[Federal Register Volume 72, Number 176 (Wednesday, September 12, 2007)]
[Proposed Rules]
[Pages 52264-52275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17818]



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Part III





Department of Housing and Urban Development





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24 CFR Parts 50, 51, 55, 58, and 91



 Amendments to HUD's Environmental Regulations; Proposed Rule

  Federal Register / Vol. 72, No. 176 / Wednesday, September 12, 2007 / 
Proposed Rules  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 50, 51, 55, 58, and 91

[Docket No. FR-4954-P-01]
RIN 2501-AD11


Amendments to HUD's Environmental Regulations

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would update HUD's environmental 
regulations to implement statutory changes and make environmental 
compliance easier. The rule would consider the use of electronic 
communication for certain records and submissions. The rule would also 
make other changes to clarify HUD's environmental regulations and 
provide conforming amendments.

DATES: Comment Due Date: November 13, 2007.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 10276, Washington, DC 20410-0500. Interested persons also may 
submit comments electronically through The Federal eRulemaking Portal 
at http://www.regulations.gov. HUD strongly encourages commenters to 
submit comments electronically so that HUD can make them immediately 
available to the public. Commenters should follow the instructions 
provided on that site to submit comments electronically.
    Facsimile (FAX) comments are not acceptable. In all cases, 
communications must refer to the docket number and title. All comments 
and communications submitted to HUD will be available, without charge, 
for public inspection and copying between 8 a.m. and 5 p.m. weekdays at 
the above address. Due to security measures at the HUD Headquarters 
building, an advance appointment to review the public comments must be 
scheduled by calling the Regulations Division at (202) 708-3055 (this 
is not a toll-free number). Copies of all comments submitted are 
available for inspection and downloading at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Richard H. Broun, Director, Office of 
Environment and Energy, Department of Housing and Urban Development, 
451 Seventh Street, SW., Room 7244, Washington, DC 20410, telephone 
number (202) 708-2894, extension 4439 (this is not a toll-free number), 
(e-mail address: [email protected]) or Walter Prybyla, 
Environmental Review Division, Office of Environment and Energy, 
Community Planning and Development, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 7250, Washington, DC 20410, 
telephone number (202) 708-1201, extension 4466 (this is not a toll-
free number), (e-mail address: [email protected]). Hearing- or 
speech-impaired individuals may access these numbers through TTY by 
calling the toll-free Federal Information Relay Service at (800) 877-
8339.

SUPPLEMENTARY INFORMATION:

I. Background

    HUD's environmental regulations are found at 24 CFR parts 50, 51, 
55, and 58. This rule proposes changes to each of these parts.
    Part 50 implements the National Environmental Policy Act (NEPA) and 
provides for HUD environmental review for all HUD policy and project 
actions, except those subject to part 58. Part 50 also applies to 
activities carried out by funding recipients subject to 24 CFR part 58 
where: (1) Those recipients claim lack of legal capacity to assume 
environmental review responsibilities under part 58 and that claim is 
approved by HUD, (2) where an Indian tribe does not choose to perform 
the environmental review under 24 CFR 1000.20, or (3) where HUD 
otherwise determines that it will conduct the environmental review 
itself.
    Part 51 provides certain environmental criteria and standards for 
determining project acceptability and any mitigating measures that 
might be needed. This part covers noise abatement, siting of assisted 
projects near hazardous operations handling explosive or flammable 
materials, and siting in relation to airfields.
    Part 55 comprises HUD's rules for floodplain management. This part 
implements Executive Order 11988--Floodplain Management. Subpart C 
provides procedures for making determinations on floodplain management 
for assisted projects located within or proposed for floodplain 
locations.
    Part 58 contains HUD's regulations applicable to funding recipients 
and entities that assume environmental review responsibilities where 
statutorily authorized for certain programs. Under 24 CFR 58.13, each 
responsible entity must have a certifying officer who acts as the 
official responsible for compliance with NEPA and other Federal 
environmental laws.
    This rulemaking also proposes revisions to the environmental 
sections of 24 CFR part 91. Part 91 governs the Consolidated Plan 
process, a strategy to be followed by local jurisdictions in carrying 
out HUD programs and a management tool for assessing performance and 
tracking results. The Consolidated Plan builds on a participatory 
process among citizens, organizations, businesses, and other 
stakeholders partnering to provide affordable housing and community 
development (Subpart B).
    Section 105(d) of the Native American Housing Assistance and Self-
Determination Act (NAHASDA), 25 U.S.C. 4115(d), provides for waiver of 
environmental review provisions in Section 105. Section 105(d) states 
that:

    The Secretary may waive the requirements under this section if 
the Secretary determines that a failure on the part of a recipient 
to comply with provisions of this section--
    (1) Will not frustrate the goals of the National Environmental 
Policy Act of 1969 [42 U.S.C. 4321 et seq.] or any other provision 
of law that furthers the goals of that Act;
    (2) Does not threaten the health or safety of the community 
involved by posing an immediate or long-term hazard to residents of 
that community;
    (3) Is a result of inadvertent error, including an incorrect or 
incomplete certification provided under subsection (c)(1) of this 
section; and
    (4) May be corrected through the sole action of the recipient.

    Interim waiver procedures are contained in Notice CPD-04-08: 
``Waiving statutory environmental review requirements for the Indian 
Housing Block Grant Program for Tribes that have assumed environmental 
review responsibilities under 24 CFR part 58.'' Because of statutory 
requirements under NAHASDA, rulemaking on the issue of environmental 
waivers under NAHASDA is going to be one of the subjects of an upcoming 
negotiated rulemaking. (See ``Indian Housing Block Grant Program; 
Notice of Proposed Negotiated Rulemaking Committee Membership,'' 71 FR 
16004, 16005 (March 29, 2006).) The proposed rule resulting from that 
negotiated rulemaking will be published in the Federal Register in the 
future for public comment.
    Recently enacted statutes provide for the use of electronic 
processes in government, where practicable. The Electronic Signatures 
in Global and National Commerce Act (ESIGN), 15 U.S.C. 7001 et seq., 
provides for the legal validity of electronic signatures and electronic 
records, and also provides for consumer protection

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relating to electronic disclosures of information. The Government 
Paperwork Elimination Act, Title XVII of Pub. L. 105-277, codified at 
44 U.S.C. 3504 note (GPEA), requires that executive agencies provide 
for the option of electronic maintenance, submission, or disclosure of 
information, when practicable, instead of paper, and also that agencies 
allow for the use and acceptance of electronic signatures, when 
practicable. The E-Government Act of 2002, 44 U.S.C. 101 note, imposes 
certain duties on agencies regarding making information electronically 
available, establishes performance goals, and makes the Office of 
Management and Budget (OMB) responsible for governmentwide electronic 
initiatives. It also requires that agencies do not diminish access to 
government services for people that do not have access to computers or 
the Internet. Section 203 of the E-Government Act provides that OMB and 
the General Services Administration (GSA) shall take steps to allow 
interoperability among executive agencies when using electronic 
signatures, and that agencies shall ensure that their methods for use 
and acceptance of electronic signatures are compatible with those OMB 
and GSA policies.
    The effort to better utilize electronic communication in the 
environmental review process, which HUD believes will make the process 
more accessible and user-friendly, is ongoing. As an initial step, the 
proposed rule would encourage environmental review records to be 
managed electronically and posted on agency Web sites to make them 
accessible to HUD staff and to the public.
    The following item may be considered for a future rulemaking, but 
is not part of this proposed rule. HUD is considering modifying 24 CFR 
50.3(i) (and 24 CFR 58.5(i)(2)) so that when any initial investigation 
by a qualified professional is required, such investigation shall be in 
accordance with ASTM International Standard E1527-05 entitled 
``Standard Practice for Environmental Site Assessments: Phase I 
Environmental Site Assessment Process.''

II. This Proposed Rule

24 CFR Part 50

    HUD proposes to amend 24 CFR 50.4(b)(1) to clarify that flood 
insurance requirements generally must be met by purchasing insurance 
rather than self-insurance, except as authorized by law for state-owned 
projects in states approved by the Director of the Federal Emergency 
Management Agency.
    HUD proposes to amend 24 CFR 50.10(b) to reflect the current 
allocation of responsibilities for environmental policies and 
procedures within the Department and to improve oversight as part of 
HUD's compliance with NEPA and related laws and authorities. 
Specifically, this proposed amendment to HUD's environmental 
regulations would require that oversight for environmental protection 
be performed consistently and collaboratively with quality management 
reviews of field offices and on-site monitoring of clients. The name 
``Office of Community Viability'' cited in the current regulations 
would be corrected to ``Office of Environment and Energy'' to reflect 
the correct institutional name of that office. The proposed rule would 
thereby conform the title of the office to that contained in the HUD 
Organizational Handbook 1100.3 REV 5, par. 5-13.
    The rule would add new provisions on waivers of environmental 
requirements. With the aim of making the compliance process more 
efficient and easier for recipients, the revision would include a 
cross-reference to 24 CFR 5.110 and a new Sec.  50.37 that states 
procedures for HUD approval of waivers from environmental regulations 
requested by a recipient.
    The proposed rule would amend 24 CFR 50.16, ``Decision points for 
policy actions.'' Specifically, a new decision point (the point at 
which an Environmental Assessment (EA) and Finding of No Significant 
Impact (FONSI) or Environmental Impact Statement (EIS) must be 
completed) would be added. The new decision point would be HUD's 
approval of a waiver of environmental regulations.
    The rule would amend Sec.  50.17 by adding a decision point for 
HUD's determination to sign a release of a Declaration of Trust or a 
release of a Declaration of Restrictive Covenants regarding public 
housing agency (PHA) property that is the subject of an eminent domain 
lawsuit. PHA public housing property that has been assisted under the 
United States Housing Act of 1937 (1937 Act), 42 U.S.C. 1437 et seq., 
is subject to a Declaration of Trust or Declaration of Restrictive 
Covenants that is recorded against the property and assures HUD that 
the property will be subject to the statutory long-term affordability 
restrictions and other HUD restrictions, including statutory 
prohibitions against disposition or demolition without HUD approval. 
When state or local agencies attempt, through eminent domain 
proceedings, to take such PHA property, HUD must determine whether to 
voluntarily release its interests in the property. This is because 
state and local courts have no jurisdiction to hear suits for 
condemnation of federal interests in property and, therefore, HUD's 
interest in PHA property may not be taken in the eminent domain 
proceedings. However, if HUD releases its interests in PHA property, 
the PHA may enter into an agreement to transfer the property to the 
state or local agency. If the PHA does not enter into such an 
agreement, then since there is no longer any federal interest in the 
property, the state or local body may obtain title either by operation 
of law or by court decree that results from the filing and prosecution 
of the eminent domain proceeding. HUD's determination to voluntarily 
release its interests in the property is not itself a project or 
activity under the 1937 Act, and the environmental review regarding 
HUD's decision to release its interests is therefore not subject to 24 
CFR part 58, but must be performed by HUD under part 50. The amendment 
to Sec.  50.17, in establishing a decision point for this 
determination, reflects the applicability of part 50 to these actions.
    Section 50.19(b)(15) of the currently codified rule provides a 
categorical exclusion for activities to assist homebuyers to purchase 
existing dwelling units or dwelling units under construction. While not 
proposing any change to this section to specifically reference 
homeownership funds, this section covers homeownership vouchers because 
this section covers ``activities to assist homebuyers to purchase 
existing dwelling units or dwelling units under construction.''
    The proposed rule would remove 24 CFR 50.19(b)(18), a provision 
dealing with ``improved area processing,'' a type of review that the 
Department no longer performs or requires.
    The statutory prohibition on the use of HUD funds in the coastal 
barrier resources system at 24 CFR 50.4(c)(1) would be referenced in 
the following provisions: (1) Tenant-based assistance (24 CFR 
50.19(b)(11)); (2) operating costs (24 CFR 50.19(b)(13)); (3) 
activities to assist homebuyers (24 CFR 50.19(b)(15)); and (4) housing 
pre-development costs. The statutory requirement to purchase and 
maintain national flood insurance protection for properties located 
within the special flood hazard area would be referenced in the 
provision for activities to assist homebuyers (24 CFR 50.19(b)(15)).
    This proposed rule would add a new categorical exclusion at 24 CFR 
50.19(b)(18), as well as at 24 CFR 58.35(b)(8), for the giving of

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compensation assistance for loss during a Presidentially declared 
disaster. Such compensation benefit is not tied to any particular use 
of the funds. However, if the approval of compensation assistance 
imposes standards for construction or construction materials, 
manufactured housing, or occupancy, with respect to a beneficiary's 
property or a property that sustained damage or loss, but without 
requiring that any construction, repair, or other activity be carried 
out, a programmatic environmental assessment must be prepared. Such 
standards may be imposed by covenant on a beneficiary's property, or on 
a property that sustained loss or damage, as a condition of receiving 
compensation assistance; however, the exclusion applies only if no 
construction, repair, or any other particular activity is required to 
be performed as a condition of receiving the compensation. This 
categorical exclusion will enable more efficient recovery efforts by 
removing administrative burdens from localities during declared 
disasters.
    The proposed rule would clarify at a new 24 CFR 50.32(b) that, for 
Headquarters-administered programs, the field office program staff 
would conduct the environmental review, unless otherwise specified by 
the program Assistant Secretary (or Headquarters program staff). In 
addition, the rule would add a new 24 CFR 50.32(c) that would encourage 
HUD program offices to voluntarily post their environmental review 
record (ERR) documents on their Web sites for public review and comment 
and for the electronic record. Also, the rule would add a new 24 CFR 
50.32(d) that would encourage HUD program offices to voluntarily use 
electronic submissions and notifications under this part. In order to 
increase Departmental electronic processing, current form HUD-4128, 
``Environmental Assessment and Compliance Findings for the Related 
Laws,'' and the accompanying ``Sample Field Notes Checklist (SFNC)'' 
will continue to be used for electronic communication and 
documentation.
    The proposed rule would add a new 24 CFR 50.37 to establish 
circumstances under which HUD may grant a waiver of regulations in 24 
CFR parts 50, 51, 55, and 58 where the standards of 24 CFR 5.110 are 
met and no unmitigated adverse environmental impact will result from a 
violation of the regulation being waived.

24 CFR Part 51

    The proposed rule would replace the obsolete reference to ``Special 
Environmental Clearance'' in 24 CFR 51.104 and 51.105 with the 
currently used term ``environmental assessment.'' The term ``Special 
Environmental Clearance'' was used historically by HUD in the 
Department's regulations implementing NEPA, 24 CFR parts 50 and 58. 
However, HUD no longer uses that term.
    For the environmental review record of responsible entities' 
consideration of noise criteria and standards under 24 CFR 
51.101(a)(2), the proposed rule at a new 24 CFR 51.101(a)(2)(i)(B) 
would encourage these entities to use, for their noise assessment, the 
HUD-recommended procedure or a comparable procedure when considering 
deviation from noise criteria and standards. The current recommended 
procedure is provided in the publication ``Noise Guidebook,'' which is 
available on HUD's environmental Web site at: http://www.hud.gov/offices/cpd/energyenviron/environment/resources/guidebooks/noise/index.cfm.
    HUD recognizes that the Federal Highway Administration (FHWA) 
Traffic Noise Model[supreg] (TNM) noise analysis tool for highway noise 
is a useful methodology that may potentially have applicability to 
noise analysis for HUD-assisted projects. Toward that end and with the 
intent of modernizing HUD's noise analysis guidelines, the Department 
in partnership with FHWA has agreed to obtain special acoustical 
analysis and expertise from the DOT Volpe National Transportation 
Systems Center to determine how the FHWA TNM and HUD noise analysis 
guidelines may be adjusted to meet HUD's regulatory noise requirements 
(24 CFR part 51, subpart B).
    Because the term ``Runway Protection Zone'' is now used on maps 
issued by the Federal Aviation Administration (FAA) for civil airports, 
the proposed rule would replace in 24 CFR part 51, subpart D, the term 
``Runway Clear Zone'' at civil airports with the term ``Runway 
Protection Zone.'' The technical change would conform to the use of the 
term ``Runway Protection Zones''(RPZ) for civil airports established by 
FAA Advisory Circular for Airport Design, AC 150/5300-13, CHG 2, page 
140 (02/24/92). This rule would adopt the definition used in that 
Circular, and would adopt a separate definition of ``clear zone'' for 
military airfields used in Department of Defense regulations at 32 CFR 
256.3.

24 CFR Part 55

    The proposed rule would revise the definition of ``substantial 
improvement'' at 24 CFR 55.2(b)(8)(ii)(B) by adding to the current 
exclusion for historic properties any property eligible to be listed in 
the National Register of Historic Places (NRHP), provided that the 
alteration of the structure would not preclude the structure's 
continued designation as a historic structure. This exclusion would 
conform to the exclusion contained in the definition of ``substantial 
improvement'' for the National Flood Insurance Program (44 CFR 59.1). 
The revision would provide consistency with the definition of historic 
property under Section 106 of the National Historic Preservation Act as 
a property listed in or eligible for listing in the NRHP.
    HUD's experience has shown that combining public notices adds to 
greater efficiency, and that more specific guidance in this area is 
necessary. The proposed rule would clarify the provision on combining 
environmental notices at 24 CFR 55.10(a), with cross-references to 
further explanatory provisions at new subparagraphs 55.20(b)(4) and 
55.20(g)(3). The purpose of this change is to provide regulatory 
guidance on environmental notices that are suitable to be combined.
    The proposed rule would extend 24 CFR 55.12(a)(3) to apply to any 
HUD program involving the repair, rehabilitation, modernization, or 
improvement of existing multifamily housing projects. The current 
provision applies only to HUD mortgage insurance programs. The section 
will also clarify that proposed actions that are ``substantial 
improvements'' are, similar to new construction, subject to the full 
decision-making process at Sec.  55.20.
    The proposed rule would add an exclusion to 24 CFR 55.12(b)(5) for 
special projects directed to the removal of architectural barriers of 
properties located within floodplains. It would also revise 24 CFR 
55.12(b)(2) to exempt minor repairs or improvements that are 
categorically excluded from environmental assessment under NEPA.
    The proposed rule would expand the current exclusion at 24 CFR 
55.12(c)(1) to include the categorical exclusions listed at 24 CFR 
58.35(b) and 24 CFR 50.19. The exclusions listed generally cover ``soft 
costs'' having no potential effects on the floodplain and, therefore, 
do not warrant floodplain management compliance with part 55. This 
amendment would merely conform the exclusion in 24 CFR part 55 to the 
exclusions in 24 CFR 58.35(b) and 50.19, which already indicate the 
inapplicability of related authorities, including Executive Order 11988 
on Floodplain Management, as implemented by 24 CFR part 55.
    The proposed rule would remove the obsolete provisions of 24 CFR

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55.12(c)(9) and (c)(10). As to Sec.  55.12(c)(9), HUD terminated 
subdivision processing and approval in a final rule published on August 
3, 1993 (58 FR 41328). The reciprocity provision of subparagraph (c)(9) 
has not been used since that time. Section 55.12(c)(10) relates to the 
effect of part 55 on actions pending on May 23, 1994, the effective 
date of the final rule published on April 21, 1994, at 59 FR 19100. 
This provision is no longer necessary.
    The proposed rule would revise 24 CFR 55.20 to provide guidance on 
combining certain legal notices related to floodplains to increase the 
efficiency of environmental reviews and eliminate confusion regarding 
which notices can be combined. Accordingly, this proposed rule would 
add a new subparagraph 55.20(b)(4) to provide rules for combining the 
floodplain management notice with the EIS or notice of availability of 
a draft EIS. A new subparagraph 55.20(g)(3) would provide guidance on 
combining the floodplain management notice with either the notice of 
availability of a final EIS or with the notice of FONSI. The floodplain 
management notice explains to the public the determination that there 
are no practicable alternatives to locating the proposal in the 
floodplain.

24 CFR Part 58

    The proposed rule would remove the word ``pilot'' from 24 CFR 
58.1(b)(8). The housing finance agency risk-sharing program is now 
authorized as a regular HUD program at 24 CFR part 266, rather than as 
a pilot project.
    The proposed rule at 24 CFR 58.2(a)(4) would clarify the definition 
of ``project'' for the purpose of compliance with limitations on 
actions during the NEPA or environmental clearance process as required 
by Council on Environmental Quality (CEQ) procedures (40 CFR 1506.1 and 
1502.2(f)) and HUD regulations (24 CFR 58.22). NAHASDA, the Native 
American Housing Assistance and Self-Determination Act, would be added 
to the list of abbreviations at paragraph (b) of this section. The 
abbreviation RROF would be corrected to read RROF/C, when referring to 
a Request for Release of Funds and Certification.
    The proposed rule would add the same clarification of flood 
insurance self-insurance that appears in proposed Sec.  50.4(b)(1). 
Accordingly, the rule proposes to add a new Sec.  58.6(a)(4) that 
contains the same clarification; that flood insurance requirements 
generally must be fulfilled by the purchase of insurance rather than 
self-insurance, except as authorized by law for assistance to state-
owned projects within states approved by the Director of FEMA.
    The proposed rule would clarify the provision on certifying 
officers at 24 CFR 58.13. The term ``certifying officer (CO)'' has been 
interpreted to mean the ``chief elected official'' of the government 
(local, tribal, or state). The change would remove any question 
regarding those cases where the ``chief elected official'' or the 
legislative body of the responsible entity (RE) authorizes a substitute 
official provided that the substitute official has authority to provide 
consent on behalf of the RE to federal court jurisdiction and to bind 
the RE financially if there is a judgment in the performance of 
environmental responsibilities under this part. As required by NAHASDA 
(25 U.S.C. 4226), the rule would designate the Director of the 
Department of Hawaiian Home Lands as the certifying officer for the 
program of housing assistance for Native Hawaiians under NAHASDA.
    The proposed rule would amend guidance on tiering of environmental 
reviews and assessments at 24 CFR 58.15 to emphasize the limitation on 
activities pending environmental clearance. The limitation applies, for 
example, in the case of multiyear funding cycles where recipients 
select sites only after the recipient has received an approval of the 
environmental certification and request for release of funds. The 
commitment or expenditure of funds would not be allowed for activities 
that constitute a development decision (including acquisition and 
disposition of real estate) that affects the physical condition of 
specific project areas or building sites, until the responsible entity 
has completed its site-specific analysis and compliance with this part 
and documented its environmental review record (24 CFR 58.38). At any 
time, the recipient may commit or expend funds for exempt activities 
documented, in accordance with 24 CFR 58.34(b) and categorically 
excluded activities under 24 CFR 58.35(b).
    Section 58.35(b)( 5) of the currently codified rule provides a 
categorical exclusion for activities to assist homebuyers to purchase 
existing dwelling units or dwelling units under construction.
    Proposed 24 CFR 58.19 would complement proposed 24 CFR 50.37 by 
providing procedures for granting a waiver of part 58 regulations in 
cases of violations of environmental regulations where there is good 
cause to grant the waiver and where no unmitigated environmental harm 
will result. This section does not apply to statutory waivers under 
NAHASDA, for which HUD will propose a regulation in the future after 
negotiated rulemaking pursuant to NAHASDA's requirements (see 25 U.S.C. 
4116(b)(2)) on that and other issues.
    In cases where a project is assisted with funds under two or more 
programs that each require an RROF/C, the revision to the second 
sentence of 24 CFR 58.22(a) would allow a recipient or other 
participant in the development process to commit non-HUD funds on or to 
undertake an activity or project once the first RROF/C has been 
approved. This technical correction would remove the current limitation 
on commitment of funds and facilitate use of the categorical exclusion 
under Section 58.35(b)(7) discussed in the next paragraph.
    In cases where the scope of the original project and environmental 
conditions remain unchanged and the Section 58.47 reevaluation of the 
project is determined to be unnecessary, the proposed rule would revise 
24 CFR 58.35(b)(7) to permit flexibility when adding supplemental 
funding to a previously environmentally approved project irrespective 
of the source of the supplemental funding. This provision would be made 
to conform with HUD's long-held policy at 24 CFR 50.36, which states 
that a change only in the amount of financing or mortgage insurance 
involved does not normally require the environmental review to be re-
evaluated or updated.
    This proposed rule would add a new 24 CFR 58.38(c) to encourage the 
responsible entity to manage and post the Environmental Review Record 
(ERR) on its Web site. The posting should include information on where 
and how any relevant ERR non-electronic records are made available for 
public review and copying, and the name and telephone number of a point 
of contact that is to receive public inquiries for assistance and 
comment.
    The proposed rule would add a new 24 CFR 58.38(d) to encourage the 
voluntary use of electronic submissions and notifications under this 
part, including existing environmental forms (or narrative letters).
    The proposed rule would include in the last sentence of 24 CFR 
58.43(c) a reference to locally declared emergencies. The provision for 
locally declared emergencies was added on September 29, 2003 (68 FR 
56129) by revising 24 CFR 58.33(b). The proposed amendment to 24 CFR 
58.43(c) would make this section consistent with 24 CFR 58.33(b) by 
including the provision for locally declared emergencies.
    Finally, the proposed rule would correct and update legal citations 
in part

[[Page 52268]]

58. In Sec.  58.1(b)(8), the citation would be updated, from a note to 
12 U.S.C. 1707, to 12 U.S.C. 1715z-22(c)(9). In Sec.  58.5(a)(1), the 
citation to 16 U.S.C. 470 would be restated as 16 U.S.C. 470f.

24 CFR Part 91

    The proposed rule would amend the citizen participation and 
consultation provision for the jurisdiction's consolidated plan. The 
rule would encourage jurisdictions to consult with non-profit and for-
profit organizations and PHAs that receive HUD grant awards, in order 
to facilitate compliance with environmental review requirements for 
housing and community development projects within the jurisdiction. As 
a service to these entities, jurisdictions would be authorized to 
perform the environmental review as responsible entities under 24 CFR 
part 58. Where jurisdictions require reimbursement of costs, 
remuneration for environmental review services rendered by 
jurisdictions may be available from the recipient's HUD program grant, 
in accordance with 24 CFR 58.23.

III. Findings and Certifications

Paperwork Reduction Act

    With one exception, the information collection requirements in this 
proposed rule have been approved by OMB under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520) (PRA) and assigned OMB control number 
2506-0087.
    The additional information collection requirements contained in 
this rule have been submitted to OMB under the PRA. In accordance with 
the PRA, an agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information, unless the 
collection displays a currently valid OMB control number.
    The burden of the information collections in this proposed rule is 
estimated as follows:

                                       Reporting and Recordkeeping Burden
----------------------------------------------------------------------------------------------------------------
                                     Number of                         Total         Hours per
              Item                  respondents      Frequency       responses       response       Total hours
----------------------------------------------------------------------------------------------------------------
Form HUD 7015.15................          18,785               1          18,785             0.6          11,271
Waiver Requests.................               6               1               6             2.0              12
                                 -------------------------------------------------------------------------------
    Totals......................          18,791               2          18,791             2.6          11,283
----------------------------------------------------------------------------------------------------------------

    In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments 
from members of the public and affected agencies concerning this 
collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond including through the use of appropriate automated 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses.
    OMB and HUD invite interested persons to submit comments regarding 
the information collection requirements in this rule. Under the 
provisions of 5 CFR part 1320, OMB is required to make a decision 
concerning this collection of information between 30 and 60 days after 
today's publication date. Therefore, a comment on the information 
collection requirements is best assured of having its full effect if 
OMB receives the comment within 30 days of today's publication. This 
time frame does not affect the deadline for comments to OMB and HUD on 
the proposed rule, however. Comments must refer to the proposal by name 
and docket number (FR-4954) and must be sent to:

OMB Desk Officer, Office of Management and Budget, Room 10235, New 
Executive Office Building, Washington, DC 20503, Fax number (202) 395-
6947; and
Marie Young, Office of Community Planning and Development, Room 7251, 
U.S. Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410.

Regulatory Planning and Review

    OMB reviewed this rule under Executive Order 12866, Regulatory 
Planning and Review. OMB determined that this rule is a ``significant 
regulatory action,'' as defined in section 3(f) of the order (although 
not an economically significant regulatory action under the order). The 
docket file is available for public inspection in the Regulations 
Division, Office of General Counsel, 451 Seventh Street, SW., Room 
10276, Washington, DC 20410-0500. Due to security measures at the HUD 
Headquarters building, please schedule an appointment to review the 
docket file by calling the Regulations Divisions at (202) 708-3055 
(this is not a toll-free number).

Environmental Impact

    A Finding of No Significant Impact (FONSI) with respect to the 
environment for this rule 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 (42 U.S.C. 4332(2)(C)). The 
Finding of No Significant Impact is available for public inspection 
between 8 a.m. and 5 p.m. weekdays in the Office of Regulations, Office 
of General Counsel, 451 Seventh Street, SW., Room 10276, Washington, DC 
20410-0500. Due to security measures at the HUD Headquarters building, 
please schedule an appointment to review the FONSI by calling the 
Regulations Division at (202) 402-3055 (this is not a toll-free 
number).

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
(UMRA) establishes requirements for federal agencies to assess the 
effects of their regulatory actions on state, local, and tribal 
governments and on the private sector. This rule does not impose a 
federal mandate on any state, local, or tribal government, or on the 
private sector, within the meaning of UMRA.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities.
    In developing the proposed rule, HUD has attempted to minimize the 
regulatory burden placed on responsible

[[Page 52269]]

entities and other recipients when complying with environmental 
procedures. The proposed rule would encourage, but not require, 
electronic submission and electronic notification of environmental 
documents. A major objective is to achieve efficiencies through the 
more rapid transmission and processing of environmental clearances of 
HUD financial assistance, including certifications and requests for 
release of funds. The rule would add some exclusions from environmental 
procedures. The rule would remove a current limitation and thereby 
improve the use of simplified procedures for subsequent supplementary 
assistance for a previously approved project, where one or more 
responsible entities other than the original responsible entity wish to 
provide the additional funding. The rule would make a number of 
corrections and remove obsolete references, thereby eliminating unclear 
and/or inconsistent texts. The rule proposes to authorize the use of 
the abbreviated process for floodplain management decision-making for 
all of HUD's rehabilitation programs. The current regulations limit the 
use of the abbreviated decision-making process to repairs financed 
under HUD's mortgage insurance programs.
    Therefore, the undersigned certifies that this proposed rule will 
not have a significant economic impact on a substantial number of small 
entities, and that an initial regulatory flexibility analysis is not 
required.
    Notwithstanding the determination that this rule would not have a 
significant economic impact on a substantial number of small entities, 
HUD specifically invites comments regarding less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in this preamble.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications, if the rule 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This rule does not have federalism 
implications and does not impose substantial direct compliance costs on 
state and local governments nor preempts state law within the meaning 
of the Executive Order.

List of Subjects

24 CFR Part 50

    Environmental impact statements, Environmental protection, 
Environmental policies and review procedures, Multifamily housing 
programs, Grant programs for housing and community development, 
Reporting and recordkeeping requirements.

24 CFR Part 51

    Environmental standards, Noise abatement and control.

24 CFR Part 55

    Floodplains, Reporting and recordkeeping requirements.

24 CFR Part 58

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

24 CFR Part 91

    Grant programs--housing and community development, Low- and 
moderate-income housing, Reporting and recordkeeping requirements.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers for the programs 
in this rule are: 14.103-14.906.
    Accordingly, for the reasons described in the preamble, HUD 
proposes to amend 24 CFR parts 50, 51, 55, 58, and 91 to read as 
follows:

PART 50--PROTECTION AND ENHANCEMENT OF ENVIRONMENTAL QUALITY

    1. The authority citation for 24 CFR part 50 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 4332; and Executive Order 
11991, 3 CFR, 1977 Comp., p. 123.

Subpart A--General: Federal Laws and Authorities

    2. Amend Sec.  50.2(b) by adding the following definition of 
``NAHASDA'' in proper alphabetical order to read as follows:


Sec.  50.2  Terms and abbreviations.

* * * * *
    (b) * * *
    NAHASDA--Native American Housing Assistance and Self-Determination 
Act.
* * * * *

Subpart B--General Policy: Responsibilities and Program Coverage

    3. Revise Sec.  50.4(b)(1) to read as follows:


Sec.  50.4  Related federal laws and authorities.

* * * * *
    (b) Flood insurance, floodplain management, and wetland protection. 
(1) Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128) and the 
National Flood Insurance Reform Act of 1994 (Pub. L. 103-325, 108 Stat. 
2160). Flood insurance requirements, however, cannot be fulfilled by 
self-insurance except as authorized by law for assistance to state-
owned projects within states approved by the director of FEMA.
* * * * *
    4. Revise Sec.  50.10(b) to read as follows:


Sec.  50.10  Basic environmental responsibility.

* * * * *
    (b) The Assistant Secretary for Community Planning and Development 
(A/S CPD), represented by the Office of Environment and Energy, whose 
Director shall serve as the Departmental Environmental Clearance 
Officer (DECO), is assigned the overall Departmental responsibility for 
environmental policies and procedures for compliance with NEPA and the 
related laws and authorities. Furthermore, the A/S CPD, represented by 
the DECO, is responsible for Departmental oversight to ensure HUD 
programs are carried out in compliance with NEPA and the related laws 
and authorities. To coordinate environmental oversight with the quality 
management reviews of field offices and on-site monitoring of clients, 
managers of the various HUD program offices undertaking such activities 
shall invite the DECO or his designee to participate in such 
activities. To the extent permitted by applicable laws and the Council 
for Environmental Quality (CEQ) regulations at 40 CFR chapter V, the A/
S CPD may approve waivers and exceptions or establish criteria for 
exceptions from the requirements of this part and 24 CFR parts 51, 55, 
and 58, including waivers of regulations, in accordance with Sec. Sec.  
5.110 and 50.37 of this chapter.

Subpart C--General Policy: Decision Points

    5. Revise Sec.  50.16 to read as follows:


Sec.  50.16  Decision points for policy actions.

    Either an Environmental Assessment (EA) and Finding of No 
Significant

[[Page 52270]]

Impact (FONSI) or an Environmental Impact Statement (EIS) on all policy 
actions not meeting the criteria of Sec.  50.19 shall be completed 
prior to the approval action. Policy actions include all proposed 
Federal Register policy documents and other policy-related federal 
actions (40 CFR 1508.18). Such actions include approvals of waivers 
from environmental regulations. The decision as to whether a proposed 
policy action is categorically excluded from an EA shall be made by the 
Program Environmental Clearance Officer (PECO) in Headquarters as early 
as possible. Where the PECO has any doubt as to whether a proposed 
action qualifies for exclusion, the PECO shall request a determination 
by the A/S CPD. The EA and FONSI may be combined into a single 
document.
    6. In Sec.  50.17 redesignate paragraph (h) as paragraph (i) and 
add a new paragraph (h) to read as follows:


Sec.  50.17  Decision points for projects.

* * * * *
    (h) HUD execution of release. HUD's determination to execute a 
release of a Declaration of Trust, a release of a Declaration of 
Restrictive Covenants, or both, in order to release HUD's interests in 
public housing agency property that is the subject of an eminent domain 
action.
* * * * *

Subpart D--General Policy: Environmental Review Procedures

    7. Amend Sec.  50.19 by revising paragraphs (b)(11), (b)(13), 
(b)(15), (b)(16), and (b)(18), to read as follows:


Sec.  50.19  Categorical exclusions not subject to the federal laws and 
authorities cited in Sec.  50.4.

* * * * *
    (b) * * *
    (11) Tenant-based rental assistance; however, compliance with 24 
CFR 50.4(c)(1) is required.
* * * * *
    (13) Operating costs including maintenance, security, operation, 
utilities, furnishings, equipment, supplies, staff training, 
recruitment, and other incidental costs; however, compliance with 24 
CFR 50.4(c)(1) is required and in the case of equipment, compliance 
with 24 CFR 50.4(b)(1) is required.
* * * * *
    (15) Activities to assist homebuyers to purchase existing dwelling 
units or dwelling units under construction, including closing costs and 
downpayment assistance, interest buydowns, and similar activities that 
result in the transfer of title; however, compliance with 24 CFR 
50.4(b)(1) and (c)(1) is required.
    (16) Housing pre-development costs including legal, consulting, 
developer, other costs related to site options, project financing, 
administrative costs and fees for loan commitments, zoning approvals, 
and other related activities that do not have a physical impact; 
however, compliance with 24 CFR 50.4(c)(1) is required.
* * * * *
    (18) Giving of compensation assistance for loss during a 
Presidentially declared disaster only when that compensation benefit is 
not tied to any particular use of the funds. However, if the approval 
of compensation assistance imposes standards for construction or 
construction materials, manufactured housing, or occupancy, with 
respect to a beneficiary's property or a property that sustained damage 
or loss, but without requiring that any construction, repair, or other 
activity be carried out, a programmatic environmental assessment must 
be prepared. Such standards may be imposed by covenant on a 
beneficiary's property, or on a property that sustained loss or damage, 
as a condition of receiving compensation assistance; however, the 
exclusion applies only if no construction, repair, or any other 
particular activity is required to be performed as a condition of 
receiving the compensation.
* * * * *

Subpart E--Environmental Assessments and Related Reviews

    8. In Sec.  50.32 redesignate the current undesignated paragraph as 
(a) and add new paragraphs (b), (c), and (d) to read as follows:


Sec.  50.32  Responsibility for environmental processing.

* * * * *
    (b) Applications Received by Headquarters Offices. The field office 
program staff is responsible for the performance of the environmental 
review under this part for HUD assistance administered by Headquarters 
program staff who are primarily responsible for receiving, evaluating, 
and recommending to their Assistant Secretary the approval of 
applications made by applicants directly to HUD Headquarters Offices. 
The approving official in the HUD field office shall comply with Sec.  
50.11 and, in addition, assure (unless Headquarters program procedures 
do not require) that the form HUD-4128 and Sample Field Notice 
Checklist (SFNC) are immediately forwarded by e-mail or fax to the 
Headquarters program office responsible for administering the program. 
In addition, the approving official in the HUD field office may post 
these documents on the Web site of the HUD field office serving the 
area in which the project is located.
    (c) Posting on Web site. HUD program offices are encouraged to 
voluntarily post their environmental review record (ERR) documents on 
their Web sites for public review and comment and for the electronic 
record. If the ERR includes non-electronic records for the project, the 
posting on the Web site should indicate where and when such records are 
available for public review and copying. In either case, the Web site 
posting should indicate the name, phone number, and e-mail address of 
the point of contact that is to receive public inquiries for assistance 
or comment.
    (d) Electronic submissions and notifications. HUD encourages the 
voluntary use of electronic submissions and notifications under this 
part. Current form HUD-4128, Environmental Assessment and Compliance 
Findings for the Related Laws, and the accompanying SFNC, will be used 
for electronic communication and documentation according to the 
following procedures:
    (1) Field office staff preparing form HUD-4128 and the SFNC 
electronically must use the electronically fillable forms in the 
Portable Document Format (PDF) available on HUDclips.
    (2) For electronic submission, the form must be accessed, filled 
in, saved, and e-mailed using a HUD office computer system accessed via 
security protocols designed to restrict access to only authorized 
users. A user name and password authentication system will suffice for 
this purpose.
    (3) The appropriate Headquarters officials must at all times be 
informed of the field office personnel authorized to submit the form 
HUD-4128 and accompanying SFNC electronically and the e-mail addresses 
of those personnel. Completed forms must be e-mailed from the 
authorized work address by the authorized personnel, using their HUD e-
mail account, and submitted under their correct user name.
    (4) HUD will maintain the electronic version of the forms HUD-4128 
and the accompanying SFNC with all associated information in a manner 
accessible to the public, to the same extent as if they were non-
electronic forms. HUD will retain these records for the same length of 
time and with the same degree of

[[Page 52271]]

accessibility as it does for non-electronic forms.
    9. Add Sec.  50.37 to subpart E to read as follows:


Sec.  50.37  Waivers.

    Regulatory waivers. The HUD Assistant Secretary for Community 
Planning and Development (A/S CPD) may grant a waiver of regulations in 
24 CFR parts 50, 51, 55, and 58 using the same standards that apply to 
waivers granted under 24 CFR 5.110 and where no unmitigated adverse 
environmental impact has resulted or will result from a violation of 
the regulation being waived. Waiver applicants must state the following 
in writing: The regulation involved; all relevant facts; a chronology 
of events; whether a violation has occurred or will occur; and any 
other pertinent facts about the requirement proposed for waiver. 
Applicants must provide evidence that good cause exists to justify the 
extraordinary action of granting a waiver. The submission must be 
addressed to the appropriate Program Director in the HUD field office 
serving the area within which the project is located, or to the 
Administrator in the Area Office of Native American Programs for the 
area. In addition, waiver applicants must supply HUD with all 
available, relevant information necessary for HUD to perform for each 
property any environmental review required by this part. In the case of 
violations under 24 CFR part 58, see Sec.  58.19.

 PART 51--ENVIRONMENTAL CRITERIA AND STANDARDS

    10. The authority citation for 24 CFR part 51 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d), unless otherwise noted.

Subpart B--Noise Abatement and Control

    11. In Sec.  51.101 redesignate paragraph (a)(2)(ii) as paragraph 
(a)(2)(iii) and add a new paragraph (a)(2)(ii) to read as follows:


Sec.  51.101  General policy.

    (a) * * *
    (2) * * *
    (ii) For the environmental review record, responsible entities are 
encouraged to use for their noise assessment the current HUD 
recommended procedure or a comparable procedure when considering 
deviation from noise criteria and standards.
* * * * *
    12. In Sec.  51.104, revise paragraphs (b)(1)(i) and (b)(1)(iii) to 
read as follows:


Sec.  51.104  Special Requirements.

* * * * *
    (b) * * *
    (1) Normally unacceptable noise zone. (i) All projects located in 
the Normally Unacceptable Noise Zone require an environmental 
assessment (EA), except that an EIS is required for a proposed project 
located in a largely undeveloped area, or where the HUD action is 
likely to encourage the establishment of incompatible land use(s) in 
this noise zone.
* * * * *
    (iii) All other projects in the Normally Unacceptable Zone require 
an environmental assessment (EA), except where an EIS is required for 
other reasons pursuant to HUD environmental policies.
* * * * *
    13. Revise Sec.  51.105(a)(2) to read as follows:


Sec.  51.105  Exceptions.

    (a) * * *
    (2) The project has undergone an environmental assessment (EA) and 
has received the concurrence of the Environmental Clearance Officer.
* * * * *
    14. Revise the heading of Subpart D to read as follows:

Subpart D--Siting of HUD-Assisted Projects in Runway Protection 
Zones at Civil Airports and Clear Zones and Accident Potential 
Zones at Military Airfields

    15. Revise Sec.  51.300 to read as follows:


Sec.  51.300  Purpose.

    It is the purpose of this subpart to promote compatible land uses 
around civil airports and military airfields by identifying suitable 
land uses for Runway Protection Zones at civil airports and Clear Zones 
and Accident Potential Zones at military airfields and by establishing 
them as standards for providing HUD assistance, subsidy, or insurance.
    16. Amend 24 CFR 51.301 as follows:
    a. Redesignate current paragraph (d) as paragraph (e) and revise 
the newly redesignated paragraph (e); and
    b. Add a new paragraph (d) to read as follows:


Sec.  51.301  Definitions.

* * * * *
    (d) Clear Zone. The area immediately beyond the end of a runway, 
which possesses a high potential for accidents, and has traditionally 
been acquired by the Government in fee and kept clear of obstructions 
to flight. The standards for Clear Zones for military airfields are 
established by DOD Instruction 4165.57, 32 CFR part 256.
    (e) Runway Protection Zone. An area off the runway end to enhance 
the protection of people and property on the ground. The standards for 
Runway Protection Zones for civil airports are established by FAA 
regulations at 14 CFR part 152 and FAA Advisory Circular 150/5300-13.
    17. In Sec.  51.303, revise the introductory text of paragraph (a) 
and paragraphs (a)(2) and (a)(3) to read as follows:


Sec.  51.303  General Policy.

* * * * *
    (a) HUD policy for actions in Runway Protection Zones and Clear 
Zones.
* * * * *
    (2) If a project proposed for HUD assistance, subsidy, or insurance 
is one that will not be frequently used or occupied by people, HUD 
policy is to provide assistance, subsidy, or insurance only when 
written assurances are provided to HUD by the airport operator to the 
effect that there are no plans to purchase the land involved with such 
facilities as part of a Runway Protection Zone or Clear Zone 
acquisition program.
    (3) Special notification requirements for Runway Protection Zones 
and Clear Zones. In all cases involving HUD assistance, subsidy, or 
insurance for the purchase or sale of an existing property in a Runway 
Protection Zone or Clear Zone, HUD (or the responsible entity or 
recipient under 24 CFR part 58) shall advise the buyer that the 
property is in a Runway Protection Zone or Clear Zone, what the 
implications of such a location are, and that there is a possibility 
that the property may, at a later date, be acquired by the airport 
operator. The buyer must sign a statement acknowledging receipt of this 
information.
* * * * *
    18. Revise Sec.  51.304(b) to read as follows:


Sec.  51.304  Responsibilities.

* * * * *
    (b) The following persons have the authority to approve actions in 
Runway Protection Zones and Clear Zones:
    (1) For programs subject to environmental review under 24 CFR part 
58: The Certifying Officer of the responsible entity as defined in 24 
CFR part 58.
    (2) For all other HUD programs: The Program Assistant Secretary.
    19. In Sec.  51.305, revise paragraphs (b), (c), and (d) to read as 
follows:

[[Page 52272]]

Sec.  51.305  Implementation.

* * * * *
    (b) Acceptable data on Runway Protection Zones, Clear Zones, and 
Accident Potential Zones. The only Runway Protection Zones, Clear 
Zones, and Accident Potential Zones that will be recognized in applying 
this part are those provided by the airport operators and which for 
civil airports are defined in accordance with FAA regulations 14 CFR 
part 152 or, for military airfields, DOD Instruction 4165.57, 32 CFR 
part 256. All data, including changes, related to the dimensions of 
Runway Protection Zones for civil airports shall be verified with the 
nearest FAA Airports District Office before use by HUD.
    (c) Changes in Runway Protection Zones, Clear Zones, and Accident 
Potential Zones. If changes in the Runway Protection Zones, Clear 
Zones, or Accident Potential Zones are made, the field offices shall 
immediately adopt these revised zones for use in reviewing proposed 
projects.
    (d) The decision to approve projects in the Runway Protection 
Zones, Clear Zones, and Accident Potential Zones must be documented as 
part of the environmental assessment or, when no assessment is 
required, as part of the project file.

PART 55--FLOODPLAIN MANAGEMENT

    20. The authority citation for 24 CFR part 55 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d) and 4001-4128; E.O. 11988, 42 FR 
26951, 3 CFR, 1977 Comp., p. 117.

Subpart A--General

    21. Revise Sec.  55.2(b)(8)(ii)(B) to read as follows:


Sec.  55.2  Terminology.

* * * * *
    (b) * * *
    (8) * * *
    (ii) * * *
    (B) Any alteration of a structure that is either listed on or 
eligible to be listed on the National Register of Historic Places, 
provided that the alteration will not preclude the structure's 
continued designation as a historic structure.
* * * * *

Subpart B--Application of Executive Order on Floodplain Management

    22. Amend Sec.  55.10 by adding a new sentence at the end of 
paragraph (a) to read as follows:


Sec.  55.10  Environmental Review procedures under 24 CFR parts 50 and 
58.

    (a) * * * HUD encourages combining floodplain management notices 
and processes with other environmental notices and processes, and 
provides guidance on combining such notices at Sec. Sec.  55.20(b)(4) 
and 55.20(g)(3).
* * * * *
    23. Amend Sec.  55.12 as follows:
    (a) Revise paragraph (a)(3);
    (b) Revise paragraph (b)(2);
    (c) Add a new paragraph (b)(5);
    (d) Revise the introductory text of paragraph (c) and paragraph 
(c)(1);
    (e) Remove paragraphs (c)(9) and (c)(10) and redesignate paragraphs 
(c)(11) and (c)(12) as paragraphs (c)(9) and (c)(10), respectively, to 
read as follows:


Sec.  55.12  Inapplicability of 24 CFR part 55 to certain categories of 
proposed actions.

    (a) * * *
    (3) Actions under any HUD program involving the repair, 
rehabilitation, modernization, or improvement of existing multifamily 
housing projects (including nursing homes, board and care facilities, 
and intermediate care facilities) and existing one-to-four family 
properties, in communities that are in the Regular Program of the NFIP 
and are in good standing, provided that the number of units is not 
increased more than 20 percent, that the action does not involve a 
conversion from nonresidential to residential land use, and that the 
footprint of the structure and paved areas is not significantly 
increased. Proposed actions that meet the threshold of ``substantial 
improvement'' are subject to the full decision-making process at Sec.  
55.20.
    (b) * * *
    (2) Financial assistance for minor repairs or improvements on one- 
to four-family properties that do not meet the thresholds for 
``substantial improvement'' under Sec.  55.2(b)(8) and are 
categorically excluded from an environmental assessment under 
Sec. Sec.  50.20(a)(2)(i) and 58.35(a)(3)(i) of this chapter;
* * * * *
    (5) Special projects directed to the removal of material and 
architectural barriers that restrict the mobility of and accessibility 
to elderly persons and persons with disabilities.
    (c) This part shall not apply to the following categories of 
proposed actions:
    (1) HUD-assisted activities described in 24 CFR 58.34, 24 CFR 
58.35(b), and 24 CFR 50.19;
* * * * *

Subpart C--Procedures for Making Determinations on Floodplain 
Management

    24. Amend Sec.  55.20 by adding new paragraphs (b)(4) and (g)(3) to 
read as follows:


Sec.  55.20  Decision-making process.

* * * * *
    (b) * * *
    (4) The floodplain management notice at paragraph (b) of this 
section may be combined with either the notice of intent to prepare an 
environmental impact statement (EIS), or the notice of availability for 
public comment of the draft EIS where applicable, but in either case 
the combined notice text must comply with requirements of paragraphs 
(b)(1) through (3) of this section. The title of the combined notice 
for public comment also must include the words ``compliance with 
Executive Order 11988, Floodplain Management.'' In addition, the 
floodplain management notice at paragraph (b) of this section may be 
published separately but contemporaneously with a notice of intent to 
prepare an EIS or a notice of availability for public comment of a 
draft EIS. All comments received must be responded to in writing prior 
to taking any approval action. Comments received and copies of written 
responses are to be maintained in the environmental review record.
* * * * *
    (g) * * *
    (3) The floodplain management notice at paragraph (g) of this 
section may be combined either with the notice of availability for 
public comment of the final EIS or the notice of finding of no 
significant impact to the environment (FONSI), where applicable, but in 
either case the combined notice text must comply with the requirements 
of paragraphs (g)(1) through (3) of this section. The title of the 
combined notice for public comment also must include the words 
``compliance with Executive Order 11988, Floodplain Management.'' In 
addition, the floodplain management notice at paragraph (g) of this 
section may be published separately but contemporaneously with the 
notice of FONSI or the notice of availability for public comment of a 
final EIS for public comment. All comments received must be responded 
to in writing prior to taking any approval action. Comments received 
and copies of written responses are to be maintained in the 
environmental review record.
* * * * *

[[Page 52273]]

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

    25. The authority citation for 24 CFR part 58 continues to read as 
follows:

    Authority: 12 U.S.C. 1707 note, 1715z-13a(k); 25 U.S.C. 4115 and 
4226; 42 U.S.C. 1437x, 3535(d), 3547, 4332, 4852, 5304(g), 11402, 
12838, and 12905(h); title II of Pub. L. 105-276; E.O. 11514 as 
amended by E.O 11991, 3 CFR 1977 Comp., p. 123.

Subpart A--Purpose, Legal Authority, Federal Laws and Authorities

    26. Revise Sec.  58.1(b)(8) to read as follows:


Sec.  58.1  Purpose and applicability.

* * * * *
    (b) * * *
    (8) The FHA Multifamily Housing Finance Agency Program under 
section 542(c) of the Housing and Community Development Act of 1992, in 
accordance with section 542(c)(9) (12 U.S.C. 1715z-22(c)(9));
* * * * *
    27. Amend 24 CFR 58.2 by:
    (a) Revising paragraph (a)(4);
    (b) Redesignating paragraphs (b)(10) through (b)(15) as paragraphs 
(b)(11) through (b)(16), respectively;
    (c) Adding a new paragraph (b)(10); and
    (d) Revising newly redesignated paragraph (b)(16) to read as 
follows:


Sec.  58.2  Terms, abbreviations, and definitions.

    (a) * * *
    (4) Project means an activity or a group of integrally related 
activities designed by the recipient to accomplish, in whole or in 
part, a specific objective. The date on which a project becomes subject 
to the limitations on project actions under this part is: the date of 
receipt by HUD or a responsible entity of a proponent's proposal or 
application for federal assistance for identified property proposed for 
acquisition, disposition, rehabilitation, conversion, leasing, repair 
or construction, or any combination; or in the absence of such an 
application, the initial indication of the recipient's approval of a 
specific site for assistance under the program. For HUD congressional 
special purpose grants, it is the date the President signs into law the 
appropriation bill containing the grant. If there is any question, 
consult the Assistant Secretary for Community Planning and Development. 
Limitations on project actions during the NEPA or environmental 
clearance process are required by CEQ regulations (40 CFR 1506.1 and 
1502.2(f)) and 24 CFR 58.22.
* * * * *
    (b) * * *
    (10) NAHASDA--Native American Housing Assistance and Self-
Determination Act of 1996, as amended;
* * * * *
    (16) RROF/C--Request for Release of Funds and Certification.
    28. Revise Sec.  58.5(a)(1) to read as follows:


Sec.  58.5  Related Federal laws and authorities.

* * * * *
    (a) Historic properties. (1) The National Historic Preservation Act 
of 1966 (16 U.S.C. 470 et seq.), particularly sections 106 and 110 (16 
U.S.C. 470f and 470h-2).
* * * * *
    29. Add a new Sec.  58.6(a)(4) to read as follows:


Sec.  58.6  Other requirements.

* * * * *
    (a) * * *
    (4) Flood insurance requirements cannot be fulfilled by self-
insurance except as authorized by law for assistance to state-owned 
projects within states approved by the Director of FEMA.
* * * * *

Subpart B--General Policy: Responsibilities of Responsible Entities

    30. Amend Sec.  58.13 by removing the word ``and'' at the end of 
paragraph (a); replacing the period at the end of paragraph (b) with a 
semi-colon and the word ``and''; and adding a new paragraph (c) to read 
as follows:


Sec.  58.13  Responsibilities of the certifying officer (CO).

* * * * *
    (c) Be the chief elected official (CEO) of the government (local, 
tribal, or state). The chief elected official or legislative body of 
the RE may authorize the Certifying Officer's legal responsibility to 
reside with another official of the RE if the other official is 
acceptable. For purposes of being authorized to carry out this 
responsibility, HUD requires that the substituted official provide 
evidence, in the form of a formal delegation by the chief elected 
official or resolution by the legislative body of the RE, that the 
substituted official has the authority to consent on behalf of the 
chief elected official to federal court jurisdiction and to bind the RE 
to satisfy any judgment entered in federal court relating to the RE's 
performance of environmental responsibilities under this part. NAHASDA 
designates the Director of the Department of Hawaiian Home Lands as the 
certifying officer (25 U.S.C. 4226) for the program of housing 
assistance for Native Hawaiians.
    31. Amend 24 CFR 58.15 by designating the current undesignated 
paragraph as paragraph (a) and by adding a new paragraph (b) to read as 
follows:


Sec.  58.15  Tiering.

* * * * *
    (b) The recipient shall not commit or expend funds for activities 
that constitute a development decision (including acquisition and 
disposition of real estate) that affects the physical condition of 
specific project areas or building sites, until the responsible entity 
has completed its site-specific analysis and compliance with this part. 
At any time, the recipient may commit or expend funds for exempt 
activities documented in accordance with Sec.  58.34(b), as well as for 
categorically excluded activities under Sec.  58.35(b).
    32. Add Sec.  58.19 to subpart B to read as follows:


Sec.  58.19  Waivers.

    (a) Regulatory waivers of requirements of part 58. Waiver 
applicants must describe in writing the reason for the waiver request 
and comply with paragraphs (c) and (d) of this section. The waiver 
request should be addressed to the appropriate Program Director in the 
HUD field office in whose area the relevant project is located, or to 
the Administrator in the Area Office of Native American Programs for 
the area. The waiver request must contain:
    (1) All relevant facts required for HUD to make the determination 
required in 24 CFR 50.37, including the chronology of events, the 
requirement proposed for waiver, the RE's ERR for the project, if any, 
and any other environmental information or analysis done by the 
recipient or a contractor;
    (2) Evidence that good cause exists to justify the extraordinary 
action of granting a waiver;
    (3) A statement citing the section of 24 CFR part 58 to be waived;
    (4) Any inquiries or concerns raised by individuals or 
organizations that are interested in or may be affected by the 
environmental impacts of the project as well as any agency having legal 
jurisdiction over the project or expertise related to the environmental 
impacts of the project; and
    (5) All available, relevant information necessary for HUD to 
perform any environmental review required by 24

[[Page 52274]]

CFR part 50 for approval of waivers from HUD environmental regulations.
    (b) Single waiver request. All required information necessary for 
HUD to process the waiver request for project activities covered by the 
request must be aggregated into a single waiver request.
    (c) Prior to approval. Until the Assistant Secretary for Community 
Planning and Development has approved the waiver, waiver applicants 
must:
    (1) Not acquire, rehabilitate, demolish, convert, lease, repair, or 
construct property, nor commit or expend HUD or any non-HUD funds for 
these project activities with respect to any eligible project property, 
from the time the waiver request is submitted until HUD written 
approval of the waiver is received for the project covered by the 
waiver request;
    (2) Cease all choice-limiting actions and require project 
participants (including public or private non-profit or for-profit 
entities, contractors, and subcontractors) under their jurisdiction or 
control to cease all such actions on the project once a written request 
for waiver is made to HUD. No choice-limiting actions may occur after 
that date. Work that is proceeding in accordance with pre-existing 
legally binding commitments is not required to be stopped unless there 
is little or no penalty for halting the work. Work may recommence upon 
receipt of written HUD approval of the waiver request; and
    (3) Carry out any mitigating measures required by HUD or select an 
alternate eligible project property or project.

Subpart C--General Policy: Environmental Review Procedures

    33. In Sec.  58.22, revise the second sentence of paragraph (a) to 
read as follows:


Sec.  58.22  Limitations on activities pending clearance.

    (a) * * * In addition, until an RROF and related certification have 
been approved, neither a recipient nor any participant in the 
development process may commit non-HUD funds on or undertake an 
activity or project under a program listed in Sec.  58.1(b) if the 
activity or project would have an adverse environmental impact or limit 
the choice of reasonable alternatives.
* * * * *

Subpart D--Environmental Review Process: Documentation, Range of 
Activities, Project Aggregation, and Classification

    34. Amend 24 CFR 58.35 by revising paragraph (b)(7) and by adding a 
new paragraph (b)(8) to read as follows:


Sec.  58.35  Categorical exclusions.

* * * * *
    (b) * * *
    (7) Approval of supplemental assistance (including insurance or 
guarantee) to a project previously approved under this part or under 24 
CFR part 50, if the RE for the supplemental assistance under this part 
determines that reevaluation of the original environmental finding is 
not required under Sec.  58.47. If the RE for the supplemental 
assistance is not the RE for the original assistance, or if the 
original environmental compliance was prepared by HUD under 24 CFR part 
50, the subsequent RE must review the original ERR and determine that 
reevaluation is not required under Sec.  58.47 and then must adopt the 
original ERR, including any special conditions and environmental 
mitigation required for the project, and record the adoption in its own 
ERR.
    (8) Giving of compensation assistance for loss during a 
Presidentially declared disaster only when that compensation benefit is 
not tied to any particular use of the funds. However, if the approval 
of compensation assistance imposes standards for construction or 
construction materials, manufactured housing, or occupancy, with 
respect to a beneficiary's property or a property that sustained damage 
or loss, but without requiring that any construction, repair, or other 
activity be carried out, a programmatic environmental assessment must 
be prepared. Such standards may be imposed by covenant on a 
beneficiary's property, or a property that sustained loss or damage, as 
a condition of receiving compensation assistance; however, the 
exclusion applies only if no construction, repair, or any other 
particular activity is required to be performed as a condition of 
receiving the compensation.
* * * * *
    35. Amend Sec.  58.38 by adding new paragraphs (c) and (d) to read 
as follows:


Sec.  58.38  Environmental review record.

* * * * *
    (c) Posting on Web site. REs are encouraged to post ERR documents 
on their Web sites for public review and comment and for the electronic 
record. If the ERR includes non-electronic records for the project, the 
posting on the Web site should indicate where and when such records are 
available for public review and copying. In either case, the Web site 
posting should indicate the name, phone number, and email address of 
the point of contact that is to receive public inquiries for assistance 
or comment.
    (d) Electronic submissions and notifications. HUD encourages the 
voluntary use of electronic submissions and notifications under this 
part. Current form HUD-7015.15, ``Request for Release of Funds and 
Certification,'' as well as current form HUD-7015.16, ``Authority to 
Use Grant Funds,'' (or narrative letter), will be used for electronic 
communication and documentation under the following procedures:
    (1) The RE must identify the Certifying Officer and provide his or 
her email address to the relevant HUD field office. The RE must 
communicate to HUD immediately any and all updates or changes to this 
information.
    (2) The RE must establish a computer system with access 
appropriately controlled by a reasonably secure username and password 
authentication protocol, and must demonstrate to HUD that it has taken 
reasonable steps to limit access to the computer system. HUD will have 
the right to conduct a security audit of the computer system at any 
time.
    (3) The Certifying Official must use HUD-provided forms in 
electronically fillable Portable Document Format (PDF).
    (4) The Certifying Official may electronically submit form HUD-
7015.15 by downloading the electronic form from either the HUD 
environmental office Web site (http://www.hud.gov/offices/cpd/energyenviron/environment/compliance/forms/index.cfm) or HUDclips 
(http://www.hudclips.org) in PDF, filling it out on the authorized, 
secure computer system, saving it to that system, and emailing it to 
HUD as an email attachment from the access-limited, reasonably secure 
system described in paragraph (d)(2) of this section. The email with 
the forms attached must come from the Certifying Official's official 
email address. If the correct email address does not appear in the 
header of the emailed message to which the forms are attached, HUD will 
not accept the submission.
    (5) The HUD Authorizing Official may email form HUD-7015.16 to the 
Certifying Officer.
    (6) The electronic submission protocols described in this section 
are deemed to provide the same degree of

[[Page 52275]]

identification, authentication, and intent as a signature on paper, and 
will suffice for all purposes for which the forms HUD-7015.15 and 
7015.16 are used.
    (7) The RE must maintain the electronic version of the forms HUD-
7015.15 and 7015.16 with all associated information in a manner 
accessible to the public, to the same extent as if they were non-
electronic forms. Retention of these records is required for the same 
length of time and with the same degree of accessibility as for non-
electronic records. The forms and associated information must be 
retained in a manner that allows the public to view or download them 
from the RE's Web site.
    36. Revise the heading to subpart E to read as follows:

Subpart E--Environmental Review Process: Environmental Assessments 
(EAs)

    37. Revise Sec.  58.43(c) to read as follows:


Sec.  58.43  Dissemination and/or publication of the findings of no 
significant impact.

* * * * *
    (c) The responsible entity must consider the comments and make 
modifications, if appropriate, in response to the comments, before it 
completes its environmental certification and before the recipient 
submits its RROF/C. Where Sec.  58.33(b) is applicable, modifications 
resulting from public comment, if appropriate, must be made before 
proceeding with the expenditure of funds that will be used in 
Presidentially declared disaster areas or during a local emergency that 
has been declared by the chief elected official of the responsible 
entity who has proclaimed that there is an immediate need for public 
action to protect the public safety.

PART 91--CONSOLIDATED SUBMISSIONS FOR COMMUNITY PLANNING AND 
DEVELOPMENT PROGRAMS

    38. The authority citation for 24 CFR part 91 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d), 3601-3619, 5301-5315, 11331-11388, 
12701-12711, 12741-12756, and 12901-12912.

Subpart B--Citizen Participation and Consultation

    39. Add Sec.  91.100(d) to read as follows:


Sec.  91.100  Consultation; local governments.

* * * * *
    (d) Environment. To facilitate compliance with environmental review 
requirements, the jurisdiction should consult with non-profit and for-
profit organizations and public housing agencies that receive HUD grant 
awards. The jurisdiction is authorized to perform the environmental 
review as the responsible entity for HUD programs that are subject to 
24 CFR part 58. Where the jurisdiction requires reimbursement of costs, 
remuneration for environmental review services rendered by the 
jurisdiction may be available from the recipient's HUD program grant in 
accordance with 24 CFR 58.23.

    Dated: August 9, 2007.
Nelson R. Breg[oacute]n,
General Deputy Assistant Secretary for Community Planning and 
Development.
 [FR Doc. E7-17818 Filed 9-11-07; 8:45 am]
BILLING CODE 4210-67-P