Environmental Program

DEPARTMENT OF AGRICULTURE

Rural Housing and Community Development Service

Rural Business and Cooperative Development Service

Rural Utilities Service

Consolidated Farm Service Agency

7 CFR Part 1940

RIN 0575-AB66

Environmental Program

AGENCIES: Rural Housing and Community Development Service, Rural

Business and Cooperative Development Service, Rural Utilities Service,

and Consolidated Farm Service Agency, USDA.

ACTION: Proposed rule.

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SUMMARY: The Agencies propose to revise their Environmental regulation.

This action is necessary to streamline the environmental review

process. The intended effect of this action is to provide guidance on

sending individual copies of notices to affected property owners when

utility systems are involved.

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):

10.760--Water and Waste Disposal Systems for Rural Communities

10.762--Solid Waste Management Grants

10.763--Emergency Community Water Assistance Grants

10.766--Community Facilities Loans

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

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, and 10.770.

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, Pub. L. 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 have 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 imposed by OMB.

Background

Section 1940.331 describes the public notice requirements for

actions undergoing an environmental review by the Agencies.

In Sec. 1940.331(b)(4) there has been confusion about identifying

the names and mailing addresses of individual property owners who may

be affected by a project when large areas of important land resources

may be affected. This confusion has caused delays and added expense in

the preparation and review of Class I and Class II environmental

assessments for those projects.

The regulation is proposed to be revised to allow the State

Environmental Coordinator to select the methods for notifying affected

property owners, and to provide examples of some other methods that may

be considered.

[[Page 13929]]

List of Subjects in 7 CFR Part 1940

Endangered and threatened wildlife, Environmental protection,

Floodplains, National Wild and Scenic Rivers 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 1940.331 is amended by revising paragraph (b)(4) to read

as follows:

1940.331 Public involvement.

* * * * *

(b) * * *

(4) The public notice procedures for actions that will affect

floodplains, wetlands, important farmland, prime rangelands, or prime

forest lands are contained in exhibit C of this subpart. These

procedures apply to actions that require either an EIS, Class II

assessment or Class I assessment. However, whenever an action normally

classified as a categorical exclusion requires a Class I assessment

because of a potential impact to one of these important land resources,

no public notice procedures apply in the course of completing the Class

I assessment. When applicable to an action, as specified in exhibit C

of this subpart, these public notice procedures can apply at two

distinct stages. The first stage, a preliminary notice, is followed by

a 30 day public review period, and applies to actions that may impact

any of the five important land resources. The second stage, a final

notice, is followed by a fifteen-day public review period, and applies

only to actions that will impact floodplains or wetlands. For Class II

actions, this final notice procedure must be combined with any

applicable finding of no significant environmental impact, which is

described in paragraph (b)(3) of this section. Individual copies of the

preliminary and final notices will be sent to the same parties that are

required to be sent a notice of a finding of no significant impact, as

specified in paragraph (b)(3) of this section, with the following

exceptions:

(i) Whenever property owners affected by proposed mitigation

measures, such as proposed hook-up restrictions on portions of water or

sewer lines that will traverse floodplains, are advised of these

proposed mitigation measures in a preliminary notice, these property

owners need not be sent copies of the final notice as long as the

mitigation measures in the final notice are unchanged from the

preliminary notice and no property owners raised objections or concerns

over the proposed mitigation measures.

(ii) With respect to utility systems, notification of affected

property owners will normally be achieved by distributing an individual

copy of the public notice. However, when the SEC determines that this

method would result in an excessive burden on the applicant,

notification may be achieved by another method or a combination of

methods tailored to the specific needs of the particular case. For

example, in lieu of being individually identified, affected property

owners may be notified by a mass mailing to all of the taxpayers in

each of the taxing areas through which the system will pass. On the

other hand, if the system traverses coterminous taxing areas, with the

smaller area not completely describing the service area of the utility

system, affected property owners might be notified by a mass mailing to

the small taxing area plus identifying the remaining affected property

owners to receive an individual copy. The objective is to notify all

property owners affected by the action and offer them an opportunity to

comment on the action. If affected property owners are not individually

notified, the SEC shall document as part of the environmental review

file, why individual notification is not being used and what other

methods will be used to achieve the stated objective.

* * * * *

Dated: February 27, 1995.

Michael V. Dunn,

Acting Under Secretary for Rural Economic and Community Development.

[FR Doc. 95-6366 Filed 3-14-95; 8:45 am]

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