[Federal Register Volume 89, Number 111 (Friday, June 7, 2024)]
[Notices]
[Pages 48674-48680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12459]


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DEPARTMENT OF THE INTERIOR

Office of the Secretary

[RR83530000, 234R5065C6, RX.59389832.1009676]


National Environmental Policy Act Implementing Procedures for the 
Bureau of Reclamation

AGENCY: Office of the Secretary, Interior.

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Interior (Department), Bureau of 
Reclamation (Reclamation) proposes to revise seven categorical 
exclusions (CE) under the National Environmental Policy Act of 1969 
(NEPA) in Reclamation's NEPA implementing procedures, Departmental 
Manual (DM) at part 516, chapter 14. The proposed revisions would 
clarify existing CEs on certain financial assistance funding, water-
related contracting, and use authorization actions to allow for more 
consistent interpretation and more efficient review of appropriate 
actions based on Reclamation's experience implementing these CEs. The 
Department, on behalf of Reclamation, invites public comment on the 
proposed revisions.

DATES: Submit written comments on or before July 8, 2024.

ADDRESSES: Send written comments electronically to [email protected], or 
by mail to Bureau of Reclamation, Attn: USBR CE, 1849 C Street NW, 
Suite 7069, Washington, DC 20240. Supporting documentation used in 
preparing the proposed CE revisions is available for public inspection 
at www.usbr.gov/nepa. The public can also view the CE substantiation 
report at www.usbr.gov/nepa. The web address for Reclamation's current 
procedures, at series 31, part 516, chapter 14, is https://www.doi.gov/document-library/departmental-manual/516-dm-14-managing-nepa-process-bureau-reclamation.

FOR FURTHER INFORMATION CONTACT: Shane Hunt (he/him) via phone at 916-
202-7158, or via email at [email protected]. Individuals who are deaf, 
deafblind, hard of hearing, or have a speech disability may dial 711 
(TTY, TDD, or TeleBraille) to access telecommunications relay services. 
Individuals outside the United States should use the relay services 
offered within their country to make international calls to the point-
of-contact in the United States.

SUPPLEMENTARY INFORMATION:

[[Page 48675]]

Background

    Reclamation was established in 1902. Its original mission was civil 
works construction to develop the water resources of the arid Western 
United States to promote the settlement and economic development of 
that region. Reclamation developed hundreds of projects to store and 
deliver water. That substantial infrastructure development contributed 
to making Reclamation the largest wholesale supplier of water and the 
second largest producer of hydropower in the United States.
    Reclamation carries out numerous activities in support of its 
modern-day mission and authorities. NEPA requires Federal agencies to 
assess the potential environmental effects of proposed major Federal 
actions. If a major Federal action would have significant impacts on 
the quality of the human environment, an agency prepares an 
environmental impact statement (EIS) to describe the reasonably 
foreseeable effects associated with the proposed action, as well as a 
reasonable range of alternatives (see 42 U.S.C. 4332(2)(C)). An agency 
prepares an environmental assessment (EA) when a proposed action will 
not have a reasonably foreseeable significant effect on the quality of 
the human environment, or if the significance of such effect is unknown 
(see 42 U.S.C. 4336(a)(2), 40 CFR 1501.5(a)). A Federal agency also 
identifies in its agency NEPA implementing procedures categories of 
actions that normally do not significantly affect the quality of the 
human environment and therefore do not require the preparation of an EA 
or an EIS, subject to the consideration of extraordinary circumstances 
(see 42 U.S.C. 4336e(1), 40 CFR 1501.4 and 43 CFR 46.215). When 
appropriately established and applied, these CEs allow agencies to 
protect the environment while operating more efficiently by focusing 
their resources on proposals that may have significant environmental 
impacts. In the late 1970s and early 1980s, the Department established 
Reclamation-specific NEPA implementing procedures, including 30 CEs, 
which are found in chapter 14 of part 516 of the Departmental Manual 
(516 DM 14). The Department and Reclamation, through this notice, 
propose to revise seven of those CEs, as discussed below.
    Since developing Reclamation's NEPA implementing procedures, 
several government-wide and Departmental efforts have encouraged 
agencies and bureaus to modernize and streamline environmental reviews 
and, where appropriate, establish new CEs or revise existing ones. The 
Council on Environmental Quality (CEQ) recommends that agencies 
periodically review and update, as necessary, their NEPA implementing 
procedures, including their CEs.\1\
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    \1\ See 40 CFR 1507.3 and CEQ's 2010 guidance on Establishing, 
Applying, and Revising Categorical Exclusions Under the National 
Environmental Policy Act, https://ceq.doe.gov/docs/ceq-regulations-and-guidance/NEPA_CE_Guidance_Nov232010.pdf.
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    Reclamation has amassed extensive knowledge and experience 
analyzing actions under NEPA. In 2016, Reclamation comprehensively 
reviewed its existing CEs at 516 DM 14, which were originally 
established in the early 1980s. Through the review process and based on 
more than 40 years of agency experience implementing these CEs, 
Reclamation identified several examples of actions for which new and 
revised CEs would improve NEPA compliance by enhancing efficiencies and 
ensuring clear and consistent interpretation for NEPA practitioners, 
project proponents, and the public. Specifically, Reclamation's NEPA 
practitioners and program subject matter experts (CE Working Group) 
reviewed the original purpose and history of the applicability and use 
for each of Reclamation's existing CEs. Reclamation's CE Working Group 
identified issues and challenges contributing to inconsistent 
interpretation of the actions or scope covered by the CEs, as well as 
opportunities to modify or add new actions to CEs when those 
modifications or actions would not result in significant environmental 
effects.
    The CE Working Group found that CEs with clearly defined language 
and consistent application by NEPA practitioners did not require 
changes at this time. The CE Working Group identified seven CEs, which 
are covered by this notice, for revisions to promote consistent 
interpretation and application by eliminating confusing or outdated 
terminology and authorities. The CE Working Group also identified 12 
existing CEs and potentially new CEs, not addressed in this notice, 
that required either substantial changes, additional language, or a 
more thorough review to promote consistent interpretation and to expand 
their scope to include similar actions with similar ranges of potential 
impacts. On May 24, 2019, Reclamation established one new CE for 
transfers of title. Upon completion of the title transfer CE, 
Reclamation determined its next priority was to revise the seven 
existing CEs that are the subject of this notice.
    The proposed revisions to the seven CEs correct and modernize 
terminology and authorities, as well as clarify the scope of activities 
and constraints. While the effect of certain proposed CE revisions 
would be to broaden CE application to include additional actions, as 
explained more fully below, the proposed changes are consistent with 
the existing CEs' intent as well as the underlying activities and 
impact-based constraints contemplated by the existing CEs from their 
inception. The result of these proposed changes is that the CEs' 
underlying activities and the constraints used to define them remain 
intact. Further, Reclamation's record of CE checklists and EAs with 
findings of no significant impact (FONSIs) support these proposed 
changes for actions that normally do not have a significant effect on 
the human environment. This notice provides a comparison of the 
existing and proposed CE language and the specific history, basis, and 
rationale for each proposed revised CE.

[[Page 48676]]



            516 DM 14.5--Operation and Maintenance Activities
                        [Water-related contracts]
------------------------------------------------------------------------
          Existing CE language             Proposed revised CE language
------------------------------------------------------------------------
D4. Approval, execution, and             D4. Approval, execution,
 implementation of water service          administration, and
 contracts for minor amounts of long-     implementation of water-
 term water use or temporary or interim   related contracts and contract
 water use where the action does not      renewals, amendments,
 lead to long-term changes and where      supplements, and assignments,
 the impacts are expected to be           and water transfers,
 localized.                               exchanges, and replacements,
                                          for which one or more of the
                                          following apply: (a) for minor
                                          amounts of long-term water
                                          use, where impacts are
                                          expected to be localized; (b)
                                          for temporary or interim water
                                          use \2\ where the action does
                                          not lead to long-term changes
                                          and where the impacts are
                                          expected to be localized; or
                                          (c) where the only result will
                                          be to implement an
                                          administrative or financial
                                          practice or change. A ``water-
                                          related'' contract is any
                                          legally binding agreement to
                                          which Reclamation becomes a
                                          party, pursuant to its
                                          authority under Federal law
                                          that (1) makes water available
                                          from or to the United States;
                                          (2) allows water to be stored,
                                          carried, or delivered in
                                          facilities Reclamation owns,
                                          manages, operates, or funds;
                                          or (3) establishes operation,
                                          maintenance, and replacement
                                          responsibilities for such
                                          facilities.
D14. Approval, renewal, transfer, and    D14. Reserved.
 execution of an original, amendatory,
 or supplemental water service or
 repayment contract where the only
 result will be to implement an
 administrative or financial practice
 or change.
------------------------------------------------------------------------

    Reclamation proposes to revise the current D4 and D14 CEs for 
clarity and to promote consistent interpretation, focused on impacts-
based constraints, while ensuring that the actions potentially covered 
by the proposed D4 CE would not have a significant effect on the human 
environment. Reclamation proposes to combine the current D4 and D14 CEs 
into the proposed D4 CE and reserve D14 for future use if needed.
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    \2\ Reclamation policy PEC P05 defines temporary and interim as 
short-term meaning 10 years or less.
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    The CE Working Group review found that Reclamation routinely used 
the current D4 and D14 CEs and that there are extensive records of CE 
checklists and EAs with FONSIs to document that the water contract 
actions described therein did not result in significant effects. 
Reclamation's review also identified several challenges arising from 
the way CEs D4 and D14 are defined--in particular, how the water-
related contract types (water service, repayment, etc.) and contract 
actions (approval, execution, renewal, etc.) should be read in relation 
to applicable impacts-based constraints.
    Inconsistencies in the current D4 and D14 CEs have led to unclear 
expectations and varying application by NEPA practitioners. This lack 
of clarity has led to increased costs and resource expenditures when 
Reclamation prepares EAs rather than using the current D4 or D14 CEs. 
The current D4 and D14 CEs apply only to certain contract types and 
contracting actions. For instance, the current D4 CE only lists water 
service contracts and original contract execution. The current D14 CE 
omits contract implementation--Reclamation's performance of the 
contract once it is executed--and applies only to water service and 
repayment contracts. Further, the historic record establishing these 
current CEs does not describe the reasons for the omissions and 
differences regarding contract types and contract actions or provide 
guidance about how to interpret the differences. Nor are there now 
discernable, relevant reasons for the distinctions. The relevant 
distinctions for purposes of the current CEs are water amount, duration 
of the contract, and magnitude of the impact. The intention of 
Reclamation's proposed revisions to the current D4 and D14 CEs is to 
resolve these issues by simplifying contract types to include all 
``water-related'' contracts and all contract actions to more clearly 
define the applicability of the proposed D4 CE based on an action's 
impacts.
    The range of proposed water-related contract actions covered under 
the current D4 and D14 CEs are substantially the same among 
Reclamation's contract types. Reclamation enters into a variety of 
water-related contract types and carries out contract actions to amend, 
supplement, or renew these contracts after their original execution. 
Water service contracts provide project water at contractually 
established water rates pursuant to section 9(c)(2) or 9(e) of the 
Reclamation Project Act of 1939 (1939 Act),\3\ section 9 of the Water 
Conservation and Utilization Act of 1939,\4\ the Sale of Water for 
Miscellaneous Purposes Act of 1920,\5\ or other authorities. Repayment 
contracts, pursuant to 9(d) of the 1939 Act, provide project water in 
exchange for contractors' agreement to repay a set amount of the 
government's project costs in a given time.
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    \3\ Public Law 76-260, 9; 53 Stat. 1187, 1193; 43 U.S.C. 485h.
    \4\ Public Law 76-398, 9; 53 Stat 1418; 1124; 16 U.S.C. 590z-7.
    \5\ Public Law 66-147, 41 Stat. 451; 43 U.S.C. 521.
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    While water service and repayment contracts are core types of 
contracts that Reclamation holds, Reclamation also enters into a 
variety of other water-related contracts. These include excess capacity 
contracts, which allow others to store and move non-project water in 
Federal works; contracts to transfer Federal operation and maintenance 
responsibilities to water user organizations; and water exchange or 
replacement contracts. The current D4 and D14 do not expressly include 
the range of Reclamation water-related contract types. The proposed 
revisions to the D4 CE expand the potential application of the proposed 
CE to encompass the variety of water-related contracts entered into by 
Reclamation. Including them enhances Reclamation's ability to comply 
with NEPA efficiently and effectively, consistent with 40 CFR 1501.4 
where they meet the impact-based constraints, rather than based on 
distinctions that relate instead to the legal and financial aspects of 
contract actions.
    The potential application of the proposed D4 CE is inclusive of 
more types of water-related contracts as discussed above; however, the 
proposed D4 CE establishes meaningful limits to

[[Page 48677]]

its application. All water-related contracts affect the delivery and 
use of water or the operation of related facilities and involve 
relatively large or small water amounts. Any water-related contract may 
be subject to actions that only result in implementation of an 
administrative or financial practice or change. Accordingly, rather 
than limiting CE application based on the legal or financial 
characteristics of contracts and contract actions, the proposed D4 CE 
contains impact-based constraints on its application.
    To date, Reclamation has prepared numerous EAs and FONSIs for 
water-related contract requests, which www.usbr.gov/nepa provides. In 
this notice's supporting documentation, Reclamation includes the review 
of 25 water-related contract EAs and FONSIs completed between 2011 and 
2022. These EAs and FONSIs demonstrate that, absent extraordinary 
circumstances, the types of water-related contracts that the proposed 
D4 CE would cover, result in no significant effects.
    To inform its proposed updates to the current D4 and D14 CEs, 
Reclamation also analyzed the impact-based constraints in these 
existing CEs. The constraint limiting the scope and effects for the 
existing D14 CE, ``where the only result will be to implement an 
administrative or financial practice or change,'' is clear, easily 
understood, and consistently applied by NEPA practitioners. In 
contrast, the impact-based constraints in the current D4 CE create 
confusion regarding its application. Due to its grammatical 
construction, most notably the lack of punctuation, the current D4 CE 
does not clearly present the relationship between the impact-based 
constraints and D4 CE's application. To resolve the confusion created 
by the current D4 CE and provide clarity and consistency, Reclamation 
proposes to revise the D4 CE to distinctly list each impact-based 
constraint.
    Reclamation determined that the application of the proposed D4 CE 
should continue to be determined by changes in water quantity relative 
to the affected project or water system. Reclamation also considered 
whether the absolute water-related contract water amounts, for 
instance, limiting application by acre-feet of water, should constrain 
the application of the proposed D4 CE. Ultimately, Reclamation rejected 
specifying water amounts because the effects to a water system 
resulting from a water-related contract's specified changes in water 
quantity are relative; effects depend on the size and unique 
characteristics of the water system. For example, an amount of contract 
water that would be minor to the Columbia River might be significant to 
the Middle Rio Grande River. Therefore, Reclamation proposes the 
continued use of ``minor'' as an appropriate constraint for water 
quantity under the proposed D4 CE. The current D4 CE successfully 
applies the constraint and based on a review of past CE use, EAs, and 
FONSIs, the use of the term ``minor'' when coupled with the other 
impact-based constraints included in the proposed CE, and absent any 
extraordinary circumstances, will normally not significantly affect the 
quality of the human environment. Likewise, system-specific 
characteristics, such as hydrological interconnections and local 
environmental sensitivities, will affect Reclamation's assessment of 
whether a water-related contract action's impacts would be considered 
minor, lead to long-term changes, or be localized. Reclamation has not 
quantified these impact-based constraints in the past, and for the 
reasons noted above, finds that these constraints do not require 
quantification in the proposed D4 CE.
    Finally, as described above, the type of water-related contract or 
contract action is not an effective measure of environmental effects or 
means of defining a CE's application. The impact-based constraints 
limiting use of the CEs based on elements of water delivery (amount, 
duration, and area impacted) are more meaningful to determine the 
relationship of an action to the potential for significant impacts to 
the environment. Emphasis on using impact-based constraints to define 
those water-related contracts eligible for use of the proposed D4 CE 
would standardize its application across water-related contract actions 
as well as ensure the covered actions would not result in significant 
effects.
    To clarify the application of CEs pertaining to water-related 
contract actions and to focus on impact-based constraints, Reclamation 
proposes to consolidate the current D4 and D14 CEs into one CE, the 
proposed D4 CE. Reclamation then proposes to revise the current D4 CE 
to replace ``water service contract'' with the more inclusive ``water-
related contract,'' which is defined in the proposed D4 CE and the 
Reclamation Manual Policy, Water-Related Contracts and Charges--General 
Principles and Requirements (PEC P05), 4.R. The proposed text of D4 CE 
then uses a list format for each of the impact-based constraints 
limiting the application of the proposed D4 CE to increase clarity. 
This includes ``temporary or interim water use'' which PEC P05, 4.P 
defines as short-term meaning 10 years or less. Based on the 
consideration of the contract types, within the context of the impact-
based constraints and absent any extraordinary circumstances, 
Reclamation determines that the additional contract types would not 
have a significant impact on the quality of the human environment.

            516 DM 14.5--Operation and Maintenance Activities
                          [Use authorizations]
------------------------------------------------------------------------
          Existing CE language             Proposed revised CE language
------------------------------------------------------------------------
D8. Renewal of existing grazing,         D8. Issuance or renewal of use
 recreation management, or cabin site     authorizations (as defined in
 leases which do not increase the level   43 CFR 429.2, including
 of use or continue unsatisfactory        crossing agreements which
 environmental conditions.                provide rights-of-way) that
                                          provide right-of-use of
                                          Reclamation land, facilities,
                                          or waterbodies where one or
                                          more of the following apply:
                                          (a) work is minor and impacts
                                          are expected to be localized;
                                          (b) the action does not lead
                                          to a major public or private
                                          action; (c) the only result of
                                          the authorization will be to
                                          implement an administrative or
                                          financial practice or change;
                                          or (d) the level of use or
                                          impacts to resources is not
                                          increased.
D10. Issuance of permits, licenses,      D10. Reserved.
 easements, and crossing agreements
 which provide right-of-way over Bureau
 lands where the action does not allow
 for or lead to a major public or
 private action.
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[[Page 48678]]

    Reclamation's CE Working Group review found that the existing D8 
and D10 CEs, as well as other Reclamation CEs for substantially similar 
use authorization actions, such as D9 that covers the ``issuance of 
permits for removal of gravel or sand by an established process from 
existing quarries,'' are routinely applied to use authorization 
activities. The extensive collection of CE checklists for the existing 
D8 and D10 CEs and other use authorization CEs demonstrate that these 
activities do not have significant effects absent extraordinary 
circumstances. The list of use authorization types in the current D10 
CE is consistent with the use authorizations included in 43 CFR 429.2 
(i.e., easements, leases, licenses, permits, and consent documents). 
Reclamation also found confusion regarding the existing D8 and D10 CEs' 
applicability to use authorization renewals, issuances, and reissuances 
related to underlying use authorization activities. For example, the 
current D10 CE does not explicitly include renewal of use 
authorizations. As a result of this omission, NEPA practitioners 
interpret the current D10 CE differently with some employing the 
current D10 CE to reissue expiring use authorizations and others 
determining that the current D10 CE is not applicable in the same 
circumstances.
    Reclamation proposes to revise the current D8 and D10 CEs to more 
clearly describe when a use authorization CE applies. First, 
Reclamation proposes to combine the existing D8 and D10 CEs into one 
CE, the proposed D8 CE, and reserve D10 for future use if needed. Next, 
Reclamation proposes to include in the proposed D8 CE the term ``use 
authorization.'' Similar to the scope of the current D10 CE, the 
proposed D8 CE covers the Reclamation use authorization activities by 
incorporating language from and a reference to 43 CFR 429.2, including 
crossing agreements which provide rights-of-way for consistency in 
interpretation. Finally, the proposed D8 CE specifies the terms and 
conditions for which Reclamation will issue a use authorization for its 
land, facilities, or waterbodies.
    Much like the rationale supporting the use of impact-based 
constraints for water-related contracts and contracting actions in the 
proposed D4 CE, for the proposed D8 CE, the use authorization type does 
not as effectively identify environmental effects or define the 
proposed CE's application as the underlying use authorization actions 
and impact-based constraints. Therefore, Reclamation is proposing to 
revise the D8 CE to clarify the actions that fall under ``use 
authorizations'' and list the impact-based constraints on the 
application of the proposed D8 CE. In the aggregate, the forgoing 
revisions in the proposed D8 CE will standardize its application and 
will not expand the scope of actions covered under the current D8 and 
D10 CEs.
    Reclamation has prepared numerous CE checklists and EAs analyzing 
use authorization proposals covering actions within the scope of the 
proposed D8 CE that resulted in FONSIs. Reclamation's CE substantiation 
report summarizes 13 use authorization EAs with FONSIs completed 
between 2006 and 2022. These EAs and FONSIs demonstrate that the 
issuance and renewal of use authorization included in the proposed D8 
CE typically result in no significant impacts. The proposed D8 CE is 
consistent with 43 CFR part 429 and contemporary Reclamation Manual 
policies and directives and standards and will lead to improved, more 
efficient analysis of these actions.

    516 DM 14.5--Financial Assistance, Loans, and Funding Activities
------------------------------------------------------------------------
          Existing CE language             Proposed revised CE language
------------------------------------------------------------------------
E1. Rehabilitation and Betterment Act    E1. Financial assistance,
 loans and contracts which involve        cooperative agreements,
 repair, replacement, or modification     grants, loans, contracts, or
 of equipment in existing structures or   other funding, where the
 minor repairs to existing dams,          underlying actions being
 canals, laterals, drains, pipelines,     funded (a) would be covered by
 and similar facilities.                  another Reclamation CE if
                                          Reclamation were implementing
                                          the action itself, or (b)
                                          where the work to be done is
                                          confined to areas already
                                          impacted by farming or
                                          development activities, work
                                          is considered minor, and where
                                          the impacts are expected to be
                                          localized.
E2. Small Reclamation Projects Act       E2. Reserved.
 grants and loans where the work to be
 done is confined to areas already
 impacted by farming or development
 activities, work is considered minor,
 and where the impacts are expected to
 be localized.
E3. Distribution System Loans Act loans  E3. Reserved.
 where the work to be done is confined
 to areas already impacted by farming
 or developing activities, work is
 considered minor, and where the
 impacts are expected to be localized.
------------------------------------------------------------------------

    Reclamation's CE Working Group review found that the existing E1, 
E2, and E3 CEs, which are the current CEs pertaining to financial 
assistance actions, are too narrowly defined by specific, outdated 
program authorities that Reclamation policy now disfavors. Reclamation 
has gained several authorities for financial assistance through the 
SECURE Water Act, Infrastructure Investment and Jobs Act, Inflation 
Reduction Act, and others to provide critical funding for water and 
energy infrastructure, restoration, drought, and conservation projects 
that are integral to Reclamation and Department missions.
    Rather than tying the CE to particular authorities, Reclamation 
proposes that the revisions describe the underlying activity with 
impact-based constraints, allowing Reclamation to use the CE across 
current and future programs. The existing E1, E2, and E3 CEs too 
narrowly define the listed program authorities for Reclamation's 
contemporary program portfolio. Further, many of the actions funded by 
Reclamation's current financial assistance programs would qualify for 
these and other existing CEs because the underlying activities are 
either already covered by another Reclamation CE if Reclamation were 
implementing the action itself, or the activities (e.g., ``work [. . .] 
confined to areas already impacted by farming or developing activities, 
work is considered minor, and where the impacts are expected to be 
localized.'') are consistent with the existing E1, E2, and E3 CEs.
    Given Reclamation's inability to access existing E1, E2, and E3 CEs 
because of their narrow definitions of authority, Reclamation's current 
practice is to prepare EAs and FONSIs for many financial assistance 
actions. To

[[Page 48679]]

address the current E1, E2, and E3 CEs' obsolescence and avoid similar 
issues in the future, Reclamation proposes to remove all reference to 
specific program authorities in the proposed E1 CE. The proposed 
revised CE, in turn, is substantiated based on the EAs and FONSIs that 
Reclamation has prepared in the absence of such an existing CE, as 
outlined in the accompanying CE substantiation report.
    Reclamation also has determined that the underlying financial 
assistance activities in the existing E1, E2, and E3 CEs remain 
relevant, and has updated the impact-based constraints in these CEs 
based on the analysis of these recent EAs and FONSIs. Accordingly, 
Reclamation proposes to include impact-based constraints from the 
existing E1, E2, and E3 CEs in the proposed E1 CE. The underlying 
financial assistance actions retained in the proposed E1 CE include 
funded actions that another Reclamation CE, if Reclamation were 
implementing the action itself, would cover. The impact-based 
constraints from the E2 and E3 CEs also are in the proposed E1 CE, 
limiting the application of the proposed E1 CE to financial actions for 
``work [. . .] confined to areas already impacted by farming or 
developing activities, work is considered minor, and where the impacts 
are expected to be localized.''
    These impact-based constraints limit the application of the 
proposed E1 CE to financial assistance activities that normally will 
not have significant environmental impacts.
    Reclamation also proposes to expand the types of financial 
assistance actions covered under the proposed E1 CE to include 
financial assistance, cooperative agreements, grants, loans, contracts, 
and a catch-all ``other funding.'' This revision allows the proposed E1 
CE to be potentially applicable to all financial assistance types, 
including grants, loans, and funding for applicant, sponsor or partner 
actions as long as the financial assistance action is consistent with 
the underlying financial assistance actions and impacts-based 
constraints defined in the proposed E1 CE. Because the financial 
assistance authorities assigned to Reclamation by law are subject to 
change, and Reclamation would like to avoid obsolescence, the proposed 
E1 CE draft focuses on the underlying financial assistance activity 
funded rather than the funding program authority, allowing for 
application consistent with current and future authorities.
    Similar to the rationale for water-related contracts and 
contracting actions in the proposed D4 CE and use authorization actions 
in the proposed D8 CE, for the proposed E1 CE, the authority type does 
not as effectively identify environmental effects or define the 
proposed CE's application as the underlying financial assistance 
actions and impact-base constraints. Therefore, Reclamation is 
proposing to revise the current E1, E2, and E3 CEs to remove the 
specificity of funding program authorities, clarify the underlying 
financial assistance actions and impact constraints on their 
application, and combine into one proposed E1 CE, with E2 and E3 
reserved for future use if needed. While Reclamation expects these 
proposed revisions to increase the types of financial assistance 
actions that qualify for the proposed E1 CE, the scope of these actions 
is consistent with existing definitions of underlying financial 
assistance activities and impact-based constraints.
    Reclamation has prepared numerous CE checklists and EAs analyzing 
financial assistance proposals covering actions with the scope of the 
proposed E1 CE that resulted in FONSIs. Reclamation has summarized 33 
EAs with FONSIs completed between 2016 and 2022 in its CE 
substantiation report included in this notice's supporting 
documentation, which support a determination that the proposed CE 
revisions would not result in significant impacts for financial 
assistance actions. Additional Financial Assistance EAs with FONSIs can 
be accessed at www.usbr.gov/nepa that also demonstrate that types of 
proposals included in the proposed E1 CE typically result in no 
significant effects. The proposed E1 CE is consistent with contemporary 
Reclamation authorities and will lead to improved, more efficient 
analysis of these actions.

Categorical Exclusion Determination

    The Department and Reclamation find that the categories of actions 
described in the proposed CEs normally do not have a significant effect 
on the human environment absent extraordinary circumstances. This 
finding is based on Reclamation's comprehensive review of CEs, EAs, and 
FONSIs; its history and over 40 years of experience analyzing actions 
under NEPA and using these CEs; the rationale for the proposed 
revisions described above; and consistent determinations made under CE 
checklists and EAs with FONSIs that these actions normally do not have 
a significant effect on the human environment. Since establishing the 
existing contracting and use authorization CEs in the late 1970s and 
early 1980s, Reclamation estimates it has prepared thousands of CE 
checklists documenting that these actions did not result in significant 
effects. In addition, since the early 1980s, Reclamation estimates it 
has prepared hundreds of EAs and FONSIs for financial assistance 
actions similar to those actions that would be covered under the 
proposed E1 CE that were not included in the narrow definition of the 
specific authorities in the E1, E2, and E3 CEs. Further, Reclamation 
estimates that it has prepared hundreds of additional EAs and FONSIs 
for contracting and use authorization actions closely related to the 
D4, D8, D10, and D14 CEs that either did not meet strict interpretation 
of those CE definitions, or where a water-related contract or use 
authorization CE was not applied because of uncertainty surrounding the 
description of the proposal type, proposal activities, or impact-based 
constraints. The frequent use of these existing CEs, experience 
preparing EAs and FONSIs for actions covered by the proposed CEs, and 
Reclamation's comprehensive review of how its existing CEs are applied 
in practice serve to validate Reclamation's preparation of these 
proposed CEs. To further demonstrate the finding that actions under the 
proposed CEs would not normally result in significant effects to the 
human environment, Reclamation reviewed 71 EAs with FONSIs and 
summarized them in the CE substantiation report included in this 
notice's supporting documentation. These 71 EAs with FONSIs analyze 
actions that the proposed CE revisions are designed to cover in the 
future. Additional EAs with FONSIs are also available at www.usbr.gov/nepa.
    Reclamation recognizes that certain proposed actions, when reviewed 
on a case-by-case basis, may trigger one or more extraordinary 
circumstances, and for those proposed actions where a normally excluded 
action may have a significant effect, Reclamation will prepare an EA or 
EIS (see 43 CFR 46.215). In such cases, the proposed actions could have 
significant environmental effects and require additional NEPA analysis 
(see 40 CFR 1501.4(b)). Thus, prior to applying any CE, Reclamation 
will review the proposed action to ensure it is covered by the CE and 
evaluate the proposed action for any extraordinary circumstances. 
Reclamation requires that any action for which a Reclamation CE is used 
must be documented with a CE checklist to demonstrate (a) the 
applicability of the CE, and (b) verification that no extraordinary 
circumstances are present such that a normally excluded action may have 
a significant effect. In such cases, Reclamation will conduct 
additional

[[Page 48680]]

NEPA analysis and prepare an EA or EIS, as appropriate.
    The Department, on behalf of Reclamation, invites comments on these 
proposed CE revisions and will consider all comments received by the 
comment deadline. Comments should be as specific as possible and 
provide detail to explain the importance of the issues raised in the 
comment to Reclamation's proposed rulemaking.

Public Disclosure Statement

    Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment including your personal identifying 
information may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.

Amended Text for the Departmental Manual

    The proposed text would modify 516 DM as set forth below:

Part 516: National Environmental Policy Act of 1969
Chapter 14: Managing the NEPA Process--Bureau of Reclamation
* * * * *

14.5 Categorical Exclusions

* * * * *

D. Operation and Maintenance Activities

* * * * *
    (4) Approval, execution, administration, and implementation of 
water-related contracts and contract renewals, amendments, supplements, 
and assignments, and water transfers, exchanges, and replacements, for 
which one or more of the following apply: (a) for minor amounts of 
long-term water use, where impacts are expected to be localized; (b) 
for temporary or interim water use where the action does not lead to 
long-term changes and where the impacts are expected to be localized; 
or (c) where the only result will be to implement an administrative or 
financial practice or change. A ``water-related contract'' is any 
legally binding agreement to which Reclamation becomes a party, 
pursuant to its authority under Federal law that (1) makes water 
available from or to the United States; (2) allows water to be stored, 
carried, or delivered in facilities Reclamation owns, manages, 
operates, or funds; or (3) establishes operation, maintenance, and 
replacement responsibilities for such facilities.
* * * * *
    (8) Issuance or renewal of use authorizations (as defined in 43 CFR 
429.2, including crossing agreements which provide rights-of-way) that 
provide right-of-use of Reclamation land, facilities, or waterbodies 
where one or more of the following apply: (a) work is minor and impacts 
are expected to be localized; (b) the action does not lead to a major 
public or private action; (c) the only result of the authorization will 
be to implement an administrative or financial practice or change; or 
(d) the level of use or impacts to resources is not increased.
* * * * *
    (10) Reserved.
* * * * *
    (14) Reserved.
* * * * *

E. Financial Assistance, Loans, and Funding

    (1) Financial assistance, cooperative agreements, grants, loans, 
contracts, or other funding, where the underlying actions being funded 
(a) would be covered by another Reclamation CE if Reclamation were 
implementing the action itself; or (b) where the work to be done is 
confined to areas already impacted by farming or development 
activities, work is considered minor, and where the impacts are 
expected to be localized.
    (2) Reserved.
    (3) Reserved.

Stephen G. Tryon,
Director, Office of Environmental Policy and Compliance.
[FR Doc. 2024-12459 Filed 6-6-24; 8:45 am]
BILLING CODE 4332-90-P