Environmental Policy Training

1. Environmental Policy Training

2. Environmental Compliance Consists of: Environmental Statutes (Law by Legislation) National Environmental Policy Act, National Historic Preservation Act, Endangered Species Act, Clean Air Act, etc. Environmental Regulations (Implementing Policy) 7 CFR 1940-G, 7CFR 1794, 36 CFR 800 (NHPA), 40 7 CFR 1500 (CEQ Regulation) Executive Orders (Apply only to Federal Agencies) EO 11988, EO 11990, EO 12898, EO 12372 Intergovernmental Review

3. NEPA NHPA – Historic Properties CAA – Clean Air Act ESA – T&E Species CWA – Clean Water Act CERCLA - Abandoned Facilities RCRA – Facilities in use FPPA – Farmland Protection CZMA – Coastal Zone/Barriers Wild & Scenic Rivers EO 12898 – Environmental Justice EO 11988- Floodplains EO 11990 - Wetlands

4. NEPA Applies to All Agency Actions: Loans, Grants, and Guarantees, Servicing activities - transfer/assumptions, subordinations, partial releases, management, leasing, and sale of inventory property;

5. 7 CFR 1940-G RHS/RBS Environmental Program

6. 1940-G Classes of Actions Categorical Exclusion - (get elevated to Modified Class I EA if extraordinary circumstances) New SFH , or MFH with less than 4 units Facilities with no new construction, no change in use, no increase in employment etc. Class I EA Examples New Multi-Family Housing, 5 to 25 units New Facilities, <25 beds or 25% area, small site less than 5 acres, no substantial traffic generation, no substantial hazardous waste Class II EA Examples New Multi-Family Housing, > 25 units New Facilities, > 25 beds or 25% area, greater than 5 acres, substantial increase in traffic Environmental Impact Statement (EIS) – managed by N/O Performed if an EA indicates there is a significant adverse impact or if there is a known significant adverse impact. Examples: new landfill, major hazardous waste facility, or new mining operation.

9. Environmental File Checklist Page 1

10. Environmental File Checklist Page 2

11. Document the Agency FindingSummary of Required Signatures Who signs each form? • Cat Ex – RD Specialist fills Form 1940-22, approval official signs • Modified Class I EA – RD Specialist fills out 1940-21, approval official signs • Class I EA – RD Specialist fills out Form 1940-21, applicant fills out 1940-20, SEC must review and sign/request additional information Form 1940-21 and the FONSI must be signed by the approval official. • Class II EA – RD Specialist fills out Exhibit H, Applicant fills out 1940-20 and Exhibit H, RD Specialist reviews and approves it, Exhibit H is signed by Loan Specialist, SEC, and Approval official. FONSI (Exhibit I) is signed by Approval Official. • FOR ALL FORMS – Approval official is that individual that has loan or grant authority according to the administrative program regulation.

12. Categorical Exclusion (1940.310(a)) Form RD 1940-22 - When completed properly, the checklist is designed to show when extraordinary circumstances exist • Requires minimal documentation • Circles on form indicate when an Applicant’s proposal must be elevated to a Modified Class I Environmental Assessment (EA)

13. Categorical Exclusion (Form 1940-22) • Form RD -1940-22to be filled out by RD Loan Specialist and Signed by Approval Official • No Preliminary Public Notice • No FONSI to file (Finding of No Significant Impact) • No Public Notice of FONSI • Only agency consultation if * important resource is impacted • SHPO coordination not a requirement (unless unusual circumstance) • Result is “Finding” on Form 1940-22 • No Final Public Notice • Private Party Notice to Applicant if located in floodplain or wetland • Env. Justice Form 2006-38 required for ALL projects and ALL programs EXCEPT SFH. (Refer to 1970 – E - Environmental Justice) • 2) 60-day Intergovernmental Review Notice is to be completed only for those programs that it is written into the rule/NOFA as a requirement…but it should be done for all classifications (CE, Modified Class I EA, Class I EA, Class II EA) for those programs in which is required. Single Family Housing does not require Intergovernmental Review. (Refer to 1970 – I – Intergovernmental Review and list of programs subject to Intergovernmental review located here: https://rd.sc.egov.usda.gov/teamrd/rdps/env/SEC%20Materials/Forms/AllItems.aspx?RootFolder=%2fteamrd%2frdps%2fenv%2fSEC%20Materials%2fIntergovernmental%20Review&FolderCTID=&View=%7bC50E6E88%2dC325%2d4A73%2dB171%2d9035370469D8%7d • * important resource = important farmland, wetland, floodplain, historic/cultural property.

14. Case Study 1a – Diaz Optometry • B&I guaranteed loan • Purchase of existing 2,268 SF office building which is 60 years old • No rehab/improvements, on municipal sewer and water, no production of hazardous medical waste. – applicant intends to use building as an optometrist office.

15. What Steps do you take? 1) What class of Action? • Cat Ex, Page 23, 1940.310(c)(1) Financial assistance directed to existing businesses, facilities, and/or structures that does not involve new construction or large increases in employment……no hazardous waste… 2) What Form to fill out? • 1940-22 – Completed by Loan Specialist • No Construction therefore no impact to the following: • Wetlands and Farmland – www.websoilsurvey.com • Wilderness– USFS, NPS, BLM • Wild & Scenic River– USFS, BLM • Critical habitat/T&E species – USFWS and NM Dept. of Game and Fish • National Landmarks – http://www.nps.gov/nhl/designations/Lists/NM01.pdf • Floodplains – lender required to submit FEMA Form 81-93 – can verify on FEMA’s Map Service Center website here: https://msc.fema.gov/webapp/wcs/stores/servlet/FemaWelcomeView?storeId=10001&catalogId=10001&langId=-1 • Historic Properties –undertaking = purchase existing building with no significant renovation, therefore RD can conclude “no potential to effect” - otherwise contact SHPO • Sole Source Aquifer - http://www.epa.gov/region6/water/swp/ssa/maps.htm • Storm Water Quality Standard – New Mexico Environment Department

16. NM Wild and Scenic River – Management Agency • Jemez River (East Fork) - U.S. Forest Service • Pecos River - U.S. Forest Service • Rio Chama- Bureau of Land Management/U.S. Forest Service • Rio Grande- Bureau of Land Management/U.S. Forest Service Wilderness Areas – Management Agency Bureau of Land Management - http://www.blm.gov/nm/st/en/prog/wilderness.html U.S. Forest Service - http://www.fs.usda.gov/santafe/ National Park Service - http://www.nps.gov/state/nm/index.htm?program=all

17. What Steps do you take? Cont…… 3) Environmental Justice Form 2006-38 – Loan Specialist fill out Go to http://epamap14.epa.gov/ejmap/entry.html to print out maps. 4) Intergovernmental Review not required see here: RD Instruction 1970-I – published on RD website here: http://www.rurdev.usda.gov/SupportDocuments/1970i.pdf Agency programs NOT subject to Intergovernmental Review – • All Single Family Housing Programs • Applications for Non-construction assistance and loan servicing • Applications from Federally recognized Tribes 1970.406(a)(1) • Programs excluded from 12372 process (as listed in their rule) • Programs which State and local governments have elected not to review

18. What goes in the file for Diaz Optometry CatEx? • Form 1940-22 signed in file is “finding” • FEMA Form 81-93 – Floodplain/Flood Insurance • Environmental Justice Form 2006-38 • Intergovernmental Review – not required since no construction • Finding of no adverse effect to historic properties * * Usually not in the file, but according to the regulations, it should be written in the file.

26. Modified Class I EA (1940.317(g)) For CATEX with extraordinary circumstances. Three special exceptions: • No public notices apply (except historic); • Applicant does not complete Form 1940-20, “Request for Environmental Information”; • Action will not be raised to Class II EA even if more than one important land resource is effected. Only difference between a CatEx and Modified Class I is: • the Modified Class I EA uses a 1940-21 Form and Exhibit I FONSI, instead of the 1940-22 Form as the finding • The Modified Class I EA includes documentation as to why extraordinary circumstance is not a significant adverse impact.

27. Modified Class I EA (Form RD -1940-21) • No Preliminary Public Notice • Exhibit I FONSI required in file • No Public Notice of FONSI • Only agency consultation if important resource is impacted • SHPO coordination not a requirement (unless unusual circumstance) • Result is “Finding” on Form 1940-21 and Exhibit I FONSI • No Final Public Notice • Private Party Notice to Applicant if located in floodplain or wetland • Env. Justice Form 2006-38 required for ALL projects and ALL programs EXCEPT SFH. (Refer to 1970 – E - Environmental Justice) • 2) 60-day Intergovernmental Review Notice is to be completed only for those programs that it is written into the rule/NOFA as a requirement…but it should be done for all classifications (CE, Modified Class I EA, Class I EA, Class II EA) for those programs in which is required. Single Family Housing does not require Intergovernmental Review. (Refer to 1970 – I – Intergovernmental Review and list of programs subject to Intergovernmental review located here: https://rd.sc.egov.usda.gov/teamrd/rdps/env/SEC%20Materials/Forms/AllItems.aspx?RootFolder=%2fteamrd%2frdps%2fenv%2fSEC%20Materials%2fIntergovernmental%20Review&FolderCTID=&View=%7bC50E6E88%2dC325%2d4A73%2dB171%2d9035370469D8%7d Items in red are more that what is required for a CatEx

28. Case Study 1b – Diaz Optometrist Scenario 2 • B&I guaranteed Loan for an Optometrist Office • If the building was located on the Espanola Basin Sole Source Aquifer System, the business needed to drill a new groundwater well, and a circle was checked on the 1940-22

29. Elevate to Modified Class I EA 1) Loan Specialist to fill out Form 1940-21 and place Exhibit I FONSI in the File. 2) Requires additional documentation through consultation with the EPA for prevention of impacts to the sole source aquifer. The Sole Source Aquifer (SSA) Protection Program is authorized by section 1424(e) of the Safe Drinking Water Act of 1974 (42 U.S.C. 201, 300 et. Seq., and 21 U.S.C. 349) that requires protection of drinking water systems that are the sole or principal drinking water source of an area and which, if contaminated, would create a significant hazard to public health. Aquifers are a geological formation, group of formations, or part of a formation that is capable of yielding a significant amount of water to a well or spring. SSA designation protects an area’s ground water resources by requiring the Environmental Protection Agency (EPA) to review all proposed projects within the designated area that will receive federal financial assistance.

33. A consultation letter or email from EPA should be included in the file. The letter/email should indicate something to the effect that EPA has no comments on the proposed project given that there is: • no new construction, • no new impervious surface areas, and • the existing facility is on municipal water so it will not be pulling from the aquifer directly • Therefore the proposal will not have an adverse effect on the Espanola Aquifer.

35. Class I Environmental Assessment Typically limited impacts Analyze applicant’s Form 1940-20, “Request for Environmental Information” for completeness, adequacy, signature, and date. Complete RD Form 1940-21 & attachments • Collectany necessary environmental information & comments. • Are there greater than minimal impacts expected to result from the Applicant’s proposal?

36. Class I EA (cont.) • Is a Finding of No Significant Impact (FONSI) appropriate? • If yes, prepare FONSI memo as shown in 1940-G, Exhibit I • No public notice of FONSI required for Class I.

37. Class I EA (Form RD -1940-21) Page 1 of 2 • No Preliminary Public Notice (unless there is impact to important resource * farmland, wetland, floodplain or historic/cultural resource then 30-day PN) • Applicant fills out 1940-20 • Result is “Finding” on Form 1940-21 and Exhibit I FONSI filled out by Loan Specialist • No Public Notice of FONSI • Required SHPO coordination • Other agency consultation only if important resource and for that resource • Final Public Notice (15-day) only when wetland or floodplain is being impacted • Private Party Notice to Applicant if located in floodplain or wetland   • (1940.331) If important resource need to also send Prelim., Final, and FONSI Public Notice individual hard copies to: 1) Regional EPA office 2) State Point of Contact, EO 12372 (not applicable in NM) 3) SHPO 4) Participating State/Federal Agencies for permits/financing 5) Affected Indian Tribes 6) Any interested parties 7) Affected Adjacent Property Owners excluding property owners of unchanged mitigation measures in floodplain

38. Class I EA (Form RD -1940-21) Page 2 of 2 • Env. Justice Form 2006-38 required for ALL projects and ALL programs EXCEPT SFH. (Refer to 1970 – E - Environmental Justice) • 60-day Intergovernmental Review Notice is to be completed only for those programs that it is written into the rule/NOFA as a requirement…but it should be done for all classifications (CE, Modified Class I EA, Class I EA, Class II EA) for those programs in which is required. Single Family Housing does not require Intergovernmental Review. (Refer to 1970 – I – Intergovernmental Review and list of programs subject to Intergovernmental review located here: https://rd.sc.egov.usda.gov/teamrd/rdps/env/SEC%20Materials/Forms/AllItems.aspx?RootFolder=%2fteamrd%2frdps%2fenv%2fSEC%20Materials%2fIntergovernmental%20Review&FolderCTID=&View=%7bC50E6E88%2dC325%2d4A73%2dB171%2d9035370469D8%7d

39. Case Study 2 – Jack’s Auto Repair • B&I guaranteed loan • Purchase of existing gas station building, which is less than 50 years old, and ½ acre lot • Includes rehab/improvements and 10,000 SF expansion, on municipal sewer and water, no production of hazardous waste other than controlled disposal techniques– applicant intends to convert vacant building to auto repair shop.

40. What Steps do you take? • 1) What class of Action? Doesn’t meet 1940.310(c)(1) b/c it proposes expansion. Therefore check Class I EA 1940.311(b)(3) – Yes meets that criteria = small site less than 5 acres, no substantial traffic, no substantial waste production. • 2) What Form to fill out? - Class I EAs utilize 1940-21 (filled out by Loan Specialist) and 1940-20 (filled out by Applicant) • Only minor Construction on a cleared lot, therefore no impact to the following: Wetlands, Wilderness, Wild & Scenic River, Critical habitat/T&E species, Farmland, • National Landmarks – you could check to see that it is not listed as or near a national landmark in NM here: http://www.nps.gov/nhl/designations/Lists/NM01.pdf • Floodplains – lender required to submit FEMA Form 81-93 • Historic Properties –undertaking = purchase existing building that is less than 50 years old with expansion on disturbed lot. No potential to effect so don’t need to contact SHPO or Tribes.

41. What Steps do you take? Cont…… 3) Environmental Justice Form 2006-38 – Filled out by Loan Specialist 4) Intergovernmental Review – Proposal and Program are subject to Intergovernmental Review b/c it involves minor construction. Must notify the local municipality and solicit comments. They have 60 days to respond to letter, but you could document this in a phone conversation. See RD Instruction 1970-I – published on RD website here: http://www.rurdev.usda.gov/SupportDocuments/1970i.pdf

43. Did we miss anything? • It’s a gas station so we need an Environmental Site Assessment. • Lender provides ESA Phase I and Phase II which indicate the site is on the list of remediation sites for petroleum product cleanup of the local subsurface groundwater. • Lender provides report prepared by the EPA and NM Hazardous Waste Bureau (HWB) that indicating that the site is in the program and should be fully remediated by 2016. • Loan Specialist refers to AN 4621 which lists the requirements for this disclosure statement with respect to hazardous materials. • Lender must submit a recommendation to the Agency and the OGC Pollution which outlines the mediation, collateral, etc. etc. as listed in AN 4621. This is reviewed by OGC Pollution Control Team • A determination is made by the Agency and OGC Pollution Control Team to move forward or deny the loan. • Place documentation in the environmental file.

44. What goes in the file for Jack’s Auto Repair’s Class I EA? • Form 1940-21 signed in file is “finding” and accompanying documentation, including consultation letters • Form 1940-20 filled out by Applicant • FEMA Form 81-93 – Floodplain/ Flood Insurance • Environmental Justice Form 2006-38 • Intergovernmental Review Documentation–required since some new construction– Letter/corresp. Sent and any letter received. • Finding of no adverse effect to historic properties • Documentation of no liability of contamination as specified in AN 4621 – Environmental Due Diligence • Exhibit I FONSI notice to file • Documentation of 15-day FONSI Public Notice in the newspaper

45. Class II Environmental Assessments (1940.312) • Larger scale projects potential substantial impacts • Applicant must fill out Form 1940-20 AND EXHIBIT H • RD Loan Specialist reviews/edits Exhibit H to make it an RD document • Solicit and Review comments from regulatory agencies with jurisdiction by law or special environmental expertise. Can be done in writing or verbally • Includes SHPO Section 106 (NHPA), Tribal Consult, USFWS Section 7 (ESA), USEPA (CAA, CWA, Wetlands), NRCS (FPPA), FEMA (Floodplains), Intergov. Review, CERCLA, RCRA

46. Types of Environmental Impacts Direct Impact –Construction of a new building and new access road in a proposed future Industrial Park which disturbs trees and sediment. Indirect Impact – Sediment that runs into adjacent streams and impairs water quality from inadequate SWM or a from large rainfall event from this construction. Cumulative Impacts – Adverse aquatic effects from repeat sediment runoff events into the same stream from many rainfall events (a large rill/ditch forms and additional sediment runs into the stream) or sediment that runs off of other lots that are developed in the park. Connected Actions – Construction of a transmission line into the industrial park for this one lot, will have connected actions (right-of-way disturbance, wetland/ critical habitat impact etc.). Must take into account any potential impact to resources from the additional of this transmission line, such as spurred adjacent development. Mitigation – Applicant is required to place a permanent Conservation Easement on all non-impacted on-site wetlands in perpetuity to compensate for some of the loss of the wetlands that were disturbed.

47. IF impacts proposed - Consider all reasonable alternatives to proposal Ask Applicant what other alternatives were considered and if eliminated, reasons for eliminating Cost alone is not a reason for eliminating an alternative Must also consider technically and logistically feasible Identify and assess reasonable alternatives to the Applicant’s proposal Must meet the Purpose and Need for the proposal Alternative design Alternative location Document any potential impacts from all reasonable alternatives No action alternative always analyzed

48. Mitigation Avoid, minimize, rectify, reduce, compensate Specific, enforceable, funded, effective Identify in EA, Letter of Conditions, or Conditional Commitment Negotiate to be understandable and agreeable to Applicant Permits ARE NOT mitigation

50. Class II EA • Any adverse orsignificant impacts? • Provide Preliminary Public Notice if applicable • Consider all comments from interested parties • Is a FONSI appropriate? • If yes, prepare FONSI memo in 1940-G, Exhibit I • Ask applicant to publish Public Notice of FONSI