§ 1794.81 Adoption as a final EIS.

(a) If REA acted as a cooperating agency, the lead agency's EIS may be adopted as a final EIS without recirculation if REA has reviewed the comments received on the final EIS and concluded that comments and suggestions have been adequately considered.

(b) If REA was not a cooperating agency but determines that another Federal agency's EIS is adequate it will adopt the EIS as its final EIS.

(1) REA and the Borrower shall publish a notice stating REA's adoption of the EIS and independent determination of its adequacy. The notices are governed by §§1794.12 (general) and 1794.54(a) (EIS).

(2) If the adopted EIS is generally available, REA will circulate its written finding that the adopted EIS meets the standards for an adequate EIS. The adopted EIS shall be made available to interested parties upon request.

(3) If the adopted EIS is not generally available, REA will circulated its written finding that the adopted statement is an adequate EIS, along with either the adopted EIS or a summary thereof in accordance with 40 CFR 1502.19. The adopted EIS shall be circulated in the same manner as a final EIS (see § 1794.54(b)).

§ 1794.82 Adoption as a draft EIS.

Where REA determines that an existing Federal EIS requires additional information to meet the standards for an adequate statement for a proposed REA action, REA may adopt all or a portion of the EIS as a part of its draft EIS. The circulation provisions of 1794.54(b) for draft and final EIS's apply. The general notice provisions (§ 1794.12) and notice provisions for EIS's (§ 1794.54(a)) apply.

§ 1794.83 Adoption of an EA.

REA may adopt a Federal EIS or EA or a portion thereof as its EA. REA shall make the EA available and assure that notice is provided in the same manner as if REA had prepared the EA.

§ 1794.84 Adoption of environmental materials.

REA may adopt environmental documents or portions thereof prepared by Federal, state or local agencies or other parties independently of the requirements of NEPA. REA may adopt such materials into its environmental documents. REA will circulate the adopted document as a part of its environmental assessment or draft and final EIS in the same manner as if prepared by REA.

§ 1794.85 Timing of agency action.

Where REA has adopted another agency's environmental documents, the timing of the REA action shall be subject to the same requirements as if REA had prepared the required EA or EIS.

Subpart J-Supplemental EIS

§ 1794.90 Circulation and notices.

(a) A supplement to a draft or final EIS shall be prepared, circulated and given notice by REA and the Borrower in the same manner (exclusive of scoping) as a draft and then final EIS (see § 1794.54).

(b) Normally REA and the Borrower shall have published notices of intent to prepare a supplement to a final EIS in those cases where a Record of Decision has already been issued.

(c) REA, at its discretion, may issue an information supplement to a final EIS where REA determines that the purposes of NEPA are furthered by doing so even though such supplement is not required by 40 CFR 1502.9(c)(1). REA and the Borrower shall publish a notice of availability. The notice requirements shall be the same as for a final EIS indicated in § 1794.54(a). The information supplement shall be circulated in the same manner as a final EIS (see § 1794.54(b)). REA shall take no final action on any proposed modification discussed in the information

supplement until thirty (30) days after the REA notice of availability is published or thirty (30) days after the Borrower's notice is published, whichever occurs later.

§ 1794.91 Timing of agency action.

Timing of REA's action shall be subject to the same requirements as apply to a typical EIS.

APPENDIX A-PROCEDURE FOR PROPOSALS WHICH NORMALLY REQUIRE AN EIS

of potentially acceptable sites for a generating (or transmission or new mining) facility. In order to facilitate long-range planning and reduce delays, a Borrower may undertake preliminary evaluations of alternative means of providing power and begin the study of a range of potentially acceptable sites for a generation (or transmission or new mining) facility before demonstrating a need for the proposal. However, the obligation to show a need for the proposal will still remain before REA financing assistance can be obtained.

Equal spacing between points on the diagram is not meant to suggest equal time intervals. Where two letters are the same (except for subscripts), generally the two indicated events should occur within the same time frame. For BD and B1D1, this is only true where the Borrower initiates site selection at a time when there is a specific need to be filled. For major transmission projects, events occurring with reference to the Macro-Corridor Study are analogous to the generation and mining Siting Study procedures.

The flow diagram is intended to indicate the normal sequence of events although some variance may be acceptable in individual cases if good cause is demonstrated. However, in all instances REA shall assure that the requirements of the NEPA and CEQ regulations are fulfilled.

Discrete Events

A: The Borrower presents to REA the underlying needs which form the basis of its proposal. REA undertakes for electric generation proposals, when necessary, the preparation or update of the power requirements study (PRS) utilizing REA procedures. For electric generation and transmission and mining proposals, the need for the proposal shall be presented in the draft and final EIS's (or EA, as applicable).

B and B1: The Borrower consults with REA on the procedures and general parameters for the Siting Study and on potential alternative ways to meet the need, including guidance on preparing the Alternative Evaluation. Consultation may be initiated even if a specific need has not been identified.

BC: Work is performed on the Siting Study by the Borrower and/or consultant. This includes "macroanalysis" in which general criteria, literature search and consultation are used to identify a reasonable range of potentially acceptable sites.

Borrower/consultant contact Soil Conservation Service (SCS), U.S. Environmental Protection Agency (EPA), U.S. Fish and Wildlife Service (FWS), U.S. Army Corps of Engineers (COE), Federal land use agencies and state agencies for early guidance and input.

As soon as practicable during this period, REA publishes its "Notice of Intent" in the

FEDERAL REGISTER and the Borrower publishes similar information in local newspapers of general circulation. (See § 1794.51(b)).

B.C1: Borrower does research and consultation, contacts other utilities, etc., to determine whether there are reasonable alternatives to a new generating (or transmission or mining facility). The Alternative Evaluation should include discussion, as appropriate, of joint projects, alternate fuels, alternate energy sources, conservation, etc. Alternatives eliminated from detailed study should be identified and reasons given for the elimination. The Borrower should also indicate which alternatives are reasonably available to it if its recommended alternative is not approved.

C and C1: Borrower submits draft of Siting Study and Alternative Evaluation to REA for review. REA reviews each draft for major flaws. If such flaws are not present, REA submits both the draft Siting Study and Alternative Evaluation to potentially involved Federal and state agencies (including, but not limited to, all agencies invited to the field investigation) for review and comment.

D and D1: REA invites other Federal and state agencies to make a field investigation of potentially acceptable siting areas discussed in the draft Siting Study and critique the study methodology, and point out potential problems with these alternative siting areas. The Borrower at this time presents site and nonsite specific alternatives included in the Siting Study and Alternative Evaluation to these agencies for their comments. Participating agencies may critique alternative means of meeting the need and point out potential problems with alternative siting areas. The agencies set up a strategy for conducting the scoping process and tentatively identify the lead and cooperating ager.cies for the EIS.

DE: Federal agencies are given the opportunity to comment on the potentially acceptable alternatives to point out fatal flaws. During this stage the Borrower may secure land, water or other critical factors for potentially acceptable sites by option or other means (subject to the limitations in § 1794.21). If REA's notice of intent and the Borrower's notice did not give the date and time of the scoping meeting, scoping meeting notices are published now.

E and E: Scoping meeting(s) is held to receive input from the public, interested parties, and Federal, state and local officials and agencies. Among the topics open to discussion are reasonable alternatives to meet the need, potentially acceptable sites, participation projects or conservation, significant issues to be addressed in the EIS, and the need for the project.

EF: Borrower submits revised Siting Study (or addenda if appropriate) to REA for review after revising it to reflect input from scoping meeting(s). REA consults with cooperating agencies on the scope of the EIS and gives the Borrower guidance on scope of the Environmental Analysis. Borrower prepares the draft Environmental Analysis which includes a fatal flaw study of potentially acceptable sites and a “microanalysis" in which detailed field work is conducted on the Borrower's recommended site(s). The Borrower continues consultation with REA and other interested Federal, state, and local agencies, and the public, and reflects their comments in the Environmental Analysis.

DIF: Borrower updates and expands, as necessary, the Alternative Evaluation on the basis of comments received from Federal, State and local officials and agencies, input from participants at the scoping meeting(s), the general public and new developments (e.g., negotiations with other electric power utilities), REA provides guidance to the Borrower during this period based on cooperating agency and public input.

F and F: The Borrower submits draft Environmental Anaylysis to REA for review and comment. If the draft Environmental Analysis has no readily apparent critical flaws, REA distributes copies of the Environmental Analysis to cooperating agencies for review. Borrower submits Alternative Evaluation, which has been updated after the scoping meeting, and also includes new alternatives, if any, which have developed. REA submits updated Alternative Evaluation to requesting cooperating agencies. The Environmental Analysis may incorporate

the Alternative Evaluation leading to a single review document.

FG and FG1: REA and cooperating agencies independently evaluate, for accuracy, scope and content, the information submitted to them. REA collates reponses and reconciles them with the Borrower. REA may begin writing the draft E'S at this point. Hand H1: REA Borrower submits, as appropriate, a final revised Environmental Analysis and Alternative Evaluation to REA.

HJ and H1J: REA independently evaluates the revised documents and verifies the information therein before use in the EIS. During this time, REA prepares the draft EIS, utilizing the borrower-supplied data, intergency expertise, and other information.

J: REA issues draft EIS for public review and comment publishing notice of availability in the FEDERAL REGISTER.

K: Public comment period ends on draft EIS. This date may be extended in certain instances.

KL: REA (and cooperating agencies, as appropriate) review comments received on draft EIS and responds, by modifying alternatives, developing alternatives not previously given sufficient consideration, supplementing, improving or modifying the analyses, etc. A fina! EIS or supplemental draft EIS is prepared, as appropriate, with cooperating agencies' assistance.

M: Record of decision is issued. REA will take no final action on any loan guarantee, etc., sooner than 30 days after issuance of the final Federal EIS.

MN: Implementation of mitigation measures is checked, as necessary, by REA and other Federal, state, and local agencies during construction and operation of the project.