[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1436.17]

[Page 588]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1436_FARM STORAGE FACILITY LOAN PROGRAM REGULATIONS--Table of Contents
 
Sec.  1436.17  Environmental compliance.

    (a) Except as otherwise specified in this section, prior to approval 
of any farm storage facility loan, an environmental evaluation will be 
completed to determine if the proposed action will have any adverse 
impacts on the environment and cultural resources.
    (b) If it is determined that a proposed action or group of proposed 
actions will not result in any adverse impact, the action will be 
considered as being categorically excluded for the purpose of compliance 
with the National Environmental Policy Act (NEPA), 40 CFR parts 1500-
1508.
    (c)(1) If adverse environmental impacts (either direct or indirect) 
are identified, an environmental assessment will be completed in 
accordance with the Council on Environmental Quality's Regulations for 
Implementing the Procedural Provisions of NEPA.
    (2) The environmental assessment will be used to develop an action 
that results in no significant environmental impact on the human 
environment or cultural resources.
    (3) No action will be approved that has been determined to have 
significant impacts on the human environment or cultural resources.
    (d)(1) In order to minimize the exposure to environmental 
liabilities from the presence of contamination on real estate 
collateral, an evaluation will be made of the economic and environmental 
risks to the real estate collateral posed by the presence of hazardous 
substances and petroleum products.
    (2) If the evaluation made under paragraph (d)(1) of this section 
reveals that the collateral is or may be contaminated, then the 
applicant will be notified and given an option of offering as collateral 
other real estate that is free from contamination or remediating the 
contamination on the original site offered as collateral.