[Federal Register Volume 91, Number 57 (Wednesday, March 25, 2026)]
[Proposed Rules]
[Pages 14490-14511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-05791]


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SURFACE TRANSPORTATION BOARD

49 CFR Parts 1011 and 1105

[Docket No. EP 779]


Permitting Reform--Environmental Review Process

AGENCY: Surface Transportation Board.

ACTION: Notice of proposed rulemaking and request for comments.

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SUMMARY: The Surface Transportation Board (Board) proposes to clarify, 
update, and streamline its existing environmental regulations 
implementing the National Environmental Policy Act (NEPA) and to add 
delegations of authority related to environmental review. The Board is 
taking this action to conform its regulations to current practices and 
changes in the law and to support government-wide consistency in the 
NEPA process to the extent practicable and in accordance with Board 
authorities. Among those changes are the Council on Environmental 
Quality's (CEQ) rescission of its NEPA implementing regulations, the 
2023 and 2025 amendments to NEPA, changes to other relevant statutes, 
executive orders, and case law relating to the implementation of NEPA, 
including recent U.S. Supreme Court precedent. These revisions will 
also ensure the development and continuance of a sound rail 
transportation system and reduce regulatory barriers to entry into and 
exit from the rail industry. The Board asks for comments on the 
proposed changes.

DATES: Comments on the proposed regulations are due by April 24, 2026.

ADDRESSES: All filings must be submitted to the Surface Transportation 
Board either via e-filing on the Board's website or in writing 
addressed to 395

[[Page 14491]]

E Street SW, Washington, DC 20423-0001. Filings will be posted to the 
Board's website and need not be served on other commenters or any other 
party to the proceeding.

FOR FURTHER INFORMATION CONTACT: Danielle Gosselin, Director of the 
Office of Environmental Analysis, (202) 245-0300. For accommodations 
under the Americans with Disabilities Act, please call (202) 245-0245.

SUPPLEMENTARY INFORMATION: Under the National Environmental Policy Act 
of 1969 (NEPA), Public Law 91-190, 83 Stat. 852 (1970),\1\ the Board 
considers the reasonably foreseeable environmental effects of the major 
federal actions it takes, such as the authorization of a rail 
construction project, before making a final decision on the action. The 
Board's environmental regulations at 49 CFR part 1105 enable the agency 
to meet its responsibilities under NEPA and related environmental laws, 
including, but not limited to, the National Historic Preservation Act 
(NHPA), the Coastal Zone Management Act (CZMA), and the Endangered 
Species Act (ESA).\2\ Since the last major revision of the Board's 
environmental regulations in 1991,\3\ substantial changes to the 
Board's statutory authority have occurred, most notably with the ICC 
Termination Act of 1995 (ICCTA), Public Law 104-88, 109 Stat. 803, 
making many references in the Board's current regulations outdated. 
Additionally, the interpretation and application of NEPA requirements 
have evolved, technologies have advanced, the requirements of federal 
statutes have changed, changes to other regulations have occurred, and 
the Board's practices have changed.
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    \1\ 42 U.S.C. 4321-4370m-11.
    \2\ The NHPA, 54 U.S.C. 300101-307108, requires the Board to 
consider the effects of its actions upon historic properties. Under 
the CZMA, 16 U.S.C. 1451-1458, applicants seeking a license or 
permit for a project that would affect land or water use in a 
coastal zone are required to certify compliance with the coastal 
zone management program of affected states. The ESA, 16 U.S.C. 1531-
1544, requires agencies to consider possible impacts to federally-
listed threatened and endangered species and their habitats.
    \3\ Implementation of Env't L., 7 I.C.C.2d 807 (1991).
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    First, on February 25, 2025, CEQ issued an interim final rule in 
response to Executive Order (E.O.) 14154, Unleashing American Energy. 
See Removal of Nat'l Env't Pol'y Act Implementing Reguls., 90 FR 10610 
(Feb. 25, 2025). CEQ's interim final rule rescinded its NEPA 
implementing regulations at 40 CFR parts 1500 through 1508. The 
effective date of CEQ's interim final rule was April 11, 2025. Updates 
to the Board's current regulations are therefore necessary, as they 
refer to the now-rescinded CEQ regulations. See 49 CFR 1105.4, 
1105.5(a).
    Second, Congress amended NEPA in the Fiscal Responsibility Act of 
2023 (FRA), Public Law 118-5, 137 Stat. 10, signed on June 3, 2023, in 
which Congress added detail and direction in Title I of NEPA regarding 
procedural issues that CEQ and individual acting agencies had 
previously addressed in their own procedures. As amended by the FRA, 
NEPA provides additional requirements to facilitate timely and 
coordinated federal reviews, including provisions clarifying lead, 
joint lead, and cooperating agency designations; directing agencies to 
develop procedures for proposal sponsors to prepare Environmental 
Assessments (EAs) and Environmental Impact Statements (EISs); and 
prescribing page limits and deadlines. NEPA Sec.  107, 42 U.S.C. 4336a. 
Congress again amended NEPA in 2025 through section 60026 of the One 
Big Beautiful Bill Act, Public Law 119-21, 139 Stat. 157, signed on 
July 4, 2025, adding section 112 of NEPA, entitled, ``Project Sponsor 
Opt-in Fees for Environmental Reviews.'' This provision allows project 
sponsors to pay a fee to obtain shortened NEPA review deadlines. The 
Board recognizes the need to update its regulations considering these 
substantial legislative changes.
    Third, the U.S. Supreme Court recently issued a landmark decision 
in Seven County Infrastructure Coalition v. Eagle County, Colo., 605 
U.S. 168 (2025), which affirmed that agencies have broad discretion 
when conducting NEPA reviews, including with regard to the scope of the 
analysis in those reviews and the usefulness of those analyses to the 
decisionmaker in light of the agency's authority. The Board has 
incorporated this case's holdings into this proposed rule, which would 
govern the Board's future NEPA reviews and consideration of 
environmental impacts.
    In addition, pursuant to E.O. 14154, CEQ issued NEPA implementation 
guidance to federal agencies.\4\ The CEQ guidance includes a template 
for agency procedures to implement NEPA, which CEQ states is ``intended 
to provide clarity as to NEPA's requirements and promote consistency as 
to NEPA's implementation.'' To support such consistency, the Board has 
followed the agency procedures template to the extent practicable and 
in accordance with the Board's governing authorities and where doing so 
would not hinder the rail transportation policy to ensure the 
development and continuance of a sound rail transportation system. 49 
U.S.C. 10101(4).
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    \4\ Memorandum for Heads of Federal Departments and Agencies: 
Implementation of the National Environmental Policy Act (Sept. 29, 
2025) (available at https://nepa.gov). See 90 FR 47734 (Oct. 2, 
2025).
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    Accordingly, the Board is proposing to revise its environmental 
regulations to reflect current practices, recent court decisions, and 
the intervening statutory and regulatory changes.\5\ The Board finds 
that the proposed changes will improve the efficiency and quality of 
the Board's environmental reviews and make it easier for applicants to 
comply with the Board's environmental regulations. These revisions will 
also ensure the development and continuance of a sound rail 
transportation system and reduce regulatory barriers to entry into and 
exit from the rail industry in accord with 49 U.S.C. 10101.
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    \5\ Other parts of the Board's regulations include references to 
the Board's environmental regulations. See, e.g., 49 CFR 1106.4(b), 
1150.1(b), 1150.7, 1150.36, 1152.20(c), 1152.21(c), 1152.22, 
1152.50(d)(2), 1155.20(c), 1155.23(b), 1155.24, Appendix A to Part 
1155. The Board intends to issue technical revisions to those 
regulations as necessary to make them consistent with any revisions 
to its environmental regulations when it finalizes this rulemaking.
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Primary Proposed Updates and Revisions

    The proposed regulations, which would govern the environmental 
review process in Board proceedings, are set forth below. The key 
updates and proposed revisions include:
     Moving the delegation of authority from the Board to the 
Director of the Office of Environmental Analysis (OEA) for consistency 
with other Board regulations and revising those delegations to improve 
and streamline environmental reviews and the decision making process;
     Updating and clarifying the list of actions that do not 
require environmental review under NEPA;
     Clarifying the Board's process for determining the 
appropriate level of NEPA review;
     Proposing new ``categorical exclusions,'' or categories of 
actions that the Board has determined normally would not significantly 
affect the quality of the environment and, therefore, do not require 
the preparation of an EA or EIS, including categorically excluding 
abandonments and discontinuances from further environmental review 
where they would not involve salvage or substantial traffic diversions;
     Clarifying the Board's process for establishing, revising, 
adopting,

[[Page 14492]]

removing, and applying categorical exclusions;
     Updating the process for preparing EAs and EISs to conform 
to current agency practice and to reflect statutory changes to NEPA, 
including providing a more detailed description of the scoping and NOI 
process, clarifying when OEA may publish draft or preliminary 
documents, implementing deadlines and page limits, and updating the 
list of agencies and entities that OEA consults with during the 
environmental review process for abandonments and discontinuances;
     Adding processes for designating and coordinating among 
lead, cooperating, and participating agencies, consistent with NEPA;
     Limiting the use of applicant-prepared environmental 
reports to abandonments and discontinuances, modifying the information 
required for environmental reports to facilitate and expedite review, 
and requiring applicants who file environmental reports to begin agency 
consultations earlier to reduce unnecessary delays;
     Creating procedures for applicant-prepared EAs and EISs;
     Creating procedures for environmental review in emergency 
situations; and
     Incorporating procedures for environmental reviews related 
to the issuance of land-use-exemption permits for solid waste rail 
transfer facilities under the Clean Railroads Act (CRA), 49 U.S.C. 
10501(c)(2)(B) and 10908-10910.
    A section-by-section discussion of the proposed changes is detailed 
below. There are numerous minor changes to the regulations that are 
meant to clarify the process and make it easier to navigate for 
stakeholders and other interested entities but are not substantial 
enough to warrant discussion.

Part 1011--Board Organization and Delegations of Authority

Sec.  1011.2--The Board; Sec.  1011.7--Delegations of Authority by the 
Board to Specific Offices of the Board

    The Board proposes to update existing delegations and delegate 
additional authority to the Director of the OEA (Director) to 
streamline environmental and historic reviews and the Board's decision-
making process in such matters. The Board also proposes to move the 
existing delegations to the Director in 49 CFR 1105.2 to the Board's 
general delegations in 49 CFR part 1011. Moving the delegations 
provides consistency with other agency delegations. The move also 
clarifies the appeal process applicable to Director decisions.
    Some of the proposed delegations merely clarify the Director's 
existing authority under the current regulations (e.g., to direct the 
Board's implementation of NEPA and NHPA, to prepare documents under 
these regulations and provide interpretation of the Board's NEPA and 
NHPA processes, to reject applicant-prepared environmental reports not 
prepared in compliance with the environmental regulations, and to sign 
binding agreements pursuant to Section 106 of the NHPA). Consistent 
with the new proposed regulation regarding applicant-prepared EAs and 
EISs, the Director's delegated authority to reject applicant-prepared 
materials will include the authority to reject EAs and EISs as well. 
Two responsibilities that are currently delegated to the Chief Counsel 
are proposed to be re-delegated to the Director: to determine whether 
to impose, modify, or remove environmental and historic conditions and, 
in abandonment notice of exemption proceedings, to issue a Finding of 
No Significant Impact (FONSI).\6\ Under the current process, the Chief 
Counsel's decisions simply implement OEA's recommendations. Therefore, 
these re-delegations will cut out an unnecessary step in the decision-
making process and expedite the processing of these proceedings.
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    \6\ Accordingly, the Board also proposes to amend 49 CFR 
1011.7(a)(2) to remove these delegations.
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    Additionally, with regard to historic reviews, the Board proposes 
to delegate authority to the Director to act as the agency official for 
purposes of the NHPA in determining whether a proposed federal action 
is an undertaking and, if so, whether it is a type of activity that has 
the potential to cause effects on historic properties; and to determine 
the applicability of section 110(k) of the NHPA.

Part 1105--Procedures for Implementation of Environmental Laws

Sec.  1105.1--Purpose; Sec.  1105.2--Responsibility for Administration 
of These Rules; Sec.  1105.3--Information and Assistance

    The Board proposes minor changes to these sections that do not 
warrant discussion.

Sec.  1105.4--Definitions

    The Board proposes to add, update, and remove definitions to 
reflect current statutes (such as the Clean Air Act, NEPA, and the 
CRA), regulations, and judicial precedent, and to align with the 
proposed procedures outlined in the proposed regulations.

Sec.  1105.5--Determining When NEPA Applies

    The primary proposed revisions to this section identify categories 
of actions that are not subject to NEPA review. References to the NHPA 
have been removed from this section because it only addresses when NEPA 
applies.
    In paragraph (a), the Board proposes to delete obsolete references 
to the rescinded CEQ regulations and to clarify when NEPA does not 
apply to a proposed Board action.
    In paragraph (b), the Board proposes to provide a non-exhaustive 
list of Board actions that are not subject to NEPA because they do not 
meet the definition of a ``major federal action.'' To conform with 
changes in the law and promote efficiency, this list removes some of 
the actions not subject to NEPA from the current regulation and adds 
others.\7\
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    \7\ See, e.g., Padgett v. STB, 804 F.3d 103, 110 (1st Cir. 2015) 
(holding that the Board ``did not provide federal funds, approve or 
license the [proposed action], or otherwise manifest `indicia of 
control' over [the applicant] that would be sufficient to establish 
a `major Federal action' '').
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    With some clarifying edits, the Board retains two types of actions 
that are not subject to NEPA under the current regulations, a 
determination that a proposal or action is not within the Board's 
jurisdiction is retained (proposed 49 CFR 1105.5(b)(1)), as well as 
railbanking/interim trail use arrangements under the National Trails 
System Act, 16 U.S.C. 1247(d) (proposed 49 CFR 1105.5(b)(3)).
    The Board has received inquiries in the past regarding whether 
environmental review is required for certain types of actions that do 
not require approval from the Board, such as construction of ancillary 
track excepted from Board licensing under 49 U.S.C. 10906; rail line 
improvements, routine maintenance, operational changes; haulage 
arrangements; improvements or traffic changes to existing rail lines; 
construction of multiple tracks on an existing line; and track 
relocations. To clear any confusion, the Board proposes to add a new 
paragraph (proposed 49 CFR 1105.5(b)(2)) to describe types of 
activities that are not subject to the Board's licensing authority and, 
therefore, are also not subject to environmental review. The Board also 
proposes to add orders that are purely procedural to those actions that 
are not major federal actions (proposed 49 CFR 1105.5(b)(7)).
    The Board has further determined that certain actions that are 
categorically excluded from further environmental

[[Page 14493]]

review under our current regulations are more appropriately categorized 
as not major federal actions and proposes to move those under these 
regulations. The Board proposes to move declaratory orders and 
interpretations or clarifications of operating authority from 
categorical exclusions (current 49 CFR 1105.6(c)(1)(iii)) to actions 
that are not major federal actions (proposed 49 CFR 1105.5(b)(5)), 
pursuant to the holding and reasoning in Padgett. Based on the 
reasoning in Padgett and other relevant caselaw, the Board also 
proposes to move substitution of applicant and name changes from 
categorical exclusions (current 49 CFR 1105.6(c)(1)(iii)) to actions 
that are not major federal actions (proposed 49 CFR 1105.5(b)(6)).
    Further, the Board proposes moving termination of freight service 
under modified certificates from categorical exclusions (current 49 CFR 
1105.6(c)(4)) and adding initiation of freight service under modified 
certificates to those actions that are not major federal actions 
(proposed 49 CFR 1105.5(b)(8)) because the Board's action in these 
proceedings is essentially ministerial. See 49 CFR 1150.23, 1150.24 
(permitting operations to ``commence immediately upon the filing'' of a 
notice for a certificate of public convenience and necessity and to 
cease service `upon 60 days' notice of ``intent to terminate the 
service''). Finally, the proposed regulation removes ``NERSA'' 
abandonments (current 49 CFR 1105.5(c)(1)), as these are no longer 
being processed by the Board,\8\ and moves financial assistance 
arrangements under 49 U.S.C. 10904 (current 49 CFR 1105.5(c)(3)) to the 
categorical exclusion category (proposed 49 CFR 1105.7(a)(6)), based on 
changes in Board regulations, which have given the Board discretion to 
reject offers of financial assistance.\9\
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    \8\ The Northeast Rail Services Act of 1981 provided a window 
(ending in 1985) during which Consolidated Rail Corporation could 
qualify for streamlined abandonment procedures for its lines.
    \9\ See Offers of Fin. Assistance, EP 729 (STB served June 29, 
2017).
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Sec.  1105.6--Determining the Appropriate Level of NEPA Review

    Promoting government-wide consistency, the Board proposes to add 
this new section detailing OEA's process for determining the 
appropriate level of NEPA review for each proposed action. The Board 
proposes to move the lists of proposed actions that are categorically 
excluded from further environmental review, or for which an EA or EIS 
will normally be prepared, from the current 49 CFR 1105.6, 
``Classification of actions,'' to specific new sections addressing 
categorical exclusions, EAs, and EISs, as explained further below.
    The proposed regulations also delegate authority to the Director of 
OEA to reclassify or modify the environmental review requirements for 
any proceeding. This provides the needed flexibility to address the 
different environmental effects implicated in a particular proceeding, 
and it allows the Director, when appropriate, to facilitate 
environmental reviews for construction projects and eliminate 
unnecessary delays while meeting the requirements of NEPA.

Sec.  1105.7--Categorical Exclusions

    This proposed new section updates the Board's list of categorical 
exclusions and, promoting government-wide consistency, establishes the 
process that the Board will use in establishing, revising, adopting, 
removing, and applying categorical exclusions, as well as relying on 
other agencies' categorical exclusion determinations.
    Types of Actions. The Board proposes to update and add several 
categories to its existing categorical exclusions (See ``Substantiation 
Record of Proposed New and Revised Categorical Exclusions under NEPA,'' 
publicly available at https://www.stb.gov/resources/environmental).\10\ 
These proposed changes would establish five new categorical exclusions, 
modify six existing categorical exclusions, and remove three current 
categorical exclusions.
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    \10\ A copy of the ``Substantiation Record of Proposed New and 
Revised Categorical Exclusions under NEPA'' will also be attached as 
Appendix B to the version of this decision that will be posted on 
the Board's website at www.stb.gov.
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    These regulations propose to add one new categorical exclusion for 
an action that has been added to the Board's jurisdiction since the 
passage of the 1991 regulations: proceedings related to use of rail 
carriers' facilities and services by the National Railroad Passenger 
Corporation (Amtrak) under 49 U.S.C. 24308.\11\ The Board finds that 
this action is unlikely to have significant environmental effects 
unless it results in changes in operations that exceed the Board's 
environmental thresholds.
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    \11\ Section 24308 provides that, if a freight carrier and 
Amtrak cannot agree to terms for sharing facilities or providing 
services to Amtrak, the Board may, when appropriate, resolve the 
dispute and set terms and compensation for use and services. It 
further provides that the Board may order the freight carrier to 
provide or allow for the operation of additional Amtrak trains over 
such facilities.
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    The Board also proposes to revise the existing categorical 
exclusion at current 49 CFR 1105.6(c)(2) to include adjudications 
regarding ``practices and service.'' (See proposed 49 CFR 
1105.7(a)(2)). Adjudications regarding practices include claims 
relating to unfair and discriminatory practices. These actions do not 
normally have a substantial impact on future traffic volumes, and 
therefore do not normally result in significant environmental impacts. 
As to adjudications regarding service, rail operators on the lines 
within the interstate rail system have a common carrier obligation 
under 49 U.S.C. 11101, which means that rail carriers providing rail 
service subject to the Board's jurisdiction must provide service upon 
reasonable request. Adjudications involving service can involve a 
determination of whether a carrier holds the obligation or whether a 
carrier has met that obligation. These actions often involve economic 
damages for past actions and do not normally have a substantial impact 
on future traffic volumes. Therefore, the Board finds that these 
actions do not normally cause environmental impacts requiring NEPA 
review.
    In proposed 49 CFR 1105.7(a)(7), the Board proposes a new 
categorical exclusion to exclude reciprocal switching agreements from 
further environmental review. Prescription of agreements under those 
regulations are not expected to result in environmental effects and 
have previously been found ``closely analogous'' to the common use of 
rail terminals, which is categorically excluded under our current 
regulations.\12\
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    \12\ Cape Cod & Hyannis R.R.--Exemption from 49 U.S.C. Subtitle 
IV, FD 31229, slip op. at 2 (ICC served Mar. 25, 1988).
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    Additionally, the Board proposes new categorical exclusions for 
some proposals that would typically require an EA under our current 
regulations: the construction of connecting track and certain types of 
abandonments and discontinuances. First, the Board proposes to 
categorically exclude from further environmental review construction of 
connecting track within an existing right-of-way or on land owned by 
the connecting railroads or the applicant. In the Board's experience, 
such projects rarely have environmental impacts due to their locations 
on already disturbed, existing rights-of-way or in pre-existing 
industrial areas.
    Second, the Board proposes to expand the current categorical 
exclusions regarding discontinuances and to add certain abandonments. 
The Board's proposed regulations maintain the current categorical 
exclusion for discontinuances of trackage rights where the affected 
line will continue to

[[Page 14494]]

be operated and add, for clarity, the phrase ``within Board 
jurisdiction.'' (See current 49 CFR 1105.6(c)(5) and proposed 49 CFR 
1105.7(a)(4)).
    The Board also proposes to add a new categorical exclusion at 
proposed 49 CFR 1105.7(a)(1)(ii) for abandonments and discontinuances 
without traffic diversions that exceed the Board's environmental 
thresholds and, in the case of abandonments, where salvage will not 
occur prior to the consummation of abandonment authority or entry into 
an interim trail use agreement. In the Board's experience, salvage and 
traffic diversions are the only potentially reasonably foreseeable 
activities caused by abandonments (or, in the case of traffic 
diversions, discontinuances) that have the potential to affect the 
environment.\13\
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    \13\ The Board does not expressly authorize such diversions, nor 
does it expressly authorize salvage except when issuing a 
certificate or notice of interim trail use or abandonment pursuant 
to 49 CFR 1152.29. And the Board generally does not regulate a 
railroad's routing decisions or decisions it makes regarding 
disposition of rail property. See, e.g., Norfolk S. Ry.--Aban. 
Exemption--in the City of Greensboro, NC, AB 290 (Sub-No. 404X), 
slip op. at 5 (STB served June 28, 2023) (``[R]ail carriers often 
sell, lease, or transfer parts of their rights-of-way under state 
law for other purposes, such as utility lines, and they are not 
required to seek Board authority to do so.''); Protect Sudbury 
Inc.--Pet. for Declaratory Ord., FD 36493, slip op. at 5 (STB served 
Feb. 2, 2022) (recognizing that a carrier may ``even remove track on 
a line over which it has a common carrier obligation, as long as no 
shipper seeks service and the carrier is prepared to restore the 
track should it receive a reasonable request for service''). The 
Board considers potential environmental impacts from diversions (in 
the case of discontinuance and abandonment) and salvage (in the case 
of abandonment) because they may be reasonably foreseeable 
consequences of those agency decisions. See also Iowa S. R.R.--
Exemption--Aban. in Pottawattamie, Mills, Fremont, & Page Cntys., 
Iowa, 5 I.C.C.2d 496, 501 (1989), aff'd, Goos v. ICC, 911 F.2d 1283 
(8th Cir. 1990).
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    When the current environmental regulations were implemented in 
1991, the abandonment of rail lines with existing traffic was more 
common. In contrast, most of the abandonments the Board authorizes now 
are on rail lines that qualify for the class exemption at 49 CFR 
1152.50. Such lines have not been used to support local service (i.e., 
rail movements originating or terminating on the line) for two years, 
and often have not been used to support overhead traffic either, which 
means that substantial traffic diversions from abandonments are rare 
today. To account for the rare case in which an abandonment may result 
in traffic diversions that could cause environmental effects, the 
categorical exclusion would not apply to abandonments or 
discontinuances when those diversions would exceed the Board's 
environmental thresholds.
    With regard to salvage, the proposed regulations categorically 
exclude abandonments from further environmental review unless salvage 
would occur prior to consummation of the abandonment or entry into an 
interim trail use agreement. This limitation is proposed because rail 
property is privately owned, and the Board has regulatory authority 
over it only while it is part of the interstate rail system and subject 
to the Board's jurisdiction. Once a railroad consummates the 
abandonment, the Board has no jurisdiction over the rail line or any 
control over disposition of the rail property.\14\ See also Seven 
Cnty., 605 U.S. at 186-188 (holding that NEPA does not require that 
agencies evaluate potential environmental effects arising from 
``future'' projects, ``particularly'' those over which the Board does 
not ``exercise regulatory authority''). Moreover, it is not always the 
case that salvage occurs post-abandonment as the track, ties, and other 
rail property may be used to support non-jurisdictional rail 
activities, such as intrastate passenger excursion service and public 
transportation provided by a local government authority. See, e.g., 49 
U.S.C. 10501(c)(2); Denver & Rio Grande Ry. Hist. Found.--Pet. for 
Declaratory Ord., FD 35496, slip op. 5 (STB served Mar. 24, 2015).
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    \14\ Preseault v. ICC, 494 U.S. 1, 5 n.3 (1990); Hayfield N. 
R.R. v. Chi. & NW Transp., 467 U.S. 622, 632 (1984) (explaining that 
when a rail line is abandoned for purposes of the STB's regulatory 
jurisdiction, the underlying right-of-way becomes ``ordinary real 
property,'' and its disposition becomes subject to the application 
of state property law).
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    Further, as explained when promulgating the current version of the 
Board's environmental regulations, the Board ``do[es] not have the 
power to force a railroad to sell (or donate) its property, or impose a 
restrictive covenant upon the deed, as a condition to obtaining 
abandonment or acquisition authority.'' \15\ Without such authority, 
there is no reason for the Board to consider the potential effects 
arising from salvage that takes place post-abandonment.\16\ See Seven 
Cnty., 605 U.S. at 183 (``doubly underscor[ing]'' that inherent in NEPA 
is a rule of reason that ensures that agencies determine the extent of 
environmental review ``based on the usefulness of any new potential 
information to the decision making process'').
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    \15\ Implementation of Env't Laws, 7 I.C.C.2d at 828-29; see 
also id. at 829 (``We lack the statutory power to require a railroad 
to sell a right-of-way for any purpose other than continued rail 
service under 49 U.S.C. [ ] 10905, 10910 or (in limited 
circumstances) 11343.''). The Board subsequently issued a non-
binding policy statement that included a statement suggesting that 
the Board retained certain post-abandonment statutory authority. 
Consummation of Rail Line Abans. that are Subject to Historic Pres. 
& Other Env't Conditions, EP 678, slip op. at 5 (STB served April 
23, 2008) (stating that an environmental condition on salvage 
``remains in place as a condition that attaches to the property and 
applies to salvage activities whenever they occur'' and that ``any 
successor in interest [must] agree to the condition by referencing 
the condition in the purchase contract''). For the reasons stated 
above, the Board clarifies that such language in the 2008 policy 
statement is rescinded and confirms here that, because it lacks any 
authority over rail property that is no longer subject to Board 
jurisdiction, it cannot impose conditions that attach to the 
property following consummation.
    \16\ In past proceedings, the Board has imposed conditions that 
were not limited to pre-consummation applicability, many of which 
related to consultation with third parties. See, e.g., Alcoa Energy 
Services, Inc.--Aban. Exemption--in Milam Cnty., Tex., AB 1291X (STB 
served March 9, 2020) (condition to notify the National Geodetic 
Survey 90 days prior to any salvage activities). In this rulemaking, 
the Board clarifies that it will be applying that limitation going 
forward and, above, explains the legal basis for this clarification.
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    The limitation of environmental review when there is salvage prior 
to entry into an interim trail use agreement is also appropriate 
because once the rail carrier has entered into an interim trail use 
agreement, the Board has a largely ministerial role under the Nation 
Trails Systems Act (Trails Act) 16 U.S.C. 1247(d).\17\ For that reason, 
under current agency practice, the Board does not require compliance 
with environmental and historic conditions with ``respect to any 
portion of a line covered by the interim trail use agreement for the 
duration of the agreement.'' See, e.g., E. Idaho R.R.--Aban. 
Exemption--in Bonneville Cnty., Idaho, AB 1252 (Sub-No. 1X), slip op. 
at 5 n.3 (STB served June 5, 2020); Final Env't. Assessment, E. Idaho 
R.R.--Aban. Exemption--in Bonneville Cnty., Idaho, AB 1252 (Sub-No. 
1X), slip op. at 3 (STB served June 2, 2020) (explaining that such 
compliance is not required because interim trail use under the Trails 
Act is not a ``federal action that is subject to environmental review 
under NEPA'').
---------------------------------------------------------------------------

    \17\ See Citizens Against Rails-to-Trails v. STB, 267 F.3d 1144, 
1151-52 (D.C. Cir. 2001); Goos v. ICC, 911 F.2d at 1295.
---------------------------------------------------------------------------

    In most discontinuances, salvage is not reasonably foreseeable 
because the line remains within the Board's jurisdiction and available 
for common carrier rail service.\18\ But there are some cases where 
discontinuance terminates the Board's jurisdiction: for example where a 
railroad has received authority

[[Page 14495]]

to operate over an already-abandoned line.\19\ But in those cases, the 
Board has no control over the rail property post-discontinuance, or 
authority to impose salvage-related environmental conditions, and thus 
environmental review is not required under NEPA.
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    \18\ The Board notes that the current regulations require an EA 
for discontinuances, however, in discontinuances where the rail line 
has not been authorized for abandonment, the Board typically does 
not prepare an EA, because any such environmental review would occur 
when abandonment authority is sought.
    \19\ Iowa Traction Ry.--Discontinuance of Serv. Exemption--in 
Cerro Gordo Cnty., Iowa, AB 1269 (Sub-No. 1X), slip op. at 3 (STB 
served Apr. 6, 2020) (citing Wisc. Cent. Ltd. v. STB, 112 F.3d 881, 
890 (7th Cir. 1997)); see also Midcoast Rail Serv. Inc.--
Discontinuance of Serv. Exemption--in Cumberland, Knox, Lincoln, 
Sagadahoc Cntys., Me., AB 1341X, slip op. at 4-5 (STB served Dec. 3, 
2024).
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    As noted above, the Board proposes to move offers of financial 
assistance from the category of actions that are not a major federal 
action (current 49 CFR 1105.5(c)(3)) to the categorical exclusion 
category (proposed 49 CFR 1105.7(a)(6)), and to move declaratory 
orders, interpretations or clarifications of operating authority, 
substitution of an applicant or name changes, and termination of 
freight service under modified certificates from the categorical 
exclusion category (current 49 CFR 1105.6(c)(1)(iii), (c)(4)) to the 
category of actions that are not major federal actions (proposed 49 CFR 
1105.5(b)(5), (6), (8)).
    The proposed regulations also remove the categorical exclusion for 
determinations of the fact of competition (which applied to water 
carriers) because that type of determination is no longer within the 
Board's jurisdiction. See ICCTA, Public Law 104-88 (1995) (removing 
reference to ``determinations of the fact of competition'' from Board's 
authorizing legislation).

1105.8--Environmental Assessments

    The Board proposes to add a new section outlining the EA process. 
This section adds the statutory standard for preparing an EA, lists the 
types of actions for which an EA will typically be prepared, 
incorporates amendments to NEPA, and outlines the different processes 
for issuing EAs in abandonments or discontinuances, and all other 
cases. This reflects the Board's current practice in which OEA 
typically prepares the EA in abandonment and/or discontinuance cases, 
while in other cases, the EA is typically prepared by a third-party 
contractor under OEA's direction.
    Types of Actions. The current regulations list actions that will 
require an EA if the thresholds in current 49 CFR 1105.16(d) and (e) 
are exceeded.\20\ The Board proposes adding an explicit reference to 
``feeder line sales'' (which were already included in the provision 
under 49 U.S.C. 10907) to the list of actions in 49 CFR 1105.8(b)(1) 
requiring an EA when the action would exceed the thresholds or would be 
part of an action that would require environmental documentation (such 
as a new rail construction). The current regulations provide for 
preparation of an EA in all abandonment and discontinuances under 49 
U.S.C. 10903, and the proposed regulations would limit preparation of 
an EA only to those resulting in diversion of traffic to other rail 
lines that would exceed the thresholds, that are not part of another 
action that would require environmental documentation, or, in the case 
of an abandonment, if salvage would occur prior to consummation or 
entry into an interim trail use agreement, as explained in more detail 
above. Additionally, the Board proposes to delete references to NERSA 
abandonments as they are no longer reviewed by the Board.\21\ Other 
actions that the Board proposes to remove from actions requiring an EA 
have been moved to categorical exclusions for the reasons explained 
above.
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    \20\ The Board's environmental regulations use traffic 
thresholds to determine whether operational changes related to 
certain types of actions that require Board authorization have the 
potential to result in significant environmental effects. The 
general thresholds for assessing environmental effects from 
increased traffic are an increase in rail traffic of at least 100% 
(measured in gross ton miles annually) or an increase of at least 
eight trains per day. The Board's thresholds for assessing 
environmental impacts from increased rail traffic have been moved 
but remain unchanged from the current regulations.
    \21\ Discontinuance of service over rail lines that were 
abandoned under NERSA will be treated as any other discontinuance 
under these rules.
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    EA Process in Cases Other than Abandonments and Discontinuances. 
With respect to cases other than abandonments and discontinuances, the 
Board proposes to update the EA process to reflect updates to NEPA.\22\ 
The proposed EA process will be similar to that outlined in more detail 
below for an EIS, but an EA is shorter and subject to shorter 
deadlines. The section requires an applicant to provide written notice 
of its proposal 45 days prior to seeking authority from the Board to 
reduce waiver requests and make the EA and EIS processes consistent and 
proposes to add procedures for prefiling notice and consultation with 
OEA in the event an applicant elects to proceed under section 112 of 
NEPA (42 U.S.C. 4336f) in a proceeding. It also explains that the 
Director of OEA will determine whether to prepare an EA and includes a 
description of the scoping process, as well as outlines agencies that 
OEA may consult during the process of preparing an EA.
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    \22\ See FRA, Public Law 118-5, 137 Stat. 10.
---------------------------------------------------------------------------

    The section also adds a new paragraph allowing for the issuance of 
a Notice of Intent (NOI) after OEA determines that preparation of an EA 
is appropriate. In contrast to the EIS process, which is described in 
more detail below, NEPA does not require the issuance of an NOI or a 
public comment period for EAs. Therefore, the Board proposes to issue 
an NOI where appropriate when preparing an EA. The section also 
outlines the content that an EA will generally contain and incorporates 
the deadlines and page limits from recent amendments to NEPA.
    Under the proposed EA process, OEA will prepare, and the Board 
generally will publish, one EA document (instead of a draft followed by 
a final). Notably the Board's current regulations for EAs do not 
require a draft EA. In general, however, the Board's practice has been 
to prepare and issue a draft EA. The Board intends to modify its 
practice and issue a single EA consistent with the proposed EIS process 
and the language in NEPA, as described in more detail below in the EIS 
section. Nevertheless, the revisions reflect that during the process of 
preparing an EA, OEA may publish draft or preliminary documents when, 
in its judgment, doing so is needed to fulfill its responsibilities 
under NEPA and these regulations.
    EA Process in Abandonments and Discontinuances. The proposed 
regulation outlines how OEA will prepare an EA in abandonment and/or 
discontinuance cases, in line with OEA's current process. The Board 
also proposes to update the list of agencies and entities that are 
consulted when preparing an abandonment or discontinuance EA. Under the 
current regulations, this list is contained in 49 CFR 1105.7(b). As 
described below in detailing the proposed revisions to the Board's 
environmental reports regulation, consultation with these agencies and 
entities is necessary for OEA to meet the short regulatory deadlines 
for environmental reviews in abandonment and discontinuance cases. The 
Board proposes to add the National Marine Fisheries Service, the U.S. 
Coast Guard, and state departments of transportation, and to remove 
state clearinghouses as obsolete.

Sec.  1105.9--Environmental Impact Statements

    The Board proposes to add a new section outlining the EIS process. 
The new section primarily codifies existing Board practices and 
incorporates the amendments to NEPA, as well as lists

[[Page 14496]]

the types of actions for which the Board typically prepares an EIS.
    Types of Actions. The Board will continue to require preparation of 
an EIS for new rail line construction proposals but will more clearly 
limit it to those that are not categorically excluded or have not been 
reclassified pursuant to a determination by the Director. In addition, 
the Board proposes to require preparation of an EIS for a solid waste 
rail transfer facility land-use-exemption under the CRA. The CRA 
limited the Board's authority with regard to solid waste rail transfer 
facilities to the issuance of land-use-exemption permits, a license 
that preempts a facility from compliance with state laws, regulations, 
orders, and other requirements affecting the siting of the 
facility.\23\ Because solid waste rail transfer facilities have the 
potential for significant environmental impacts, the Board has 
concluded that an EIS should normally be prepared for each land-use-
exemption-permit application.\24\
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    \23\ The Board, however, has the authority to require, as a 
condition of the land-use exemption permit, compliance with state 
laws, regulations, orders, and other requirements that affect the 
siting of a facility. 49 U.S.C. 10909(f).
    \24\ See Solid Waste Rail Transfer Facilities, EP 684 (STB 
served Mar. 24, 2011).
---------------------------------------------------------------------------

    EIS Process. In actions that require or contemplate the preparation 
of an EIS, the Board proposes to reduce the six-month prefiling notice 
requirement in current 49 CFR 1105.10(a)(1) to 45 days. Because 
applicants in these cases often have not finalized the details of their 
proposals six months in advance, OEA receives a large number of 
requests for waiver of the prefiling notice, and the Board believes 
shortening this notice requirement to 45 days is reasonable and would 
streamline the existing EIS process by reducing the number of waiver 
requests.\25\ The Board also proposes to add procedures for prefiling 
notice and consultation with OEA in the event an applicant elects to 
proceed under section 112 of NEPA (42 U.S.C. 4336f) in a proceeding.
---------------------------------------------------------------------------

    \25\ While the proposed regulations do not specifically require 
it, the Board strongly encourages applicants to file their petition 
or application with the Board no later than 45 days after filing 
their prefiling notice with OEA to prevent unnecessary delay. OEA 
has found that it usually needs the detailed information concerning 
rail operations in the petition or application to be able to move 
forward expeditiously with the environmental review process.
---------------------------------------------------------------------------

    Additionally, the Board proposes to add the statutory standard for 
preparing an EIS, provide a more detailed description of the scoping 
process, outline the agencies that OEA is required to obtain comments 
from pursuant to section 102 of NEPA, provide that the Director will 
determine whether to prepare an EIS and notify the applicant in writing 
of the determination, outline the content that an EIS will generally 
contain, and incorporate the deadlines and page limits from amendments 
to NEPA.\26\ The Board also proposes to add references to encourage e-
filing of comments and to note that an EA or EIS is publicly available 
on the Board's website, and to delete as unnecessary the requirement in 
our current regulations that copies of environmental communications 
must be sent to the applicant.
---------------------------------------------------------------------------

    \26\ See FRA, Public Law 118-5, 137 Stat. 10.
---------------------------------------------------------------------------

    The Board further proposes to amend its current EIS process to 
eliminate the preparation and publication of a draft EIS, which is not 
statutorily required by NEPA. Instead, OEA will prepare, and the Board 
generally will publish, one EIS document (instead of a draft followed 
by a final). Nevertheless, the revisions reflect that during the 
process of preparing an EIS, OEA may publish draft or preliminary 
documents when, in its judgment, doing so is needed to fulfill its 
responsibilities under NEPA and these regulations.
    Consistent with NEPA, a public comment period will be provided 
after the Board issues the Notice of Intent (NOI) to prepare an EIS. 
The NOI will be more fulsome than under the current process and will 
include a preliminary description of the proposed action and 
alternatives, a summary of environmental effects, and other pertinent 
information. The NOI will serve as an opportunity for interested 
members of the public to provide substantive comments early in the 
environmental review, and the EIS will be informed by any public 
comments received on the NOI. The Board proposes to remove the 
requirement to issue a Final Scope of Study after comments are received 
on the NOI. The Board has determined that, consistent with the language 
of NEPA and other agencies' practices, a Final Scope of Study is not 
necessary to address public comments on the NOI (which is the Board's 
current practice), as those will be addressed, as appropriate, in the 
EIS. Overall, these changes will streamline and expedite the 
environmental review process, while still maintaining a meaningful 
opportunity for public comment.
    The current regulations, at 49 CFR 1105.10(a)(4), provide that a 
draft EIS will be made available to the public prior to any oral 
hearing held on the transportation merits of a proposal. The Board 
proposes removing this provision because the proposed regulations will 
eliminate the draft EIS requirement, and a hearing on the 
transportation merits is not part of the NEPA process. Moreover, there 
is ample opportunity for public comment and participation in the EIS 
process (both written and orally at public meetings). The current 
regulations also provide for a 45-day comment period following service 
of the draft EIS. Because the proposed regulations do not include a 
requirement for a draft EIS, this comment period is extraneous, and the 
Board proposes to remove it.

Sec.  1105.10--Supplements to Environmental Assessments and 
Environmental Impact Statements

    The Board proposes to provide more detail on the process for 
determining when a supplemental EA or EIS will be prepared. These 
additions are consistent with the Board's current process and are added 
to provide clarity.

Sec.  1105.11--Lead, Cooperating, and Participating Agencies

    The Board proposes to add a section with provisions addressing 
lead, cooperating, and participating agencies.

Sec.  1105.12--Third-Party Contractors

    The proposed regulations move the paragraphs addressing third-party 
contractors in the current regulations (49 CFR 1105.4(j) and 
1105.10(d)) to a new section and clarify the process for using them. 
The only substantive proposed change is to require the contractor to 
execute a disclosure statement certifying that it has no financial or 
other interest in the outcome of the proposal.

Sec.  1105.13--Environmental Reports for Abandonments and 
Discontinuances

    Under the current regulations, before seeking Board licensing 
authority for proposals that require the preparation of an EA or EIS, 
applicants must consult with appropriate agencies and prepare and 
submit environmental and historic reports under 49 CFR 1105.7 and 
1105.8.\27\ The Board proposes to limit the use of environmental 
reports only to abandonment and discontinuance proposals that are not 
categorically excluded from further environmental review to align the 
Board's regulations with its current practice and lessen the burden on 
stakeholders by requiring them only in these circumstances. As 
previously noted, in abandonments and discontinuances, OEA (rather than 
a

[[Page 14497]]

third-party contractor) prepares the EA under short regulatory 
deadlines based on information provided by the applicant. The 
information in these reports assists OEA in evaluating potential 
environmental effects and provides information needed for the public 
and other agencies to comment on the proposal.
---------------------------------------------------------------------------

    \27\ In these proposed revisions, the Board retains its current 
regulation regarding the historic review and reporting process. 
Proposed 49 CFR 1105.14 retains all the language that is in current 
49 CFR 1105.8.
---------------------------------------------------------------------------

    Consultations. Early consultation with federal, state and local 
agencies, as well as affected communities, is essential to conducting 
meaningful environmental review, and the proposed regulations continue 
the Board's existing practice of requiring applicants to send 
environmental reports to consulting agencies for comment prior to 
filing them with the Board. As stated above, proposed 49 CFR 
1105.8(d)(1) updates the list of agencies and entities with which 
applicants must consult in preparing their environmental reports. The 
Board also proposes to extend the timeframe for agency consultations 
from 20 days prior to filing the environmental report to 45 days prior. 
Consulting agencies frequently state that they lack enough time to 
review the reports, and this change would give consulting agencies 
sufficient review time to provide comments without unduly delaying the 
time when applicants may seek Board authority.\28\
---------------------------------------------------------------------------

    \28\ In the Board's experience, agencies often submit 
information late, after the current 20-day timeframe, or sometimes 
not at all, which delays the Board's environmental review process.
---------------------------------------------------------------------------

    Further, to ensure that applicants submit complete environmental 
reports with the current information needed for OEA to properly assess 
the reports, proposed paragraphs (c) and (f) allow the Director to 
reject an environmental report if it does not provide the appropriate 
level of information for OEA to conduct the review or if the 
environmental report includes outdated agency responses.\29\
---------------------------------------------------------------------------

    \29\ Responses or letters that predate the applicant's filing by 
more than two years.
---------------------------------------------------------------------------

    Content. The proposed regulations require that environmental 
reports include the content described in 49 CFR 1105.16. As explained 
below in more detail, the Board has updated the content that will be 
contained in environmental reports, EAs, and EISs. Most of the 
information should be readily available to applicants or can be easily 
located online.\30\ By requiring accurate and limited additional 
information in environmental reports, consulting agencies should have a 
better understanding of the nature of proposed abandonments and would 
be more likely to provide useful input earlier in the consultation 
process. As a result, OEA would be better able to evaluate the proposal 
and its potential environmental impacts in the short regulatory time 
period. Moreover, with improved environmental reports and more timely 
and constructive feedback from agencies, the number of consultation 
conditions should be significantly reduced because the Board would not 
need to impose conditions based on lack of information.
---------------------------------------------------------------------------

    \30\ For example, when assessing impacts to biological 
resources, we recommend that applicants use the U.S. Fish and 
Wildlife Service's online system, IPaC (Information, Planning, and 
Conservation System), which is available at http://ecos.fws.gov/ipac/. IPaC provides information about sensitive resources within 
the vicinity of a proposed project and can facilitate applicants' 
ability to report whether any federally threatened or endangered 
species, designated critical habitat, or other natural resources of 
concern may be affected by a proposal. Use of this online system 
should result in more accurate and complete environmental reports, 
which would reduce the time and effort needed to secure responses 
from the U.S. Fish and Wildlife Service in individual cases.
---------------------------------------------------------------------------

Sec.  1105.15--Applicant-Prepared Environmental Assessments and 
Environment Impact Statements

    The Board proposes to add a section establishing a process by which 
an applicant can request and, if granted permission, prepare an EA or 
EIS under the supervision of OEA. The proposed regulations exclude 
abandonment and discontinuance proposals from this category, as OEA 
will continue to prepare EAs in those cases that require environmental 
review because of the short regulatory deadlines. The proposed 
regulations outline criteria that must be met for permission to be 
granted for an applicant-prepared EA or EIS.

Sec.  1105.16--Content in Environmental Assessments and Environmental 
Impact Statements

    The Board proposes to add a section outlining the content that will 
be included in any EA or EIS. This subsection is also referenced as the 
content that will be contained in an EA or EIS, see proposed 49 CFR 
1105.8(c)(7) & (d)(3), 1105.9(i), and the content that must be 
contained in an environmental report for abandonments and 
discontinuances that require an environmental review, see proposed 49 
CFR 1105.13(e). Much of this content is outlined in the current 49 CFR 
1105.7(e); however, the Board proposes to clarify the requirements and 
update them to reflect current law and practice, and ensure that 
environmental reports, EAs, and EISs include the necessary information 
and analysis. Some changes require additional information, while others 
eliminate information requirements that are no longer relevant or 
useful.
    (a) Proposal. Proposed 49 CFR 1105.16(a) requires more detailed 
information about the action proposed, such as current traffic on the 
line and a more detailed map of the proposal. Maps that clearly show 
the location of the rail line and the surrounding resources are 
necessary for OEA to verify data provided. High quality maps also 
expedite the environmental review process by saving OEA staff from 
having to attempt to interpret deficient maps and by reducing the 
number of information requests to applicants. This paragraph eliminates 
the requirement to provide alternatives, as these are only applicable 
in construction cases. It clarifies language regarding changes 
associated with abandonments, from a description of ``planned 
disposition (if any) of any . . . other structures that may be 
involved'' to a description of ``land disturbance within and outside 
the right-of-way'' and ``buildings, bridges, or other structures (to 
include track and ties in abandonment proposals) to be removed.'' It 
also removes the requirement to include a description of ``changes in 
maintenance practices,'' as OEA generally does not find this 
information relevant to its environmental review.
    (b) Transportation System. Proposed 49 CFR 1105.16(b) adds 
requirements to provide more information to be submitted when rail-to-
truck diversions are expected to occur, specifically to identify the 
roadways to be impacted, the current average daily roadway traffic and 
expected increase in traffic, and a description of roadway capacity 
constraints.
    (c) Land Use. The Board proposes to add designated flood zones and 
erosion mitigation practices to our requirements for land use.\31\ The 
Board also proposes to move requirements relating to the CZMA that are 
in current 49 CFR 1105.9 to this paragraph and to update the reference 
to the appropriate federal agency addressing prime agricultural land.
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    \31\ E.O. 11988, ``Floodplain Management,'' requires Federal 
agencies to avoid adversely impacting floodplains wherever possible 
and to reduce the risk of flood loss and minimize the impact of 
floods on human safety, health, and welfare.
---------------------------------------------------------------------------

    (d) Energy. The Board proposes to delete the current energy 
requirements to describe the effect of the proposed action on 
recyclable commodities, because such effects have not been an issue in 
Board proceedings for many years, and to make additional non-
substantive clarifying changes.

[[Page 14498]]

    (e) Air. The Board proposes to clarify the thresholds applicable to 
attainment and nonattainment areas, but the thresholds remain the same. 
As part of that clarification, the proposed regulation makes explicit 
that, when a threshold is exceeded, the anticipated effect on air 
emissions must be measured. The Board also proposes to eliminate the 
requirement addressing whether diversion or rerouting of ozone 
depleting materials is contemplated.\32\
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    \32\ As a result of a phase out program established under the 
Clean Air Act in the 1990s, chlorofluorocarbons (CFCs or ``freon'') 
and other important ozone depleting substances are no longer being 
manufactured or imported into the United States. 
Hydrochlorofluorocarbons (HCFCs), which are lesser ozone depleting 
substances, are also in the process of being phased out. Therefore, 
it is unlikely that ozone depleting substances will be transported 
by rail in substantial amounts. See U.S. Env't Prot. Agency, 
Phaseout of Ozone-Depleting Substances, https://www.epa.gov/ods-phaseout (last visited March 18, 2026).
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    (f) Noise and Vibration. The Board proposes to add the term 
``vibration'' to this paragraph to reflect the fact that environmental 
analyses typically evaluate noise and vibration together if the Board's 
thresholds for noise impacts are met. With respect to noise impact 
analysis, the Board proposes to remove the current requirement to state 
whether the proposed action would cause an increase in noise levels of 
three decibels Ldn \33\ or more or an increase to a noise level of 65 
decibels Ldn or greater. Instead, the Board proposes to add that 
environmental noise and vibration analysis will be conducted to 
characterize any effects resulting from the proposed action. The Board 
intends to use guidance from the Federal Transit Administration (FTA) 
\34\ in these analyses because it is a more nuanced way to measure 
noise impacts. The Board's current approach counts the number of 
receptors exposed to 65 decibels Ldn and 3 decibels or greater, whereas 
the FTA guidance characterizes the level of impact on each receptor. 
Consistent with the practices of other rail-related agencies and based 
on the Board's experience of following the FTA guidance in recent 
cases, it has concluded that the purposes of NEPA are better served by 
using this method.
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    \33\ A decibel is the unit used to measure the magnitude of 
sound level based on a logarithmic scale that compresses the range 
of sound pressures audible to the human ear. The most commonly used 
measure of noise is expressed in ``dBA,'' which refers to decibels 
of noise on an ``A'' weighted scale (noise audible to human ear). 
``Ldn'' means average noise exposure over a 24-hour period, with an 
additional 10-decibel noise weighting during nighttime hours 
(between 10 p.m. and 7 a.m.), to account for increased sensitivity 
to noise at night.
    \34\ Transit Noise & Vibration Impact Assessment Manual, FTA 
(2018).
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    (g) Safety. The Board proposes clarifying changes to this provision 
to conform to current practice.
    (h) Biological Resources. The Board proposes to clarify the nature 
of its consultation with NOAA Fisheries (which has jurisdiction over 
certain fish), add the option to reference U.S. Fish and Wildlife 
Service's electronic database instead of direct consultation with U.S. 
Fish and Wildlife Service when feasible, and add language for 
consistency with the ESA.
    (i) Water. The Board proposes to add requirements to consult with 
federal water quality officials in addition to state water quality 
officials and to indicate whether any waters of the United States 
(including lakes, streams and wetlands) or navigable waterways would be 
affected. The Board also proposes to add a reference to the River and 
Harbors Act, and to remove other unnecessary language.
    (j) Cultural Resources. The Board proposes to add this paragraph, 
to reflect that it generally coordinates its historic reviews with its 
environmental reviews, and to note that a section 106 review under the 
NHPA must be conducted if required.
    (k) Voluntary Mitigation. The Board proposes to add ``voluntary'' 
to this paragraph to clarify that an EA or EIS should include a 
description of any proposed voluntary mitigation offered by applicants, 
while OEA will determine whether to recommend any other mitigation, and 
the Board will determine whether to impose any mitigation.
    (l) Additional Information in Rail Construction Cases. The Board 
proposes to update the additional information required for rail 
constructions by deleting unnecessary provisions and requiring more 
information on alternatives, rail operations, air, and safety impacts. 
For example, an EA or EIS will include specific information on air and 
safety impacts, such as the measurement of air quality effects based on 
construction activities, idling vehicles at crossings, and reasonably 
foreseeable changes in operations, as well as a description of the 
procedures that would be used for storing and fueling construction 
equipment. The inclusion of this information would expedite and improve 
environmental review of proposed rail constructions by providing OEA 
with more detailed, relevant, case-specific information at the 
beginning of the environmental review process.
    The Board will no longer require a description of ``down-line 
impacts''--i.e., impacts from rail operations along existing rail line 
segments from trains originating or terminating on a proposed new rail 
line. Nevertheless, the Board has discretion to draw the lines as to 
``how far'' it will ``go in considering the indirect effects that might 
occur outside the area of the immediate project.'' Seven County, 605 
U.S. at 182. As a result, project-specific determinations will be made 
with respect to the analysis of indirect downline impacts.
    The Board also proposes to align the Board's regulations with its 
current practice requiring a noise and vibration analysis for every 
construction or land-use-exemption permit, regardless of the projected 
number of trains. Thresholds (which help OEA determine when a noise 
analysis is required based on the projected increase in train traffic 
or rail yard activity) are appropriate for certain actions involving 
traffic changes on existing lines. However, in OEA's experience, 
thresholds are generally not appropriate for proposals to build new 
rail lines or requests for land-use-exemption permits, because these 
types of rail projects introduce entirely new rail traffic and new 
sources of noise and vibration (including temporary noise and vibration 
associated with construction, and permanent noise and vibration 
associated with rail operations).
    Finally, the Board proposes to delete the requirement to discuss 
impacts on essential public services, public roads, and adjoining 
properties as redundant. The Board does not view this as a substantive 
change because these impacts are required to be considered under other 
resource areas, such as transportation system (at proposed 49 CFR 
1105.16(b), noise and vibration (at proposed 49 CFR 1105.16(f)), and 
safety (at proposed 49 CFR 1105.16(g)). The Board also proposes to 
delete the requirement to discuss societal impacts as part of the 
environmental review and may consider such issues as part of the 
transportation merits review of the proposal.
    (m) Additional Information for Solid Waste Rail Transfer Facility 
Land-Use Exemptions. The same additional information for constructions 
would be required for solid waste rail transfer facility land-use-
exemption proceedings.\35\
---------------------------------------------------------------------------

    \35\ Applicants seeking a land-use-exemption permit for a solid 
waste rail transfer facility under the CRA would also be required to 
include the information required by 49 CFR 1155.24 in the 
environmental report.
---------------------------------------------------------------------------

    (n) Additional Information. The Board proposes to include that OEA 
may require applicants to submit additional information regarding the 
environmental effects of the proposed action, similar to a requirement 
that is

[[Page 14499]]

in the Board's current regulations at 49 CFR 1105.7(f).

Sec.  1105.17--Board Decisions

    This section includes certain requirements relating to the CZMA 
that are located in current 49 CFR 1105.9. Consistent with its current 
practice, the Board also proposes to add a paragraph providing that any 
environmental or historic preservation conditions imposed by the Board 
will be held in abeyance if the rail right-of-way is converted to 
interim trail use subject to rail banking under the Trails Act. See 
also, e.g., E. Idaho R.R.--Aban. Exemption--in Bonneville Cnty., Idaho, 
AB 1252 (Sub-No. 1X), slip op. at 5 n.3 (STB served June 5, 2020); 
Final Env't Assessment, E. Idaho R.R.--Aban. Exemption--in Bonneville 
Cnty., Idaho, AB 1252 (Sub-No. 1X), slip op. at 3 (STB served June 2, 
2020). This paragraph aligns the regulations with the Board's current 
practice requiring that, if a trail condition is vacated in the future 
for all or a portion of the right-of-way, any environmental condition 
or historic preservation conditions imposed by the Board must be 
satisfied before the abandonment may be consummated.\36\
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    \36\ The Board does not conduct an environmental review of a 
potential conversion to interim trail use/rail banking, because such 
a conversion is a largely ministerial act not subject to NEPA. In 
addition, many SHPOs view rails-to-trails as a preservation activity 
that would not cause an adverse effect under NHPA.
---------------------------------------------------------------------------

    The Board also proposes changes to the paragraph addressing 
Findings of No Significant Impact (FONSIs). The proposed regulations 
add that FONSIs will typically be issued in the Board's decision. In 
abandonment notice of exemption proceedings, pursuant to the new 
authority delegated by the Board under the proposed regulations, the 
Director of OEA will issue a FONSI if no environmental or historic 
preservations issues are raised by any party or identified by OEA in 
its independent review. The proposed regulations also identify what 
will be included in FONSIs.

Sec.  1105.18--Emergencies

    The Board proposes to add a new section stating that the Board will 
consult with the Council on Environmental Quality if alternative 
arrangements for compliance with NEPA are necessary in emergency 
circumstances, and establishing a procedure for requesting emergency 
consideration. The Board proposes adding this for consistency with 
other agencies' practices and to ensure that the Board has the 
flexibility to respond appropriately to an emergency situation.

Sec.  1105.19--Sample Transmittal Letter for Environmental and Historic 
Reports and

Sec.  1105.20--Newspaper Notice for Abandonment Exemption Cases

    The Board proposes minor changes to these sections (49 CFR 1105.19 
& 1105.20) to make them compatible with the proposed regulations.

Regulatory Certifications

Regulatory Planning and Review

    E.O. 12866 provides that the Office of Information and Regulatory 
Affairs (OIRA) in the Office of Management and Budget will determine 
whether a regulatory action is significant as defined by E.O. 12866 and 
will review significant regulatory actions. OIRA has determined that 
this proposed rule is not significant as defined by E.O. 12866. E.O. 
13563 reaffirms the principles of E.O. 12866 while calling for 
improvements in the Nation's regulatory system to promote 
predictability, reduce uncertainty, and use the best, most innovative, 
and least burdensome tools for achieving regulatory ends. The Board has 
developed the proposed rule consistent with E.O. 13563.

National Environmental Policy Act

    NEPA does not require agencies to prepare a NEPA analysis before 
establishing or updating agency procedures for implementing NEPA. 
Agency NEPA implementing procedures are not themselves subject to 
NEPA.\37\ STB has determined that this rule will not have a significant 
effect on the environment because it will not authorize any specific 
agency activity or commit resources to a project that may affect the 
environment. Therefore, STB does not intend to conduct a NEPA analysis 
of this proposed rule.
---------------------------------------------------------------------------

    \37\ Heartwood v. U.S. Forest Serv., 230 F.3d 947, 954-955 (7th 
Cir. 2000) (finding that neither NEPA nor the CEQ NEPA implementing 
regulations required the Forest Service to conduct an EA or an EIS 
prior to the promulgation of its procedures creating a categorical 
exclusion).
---------------------------------------------------------------------------

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, 
generally requires a description and analysis of new rules that would 
have a significant economic impact on a substantial number of small 
entities. In drafting a rule, an agency is required to: (1) assess the 
effect that its regulation will have on small entities; (2) analyze 
effective alternatives that may minimize a regulation's impact; and (3) 
make the analysis available for public comment. 5 U.S.C. 601-604. In 
its notice of proposed rulemaking, the agency must either include an 
initial regulatory flexibility analysis, 5 U.S.C. 603(a), or certify 
that the proposed rule would not have a ``significant impact on a 
substantial number of small entities,'' 5 U.S.C. 605(b). Because the 
goal of the RFA is to reduce the cost to small entities of complying 
with federal regulations, the RFA requires an agency to perform a 
regulatory flexibility analysis of small entity impacts only when a 
rule directly regulates those entities. In other words, the impact must 
be a direct impact on small entities ``whose conduct is circumscribed 
or mandated'' by the proposed rule. White Eagle Coop. v. Conner, 553 
F.3d 467, 480 (7th Cir. 2009).
    The changes proposed here are largely procedural and would not have 
a significant economic impact on small entities within the meaning of 
the RFA.\38\ The Board anticipates that the regulations would provide a 
faster environmental review process at a lower cost. Therefore, the 
Board certifies under 5 U.S.C. 605(b) that these proposed rules, if 
promulgated, would not have a significant economic impact on a 
substantial number of small entities within the meaning of RFA. In the 
event that any parties disagree, the Board encourages them to comment 
on any information relevant to the burden they believe the proposed 
rule will have on small entities as defined by the RFA.
---------------------------------------------------------------------------

    \38\ For the purpose of RFA analysis for rail carriers subject 
to the Board's jurisdiction, the Board defines a ``small business'' 
as only including those rail carriers classified as Class III rail 
carriers under 49 CFR 1201.1-1. See Small Entity Size Standards 
Under the Regul. Flexibility Act, EP 719 (STB served June 30, 2016) 
(with Board Member Begeman dissenting). Class III carriers have 
annual operating revenues of $20 million or less in 1991 dollars, or 
$48,237,637 or less when adjusted for inflation using 2024 data. The 
Board calculates the revenue deflator factor annually and publishes 
the railroad revenue thresholds on its website. 49 CFR 1201.1-1; 
Indexing the Ann. Operating Revenues of R.Rs., EP 748 (STB served 
June 18, 2025).
---------------------------------------------------------------------------

    A copy of this decision will be served upon the Chief Counsel for 
Advocacy, Office of Advocacy, U.S. Small Business Administration.

Civil Justice Reform

    The Board has analyzed the proposed rule in accordance with the 
principles and criteria in E.O. 12988, Civil Justice Reform. Upon 
publication of the proposed rule, (1) all state and local laws and 
regulations that conflict with the proposed rule or that impede its 
full implementation will be preempted; (2) no retroactive effect will 
be given to this proposed rule; and (3) it will not require 
administrative proceedings before parties may file suit in court 
challenging its provisions.

[[Page 14500]]

    Under section 3(a) of E.O. 12988, agencies must review their 
regulations to eliminate drafting errors and ambiguities, draft them to 
minimize litigation, and provide a clear legal standard for affected 
conduct. Section 3(b) provides a list of specific issues for review to 
conduct the reviews required by section 3(a). The Board has conducted 
this review and determined that this proposed rule complies with the 
requirements of E.O. 12988.

Paperwork Reduction Act

    The Board's proposal does not contain a new or amended information 
collection requirement subject to the Paperwork Reduction Act of 1995, 
44 U.S.C. 3501-3521.
    It is ordered:
    1. The Board proposes to amend its regulations as set forth in this 
decision. Notice of the proposed rules will be published in the Federal 
Register.
    2. Comments are due by April 24, 2026.
    3. A copy of this decision will be served upon the Chief Counsel 
for Advocacy, Office of Advocacy, U.S. Small Business Administration.
    4. This decision is effective on its service date.
    Decided: March 21, 2026.
    By the Board, Board Members Fuchs, Hedlund, and Schultz. Board 
Member Hedlund concurred with a separate expression.
    Board Member Hedlund, concurring:
    Today's NPRM proposes to categorically exclude abandonments from 
environmental review unless the abandoning carrier announces an 
intention to conduct salvage operations that would occur prior to 
consummation of the abandonment or entry into an interim trail use 
agreement.\39\ The NPRM justifies this exclusion on the basis that 
``rail property is privately owned, and the Board has regulatory 
authority over it only while it is part of the interstate rail system 
and subject to the Board's jurisdiction. Once a railroad consummates 
the abandonment, the Board has no jurisdiction over the rail line or 
any control over disposition of the rail property.'' The accompanying 
Substantiation Record further notes that ``typical'' conditions 
currently imposed with respect to salvage operations are consultation 
requirements, such as the requirement that the railroad consult with 
(1) the U.S. Corps of Army Engineers to determine whether a permit is 
needed, and (2) the relevant state department of environmental 
protection pursuant to state laws requiring a permit to abandon a water 
obstruction or encroachment. Perhaps in an effort to assuage concerns 
about the impacts of the removal of STB jurisdiction relating to post-
abandonment salvage, the Substantiation notes that such notification/
consultation conditions impose obligations that would already be 
required by applicable laws once the right-of-way is abandoned and no 
longer within the STB's jurisdiction. The NPRM concedes that this new 
limitation would expressly rescind a 2008 policy statement concluding 
that the Board possessed the authority to impose certain conditions 
that would apply to salvage operations conducted post-abandonment,\40\ 
a policy subsequently applied in a variety of cases.\41\
---------------------------------------------------------------------------

    \39\ Subject to certain exceptions (e.g., if the abandonment 
would result in traffic diversions that would trip the relevant 
thresholds).
    \40\ Consummation of Rail Line Abans. that are Subject to 
Historic Pres. & Other Env't Conditions, EP 678, slip op. at 5 (STB 
served April 23, 2008) (stating that an environmental condition on 
salvage ``remains in place as a condition that attaches to the 
property and applies to salvage activities whenever they occur''). 
This legal proposition has never been successfully challenged.
    \41\ See, e.g., BNSF Ry.--Aban. Exemption--In Los Angeles Cnty., 
Cal., AB 6 (Sub-No. 477X), slip op. at 7 n.13 (STB served Sept. 16, 
2011); Landowners--Motion for Declaratory Ord. & Injunctive Relief, 
AB 1065 (Sub-No. 1X), slip op. at 5 n.5 (STB served Jan. 27, 2020); 
Cent. Kan. Ry.--Aban. Exemption--In Clark & Comanche Cntys., Kan., 
AB 406 (Sub-No. 5X), slip op. at 2 n.5 (STB served Oct. 28, 2020).
---------------------------------------------------------------------------

    Pursuant to the new rule proposed in the NPRM, if a railroad wishes 
to avoid the imposition by the STB of any environmental or historic 
\42\ conditions that might attach to its salvage operations, it could 
simply remain silent and defer salvage activities until after the 
abandonment is consummated.
---------------------------------------------------------------------------

    \42\ While the NPRM by its terms is limited to proposing 
revisions to the Board's environmental regulations, the underlying 
legal principle would equally restrict the Board's ability to impose 
historic conditions on salvage operations that would apply post-
abandonment.
---------------------------------------------------------------------------

    I encourage stakeholders to submit comments on this aspect of the 
NPRM, given that it proposes to reverse the Board's prior understanding 
of governing law. If any parties have concerns about potential 
environmental or historic impacts that could result from post-
consummation salvage activities that would otherwise not be addressed 
by separate state and Federal laws, I hope they make their views known 
in this proceeding. Such comments should address the legal basis for 
the Board's imposition of conditions relating to post-consummation 
salvage, whether on the owner of the Line or any subsequent purchaser.

List of Subjects

49 CFR Part 1011

    Administrative practice and procedure, Authority delegations 
(Government agencies), Organization and functions (Government 
agencies).

49 CFR Part 1105

    Environmental impact statements, Reporting and recordkeeping 
requirements.

Eden Besera,
Clearance Clerk.

    For the reasons set forth in the preamble above and pursuant to the 
authorities listed below, the Surface Transportation Board proposes to 
amend parts 1011 and 1105 of title 49, chapter X, of the Code of 
Federal Regulations as follows:

PART 1011--BOARD ORGANIZATION; DELEGATIONS OF AUTHORITY

0
1. The authority citation for part 1011 continues to read as follows:

    Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 49 U.S.C. 1301, 1321, 
11123, 11124, 11144, 14122, and 15722.

0
2. Amend Sec.  1011.2 by revising paragraph (a)(7) to read as follows.


Sec.  1011.2  The Board

    (a) * * *
    (7) All appeals of initial decisions issued by the Chief Counsel 
under the authority delegated by Sec.  1011.7(a), all appeals of 
initial decisions issued by the Office of Public Assistance, 
Governmental Affairs, and Compliance under the authority delegated by 
Sec.  1011.7(b), and all appeals of initial decisions issued by the 
Director of the Office of Environmental Analysis under the authority 
delegated by Sec.  1011.7(c). Appeals must be filed within 10 days 
after service of the initial decision or publication of the notice, and 
replies must be filed within 10 days after the due date for appeals or 
any extension thereof.
* * * * *
0
3. Amend Sec.  1011.7 by:
0
a. Revising paragraph (a)(3)(iii);
0
b. Removing paragraph (a)(3)(ix);
0
c. Redesignating paragraphs (a)(3)(x) through (a)(3)(xx) as paragraphs 
(a)(3)(ix) through (a)(3)(xix); and
0
d. Adding a new paragraph (c).
    The revision reads as follows:


Sec.  1011.7  Delegations of Authority by the Board to Specific Offices 
of the Board

    (a) * * *
    (3) * * *
    (iii) Whether, in abandonment proceedings, to impose public use

[[Page 14501]]

conditions under 49 U.S.C. 10905 and the implementing regulations at 
Sec.  1152.28.
* * * * *
    (c) The Director of the Office of Environmental Analysis is 
delegated the authority to:
    (1) Direct the Board's implementation of the National Environmental 
Policy Act (NEPA), 42 U.S.C. 4321-4370m-11, and the National Historic 
Preservation Act (NHPA), 54 U.S.C. 300101-307108;
    (2) Prepare documents and provide interpretation of the Board's 
NEPA and NHPA processes under part 1105 of this chapter;
    (3) Render initial decisions on requests for waiver or modification 
of any of the rules in part 1105 in individual proceedings;
    (4) Reject applicant-prepared documents that are not in compliance 
with part 1105 of this chapter;
    (5) Determine whether to impose, modify, or remove environmental 
conditions;
    (6) In proceedings under Sec.  1152.50 of this chapter, issue a 
decision under Sec.  1105.17(c) of this chapter making a Finding of No 
Significant Impact where no environmental or historic preservation 
issues have been identified or raised by any party;
    (7) Act as the agency official for the purposes of the NHPA to:
    (i) Determine whether a proposed federal action is an undertaking 
and, if so, whether it is a type of activity that has the potential to 
cause effects on historic properties pursuant to Sec.  800.3 of this 
title;
    (ii) Sign, on behalf of the Board, binding agreements pursuant to 
section 106 of NHPA (36 CFR part 800);
    (iii) Determine whether to impose, modify, or remove historic 
conditions; and
    (iv) Determine the applicability of section 110(k) of the NHPA.

PART 1105--PROCEDURES FOR IMPLEMENTATION OF ENVIRONMENTAL LAWS

0
4. The authority citation for part 1105 continues to read as follows:

    Authority: 16 U.S.C. 1456 and 1536; 42 U.S.C. 4332 and 6362(b); 
49 U.S.C. 1301 note (1995) (Savings Provisions), 1321(a), 10502, and 
10903-10905; 54 U.S.C. 306108.

0
5. Revise Sec. Sec.  1105.1 through 1105.13 to read as follows:


Sec.  1105.1   Purpose.

    These rules are designed to ensure adequate consideration of 
environmental effects in the Board's decision making process pursuant 
to the National Environmental Policy Act (NEPA), 42 U.S.C. 4321-4370m-
11, the Energy Policy and Conservation Act, 42 U.S.C. 6362(b), and 
related laws, including, but not limited to the Coastal Zone Management 
Act, 16 U.S.C. 1451-1458, and the Endangered Species Act, 16 U.S.C. 
1531-1544. The rules are also designed to ensure consideration of 
effects to historic resources, implement the National Historic 
Preservation Act (NHPA), 54 U.S.C. 300101-307108, and supplement its 
implementing regulations (36 CFR part 800).


Sec.  1105.2  Responsibility for Administration of These Rules.

    The Director of the Office of Environmental Analysis (Director) 
shall have general responsibility for the overall management and 
functioning of the Office of Environmental Analysis (OEA). The Director 
is responsible for agency NEPA and NHPA implementation and for the 
preparation of documents under these rules.


Sec.  1105.3  Information and Assistance.

    Information and assistance regarding these rules and the Board's 
environmental and historic review processes are available by writing to 
the Surface Transportation Board, Office of Environmental Analysis, 395 
E Street SW, Washington, DC 20423-0001; visiting the Board's website at 
www.stb.gov; or calling the Board's Office of Public Assistance, 
Governmental Affairs, and Compliance at (202) 245-0238.


Sec.  1105.4  Definitions.

    As used in these regulations, terms have the meanings provided in 
section 111 of NEPA (42 U.S.C. 4336e) and in the Advisory Council on 
Historic Preservation's regulations implementing the NHPA (36 CFR 
800.16). In addition:
    (a) Applicant means any person or entity seeking Board action, 
whether by application, petition, notice of exemption, or any other 
means that initiates a formal Board proceeding. For the purposes of 
sections 107(f) and (g) and section 112 of NEPA (42 U.S.C. 4336a(f)-
(g); 42 U.S.C. 4336f), an applicant is a project sponsor.
    (b) Attainment Area means an area considered to have air quality as 
good as or better than the National Ambient Air Quality Standards for 
the criteria pollutants under the Clean Air Act (42 U.S.C. 7401-7675).
    (c) Board means the Surface Transportation Board.
    (d) Class I Area means an area granted special air quality and 
visibility protections under the Clean Air Act and includes certain 
national parks, wilderness areas, monuments, and other areas of special 
national and cultural significance (42 U.S.C. 7472).
    (e) Director in this part means the Director of the Office of 
Environmental Analysis.
    (f) Effects or Impacts mean changes to the human environment from 
the proposed action or alternatives that are reasonably foreseeable and 
have a reasonably close causal relationship to the proposed action or 
alternatives.
    (1) Effects may include ecological (such as the effects on natural 
resources and on the components, structures, and functioning of 
affected ecosystems), historic, or cultural effects, to the extent the 
analysis of such effects can inform the Board's decision. Effects 
appropriate for analysis under NEPA may be either beneficial or 
adverse, or both, with respect to these values.
    (2) A ``but for'' causal relationship is insufficient to make an 
agency responsible for a particular effect under NEPA. Effects should 
generally not be considered if they are remote in time, geographically 
remote, or the product of a lengthy causal chain. Effects do not 
include, among other things, those effects that the agency has no 
ability to prevent due to the limits of its regulatory authority or 
that would occur regardless of the proposed action, or the effects of a 
third-party action lacking a reasonably close causal connection or a 
legally proximate causal relationship to the action at hand.
    (g) Environmental Report means a document prepared by the applicant 
pursuant to Sec.  1105.13(a) and filed with the Board that provides 
notice of an abandonment and evaluates potential environmental effects.
    (h) Mitigation means measures that avoid, minimize, or compensate 
for effects caused by a proposed action or the alternatives as 
described in an environmental document or record of decision and that 
have a nexus to those effects. While NEPA requires consideration of 
mitigation, it does not mandate the form or adoption of any mitigation. 
Mitigation may include:
    (1) Avoiding the impact altogether by not taking a certain action 
or parts of an action;
    (2) Minimizing effects by limiting the degree or magnitude of the 
action and its implementation;
    (3) Rectifying the impact by repairing, rehabilitating, or 
restoring the affected environment;
    (4) Reducing or eliminating the impact over time by preservation 
and maintenance operations during the life of the action; or
    (5) Compensating for the impact by replacing or providing 
substitute resources or environments.

[[Page 14502]]

    (i) Nonattainment Area means an area that does not meet one or more 
of the National Ambient Air Quality Standards for the criteria 
pollutants under the Clean Air Act (42 U.S.C. 7401-7675).
    (j) Office of Environmental Analysis (OEA) means the office within 
the Board responsible for conducting environmental and historic 
reviews, preparing Environmental Assessments (EAs) or Environmental 
Impact Statements (EISs), or supervising the work of independent third-
party contractors, and providing technical advice and recommendations 
to the Board on environmental and historic preservation matters.
    (k) Participating Agency means a federal, state, Tribal, or local 
agency participating in an environmental review or authorization of an 
action.
    (l) Scope means the range of actions, alternatives, and effects to 
be considered in an EA or EIS. The scope of an individual EA or EIS may 
depend on its relationship to other EAs or EISs.
    (m) Solid Waste Rail Transfer Facility is defined at 49 U.S.C. 
10908(e)(1)(H).
    (n) State Implementation Plan means a federally enforceable plan 
for each state which identifies how that state will attain and/or 
maintain the primary and secondary National Ambient Air Quality 
Standards set forth in the implementing rules of the Clean Air Act (40 
CFR part 243).


Sec.  1105.5  Determining When NEPA Applies

    (a) NEPA does not apply to a proposed Board action when:
    (1) The proposed action does not result in final agency action 
under the Administrative Procedure Act (see 5 U.S.C. 704) or other 
relevant statute that also includes a finality requirement;
    (2) The proposed action is exempted from NEPA by law;
    (3) Compliance with NEPA would clearly and fundamentally conflict 
with the requirements of another provision of law;
    (4) In circumstances where Congress by statute has prescribed 
decisional criteria with sufficient completeness and precision such 
that the Board retains no residual discretion to alter its action based 
on the consideration of environmental factors, then that function of 
the Board is nondiscretionary within the meaning of section 106(a)(4) 
and/or 111(10)(B)(vii) of NEPA (42 U.S.C. 4336(a)(4) and 
4336e(10)(B)(vii), respectively), and NEPA does not apply to the action 
in question;
    (5) The proposed action is an action for which another statute's 
requirements serve the function of the Board's compliance with NEPA; or
    (6) The proposed action is not a ``major federal action.'' The 
terms ``major'' and ``federal action,'' each have independent force. 
NEPA applies only when both of these two criteria are met.
    (b) In addition to the illustrative general categories set forth in 
section 111(10) of NEPA (42 U.S.C. 4336e(10)), the Board has determined 
that the following non-exhaustive list of actions are not subject to 
NEPA, because they do not meet the definition of a ``major federal 
action:''
    (1) A determination that a proposal or action is not within the 
Board's jurisdiction.
    (2) Rail line improvements, routine maintenance, operational 
changes, or other proposals that are not subject to the Board's 
licensing authority (e.g., haulage arrangements; improvements or 
traffic changes to existing rail lines; construction of multiple tracks 
on an existing line; track relocations; and construction, abandonment, 
or operation of ancillary (spur) track excepted from Board licensing 
under 49 U.S.C. 10906).
    (3) Railbanking/interim trail use arrangements under the National 
Trails System Act, 16 U.S.C. 1247(d) (see Sec.  1152.29 of this 
chapter).
    (4) Abandonments that are authorized by a bankruptcy court or for 
transfers of rail lines under plans of reorganization under 11 U.S.C. 
1166, 1170, and 1172.
    (5) Declaratory orders, and interpretations or clarifications of 
operating authority.
    (6) Substitution of applicant and name changes.
    (7) Orders that are purely procedural in nature.
    (8) Initiation and termination of freight service under modified 
certificates issued under part 1150 of this chapter.


Sec.  1105.6  Determining the Appropriate Level of NEPA Review.

    (a) If NEPA applies to a proposed action, the Director will then 
determine the appropriate level of NEPA review in the following manner. 
As part of its process, OEA will consider the proposed action at hand 
and its effects.
    (1) If the Board has established, or adopted pursuant to section 
109 of NEPA (42 U.S.C. 4336c), a categorical exclusion that covers the 
proposed action, the Board will apply the categorical exclusion to the 
proposed action, if appropriate, pursuant to Sec.  1105.7(e).
    (2) If another agency has already established a categorical 
exclusion that covers the proposed action, the Director will consider 
whether to adopt that exclusion pursuant to Sec.  1105.7(c) so that it 
can be applied to the proposed action at issue.
    (3) If the proposed action warrants the establishment of a new 
categorical exclusion, or the revision of an existing categorical 
exclusion, pursuant to Sec.  1105.7(b), the Director will consider 
whether to propose establishing or revising, and if established by the 
Board, applying the categorical exclusion to the proposed action 
pursuant to Sec.  1105.7(e).
    (4) If a categorical exclusion cannot be applied to the proposed 
action consistent with paragraphs (a)(1)-(a)(3) of this section, OEA 
will consider the proposed action's reasonably foreseeable effects 
consistent with paragraph (c) of this section, and the Director will 
determine whether to prepare an EA or EIS.
    (b) The Director may reclassify or modify environmental review 
requirements in this part for any individual proceeding subject to 
review under NEPA.
    (1) If the Director concludes that, in connection with an action 
listed in Sec.  1105.7(a), extraordinary circumstances exist that 
indicate a normally excluded agency action is likely to have a 
reasonably foreseeable significant effect, the Director will evaluate 
the action listed in Sec.  1105.7(a) pursuant to Sec.  1105.7(e).
    (2) For actions that typically require an EA (see Sec.  1105.8(b)), 
the Director may determine that an EIS is required where the particular 
proposal is likely to have significant environmental effects. 
Alternatively, for proposals typically requiring an EIS (see Sec.  
1105.9(b)), the Director may determine, or an applicant can seek to 
demonstrate (by providing OEA with detailed supporting information 
after the conclusion of the scoping process), that an EA, rather than 
an EIS, would be sufficient because the particular proposal is not 
likely to have significant environmental effects or the effects are 
unknown.
    (c) When considering whether the reasonably foreseeable effects of 
the proposed action are significant, OEA will analyze the potentially 
affected environment and degree of the effects of the action. OEA may 
use any reliable data source and will not undertake new research unless 
it is essential to evaluating alternatives and the cost and time of 
obtaining it are not unreasonable.
    (1) In considering the potentially affected environment, OEA may 
consider, as appropriate to the specific action, the affected area 
(national, regional, or local) and its resources.
    (2) In considering the degree of the effects, OEA may consider the

[[Page 14503]]

following, as appropriate to the specific action: both short- and long-
term effects; and both beneficial and adverse effects.
    (d) Unless otherwise specified, the classifications in this section 
apply without regard to whether the proposal is initiated by 
application, petition, notice of exemption, or any other means that 
initiates a formal Board proceeding.


Sec.  1105.7  Categorical Exclusions.

    (a) Actions that are Categorically Excluded from Further 
Environmental Review. An EA or EIS will normally not be prepared 
(although additional review under section of 106 of the NHPA may be 
required) for:
    (1) Proposals that would not result in substantial changes in the 
applicant's operations (i.e., changes that would not exceed the 
thresholds established at Sec.  1105.16(d) or (e)), including, but not 
limited to, all of the following:
    (i) An acquisition, lease, feeder line sale, or operation under 49 
U.S.C. 10901, 10902, or 10907, that does not fall under Sec.  
1105.8(b)(1);
    (ii) An abandonment (not including those proposed under the 
Bankruptcy Act (11 U.S.C. 1170)), or discontinuance under 49 U.S.C. 
10903, that does not fall under Sec.  1105.8(b)(1);
    (iii) A consolidation, merger, or acquisition of control under 49 
U.S.C. 11323 or 14303, that does not fall under Sec.  1105.8(b)(1);
    (iv) A proceeding pursuant to 49 U.S.C. 24308;
    (v) Transactions involving corporate changes (such as a change in 
ownership or operator, the issuance of securities, or reorganization), 
including grants of authority to hold position as an officer or 
director;
    (vi) Waivers of lease and interchange regulations; and
    (vii) Pooling authorizations, approval of rate bureau agreements, 
and approval of shipper antitrust immunity.
    (2) Adjudications regarding rates, fares, tariffs, practices, and 
service;
    (3) Common use of rail terminals and trackage rights;
    (4) Discontinuance of trackage rights where the affected line will 
continue to be operated within Board jurisdiction;
    (5) A rulemaking, policy statement, or legislative proposal that 
has no potential for significant environmental effects;
    (6) Offers of Financial Assistance to avoid abandonment and 
discontinuance under 49 U.S.C. 10904 (see Sec.  1152.27 of this 
chapter);
    (7) A determination imposing or approving a reciprocal switching 
agreement; and
    (8) Construction of connecting track within an existing rail right-
of-way or on land owned by the connecting railroads and/or applicant 
(see Sec.  1150.36 of this chapter), unless the construction of such 
connecting track is not within the Board's licensing authority under 49 
U.S.C. 10906 or exempt from review under Sec.  1105.5.
    (b) Establishing and Revising Categorical Exclusions.
    (1) To establish or revise a categorical exclusion, the Board will 
determine that the category of actions normally does not significantly 
affect the quality of the human environment. To support this 
determination, OEA will:
    (i) Develop a written record containing information to substantiate 
its determination;
    (ii) Consult with CEQ on its proposed categorical exclusion, 
including the written record (typically for a period of 30 days) prior 
to providing public notice as described in subparagraph (2).
    (2) The Board will provide public notice in the Federal Register of 
the establishment or revisions of the categorical exclusion and the 
location (e.g., website) of availability of the written record.
    (c) Adopting Categorical Exclusions from Other Federal Agencies.
    (1) Consistent with section 109 of NEPA (42 U.S.C. 4336c), the 
Board may adopt a categorical exclusion listed in another agency's NEPA 
procedures. To support the adoption of a categorical exclusion, OEA 
will:
    (i) Identify the categorical exclusion listed in another agency's 
NEPA procedures that covers its category of proposed or related 
actions;
    (ii) Consult with the agency that established the categorical 
exclusion to ensure that the proposed adoption of the categorical 
exclusion is appropriate;
    (2) The Board will provide public notification of the categorical 
exclusion that the Board is adopting, including a brief description of 
the proposed action or category of proposed actions to which the Board 
intends to apply the adopted categorical exclusion.
    (3) The Board will document the adoption of the categorical 
exclusion in a Board decision publicly available on the Board's 
website.
    (d) Removal of Categorical Exclusions. The Board may remove a 
categorical exclusion from Sec.  1105.7(a).
    (1) To support the removal of a categorical exclusion, OEA will:
    (i) Develop a written explanation for the removal; and
    (ii) Consult with CEQ on its proposed removal of the categorical 
exclusion, including the written explanation (typically for a period of 
30 days) prior to providing public notice as described in subparagraph 
(2).
    (2) The Board will provide public notice of the Board's removal of 
the categorical exclusion and the written explanation in the Federal 
Register. The Board may provide notice of the availability of the 
explanation in the Federal Register notice (i.e., as a link to an 
agency website) if OEA prepares the explanation as a separate document.
    (e) Applying Categorical Exclusions. If a categorical exclusion 
covers a proposed agency action, the categorical exclusion will be 
applied unless the Director determines that extraordinary circumstances 
indicate that a normally categorically excluded agency action is likely 
to have a reasonably foreseeable significant adverse effect.
    (1) If an extraordinary circumstance is present, the Director will 
determine that the categorical exclusion applies to the proposed agency 
action and conclude review if either:
    (i) The Director determines that, notwithstanding the extraordinary 
circumstance, the proposed agency action is not likely to result in 
reasonably foreseeable adverse significant effects; or
    (ii) The applicant modifies the proposal to avoid those effects.
    (2) If the Director determines that it cannot apply the categorical 
exclusion to the proposed action, OEA will prepare an EA or EIS, as 
appropriate.
    (f) Applying Legislative Categorical Exclusions. If the Director 
determines that a categorical exclusion established through 
legislation, or a categorical exclusion that Congress through 
legislation has directed the Board to establish, covers a proposed 
agency action, OEA will conclude review consistent with applicable law. 
If appropriate, OEA may examine extraordinary circumstances, consult 
with the applicant to consider modifying the proposal, or document the 
determination that the legislative categorical exclusion applies, 
consistent with paragraph (e) of this section and the legal authority 
for the establishment of the legislative categorical exclusion.
    (g) Reliance on Categorical Exclusion Determinations of Other 
Agencies. The Board may also rely on another agency's determination 
that a categorical exclusion applies to a particular proposed agency 
action if the agency action covered by that determination and the 
proposal before the Board are substantially the same, or if the 
proposal before the Board is a subset of the agency action covered by 
that determination. The Board will document its reliance on another 
agency's categorical exclusion in a Board decision.

[[Page 14504]]

Sec.  1105.8  Environmental Assessments.

    (a) Standard for Preparing an Environmental Assessment. Unless the 
proposed action is excluded from further review under Sec.  1105.7(a), 
the Board will prepare an EA when a proposed major federal action does 
not have a reasonably foreseeable significant effect on the quality of 
the human environment or if the significance of the effect is unknown.
    (b) Actions in Which an Environmental Assessment Will Normally be 
Prepared. An EA will normally be prepared for:
    (1) An acquisition, lease, feeder line sale, operation, abandonment 
(not including those proposed under the Bankruptcy Act (11 U.S.C. 
1170)), or discontinuance under 49 U.S.C. 10901, 10902, 10903, or 
10907, or consolidation, merger, or acquisition of control under 49 
U.S.C. 11323 or 14303, if it would:
    (i) Result in operational changes or traffic diversions that would 
exceed any of the thresholds established in Sec.  1105.16(d) or (e);
    (ii) Include actions that would normally require preparation of an 
EA or EIS (such as construction of a new rail line); or
    (iii) In the case of abandonment, if salvage will occur prior to 
consummation or entry into an interim trail use agreement.
    (2) A rulemaking, policy statement, or legislative proposal that 
has the potential to cause significant environmental effects; and
    (3) Any other proceeding not listed in Sec. Sec.  1105.7(a) or 
1105.9(b).
    (c) Environmental Assessments in Proceedings Not Involving an 
Abandonment or Discontinuance.
    (1) Prefiling Notice. Where an EA is required or contemplated, the 
applicant must comply with the requirements of Sec.  1105.9(c). The 
Director may waive or modify this requirement where appropriate.
    (2) Scoping Process. OEA uses an early and open process to 
determine the scope of issues for analysis in the EA, including 
identifying substantive issues that meaningfully inform the 
consideration of environmental effects. Scoping may begin as soon as 
practicable after the proposal for action is sufficiently developed for 
consideration. During the process of preparing an EA, OEA may obtain 
the comments of any federal agency that has jurisdiction by law or 
special expertise with respect to any environmental impact of the 
action or project at hand or is authorized to develop and enforce 
environmental standards that govern the action or project at hand; and 
appropriate state, Tribal, and local agencies that are authorized to 
develop and enforce environmental standards. When appropriate, OEA may 
conduct a site visit as part of scoping.
    (3) Determination to Prepare an Environmental Assessment. Based on 
the record, including any input from federal, state, and local agencies 
and Tribes, the Director will determine whether an EA is appropriate 
and notify the applicant in writing of the decision.
    (4) Notice of Intent. Where appropriate, OEA may publish a Notice 
of Intent or other environmental review document on the Board's website 
during the review process. The Notice of Intent may include: the 
purpose and need for the proposed action; a preliminary description of 
the proposed action and alternatives; a summary of expected effects; a 
summary of anticipated reviews, consultations, permits and 
authorizations; a description of the scoping process; contact 
information for the person in the agency responsible for managing the 
environmental review process; and identification of any cooperating and 
participating agencies.
    (5) Publishing Draft or Preliminary Documents. During the process 
of preparing an EA, OEA may publish draft or preliminary documents on 
the Board's website as in its judgment is needed to fulfill its 
responsibilities under NEPA and this part.
    (6) Additional Comment During the Environmental Assessment Process. 
During the process of preparing an EA, OEA may request the comments of: 
state, Tribal, or local governments that may be affected by the 
proposed action; the applicant; and the public, including by 
affirmatively soliciting comments in a manner designed to inform those 
persons or organizations who may be interested in or affected by the 
proposed action.
    (7) Content of Environmental Assessment. An EA will contain, where 
appropriate, analysis of the resource areas listed in Sec.  1105.16, 
the purpose and need for the proposed action based on the goals of the 
applicant and the Board's statutory authority, a reasonable range of 
alternatives to the proposal to the extent required by section 
102(2)(H) of NEPA, the reasonably foreseeable effects of the proposed 
action and the alternatives considered, and recommended mitigation 
measure(s), if any, for consideration by the Board. The scope of the 
analysis will be defined in accordance with Sec.  1105.9(i)(1) and (2).
    (8) Page Limits. In accordance with section 107(e)(2) of NEPA, an 
EA will not exceed 75 pages (excluding citations and appendixes). The 
appendices, formatting, and certification requirements of Sec.  
1105.9(j)(1), (2), and (3) are incorporated by reference.
    (9) Deadlines. In accordance with section 107(g)(1)(B) of NEPA, an 
EA will be published on the Board's website not later than one year 
after the Director makes a determination pursuant to paragraph (c)(3) 
of this section that an EA is appropriate, unless the Director 
determines that OEA is unable to meet that deadline. If OEA is unable 
to meet that deadline, the Director will establish a new deadline, in 
consultation with the applicant, to provide only so much additional 
time as is necessary to complete the EA.
    (i) Section 112. An EA for which a fee is paid under section 112 of 
NEPA (42 U.S.C. 4336f) shall be completed not later than 180 days after 
date on which the fee is paid.
    (ii) Certification Regarding Deadlines. When the EA is published, 
the Director will certify (and the certification will be incorporated 
into the EA) that the resulting EA represents a good-faith effort to 
fulfill NEPA's requirements within the congressional timeline; that 
such effort is substantially complete; that in OEA's expert opinion it 
has thoroughly considered the factors mandated by NEPA; and that in 
OEA's judgment, the analysis contained therein is adequate to inform 
the Board's final decision regarding the proposed federal action.
    (10) Notice of Availability. When an EA is completed, OEA will 
provide notice with a website link to the electronic document, as 
appropriate, to all participants in the environmental and historic 
review, as well as appropriate federal, state, and local agencies, 
federally recognized Tribes, and any person requesting the document. 
The notice will explain how to request a paper copy of the document, if 
needed due to economic or other hardship. The full document will be 
available on the Board's website.
    (d) Environmental Assessments in Abandonment and Discontinuance 
Proceedings. Where an EA is to be prepared under paragraph (b)(1) of 
this section, after receiving any applicant-prepared environmental and 
historic reports required under Sec. Sec.  1105.13 and 1105.14, OEA 
will prepare the EA.
    (1) In general and as appropriate with respect to the specific 
proceeding, the following federal, state, and local agencies, and other 
entities will be consulted:
    (i) Appropriate regional office(s) of the U.S. Environmental 
Protection Agency;
    (ii) Appropriate regional office(s) and field office(s) of the U.S. 
Fish and Wildlife Service;

[[Page 14505]]

    (iii) Appropriate regional office(s) of the National Oceanic and 
Atmospheric Administration (NOAA) Fisheries;
    (iv) The Regulatory Division of the appropriate district office(s) 
of the U.S. Army Corps of Engineers;
    (v) Appropriate district office(s) of the U.S. Coast Guard;
    (vi) Appropriate regional office(s) of the National Park Service;
    (vii) Appropriate state office(s) of the Natural Resources 
Conservation Service;
    (viii) National Geodetic Survey;
    (ix) State environmental protection agency for each state involved;
    (x) State department of transportation for each state involved;
    (xi) Coastal zone management agency for each state involved where 
the proposed action would affect land or water uses within a state-
designated coastal zone;
    (xii) Appropriate regional office(s) of the Federal Emergency 
Management Agency;
    (xiii) Appropriate official for each county or comparable political 
entity in which the proposed action is located;
    (xiv) Appropriate official for each federally recognized Tribe with 
current or ancestral connections to the land in the county(s) in which 
the proposed action is located; and
    (xv) Any other agencies whose input may be needed for the 
environmental review process under the circumstances of the case.
    (2) OEA will issue an EA that complies with the requirements in 
Sec.  1105.8(c)(7), (8), and (9) and publish it on the Board's website.
    (3) The EA will contain, where appropriate, analysis of the 
resource areas listed in Sec.  1105.16, and any recommended mitigation 
measure(s) for consideration by the Board.
    (4) Unless otherwise directed, comments may be submitted within 30 
days of publishing the EA (15 days in the case of a notice of exemption 
for abandonment under Sec.  1152.50 of this chapter). Comments will be 
addressed, as appropriate, in the Board's decision.


Sec.  1105.9  Environmental Impact Statements.

    (a) Standard for Preparing an Environmental Impact Statement. OEA 
will prepare an EIS when the proposed action does not fall under Sec.  
1105.5 and has a reasonably foreseeable significant effect on the 
quality of the human environment. Whether an impact rises to the level 
of ``significant'' is a matter of OEA's expert judgment.
    (b) Actions in Which an Environmental Impact Statement Will 
Normally be Prepared. An EIS will normally be prepared for:
    (1) Rail construction proposals other than those described in Sec.  
1105.7(a) or those reclassified pursuant to Sec.  1105.6(b); and
    (2) Requests for solid waste rail transfer facility land-use 
exemptions under the Clean Railroads Act (see 49 U.S.C. 10501(c)(2)(B) 
and 10908-10910).
    (c) Prefiling Notice. Where an EIS is required or contemplated, the 
applicant must provide OEA with written notice of its forthcoming 
proposal at least 45 days prior to filing an application, petition, or 
notice of exemption with the Board. For rail construction proposals, 
the prefiling notice must include the information required in Sec.  
1105.16(l).
    (1) Waiver. The Director may waive or modify this requirement where 
appropriate. Requests for waiver of the prefiling notice required under 
paragraph (c) of this section must describe the anticipated 
environmental effects of the proposed action, include the information 
required in Sec.  1105.16(l) if the proposal is a rail construction, 
and explain why the 45-day lead period cannot be met.
    (2) Section 112. In the event an applicant elects to proceed under 
section 112 of NEPA (42 U.S.C. 4336f), the applicant shall file its 
Prefiling Notice and consult with OEA prior to any submission to the 
Council on Environmental Quality under section 112(a)(1).
    (d) Scoping Process. OEA uses an early and open process to 
determine the scope of issues for analysis in the EIS, including 
identifying substantive issues that meaningfully inform the 
consideration of environmental effects. Scoping may begin as soon as 
practicable after the proposal for action is sufficiently developed for 
consideration. During the process of preparing an EIS, OEA will obtain 
the comments of any federal agency that has jurisdiction by law or 
special expertise with respect to any environmental impact of the 
action or project at hand or is authorized to develop and enforce 
environmental standards that govern the action or project at hand; and 
appropriate state, Tribal, and local agencies that are authorized to 
develop and enforce environmental standards. When appropriate, OEA may 
conduct a site visit as part of scoping.
    (e) Determination to Prepare an Environmental Impact Statement. 
Based on the record, including any input from federal, state, and local 
agencies and Tribes, the Director will determine whether to prepare an 
EIS and notify the applicant in writing of the decision.
    (f) Notice of Intent. OEA will publish a Notice of Intent to 
prepare an EIS on the Board's website and in the Federal Register.
    (1) Content. The Notice of Intent shall include: the purpose and 
need for the proposed action; a preliminary description of the proposed 
action and alternatives; a summary of expected effects; a summary of 
anticipated reviews, consultations, permits and authorizations; the 
expected timeline for the environmental review; a description of the 
public scoping process; contact information for the person in the 
agency responsible for managing the environmental review process; and 
identification of any cooperating and participating agencies. The 
notice may preliminarily identify and eliminate from detailed study 
issues that are not relevant and do not bear on the proposed action or 
its effects or have been covered by prior environmental reviews.
    (2) Public Comment on the Notice of Intent. The Notice of Intent 
will include a request for public comment on alternatives or potential 
effects and on relevant information, studies, or analyses with respect 
to the proposed action. Comments should be as specific as possible, and 
commenters are encouraged to file any comments with the Board 
electronically. Where appropriate, the Notice of Intent may also 
include notice of a meeting(s) open to interested members of the 
public.
    (g) Publishing Draft or Preliminary Documents. During the process 
of preparing an EIS, OEA may publish on the Board's website draft or 
preliminary documents as in its judgment is needed to fulfill its 
responsibilities under NEPA and this part.
    (h) Additional Comment During the Environmental Impact Statement 
Process. During the process of preparing an EIS, OEA may request the 
comments of: state, Tribal, or local governments that may be affected 
by the proposed action; the applicant; and the public, including by 
affirmatively soliciting comments in a manner designed to inform those 
persons or organizations who may be interested in or affected by the 
proposed action.
    (i) Content of Environmental Impact Statement. An EIS will contain 
each of the elements required in section 102(2)(C) of NEPA (42 U.S.C. 
4332(2)(C)). In considering the reasonably foreseeable environmental 
effects of the proposed action, the statement will include, where 
appropriate, analysis of the resource areas listed in Sec.  1105.16. In 
addition, the statement will include the purpose and need for the 
proposed action based on the goals of the applicant and the Board's 
statutory authority, and

[[Page 14506]]

recommended mitigation measure(s), if any, for consideration by the 
Board. An EIS will also address any substantive comments received.
    (1) Scope of Analysis. OEA will focus its analysis on whether the 
environmental effects of the proposed action or project at hand are 
significant. Similarly, OEA will document where and how it drew a 
reasonable and manageable line relating to its consideration of any 
environmental effects from the proposed action or project at hand that 
extend outside the geographical territory of the project or might 
materialize later in time.
    (2) Proportionate analysis. OEA will discuss effects in proportion 
to their significance. With respect to issues that are not of a 
substantive nature and do not meaningfully inform the consideration of 
environmental effects and the resulting decision on how to proceed, 
there will be no more than the briefest possible discussion to explain 
why those issues are not substantive and therefore not worthy of any 
further analysis. The analysis will be concise and no longer than 
necessary to comply with NEPA in light of the congressionally mandated 
page limits and deadlines.
    (j) Page Limits. In accordance with section 107(e)(1) of NEPA, an 
EIS will not exceed 150 pages (excluding citations and appendices) and, 
in cases of extraordinary complexity, will not exceed 300 pages 
(excluding citations and appendices). OEA will determine at the 
earliest possible stage of preparing an EIS whether the conditions for 
exceeding the page limit are present.
    (1) Appendices. Appendices are to be used for voluminous materials, 
such as scientific tables, collections of data, statistical 
calculations, and the like, which substantiate the analysis provided. 
Appendices are not to be used to provide additional substantive 
analysis, because that would circumvent the congressionally mandated 
page limits.
    (2) Formatting. EISs will be formatted for an 8.5'' x 11'' page 
with one-inch margins using a word processor with 12-point 
proportionally spaced font, single spaced. Footnotes may be in 10-point 
font. Such size restrictions do not apply to explanatory maps, 
diagrams, graphs, tables, and other means of graphically displaying 
quantitative or geospatial information, although pages containing such 
material do count towards the page limit. When an item of graphical 
material is larger than 8.5'' x 11'', each such item will count as one 
page.
    (3) Certification as to Page Limits. The breadth and depth of 
analysis will be tailored to ensure that the environmental analysis 
does not exceed these page limits. The Director will certify (and the 
certification will be incorporated into the EIS) that the EIS has 
considered the factors mandated by NEPA and that the EIS represents 
OEA's good-faith effort to prioritize documentation of the most 
important considerations required by NEPA within the congressionally 
mandated page limits; that this prioritization reflects OEA's expert 
judgment; and that any considerations addressed briefly or left 
unaddressed were, in OEA's judgment, comparatively not of a substantive 
nature to meaningfully inform the decisionmaker's consideration of 
environmental effects and the resulting decision on how to proceed.
    (k) Deadlines. In accordance with section 107(g)(1)(A) of NEPA, an 
EIS will be published on the Board's website not later than two years 
after the Director makes a determination pursuant to paragraph (e) of 
this section to prepare the EIS, unless the Director determines that 
OEA is unable to meet that deadline. If OEA is unable to meet that 
deadline, the Director will establish a new deadline, in consultation 
with the applicant, to provide only so much additional time as is 
necessary to complete the EIS.
    (1) Section 112. An EIS for which a fee is paid under section 112 
of NEPA (42 U.S.C. 4336f) shall be completed not later than 1 year 
after the date of publication of the Notice of Intent to prepare the 
EIS.
    (2) Certification as to Deadlines. When the EIS is published, the 
Director will certify (and the certification will be incorporated into 
the EIS) that the resulting EIS represents a good-faith effort to 
fulfill NEPA's requirements within the congressional timeline; that 
such effort is substantially complete, and that in OEA's expert opinion 
it has thoroughly considered the factors mandated by NEPA; and that in 
OEA's judgment, the analysis contained therein is adequate to inform 
the Board's final decision regarding the proposed federal action.
    (l) Notice of Availability. When an EIS is completed, OEA will 
provide notice with a website link to the electronic document, as 
appropriate, to all participants in the environmental and historic 
review, as well as appropriate federal, state, and local agencies, 
federally recognized Tribes, and any person requesting the document. 
The notice will explain how to request a paper copy of the document, if 
needed due to economic or other hardship. The Board will file EISs with 
the Environmental Protection Agency, Office of Federal Activities, for 
publication in the Federal Register. The full document will be 
available on the Board's website.


Sec.  1105.10  Supplements to Environmental Assessments and 
Environmental Impact Statements.

    (a) When Supplements Will Be Prepared. An EA or EIS will be 
supplemented when:
    (1) The applicant makes substantial changes to the proposed action 
that are relevant to environmental effects; or
    (2) The Director determines, in his or her discretion, that there 
are substantial new circumstances or information relevant to 
environmental effects.
    (b) Process for Issuing Supplements. A Supplemental EA or 
Supplemental EIS will be prepared and published in the same manner as 
the original document, as appropriate, except that scoping may not be 
conducted.
    (c) Determining That a Supplement Is Not Required.
    (1) If changes to a proposed action or new circumstances are 
identified after an EA or EIS has been issued, and the Director 
concludes that those changes or new circumstances are not substantial 
and do not warrant the preparation of a supplement, those findings will 
be documented.
    (2) If changes to a proposed action or new circumstances are 
identified subsequent to completion of OEA's review and findings but 
prior to OEA issuing the EA or EIS, and the Director concludes that 
those changes or new circumstances are not substantial and do not 
warrant the preparation of a supplement, the Director will summarize 
those findings in the EA or EIS.


Sec.  1105.11  Lead, Cooperating, and Participating Agencies.

    (a) Lead Agency. The Board will generally act as the lead agency in 
the environmental review process when the proposed action requires 
Board authorization and is not federally funded. The designation and 
the role of the lead agency is subject to section 107(a) of NEPA.
    (1) In many instances, a proposed action is undertaken in the 
context which entails activities or decisions undertaken by other 
federal agencies (e.g., where multiple federal authorizations or 
analyses are required with respect to an applicant's project). These 
major federal actions are the responsibility of the particular agency, 
but to the extent that the proposed action will require action by more 
than one agency under NEPA, the multiple agencies involved shall 
determine which of them will be the lead agency

[[Page 14507]]

pursuant to the criteria identified in section 107(a)(1)(A) of NEPA (42 
U.S.C. 4336a(a)(1)(A)).
    (2) When serving as the lead agency, the Board is responsible for 
completing the NEPA process and will determine the scope of the project 
at hand.
    (3) When a joint lead relationship is established pursuant to 
section 107(a)(1)(B) of NEPA (42 U.S.C. 4336a(a)(1)(B)), the Board and 
the other joint lead agency or agencies are collectively responsible 
for completing the NEPA process.
    (b) Cooperating Agency. Pursuant to section 107(a)(3) of NEPA, any 
qualifying agency may be designated as a cooperating agency in the 
environmental review process.
    (c) Participating Agency. Any interested federal, state, Tribal, or 
local agency may be a participating agency in the environmental review 
process.


Sec.  1105.12  Third-Party Contractors.

    Except when documents are prepared under Sec.  1105.15, an 
applicant should retain an independent third-party contractor to assist 
OEA in the preparation of any necessary environmental or historic 
documents. The applicant may provide input on the selection of the 
third-party contractor, but the Director retains the authority to 
approve or disapprove the selection of a third-party contractor. The 
third-party contractor approved by the Director will be required to 
execute a disclosure statement certifying that it has no financial or 
other interest in the outcome of the proposal (or other disqualifying 
conflict of interest). The third-party contractor acts on behalf of the 
Board and works under OEA's sole direction, supervision, and control in 
collecting, analyzing, and presenting any information required for the 
environmental review of a proposed action. OEA reviews, verifies, and 
approves all information and documentation provided by third-party 
contractors. A list of permissible third-party contractors is available 
on the Board's website at www.stb.gov.


Sec.  1105.13  Environmental Reports for Abandonments and 
Discontinuances.

    (a) An applicant seeking authority to abandon and/or discontinue a 
rail line pursuant to part 1152 of this chapter that is not 
categorically excluded from further environmental review under Sec.  
1105.7(a) must prepare an environmental report, which shall be sent to 
the agencies specified in Sec.  1105.8(d)(1) at least 45 days prior to 
filing the report with the Board with the transmittal letter provided 
in Appendix A to this part.
    (b) The environmental report must be filed with the Board at the 
same time as the application, petition, or notice of exemption. 
Applicants are encouraged to file environmental reports with the Board 
electronically.
    (c) When the environmental report is filed with the Board, it must 
include all written communication submitted to and received from 
consulting agencies, including letters, emails, and attachments. 
Substantive oral communications must be documented by date with a 
written summary of the discussion, including name, telephone number, 
and/or email, and, if applicable, affiliation and title of each 
participant. Any communication occurring after an applicant's filing of 
the environmental report must also be promptly provided to OEA. 
Environmental reports that include consulting agency communications 
that predate the filing date of the application, petition, or notice of 
exemption by more than two years will be rejected. Environmental 
reports filed with little or no consulting agency responses may also be 
rejected.
    (d) In its environmental report, the applicant must certify that it 
consulted with the agencies listed in Sec.  1105.8(d)(1) and that it 
sent the environmental report to those agencies at least 45 days before 
filing its application, petition, or notice of exemption with the 
Board. An applicant seeking authority to abandon and/or discontinue a 
rail line pursuant to part 1152 of this chapter that is not 
categorically excluded from further environmental review under Sec.  
1105.7(a) must also certify that it has published a newspaper notice 
that alerts the public of the proposed abandonment pursuant to the 
requirements set forth at Sec.  1105.19. Newspaper notice requirements 
for abandonment application cases are set forth at Sec. Sec.  1152.20 
and 1152.21 of this chapter.
    (e) Environmental reports shall include the content described in 
Sec.  1105.16, unless the applicant explains why any reporting 
requirement is not applicable.
    (f) Conclusions regarding potential environmental effects must be 
supported by specific information in the environmental report, and a 
copy of, or appropriate citation to, any reference materials relied 
upon in the report must also be provided. Environmental reports lacking 
all the necessary information may be rejected.
0
6. Redesignate Sec.  1105.8 as Sec.  1105.14.
0
7. Add new Sec. Sec.  1105.15 through 1105.20 to read as follows:


Sec.  1105.15  Applicant-Prepared Environmental Assessments and 
Environmental Impact Statements.

    (a) Except in the case of an abandonment proposal, an applicant may 
submit a written request for approval from the Director to prepare an 
EA or EIS under the supervision of OEA. In such cases, the applicant 
must consult with OEA and obtain approval from the Director prior to 
preparing any EA or EIS, or the EA or EIS will be rejected by the 
Director.
    (b) The applicant's request for approval will include the names and 
qualifications of persons preparing the EA or EIS or sections of the 
document and include disclosure statements that certify that the 
applicant's contractor has no financial or other interest in the 
outcome of the proposed action.
    (c) In reviewing the request, the Director will consider whether: 
the applicant and the applicant's contractor have the expertise 
necessary to prepare an EA or EIS that meets the requirements of Board 
regulations, NEPA, and related environmental laws; OEA has the 
resources necessary to independently evaluate the documentation; 
Government-to-Government consultations with federally recognized Tribes 
would be needed; and any other relevant project-specific 
considerations.
    (d) The following procedures will apply in proceedings where the 
Director grants an applicant approval to prepare an EA or EIS under the 
supervision of OEA:
    (1) Content. An applicant-prepared EA or EIS must contain the 
information and/or analysis identified in Sec.  1105.16, unless the 
applicant explains why any requirement is not applicable.
    (2) Page Limits. An applicant-prepared EA or EIS must conform to 
the page limits in Sec. Sec.  1105.8(c)(8) and 1105.9(j). See 42 U.S.C. 
4336a(e).
    (3) Deadlines. As part of the approval, the Director will establish 
mandatory deadlines for the applicant to provide the EA or EIS to OEA 
for review and approval prior to publication by OEA. The Director will 
set the deadlines to ensure compliance with Sec. Sec.  1105.8(c)(9) and 
1105.9(k). See 42 U.S.C. 4336a(g).
    (4) Independent Evaluation. OEA will independently evaluate the EA 
or EIS and will take responsibility for its contents. If, at any point 
during the environmental review process, the Director determines that 
the applicant-prepared EA or EIS does not meet the requirements of 
these regulations; is not adequate to meet the requirements of NEPA, 
related environmental laws; and/or the applicant fails to meet the 
deadlines discussed in paragraph (d)(3)

[[Page 14508]]

of this section, the EA or EIS may be rejected; approval for applicant-
prepared EA or EIS may be revoked; and the applicant may be required to 
pay a third-party contractor to work under OEA's exclusive control and 
direction as provided for in Sec.  1105.12 to prepare an EA or EIS 
consistent with these regulations and the requirements of NEPA.
    (5) Section 112. Section 112 of NEPA (42 U.S.C. 4336f) establishes 
a separate process under which the EA or EIS may be prepared under an 
expedited deadline. In the event that an applicant elects to proceed 
under section 112(b)(2) of NEPA, an applicant-prepared EA or EIS 
remains subject to the requirements of paragraphs (d)(1), (d)(2), 
(d)(3), and (d)(4) of this section and any other applicable 
requirements for applicant-prepared documents in these regulations.


Sec.  1105.16  Content in Environmental Assessments and Environmental 
Impact Statements.

    An EA or EIS will contain the following information and/or 
analysis, as applicable:
    (a) Proposal.
    (1) Description of the proposed action, including commodities 
transported; any possible changes in current operations; any current 
traffic on the line; the planned disposition (if any) of the line; land 
disturbance within and outside the right-of-way; buildings, bridges, or 
other structures (to include tracks and ties in abandonment proposals) 
to be removed.
    (2) Accurate maps, sufficiently detailed to show the location of 
the rail line (including the right-of-way), longitude and latitude 
coordinates for beginning and end point milepost markers, bridges, 
waterways and water bodies, roads and road crossings, and any other 
relevant features and resources in the vicinity of the proposed action. 
Digital maps are strongly encouraged (e.g., Shapefile, KML, or KMZ). 
Standalone or static maps must be submitted in computer-readable, 
electronic formats (e.g., GIF, JPEG, or PDF).
    (b) Transportation System. Description of the anticipated effects 
of the proposed action on regional or local transportation systems and 
patterns. Estimates of the amount of traffic likely to be diverted to 
other transportation systems or modes as a result of the proposed 
action, if any. If rail-to-truck diversions are expected to occur, 
identification of the roadways likely to be impacted, the annual 
average daily traffic on those roadways, estimates of the potential 
increase in daily roadway traffic as a result of the proposed action, 
and descriptions of any potential roadway capacity constraints.
    (c) Land Use.
    (1) Based on consultation with local and regional planning agencies 
or a review of the official planning documents prepared by such 
agencies, assessment of whether the proposed action is consistent with 
existing land use plans. Descriptions of any inconsistencies.
    (2) Based on consultation with the Natural Resources Conservation 
Service, descriptions of the effect of the proposed action on any prime 
agricultural land.
    (3) If the proposed action would affect land or water resources 
within a designated coastal zone, documentation of the notification of 
the relevant state, and a consistency review and certification if 
required under Coastal Zone Management Act (16 U.S.C. 1451-1468) and 
its implementing regulations.
    (4) Based on consultation with the Federal Emergency Management 
Agency (FEMA), or FEMA's online flood hazard mapping created under the 
National Flood Insurance Program, descriptions of whether the proposed 
action would occur within a designated flood zone.
    (5) Descriptions of erosion mitigation practices to be used during 
activities associated with the proposed action.
    (d) Energy.
    (1) Descriptions of the effect of the proposed action on energy 
resources, i.e., increase or decrease in overall energy efficiency of 
rail operations.
    (2) Measurements of the proposed action's resulting net change in 
energy consumption and the data and methodology used if the proposed 
action would cause diversions from rail to truck of more than:
    (i) 1,000 rail carloads a year, or
    (ii) An average of 50 rail carloads per mile per year for any part 
of the affected line.
    (e) Air.
    (1) Measure anticipated effect on air emissions (for the air 
quality control region in which the proposed action is located) if the 
proposed action is located in an attainment area and would result in:
    (i) An increase in rail traffic of at least 100 percent (measured 
in gross ton miles annually) or an increase of at least eight trains a 
day on any segment of rail line affected by the proposed action,
    (ii) An increase in rail yard activity of at least 100 percent 
(measured by carload activity), or
    (iii) An average increase in truck traffic of more than 10 percent 
of the average daily traffic or 50 vehicles a day on any affected road 
segment.
    (iv) For proposed actions that involve reinstituting service over 
an existing rail line that currently has no traffic, only the eight-
train a day provision in paragraph (e)(1)(i) of this section applies.
    (2) Measure anticipated effect on air emissions (for the air 
quality control region in which the proposed action is located), and 
determination of whether any expected increase would be within the 
parameters established by the relevant State Implementation Plan, if 
the proposed action affects a class I or nonattainment area and would 
result in:
    (i) An increase in rail traffic of at least 50 percent (measured in 
gross ton miles annually) or an increase of at least three trains a day 
on any segment of rail line,
    (ii) An increase in rail yard activity of at least 20 percent 
(measured by carload activity), or
    (iii) An average increase in truck traffic of more than 10 percent 
of the average daily traffic or 50 vehicles a day on a given road 
segment.
    (iv) For proposed actions that involve reinstituting service over 
an existing rail line that currently has no traffic, only the three-
train a day provision in paragraph (e)(2)(i) of this section applies.
    (f) Noise and Vibration. If any of the thresholds identified in 
paragraph (e)(1) of this section are exceeded, environmental noise and 
vibration analysis, e.g., modeling and measurements, will be conducted 
to measure any effects resulting from the proposed action.
    (g) Safety.
    (1) Describe any environmental effects of the proposed action on 
safety, including at railroad grade crossings.
    (2) If hazardous materials are expected to be transported, 
identify:
    (i) The materials and quantity;
    (ii) The frequency of service;
    (iii) Whether chemicals would be transported that, if mixed, could 
react to form more hazardous compounds;
    (iv) Safety practices (including any speed restrictions);
    (v) The applicant's safety record, to the extent available, with 
respect to derailments, accidents, and hazardous spills; and
    (vi) Procedures for preventing and controlling spills.
    (3) If there are any known hazardous waste sites or sites where 
there have been known hazardous spills on the right-of-way, identify 
the location of those sites and the types of hazardous materials 
involved.
    (h) Biological Resources.
    (1) Based on consultation with the NOAA Fisheries and consultation 
with the U.S. Fish and Wildlife Service or reference to the U.S. Fish 
and Wildlife Service's electronic database(s), a statement of:

[[Page 14509]]

    (i) Whether any federally listed threatened or endangered species 
or areas designated as a critical habitat are present in or adjacent to 
the area of the proposed action and how that determination was made; 
and
    (ii) Whether the proposed action is likely to adversely affect 
federally listed threatened or endangered species or areas designated 
as a critical habitat, and if so, describe the effects.
    (2) Statement of whether wildlife sanctuaries or refuges, national 
or state parks, or forests would be affected by the proposed action 
and, if so, description of the effects.
    (i) Water.
    (1) Based on consultations with federal and state water quality 
officials, explanation of whether the proposed action would be 
consistent with applicable water quality standards, and description of 
any inconsistencies.
    (2) Based on consultation with the U.S. Army Corps of Engineers, 
explanation of whether any permits under section 404 of the Clean Water 
Act (33 U.S.C. 1344) or section 10 of the Rivers and Harbors Act (33 
U.S.C. 401) would be required for the proposed action.
    (3) Statement of whether any waters of the United States (including 
lakes, streams and wetlands), navigable waterways, or 100-year flood 
plains would be affected by the proposed action, and if so, description 
of the effects.
    (4) Statement of whether permits under section 402 of the Clean 
Water Act (33 U.S.C. 1342) would be required for the proposed action.
    (j) Cultural Resources. If historic review is required, a section 
106 review under the implementing regulations (36 CFR part 800) for the 
NHPA must be conducted.
    (k) Voluntary Mitigation. Description of any voluntary mitigation 
measures proposed by an applicant.
    (l) Additional Information in Rail Construction Cases. In rail 
construction cases, the EA or EIS must also include the following:
    (1) Alternatives and Rail Operations.
    (i) Description of any reasonable alternative routes considered, 
and a no-build alternative, and explanation of why the alternative 
routes were not selected as the preferred route. Description of new 
access roads (if any) anticipated to be needed during rail 
construction, and statement of whether those access roads would be 
temporary or permanent.
    (ii) Detailed description of the rail operations to be conducted on 
the line, including estimates of freight (carloads and tonnage) to be 
transported, commodities to be transported (if known), the anticipated 
daily and annual number of train movements, number of cars per train, 
types of cars, motive power requirements, proposed speeds, labor force, 
and proposed maintenance-of-way practices.
    (2) Safety. If hazardous materials are expected to be transported, 
description of procedures that would be used for storing and fueling 
construction equipment.
    (3) Energy. If the proposed action would cause any diversion of 
traffic from rail to truck, the EA or EIS will include the information 
required in paragraph (d)(2) of this section.
    (4) Air.
    (i) Description of potential air quality effects and measurement of 
the anticipated effect on air emissions (for the air quality control 
region in which the proposed action is located) from:
    (A) Construction activities;
    (B) Idling vehicles delayed at public and/or private at-grade 
crossings; and
    (C) Reasonably foreseeable train operations, including changes in 
operations on existing rail lines that would be impacted by the 
proposal.
    (ii) If the proposed action would affect a class I or nonattainment 
area, then the EA or EIS will include the anticipated effect on air 
emissions and determine whether any expected increased emissions would 
be within the parameters established by the relevant State 
Implementation Plan.
    (5) Noise and Vibration. Regardless of the number of trains 
expected to operate over a proposed rail line, environmental noise and 
vibration analysis will be conducted to measure any effects resulting 
from the proposed action.
    (m) Additional Information for Solid Waste Rail Transfer Facility 
Land-Use Exemptions. An EA or EIS for an applicant seeking a land-use 
exemption permit under the Clean Railroads Act, 49 U.S.C. 
10501(c)(2)(B), 10908-10910, will also include the information required 
in paragraph (l) of this section, where applicable, and in Sec.  
1155.24 of this chapter.
    (n) Additional Information. The Director may require applicants to 
submit additional information regarding the environmental effects of 
the proposed action.


Sec.  1105.17  Board Decisions.

    (a) Decision. As part of its final decision making in a proceeding 
in which an environmental and/or historic review was conducted, the 
Board will consider the entire environmental and historic record and 
issue a decision. The decision will be posted on the Board's website.
    (b) Conditions. The Board will decide what, if any, environmental 
and historic conditions to impose upon the authority it is issuing, 
except with respect to environmental and historic conditions in 
proceedings under 49 CFR 1152.50 and historic requirements imposed 
pursuant to agreements signed under Sec.  1011.7(c)(7)(ii) of this 
chapter, based on the environmental and historic record and its 
substantive responsibilities under the ICC Termination Act of 1995, 
Public Law 104-88, as amended. The Board may withhold a decision, stay 
the effective date of an exemption, or impose appropriate conditions 
upon any authority granted, when an environmental or historic 
preservation issue has not yet been resolved.
    (1) The applicant shall comply with all conditions imposed by the 
Board and shall ensure that any party acting on its behalf (such as a 
construction contractor/subcontractor or rail salvage company) also 
complies with the conditions imposed by the Board.
    (2) Compliance with environmental conditions and historic 
conditions imposed by the Board in rail abandonment and discontinuance 
cases is not required with respect to any portion of a line covered by 
an interim trail use agreement entered into pursuant to the National 
Trails System Act, 16 U.S.C. 1247(d) and Sec.  1152.29 of this chapter, 
for the duration of the agreement. If the interim trail use condition 
subsequently is vacated, any environmental or historic conditions 
previously imposed by the Board that are barriers to consummation must 
be satisfied before abandonment may be completed.
    (3) If there is consistency review under 15 CFR 930.54, the Board 
and the applicant will comply with the consistency certification 
procedures of 15 CFR part 930. Also, the Board will withhold a 
decision, stay the effective date of a decision, or impose a condition 
delaying consummation of the action, until the applicant has submitted 
a consistency certification and either the state has concurred in the 
consistency certification, or an appeal to the Secretary of Commerce 
(under 15 CFR 930.64(e)) is successful.
    (c) Finding of No Significant Impact.
    (1) When the EA is complete, and the Board is able to determine 
that a proposed action would have no significant environmental effects 
(with or without mitigation), the Board will issue a Finding of No 
Significant Impact (FONSI) setting forth the basis for its 
determination, which will typically be included in the Board's 
decision.

[[Page 14510]]

    (2) In abandonment exemption proceedings under 49 CFR 1152.50, if 
no environmental or historic preservation issues are raised by any 
party or identified by OEA in its independent review, the Director will 
issue a decision pursuant to Sec.  1011.7(c)(6) of this chapter that 
includes a FONSI indicating that the environmental and historic record 
has formally been considered. The Director's decision will be posted on 
the Board's website.
    (3) The FONSI will:
    (i) Incorporate the EA by reference;
    (ii) Document the reasons why the Board or the Director has 
determined that the proposed action or project at hand will not have a 
significant effect on the quality of the human environment;
    (iii) State the authority for any mitigation that the Board has 
adopted and any applicable monitoring or enforcement provisions. If the 
Board finds no significant effects based on mitigation, the mitigated 
finding of no significant impact will state any mitigation requirements 
enforceable by the agency or voluntary mitigation commitments that will 
be undertaken to avoid significant effects;
    (iv) Identify any other documents related to the finding of no 
significant impact; and
    (v) State that an EIS will not be prepared for the proposed action 
or project at hand, concluding the NEPA process for that action.


Sec.  1105.18  Emergencies.

    Where emergency circumstances make it necessary to take an action 
with reasonably foreseeable significant environmental effects without 
observing the provisions of these regulations, the Board will consult 
with the Council on Environmental Quality about alternative 
arrangements for compliance with NEPA. A request for emergency 
consideration may be filed in the formal docket, and the Board will 
determine whether the circumstances merit alternative arrangements for 
compliance with NEPA.


Sec.  1105.19  Transmittal Letter for Environmental and Historic 
Reports.

    When an environmental report is filed with the Board, the applicant 
shall certify to the Board that it has sent a copy of the report to the 
agencies and entities identified in Sec.  1105.8(d)(1) 45 days before 
filing. When a historic report is filed with the Board, the applicant 
shall certify to the Board that it has sent a copy of the report to the 
agencies and entities identified in Sec.  1105.14(c) at least 20 days 
before filing. The sample letter contained in Appendix A to this part 
should be used in transmitting the environmental and historic reports 
to the applicable agencies and entities identified in Sec.  
1105.8(d)(1) and Sec.  1105.14(c).

Appendix A to Part 1105--Sample Transmittal Letter for Applicant's 
Report

Re: (Name of proposed action and Board docket number)

    On or about (date), we expect to file with the Surface 
Transportation Board a (type of proceeding) seeking authority to ( ) 
located in (city or town) (state). Attached is an environmental 
report and/or historic report describing the proposal and any 
expected environmental and/or historic effects, as well as a 
detailed map of the affected area.
    We are providing this report so that you may review the 
information that will form the basis for the Board's independent 
environmental and/or historic analysis under the National 
Environmental Policy Act (NEPA) and/or the National Historic 
Preservation Act (NHPA) in this proceeding. If you believe any of 
the information is incorrect or that information is missing, or if 
you have any substantive comments regarding the proposal and its 
potential effects, please file your comments electronically on the 
Board's website at www.stb.gov. Alternatively, you may send your 
written comments to Surface Transportation Board, Office of 
Environmental Analysis (OEA) at 395 E Street SW, Washington, DC 
20423-0001, and include the docket number for this proceeding. 
Because the applicable statutes and regulations impose stringent 
deadlines for processing this action, please provide written 
comments to OEA within three weeks.
    Your comments will be considered by the Board in evaluating the 
environmental and/or historic effects of the contemplated proposal 
under NEPA and section 106 of the NHPA. If you have any questions 
about the Board's environmental or historic review process, please 
contact OEA. Questions regarding this proposal, may be directed to 
us or our representative, (name of applicant's representative), who 
may be contacted at (telephone number), (email address), or (mailing 
address).


Sec.  1105.20  Newspaper Notices for Abandonment Exemption Cases.

    An applicant seeking authority to abandon and/or discontinue a rail 
line pursuant to part 1152 of this chapter that is not categorically 
excluded from further environmental review under Sec.  1105.7(a)(1) 
shall publish a notice in a newspaper of general circulation, either 
print or online, in each county in which the rail line is located and 
certify to the Board that it has done so by the date its notice of 
exemption or petition for exemption is filed. The notice shall alert 
the public to: the proposed abandonment and/or discontinuance of 
service; available alternatives, such as interim trail use and public 
use; and how members of the public may participate in a Board 
proceeding. A sample newspaper notice is provided in Appendix B to this 
part.

Appendix B to Part 1105--Sample Newspaper Notice

Sample Local Newspaper Notice for Out-of-Service Notice of 
Abandonment Exemptions

Notice of Intent To Abandon or To Discontinue Rail Service

    (Name of applicant) gives notice that on or about (date notice 
of exemption will be filed with the Board), it intends to file with 
the Surface Transportation Board a notice of exemption under 49 CFR 
1152 Subpart F--Exempt Abandonments permitting the (abandonment of 
and/or discontinuance of service over) a ___ mile line of railroad 
between milepost ___, near (station name or street name), and 
milepost ___, near (station name or street name), which traverses 
through (list ZIP codes) in (County, State). The docket number for 
this proceeding is AB ___ (Sub-No. ___ X).
    The Board's Office of Environmental Analysis will prepare an 
Environmental Assessment (EA), which will typically be available 25 
days after the filing of the notice of exemption. Comments on 
environmental and historic preservation matters may be submitted no 
later than 15 days after the EA becomes available to the public and 
will be addressed as appropriate in the Board's decision, which will 
be posted to the Board's website. Interested persons may obtain a 
copy of the EA or make inquiries regarding environmental or historic 
preservation matters by writing to the Surface Transportation Board, 
Office of Environmental Analysis, 395 E Street SW, Washington, DC 
20423-0001; or visiting the Board's website at www.stb.gov. Comments 
may be submitted electronically on the Board's website at 
www.stb.gov, or may be mailed to the address provided above.
    Offers of financial assistance to continue rail service can be 
filed with the Board under 49 U.S.C. 10904. Requests for 
environmental or historic conditions, public use conditions under 49 
U.S.C. 10905, or rail banking/interim trail use conditions under 16 
U.S.C. 1247(d) and 49 CFR 1152.29, can also be filed with the Board. 
Pleadings that raise matters other than environmental and historic 
preservation issues (such as interim trail use, public use, and 
offers of financial assistance) must be formally filed with the 
Board in accordance with the Board's regulations at 49 CFR part 
1104. Questions regarding offers of financial assistance, public use 
or interim trail use may be directed to the Board's Office of Public 
Assistance, Governmental Affairs, and Compliance at 202-245-0238.

Sample Local Newspaper Notice for Petitions for Abandonment 
Exemptions

Notice of Intent To Abandon or To Discontinue Rail Service

    (Name of applicant) gives notice that on or about (date petition 
for abandonment exemption will be filed with the Board), it

[[Page 14511]]

intends to file with the Surface Transportation Board a petition for 
exemption under 49 U.S.C. 10502 from the prior approval requirements 
of 49 U.S.C. 10903, permitting the (abandonment of and/or 
discontinuance of service over) a ___ mile rail line located between 
milepost ___, near (station name or street name), and milepost ___, 
near (station name or street name), which traverses through (list 
ZIP codes) in ___ (County, State). The docket number for this 
proceeding is AB ___ (Sub-No. ___ X).
    The Board's Office of Environmental Analysis (OEA) will prepare 
an Environmental Assessment (EA), which will typically be available 
60 days after the filing of the petition for abandonment exemption. 
Comments on environmental and historic preservation matters may be 
submitted no later than 30 days after the EA becomes available to 
the public and will be addressed as appropriate in the Board's 
decision, which will be posted on the Board's website. Interested 
persons may obtain a copy of the EA or make inquiries regarding 
environmental and historic matters by writing to the Surface 
Transportation Board, Office of Environmental Analysis, 395 E Street 
SW, Washington, DC 20423-0001; or visiting the Board's website at 
www.stb.gov. Comments may be mailed to the address provided above or 
submitted electronically on the Board's website at www.stb.gov.
    Offers of financial assistance to continue rail service can be 
filed with the Board under 49 U.S.C. 10904. Requests for 
environmental or historic conditions, public use conditions under 49 
U.S.C. 10905, or rail banking/interim trail use conditions under 16 
U.S.C. 1247(d) and 49 CFR 1152.29, can also be filed with the Board. 
Pleadings that raise matters other than environmental and historic 
preservation issues (such as interim trail use, public use, and 
offers of financial assistance) must be formally filed with the 
Board in accordance with the Board's regulations at 49 CFR part 
1104. Questions regarding offers of financial assistance, public use 
or interim trail use may be directed to the Board's Office of Public 
Assistance, Governmental Affairs, and Compliance at 202-245-0238.

[FR Doc. 2026-05791 Filed 3-24-26; 8:45 am]
BILLING CODE 4915-01-P