ENVIRONMENTAL POLICY TRAINING Environmental Compliance Consists of Environmental

ENVIRONMENTAL POLICY TRAINING

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, 7 CFR 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

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

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

7 CFR 1940 -G RHS/RBS ENVIRONMENTAL PROGRAM

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.

Environmental File Checklist Page 1

Environmental File Checklist Page 2

Document the Agency Finding Summary 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.

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)

Categorical Exclusion (Form 1940 -22) • • • Form RD -1940 -22 to 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 II EA) for those programs in which is required. Single Family Housing does not require Intergovernmental Review. (Refer to 1970 – Intergovernmental Review and list of programs subject to Intergovernmental review located here: https: //rd. sc. egov. usda. gov/teamrd/rdps/env/SEC%20 Materials/Forms/All. Items. aspx? Root. Folder=%2 ft eamrd%2 frdps%2 fenv%2 f. SEC%20 Materials%2 f. Intergovernmental%20 Review&Folder. CTID=&View=%7 b. C 50 E 6 E 88%2 d. C 325%2 d 4 A 73%2 d. B 171%2 d 9035370469 D 8%7 d • * important resource = important farmland, wetland, floodplain, historic/cultural property.

Case Study 1 a – 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.

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/NM 01. 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/Fema. Welcome. View? store. Id=10001&catalog. Id=10001&lang. Id=-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/region 6/water/swp/ssa/maps. htm • Storm Water Quality Standard – New Mexico Environment Department

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

What Steps do you take? Cont…… 3) Environmental Justice Form 2006 -38 – Loan Specialist fill out Go to http: //epamap 14. 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/Support. Documents/1970 i. 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

What goes in the file for Diaz Optometry Cat. Ex? 1) 2) 3) 4) 5) 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.

Modified Class I EA (1940. 317(g)) ( For CATEX with extraordinary circumstances. Three special exceptions: 1. 2. 3. 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 Cat. Ex and Modified Class I is: 1) the Modified Class I EA uses a 1940 -21 Form and Exhibit I FONSI, instead of the 1940 -22 Form as the finding 2) The Modified Class I EA includes documentation as to why extraordinary circumstance is not a significant adverse impact.

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 II EA) for those programs in which is required. Single Family Housing does not require Intergovernmental Review. (Refer to 1970 – Intergovernmental Review and list of programs subject to Intergovernmental review located here: • • • https: //rd. sc. egov. usda. gov/teamrd/rdps/env/SEC%20 Materials/Forms/All. Items. aspx? Root. Folder=%2 fteamrd%2 frdps %2 fenv%2 f. SEC%20 Materials%2 f. Intergovernmental%20 Review&Folder. CTID=&View=%7 b. C 50 E 6 E 88%2 d. C 325%2 d 4 A 73%2 d B 171%2 d 9035370469 D 8%7 d Items in red are more that what is required for a Cat. Ex

Case Study 1 b – 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

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.

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.

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 § Collect any necessary environmental information & comments. § Are there greater than minimal impacts expected to result from the Applicant’s proposal?

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.

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

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 II EA) for those programs in which is required. Single Family Housing does not require Intergovernmental Review. (Refer to 1970 – Intergovernmental Review and list of programs subject to Intergovernmental review located here: https: //rd. sc. egov. usda. gov/teamrd/rdps/env/SEC%20 Materials/Forms/All. Items. aspx? Root. Folder=%2 fteamrd %2 frdps%2 fenv%2 f. SEC%20 Materials%2 f. Intergovernmental%20 Review&Folder. CTID=&View=%7 b. C 50 E 6 E 88%2 d. C 325%2 d 4 A 73%2 d. B 171%2 d 9035370469 D 8%7 d

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.

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/NM 01. 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.

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/Support. Documents/1970 i. pdf

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. 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.

What goes in the file for Jack’s Auto Repair’s Class I EA? 1) Form 1940 -21 signed in file is “finding” and accompanying documentation, including consultation letters 2) Form 1940 -20 filled out by Applicant 3) FEMA Form 81 -93 – Floodplain/ Flood Insurance 4) Environmental Justice Form 2006 -38 5) Intergovernmental Review Documentation–required since some new construction– Letter/corresp. Sent and any letter received. 6) Finding of no adverse effect to historic properties 7) Documentation of no liability of contamination as specified in AN 4621 – Environmental Due Diligence 8) Exhibit I FONSI notice to file 9) Documentation of 15 -day FONSI Public Notice in the newspaper

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

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.

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

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

Class II EA • Any adverse or significant 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

Class II EA (1940 -G Exhibit H) Page 1 of 2 • No Preliminary Public Notice (unless there is potential impact to an * important resource then 30 -day PN) • Result is “FONSI” (Exhibit I) • Applicant fills out 1940 -20 and drafts Exhibit H, Loan Specialist verifies and signs Exhibit H • Mandatory Public Notice of FONSI (15 -day) • All appropriate Agency consultation required (including SHPO consultation) • Final Public Notice only when wetland or floodplain is being impacted (FN and PN of FONSI can be combined - 15 -day) • 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 (if not already contacted for above) * farmland, wetland, floodplain or historic/cultural resource

Class II EA (1940 -G Exhibit H) 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 II EA) for those programs in which is required. Single Family Housing does not require Intergovernmental Review. (Refer to 1970 – Intergovernmental Review and list of programs subject to Intergovernmental review located here: https: //rd. sc. egov. usda. gov/teamrd/rdps/env/SEC%20 Materials/Forms/All. Items. aspx? Root. Folde r=%2 fteamrd%2 frdps%2 fenv%2 f. SEC%20 Materials%2 f. Intergovernmental%20 Review&Folder. CTID= &View=%7 b. C 50 E 6 E 88%2 d. C 325%2 d 4 A 73%2 d. B 171%2 d 9035370469 D 8%7 d

Case Study 4 • Hooghan Hoozho’s Project, Gallup New Mexico • MFH Guaranteed Loan • Proposal – New construction of a three story Multi-Family low income mixed use building, to consists of one building with 44 residential units and associated lot upgrades, clearing of two abandoned buildings. • New construction of MFH – 5 to 25 units = Class I EA (1940. 311(a)(1)) • Greater than 25 units = Class II EA (1940. 312(a)(1))

Case Study 4 - What Steps do you take? 1) What class of Action? (1940. 312(a)(1) Class II EA - MFH more than 25 units. 2) Forms - Obtain 1940 -20 and Exhibit H EA from applicant • Send Consultation Letters to all appropriate Agencies and Tribes with map and good project description including area of impact. • Agencies: USFWS, SHPO, BLM, NRCS, EPA, NM Environment Department, NM Energy, Minerals, and Natural Resources Dept. , New Mexico Dept. of Transportation, Cibola National Forest, U. S. Forest Service, BLM, Local Municipality for Intergovernmental Review. • Tribes: Pueblo of Laguna, Navajo Nation, Pueblo of Tesuque, Pueblo of Zuni, Pueblo of Isleta, Pueblo of Acoma, White Mountain Apache Tribe, Hopi Tribal Council,

Case Study 4 - Review Exhibit H and Consultation Letters/ emails • Wait 30 days from receipt of letter. If no response or no responses indicated there were any resources that would be impacted, document and finalize the EA. • In this case no impacts were identified to any resources, since it was located on a disturbed lot with existing buildings and infrastructure • In this case no alternatives needed to be reviewed, besides the no action alternative since there were no impacts to resources. • Cibola Nation Forest and Grasslands responded with a letter indicated they see no potential effects to resources • The Hopi Tribe and White Mountain Apache responded with letters indicating no potential effects to resources

Case Study 4 - SHPO Consultation and Finding of Effect • SHPO indicated in a letter that the proposed demolition of the existing building is not considered an adverse effect, but that the historic Liberty hotel should: • 1) be protected during construction of the adjacent underground garage through use of low vibration equipment in order to protect this historic property, and • 2) the inadvertent discovery clause (bones/historic/prehistoric remains uncovered cease work immediately). • The Liberty Hotel is within the “Historic Resources of the Downtown Gallup District”, a historic District listed on the National Register of Historic Places on 1985. The Loan Specialist wrote a letter to SHPO with the finding of a no adverse effect to historic properties, and the SHPO concurred. In this case as long as the EA and LOC include these two requirements the Section 106 consultation is complete.

Case Study 4 - Steps to 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/Support. Documents/1970 i. pdf

Case Study 4 - What noticing did we need to do? • No Preliminary (30 -day) or Final (15 -day) Public Notice (b/c no impact to farmland, wetland, floodplain or historic/cultural resource ) • 15 -day FONSI public notice in the paper. EA must be signed after the 15 days are completed.

Case Study 4 - What goes in the file for Hooghan Hoozho’s Class II EA? 1) Exhibit H – EA (signed by Loan Specialist, SEC, Loan Approval Official) and Exhibit I FONSI (signed by Loan Approval Official) Includes all consultation letters sent and all consultation letters received, and a summary of this consultation in Exhibit H. 2) Form 1940 -20 filled out by Applicant 3) FEMA Form 81 -93 – Floodplain/ Flood Insurance 4) Environmental Justice Form 2006 -38 5) Intergovernmental Review Documentation–required since some new construction– Letter/corresp. Sent and any letter received. 6) Finding of no adverse effect to historic properties 7) Documentation of no liability of contamination as specified in AN 4621 – Environmental Due Diligence (if applicable) 8) Exhibit I FONSI notice to file 9) Documentation of 15 -day FONSI Public Notice in the newspaper

NEPAssist - Excellent Tool to Verify accuracy of the applicant’s submitted Exhibit H NEPAssist website: CEQ’s tool (Developed in concert with other agencies) There are two versions of NEPAssist: a public version, and an extranet version: NEPAssist Public: The public version of NEPAssist doesn’t require a username and password and may be accessed at: http: //www. epa. gov/oecaerth/nepassist-mapping. html • NEPAssist Extranet: • The federal government Extranet version of NEPAssist requires a username and password and may be accessed • at: http: //nepassist. epa. gov • 1 - Click on the “Request Access to NEPAssist” link at the bottom right • 2 - Enter the required information: ALL THE FIELDS ARE REQUIRED. • 3 - You may use the primary system contact name (Jessica Trice), e-mail (trice. jessica@epa. gov) and phone number (202 -564 -6646) if you do not have an EPA sponsor. • 4 - Select NEPAssist from the dropdown application menu, check the box for the EPA Privacy & • Security Notice and hit “Submit”. You will be granted access within a few days • •

AN 4619 – When Construction has been Initiated What if the 44 unit MFH was in the process of being built already, and the applicant comes in for financing? • According to AN 4619, the Agency is required to perform the same Class II EA that would be conducted if the building had not yet been built. • In this case the Agency would write a letter notifying the Applicant that their financial assistance may be in jeopardy, and that no further construction should take place on the site or they may risk not getting federal financial assistance from RD. • The Agency would need to then document that the applicant had not tried to circumvent NEPA or Section 106 (had the agency indicated to the applicant previously there were historic properties adjacent? ) • The Agency would then attempt to conduct the same Agency and Tribal Consultation to complete the EA. • Since all of the soil disturbance occurred within previously disturbed areas the Agency could perform the Class II EA ex post facto or retroactive if you will. If any Agency objects and indicates their opportunity has been foreclosed, RD should continue to consult with them immediately and reiterate the many of our applicants come for financing after they start construction. RD is unique in that way.

Flip side • This is an example of an easy Class II EA which should be short and not lengthy. Other EAs with multiple impact should adequately cover those resources impacted and the alternatives that were reviewed in detail, as well as mitigation that was required. • Something that you thought was a cat ex could actually be a Class II EA, or require Section 106 consultation…consult with your SEC often. Feel free to contact the N/O often, if your SEC is not available. We do not bite!

Adoption • Rural Development may adopt all or a part of another Federal agency’s EA or EIS • It must meet the requirements of 1940 -G • If the EA meets the requirements of Rural Development Regulations • Prepare a FONSI • No Public notice required if: üa similar finding was made by the other agency üthe notice clearly described the proposal üthe notice was published less than 18 months from adoption date

What to avoid… • Subjective statements given instead of proper impact analysis • Lack of supporting documentation – maps showing site, etc • No adverse impacts identified or quantified • Mitigation measures not identified • Section 106 not accurately carried out or carried out at all • No Tribal consultation per Section 106 carried out • US FWS – ESA Section 7 consultation and finding missing • FPPA Form AD-1006 consultation with NRCS missing • EJ analysis Form RD 2006 -38 missing • Phase I ESA older than 5 years or when the site has been modified • Lack of consultation on Air Quality, USFWS, State CZMA, Intergovernmental Review (SPOC, COG, planning agency)

RENEWABLE ENERGY

General Guidelines for Renewable Energy Class of Action Solar Cat. Ex Small or Large Solar Photovoltaic installed on existing structure with no ground disturbance and < 10 k. W Class I EA Solar, Photovoltaic = >10 k. W with ground disturbance Small Solar Thermal storage volume of the system = or < 240 gallons or has collector area of = or <1, 000 SF. Class II EA Large Solar, Thermal, Commercial Scale >240 gallons or collector area > 1, 000 SF Potential Environmental Impacts to Document: Photovoltaic– hazardous waste disposal Thermal - • • Land use & historic properties Wildlife, bird, insect incineration Salt intrusion into soil and/or water Hazardous waste disposal

General Guidelines for Renewable Energy Class of Action Geothermal Cat. Ex All direct use open and closed loop with minimal ground disturbance Class I EA - Electric Generation Closed Loop Class II EA Electric Generation Open Loop Potential Environmental Impacts to Document: • • • Land use and environmentally sensitive areas historic and cultural properties Fish and Wildlife, bird, insect incineration Air Emissions or liquid effluents Geologic – land subsidence, increased micro seismic activity

General Guidelines for Renewable Energy Class of Action Wind Class I EA Small or less than 100 k. W and hub height< 120 feet and if on grid at less than 600 volts. Class II EA Large > 100 k. W and hub height >120 feet) Potential Environmental Impacts to Document: • Threatened & Endangered species & critical habitat • habitat fragmentation and displacement • Migratory birds and bats • Historic and archeological resources • Accessibility, aesthetics, lighting, noise, aviation safety • Socioeconomic • Land use & Community concerns

General Guidelines for Renewable Energy Class of Action Biomass - Digesters Cat Ex Direct Use –, Installation of new Equipment or Fixtures, Grain Dryer, small corn burner, pellet/woof boiler/stove, system improvements, chipper, Installation of a Generator System for digester if the increased biomass input doesn’t require additional air or water permits or cause substantial traffic generation Class I EA • Small Biomass Digester for direct/onfarm use (400 head of cattle or less) • Moderate sized Anaerobic Digester not generating electricity for the grid • Biodiesel • Small Anaerobic Digester for on farm use only Class II EA Large Digester for generation to grid – Commercial-scale energy production Biorefinery - 9003 Cellulosic Ethanol – refer to PSS Potential Environmental Impacts to Document: • Air Emissions, CO, Nox, particulates • Water Quality – water use, waste water disposal, runoff • Environmental Justice – health, safety, odor • T&E Species habitat fragmentation from biomass collection

General Guidelines for Renewable Energy Class of Action Hydropower – Ocean - Hydrogen Hydropower – FERC coordination – use FERC guidelines Hydrogen Cat. Ex - Energy Transport Class I EA – Energy Production Ocean technologies EIS - tidal, wave, current, wind, solar

Solar Projects • Photovoltaics (PV) use semi-conductor technology to directly convert sunlight into electricity. PV only operates when the sun is shining, and must be coupled either with other power generation mechanisms to ensure a constant supply of electricity. Can be small or large projects. • Solar Thermal works by using mirrors to concentrate sunlight to use directly as a source of heat, as in solar water heating, or to drive a heat cycle such as a sterling engine. Solar Thermal can store thermal energy. Some plants can store enough energy for 7. 5 hours of generation in lieu of sunlight. Can also be larger or small projects.

Photovoltaic (PV) Cat Ex Existing Structure No Ground Disturbance Class I EA Minimal Ground Disturbance

Solar Thermal Class II EA Solar Thermal Cat Ex

Geothermal Heat Pumps • Closed Loop Geothermal heat pumps are the most common widely installed units. Regardless of installed in groundwater or dry soil, the heating and cooling process all takes place within an enclosed series of pipes buried beneath the surface. A water/refrigerant mixture is often used to alternately add or draw heat to the subsurface area, but it never leaves the closed loop. • Open Loop Geothermal heat pumps require a substantial local water supply either from body of water like a pond or groundwater reserves from a well. The open loop system does not circulate but draws from the well or lake as needed to heat and reversing as necessary when cooling is required. The water is put back into the water source or emitted via a surface drain. • open loop usually more efficient • closed loop are more common much more flexible, and are still more energy efficient than traditional air comfort systems.

Closed Loop Geothermal heat pumps Geothermal Direct Use Cat Ex Geothermal Direct Use Class I EA

Open Loop Geothermal heat pumps Class I EA Small Facility Class II EA Large Facility

Case Study 5 – B&I Installation of a Solar Array • Near Las Cruses, New Mexico • Guaranteed Loan • Proposal – New construction of large scale Photovoltaic solar array • >50 k. W with ground disturbance within an 8 acre area • Partially within floodplain • Biological assessment found Mexican Spotted Owl in area- USFWS consultation required.

Case Study 5 – Solar Array • Proposal classifies as a Class I EA according to the guidance given for Solar • Proposal is located partially within a 100 year floodplain • Adjacent to San Andres Wildlife Refuge within critical habitat of the Mexican spotted owl (preliminary biological survey sited one near the site) • Two boxes checked on the Class I EA Form 1940 -21 indicates that the proposal should be elevated to a Class II EA (boxes b and f checked yes). • Forms - Obtain 1940 -20 and Exhibit H EA from applicant • Exhibit H will require alternatives analysis that reviews other feasible off-site locations is required

Case Study 5 - What Steps do you take? 2) Send Consultation Letters to all appropriate Agencies and Tribes with map and good project description including area of impact. • Agencies: USFWS, SHPO, BLM, NRCS, EPA, NM Environment Department, NM Energy, Minerals, and Natural Resources Dept. , New Mexico Dept. of Transportation, U. S. Forest Service, Local Municipality for Intergovernmental Review. • Tribes: Pueblo of Laguna, Navajo Nation, Pueblo of Tesuque, Pueblo of Zuni, Pueblo of Isleta, Pueblo of Acoma, White Mountain Apache Tribe, Hopi Tribal Council,

Case Study 5 - Review Exhibit H and Consultation Letters/ emails • The SHPO and Hopi Tribe and White Mountain Apache responded with letters indicating no potential effects to resources, other tribes did not respond, so move forward with Section 106 determination of no effect.

Mitigation • Avoid 100 -year and 500 -year floodplain – It was determined that the project area could be moved to avoid siting within and any impact to the 100 -year floodplain. This is on-site avoidance • Consultation with the USFWS determined that a finding of may affect, not likely to adversely affect could result if the project area could be moved to the west, which was 2000 feet from the closest critical habitat for the Mexican Spotted Owl. • The EA, FONSI, and Letter of Conditions all had to include documentation of the above conditions with respect to the spotted owl in order for RBS to provide financial assistance.

Case Study 5 – Solar Array • Exhibit H document must include • USFWS consultation (Consult with your SEC or N/O for assistance in this consultation if needed) • RBS Determination of effect for Section 7 of the Endangered Species Act 1) No Effect • No effect whatsoever, no further consultation required. 2) May Affect, Not Likely to Adversely Affect • Insignificant or discountable effects • Requires concurrence from USFWS/NMFS 3) May Affect , Likely to Adversely Affect • Risk of “take” • Requires formal consultation with USFWS/NMFS or “Biological Opinion” • Sharepoint Site Webinar – Section 7 of ESA – find here: • https: //rd. sc. egov. usda. gov/teamrd/rdps/env/Environmental%20 Training%20 Material/Forms/All. Items. aspx? Root. Folder=%2 fte amrd%2 frdps%2 fenv%2 f. Environmental%20 Training%20 Material%2 f 2012%202013%20 National%20 Office%20 Webinar%20 Training% 2 f 7%2 d%20 Endangered%20 Species%20 Act%20 Webinar%20%2 d%20 May%202013&Folder. CTID=&View=%7 b. A 71 A 4 E 20%2 d. F 052%2 d 4 DAA%2 d. A 039%2 d. B 3 B 52 CD 5 B 347%7 d

Case Study 5 - Steps to 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/Support. Documents/1970 i. pdf

Case Study 5 - What noticing did we need to do? • Preliminary (30 -day) Notice required for potential impact to 100 -year floodplain • Private Party Notice to Applicant of location within the floodplain • Combined Final and FONSI 15 -day) Public Notice required for floodplain and Class II EA. • 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 (if not already contacted for above) • EA must be signed after the 15 days are completed.

Case Study 5 - What goes in the file for Solar Array Class II EA? 1) Exhibit H – EA (signed by Loan Specialist, SEC, Loan Approval Official) and Exhibit I FONSI (signed by Loan Approval Official). 2) Form 1940 -20 filled out by Applicant 3) FEMA Form 81 -93 – Floodplain/ Flood Insurance 4) Environmental Justice Form 2006 -38 5) Intergovernmental Review Documentation–required since some new construction– Letter/corresp. Sent and any letter received. 6) Finding of no adverse effect to historic properties 7) Finding of “may affect/not likely to adversely affect” endangered species 8) Exhibit I FONSI notice to file 9) Documentation of 15 -day FONSI Public Notice in the newspaper

Case Study 5 RBS Solar Array Installation Success!!

Recommended Resources Sharepoint Address https: //rd. sc. egov. usda. gov/teamrd/rdps/env/SEC%20 Materials/Forms/All. Items. aspx – CEQ Regulations – RD Instr. 1940 -G including Forms 1940 -20, 21, 22 – 1940 -G Cheat Sheet – Environmental File Checklist – goes on top of each section of Environmental File – All ANs issued by PSS – Write-up of differences between direct, indirect, and Cumulative Impacts – For HPG – RD Instr. 1944 -N, Exhibit F-2 and PMOA Inst. 2000 -FF – Self Help – Fm. HA Instr. 1944 -I – IRP RD Instr. 4274 -D (RBS) Other – 1970 Subpart E – Environmental Justice : http: //www. rurdev. usda. gov/regs_toc. html#1970 – 1970 Subpart I – Intergovernmental Review: http: //www. rurdev. usda. gov/Support. Documents/1970 i. pdf – PSS Environmental Assessments/EISs shttp: //www. rurdev. usda. gov/rhs/pss/Environmental. Documents. htm

Recommended Resources • • • Soils http: //websoilsurvey. nrcs. usda. gov/app/Web. Soil. Survey. aspx Floodplains http: //www. msc. fema. gov/webapp/wcs/stores/servlet/Fema. Welcome. View? store. Id=1000 1&catalog. Id=10001&lang. Id=-1 New Mexico Ecological Site (Threatened & Endangered) http: //www. fws. gov/southwest/es/New. Mexico/SBC_view_all_BC. cfm Critical Habitat http: //criticalhabitat. FWS. gov/ Maps http: //www. nm. nrcs. usda. gov/technical/fotg/section-1/maps. html http: //mapserver. mytopo. com/homepage/index. cfm

New Mexico State Land Office has a GIS online mapping tool that you can use to view this map in more detail.

Environmental Consultation Contact Information

Environmental Consultation Contact Information Environmental Assessment Contact Information Agency/Tribe U. S. Army Corps of Engineers New Mexico Environment Department To Whom Director Environmental Impact Review Coordinator Street or PO Albuquerque District Regulatory Branch 4101 Jefferson Plaza, NE Albuquerque, NM 87109 Air Quality Bureau or Ground Water Bureau or Surface Water Bureau or Drinking Water Bureau or Solid Waste Bureau or Hazardous Waste Bureau or Petroleum Storage Tank Bureau www. spa. usace. army. mi/ (214) 665 -7150 (214) 665 -7247 U. S. Environmental Protection Agency Director 1445 Ross Av. Suite 1200 Dallas, TX 75202 -2733 U. S. Fish & Wildlife Service Field Supervisor New Mexico Department of Game and Fish (ANIMALS) National Park Service Director NM Ecological Services Field Office 2105 Osuna Rd. N. E. Albuquerque, NM 87113 -1001 Conservation Services Division P. O. Box 25112 Santa Fe, NM 87504 Intermountain Regional Office Heritage Partnerships Program 12795 Alameda Parkway Denver, CO 80225 -0287 Program Manager Natural Resource Conservation Service State Soil Scientist or District Conservationist Office of the State Engineer Website/Contact/Phone # 6200 Jefferson N. E. , Rm. 305 Albuquerque, NM 87109 -3734 Or District Office New Mexico Office of the State Engineer P. O. Box 25102 Santa Fe, NM 87504 -5102 (505) 342 -3282 Georgia Cleverley (505) 476 -3724 New Mexico Environment Department Office of the Secretary 1190 St. Francis Dr. P. O. Box 5469 Santa Fe, NM 87502 -5469 http: //ifw 2 es. fws. gov/newmexico Wally Murphy (505)346 -2525 Rachel Jankowitz (505) 476 -8000 (505) 476 -8112 (303) 969 -2882 (303) 969 -2897 (303) 969 -2842 Tony Rolfes, State Soil Scientist (505) 761 -4433 (505) 827 -6175

New Mexico Energy, Minerals and Natural Resources Department (PLANTS) State Historic Preservation Office State Forester Archeologist New Mexico Department of Transportation District Engineer, NMSHTP Tribal Correspondence Varies according to county – see website for county by county listing and contact addresses for each tribe. Bureau of Land Mangement Director Federal Emergency Management Agency (FEMA) Director New Mexico Department of Agriculture U. S. Forest Service Director New Mexico State Parks Director Tribal Addresses can be found in the Natural Resource Management Guide Bureau of Indian Affairs Public Information Coordinator Forest Supervisor Forestry Division 1220 S. St. Francis Dr. Santa Fe, NM 87505 NM Office of Cultural Affairs State Historical Preservation Division 407 Galisteo, Suite 236 Santa Fe, NM 87501 Specific District Office or Environmental Section P. O. Box 1149 Santa Fe, NM 87504 Office of External Affairs P. O. Box 27115 Santa Fe, NM 87502 -0115 Region VI 800 N. Loop 288 Denton, TX 76209 -3698 P. O. Box 30005 Las Cruces, NM 88003 -8005 Carson National Forest Cibola National Forest Gila National Forest Lincoln National Forest Santa Fe National Forest Kiowa National Grasslands 408 Galisteo P. O. Box 1147 Santa Fe, NM 87504 Albuquerque Area Office Environmental Quality P. O. Box 26567 Albuquerque, NM 87125 Bob Sivinskii Rare & Endangered Plants Specialist (505) 476 -3347 Michelle Ensey (505) 827 -6320 http: //www. nmshtd. state. nm. us (505) 827 -3234 http: //www. nmhistoricpreservation. org/documents www. blm. gov/nm Hans Stuart (505) 954 -2000 www. fema. org/regions/vi/index. shtm (940) 898 -5399 Tom Bagwell (575) 646 -3007 (575) 758 -6200 (505) 346 -3900 (575) 388 -8201 (575) 434 -7200 (505) 438 -5300 (575)374 -9652 www. emnrd. state. nm. us/nmparks

Questions or Comments Email or call with any comments or questions on this webinar to Juliet. Bochicchio@wdc. usda. gov or 202 -205 -8242