Environmental Program

SUMMARY: The Agencies propose to revise their Environmental regulation.

This action is necessary to clarify the meaning of two existing

sections. The intended effect of this action is to reorganize and

supplement the existing sections to provide a better understanding of

the threshold criteria used to differentiate between Class I and Class

II environmental assessments.

DATES: Comments must be received on or before May 15, 1995.

ADDRESSES: Submit written comments in duplicate to the office of the

Chief, Regulations, Analysis, and Control Branch, Rural Economic and

Community Development, U.S. Department of Agriculture, Room 6348, South

Agriculture Building, 14th Street and Independence Avenue SW.,

Washington, D.C. 20250-0700.

FOR FURTHER INFORMATION CONTACT: Donald O. Lander, Senior Environmental

Protection Specialist, Environmental Support Branch, Program Support

Staff, Rural Housing and Community Development Service, U.S. Department

of Agriculture, Room 6309, South Agriculture Building, 14th Street and

Independence Avenue SW., Washington, D.C. 20250-0700; telephone (202)

720-9619.

SUPPLEMENTARY INFORMATION:

Classification

We are issuing this proposed rule in conformance with Executive

Order 12866, and the Office of Management and Budget (OMB) has

determined that it is a ``significant regulatory action''.

Intergovernmental Consultation

This rule affects the following Agency programs as listed in the

Catalog of Federal Domestic Assistance (CFDA):

10.434--Nonprofit National Corporations Loan and Grant Program

10.760--Water and Waste Disposal Systems for Rural Communities

10.761--Technical Assistance and Training Grants

10.762--Solid Waste Management Grants

10.763--Emergency Community Water Assistance Grants

10.766--Community Facilities Loans

10.767--Intermediary Relending Programs

10.768--Business and Industrial Loans

10.769--Rural Business Enterprise and Television Demonstration

Grants

10.770--Water and Waste Disposal Loans and Grants (Section 306C)

10.771--Rural Technology Development Grants

Executive Order 12372 requires intergovernmental consultation with

State and local officials. Of the FmHA programs affected by this rule,

the following are subject to the provisions of Executive Order 12372:

10.760, 10.763, 10.766, 10.767, 10.768, 10.769, 10.770, and 10.771.

Regulatory Flexibility Act

In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-

602), the undersigned has determined and certified by signature of this

document that this rule will not have a significant economic impact on

a substantial number of small entities since this rulemaking action

does not involve a new or expanded program. Therefore a regulatory

flexibility analysis was not prepared.

Civil Justice Reform

This document has been reviewed in accordance with Executive Order

12778. It is the determination of the Agencies that this action does

not unduly burden the Federal Court System in that it meets all

applicable standards provided in Section 2 of the Executive Order.

Environmental Impact Statement

This document has been reviewed in accordance with 7 CFR part 1940,

subpart G, ``Environmental Program.'' The Agencies have determined that

this action does not constitute a major Federal action significantly

affecting the quality of the human environment, and in accordance with

the National Environmental Policy Act of 1969, Public Law 91-190, an

Environmental Impact Statement is not required.

Paperwork Reduction Act

The information collection requirements contained in this

regulation have been approved by the Office of Management and Budget

(OMB) under the provisions of 44 U.S.C. Chapter 35 and has been

assigned OMB control number 0575-0094 in accordance with the Paperwork

Reduction Act of 1980 (44 U.S.C. 3507). This proposed rule does not

revise or impose any new information collection or recordkeeping

requirement from those approved by OMB.

Background

Section 1940.311 describes certain threshold criteria for projects

which may complete an environmental review using the format for a Class

I environmental assessment.

In Sec. 1940.311(b)(1)(i) there has been confusion as to what

constitutes a ``substantial increase'' relating to a withdrawal or

discharge. This confusion has resulted in the unnecessary completion of

Class II environmental assessments for some utility projects.

The regulation will be revised to clarify this section by

distinguishing between discharges and withdrawals, and to provide

guidance relating to substantial increases.

In Sec. 1940.311(b)(1)(ii) there has been confusion about

interpreting the withdrawal rate to achieve a 50,000 gallon per day

withdrawal from surface or groundwater for a new withdrawal facility. A

common engineering practice is to design the pumping facility to

achieve the average daily withdrawal in less than a 24 hour period to

provide an adequate safety factor. However, some loan officials

calculate the withdrawal based on pumping the source including any

backup source on a 24 hour basis. This results in completion of a

higher level of environmental review than is required. [[Page 13651]]

The regulation is proposed to be revised to clarify this section by

changing the unit of measurement from gallons per day, to an equivalent

population served. This will eliminate the confusion, and should not

result in a change to the threshold as the present threshold of 50,000

gallons per day for a new withdrawal is based on EPA's definition of

Very Small Water Systems, ``systems serving up to 500 people.'' Based

on an average daily demand of 100 gallons per day per capita, the

average daily withdrawal for very small systems will be 50,000 gallons

per day.

To be consistent, the equivalent population will also be used for

discharges.

Section 1940.311(b)(1)(v) will also be revised to remove the

apparent conflict created by the revision to Sec. 1940.311(b)(1)(ii).

In Sec. 1940.311(b)(2) there has been confusion about the number of

beds which may be added to an existing facility. This confusion has

resulted in the unnecessary completion of Class II environmental

assessments for some essential community facility projects.

The regulation is proposed to be revised to clarify this section by

separately specifying the number of beds for new and existing projects.

In Sec. 1940.311(b)(3)(iii) there has been confusion about whether

medical waste is considered to be a hazardous waste. This confusion has

resulted in the unnecessary completion of Class II environmental

assessments for some essential community facility projects.

The regulation is proposed to be revised to clarify this section by

adding a new section that will deal specifically with medical wastes.

List of Subjects in 7 CFR Part 1940

Endangered and threatened wildlife, Environmental protection,

Floodplains, National wild and scenic river system, Natural resources,

Recreation, Water supply.

Accordingly, the Agencies propose to amend Chapter XVIII, Title 7,

Code of Federal Regulations as follows.

PART 1940--GENERAL

1. The authority citation for part 1940 continues to read as

follows:

Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR

2.23 and 2.70.

Subpart G--Environmental Program

2. Section 1940.311 is amended by redesignating paragraph

(b)(3)(iii) as (b)(3)(iv); revising paragraphs (b)(1)(i), (b)(1)(ii),

(b))(1)(v), and (b)(2); and adding a new paragraph (b)(3)(iii) to read

as follows:

Sec. 1940.311 Environmental assessments for Class I actions.

* * * * *

(b) * * *

(1) * * *

(i) For existing Systems, there will not be either:

(A) A substantial increase in the volume of an existing discharge

or the loading of pollutants from an existing or expanded sewage

treatment facilities, or

(B) A substantial increase in an existing withdrawal from surface

or ground waters.

(C) The existence of a substantial increase will depend on the

particulars of the situation under consideration. Each proposal should

be examined for the possibility of a substantial increase in discharge

or withdrawal. A substantial increase may or may not be determined by

such factors as: evidence of a large increase in pump or pipe size,

other evidence of a large increase in hydraulic capacity, or the need

for a new or amended discharge or withdrawal permit. Whatever factors

are considered, the rationale behind the decision should be documented

as part of the Class I assessment.

(ii) For all systems (existing and new), there will not be either:

(A) A new discharge to surface or ground waters, such that the

additional design capacity of the facility exceeds the average daily

discharge of an equivalent population of 500 persons, or

(B) A new withdrawal from surface or ground waters such that the

additional design capacity of the facility exceeds the demand needed to

serve an equivalent population of 500 persons, and

(C) The potential water quality impacts are analyzed and documented

in the manner required for a Class II assessment and attached as an

exhibit to the Class I assessment.

(D) A new well solely to provide ``backup'' capacity, required by a

State regulatory agency or standard engineering practice, is not

considered a new withdrawal.

* * * * *

(v) For a proposed expansion of a sewage treatment or water supply

facility, such expansion would serve an equivalent population that is

no more than 20 percent or 500 persons (whichever is the larger)

greater than the existing population.

* * * * *

(2) Financial assistance for existing group homes, detention

facilities, nursing homes, or hospitals that add no more than 25 beds

or increase the number of beds by no more than 25 percent, whichever is

greater, or new facilities of not more than 25 beds.

(3) * * *

(iii) Do not produce infectious, medical, biological, or special

medical wastes (including radiological waste of medical origin) that

would exceed small quantity generator limits as established by the

appropriate regulatory agency, and provided the facility's management

plan is reviewed to ensure compliance with the regulatory agency

requirements. The management plan should include standard operating

procedures for notification, permitting, and recordkeeping requirements

as well as handling, storage, packaging, and disposal of infectious

waste materials. Documentation of the compliance review must be

attached as an exhibit to the Class I assessment.

* * * * *

Dated: February 27, 1995.

Michael V. Dunn

Acting Under Secretary for Rural Economic and Community Development.

[FR Doc. 95-6228 Filed 3-13-95; 8:45 am]

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