89 FR 242 pgs. 102141-102144 - Adoption of Categorical Exclusions from the Department of Energy Under the National Environmental Policy Act
Type: NOTICEVolume: 89Number: 242Pages: 102141 - 102144
Pages: 102141, 102142, 102143, 102144FR document: [FR Doc. 2024-29608 Filed 12-16-24; 8:45 am]
Agency: Export-Import Bank
Official PDF Version: PDF Version
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EXPORT-IMPORT BANK
Adoption of Categorical Exclusions from the Department of Energy Under the National Environmental Policy Act
AGENCY:
Export-Import Bank of the United States.
ACTION:
Notice of adoption of multiple Categorical Exclusions from the Department of Energy.
SUMMARY:
The Export-Import Bank of the United States (EXIM) is adopting multiple categorical exclusions (CEs) from the agencies as listed: Department of Energy Ces A9, B1.15, B1.23, B2.1, B2.2, and B3.1. This notice identifies the categories of proposed actions and describes the consultation between the agencies.
DATES:
The Ces identified below are available for EXIM to use for its proposed actions effective December 17, 2024.
FOR FURTHER INFORMATION CONTACT:
Scott Condren (VP Policy Analysis), Scott.Condren@exim.gov, (202) 565-3777; Tiffin Caverly (VP Engineering & Environment), Tiffin.Caverly@exim.gov.
SUPPLEMENTARY INFORMATION:
I. Background
NEPA and Ces
The National Environmental Policy Act, 42 U.S.C. 4321-4347, (NEPA) requires Federal agencies to interpret and administer Federal policies, regulations, and laws in accordance with NEPA's policies and to consider environmental values in their decision making.
Federal agencies are required to provide a detailed statement on proposals for major Federal actions significantly affecting the quality of the human environment. 1 NEPA also created the Council of Environmental Quality (CEQ) as the body responsible for implementing NEPA.
Footnotes:
1 ?40 CFR 1500.1.
Categorical exclusions (Ces) can be used when there is a determination the proposed type of action would not have a significant effect on the human environment; this option eliminates the need for an environmental assessment (EA) or more detailed environmental impact statement (EIS). 2 CEQ considers Ces "an important mechanism to promote efficiency in the NEPA process" and recognizes an agency's ability to "identify and substantiate categories of actions that normally do not have a significant effect on the human environment". 3
Footnotes:
2 ?40 CFR 1501.4.
3 ?88 FR 49924.
[top] Section 109 of NEPA, enacted as part of the Fiscal Responsibility Act of 2023, allows a Federal agency to "adopt" or use another agency's Ces for a category of proposed agency actions. 4 To use another agency's Ces under section 109, an agency must identify the relevant Ces listed in another agency's ("establishing agency") NEPA procedures that cover its category of proposed actions or related actions; consult with the establishing agency to ensure that the
Footnotes:
4 ?42 U.S.C. 4336c.
Program Background
As the official export credit agency of the United States, "the mission of the Export-Import Bank of the United States is to support the creation of American jobs by facilitating the export of U.S. goods and services." The Export-Import Bank of the United States (EXIM) steps in when the private sector does not provide financing for American businesses. The Bank's actions have historically helped support these firms in competing with foreign businesses overseas. The Make More in America (MMIA) initiative applies EXIM's authorities for medium and long-term (MLT) loans, loan guarantees, and insurance to export-oriented domestic projects. In doing so, MMIA allows EXIM to support American business during the whole export lifecycle. The purpose of such loans remains unchanged: to support U.S. employment.
As EXIM usually lends to projects outside the United States, NEPA has not often been applicable as there is no impact to the human environment in the United States. In the new MMIA initiative which focuses on domestic lending, adopting Ces from another agency will speed up the processing time of deals and conserve staff resources with no need for an EA or EIS. Faster processing times in this initiative will greatly facilitate EXIM's support of American businesses and workers.
II. Identification of the Categorical Exclusions
Department of Energy Ces
A9 Information Gathering, Analysis, and Dissemination
Information gathering (including, but not limited to, literature surveys, inventories, site visits, and audits), data analysis (including, but not limited to, computer modeling), document preparation (including, but not limited to, conceptual design, feasibility studies, and analytical energy supply and demand studies), and information dissemination (including, but not limited to, document publication and distribution, and classroom training and informational programs), but not including site characterization or environmental monitoring. (See also B3.1 of appendix B to this subpart.)
B1.15 Supporting Buildings
Siting, construction or modification, and operation of support buildings and support structures (including, but not limited to, trailers and prefabricated and modular buildings) within or contiguous to an already developed area (where active utilities and currently used roads are readily accessible). Covered support buildings and structures include, but are not limited to, those for office purposes; parking; cafeteria services; education and training; visitor reception; computer and data processing services; health services or recreation activities; routine maintenance activities; storage of supplies and equipment for administrative services and routine maintenance activities; security (such as security posts); fire protection; small-scale fabrication (such as machine shop activities), assembly, and testing of non-nuclear equipment or components; and similar support purposes, but exclude facilities for nuclear weapons activities and waste storage activities, such as activities covered in B1.10, B1.29, B1.35, B2.6, B6.2, B6.4, B6.5, B6.6, and B6.10 of this appendix.
B1.23 Demolition and Disposal of Buildings
Demolition and subsequent disposal of buildings, equipment, and support structures (including, but not limited to, smoke stacks and parking lot surfaces), provided that there would be no potential for release of substances at a level, or in a form, that could pose a threat to public health or the environment.
B2.1 Workplace Enhancements
Modifications within or contiguous to an existing structure, in a previously disturbed or developed area, to enhance workplace habitability (including, but not limited to, installation or improvements to lighting, radiation shielding, or heating/ventilating/air conditioning and its instrumentation, and noise reduction).
B2.2 Building and Equipment Instrumentation
Installation of, or improvements to, building and equipment instrumentation (including, but not limited to, remote control panels, remote monitoring capability, alarm and surveillance systems, control systems to provide automatic shutdown, fire detection and protection systems, water consumption monitors and flow control systems, announcement and emergency warning systems, criticality and radiation monitors and alarms, and safeguards and security equipment).
B3.1 Site Characterization and Environmental Monitoring
Site characterization and environmental monitoring (including, but not limited to, siting, construction, modification, operation, and dismantlement and removal or otherwise proper closure (such as of a well) of characterization and monitoring devices, and siting, construction, and associated operation of a small-scale laboratory building or renovation of a room in an existing building for sample analysis). Such activities would be designed in conformance with applicable requirements and use best management practices to limit the potential effects of any resultant ground disturbance. Covered activities include, but are not limited to, site characterization and environmental monitoring under CERCLA and RCRA. (This class of actions excludes activities in aquatic environments. See B3.16 of this appendix for such activities.) Specific activities include, but are not limited to:
(a) Geological, geophysical (such as gravity, magnetic, electrical, seismic, radar, and temperature gradient), geochemical, and engineering surveys and mapping, and the establishment of survey marks. Seismic techniques would not include large-scale reflection or refraction testing;
(b) Installation and operation of field instruments (such as stream-gauging stations or flow-measuring devices, telemetry systems, geochemical monitoring tools, and geophysical exploration tools);
(c) Drilling of wells for sampling or monitoring of groundwater or the vadose (unsaturated) zone, well logging, and installation of water-level recording devices in wells;
(d) Aquifer and underground reservoir response testing;
(e) Installation and operation of ambient air monitoring equipment;
(f) Sampling and characterization of water, soil, rock, or contaminants (such as drilling using truck- or mobile-scale equipment, and modification, use, and plugging of boreholes); 5
(g) Sampling and characterization of water effluents, air emissions, or solid waste streams;
(h) Installation and operation of meteorological towers and associated activities (such as assessment of potential wind energy resources);
(i) Sampling of flora or fauna; and
(j) Archeological, historic, and cultural resource identification in compliance with 36 CFR part 800 and 43 CFR part 7.
[top] The Department of Energy Ces also includes additional conditions referred
(1) Threaten a violation of applicable statutory, regulatory, or permit requirements for environment, safety, and health, or similar requirements of the Department of Energy or Executive Orders;
(2) Require siting and construction or major expansion of waste storage, disposal, recovery, or treatment facilities (including incinerators), but the proposal may include categorically excluded waste storage, disposal, recovery, or treatment actions or facilities;
(3) Disturb hazardous substances, pollutants, contaminants, or Comprehensive Environmental Response, Compensation and Liability Act-excluded petroleum and natural gas products that preexist in the environment such that there would be uncontrolled or unpermitted releases;
(4) Have the potential to cause significant impacts on environmentally sensitive resources. An environmentally sensitive resource is typically a resource that has been identified as needing protection through Executive Order, statute, or regulation by Federal, State, or local government, or a Federally recognized Indian Tribe. An action may be categorically excluded if, although sensitive resources are present, the action would not have the potential to cause significant impacts on those resources (such as construction of a building with its foundation well above a sole-source aquifer or upland surface soil removal on a site that has wetlands). Environmentally sensitive resources include, but are not limited to:
(i) Property (such as sites, buildings, structures, and objects) of historic, archeological, or architectural significance designated by a Federal, State, or local government, federally recognized Indian Tribe, or Native Hawaiian organization; or property determined to be eligible for listing on the National Register of Historic Places;
(ii) Federally listed threatened or endangered species or their habitat (including critical habitat) or federally proposed or candidate species or their habitat (Endangered Species Act); state-listed or state-proposed endangered or threatened species or their habitat; Federally protected marine mammals and Essential Fish Habitat (Marine Mammal Protection Act; Magnuson-Stevens Fishery Conservation and Management Act); and otherwise Federally protected species (such as the Bald and Golden Eagle Protection Act or the Migratory Bird Treaty Act);
(iii) Floodplains and wetlands (as defined in 10 CFR 1022.4, "Compliance with Floodplain and Wetland Environmental Review Requirements: Definitions," or its successor);
(iv) Areas having a special designation such as Federally and State-designated wilderness areas, national parks, national monuments, national natural landmarks, wild and scenic rivers, State and Federal wildlife refuges, scenic areas (such as National Scenic and Historic Trails or National Scenic Areas), and marine sanctuaries;
(v) Prime or unique farmland, or other farmland of statewide or local importance, as defined at 7 CFR 658.2(a), "Farmland Protection Policy Act: Definitions," or its successor;
(vi) Special sources of water (such as sole-source aquifers, wellhead protection areas, and other water sources that are vital in a region); and
(vii) Tundra, coral reefs, or rain forests; or
(5) Involve genetically engineered organisms, synthetic biology, governmentally designated noxious weeds, or invasive species, unless the proposed activity would be contained or confined in a manner designed and operated to prevent unauthorized release into the environment and conducted in accordance with applicable requirements, such as those of the Department of Agriculture, the Environmental Protection Agency, and the National Institutes of Health.
EXIM intends to apply these categorical exclusions to loans, loan guarantees, and insurance transactions. The scope of projects would be akin to projects from the Department of Energy's Loans Program Office to which DOE has applied these categorical exclusions. These include limited construction, full disposal of buildings, desk work for feasibility studies, soil testing, etc. In principle, such transactions would be similar to those EXIM's export finance transactions deemed a category C under its environmental and social procedures and guidelines. 5
Footnotes:
5 ?EXIM's Environmental and Social Due Diligence Procedures and Guidelines state that "applications greater than $10 Million will be classified as Category C if they are not related to a physical project or if they relate to projects which do not require further environmental review because they are likely to have minimal or no adverse environmental or social risks or impacts. This category includes transactions related to new, expansion or existing projects of the type that have little or no potential to cause environmental effects and do not impact sensitive locations." Procedures and Guidelines | EXIM.GOV .
III. Consideration of Extraordinary Circumstances (if Applicable)
In assessing whether a categorical exclusion applies, EXIM would review whether there were extraordinary circumstances that would indicate a categorical exclusion is not appropriate due to the potential for a significant environmental effect. EXIM would review that proposed actions do not breach the integral elements of classes of action in DOE's regulations (10 CFR 1021, subpart D, appendix B (1)-(5)). When applying these Ces, EXIM will consider whether the proposed action has the potential to result in significant effects as described in DOE's definition of extraordinary circumstances. DOE defines extraordinary circumstances as unique situations presented by specific proposals, including, but not limited to, scientific controversy about the environmental effects of the proposal; uncertain effects or effects involving unique or unknown risks; and unresolved conflicts concerning alternative uses of available resources. 10 CFR 1021.410(b)(2).
EXIM's engineering and environment division will have responsibility for determining if a categorical exclusion applies. These determinations will be posted at https://www.exim.gov/policies/exim-bank-and-environment/make-more-america-initiative-approved-transactions.
Consultation and Determination of Appropriateness
Consultations
1. Department of Energy Consultation
In October 2024, EXIM conducted consultation with the Department of Energy's Loans Program Office on adoption of several CE categories. Through those consultation and coordination efforts, DOE and EXIM mutually agreed that EXIM's adoption of CEs A9 (Information gathering, analysis, and dissemination), B1.15 (Supporting Buildings), B1.23, (Demolition and disposal of buildings), B2.1 (Workplace enhancements), B2.2 (Building and equipment instrumentation) and B3.1(site characterization and environmental monitoring) is appropriate. This notice documents EXIM's adoption of Department of Energy CEs for such actions.
[top] At the conclusion of that process, DOE determined that EXIM's proposed use of the CE as described in this notice would be appropriate because the categories of actions for which EXIM plans to use the CE are consistent with the adopted CEs.
Notice to the Public and Documentation of the Adoption
This notice serves to identify to the public and document EXIM's adoption of several CEs from both the Department of Energy. The notice identifies the types of actions to which EXIM will apply the CE, as well as the considerations that EXIM will use in determining whether an action is within the scope of the CE.
Scott Condren,
Vice President, Policy Analysis.
[FR Doc. 2024-29608 Filed 12-16-24; 8:45 am]
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