[Federal Register Volume 60, Number 48 (Monday, March 13, 1995)]
[Rules and Regulations]
[Pages 13518-13523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6054]




[[Page 13517]]

_______________________________________________________________________

Part II





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



24 CFR Part 58



Environmental Review Procedures for Entities Assuming HUD Environmental 
Responsibilities; Interim Rule

  Federal Register / Vol. 60, No. 48 / Monday, March 13, 1995 / Rules 
and Regulations   
[[Page 13518]] 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Part 58

[Docket No. R-95-1770; FR-3811-I-01]
RIN 2501-AB88


Environmental Review Procedures for Entities Assuming HUD 
Environmental Responsibilities

AGENCY: Office of the Secretary, HUD.

ACTION: Interim rule.

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

SUMMARY: This interim rule implements provisions enacted in the 
Multifamily Housing Property Disposition Reform Act of 1994 that 
provide for the assumption of environmental review responsibilities by 
States and units of general local government, including those that are 
not recipients, under certain public and Indian housing programs, 
special projects, and the FHA multifamily housing finance agency risk 
sharing pilot program.

DATES: Effective Date: This rule is effective on April 12, 1995, except 
for Secs. 58.1(c)(6)(i), and 58.2(a)(4)(v)(A) which will become 
effective October 14, 1996, unless this interim rule is published as a 
final rule or the Department publishes a subsequent document in the 
Federal Register.
    Sunset Provision: Sections 58.1(c)(6) through (8), 58.2(a)(4)(v) 
through (4)(vii), and 58.11(b) through (d) shall expire and shall not 
be in effect after October 14, 1996, unless this interim rule is 
published as a final rule or the Department publishes a document in the 
Federal Register to extend their effectiveness. If the interim rules 
cited in the sunset provision expire, HUD will publish a document in 
the Federal Register removing them.
    Comments Due Date: May 12, 1995.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Rules Docket Clerk, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410-0500. Communications should refer to the 
above docket number and title. Facsimile (FAX) comments are not 
acceptable. A copy of each communication submitted will be available 
for public inspection and copying between 7:30 a.m. and 5:30 p.m. 
weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: Richard H. Broun, Director, Office of 
Environment and Energy, Room 7240, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC 20410, telephone 
(202) 708-2894. For telephone communication, contact Fred Regetz, 
Environmental Review Division at (202) 708-4346. Hearing or speech-
impaired individuals may call HUD's TDD number (202) 708-4594. This is 
not a toll-free number.

SUPPLEMENTARY INFORMATION:

Background

    The Multifamily Housing Property Disposition Reform Act of 1994 
(Pub. L. 103-233, enacted April 11, 1994; hereafter referred to as 
``MHPDRA'') provides authority for States and units of general local 
government (including Indian tribes or Alaska native villages) to carry 
out the Federal environmental review responsibilities under the 
National Environmental Policy Act of 1969, 42 U.S.C. 4321-4347 (NEPA), 
and such other provisions of law as the Secretary shall specify, for 
recipients of HUD assistance under four HUD programs. These programs 
are: (1) Public and Indian housing programs and the Section 8 program 
under title I of the United States Housing Act of 1937 (42 U.S.C. 1437 
et seq.) (USHA of 1937) (see MHPDRA section 305(b)); (2) special 
projects appropriated under an appropriations act for HUD, such as 
special projects under the head ``Annual Contributions for Assisted 
Housing'' in title II of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1993 (see MHPDRA section 305(c)); and (3) the FHA Multifamily 
Housing Finance Agency Risk Sharing Pilot Program under section 542(c) 
of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 
note) (see MHPDRA section 307(b)(4)). This interim rule amends the 
existing regulations at 24 CFR part 58 to implement these provisions of 
the MHPDRA.
    Congress previously authorized recipients under certain HUD 
programs to assume Federal environmental responsibilities, beginning 
with recipients under the Community Development Block Grant program 
under title I of the Housing and Community Development Act of 1974. 
However, the MHPDRA amendments mark the first time that States and 
units of general local governments (including Indian tribes and Alaska 
native villages) that are not recipients may assume these 
responsibilities. (Under the public and Indian housing programs, the 
Section 8 program, and the Risk Sharing Pilot Program covered by the 
MHPDRA provisions, the recipients include public housing agencies, 
Indian housing authorities and qualified housing finance agencies, 
rather than States, units of general local government, Indian tribes or 
Alaska native villages. Under the Section 8 program for moderate 
rehabilitation of single room occupancy (SRO) dwellings for homeless 
individuals, the recipient may also be a nonprofit organization. In 
that case, a PHA or IHA may administer the Section 8 assistance. In 
these circumstances, the PHA or IHA will be considered the recipient 
for the purpose of this rule. In the case of special projects, 
recipients may be either States, units of general local governments, 
Indian tribes or Alaska native villages, or non-profit organizations.)
    On August 26, 1994 (59 FR 44258), HUD published an interim rule 
implementing other MHPDRA environmental provisions pertaining to the 
HOME Investment Partnerships Program and the Lead-based Paint Hazard 
Reduction and Abatement Program. The amendments to 24 CFR part 58 in 
today's interim rule contain changes to provide that the part 58 
procedures for the assumption and carrying out of responsibilities for 
environmental review, decisionmaking and action apply to public and 
Indian housing programs, the Section 8 Program other than Section 8 
assistance under 24 CFR part 886 to projects with HUD-insured or HUD-
held mortgages and in connection with the disposition of HUD-owned 
projects, special projects, and the FHA Multifamily Housing Finance 
Agency Risk Sharing Pilot Program covered by the MHPDRA amendments. 
Unlike the MHPDRA provisions regarding the HOME Investment Partnership 
Program, the MHPDRA provisions affecting these programs were not under 
a statutory deadline for issuance of effective rules.
    It should be noted that the MHPDRA provisions do not permit 
assumption of environmental review responsibilities under all public 
and Indian housing programs. Section 26 of the United States Housing 
Act of 1937 (USHA), as added by section 305(b) of MHPDRA, authorizes 
the Secretary of HUD to ``provide for the release of funds for projects 
or activities under this title (i.e., title I of the USHA), as 
specified by the Secretary upon the request of a public housing agency 
(including an Indian housing authority) under this section, if the 
State or unit of general local government, as specified by the 
Secretary in accordance with regulations, assumes all of the 
responsibilities for environmental review, decisionmaking, and action * 
* *.'' [[Page 13519]] 
    Thus, the MHPDRA and this rule do not provide for the assumption of 
environmental review responsibilities under activities carried out 
under titles other than title I of the USHA, such as HOPE activities 
under title III of the USHA. Moreover, since a public housing agency or 
Indian housing authority must request the release of funds under the 
assumption procedure authorized by MHPDRA, the procedure does not apply 
to any Section 8 activity in which HUD works directly with a private 
owner, with no public housing agency or Indian housing authority 
involvement.
    It should be noted, however, that HUD has determined that 
activities under the Indian Mutual Help program provided for in Section 
202 of the USHA do qualify as activities under title I and will be 
subject to the environmental review procedures authorized by Section 
26. The Department notes that Section 202(b)(1) of the USHA provides 
that the mechanism for providing financial assistance for the 
development, acquisition, operation and improvement of Mutual Help 
housing is that the Secretary ``may enter into contracts with Indian 
housing authorities under title I'' (emphasis added). Moreover, Section 
201(b)(1) of the USHA provides that (except as otherwise provided in 
title II) the provisions of title I shall apply to low-income housing 
developed or operated pursuant to a contract between the Secretary and 
an IHA. Accordingly, environmental review for Indian Mutual Help 
activities will be conducted under the provisions of 24 CFR part 58.
    The amendments to 24 CFR part 58 in this interim rule change the 
definition of recipient to include, for the first time, recipients 
other than States, units of general local government, Indian tribes and 
Alaska native villages. These recipients include public housing 
agencies or Indian housing authorities, direct grantees of HUD for 
special projects, and qualified housing finance agencies. This interim 
rule also provides that a ``responsible entity'' will assume the 
responsibility for carrying out environmental review requirements.
    Under the programs covered by the MHPDRA amendments, the 
responsible entity may be a State, unit of general local government, 
Indian tribe or Alaska native village that is not a recipient. In 
Sec. 58.2(a)(6), the regulation designates the appropriate governmental 
unit that will act as the responsible entity under the programs covered 
by the MHPDRA provisions. Under these programs, recipients other than 
States, units of general local government, Indian tribes or Alaska 
native villages are required to request a responsible entity (i.e., the 
unit of general local government, the State or the Indian tribe or 
Alaska native village) with jurisdiction, to provide the requisite 
environmental review, decisionmaking and action for assisted projects.
    In such cases, the interim rule provides that the State, unit of 
general local government, or Indian tribe or Alaska native village that 
is the responsible entity must send the Request for Release of Funds 
(RROF) and Certification to the recipient. The recipient in turn 
submits the certification of the responsible entity to HUD with a cover 
letter requesting the release of funds and indicating that the 
recipient agrees to abide by the special conditions, procedures and 
requirements of the environmental review and to advise the responsible 
entity of any proposed changes in the scope of the project or any 
change in environmental conditions. For documentation purposes, the 
interim rule mandates that if the responsible entity determines that 
some of the activities are exempt under applicable provisions of Part 
58, the responsible entity shall advise the recipient that the 
recipient may incur costs on these activities as soon as programmatic 
authorization is received from HUD. This finding shall be documented in 
the environmental review record maintained by the responsible entity 
and in the recipient's project files.
    Finally, the Department is still working out implementation issues 
and logistics for the public housing programs. Therefore, while this 
rule covers the public housing programs, this rule also delays 
implementation of Part 58 for the public housing programs until the 
Department resolves all implementation concerns. In the future, the 
Department will publish a notice in the Federal Register which makes 
this rule effective for the public housing programs.

II. Findings and Certifications

Sunset of Interim Rule

    In accordance with the Department's policy on interim rules, the 
amendments made to part 58 by this interim rule shall expire on the 
eighteen-month anniversary date of the effective date of this interim 
rule unless extended by notice published in the Federal Register, or 
adopted by a final rule published on or before the eighteen-month 
anniversary date of the effective date of this interim rule.

Justification for Interim Rulemaking

    In general, the Department publishes a rule for public comment 
before issuing a rule for effect, in accordance with its own 
regulations on rulemaking, 24 CFR part 10. However, part 10 does 
provide for exceptions from that general rule where the agency finds 
good cause to omit advance notice and public participation. The good 
cause requirement is satisfied when prior public procedure is 
``impracticable, unnecessary, or contrary to the public interest.'' (24 
CFR 10.1)
    The Department finds that good cause exists to publish this rule 
for effect without first soliciting public comment, in that prior 
public comment is contrary to public interest because this rule will 
expedite the receipt of necessary funding by allowing States and units 
of local government to conduct the Federal environmental review.

Environmental Review

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with the HUD regulation at 24 CFR part 50, 
which implements section 102(2)(C) of the National Environmental Policy 
Act of 1969. The Finding of No Significant Impact is available for 
public inspection between 7:30 a.m. and 5:30 p.m. weekdays in the 
Office of the Rules Docket Clerk.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)) has reviewed and approved this rule, and in so doing 
certifies that this rule will not have a significant economic impact on 
a substantial number of small entities. This rule will allow states and 
units of general local government (including Indian Tribes and Alaska 
native villages) to carry out Federal environmental review 
responsibilities for some recipients of HUD assistance. However, 
because in most cases the environmental review will be paid for with 
HUD assistance funds, this rule is not expected to have a significant 
economic impact on a substantial number of small entities.

Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive order 12612, Federalism, has determined that the policies 
contained in this rule will not have substantial direct effects on 
states or their political subdivisions, or the relationship between the 
federal government and the states, or on the distribution of power and 
responsibilities among the various levels of government. As a result, 
the [[Page 13520]] rule is not subject to review under the order. 
Specifically, this rule will allow states and units of general local 
government (including Indian Tribes and Alaska native villages) to 
carry out Federal environmental review responsibilities for some 
recipients of HUD assistance. However, because in most instances the 
Federal environmental review will be funded by HUD, this rule is not 
expected to have a substantial effect on states or their political 
subdivisions, or the relationship between the federal government and 
the states, or on the distribution of power and responsibilities among 
the various levels of government.

Executive Order 12606, the Family

    The General Counsel, as the Designated Official under Executive 
Order, The Family, has determined that this rule does not have 
potential for significant impact on family formation, maintenance, and 
general well-being, and, thus, is not subject to review under the 
order. No significant change in existing HUD policies or programs will 
result from promulgation of this rule, as those policies and programs 
relate to family concerns.

Regulatory Agenda

    This interim rule was not listed in the Department's Semiannual 
Agenda of Regulations published on November 14, 1994 (59 FR 57632) 
under Executive Order 12866 and the Regulatory Flexibility Act.

List of Subjects in 24 CFR Part 58

    Environmental protection, Community development block grants, 
Environmental Impact Statements, Grant programs--housing and community 
development, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, part 58 of title 24 of 
the Code of Federal Regulations is amended as follows:

PART 58--ENVIRONMENTAL REVIEW PROCEDURES FOR ENTITIES ASSUMING HUD 
ENVIRONMENTAL RESPONSIBILITIES

    1. The authority citation for part 58 is revised to read as 
follows:

    Authority: 12 U.S.C. 1707 note; 42 U.S.C. 1437o(i)(1) and (2), 
1437x, 3535(d), 3547, 4332, 4852, 5304(g), 11402, and 12838; E.O. 
11514, 35 FR 4247, 3 CFR, 1966-1970, Comp., p. 902, as amended by 
E.O. 11991, 42 FR 26967, 3 CFR, 1977 Comp., p. 123.

    2. The heading for part 58 is revised as set forth above.
    3. In paragraph (c) of Sec. 58.1, the word ``and'' is removed at 
the end of paragraph (c)(4), the period at the end of paragraph (c)(5) 
is removed and a semicolon is added in its place, and new paragraphs 
(c)(6), (c)(7), (c)(8), are added to read as follows:


Sec. 58.1  Purpose, scope and applicability.

* * * * *
    (c) Applicability. * * *
    (6)(i) Public Housing Programs under Title I of the United States 
Housing Act of 1937 (42 U.S.C. 1437 et seq.);
    (ii) Indian Housing Programs under Title I of the United States 
Housing Act of 1937, including the Mutual Help Program (42 U.S.C. 1437 
et seq.); and
    (iii) Assistance administered by a public housing agency or Indian 
housing authority under Section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f), except for assistance provided under 24 CFR 
part 886.
    (7) Special Projects appropriated under an appropriation act for 
HUD, such as special projects under the head ``Annual Contributions for 
Assisted Housing'' in title II of various Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Acts; and
    (8) The FHA Multifamily Housing Finance Agency Risk Sharing Pilot 
Program under section 542(c) of the Housing and Community Development 
Act of 1992 (12 U.S.C. 1707 note).
    4. In Sec. 58.2, paragraph (a)(4) is revised, and new paragraphs 
(a)(6) and (a)(7) are added, to read as follows:


Sec. 58.2  Terms, abbreviations and definitions.

    (a) * * *
    (4) Recipient means any of the following entities, when they are 
eligible recipients or grantees under a program listed in Sec. 58.1(c):
    (i) A State that does not distribute HUD assistance under the 
program to a unit of general local government;
    (ii) Guam, the Northern Mariana Islands, the Virgin Islands, 
American Samoa, and Palau;
    (iii) A unit of general local government;
    (iv) An Indian tribe;
    (v) (A) With respect to Public Housing Programs under 
Sec. 58.1(c)(6)(i), a public housing agency;
    (B) With respect to Indian Housing Programs under 
Sec. 58.1(c)(6)(ii), an Indian housing authority;
    (C) With respect to Section 8 assistance under 
Sec. 58.1(c)(6)(iii), a public housing agency or Indian housing 
authority;
    (vi) Any direct grantee of HUD for a special project under 
Sec. 58.1(c)(7); and
    (vii) With respect to the FHA Multi-Family Housing Finance Agency 
Risk-Sharing Pilot Program under Sec. 58.1(c)(8), a qualified housing 
finance agency.
* * * * *
    (6) Release of funds. In the case of FHA Multifamily Housing 
Finance Agency Risk-Sharing Pilot Program under Sec. 58.1(c)(8), 
Release of Funds, as used in this part, refers to HUD issuance of a 
firm approval letter, and Request for Release of Funds refers to a 
recipient's request for a firm approval letter.
    (7) Responsible entity means:
    (i) With respect to environmental responsibilities under programs 
listed in Sec. 58.1(c)(1) through (5), a recipient under the program.
    (ii) With respect to environmental responsibilities under the 
programs listed in Sec. 58.1(c)(6) through (8), a State, unit of 
general local government, Indian tribe or Alaska native village. 
Nonrecipient responsible entities are designated as follows:
    (A) For qualified housing finance agencies, the State or a unit of 
general local government, Indian tribe or Alaska native village whose 
jurisdiction contains the project site;
    (B) For public housing agencies, the unit of general local 
government within which the project is located that exercises land use 
responsibility, or if HUD determines this infeasible, the county, or if 
HUD determines this infeasible, the State;
    (C) For non-profit organizations and other entities, the unit of 
general local government, Indian tribe or Alaska native village within 
which the project is located that exercises land use responsibility, or 
if HUD determines this infeasible, the county, or if HUD determines 
this infeasible, the State; and
    (D) For Indian housing authorities, the Indian tribe in whose 
jurisdiction the project is located, or if the project is located 
outside of a reservation, the Indian tribe that established the 
authority.
* * * * *
    5. In Sec. 58.4, paragraph (b) is revised to read as follows:


Sec. 58.4  HUD Legal authority.

* * * * *
    (b) Assumption authority for responsible entities: General. 
Responsible entities shall assume the responsibility for environmental 
review, decisionmaking, and action that would otherwise apply to HUD 
under NEPA and other provisions of law that further the purposes of 
NEPA, as specified in Sec. 58.5. Responsible entities, other than units 
of general local government that [[Page 13521]] receive assistance from 
a State, assume these responsibilities by execution of either a grant 
agreement with HUD or a legally binding document, such as the 
certification contained on HUD Form 7015.15, certifying to the 
assumption of environmental responsibilities. When a State distributes 
funds to recipients, the State must provide for appropriate procedures 
by which these recipients will evidence their assumption of 
environmental responsibilities.
* * * * *
    6. In Sec. 58.6, paragraph (a)(2) is revised to read as follows:


Sec. 58.6  Other requirements.

* * * * *
    (a) * * *
    (2) Where a recipient provides financial assistance for acquisition 
or construction purposes (including rehabilitation) for property 
located in an area identified by FEMA as having special flood hazards, 
the responsible entity is responsible for assuring that flood insurance 
under the National Flood Insurance Program is obtained and maintained.
* * * * *
    7. A new section 58.7 is added to subpart A to read as follows:


Sec. 58.7  Effective date of regulation.

    This section, Secs. 58.1(c)(6) through (8), 58.2(a)(4)(v) through 
(4)(vii), and 58.11(b) through (d) shall expire and shall not be in 
effect after October 14, 1996, unless the interim rules listed in this 
section are published as a final rule or the Department publishes a 
document in the Federal Register to extend their effectiveness. If the 
interim rules cited in this section expire, HUD will publish a document 
in the Federal Register removing them.
    8. Section 58.10 is revised to read as follows:


Sec. 58.10  Basic environmental responsibility.

    In accordance with the provisions of law cited in Sec. 58.1(c), the 
responsible entity must assume the environmental responsibilities for 
projects under programs cited in Sec. 58.1(c) in accordance with 
procedural provisions of NEPA and the CEQ regulations (40 CFR parts 
1500 through 1508), as well as the procedures set forth in this part, 
unless otherwise provided for in program regulations. This includes 
responsibility for compliance with the applicable provisions and 
requirements of the Federal laws and authorities specified in 
Sec. 58.5.
    9. Section 58.11 is revised to read as follows:


Sec. 58.11  Legal capacity and performance.

    (a) A responsible entity which believes that it does not have the 
legal capacity to carry out the environmental responsibilities required 
by this part should contact the appropriate local HUD Office or the 
State for further instructions. Determinations of legal capacity will 
be made on a case by case basis.
    (b) If a public housing, Indian housing, or special project 
recipient objects to the nonrecipient responsible entity conducting the 
environmental review on the basis of performance, timing, or 
compatibility of objectives, HUD will review the facts to determine who 
will perform the environmental review .
    (c) At any time, HUD may reject the use of a responsible entity to 
conduct the environmental review in a particular case on the basis of 
performance, timing or compatibility of objectives, or in accordance 
with Sec. 58.77(d)(1).
    (d) If a responsible entity, other than a recipient, objects to 
performing an environmental review, or if HUD determines that the 
responsible entity should not perform the environmental review, HUD may 
designate another responsible entity to conduct the review in 
accordance with this part or may itself conduct the environmental 
review in accordance with the provisions of 24 CFR part 50.
    10. Section 58.34 is amended by revising paragraph (a) introductory 
text and paragraph (b) to read as follows:


Sec. 58.34  Exempt activities.

    (a) A responsible entity does not have to comply with the 
environmental requirements of this part or undertake any environmental 
review, consultation or other action under NEPA and the other 
provisions of law or authorities cited in Sec. 58.5 for the activities 
exempt by this section or projects consisting solely of the following 
exempt activities:
* * * * *
    (b) A recipient does not have to submit an RROF and certification, 
and no further approval from HUD or the State will be needed by the 
recipient for the drawdown of funds to carry out exempt activities and 
projects. However, the responsible entity must document in writing its 
determination that each activity or project is exempt and meets the 
conditions specified for such exemption under this section.
    11. Section 58.46 is revised to read as follows:


Sec. 58.46  Time delays for exceptional circumstances.

    Under the circumstances described in paragraphs (a), (b), and (c) 
of this section, the responsible entity must make the FONSI available 
for public comments for 30 days before the recipient files the RROF. 
These circumstances are:
    (a) When there is considerable interest or controversy concerning 
the project;
    (b) When the proposed project is similar to other projects that 
normally require the preparation of an EIS; or
    (c) When the project is unique and without precedent.
    12. Section 58.47 is revised to read as follows:


Sec. 58.47  Re-evaluation of assessment findings.

    (a) A responsible entity must re-evaluate the EA findings when:
    (1) The recipient proposes substantial changes in the nature, 
magnitude or extent of the project, including adding new activities not 
anticipated in the original scope of the project and its cost estimate;
    (2) There are new circumstances and environmental conditions which 
may affect the project or have a bearing on its impact, such as 
concealed or unexpected conditions discovered during the implementation 
of the project or activity which is proposed to be continued; or
    (3) The recipient selects an alternative not considered in the 
original EA.
    (b) The purpose of the responsible entity's re-evaluation of the EA 
is to determine if the FONSI is still valid. If the FONSI is still 
valid but the data or conditions upon which it was based have changed, 
the responsible entity must amend the original assessment and update 
its ERR by including this re-evaluation and its determination based on 
its findings. If the responsible entity determines that the FONSI is no 
longer valid it must prepare an EA or an EIS if its evaluation 
indicates potentially significant impacts. Where the recipient is not 
the responsible entity, the recipient must inform the responsible 
entity promptly of any proposed substantial changes under paragraph 
(a)(1) of this section or new circumstances or environmental conditions 
under paragraph (a)(2) of this section and must permit the responsible 
entity to re-evaluate the EA before proceeding.
    13. Section 58.64 is revised to read as follows:


Sec. 58.64  Supplemental environmental impact statements.

    A supplement to the DEIS or FEIS must be prepared when a recipient 
proposes substantial changes in the proposed project or when 
significant new circumstances or information [[Page 13522]] become 
available during the environmental review process. Where the recipient 
is not the responsible entity, the recipient must inform the 
responsible entity promptly of any proposed substantial changes or 
significant new circumstances or information and must permit the 
responsible entity to prepare a supplement before proceeding. 
Supplements may be used to modify or update EIS's which the responsible 
entity has determined to be valid and are being adopted for use. 
Supplemental EIS's are subject to the requirements set forth in 40 CFR 
1502.9.
    14. In the list below, for each entry indicated in the left column, 
remove the reference indicated in the middle column from wherever it 
appears in the section and add the reference indicated in the right 
column:

----------------------------------------------------------------------------------------------------------------
                    Section                                 Remove                            Add               
----------------------------------------------------------------------------------------------------------------
58.1(a)........................................  Recipients of HUD assistance  Recipients of HUD assistance and 
                                                                                other responsible entities.     
58.1(a), last word of paragraph................  Recipients..................  Recipients of HUD assistance and 
                                                                                other responsible entities.     
58.1(b)........................................  Recipients of HUD assistance  Responsible entities.            
58.1(c), introductory text.....................  Recipients..................  Recipients or other responsible  
                                                                                entities.                       
58.2(a)(3).....................................  Grant recipient.............  Recipient.                       
58.4(b)........................................  Recipients..................  Responsible entities.            
58.5, introductory text........................  Recipient...................  Responsible entity.              
58.6, introductory text and paragraph (c)......  Recipient...................  Responsible entity.              
58.6, introductory text........................  Recipient's.................  Responsible entities.            
58.12..........................................  Recipient...................  Responsible entity.              
58.13, introductory text and paragraph (a).....  recipient's.................  responsible entity's.            
58.13(a) and (b)...............................  Recipient...................  Responsible entity.              
58.14..........................................  Recipient...................  Responsible entity.              
58.14..........................................  Grant recipient.............  Responsible entity.              
58.15, introductory text.......................  Recipient...................  Responsible entity.              
58.15, introductory text and concluding text...  Grant recipient.............  responsible entity.              
58.30..........................................  Recipient...................  Responsible entity.              
58.30..........................................  Recipient's.................  Responsible entity's.            
58.32(a).......................................  Recipient...................  Responsible entity.              
58.32(b).......................................  Recipient's.................  Responsible entity's.            
58.35(b), (c) introductory text and (d)........  Recipient...................  Responsible entity.              
58.36..........................................  Recipient...................  Responsible entity.              
58.37(a)(2)....................................  Recipient's.................  Responsible entity's.            
58.37(a)(6),(b)................................  Recipient...................  Responsible entity.              
58.40..........................................  Recipient...................  Responsible entity.              
58.41..........................................  Recipient...................  Responsible entity.              
58.42..........................................  Recipient...................  Responsible entity.              
58.43..........................................  Recipient...................  Responsible entity.              
58.43..........................................  Recipient's.................  Responsible entity's.            
58.44, introductory text and concluding text...  Recipient...................  Responsible entity.              
58.50..........................................  Recipient...................  Responsible entity.              
58.50..........................................  Recipient's.................  Responsible entity's.            
58.52..........................................  Recipient...................  Responsible entity.              
58.55..........................................  Recipient...................  Responsible entity.              
58.56..........................................  Recipient...................  Responsible entity.              
58.57..........................................  Recipient...................  Responsible entity.              
58.59..........................................  Recipient...................  Responsible entity.              
58.59..........................................  Recipient's.................  Responsible entity's.            
58.60..........................................  Recipient...................  Responsible entity.              
58.61..........................................  Recipient...................  Responsible entity.              
58.61..........................................  Recipient's.................  Responsible entity's.            
58.62..........................................  Recipient...................  Responsible entity.              
58.63..........................................  Recipient...................  Responsible entity.              
58.65..........................................  Recipient...................  Responsible entity.              
58.65..........................................  Recipient's.................  Responsible entity's.            
58.66..........................................  Recipient...................  Responsible entity.              
58.66..........................................  Recipient's.................  Responsible entity's.            
58.70..........................................  Recipient...................  Responsible entity.              
58.73..........................................  Recipient's.................  Responsible entity's.            
58.74..........................................  Recipient's.................  Responsible entity's.            
58.75(b), (c), (d), (e)(2), (e)(3), and (g)....  Recipient...................  Responsible entity.              
58.75, introductory text and paragraph (a).....  Recipient's.................  Responsible entity's.            
58.76, introductory text and paragraph (e).....  Recipient's.................  Responsible entity's.            
----------------------------------------------------------------------------------------------------------------


[[Page 13523]]

    15. Section 58.71 is revised to read as follows:


Sec. 58.71  Request for release of funds and certification.

    (a) The RROF and certification shall be sent to the appropriate HUD 
Field Office (or the State, if applicable), except as provided in 
paragraph (b) of this section. This request shall be executed by the 
responsible entity's Certifying Officer. The request shall describe the 
specific project and activities covered by the request and contain the 
certification required under the applicable statute cited in 
Sec. 58.1(c). The RROF and certification must be in a form specified by 
HUD.
    (b) When the responsible entity is conducting an environmental 
review on behalf of a recipient, as provided for in Sec. 58.10, the 
recipient must provide the responsible entity with all available 
project and environmental information and refrain from undertaking any 
physical activities or choice limiting actions until HUD has approved 
its request for release of funds. The RROF and certification form 
executed by the responsible entity's certifying officer shall be sent 
to the recipient that is to receive the assistance along with a 
description of any special environmental conditions that must be 
adhered to in carrying out the project. The recipient is to submit the 
RROF and the certification of the responsible entity to HUD with a 
cover letter requesting the release of funds and indicating that it 
agrees to abide by the special conditions, procedures and requirements 
of the environmental review, and to advise the responsible entity of 
any proposed change in the scope of the project or any change in 
environmental conditions.
    (c) If the responsible entity determines that some of the 
activities are exempt under applicable provisions of this Part, the 
responsible entity shall advise the recipient that it may incur costs 
on these activities as soon as programmatic authorization is received. 
This finding shall be documented in the environmental review record 
maintained by the responsible entity and in the recipient's project 
files.
    16. Section 58.77 is amended by revising paragraph (b) and 
paragraphs (d)(1) introductory text, (d)(1)(ii), (d)(1)(iv), and 
(d)(2), to read as follows:


Sec. 58.77  Effect of approval of certification.

* * * * *
    (b) Public and agency redress. Persons and agencies seeking redress 
in relation to environmental reviews covered by an approved 
certification shall deal with the responsible entity and not with HUD. 
It shall be HUD's policy to refer all inquiries and complaints to the 
responsible entity and its Certifying Officer. Similarly, the State 
(where applicable) may direct persons and agencies seeking redress in 
relation to environmental reviews covered by an approved certification 
to deal with the responsible entity, and not the state, and may refer 
inquiries and complaints to the responsible entity and its Certifying 
Officer. Remedies for noncompliance are set forth in program 
regulations.
* * * * *
    (d) Responsibility for monitoring training. (1) At least once every 
three years, HUD intends to conduct in-depth monitoring of the 
environmental activities performed by responsible entities that have 
assumed responsibilities for environmental review, decisionmaking and 
action under this part. Limited monitoring of these environmental 
activities will be conducted during each program monitoring site visit. 
If through limited or in-depth monitoring of these environmental 
activities or by other means, HUD becomes aware of any environmental 
deficiencies, HUD may take one or more of the following actions:
* * * * *
    (ii) HUD may require attendance by staff of the responsible entity 
at HUD sponsored or approved training, which will be provided 
periodically at various locations around the country;
* * * * *
    (iv) HUD may suspend or terminate the responsible entity's 
assumption of the environmental review responsibility;
* * * * *
    (2) HUD's responsibilities and action under paragraph (d)(1) of 
this section shall not be construed to limit or reduce any 
responsibility assumed by a responsible entity with respect to any 
particular release of funds under this part. Whether or not HUD takes 
action under paragraph (d)(1) of this section, the Certifying Officer 
remains the responsible Federal official under Sec. 58.17 with respect 
to projects and activities for which the Certifying Officer has 
submitted a certification under this part.

    Dated: January 31, 1995.
Henry G. Cisneros,
Secretary.
[FR Doc. 95-6054 Filed 3-10-95; 8:45 am]
BILLING CODE 4210-32-P