Statement of Policy Regarding the National Environmental Policy Act of 1969

FEDERAL DEPOSIT INSURANCE CORPORATION

Statement of Policy Regarding the National Environmental Policy

Act of 1969

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Final Statement of Policy.

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SUMMARY: As part of the FDIC's systematic review of its regulations and

written policies under section 303(a) of the Riegle Community

Development and Regulatory Improvement Act of 1994 (CDRI Act), the FDIC

is revising its Statement of Policy on the National Environment Policy

Act of 1969 (NEPA). The original Statement of Policy, issued on March

31, 1980, describes the FDIC's responsibility and procedures with

respect to the NEPA.

The revised Statement of Policy reflects the FDIC's experience in

applying the current NEPA Statement of Policy, and primarily affects

applications for deposit insurance for de novo institutions,

establishment of a domestic branch, and relocation of a domestic branch

or main office. Categorical exclusions are established for all other

filings submitted to the FDIC pursuant to 12 CFR part 303. In

extraordinary circumstances, however, the NEPA procedures may also

impact categorically excluded filings. The revision also makes the

Statement of Policy more concise and understandable.

On July 15, 1998, the FDIC published for comment in the Federal

Register its revised Statement of Policy (63 FR 38172-74). During the

45-day public comment period, no comments were received. Accordingly,

the revised Statement of Policy has been adopted by the FDIC's Board of

Directors.

DATES: The revised Statement of Policy will become effective December

14, 1998.

FOR FURTHER INFORMATION CONTACT: Marilyn Reddy, Review Examiner,

Division of Supervision (202) 898-6772; A. Ann Johnson, Counsel, Legal

Division (202) 898-3573; David Fisher, Counsel, Legal Division (202)-

736-3103, Federal Deposit Insurance Corporation, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: The FDIC is conducting a systematic review

of its regulations and written policies. Section 303(a) of the CDRI

Act, 12 U.S.C. 4803(a), requires the FDIC to streamline and modify its

regulations and written policies in order to improve efficiency, reduce

unnecessary costs, and eliminate unwarranted constraints on credit

availability. Section 303(a) also requires the FDIC to remove

inconsistencies and outmoded and duplicative requirements from its

regulations and written policies.

As part of this review, the FDIC has determined that its Statement

of Policy on the NEPA should be revised. The NEPA sets forth a national

policy to promote preservation of the environment. It requires, in

part, that all agencies of the Federal Government include in every

recommendation or report on major Federal actions significantly

affecting the quality of the human environment a detailed statement

that addresses the environmental impact of the proposal. The Council on

Environmental Quality (CEQ) has adopted regulations that implement this

requirement. 40 CFR part 1500.

The FDIC issued its current Statement of Policy in 1980 to provide

guidance on the NEPA and its implementing regulations. The Statement of

Policy provides that the FDIC will consider relevant environmental

factors and make a threshold determination that a proposed action does

or does not significantly affect the environment. The determination is

required for applications for deposit insurance, to establish a branch,

to merge, or to move an office. The current Statement of Policy also

provides detailed information on the preparation of an environmental

impact statement.

Consistent with the goals of the CDRI Act review, the FDIC is

modifying the Statement of Policy to enhance efficiency in implementing

the NEPA requirements. Pursuant to the CEQ regulations (40 CFR

1507.3(b)), the revised Statement of Policy establishes categorical

exclusions for all filings made by depository institutions pursuant to

12 CFR part 303 with the exception of applications for deposit

insurance for de novo institutions, and applications for establishment

of a domestic branch or relocation of a domestic branch or main office.

Absent extraordinary circumstances, filings subject to a categorical

exclusion require no further NEPA action.

For those applications that are categorically excluded, the revised

Statement of Policy provides that the FDIC may request additional

information from applicants if extraordinary circumstances indicate

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that a normally excluded action may have a significant environmental

effect. For example, additional information may be requested where

filings involve real property with endangered or threatened species,

wetlands or floodplains, cultural or historic sites, or where

construction is proposed.

The revised Statement of Policy also describes the responsibilities

of the applicant in submitting a part 303 filing and the FDIC in

reviewing the filing. Before approving a filing that is not

categorically excluded, the FDIC must prepare an environmental

assessment (EA). The applicant is required to submit sufficient

information for the FDIC to determine whether the application may

affect the quality of the human environment.

If the EA prepared by the FDIC indicates that approval of the

filing will not significantly affect the quality of the human

environment, the NEPA process will conclude with a finding of no

significant impact (FONSI) to document the FDIC's determination.

On the other hand, if the EA indicates that approval of the filing

may significantly affect the quality of the human environment, the FDIC

will prepare and circulate an environmental impact statement (EIS) in

accordance with the CEQ regulations. Because cases that involve the

preparation of an EIS are expected to be extremely rare, the revised

Statement of Policy no longer includes detailed information on the

preparation of an EIS. Instead, the revised Statement of Policy states

that the FDIC will comply with the requirements of the CEQ regulations.

In addition, the revised Statement of Policy provides for public

involvement in the FDIC's NEPA compliance activities.

According to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.),

the FDIC may not conduct or sponsor, and a person is not required to

respond to, a collection of information unless it displays a currently

valid Office of Management and Budget (OMB) control number. Although

the revised Statement of Policy does not create or change any

collection of information, OMB has approved the information collections

referenced in the revised Statement of Policy as parts of a larger

collection of information. OMB control numbers for the approved

information collections specifically referenced in the revised

Statement of Policy are OMB control number 3064-0001, expiring on July

31, 2000, for applications dealing with deposit insurance, and OMB

control number 3064-0070, expiring on November 30, 2000, for

applications dealing with establishment of a branch, relocation of a

main office, and relocation of a branch. Application requirements and

procedures are located at 12 CFR part 303 et seq.

On July 15, 1998, the FDIC published for comment in the Federal

Register its revised Statement of Policy (63 FR 38172-74). During the

45-day public comment period, no comments were received. Accordingly,

the Board of Directors of the FDIC has adopted the revised Statement of

Policy on the National Environmental Policy Act, as proposed in the

Federal Register on July 15, 1998 and set forth below.

Statement of Policy

National Environmental Policy Act Procedures Relating to Filings

Made With the FDIC

This Statement of Policy addresses the FDIC's compliance with the

National Environmental Policy Act of 1969, 42 U.S.C. 4331, et seq.

(NEPA), with respect to applications, notices, and requests (filings)

submitted to the FDIC in accordance with governing regulations at 12

CFR part 303. The procedures in this Statement of Policy primarily

affect applications for deposit insurance for de novo institutions,

establishment of a domestic branch, and relocation of a domestic branch

or main office. There may be extraordinary circumstances where these

NEPA procedures also impact other filings submitted pursuant to part

303.

A. Responsibility of the FDIC

The NEPA sets forth a national policy to promote preservation of

the environment. Section 102(2)(C) of the NEPA requires, in part, that

all agencies of the Federal Government include in every recommendation

or report on major Federal actions significantly affecting the quality

of the human environment a detailed statement that addresses the

environmental impact of the proposal. The Council on Environmental

Quality (CEQ) has adopted regulations that implement section 102(2)(C)

of the NEPA. 40 CFR part 1500.

The FDIC believes that its decisions on part 303 filings will

rarely have a significant effect on the human environment.

Nevertheless, it is the policy of the FDIC to evaluate fully its

regulatory actions, as necessary, in accordance with the requirements

of the NEPA. This Statement of Policy supplements, and shall be used by

the FDIC in conjunction with, the CEQ regulations.

B. Background

NEPA and the implementing CEQ regulations require a Federal agency

to prepare an ``environmental impact statement'' (EIS) to analyze the

effects of, and discuss alternatives for, any proposed major Federal

action (including approval of a filing) significantly affecting the

quality of the human environment. Often, to determine whether an EIS

must be prepared, an agency will prepare an ``environmental

assessment'' (EA). The EA will result in either a finding that an EIS

must be prepared, or a finding of no significant impact (FONSI).

C. Definitions

As used in this statement of policy:

Major Federal action includes actions with effects that

may be major and which are potentially subject to Federal control and

responsibility.

Environmental impact statement (EIS) means a detailed

written statement as required by section 102(2)(C) of the NEPA which

analyzes the environmental impact of the FDIC's approval of a filing.

Environmental assessment (EA) means a concise document

that sets forth sufficient information for the FDIC to determine

whether to prepare an EIS.

Finding of no significant impact (FONSI) means a

determination that approval of the filing will not have a significant

effect on the quality of the human environment and therefore no further

NEPA analysis is required.

Categorical exclusion means a category of filings that do

not individually or cumulatively have a significant effect on the human

environment, and which require no NEPA analysis.

D. Categorical Exclusions

The CEQ regulations require Federal agencies to develop categorical

exclusions as part of the agencies' NEPA procedures. 40 CFR

1507.3(b)(2)(ii). Accordingly, the FDIC is establishing categorical

exclusions for all filings made by depository institutions pursuant to

part 303 with the exception of applications for:

(1) Deposit insurance for de novo institutions.

(2) Establishment of a domestic branch, or relocation of a domestic

branch or main office.

All other part 303 filings are subject to categorical exclusions

and, therefore, require no further NEPA action. Consistent with the CEQ

regulations, however, the FDIC may request additional information from

applicants if extraordinary circumstances indicate that a normally

categorically excluded action may have a significant environmental

effect. Such extraordinary circumstances may exist,

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for example, where filings involve real property where endangered or

threatened species, wetlands or floodplains may be present, where the

applicant's proposed activity impacts cultural or historic sites, or

where construction is proposed.

E. FDIC Procedure

In reviewing a part 303 filing, the FDIC will determine whether the

filing falls within the categorical exclusions established by this

statement of policy. If the filing falls within the categorical

exclusions, the FDIC will determine whether the proposal involves any

extraordinary circumstances that require NEPA analysis. If necessary,

the FDIC may request additional information from an applicant to aid in

this determination.

1. Environmental Assessment

The FDIC must prepare an EA before approving a filing for (1)

deposit insurance for a de novo institution, or (2) establishment of a

domestic branch, or relocation of a domestic branch or main office. The

applicant must provide sufficient information for the FDIC to determine

whether the application may affect the quality of the human

environment.

The applicant shall provide information on compliance with local

zoning laws and regulations, and effects on traffic patterns

(including, for example, adequacy of roads and parking places, increase

or decrease of traffic hazards and congestion, and favorable impacts

such as potential decrease in pollution or fuel consumption). The FDIC

may request additional information, as warranted, on other matters.

Based on its evaluation of this information, the FDIC will prepare the

EA.

2. Finding of No Significant Impact

If the EA indicates that approval of the filing will not

significantly affect the quality of the human environment, the NEPA

process will conclude with a FONSI to document the FDIC's determination

of no significant effect on the human environment.

3. Environmental Impact Statement

If the EA indicates that approval of the filing may significantly

affect the quality of the human environment, the FDIC will prepare an

EIS in accordance with the CEQ regulations.

F. Public Involvement

Pursuant to the CEQ regulations, the FDIC will make diligent

efforts to involve the public in its NEPA compliance activities. In

addition to the public notice requirements set forth in part 303, the

FDIC will apprise the public of the availability of any environmental

impact statements it prepares and will provide opportunity for public

comment prior to the finalization of those documents.

G. Summary and Conclusion

Most of the filings made by depository institutions pursuant to

part 303 will fall within the categorical exclusions established by

this Statement of Policy. For those filings not falling within the

categorical exclusions, or involving extraordinary circumstances, the

FDIC will analyze relevant information with respect to environmental

factors and incorporate it into the FDIC's environmental assessment.

Filings that require the FDIC's preparation of an environmental impact

statement are expected to be extremely rare. When those instances

arise, the FDIC will comply with the requirements of the CEQ

regulations regarding the preparation and processing of environmental

impact statements.

H. Information Requests

Inquiries regarding specific filings and requests for documents and

information should be directed to the appropriate regional director of

the FDIC's Division of Supervision.

By order of the Board of Directors.

Dated at Washington, DC, this 27th day of October, 1998.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Executive Secretary.

[FR Doc. 98-30367 Filed 11-12-98; 8:45 am]

BILLING CODE 6714-01-P