1. RD Environmental Training: 7 CFR PART 1970
Presented by:
Craig McGowan, CP Southern District Director
Jasper Area Office, Jasper, IN
x 120

2. 7 CFR PART 1970 Effective as of April 1, 2016
Replaces two former regulations
Community Facility regulation 1940-G
Water and Environmental Program regulation 1794
Covers all RD programs
As you can see, Environmental Regs have been out for sometime. There once were regulations for Housing and Utilities, since the rewrite now just one regulation for all RD funded programs. This is helpful for a development such as storm sewers that can be funded through Community Facilities under the Housing programs or through Water and Environmental Programs under Utilities.
Contact RD to obtain and utilize the 7 CFR Part 1970 environmental policy at the beginning of project development. RD has an agency contact matrix along with attachment instructions.

3. SUBPART A
Subpart A explains the general conditions that must exist for Environmental Reviews. General instructions that help guide the understanding of what is required.

4. 1970 SUBPART A HIGHLIGHTS As per 1970.5(b)(3):
Applicants must prepare environmental review documents according to the format and standards provided by the Agency. The Agency will independently evaluate the final documents submitted. All environmental review documents must be objective, complete, and accurate in order for them to be finally accepted by the Agency. Applicants may employ a design or environmental professional or technical service provider to assist them in the preparation of their environmental review documents.
The main point here is that the burden of completing the Environmental Review falls upon the applicant. RD does allow the use of third party preparers. If new to the process, RD will provide the format and contacts to complete the process. It is perceivable for applicanta to complete their own environmental, however, we most often see some entity stepping in for them.

5. 1970 SUBPART A HIGHLIGHTS
Raising the level of environmental review
Environmental conditions, scientific controversy, or other characteristics unique to a specific proposal can trigger the need for a higher level of environmental review than described in subparts B or C of this part. As appropriate, the Agency will determine whether extraordinary circumstances (see ) or the potential for significant environmental impacts warrant a higher level of review.
As the process begins, certain environmental conditions may require a higher level of review. It is best to contact the agency early in the process to get a feel for how things are progressing and what may be needed.

6. 1970 SUBPART A HIGHLIGHTS
and state that applicants must wait until the environmental review process is complete prior to initiating project activities.
If not, the applicant risks losing their funding.
language must be provided to applicants at the very first sign of a project.
RD has a letter to provide any applicants that may be considering using RD. In essence, the letter asks the potential applicant to not begin any work on identified project areas until the Environmental Review has concluded. Doing so could risk that section from being funded, as well as the possibility of the entire proposal losing out on funding. Probably the most common example is that of trees that are standing in the way. If you know trees will need to come down due to the Indiana Bat or the Northern Long Eared Bat roosting possibilities, better off to wait until it is cleared through the process.

7. 1970 SUBPART A HIGHLIGHTS 1970.13 Consideration of Alternatives
Why consider alternatives?
“…to explore and evaluate whether there may be reasonable alternatives to that action that may have fewer or less significant negative impacts.”
The agency will take into account factors like technical and economic feasibility.
Alternatives section should work in conjunction with the Preliminary Engineering Report section about alternatives.

8. 1970 SUBPART A HIGHLIGHTS 1970.14 Public involvement
(d) Public Notices has information on where, when, and how these are supposed to be done.
They must describe the nature, location, and extent of the proposal.
Notices must be in the non-classified section
Applicant must submit an “affidavit of publication” (or similar) from the newspaper and submit it to the agency to be added to RD’s Administrative Record
Public Notices will be required on reports such as an Environmental Assessment. RD will assist in having these notices prepared.

9. 1970 SUBPART A HIGHLIGHTS 1970.16 Mitigation Measures
Mitigation measures necessary for a FONSI will be incorporated into Agency commitment documents, plans and specs, and construction contracts to as to be legally binding
If during construction mitigation measures are not being followed, all advancement of funds and cost reimbursements will be suspended.
Mitigation is not just to get the project funded, but should be followed throughout the bidding and construction process.

10. SUBPART B: CATEGORICAL EXCLUSIONS

11. CATEGORICAL EXCLUSION
Classes of actions that the Agency has determined do not individually or cumulatively have a significant effect on the human environment.
Include all actions listed in , .54, and .55
For our discussion today, we are only going to look at , Categorical Exclusion with a Report. However, I do want to touch on some of the other important parts out of this subsection.

12. EXTRAORDINARY CIRCUMSTANCES
Definition: Unique situations presented by specific proposals, such as characteristics of the geographic area affected by the proposal, scientific controversy about the environmental effects of the proposal, uncertain effects or effects involving unique or unknown risks, and unresolved conflicts concerning alternate uses of available resources.
So from time to time, you will experience Extraordinary Circumstances during your investigation process. Here is what RD sees as the definition of what meets that criteria.
The next few slides go over some of those items that may come up.

13. EXTRAORDINARY CIRCUMSTANCES:
Violation of Federal, state, or local statute, regulation, or permit requirements for environment, safety, and health
Siting, construction, or major expansion of RCRA permitted waste storage, disposal, recovery, or treatment facilities.
Any proposal likely to cause uncontrolled or unpermitted releases of hazardous wastes, pollutants, contaminants, petroleum, or natural gas.

14. EXTRAORDINARY CIRCUMSTANCES
Cont.:
Adverse effect on
Historic properties
Federally listed threatened or endangered species, critical habitat, federally proposed or candidate species
Wetlands
Floodplains
Formally classified land
Special sources of water (sole source aquifers, etc.)
Coastal barrier resources or coastal zone

15. EXTRAORDINARY CIRCUMSTANCES
Cont.:
5. Existence of controversy based on effects to the human environmental brought to the Agency’s attention by a Federal, tribal, state, or local government agency.
All CAT-EXS MUST BE REVIEWED FOR EXTRAORDINARY CIRCUMSTANCES.
Notice at the bottom in all caps When preparing these reports, it is necessary to keep an eye out for anything that may meet the threshold of Extraordinary Circumstances.

16. : CE W/O AN ER
This section is for proposals that involve no or minimal alterations in the physical environment and typically occur on previously disturbed land.
Do not require an applicant to submit environmental documentation with the application.
Real quick from time to time, you will have a project that does not have the effect of impacting anything around it. There is a list of proposals under that would indicate when a Categorical Exclusion w/o a report would be needed. I am not going to list those at this time, but you can pull up the 1970 reg and see what they have listed.
For categorical exclusions with no report ( ) there still needs to be extraordinary circumstances documentation. (For example, you check that the project is not within a floodplain…print off the map and include it in the file).

17. 1970.54 CE WITH AN ENVIRONMENTAL REPORT
Projects that may involve alteration of the physical environment and therefore require an applicant to submit an ER with their application to facilitate our determination that no extraordinary circumstances exist that would elevate the project to an Environmental Assessment.
Categorical Exclusion w/ Report is needed when alteration to the physical environment is necessary but do not include an of the aforementioned Extraordinary Circumstances. The next few slides will give examples of when Cat Ex w/ Report is needed. These will only include those projects in the Water and Environmental Program and Community Facilities. A full list can be seen in the regulation.

18. 1970.54 CE WITH AN ER (a) Small- scale site-specific development
For projects that would impact not more than 10 acres and not cause a substantial increase in traffic.
Does not apply to new industrial processes (like ethanol and biodiesel production facilities).

19. 1970.54 CE WITH AN ER (a) Small- scale site-specific development
CF facilities such as municipal buildings, libraries, security services, fire protection, schools, and health.
5. Installation of new, commercial-scale water
supply wells and associated pipelines or water
storage facilities that are required by a regulatory
authority or standard engineering practice as a
backup to existing production well(s) or as
reserve for fire protection.

20. 1970.54 CE WITH AN ER (a) Small- scale site-specific development
Infrastructure to support utility systems such as water or wastewater facilities; headquarters, maintenance, equipment storage; and energy management systems. This does not include proposals that create new or relocate an existing discharge to or a withdrawal from surface or ground waters, or cause substantial increase in a withdrawal or discharge at an existing site.

21. 1970.54 CE WITH AN ER (a) Small- scale site-specific development
Repair, rehabilitation, or restoration of water control, flood control, or water impoundment facilities, such as dams, dikes, levees, detention reservoirs, and drainage ditches, with minimal change in use, size, capacity, purpose, operation, location, or design from the original facility.

22. 1970.54 CE WITH AN ER (b) Small-scale corridor development
Construction or repair of roads, streets, and sidewalks, including related structures such as curbs, gutters, storm drains, and bridges, in an existing right-of-way with minimal change in use, size, capacity, purpose, or location from the original infrastructure.

23. 1970.54 CE WITH AN ER (b) Small-scale corridor development
Improvement and expansion of existing water, waste water, and gas utility systems:
Within one mile of currently served areas irrespective of the percent of increase in new capacity, or
Increasing capacity not more than 30 percent of the existing user population

24. 1970.54 CE WITH AN ER (b) Small-scale corridor development
Replacement of utility lines where road reconstruction undertaken by non-Agency applicants requires the relocation of lines either within or immediately adjacent to the new road easement or RoW; and

25. ENVIRONMENTAL REPORT
The ER provides project-specific information including an evaluation of the proposal’s potential to impact environmental resources and historic properties so the Agency can determine if the environmental process can be concluded or additional impact analysis is required.
What does the Environmental Report contain? It looks at the proposal’s potential to impact environmental resources and historic properties. It is very important in allowing the agency to determine if any additional impact analysis in needed.

26. ENVIRONMENTAL REPORT
ERs must be submitted to the Agency along with the financial assistance application.
The environmental process must be completed prior to the approval of the financial assistance application.
ER may not reference items provided in other parts of the application (i.e. the PER); all relevant materials must be in the ER.
The ER must be present at the same time as the PER and application. It is important that the ER and PER work together to determine the best alterative to take. Although these documents must be presented at the same time, they are stand alone documents and should not reference other parts of the application, but actually be discussed and available in the report.
Include a conclusion statement for each subject. (For example, there are no wetlands in the project area, therefore there will be no wetland impacts.) At the end of the Report, a Summary of Mitigation should be completed. Include mitigation for each subject (For example, SHPO and state law require work to stop and to be contacted if artifacts are found.; No trees will be cut down from April 1 to September 30 to not impact the Indiana bat.)

27. ENVIRONMENTAL REPORT Project Description and Location should include
Complete project description of all project-related activities (e.g. clearing, grading, excavating, paving, fencing, etc.)
Topographic map
Project map on an aerial photograph
Note: All project elements must be clearly shown on any map provided (INCLUDING ALL PIPE ROUTES)
The Environmental Report should include at a minimum the following information. Organize the reports in the same order as 1970-B Exhibit C or 1970-C Exhibit B. The table of contents provided in 1970-C Exhibit B has been updated as of April 2017.
Project Description and Location: Please note the project elements being clearly shown on any maps provided.

28. ENVIRONMENTAL REPORT Land Ownership and Land Use should identify
The amount of property to be affected or disturbed by each project site, including the site’s current land use and, if applicable, zoning.
Land ownership and regulating agencies (including roads)
Formally classified land (e.g. parks, wilderness areas, state or natural forests, etc.)
The items in the next few slides are found by the Consultant Correspondence letters. (b, c, d, e). RD can provide you a list of agencies to send request letters to.
In general agencies are afforded a 30 day comment window. If there are anticipated impacts, follow-up with the appropriate agency if there was no response. Include all correspondence with the various agencies. This includes the initial request letters.

29. ENVIRONMENTAL REPORT Land Ownership and Land Use should include
Information regarding environmental justice (low-income and minority populations that may be affected)
Consultation with state and local governments

30. ENVIRONMENTAL REPORT Historic Preservation should include
Description of all steps taken to identify historic properties
If confident that no historic properties affected (i.e. no historic buildings and previously disturbed ground), put in the file:
Letter from RD to SHPO with our determination
SHPO concurrence letter
SHAARD documentation

31. ENVIRONMENTAL REPORT Historic Preservation
If not confident (i.e. potentially historic building and/or undisturbed ground), put in the file:
Letter from RD to SHPO authorizing the applicant to enter consultation with SHPO
Letter from applicant to SHPO requesting information
SHPO’s information letter to applicant
SHAARD/interim report and Archaeological survey (if required)
Typically to begin consultation with SHPO, Rd will send a letter indicating that the project is looking in use RD funding, and that we authorize whoever the applicant and their consulting party to correspond with SHPO in regards to the proposal and to cc RD in the process. After the request for information, SHPO will make a determination and ask for RD to either concur or offer additional comment(s). RD will respond. Make sure that all correspondence from consulting party, to RD to SHPO is included in the ER.

32. ENVIRONMENTAL REPORT Historic Preservation
If not confident (i.e. potentially historic building and/or undisturbed ground), put in the file: cont’
SHPO’s letter in response to the arch survey
Letter from RD to SHPO with our determination
SHPO’s concurrence letter
Tribal Correspondence will be done by RD State Environmental Coordinator
USDA, RD Indiana SEC will perform the tribal contact. Please provide the project description and mapping early in the process (around the time SHPO responds). The tribes are afforded a 30-day comment period from when they receive the letter.

33. ENVIRONMENTAL REPORT
Threatened and Endangered Species/Biological Resources
The ER must document whether any project sites or activities will directly or indirectly affect any threatened, endangered, proposed, or candidate species, or would adversely affect designated critical habitat.
Include a discussion on Migratory Bird Treaty Act and the Bald and Golden Eagle Protection Act in the Biological Resources Section.

34. ENVIRONMENTAL REPORT
Threatened and Endangered Species/Biological Resources
Include in the file
IPAC report
County state endangered species list
Consultation with US Fish and Wildlife, if necessary
Consultation with DNR Division of Fish and Wildlife
Consultation with DNR Division of Nature Preserves

35. ENVIRONMENTAL REPORT Wetlands Are wetlands on or near project sites?
If wetlands are suspected, the Army Corps of Engineers will need to be contacted.
Include in the file:
National Wetland Inventory map
NRCS hydric soils map
Corps consultation, if necessary
Wetland delineation, if necessary
If using your own maps with overlays for the appropriate map type, please make sure to source where the information was learned. For example, the National Wetland Inventory Map can be printed at their website, however it the map is overlaid upon the proposed project map, then make sure to cite the National Wetland Inventory as the source of the information.

36. ENVIRONMENTAL REPORT Floodplains
Are any project activities within a floodplain?
Include in the file:
FEMA flood map
Standard Flood Hazard Determination Form from the applicant or lender
Private Party Notice to the Lender/Applicant about Floodplains
Elevation Certificate if a dwelling in a floodplain
Although the FEMA map should be consulted, RD will provide the Standard Flood Hazard Determination Form. We will need accurate addresses to do so. If no address is available, please provide a legal description. Flood Certs are only required for Structures within the utility being proposed. A Flood Map should be submitted for the entire proposed project area.

37. ENVIRONMENTAL REPORT Coastal areas
Is the project is within the Lake Michigan Coastal Zone?

38. ENVIRONMENTAL REPORT h) Prime Farmland
Will any project activities convert important farmland?
If prime farmland is converted, what alternatives were considered and why could they not chosen?
Include in the file:
NRCS prime farmland map
AD-1006, if necessary

39. ENVIRONMENTAL REPORT Environmental Risk Management
What affect will hazardous materials, substances, or wastes that may be released at, generated by, or required for the operation of a proposed facility have on the environment and real estate transactions?
Has a Phase I been completed within the past 6 months? (If so, it should be included in the file.)
A Phase I may not be necessary depending on the project, however, if one was completed in the past 6 months, do please include it. For those Non-Profit Utility borrowers where RD will use a Promissory Note and Real Estate Mortgage and will take Real Estate as Security; for loans of $100, or more, a Phase I Environmental Site Assessment will be required. For Municipal borrowers where the use of bonds are utilized, a Phase I will not be required, but can be accepted.

40. ENVIRONMENTAL REPORT Other Resources
Is the project located in a key water resource area (e.g. sole source aquifer, wellhead protection areas, etc.)?
Obviously, for a number of our water utility projects, this will be the case.

41. SUBPART C: ENVIRONMENTAL ASSESSMENTS
If one of the Extraordinary Circumstances that we went over earlier do exist, then the Cat Ex w/ Report will nee to be elevated to an Environmental Assessment. In essence, the format is quite similar to the Environmental Report, except there are some additional steps to sending correspondence letters and developing a Summary of Mitigation.

42. EA BASICS
An EA is a concise public document used by the Agency to determine whether to issue a FONSI or prepare an EIS
To be prepared concurrently with the early planning and design phase of the proposal
It is not considered complete until it meets the requirements of Subpart C
Again, the Environmental Assessment is very similar to the Environmental Report. There are several items that you should be aware of that very well may promote the ER to an EA, at least commonalities that we see:
Project impacting Wetlands (please note that RD does not approve work in Wetlands)
Project impacting Floodplains
Project impacting Endangered Species
Project increasing capacity by 30% (typically additional users)
Other than slight changes in the actual report, the main difference between the EA and ER is that the EA will require public notices of 14 day period and the publication of a Finding of No Significant Impact (FONSI). When in doubt what is required, once the consultation letters have been received, contact RD personnel for further guidance.

43. QUESTIONS?