83_FR_59495 83 FR 59269 - Rural Development Environmental Regulation for Rural Infrastructure Projects

83 FR 59269 - Rural Development Environmental Regulation for Rural Infrastructure Projects

DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Rural Housing Service
Rural Utilities Service
Farm Service Agency

Federal Register Volume 83, Issue 226 (November 23, 2018)

Page Range59269-59272
FR Document2018-25523

The United States Department of Agriculture (USDA) Rural Development (RD), comprised of the Rural Business-Cooperative Service (RBS), Rural Housing Service (RHS), and Rural Utilities Service (RUS), hereafter referred to as the Agency, is issuing a direct final rule to update the Agency's Environmental Policies and Procedures regulation (7 CFR 1970) to allow the Agency Administrators limited flexibility to obligate federal funds for infrastructure projects prior to completion of the environmental review while ensuring full compliance with National Environmental Policy Act (NEPA) procedures prior to project construction and disbursement of any RD funding. This change will allow RD to more fully meet the Administration's goals to speed the initiation of infrastructure projects and encourage planned community economic development without additional cost to taxpayers or change to environmental review requirements.

Federal Register, Volume 83 Issue 226 (Friday, November 23, 2018)
[Federal Register Volume 83, Number 226 (Friday, November 23, 2018)]
[Rules and Regulations]
[Pages 59269-59272]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25523]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 83 , No. 226 / Friday, November 23, 2018 / 
Rules and Regulations

[[Page 59269]]



DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Housing Service

Rural Utilities Service

Farm Service Agency

7 CFR Part 1970

RIN 0572-AC44


Rural Development Environmental Regulation for Rural 
Infrastructure Projects

AGENCY: Rural Business-Cooperative Service, Rural Housing Service, 
Rural Utilities Service, Farm Service Agency, USDA.

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: The United States Department of Agriculture (USDA) Rural 
Development (RD), comprised of the Rural Business-Cooperative Service 
(RBS), Rural Housing Service (RHS), and Rural Utilities Service (RUS), 
hereafter referred to as the Agency, is issuing a direct final rule to 
update the Agency's Environmental Policies and Procedures regulation (7 
CFR 1970) to allow the Agency Administrators limited flexibility to 
obligate federal funds for infrastructure projects prior to completion 
of the environmental review while ensuring full compliance with 
National Environmental Policy Act (NEPA) procedures prior to project 
construction and disbursement of any RD funding. This change will allow 
RD to more fully meet the Administration's goals to speed the 
initiation of infrastructure projects and encourage planned community 
economic development without additional cost to taxpayers or change to 
environmental review requirements.

DATES: This rule is effective January 7, 2019, without further action, 
unless the Agency receives significant adverse comments or, an intent 
to submit a significant adverse comment, by December 24, 2018. Written 
significant adverse comments or, an intent to submit a significant 
adverse comment, must be received by Rural Development or carry a 
postmark or equivalent no later than December 24, 2018. If significant 
adverse comments are received, the Agency will publish a timely Federal 
Register document withdrawing this rule. The Agency is publishing a 
proposed rule contemporaneously with this final rule.

ADDRESSES: Submit your comments on this rule by any of the following 
methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and, in the lower ``Search Regulations and Federal 
Actions'' box, select ``Rural Utilities Service'' from the agency drop-
down menu, then click on ``Submit.'' In the Docket ID column, select 
RUS-18-AGENCY-0005 to submit or view public comments and to view 
supporting and related materials available electronically. Information 
on using Regulations.gov, including instructions for accessing 
documents, submitting comments, and viewing the docket after the close 
of the comment period, is available through the site's ``User Tips'' 
link.
     Postal Mail/Commercial Delivery: Please send your comment 
addressed to Michele Brooks, Rural Development Innovation Center, 
Regulations Team Lead, U.S. Department of Agriculture, 1400 
Independence Ave. SW, Stop 1522, Room 1562, Washington, DC 20250. 
Please state that your comment refers to Docket No. RUS-18-AGENCY-0005.
    Other Information: Additional information about Rural Development 
and its programs is available on the internet at https://www.usda.gov/topics/rural.

FOR FURTHER INFORMATION CONTACT: Kellie McGinness Kubena, Director, 
Engineering and Environmental Staff, Rural Utilities Service, USDA 
Rural Development, 1400 Independence Ave SW, Mail Stop 1571, Room 2242, 
Washington, DC 20250-1571 Phone: 202-720-1649.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule has been determined to be not significant for the 
purposes of Executive Order 12866, Regulatory Planning and Review, and 
therefore has not been reviewed by the Office of Management and Budget 
(OMB).

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. The Agency has determined that this rule meets 
the applicable standards provided in section 3 of the Executive Order. 
In addition, all state and local laws and regulations that are in 
conflict with this rule will be preempted. No retroactive effect will 
be given to this rule and, in accordance with section 212(e) of the 
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6912(e)), administrative appeal procedures must be exhausted before an 
action against the Department or its agencies may be initiated.

Executive Order 12372

    This final rule is not subject to the requirements of Executive 
Order 12372, ``Intergovernmental Review,'' as implemented under USDA's 
regulations at 2 CFR part 415, subpart C, because this rule provides 
general guidance on NEPA and related environmental reviews of 
applicants' proposals. Applications for Agency programs will be 
reviewed individually under Executive Order 12372 as required by 
program procedures.

Regulatory Flexibility Act Certification

    The Agency has determined that this final rule will not have a 
significant economic impact on a substantial number of small entities, 
as defined in the Regulatory Flexibility Act (5 U.S.C. Sec. Sec.  601 
et seq.), given that the amendment is only an administrative, 
procedural change on the government's part with respect to obligation 
of funds.

National Environmental Policy Act

    In this final rule, the Agency proposes to create limited 
flexibility for the timing of obligation of funds relative to the 
completion of environmental review. The Council on Environmental 
Quality (CEQ) does not direct agencies to prepare a NEPA analysis 
before establishing agency procedures that supplement the CEQ 
regulations for implementing NEPA. The requirements for establishing 
agency NEPA procedures are set forth at 40 CFR 1505.1 and 1507.3. The 
determination that establishing agency NEPA

[[Page 59270]]

procedures does not require NEPA analysis and documentation has been 
upheld in Heartwood, Inc. v. U.S. Forest Service, 73 F. Supp. 2d 962, 
972-73 (S.D. III. 1999), aff'd, 230 F.3d 947, 954- 55 (7th Cir. 2000).

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance (CFDA) numbers assigned 
to the RD Programs affected by this rulemaking are as follows:

10.760--Water & Waste Disposal System Systems for Rural Communities.
10.761--Technical Assistance and Training Grants.
10.762--Solid Waste Management Grants.
10.763--Emergency Community Water Assistance Grants.
10.770--Water & Waste Disposal Loan and Grants (Section 306C).
10.766--Community Facilities Loans and Grants.
10.850--Rural Electrification Loans and Loan Guarantees.
10.851--Rural Telephone Loans and Loan Guarantees.
10.855--Distance Learning & Telemedicine Grants.
10.857--State Bulk Fuel Revolving Loan Fund.
10-858--Assistance to High Energy Cost-Rural Communities.
10.863--Community Connect Grants.
10.865--Biorefinery, Renewable Chemical, & Biobased Product 
Manufacturing Assistance Program.
10.866--Repowering Assistance Program.
10.867--Advanced Biofuel Payment Program.
10.868--Rural Energy for America Program.
10.886--Rural Broadband Access Loan and Loan Guarantee Program.

    All active CFDA programs can be found at www.cfda.gov. The Catalog 
is available on the internet at http://www.cfda.gov and the General 
Services Administration's (GSA's) free CFDA website at http://www.cfda.gov. The CFDA website also contains a PDF file version of the 
Catalog that, when printed, has the same layout as the printed document 
that the Government Publishing Office (GPO) provides. GPO prints and 
sells the CFDA to interested buyers. For information about purchasing 
the Catalog of Federal Domestic Assistance from GPO, call the 
Superintendent of Documents at 202-512-1800 or toll free at 866-512-
1800, or access GPO's online bookstore at http://bookstore.thefederalregister.org.
    Rural Development infrastructure programs not listed in this 
section nor on the CFDA website, but which are enacted pursuant to the 
Rural Electrification Act of 1936, 7 U.S.C. 901 et seq., the 
Consolidated Farm and Rural Development Act of 1972, 7 U.S.C. 1921 et 
seq., or any other Congressional act for Rural Development, will be 
covered by the requirements of this action when enacted.

Unfunded Mandates Reform Act

    This final rule contains no Federal mandates (under the regulatory 
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for 
state, local, and tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of Sec. Sec.  202 and 205 
of the Unfunded Mandates Reform Act of 1995.

E-Government Act Compliance

    The Agency is committed to the E-Government Act, which requires 
Government agencies in general to provide the public the option of 
submitting information or transacting business electronically to the 
maximum extent possible.

Executive Order 13132, Federalism

    The policies contained in this final rule do not have any 
substantial direct effect on states, on the relationship between the 
national government and the states, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
final rule impose substantial direct compliance costs on state and 
local governments. Therefore, consultation with the states is not 
required.

Executive Order 13175, Consultation and Coordination With Indian Tribal 
Governments

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175 requires Federal agencies 
to consult and coordinate with tribes on a government-to-government 
basis on policies that have tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian tribes, on the relationship between the Federal Government 
and Indian tribes or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes. The latest revision 
of the Agency's Environmental Policies and Procedures in 2016 involved 
Tribal consultation via comment period and webinar as a baseline for 
future consultation on individual program actions. The creation of 
limited flexibility for the timing of obligation of funds relative to 
the completion of environmental review is only an administrative, 
procedural change on the government's part and in no way abridges or 
alters that agreement. Therefore, no further consultation is necessary 
on this rule change. The policies contained in this final rule do not 
have Tribal implications that preempt Tribal law. The Agency will 
continue to work directly with Tribes and Tribal applicants to improve 
access to Agency programs. This includes providing focused outreach to 
Tribes regarding implementation of this rule change. Additionally, the 
Agency will respond in a timely and meaningful manner to all Tribal 
government requests for consultation concerning this rule. For further 
information on the Agency's Tribal consultation efforts, please contact 
Rural Development's Native American Coordinator at (720) 544-2911 or 
[email protected].

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or 
write a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To

[[Page 59271]]

request a copy of the complaint form, call (866) 632-9992. Submit your 
completed form or letter to USDA by: (1) Mail: U.S. Department of 
Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 
Independence Avenue SW, Washington, DC 20250-9410; (2) fax: (202) 690-
7442; or (3) email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Information Collection and Recordkeeping Requirements

    In accordance with the Paperwork Reduction Act, the paperwork 
burden associated with this final rule has been approved by the Office 
of Management and Budget (OMB) under the currently approved OMB Control 
Number 0575-0197. The Agency has determined that changes contained in 
this regulatory action do not substantially change current data 
collection that would require approval under the Paperwork Reduction 
Act of 1995 (44 U.S.C. Chapter 35).

Background

    The United States Department of Agriculture (USDA) Rural 
Development (RD) programs provide loans, grants and loan guarantees to 
support investment in rural infrastructure to spur rural economic 
development, create jobs, improve the quality of life, and address the 
health and safety needs of rural residents. Infrastructure investment 
is an important national policy priority. As directed by E.O. 13807 in 
2017, USDA as a member of the Federal Permitting Improvement Steering 
Council has reviewed its NEPA implementing regulations and policies to 
identify impediments to efficient and effective environmental reviews 
and authorizations for infrastructure projects. This final rule is part 
of that effort to improve the efficiency and effectiveness of RD's 
environmental reviews and authorizations for infrastructure projects in 
rural America.
    On April 25, 2017, the President created the Interagency Task Force 
on Agriculture and Rural Prosperity (Task Force) through E.O. 13790 and 
appointed the Secretary of Agriculture as the Task Force's Chair. Among 
the purposes and functions of the Task Force was to,

    ``. . . identify legislative, regulatory, and policy changes to 
promote in rural America agriculture, economic development, job 
growth, infrastructure improvements, technological innovation, 
energy security, and quality of life, including changes that remove 
barriers to economic prosperity and quality of life in rural 
America.''

The Task Force Report issued on October 21, 2017, included calls to 
action on achieving e-Connectivity for Rural America, improving rural 
quality of life, harnessing technological innovation and developing the 
rural economy.

Purpose of the Regulatory Action

    This rulemaking fulfills the mandate of E.O. 13807 as well as the 
goals of the President's Interagency Task Force on Agriculture and 
Rural Prosperity by identifying regulatory changes that promote 
economic development and improve the quality of life in rural America. 
The RD infrastructure projects impacted by this rule are often critical 
to the health and safety and quality of life in rural communities. In 
some cases, funding decisions made by Rural Development are the first 
step upon which a much larger process of community economic development 
depends. This amendment to existing regulation will allow the Agency to 
obligate funding conditioned upon the full and satisfactory completion 
of environmental review for infrastructure projects. This change will 
give applicants, and often the distressed communities they represent, 
some comfort to proceed with an economic development strategy, 
including the planning process associated with NEPA, without fear that 
funds may be rescinded before the NEPA process is completed. With this 
change in place, RD can more fully meet the government's goals of 
speeding up the initiation of infrastructure projects, encouraging 
planned community economic development, and leveraging investment 
without additional cost to taxpayers or any change in environmental 
review requirements. Infrastructure projects covered by this final rule 
include those, such as broadband, telecommunications, electric, energy 
efficiency, smart grid, water, sewer, transportation, and energy 
capital investments in physical plant and equipment.

Changes to the Current Regulation

    Nothing in this final rule reduces RD's obligation to complete the 
NEPA planning process prior to foreclosing reasonable alternatives to 
the federal action. The current regulation at 7 CFR 1970.6 (``Financial 
assistance'') states that the Agency defines the major decision point 
for completion of NEPA as the approval of financial assistance. 
Similarly, 7 CFR 1970.11(b) identifies Agency obligation as the point 
by which the environmental review must be concluded. As amended by this 
final rule, 7 CFR 1970.11(b) will now provide RD Administrators limited 
flexibility to obligate funds for infrastructure projects prior to the 
completion of the environmental review process where the assurance that 
funds will be available is important for community health, safety, or 
economic development. As a result, the environmental review process 
must be completed prior to disbursement of any RD funds, or any other 
action that would have adverse environmental impact or limit the choice 
of reasonable alternatives. The conditions of obligation will be 
defined in the documentation of the agreement approving the financial 
assistance between the Agency and the applicant. If, however, the 
conditions of obligation are not met, or the agency chooses not to 
proceed with the project after considering the results of the NEPA 
process, the Agency will rescind the obligated funds. With these 
conditions, the Agency retains control of the final decision to 
authorize construction and release funds based on the satisfactory 
completion of the environmental review. Note, this final rule will not, 
and does not, change any of the requirements for environmental reviews. 
Should an applicant choose to commence a project and thus foreclose 
reasonable alternatives, such action would result in de-obligation of 
federal funding, thereby eliminating any federal action for NEPA 
purposes on the part of Rural Development. Until the Agency concludes 
the environmental review and decides to proceed with the project, the 
obligated funds will be reserved for the infrastructure project and 
less susceptible to Congressional rescission.

List of Subjects in 7 CFR Part 1970

    Administrative practice and procedure, Buildings and facilities, 
Environmental impact statements, Environmental protection, Grant 
programs, Housing, Loan programs, Natural resources, Utilities.

    Accordingly, for reasons set forth in the preamble, chapter XVII, 
of subtitle B, title 7, Code of Federal Regulations is amended as 
follows:

PART 1970--ENVIRONMENTAL POLICIES AND PROCEDURES

0
1. The authority citation for part 1970 continues to read as follows:

    Authority: 7 U.S.C. 6941 et seq., 42 U.S.C. 4241 et seq.; 40 CFR 
parts 1500-1508; 5 U.S.C. 301; 7 U.S.C. 1989; and 42 U.S.C. 1480.


0
2. Revise Sec.  1970.11(b) to read as follow:

[[Page 59272]]

Sec.  1970.11  Timing of the environmental review process.

* * * * *
    (b) The environmental review process must be concluded before the 
obligation of funds; except for infrastructure projects where the 
assurance that funds will be available for community health, safety, or 
economic development has been determined as necessary by the Agency 
Administrator. At the discretion of the Agency Administrator, funds may 
be obligated contingent upon the conclusion of the environmental review 
process prior to any action that would have an adverse effect on the 
environment or limit the choices of any reasonable alternatives. Funds 
so obligated shall be rescinded if the Agency cannot conclude the 
environmental review process before the end of the fiscal year after 
the year in which the funds were obligated, or if the Agency determines 
that it cannot proceed with approval based on findings in the 
environmental review process. For the purposes of this section, 
infrastructure projects shall include projects such as broadband, 
telecommunications, electric, energy efficiency, smart grid, water, 
sewer, transportation, and energy capital investments in physical plant 
and equipment, but not investments authorized in the Housing Act of 
1949.
* * * * *

    Dated: November 9, 2018.
Anne C. Hazlett,
Assistant to the Secretary, Rural Development.
Bill Northey,
Under Secretary, Farm Production and Conservation.
[FR Doc. 2018-25523 Filed 11-21-18; 8:45 am]
BILLING CODE P



                                                                                                                                                                                           59269

                                           Rules and Regulations                                                                                         Federal Register
                                                                                                                                                         Vol. 83, No. 226

                                                                                                                                                         Friday, November 23, 2018



                                           This section of the FEDERAL REGISTER                    significant adverse comment, by                       Planning and Review, and therefore has
                                           contains regulatory documents having general            December 24, 2018. Written significant                not been reviewed by the Office of
                                           applicability and legal effect, most of which           adverse comments or, an intent to                     Management and Budget (OMB).
                                           are keyed to and codified in the Code of                submit a significant adverse comment,
                                           Federal Regulations, which is published under                                                                 Executive Order 12988
                                                                                                   must be received by Rural Development
                                           50 titles pursuant to 44 U.S.C. 1510.                                                                            This final rule has been reviewed
                                                                                                   or carry a postmark or equivalent no
                                           The Code of Federal Regulations is sold by              later than December 24, 2018. If                      under Executive Order 12988, Civil
                                           the Superintendent of Documents.                        significant adverse comments are                      Justice Reform. The Agency has
                                                                                                   received, the Agency will publish a                   determined that this rule meets the
                                                                                                   timely Federal Register document                      applicable standards provided in
                                           DEPARTMENT OF AGRICULTURE                               withdrawing this rule. The Agency is                  section 3 of the Executive Order. In
                                                                                                   publishing a proposed rule                            addition, all state and local laws and
                                           Rural Business-Cooperative Service                      contemporaneously with this final rule.               regulations that are in conflict with this
                                                                                                   ADDRESSES: Submit your comments on
                                                                                                                                                         rule will be preempted. No retroactive
                                           Rural Housing Service                                                                                         effect will be given to this rule and, in
                                                                                                   this rule by any of the following
                                                                                                   methods:                                              accordance with section 212(e) of the
                                           Rural Utilities Service                                                                                       Department of Agriculture
                                                                                                      • Federal eRulemaking Portal: Go to
                                                                                                   http://www.regulations.gov and, in the                Reorganization Act of 1994 (7 U.S.C.
                                           Farm Service Agency                                                                                           6912(e)), administrative appeal
                                                                                                   lower ‘‘Search Regulations and Federal
                                                                                                   Actions’’ box, select ‘‘Rural Utilities               procedures must be exhausted before an
                                           7 CFR Part 1970                                                                                               action against the Department or its
                                                                                                   Service’’ from the agency drop-down
                                           RIN 0572–AC44                                           menu, then click on ‘‘Submit.’’ In the                agencies may be initiated.
                                                                                                   Docket ID column, select RUS–18–                      Executive Order 12372
                                           Rural Development Environmental                         AGENCY–0005 to submit or view public
                                           Regulation for Rural Infrastructure                                                                              This final rule is not subject to the
                                                                                                   comments and to view supporting and                   requirements of Executive Order 12372,
                                           Projects                                                related materials available                           ‘‘Intergovernmental Review,’’ as
                                           AGENCY:   Rural Business-Cooperative                    electronically. Information on using                  implemented under USDA’s regulations
                                           Service, Rural Housing Service, Rural                   Regulations.gov, including instructions               at 2 CFR part 415, subpart C, because
                                           Utilities Service, Farm Service Agency,                 for accessing documents, submitting                   this rule provides general guidance on
                                           USDA.                                                   comments, and viewing the docket after                NEPA and related environmental
                                           ACTION: Direct final rule.                              the close of the comment period, is                   reviews of applicants’ proposals.
                                                                                                   available through the site’s ‘‘User Tips’’            Applications for Agency programs will
                                           SUMMARY:   The United States Department                 link.                                                 be reviewed individually under
                                           of Agriculture (USDA) Rural                                • Postal Mail/Commercial Delivery:                 Executive Order 12372 as required by
                                           Development (RD), comprised of the                      Please send your comment addressed to                 program procedures.
                                           Rural Business-Cooperative Service                      Michele Brooks, Rural Development
                                           (RBS), Rural Housing Service (RHS),                     Innovation Center, Regulations Team                   Regulatory Flexibility Act Certification
                                           and Rural Utilities Service (RUS),                      Lead, U.S. Department of Agriculture,                    The Agency has determined that this
                                           hereafter referred to as the Agency, is                 1400 Independence Ave. SW, Stop                       final rule will not have a significant
                                           issuing a direct final rule to update the               1522, Room 1562, Washington, DC                       economic impact on a substantial
                                           Agency’s Environmental Policies and                     20250. Please state that your comment                 number of small entities, as defined in
                                           Procedures regulation (7 CFR 1970) to                   refers to Docket No. RUS–18–AGENCY–                   the Regulatory Flexibility Act (5 U.S.C.
                                           allow the Agency Administrators                         0005.                                                 §§ 601 et seq.), given that the
                                           limited flexibility to obligate federal                    Other Information: Additional                      amendment is only an administrative,
                                           funds for infrastructure projects prior to              information about Rural Development                   procedural change on the government’s
                                           completion of the environmental review                  and its programs is available on the                  part with respect to obligation of funds.
                                           while ensuring full compliance with                     internet at https://www.usda.gov/topics/
                                           National Environmental Policy Act                       rural.                                                National Environmental Policy Act
                                           (NEPA) procedures prior to project                      FOR FURTHER INFORMATION CONTACT:                        In this final rule, the Agency proposes
                                           construction and disbursement of any                    Kellie McGinness Kubena, Director,                    to create limited flexibility for the
                                           RD funding. This change will allow RD                   Engineering and Environmental Staff,                  timing of obligation of funds relative to
                                           to more fully meet the Administration’s                 Rural Utilities Service, USDA Rural                   the completion of environmental
                                           goals to speed the initiation of                        Development, 1400 Independence Ave                    review. The Council on Environmental
                                           infrastructure projects and encourage                   SW, Mail Stop 1571, Room 2242,                        Quality (CEQ) does not direct agencies
                                           planned community economic                              Washington, DC 20250–1571 Phone:                      to prepare a NEPA analysis before
                                           development without additional cost to                  202–720–1649.                                         establishing agency procedures that
amozie on DSK3GDR082PROD with RULES




                                           taxpayers or change to environmental                    SUPPLEMENTARY INFORMATION:                            supplement the CEQ regulations for
                                           review requirements.                                                                                          implementing NEPA. The requirements
                                           DATES: This rule is effective January 7,                Executive Order 12866                                 for establishing agency NEPA
                                           2019, without further action, unless the                  This final rule has been determined to              procedures are set forth at 40 CFR
                                           Agency receives significant adverse                     be not significant for the purposes of                1505.1 and 1507.3. The determination
                                           comments or, an intent to submit a                      Executive Order 12866, Regulatory                     that establishing agency NEPA


                                      VerDate Sep<11>2014   16:13 Nov 21, 2018   Jkt 247001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\23NOR1.SGM   23NOR1


                                           59270            Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Rules and Regulations

                                           procedures does not require NEPA                        enacted pursuant to the Rural                         creation of limited flexibility for the
                                           analysis and documentation has been                     Electrification Act of 1936, 7 U.S.C. 901             timing of obligation of funds relative to
                                           upheld in Heartwood, Inc. v. U.S. Forest                et seq., the Consolidated Farm and Rural              the completion of environmental review
                                           Service, 73 F. Supp. 2d 962, 972–73                     Development Act of 1972, 7 U.S.C. 1921                is only an administrative, procedural
                                           (S.D. III. 1999), aff’d, 230 F.3d 947, 954–             et seq., or any other Congressional act               change on the government’s part and in
                                           55 (7th Cir. 2000).                                     for Rural Development, will be covered                no way abridges or alters that
                                                                                                   by the requirements of this action when               agreement. Therefore, no further
                                           Catalog of Federal Domestic Assistance                                                                        consultation is necessary on this rule
                                                                                                   enacted.
                                             The Catalog of Federal Domestic                                                                             change. The policies contained in this
                                           Assistance (CFDA) numbers assigned to                   Unfunded Mandates Reform Act                          final rule do not have Tribal
                                           the RD Programs affected by this                          This final rule contains no Federal                 implications that preempt Tribal law.
                                           rulemaking are as follows:                              mandates (under the regulatory                        The Agency will continue to work
                                           10.760—Water & Waste Disposal System                    provisions of Title II of the Unfunded                directly with Tribes and Tribal
                                                Systems for Rural Communities.                     Mandates Reform Act of 1995) for state,               applicants to improve access to Agency
                                           10.761—Technical Assistance and                         local, and tribal governments or the                  programs. This includes providing
                                                Training Grants.                                   private sector. Therefore, this rule is not           focused outreach to Tribes regarding
                                           10.762—Solid Waste Management                           subject to the requirements of §§ 202                 implementation of this rule change.
                                                Grants.                                            and 205 of the Unfunded Mandates                      Additionally, the Agency will respond
                                           10.763—Emergency Community Water                        Reform Act of 1995.                                   in a timely and meaningful manner to
                                                Assistance Grants.                                                                                       all Tribal government requests for
                                                                                                   E-Government Act Compliance
                                           10.770—Water & Waste Disposal Loan                                                                            consultation concerning this rule. For
                                                and Grants (Section 306C).                           The Agency is committed to the E-                   further information on the Agency’s
                                           10.766—Community Facilities Loans                       Government Act, which requires                        Tribal consultation efforts, please
                                                and Grants.                                        Government agencies in general to                     contact Rural Development’s Native
                                           10.850—Rural Electrification Loans and                  provide the public the option of                      American Coordinator at (720) 544–
                                                Loan Guarantees.                                   submitting information or transacting                 2911 or AIAN@wdc.usda.gov.
                                           10.851—Rural Telephone Loans and                        business electronically to the maximum
                                                                                                   extent possible.                                      USDA Non-Discrimination Policy
                                                Loan Guarantees.
                                                                                                                                                            In accordance with Federal civil
                                           10.855—Distance Learning &                              Executive Order 13132, Federalism
                                                                                                                                                         rights law and U.S. Department of
                                                Telemedicine Grants.                                  The policies contained in this final               Agriculture (USDA) civil rights
                                           10.857—State Bulk Fuel Revolving Loan                   rule do not have any substantial direct               regulations and policies, the USDA, its
                                                Fund.                                              effect on states, on the relationship                 Agencies, offices, and employees, and
                                           10–858—Assistance to High Energy                        between the national government and                   institutions participating in or
                                                Cost-Rural Communities.                            the states, or on the distribution of                 administering USDA programs are
                                           10.863—Community Connect Grants.                        power and responsibilities among the                  prohibited from discriminating based on
                                           10.865—Biorefinery, Renewable                           various levels of government. Nor does                race, color, national origin, religion, sex,
                                                Chemical, & Biobased Product                       this final rule impose substantial direct             gender identity (including gender
                                                Manufacturing Assistance Program.                  compliance costs on state and local                   expression), sexual orientation,
                                           10.866—Repowering Assistance                            governments. Therefore, consultation                  disability, age, marital status, family/
                                                Program.                                           with the states is not required.                      parental status, income derived from a
                                           10.867—Advanced Biofuel Payment                                                                               public assistance program, political
                                                Program.                                           Executive Order 13175, Consultation
                                                                                                                                                         beliefs, or reprisal or retaliation for prior
                                           10.868—Rural Energy for America                         and Coordination With Indian Tribal
                                                                                                                                                         civil rights activity, in any program or
                                                Program.                                           Governments
                                                                                                                                                         activity conducted or funded by USDA
                                           10.886—Rural Broadband Access Loan                        This rule has been reviewed in                      (not all bases apply to all programs).
                                                and Loan Guarantee Program.                        accordance with the requirements of                   Remedies and complaint filing
                                             All active CFDA programs can be                       Executive Order 13175, ‘‘Consultation                 deadlines vary by program or incident.
                                           found at www.cfda.gov. The Catalog is                   and Coordination with Indian Tribal                      Persons with disabilities who require
                                           available on the internet at http://                    Governments.’’ Executive Order 13175                  alternative means of communication for
                                           www.cfda.gov and the General Services                   requires Federal agencies to consult and              program information (e.g., Braille, large
                                           Administration’s (GSA’s) free CFDA                      coordinate with tribes on a government-               print, audiotape, American Sign
                                           website at http://www.cfda.gov. The                     to-government basis on policies that                  Language, etc.) should contact the
                                           CFDA website also contains a PDF file                   have tribal implications, including                   responsible Agency or USDA’s TARGET
                                           version of the Catalog that, when                       regulations, legislative comments or                  Center at (202) 720–2600 (voice and
                                           printed, has the same layout as the                     proposed legislation, and other policy                TTY) or contact USDA through the
                                           printed document that the Government                    statements or actions that have                       Federal Relay Service at (800) 877–8339.
                                           Publishing Office (GPO) provides. GPO                   substantial direct effects on one or more             Additionally, program information may
                                           prints and sells the CFDA to interested                 Indian tribes, on the relationship                    be made available in languages other
                                           buyers. For information about                           between the Federal Government and                    than English.
                                           purchasing the Catalog of Federal                       Indian tribes or on the distribution of                  To file a program discrimination
                                           Domestic Assistance from GPO, call the                  power and responsibilities between the                complaint, complete the USDA Program
                                           Superintendent of Documents at 202–                     Federal Government and Indian tribes.                 Discrimination Complaint Form, AD–
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                                           512–1800 or toll free at 866–512–1800,                  The latest revision of the Agency’s                   3027, found online at http://
                                           or access GPO’s online bookstore at                     Environmental Policies and Procedures                 www.ascr.usda.gov/complaint_filing_
                                           http://bookstore.gpo.gov.                               in 2016 involved Tribal consultation via              cust.html and at any USDA office or
                                             Rural Development infrastructure                      comment period and webinar as a                       write a letter addressed to USDA and
                                           programs not listed in this section nor                 baseline for future consultation on                   provide in the letter all of the
                                           on the CFDA website, but which are                      individual program actions. The                       information requested in the form. To


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                                                            Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Rules and Regulations                                            59271

                                           request a copy of the complaint form,                   The Task Force Report issued on                       RD Administrators limited flexibility to
                                           call (866) 632–9992. Submit your                        October 21, 2017, included calls to                   obligate funds for infrastructure projects
                                           completed form or letter to USDA by: (1)                action on achieving e-Connectivity for                prior to the completion of the
                                           Mail: U.S. Department of Agriculture,                   Rural America, improving rural quality                environmental review process where the
                                           Office of the Assistant Secretary for                   of life, harnessing technological                     assurance that funds will be available is
                                           Civil Rights, 1400 Independence                         innovation and developing the rural                   important for community health, safety,
                                           Avenue SW, Washington, DC 20250–                        economy.                                              or economic development. As a result,
                                           9410; (2) fax: (202) 690–7442; or (3)                   Purpose of the Regulatory Action                      the environmental review process must
                                           email: program.intake@usda.gov.                                                                               be completed prior to disbursement of
                                                                                                      This rulemaking fulfills the mandate               any RD funds, or any other action that
                                             USDA is an equal opportunity
                                                                                                   of E.O. 13807 as well as the goals of the             would have adverse environmental
                                           provider, employer, and lender.
                                                                                                   President’s Interagency Task Force on                 impact or limit the choice of reasonable
                                           Information Collection and                              Agriculture and Rural Prosperity by                   alternatives. The conditions of
                                           Recordkeeping Requirements                              identifying regulatory changes that                   obligation will be defined in the
                                                                                                   promote economic development and                      documentation of the agreement
                                             In accordance with the Paperwork                      improve the quality of life in rural
                                           Reduction Act, the paperwork burden                                                                           approving the financial assistance
                                                                                                   America. The RD infrastructure projects
                                           associated with this final rule has been                                                                      between the Agency and the applicant.
                                                                                                   impacted by this rule are often critical
                                           approved by the Office of Management                                                                          If, however, the conditions of obligation
                                                                                                   to the health and safety and quality of
                                           and Budget (OMB) under the currently                                                                          are not met, or the agency chooses not
                                                                                                   life in rural communities. In some cases,
                                           approved OMB Control Number 0575–                                                                             to proceed with the project after
                                                                                                   funding decisions made by Rural
                                           0197. The Agency has determined that                                                                          considering the results of the NEPA
                                                                                                   Development are the first step upon
                                           changes contained in this regulatory                                                                          process, the Agency will rescind the
                                                                                                   which a much larger process of
                                           action do not substantially change                                                                            obligated funds. With these conditions,
                                                                                                   community economic development
                                           current data collection that would                                                                            the Agency retains control of the final
                                                                                                   depends. This amendment to existing
                                           require approval under the Paperwork                    regulation will allow the Agency to                   decision to authorize construction and
                                           Reduction Act of 1995 (44 U.S.C.                        obligate funding conditioned upon the                 release funds based on the satisfactory
                                           Chapter 35).                                            full and satisfactory completion of                   completion of the environmental
                                                                                                   environmental review for infrastructure               review. Note, this final rule will not,
                                           Background                                                                                                    and does not, change any of the
                                                                                                   projects. This change will give
                                              The United States Department of                      applicants, and often the distressed                  requirements for environmental
                                           Agriculture (USDA) Rural Development                    communities they represent, some                      reviews. Should an applicant choose to
                                           (RD) programs provide loans, grants and                 comfort to proceed with an economic                   commence a project and thus foreclose
                                           loan guarantees to support investment                   development strategy, including the                   reasonable alternatives, such action
                                           in rural infrastructure to spur rural                   planning process associated with NEPA,                would result in de-obligation of federal
                                           economic development, create jobs,                      without fear that funds may be                        funding, thereby eliminating any federal
                                           improve the quality of life, and address                rescinded before the NEPA process is                  action for NEPA purposes on the part of
                                           the health and safety needs of rural                    completed. With this change in place,                 Rural Development. Until the Agency
                                           residents. Infrastructure investment is                 RD can more fully meet the                            concludes the environmental review
                                           an important national policy priority.                  government’s goals of speeding up the                 and decides to proceed with the project,
                                           As directed by E.O. 13807 in 2017,                      initiation of infrastructure projects,                the obligated funds will be reserved for
                                           USDA as a member of the Federal                         encouraging planned community                         the infrastructure project and less
                                           Permitting Improvement Steering                         economic development, and leveraging                  susceptible to Congressional rescission.
                                           Council has reviewed its NEPA                           investment without additional cost to                 List of Subjects in 7 CFR Part 1970
                                           implementing regulations and policies                   taxpayers or any change in
                                           to identify impediments to efficient and                environmental review requirements.                      Administrative practice and
                                           effective environmental reviews and                     Infrastructure projects covered by this               procedure, Buildings and facilities,
                                           authorizations for infrastructure                       final rule include those, such as                     Environmental impact statements,
                                           projects. This final rule is part of that               broadband, telecommunications,                        Environmental protection, Grant
                                           effort to improve the efficiency and                    electric, energy efficiency, smart grid,              programs, Housing, Loan programs,
                                           effectiveness of RD’s environmental                     water, sewer, transportation, and energy              Natural resources, Utilities.
                                           reviews and authorizations for                          capital investments in physical plant
                                           infrastructure projects in rural America.               and equipment.                                          Accordingly, for reasons set forth in
                                                                                                                                                         the preamble, chapter XVII, of subtitle
                                              On April 25, 2017, the President                     Changes to the Current Regulation                     B, title 7, Code of Federal Regulations is
                                           created the Interagency Task Force on                                                                         amended as follows:
                                           Agriculture and Rural Prosperity (Task                    Nothing in this final rule reduces RD’s
                                           Force) through E.O. 13790 and                           obligation to complete the NEPA
                                                                                                   planning process prior to foreclosing                 PART 1970—ENVIRONMENTAL
                                           appointed the Secretary of Agriculture                                                                        POLICIES AND PROCEDURES
                                           as the Task Force’s Chair. Among the                    reasonable alternatives to the federal
                                           purposes and functions of the Task                      action. The current regulation at 7 CFR
                                                                                                   1970.6 (‘‘Financial assistance’’) states              ■ 1. The authority citation for part 1970
                                           Force was to,                                                                                                 continues to read as follows:
                                                                                                   that the Agency defines the major
                                             ‘‘. . . identify legislative, regulatory, and         decision point for completion of NEPA
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                                                                                                                                                           Authority: 7 U.S.C. 6941 et seq., 42 U.S.C.
                                           policy changes to promote in rural America              as the approval of financial assistance.
                                           agriculture, economic development, job                                                                        4241 et seq.; 40 CFR parts 1500–1508; 5
                                           growth, infrastructure improvements,
                                                                                                   Similarly, 7 CFR 1970.11(b) identifies                U.S.C. 301; 7 U.S.C. 1989; and 42 U.S.C.
                                           technological innovation, energy security,              Agency obligation as the point by which               1480.
                                           and quality of life, including changes that             the environmental review must be
                                           remove barriers to economic prosperity and              concluded. As amended by this final                   ■ 2. Revise § 1970.11(b) to read as
                                           quality of life in rural America.’’                     rule, 7 CFR 1970.11(b) will now provide               follow:


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                                           59272            Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Rules and Regulations

                                           § 1970.11 Timing of the environmental                   DEPARTMENT OF THE TREASURY                            increase in the CPI–W to the dollar
                                           review process.                                                                                               amount that would have resulted, after
                                           *      *    *     *     *                               Office of the Comptroller of the                      rounding, if the decreases and any
                                                                                                   Currency                                              subsequent increases in the CPI–W had
                                              (b) The environmental review process
                                                                                                                                                         been taken into account. Based on the
                                           must be concluded before the obligation                 12 CFR Part 34                                        CPI–W in effect as of June 1, 2018, the
                                           of funds; except for infrastructure                                                                           exemption threshold will increase from
                                           projects where the assurance that funds                 [Docket No. OCC–2018–0031]
                                                                                                                                                         $26,000 to $26,700, effective January 1,
                                           will be available for community health,                 RIN 1557–AE53                                         2019.
                                           safety, or economic development has                                                                           DATES: This final rule is effective
                                           been determined as necessary by the                     FEDERAL RESERVE SYSTEM                                January 1, 2019.
                                           Agency Administrator. At the discretion                                                                       FOR FURTHER INFORMATION CONTACT:
                                           of the Agency Administrator, funds may                  12 CFR Part 226
                                                                                                                                                         OCC: MaryAnn Nash, Counsel, Chief
                                           be obligated contingent upon the                        [Docket No. R–1634]                                   Counsel’s Office, (202) 649–6287; for
                                           conclusion of the environmental review                                                                        persons who are deaf or hard of hearing
                                           process prior to any action that would                  RIN 7100–AF26
                                                                                                                                                         TTY, (202) 649–5597. Board: Lorna M.
                                           have an adverse effect on the                                                                                 Neill, Senior Counsel, Division of
                                                                                                   BUREAU OF CONSUMER FINANCIAL
                                           environment or limit the choices of any                 PROTECTION                                            Consumer and Community Affairs,
                                           reasonable alternatives. Funds so                                                                             Board of Governors of the Federal
                                           obligated shall be rescinded if the                     12 CFR Part 1026                                      Reserve System, at (202) 452–3667; for
                                           Agency cannot conclude the                                                                                    users of Telecommunications Device for
                                           environmental review process before the                 RIN 3170–AA91                                         the Deaf (TDD) only, contact (202) 263–
                                           end of the fiscal year after the year in                                                                      4869. Bureau: Shelley Thompson,
                                                                                                   Appraisals for Higher-Priced Mortgage                 Counsel, Office of Regulations, Bureau
                                           which the funds were obligated, or if the
                                                                                                   Loans Exemption Threshold                             of Consumer Financial Protection, at
                                           Agency determines that it cannot
                                           proceed with approval based on                          AGENCY:  Office of the Comptroller of the             (202) 435–7700.
                                           findings in the environmental review                    Currency, Treasury (OCC), Board of                    SUPPLEMENTARY INFORMATION:
                                           process. For the purposes of this                       Governors of the Federal Reserve                      I. Background
                                           section, infrastructure projects shall                  System (Board); and Bureau of
                                           include projects such as broadband,                     Consumer Financial Protection                            The Dodd-Frank Wall Street Reform
                                                                                                   (Bureau).                                             and Consumer Protection Act of 2010
                                           telecommunications, electric, energy
                                                                                                   ACTION: Final rules, official
                                                                                                                                                         (Dodd-Frank Act) amended the Truth in
                                           efficiency, smart grid, water, sewer,
                                                                                                   interpretations and commentary.                       Lending Act (TILA) to add special
                                           transportation, and energy capital
                                                                                                                                                         appraisal requirements for ‘‘higher-risk
                                           investments in physical plant and                                                                             mortgages.’’ 1 In January 2013, the
                                                                                                   SUMMARY:    The OCC, the Board, and the
                                           equipment, but not investments                                                                                Agencies issued a joint final rule
                                                                                                   Bureau are finalizing amendments to the
                                           authorized in the Housing Act of 1949.                                                                        implementing these requirements and
                                                                                                   official interpretations for their
                                           *      *    *     *     *                               regulations that implement section                    adopted the term ‘‘higher-priced
                                             Dated: November 9, 2018.                              129H of the Truth in Lending Act                      mortgage loan’’ (HPML) instead of
                                                                                                   (TILA). Section 129H of TILA                          ‘‘higher-risk mortgage’’ (the January
                                           Anne C. Hazlett,
                                                                                                   establishes special appraisal                         2013 Final Rule).2 In July 2013, the
                                           Assistant to the Secretary, Rural                                                                             Agencies proposed additional
                                           Development.
                                                                                                   requirements for ‘‘higher-risk
                                                                                                   mortgages,’’ termed ‘‘higher-priced                   exemptions from the January 2013 Final
                                           Bill Northey,                                           mortgage loans’’ or ‘‘HPMLs’’ in the                  Rule (the 2013 Supplemental Proposed
                                           Under Secretary, Farm Production and                    agencies’ regulations. The OCC, the                   Rule).3 In December 2013, the Agencies
                                           Conservation.                                           Board, the Bureau, the Federal Deposit                issued a supplemental final rule with
                                           [FR Doc. 2018–25523 Filed 11–21–18; 8:45 am]            Insurance Corporation (FDIC), the                     additional exemptions from the January
                                           BILLING CODE P                                          National Credit Union Administration                  2013 Final Rule (the December 2013
                                                                                                   (NCUA), and the Federal Housing                       Supplemental Final Rule).4 Among
                                                                                                   Finance Agency (FHFA) (collectively,                  other exemptions, the Agencies adopted
                                                                                                   the Agencies) issued joint final rules                an exemption from the new HPML
                                                                                                   implementing these requirements,                      appraisal rules for transactions of
                                                                                                   effective January 18, 2014. The                       $25,000 or less, to be adjusted annually
                                                                                                   Agencies’ rules exempted, among other                 for inflation.
                                                                                                   loan types, transactions of $25,000 or                   The OCC’s, the Board’s, and the
                                                                                                   less, and required that this loan amount              Bureau’s versions of the January 2013
                                                                                                   be adjusted annually based on any                     Final Rule and December 2013
                                                                                                   annual percentage increase in the                     Supplemental Final Rule and
                                                                                                   Consumer Price Index for Urban Wage                   corresponding official interpretations
                                                                                                   Earners and Clerical Workers (CPI–W).                 are substantively identical. The FDIC,
                                                                                                   If there is no annual percentage increase             NCUA, and FHFA adopted the Bureau’s
                                                                                                   in the CPI–W, the OCC, the Board, and                 version of the regulations under the
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                                                                                                   the Bureau will not adjust this
                                                                                                                                                           1 Public Law 111–203, section 1471, 124 Stat.
                                                                                                   exemption threshold from the prior
                                                                                                                                                         1376, 2185–87 (2010), codified at TILA section
                                                                                                   year. However, in years following a year              129H, 15 U.S.C. 1639h.
                                                                                                   in which the exemption threshold was                    2 78 FR 10368 (Feb. 13, 2013).

                                                                                                   not adjusted, the threshold is calculated               3 78 FR 48548 (Aug. 8, 2013).

                                                                                                   by applying the annual percentage                       4 78 FR 78520 (Dec. 26, 2013).




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Document Created: 2018-11-27 12:59:16
Document Modified: 2018-11-27 12:59:16
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionDirect final rule.
DatesThis rule is effective January 7, 2019, without further action, unless the Agency receives significant adverse comments or, an intent to submit a significant adverse comment, by December 24, 2018. Written significant adverse comments or, an intent to submit a significant adverse comment, must be received by Rural Development or carry a postmark or equivalent no later than December 24, 2018. If significant adverse comments are received, the Agency will publish a timely Federal Register document withdrawing this rule. The Agency is publishing a proposed rule contemporaneously with this final rule.
ContactKellie McGinness Kubena, Director, Engineering and Environmental Staff, Rural Utilities Service, USDA Rural Development, 1400 Independence Ave SW, Mail Stop 1571, Room 2242, Washington, DC 20250-1571 Phone: 202-720-1649.
FR Citation83 FR 59269 
RIN Number0572-AC44
CFR AssociatedAdministrative Practice and Procedure; Buildings and Facilities; Environmental Impact Statements; Environmental Protection; Grant Programs; Housing; Loan Programs; Natural Resources and Utilities

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