[Federal Register Volume 63, Number 60 (Monday, March 30, 1998)]
[Rules and Regulations]
[Pages 15270-15272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8221]



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Part IV





Department of Housing and Urban Development





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24 CFR Part 58



Technical Amendments to HUD's Regulations Governing Environmental 
Review Procedures for Entities Assuming HUD Environmental 
Responsibilities; Final Rule

  Federal Register / Vol. 63, No. 60 / Monday, March 30, 1998 / Rules 
and Regulations  

[[Page 15270]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 58

[Docket No. FR-4138-F-01]
RIN: 2501-AC32


Technical Amendments to HUD's Regulations Governing Environmental 
Review Procedures for Entities Assuming HUD Environmental 
Responsibilities

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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SUMMARY: On April 30, 1996 (61 FR 19120), HUD published a final rule 
streamlining and updating 24 CFR part 58 in its entirety. Part 58 
provides instructions and guidance to recipients of HUD assistance and 
other responsible entities for conducting environmental reviews in 
accordance with: the National Environmental Policy Act of 1969 (NEPA); 
the NEPA implementing regulations of the Council on Environmental 
Quality; and other NEPA related Federal laws and authorities. This 
final rule makes several technical and clarifying amendments to the 
April 30, 1996 final rule.

DATES: Effective Date: April 29, 1998.

FOR FURTHER INFORMATION CONTACT: Richard H. Broun, Director, Office of 
Community Viability, Room 7240, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Washington, DC 20410. For 
telephone communication, contact Fred Regetz, Environmental Review 
Division at (202) 708-1201, extension 4465. (This telephone number is 
not toll-free.) Hearing or speech-impaired individuals may access this 
telephone number via TTY by calling the Federal Information Relay 
Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. The April 30, 1996 Final Rule

    On April 30, 1996 (61 FR 19120), HUD published a final rule 
revising 24 CFR part 58 in its entirety. Part 58 provides instructions 
and guidance to recipients of HUD assistance and other responsible 
entities for conducting environmental reviews in accordance with: (1) 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4347) 
(NEPA); (2) the NEPA implementing regulations of the Council on 
Environmental Quality; and (3) other NEPA related Federal laws and 
authorities. The April 30, 1996 final rule streamlined, updated, and 
improved these regulations. With the exception of Secs. 58.1(b)(6)(i) 
and 58.2(a)(5)(v)(A), the April 30, 1996 final rule became effective on 
May 30, 1996. These two paragraphs, which pertain to public housing 
development and modernization programs, became effective on October 14, 
1996. The April 30, 1996 final rule described in detail the amendments 
to 24 CFR part 58.

II. This Final Rule

    This final rule makes several technical and clarifying changes to 
the April 30, 1996 final rule. These revisions are as follows:
    1. This final rule revises the heading to Sec. 58.1 so that it will 
more accurately reflect the subject matter of the section.
    2. The final rule amends Sec. 58.6 (Other requirements) by 
correcting a typographical error. Section 58.6 erroneously cites the 
requirements of Sec. 58.34(a)(11). This rule corrects the error by 
properly citing Sec. 58.34(a)(12). Sections 58.6(a)(1)(ii) and 
58.6(a)(2) are revised to indicate that the requirement to purchase 
flood insurance in a special flood hazard area applies where a 
community is participating in the National Flood Insurance Program. 
While community participation and the purchase of flood insurance is a 
requirement generally, a community's participation in the flood 
insurance program is not a condition of Federal assistance during the 
first year after the Federal Emergency Management Agency notifies the 
community that it contains special flood hazard areas. During this 
limited period, HUD assistance may be approved for the properties in a 
special flood insurance area despite the community's initial 
nonparticipation in the program and the resulting unavailability of 
flood insurance. A new paragraph (b) is added to state explicitly the 
limitations on use of HUD disaster assistance that are imposed by 
section 582 of the National Flood Insurance Reform Act of 1994 when a 
person who had previously received Federal disaster assistance fails to 
obtain or maintain flood insurance.
    3. The rule removes the last sentence of Sec. 58.10, which 
redundantly states that the ``provisions of the CEQ [Council on 
Environmental Quality] regulations in 40 CFR parts 1500 through 1508 
are applicable to'' part 58.
    4. Section 58.14 currently permits State, Federal and local 
agencies to participate or act in a joint lead or cooperating agency 
capacity in preparing joint environmental impact statements. This final 
rule provides permissive authority to prepare joint environmental 
assessments.
    5. Section 58.34(a)(10) is revised to clarify that the imminent 
threats that would trigger the exemption are imminent threats to public 
safety including those resulting from physical deterioration.
    6. Section 58.35(b)(5) is revised to replace an erroneous reference 
to new dwelling units with a reference to dwelling units under 
construction. New units not already under construction were never 
intended to be covered under this categorical exclusion.
    7. Sections 58.47(a) and (b) have been revised for clarity. Section 
58.47(b)(1) makes clear that, if the stated circumstances are met and a 
FONSI has already been published, then no further FONSI notice is 
required to be published.
    8. The April 30, 1996 final rule removed several obsolete or 
unnecessarily codified sections from 24 CFR part 58. For example, 
several of these sections did not set forth any regulatory 
requirements, but were merely being held in reserve. The removal of 
these provisions, however, resulted in the discontinuous numbering of 
the sections comprising part 58. Since publication of the April 30, 
1996 final rule, HUD has received several questions regarding the 
status of the missing sections. HUD wishes to clarify that 24 CFR part 
58 (as amended by this final rule) describes all the regulatory 
requirements for entities assuming HUD environmental responsibilities.

III. Justification for Final Rulemaking

    HUD generally publishes a rule for public comment before issuing a 
rule for effect, in accordance with its own regulations on rulemaking 
in 24 CFR part 10. Part 10 provides for exceptions to the general rule 
if 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). In addition, part 10 permits 
publishing an interpretative rule for effect without prior public 
procedure.
    HUD finds that in this case prior public procedure is unnecessary. 
In general, the amendments made by this final rule update and clarify 
the policies and procedures contained in the April 30, 1996 final rule. 
As noted above, Sec. 58.14 has been revised to permit the same type of 
joint effort among Federal, State, and local agencies in preparing 
environmental assessments as currently exists in preparing 
environmental impact statements. Prior public comment is unnecessary 
for this change because it is clearly consistent with the underlying 
policy of the current section to further cooperation among these 
agencies and it is permissive authority.

[[Page 15271]]

The new Sec. 58.6(b) is an interpretative rule which explains a 
limitation imposed by section 582 of the National Flood Insurance 
Reform Act of 1994 on the use of HUD disaster assistance in a special 
flood hazard area.

IV. Findings and Certifications

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR Part 50, 
which implement 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 at the above address.

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 final 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. This rule 
is concerned solely with the review procedures of entities assuming HUD 
environmental responsibilities. It effects no changes in the current 
relationships between the Federal government, the States and their 
political subdivisions.

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 makes several 
technical and clarifying changes to the April 30, 1996 final rule. This 
final rule will have no adverse or disproportionate economic impact on 
small entities.

Unfunded Mandates Reform Act

    The Secretary has reviewed this rule before publication and by 
approving it certifies, in accordance with the Unfunded Mandates Reform 
Act of 1995 (2 U.S.C. 1532), that this rule does not impose a Federal 
mandate that will result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year.

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.

    Accordingly, 24 CFR part 58 is amended as follows:

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

    1. The authority citation for 24 CFR part 58 continues 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, 3 CFR, 1966-1970, Comp., p. 902, as amended by E.O. 11991, 3 
CFR, 1977 Comp., p. 123.

    2. In Sec. 58.1, revise the section heading to read as follows:


Sec. 58.1  Purpose and applicability.

* * * * *
    3. Amend Sec. 58.6 as follows:
    a. In the introductory text, remove the term ``Sec. 58.34(a)(11)'' 
and add, in its place, the term ``Sec. 58.34(a)(12)'';
    b. Revise paragraph (a)(1)(ii);
    c. Revise paragraph (a)(2);
    d. Redesignate paragraph (b) and (c) as paragraphs (c) and (d), 
respectively; and
    e. Add a new paragraph (b).


Sec. 58.6  Other requirements.

* * * * *
    (a) * * *
    (1) * * *
    (ii) Where the community is participating in the National Flood 
Insurance Program, flood insurance protection is to be obtained as a 
condition of the approval of financial assistance to the property 
owner.
    (2) Where the community is participating in the National Flood 
Insurance Program and the 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.
* * * * *
    (b) Under section 582 of the National Flood Insurance Reform Act of 
1994, 42 U.S.C. 5154a, HUD disaster assistance that is made available 
in a special flood hazard area may not be used to make a payment 
(including any loan assistance payment) to a person for repair, 
replacement or restoration for flood damage to any personal, 
residential or commercial property if:
    (1) The person had previously received Federal flood disaster 
assistance conditioned on obtaining and maintaining flood insurance; 
and
    (2) The person failed to obtain and maintain the flood insurance.
* * * * *
    4. Revise Sec. 58.10 to read as follows:


Sec. 58.10  Basic environmental responsibility.

    In accordance with the provisions of law cited in Sec. 58.1(b), the 
responsible entity must assume the environmental responsibilities for 
projects under programs cited in Sec. 58.1(b), and in doing so must 
comply with the provisions of NEPA and the CEQ regulations contained in 
40 CFR parts 1500 through 1508, including the requirements set forth in 
this part. This includes responsibility for compliance with the 
applicable provisions and requirements of the Federal laws and 
authorities specified in Sec. 58.5.
    5. Revise Sec. 58.14 to read as follows:


Sec. 58.14  Interaction with State, Federal and non-Federal entities.

    A responsible entity shall consult with appropriate environmental 
agencies, State, Federal and non-Federal entities and the public in the 
preparation of an EIS, EA or other environmental reviews undertaken 
under the related laws and authorities cited in Sec. 58.5 and 
Sec. 58.6. The responsible entity must also cooperate with other 
agencies to reduce duplication between NEPA and comparable 
environmental review requirements of the State (see 40 CFR 1506.2(b) 
and (c)). The responsible entity must prepare its EAs and EISs so that 
they comply with the environmental review requirements of both Federal 
and State laws unless otherwise specified or provided by law. State, 
Federal and local agencies may participate or act in a joint lead or 
cooperating agency capacity in the preparation of joint EISs or joint 
environmental assessments (see 40 CFR 1501.5(b) and 1501.6). A single 
EIS or EA may be prepared and adopted by multiple users to the extent 
that the review addresses the relevant environmental issues and there 
is a written agreement between the cooperating agencies which sets 
forth the coordinated and overall responsibilities.
    6. Revise paragraph (a)(10) of Sec. 58.34 to read as follows:


Sec. 58.34  Exempt activities.

    (a) * * *

[[Page 15272]]

    (10) Assistance for temporary or permanent improvements that do not 
alter environmental conditions and are limited to protection, repair, 
or restoration activities necessary only to control or arrest the 
effects from disasters or imminent threats to public safety including 
those resulting from physical deterioration;
* * * * *
    7. Revise paragraph (b)(5) of Sec. 58.35 to read as follows:


Sec. 58.35  Categorical exclusions.

* * * * *
    (b) * * *
    (5) Activities to assist homebuyers to purchase existing dwelling 
units or dwelling units under construction, including closing costs and 
down payment assistance, interest buydowns, and similar activities that 
result in the transfer of title.
* * * * *
    8. In Sec. 58.47, revise the introductory text of paragraph (a) and 
paragraph (b) to read as follows:


Sec. 58.47  Re-evaluation of environmental assessments and other 
environmental findings.

    (a) A responsible entity must re-evaluate its environmental, 
findings to determine if the original findings are still valid, when:
* * * * *
    (b)(1) If the original findings are still valid but the data or 
conditions upon which they were based have changed, the responsible 
entity must affirm the original findings and update its ERR by 
including this re-evaluation and its determination based on its 
findings. Under these circumstances, if a FONSI notice has already been 
published, no further publication of a FONSI notice is required.
    (2) If the responsible entity determines that the original findings 
are no longer valid, it must prepare an EA or an EIS if its evaluation 
indicates potentially significant impacts.
    (3) 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, new 
circumstances or environmental conditions under paragraph (a)(2) of 
this section, or any proposals to select a different alternative under 
paragraph (a)(3) of this section, and must then permit the responsible 
entity to re-evaluate the findings before proceeding.


Sec. 58.60  [Amended]

    9. In Sec. 58.60(e), remove the term ``1502.2'' and add, in its 
place, the term ``1505.2''.

    Dated: March 13, 1998.
Andrew M. Cuomo,
Secretary.
[FR Doc. 98-8221 Filed 3-27-98; 8:45 am]
BILLING CODE 4210-32-P