[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: 7CFR1779.9]

[Page 1011]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1779--WATER AND WASTE DISPOSAL PROGRAMS GUARANTEED LOANS--Table of Contents
 
Sec. 1779.9  Environmental requirements.

    Facilities financed must undergo an environmental impact analysis in 
accordance with the National Environmental Policy Act and Agency 
requirements as contained in part 1794 of this chapter. In accordance 
with Agency guidance documents (RUS Bulletin 1794A-602; this document is 
available in any Agency State Office or online at http://www.usda.gov/
rus/water/ees/index.htm), the environmental review requirements shall be 
performed by the applicant simultaneously and concurrently with the 
project's engineering planning and design. This should provide 
flexibility to consider reasonable alternatives to the project and 
development methods to mitigate any adverse environmental effects. 
Facility planning and design must not only be responsive to the owner's 
needs but must consider the environmental consequences of the proposed 
project. Facility design will incorporate and integrate, where 
practicable, mitigation measures that avoid or minimize adverse 
environmental impacts. The lender must assist the Agency in ensuring 
that the borrower complies with the Agency's environmental review 
process and implements any mitigation measure identified in the 
environmental review document or Conditional Commitment for Guarantee. 
This assistance includes ensuring that the borrower takes no action (for 
example, initiation of construction) or incur any obligations that will 
have an adverse environmental impact or limit the range of alternatives 
to be considered prior to completion of the environmental review 
process. If construction is started prior to completion of the 
environmental review and the Agency is deprived of its opportunity to 
fulfill its obligation to comply with applicable environmental 
requirements, the application for financial assistance may be denied. 
Satisfactory completion of the environmental review process must occur 
prior to the approval of the applicant's request or commitment of Agency 
resources.