[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1703.32]

[Page 41]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1703--RURAL DEVELOPMENT--Table of Contents
 
      Subpart B--Rural Economic Development Loan and Grant Program
 
Sec. 1703.32  Environmental requirements.

    (a) Prospective recipients of zero-interest loans or grants should 
consider the potential environmental impact of their proposed projects 
at the earliest planning stage and plan development in a manner that 
reduces, to the extent practicable, the potential to affect the quality 
of the human environment adversely.
    (b) Application for zero-interest loans or grants for project 
feasibility studies. For a proposal to fund a project feasibility study, 
the only environmental information normally required is whether or not 
the proposed project being studied or analyzed will be located within an 
area protected under the Coastal Barrier Resources Act (16 U.S.C. 3501 
et seq.) Generally, the use of Federal funds to promote development on 
coastal barriers is strictly limited by the Coastal Barriers Resources 
Act.
    (c) Application for zero-interest loans or grants for a project that 
is not considered project feasibility studies. (1) The Administrator 
will review support materials in the application and initiate an 
environmental review process pursuant to 7 CFR part 1794. This process 
will focus on any environmental concerns or problems that are associated 
with the project.
    (2) The level and scope of the environmental review will be 
determined in accordance with the National Environmental Policy Act of 
1969 (NEPA), as amended, (42 U.S.C. 4321 et seq.), the Council on 
Environmental Policy for Implementing the Procedural Provisions of NEPA 
(40 CFR parts 1500--1508), RUS's environmental policies and procedures 
(7 CFR part 1794) and other relevant Federal environmental laws, 
regulations and Executive Orders.
    (3) Activity related to the project that will adversely affect the 
environment or limit the choice of reasonable alternatives must not be 
undertaken prior to completion of RUS's environmental review process.