USDA Guaranteed and Direct Loan are required to follow the environmental regulations set forth in RD 1970 and the CON Act, both detailed below.

NEPA and RD Part 1970

The National Environmental Policy Act (NEPA) is a federal law that requires federal agencies in the United States to consider the potential environmental impacts of their actions and to disclose those impacts to the public. NEPA applies to a wide range of actions taken by federal agencies, including the development of federal policies, the issuance of permits, and the funding of projects. Part 1970 Subparts A-O breakdown those regulations

In general, the NEPA regulations require the USDA to consider the potential environmental impacts of a proposed project before deciding whether to provide financial assistance through a B&I loan. This may involve conducting an environmental assessment or an environmental impact statement to evaluate the potential impacts of the project on the environment, including natural and cultural resources if the project involves construction or is in an industry that is inherently risky environmentally.

The NEPA regulations also require the USDA to make information about the environmental impacts of a proposed project available to the public, through the preparation of an environmental impact statement or other appropriate document. This allows the public to review and comment on the proposed project and its potential impacts before a decision is made on whether to provide financial assistance. This public notification action is called a Finding of No Significant Impact (FONSI) and is detailed later.

It is important for applicants for B&I loans to be aware of the NEPA regulations and to work with a trusted environmental company experienced with USDA Lending and the USDA to ensure that all necessary environmental considerations are addressed before applying for a loan.

 

Environmental Guidance: https://www.rd.usda.gov/resources/environmental-studies/environmental-guidance

RD Part 1970 Subpart A: https://www.rd.usda.gov/sites/default/files/1970a.pdf

 

Consolidated Farm and Rural Development Act (CON Act)

The Consolidated Farm and Rural Development Act (CON Act) is a U.S. federal law that provides funding and support for rural development projects and initiatives. It was enacted in 1972 and has been amended several times since then. The CON Act provides assistance to rural communities through a number of programs, including the following:

  1. The Agricultural Credit program provides loans, loan guarantees, and grants to farmers, ranchers, and other agricultural businesses to help them improve their operations and increase their production.
  2. The Rural Business Enterprise Grant program provides funding to rural communities to support the development of small businesses, including through grants for business development and expansion, infrastructure improvements, and technical assistance.
  3. The Rural Housing and Community Facilities program provides funding for affordable housing, health care facilities, and other essential community facilities in rural areas.
  4. The Rural Energy for America program provides grants and loan guarantees to help rural businesses and agricultural producers increase their energy efficiency and use of renewable energy sources.

 

Under the Consolidated Farm and Rural Development Act (CON Act), the U.S. Department of Agriculture (USDA) is required to consider the potential environmental impacts of projects that receive financial assistance through its Business and Industry (B&I) Guaranteed Loan program. To comply with this requirement, the USDA typically requires borrowers to prepare an environmental assessment (EA) or environmental impact statement (EIS) as part of the loan application process.

An EA is a document that evaluates the potential environmental impacts of a proposed project, including any potential adverse effects on natural resources, land use, and human health and safety. The EA also identifies any measures that could be taken to mitigate these impacts. An EIS is a more detailed document that examines the potential environmental impacts of a proposed project in greater depth and includes an analysis of alternative approaches and their potential impacts.

The decision to require an EA or EIS is typically based on the size and scope of the project, as well as its potential impacts on the environment. In general, projects that are likely to have significant environmental impacts are required to prepare an EIS, while those with less significant impacts may only need to prepare an EA.

The environmental review process for B&I Guaranteed Loans is intended to ensure that projects receiving financial assistance through the program are consistent with the CON Act’s goal of promoting the economic development of rural areas while also protecting the environment and the public interest.

 

What is a Categorical Exclusion and how can a project be eligible?

Categorical Exclusions: https://www.rd.usda.gov/sites/default/files/1970b.pdf

A categorical exclusion is a type of environmental review process that can be used by federal agencies in the United States to determine whether a proposed action is likely to have a significant impact on the environment. Categorical exclusions are typically used for actions that are determined to have no significant environmental impacts, based on the characteristics of the action and the location in which it will be carried out.

Categorical exclusions are established by federal agencies through regulations or guidance documents. They are typically used to streamline the environmental review process for actions that are unlikely to have significant environmental impacts, in order to reduce the time and resources required for review.

To be eligible for a categorical exclusion, a proposed action must meet the criteria established by the relevant federal agency. This may include considerations such as the type of action, the location of the action, and the potential impacts on natural and cultural resources.

If a proposed action is determined to be eligible for a categorical exclusion, the federal agency may proceed with the action without conducting a more detailed environmental review, such as an environmental assessment or an environmental impact statement. However, the agency may still need to consider and address other environmental considerations, such as compliance with other environmental laws and regulations.

 

Difference in Required Environmental Documents

Environmental Assessment: https://www.rd.usda.gov/sites/default/files/1970c.pdf

Environmental assessments, environmental reports, and environmental impact statements are all documents that are prepared to evaluate the potential environmental impacts of a proposed project or development. However, there are some key differences between these types of documents:

  1. Environmental assessment: An environmental assessment is a document that is prepared to assess the potential impacts of a proposed project on the environment. It typically includes an evaluation of the potential impacts on air quality, water resources, wildlife, and other environmental factors. Environmental assessments are often required by regulatory agencies as part of the permitting process for a project.
  2. Environmental report: An environmental report is a document that is prepared to provide information about the environmental impacts of a proposed project or development. It typically includes an evaluation of the potential impacts on air quality, water resources, wildlife, and other environmental factors, as well as information about any proposed mitigation measures to address these impacts. Environmental reports are often required as part of the permitting process for a project.
  3. Environmental impact statement: An environmental impact statement (EIS) is a document that is prepared to assess the potential environmental impacts of a proposed project or development. It is typically a more comprehensive document than an environmental assessment or environmental report, and is required for projects that are expected to have significant impacts on the environment. An EIS must be prepared in accordance with the National Environmental Policy Act (NEPA) and must be made available for public review and comment before a project can be approved.

In summary, an environmental assessment is a document that evaluates the potential environmental impacts of a proposed project, an environmental report provides information about the environmental impacts of a proposed project, and an environmental impact statement is a more comprehensive document that is required for projects with significant environmental impacts.

 

The specific steps and requirements of an environmental assessment can vary depending on the location, type, and scale of the project, as well as the legal and regulatory frameworks that apply. In general, an environmental assessment involves:

  1. Identifying the potential impacts of a proposed project on the environment, including impacts on air and water quality, soil, vegetation, wildlife, and cultural resources.
  2. Analyzing the potential risks and benefits of the project, including the potential long-term and cumulative effects on the environment and human health.
  3. Developing and evaluating alternatives to the proposed project, including alternative locations, designs, and technologies, to minimize potential impacts on the environment.
  4. Consulting with stakeholders, including government agencies, indigenous communities, and the public, to gather input and concerns about the project.
  5. Preparing an environmental assessment report that summarizes the findings of the assessment and recommends actions to mitigate negative impacts and enhance positive impacts.

The goal of an environmental assessment is to ensure that the potential environmental impacts of a project are thoroughly understood and considered before a decision is made to proceed with the project. This can help to minimize or eliminate negative impacts on the environment and ensure that the project is sustainable and consistent with the principles of environmental protection.

 

What is an Environmental Impact Statement?

Environmental Impact Statements Regulations: https://www.rd.usda.gov/sites/default/files/1970d.pdf

The process for completing an environmental impact statement (EIS) typically involves the following steps:

  1. Scoping: The scoping process involves identifying the potential environmental impacts of a proposed project and the issues that should be addressed in the EIS. This process may involve public meetings and consultation with federal, state, and local agencies, as well as other stakeholders.
  2. Draft EIS: Once the scope of the EIS has been determined, the project sponsor or applicant prepares a draft EIS, which is a document that describes the proposed project and its potential environmental impacts. The draft EIS must also include an analysis of alternative approaches and their potential impacts.
  3. Public review and comment: The draft EIS is made available for public review and comment, and a public hearing may be held to allow members of the community to provide input on the proposed project and the EIS.
  4. Final EIS: Based on the feedback received during the public review and comment period, the project sponsor or applicant prepares a final EIS, which includes any changes or modifications that were made as a result of the public review process.
  5. Decision: Once the final EIS is complete, the federal agency with jurisdiction over the proposed project reviews the document and makes a decision on whether to approve the project. This decision may be based on the potential environmental impacts of the project, as well as other considerations such as economic and social impacts.

The process for completing an EIS can be complex and time-consuming, and it may take several years from the start of the process to the final decision on a proposed project. However, the EIS process is an important tool for ensuring that the potential environmental impacts of a project are carefully considered before a decision is made.

 

 

Finding Of No Significant Impact

A Finding of No Significant Impact (FONSI) is a determination made by a government agency or other decision-making body that a proposed project is not likely to have a significant impact on the environment. A FONSI is typically based on the results of an environmental assessment, which is a process that identifies, predicts, evaluates, and mitigates the potential negative effects of a proposed project on the environment.

To complete a FONSI, the government agency or decision-making body must review the environmental assessment and consider the potential impacts of the proposed project on the environment. If the agency or body determines that the project is not likely to have a significant impact on the environment, it can issue a FONSI, indicating that the project can proceed without the need for further environmental review or analysis.

In order to make a FONSI, the agency or body must follow the appropriate legal and regulatory procedures, including consulting with stakeholders and providing an opportunity for public review and comment. The FONSI should also include a description of the proposed project, the environmental assessment process that was conducted, and the reasons for the determination that the project is not likely to have a significant impact on the environment.

A FONSI is not a final approval for a project, but rather a determination that the project is not likely to have significant environmental impacts and therefore does not require further environmental review. The issuance of a FONSI does not relieve the proponent of the project from the responsibility to comply with all other applicable laws and regulations.

A (FONSI) is a determination made by a federal agency that a proposed action will not have a significant impact on the environment and therefore will not require the preparation of an environmental impact statement (EIS).

The appropriate legal and regulatory procedures for completing a FONSI will depend on the specific federal agency and the type of action being proposed. However, in general, the process for completing a FONSI will typically involve the following steps:

  1. Identify the proposed action and its potential impacts. The first step in completing a FONSI is to identify the proposed action and assess its potential impacts on the environment. This may involve conducting a preliminary environmental assessment (EA) to determine the nature and extent of any potential impacts.
  2. Consider alternatives to the proposed action. The EA should also consider any reasonable alternatives to the proposed action that may be less environmentally damaging.
  3. Determine whether an EIS is required. If the EA indicates that the proposed action may have a significant impact on the environment, an EIS will be required. If the EA concludes that the action will not have a significant impact, a FONSI may be prepared.
  4. Prepare the FONSI. If a FONSI is to be prepared, it should include a detailed explanation of the proposed action and its potential impacts, as well as a description of any alternatives that were considered. The FONSI should also include a statement indicating that the proposed action will not have a significant impact on the environment.
  5. Review and comment. The FONSI must be made available for review and comment by the public and other interested parties.
  6. Issue the FONSI. If no significant issues are raised during the review and comment period, the federal agency can issue the FONSI, indicating that the proposed action will not have a significant impact on the environment and therefore does not require the preparation of an EIS.

It is important to note that the process for completing a FONSI may vary depending on the specific federal agency and the type of action being proposed. It is always advisable to consult with the relevant agency and seek legal counsel if you have any questions about the appropriate legal and regulatory procedures for completing a FONSI.

 

What is an Intergovernmental Review?

1970-i: https://www.rd.usda.gov/sites/default/files/1970i.pdf

An intergovernmental review is a process that allows federal, state, and local government agencies, as well as tribal governments, to review and provide comments on proposed federal actions that may have an impact on their jurisdictions. The purpose of an intergovernmental review is to ensure that the interests and concerns of these entities are taken into account during the decision-making process.

During an environmental assessment (EA), the intergovernmental review process may involve the following entities:

  1. Federal agencies. Federal agencies that have jurisdiction over the proposed action or that may be impacted by it will be included in the intergovernmental review process.
  2. State agencies. State agencies that have jurisdiction over the proposed action or that may be impacted by it will also be included in the intergovernmental review process.
  3. Local government agencies: Local government agencies, such as county and city governments, that have jurisdiction over the proposed action or that may be impacted by it will also be included in the intergovernmental review process.
  4. Tribal governments. If the proposed action may affect tribal lands or resources, tribal governments will also be included in the intergovernmental review process.

It is important to note the specific entities included in the intergovernmental review process may vary depending on the specific federal action being proposed and the potential impacts on the various jurisdictions. The intergovernmental review process is typically coordinated by the federal agency that is responsible for the proposed action, and it is designed to ensure that the interests and concerns of all relevant parties are taken into account during the decision-making process.

 

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