposals which normally require an EA without scoping.

(1) Construction of combustion turbine and diesel generating facilities of less than 40 MW (nameplate rating), except for diesel generating facilities of less than 3 MW (nameplate rating) at an existing generating site. All new associated facilities and electric power lines related to the subject generating proposal shall be covered in the EA.

(2) Construction of any other type of new electric generating facilities of less than 5 MW (nameplate rating). All new associated facilities and electric power lines related to the subject generating proposal shall be covered in the EA.

(3) Modification of an existing hydroelectric project or dam if:

(i) The project or dam will have a total installed capacity of more than 1.5 MW (nameplate rating); or

(ii) The modification will result in a change in the normal maximum surface area or normal maximum surface elevation of an existing impoundment.

All new associated facilities and electric power lines related to the generating proposal shall be covered in the EA. (4) The expansion of a mining or drilling operation or a new drilling operation.

(5) Purchase of existing facilities or a portion thereof which are presently in violation of Federal, state or local environmental laws or regulations.

(6) The construction of electric power lines and related facilities designed for or capable of operation at a nominal voltage of 230 kV or more (low side) not covered by §1794.31 (categorical exclusions) or §1794.34 (normally requiring an EA with scoping).

(7) The construction of electric power lines and related facilities designed for or capable of operation at a nominal voltage of 69 kV or more (low side) but less than 230 kV (low side) where:

(i) More than 40 kilometers (24.85 miles) of power line are involved or

(ii) Substations and switching stations require new physical disturbance of fencing of more than 2 hectares (4.94 acres) at any single site or more than 4 hectares (9.88 acres) for all sites.

(8) Proposals designed to reduce the amount of pollutants released into the environment which may have other environmental impacts outside of the existing facility site.

(9) Issuance of RUS regulations concerning environmental matters or substantial facility design, construction or maintenance practices.

(b) Proposals of this type are subject to the requirements of §§1794.60 to 1794.64.

§ 1794.34 Proposals normally requiring an Environmental Assessment with scoping.

(a) There are certain actions which require the use of a scoping procedure in the development of an EA. After the scoping process is completed and an acceptable Environmental Analysis has been submitted by the Borrower, RUS will determine whether to prepare an EIS or finding of no significant impact (FONSI). The types of proposals falling within this category are:

(1) The construction of electric power lines and related facilities designed for or capable of operation at a nominal

voltage of 230 kV or more (low side) where:

(i) More than 40 kilometers (24.85 miles) of power line are involved; or

(ii) Substations and switching stations require new physical disturbance or fencing involving a total of more than 2 hectares (4.94 acres) at any single site or more than 8 hectares (19.77 acres) for all sites.

(2) Construction of combustion turbines and diesel generators of 40 MW (nameplate rating) or more; and the construction of any other type of electric generating facilities of 5 or more MW but less than 40 MW (nameplate rating). All new associated facilities and electric power lines related to the subject generating project shall be covered in any EA or EIS prepared.

(b) Proposals of this type are subject to the requirements of §§1794.70 to 1794.73.

§ 1794.35 Work plan proposals.

Borrowers frequently request financing assistance for a number of relatively minor unrelated projects all of which are described in a single "work plan." In determining the proper environmental classification of construction projects contained in a work plan, RUS will consider as a single proposal all related construction included in the work plan and any additional construction related thereto which, although not included in the work plan, is reasonably foreseeable.

Subpart E-Procedure for
Categorical Exclusions

§1794.40 General.

The following procedure, which applies to action classified as categorical exclusions in §1794.31 hereof, provides RUS with information necessary to determine if the proposed action meets the criteria for a categorical exclusion. Where, because of extraordinary circumstances, an action may have a significant effect on the quality of the human environment, RUS may require additional environmental documentation.

§ 1794.41 Proposals with no BER.

Normally the Borrower shall not submit a BER for proposals included in

§1794.31(b). However, if so noted in § 1794.31(b) the Borrower shall submit a description of the proposal. Such description shall include, where applicable, a plan for erosion and sedimentation control. No public notice is required unless the proposal is located in and may affect wetlands or floodplains. § 1794.42 BER proposals.

For proposals included in §1794.31(c) the Borrower normally shall submit a BER or its equivalent which will assist RUS in identifying extraordinary circumstances in which a normally excluded action may have a significant environmental effect. No public notice is required unless the proposal is located in and may affect wetlands or floodplains. RUS shall not permit construction or other activities which would have an environmental effect until it has received, reviewed and accepted an adequate BER.

Subpart F-Procedure for Proposals Normally Requiring an EIS

§ 1794.50 Normal sequence.

Appendix A to part 1794 (Procedure for Proposals which Normally Require an EIS) describes the normal sequence of EIS preparation to be employed by RUS. For proposals normally requiring an EA with scoping (see § 1794.34), the NEPA process shall proceed in the same manner as for proposals normally requiring an EIS through the point at which the Environmental Analysis is submitted (see §1794.53). After the Environmental Analysis has been submitted, RUS shall make a judgment to prepare either an EIS or a finding of no significant impact (FONSI).

§ 1794.51 Preparation for scoping.

(a) RUS has developed a general approach to the NEPA process, including scoping, for proposals normally requiring an EIS (§ 1794.32) and for proposals normally requiring an EA with scoping (§ 1794.34). Scoping procedures are designed to determine the scope of issues to be addressed and to identify significant issues related to a proposed action. RUS may require scoping procedures to be followed for other proposals where appropriate to achieve the purposes of NEPA.

(b) As soon as practicable, RUS will publish its notice of intent to prepare an EIS (see 40 CFR 1508.22). The Borrower shall publish, in a timely manner, a notice similar to RUS's notice. If the proposal is one which normally requires an EA with scoping (§1794.34), the notice shall indicate that: (1) RUS may prepare an EA before or without necessarily preparing an EIS, and (2) the decision whether or not to prepare an EIS will be based on information received from the Borrower, Federal, state and local agencies, organizations and the general public during the scoping process, preparation of the Environmental Analysis, and the review period for a finding of no significant impact (if originally issued).

(c) As part of the early project planning the Borrower should consult with expert and interested Federal, state and local agencies to inform them of the proposed project, and to identify permits and approvals which must be obtained and administrative procedures which must be followed.

(d) Before any scoping meetings are held RUS shall require the Borrower to submit two environmental documents: (1) Alternative evaluation;

(2) Siting study (for electric generation or new mines) or Macro-Corridor study (for electric transmission).

(e) The Borrower is encouraged to hold additional public information meetings in the general location of the proposed project and any reasonable alternatives when such borrower meetings will make the scoping process more meaningful. A written summary of the comments made at such meetings should be submitted to RUS as soon as practicable after the meetings.

§ 1794.52 Scoping meeting.

(a) Both RUS and the Borrower shall publish a notice of the public scoping meeting which shall:

(1) Provide a brief description of the nature and location of the Borrower's recommended alternative (if any) and reasonable alternatives;

(2) State the intent to hold public scoping meetings, giving the date, time, location and purpose of these meetings;

(3) State where copies of the scoping documents are available for public re

view, which shall include the Borrower's headquarters, RUS offices in Washington, and other locations as determined by RUS;

(4) Provide the name and address of the person to whom questions and comments should be sent;

(5) Set forth a thirty (30) day period after the scoping meeting(s) to enter comments into the meeting record.

(b) The RUS notice will be published at least thirty (30) days prior to the meeting(s). The Borrower's notice shall be published at least ten (10) days, but not more than thirty (30) days prior to the meeting(s).

(c) The scoping meeting(s) will normally be held in the vicinity of the Borrower's recommended alternative and, where appropriate, the reasonable alternatives or such other places as RUS determines will best afford an opportunity for public involvement. Any person, organization or government body desiring to make a statement at the meeting may make such statement in writing or orally. A record will be made of the scoping meeting.

(d) As soon as practicable after the scoping meetings(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. A copy of this proposed scope will be sent to cooperating agencies and the Borrower, which shall be given thirty (30) days to comment on its adequacy and emphasis. After expiration of the thirty (30) day period RUS will provide formal guidance to the Borrower concerning the scope of environmental study to be performed and information to be gathered.

shall be subject to independent verification by RUS.

(b) The Environmental Analysis will normally provide a basis for preparation of RUS's EA or EIS and may be made an appendix to the RUS document. After RUS has reviewed and found an Environmental Analysis to be satisfactory, the Borrower will be required to provide RUS with a sufficient number of copies of the Environmental Analysis to satisfy RUS's distribution plan.

(c) The Environmental Analysis shall include a summary of the construction and operation monitoring and mitigation measures for the proposed project. This summary shall appear in the draft and final EIS. These measures may be revised as appropriate in response to comments on the draft and final EIS and other information. These measures also shall be incorporated by summary or reference into RUS's Record of Decision.

§1794.54 EIS.

(a) After a draft or final EIS has been prepared, RUS and the Borrower shall issue a notice of availability for the document. The notice shall:

(1) Provide a brief description of the nature and location of the preferred and reasonable alternatives;

(2) State the availability of a draft or final EIS for public review;

(3) State how copies of the EIS can be obtained and where copies are available for public review which shall include the Borrower's headquarters, RUS offices in Washington, DC, selected libraries in the area of the preferred and reasonable alternatives and such other reasonable places as RUS shall select;

(4) Provide the name and address of the person to whom questions and comments should be sent;

(5) Set forth the time period for review and comment. This time period normally shall be forty-five (45) days for a draft EIS and thirty (30) days for a final EIS, measured from the date that the U.S. Environmental Protection Agency's notice or the Borrower's notices are first published, whichever is later.

RUS and the Borrower notices for the final EIS shall also request persons, organizations or governmental bodies which wish to be notified when the Record of Decision is available to inform RUS of such interest.

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

(c) Where a final EIS does not require that substantial changes be made in 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 will 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 thirty (30) days of publication of notice of availability of the final EIS.

(d) In individual situations, upon mutual agreement between RUS and the Borrower, the EIS may be prepared by an independent contractor. If RUS acts as lead agency, the contractor will be chosen by RUS. Under this procedure, the Borrower normally will not be required to submit an Environmental Analysis.

[49 FR 9550, Mar. 13, 1984; 49 FR 10083, Mar. 19, 1984]

§ 1794.55 Timing of agency action.

(a) Where an RUS action requires an EIS, RUS shall prepare a Record of Decision. The Record of Decision will not be prepared, and RUS will not take any action or execute commitments before expiration of the thirty (30) day period starting with either EPA's notice in the FEDERAL REGISTER that the final EIS is available or the Borrower's notices of availability, whichever is later.

(b) For budgetary purposes some financing assistance may be approved conditionally with a stipulation that no funds will be advanced until a Record of Decision has been prepared.