TREASURY DIRECTIVE: 75-02

Date: September 25, 1990

Sunset Review: TBD

Expiration: TBD

SUBJECT: Department of the Treasury Environmental Quality Program

1. PURPOSE. This directive states policy, standards, and procedures for implementing the Council on Environmental Quality (CEQ) regulations on the National Environmental Policy Act (NEPA).

2. SCOPE. This directive applies to all bureaus, the Departmental Offices, and the Office of Inspector General.

3. POLICY. It is the policy of the Department of the Treasury to fully evaluate its actions, as necessary, in accordance with the requirements of the CEQ regulations and NEPA. However, certain actions may result from statutory requirements involving little or no discretion on the part of the Department, and, in the case of such actions, NEPA and the CEQ regulations may not be applicable.

4. BACKGROUND. NEPA established national policies and goals for the protection of the environment. Section 102(2) of NEPA contains requirements directed toward the attainment of such goals. On November 29, 1978, CEQ issued regulations implementing the procedural provisions of NEPA. The regulations were binding on all Federal agencies and required that, effective July 30, 1979, each agency adopt implementing procedures to supplement the CEQ regulations.

5. RESPONSIBILITIES.

a. The Assistant Secretary (Management) is the Departmental Environmental Quality Officer (EQO) and the liaison official for the Department with the Council on Environmental Quality (CEQ), the Environmental Protection Agency (EPA), and other departments and agencies concerning environmental matters, and is responsible for the following functions:

(1) insure that the actions of the Departmental Offices and bureaus (hereafter referred to as bureaus), with respect to the fulfillment of NEPA and the CEQ regulations, are duly coordinated;

(2) provide guidance to bureaus on environmental policy and requirements;

(3) assist bureaus in review and assessing the environmental impact of proposed Treasury actions;

(4) provide guidance in the preparation, scoping, processing, and distribution of environmental assessments (EAs) and environmental impact statements (EISs);

(5) receive for clearance action all EAs and EISs, draft and final, originating in the Department;

(6) receive all EAs and EISs submitted by other agencies to the Department and coordinate the appropriate review and reply; and

(7) perform such other functions as are specified in this directive or are appropriate under the CEQ regulations or other instructions or recommendations of CEQ or EPA concerning environmental matters.

b. The Departmental Environmental Programs Officer, Office of Management Support Systems is designated as the Departmental NEPA liaison and, under the general guidance of the Director, Office of Management Support Systems shall provide program support to the Assistant Secretary (Management) in carrying out the responsibilities set forth in this directive.

c. Assistant Secretaries and Heads of Bureaus shall:

(1) prepare, and circulate for the consideration of others, EAs and EISs when an action or policy area in question falls under their jurisdiction;

(2) issue any supplementary procedures consistent with this directive for the implementation of NEPA which the bureau deems necessary. Any such procedures which were issued after July 30, 1979, shall be submitted for review and concurrence by the Departmental EQO. Procedures which were in existence at such date shall be revised in accordance with the CEQ regulations and this directive and also shall be submitted for review and concurrence. Such procedures shall be published in the bureau directives system;

(3) assure that communications with CEQ, EPA, and other Government agencies or individuals on matters concerning Treasury compliance with NEPA and the relevant CEQ regulations are signed by, or coordinated with, the Departmental EQO. Examples of such communications are letters transmitting EAs and EISs, and reports and all Departmental contacts relevant to Department of the Treasury compliance with NEPA and the CEQ regulations. Unless special circumstances indicate that a different officer should act, communications announcing decisions to prepare EAs or EISs, requesting comments on draft statements, or transmitting final statements for the information of agencies or persons commenting on draft statements, shall also be signed by the Departmental EQO and, in the case of a Federal agency, shall be addressed to its Departmental EQO or equivalent official;

(4) designate a Bureau Environmental Quality Officer (BEQO) and alternate in their respective bureaus;

(5) perform such other functions as specified in this directive; and

(6) be responsive to requests from the CEQ and EPA for reports or other information in connection with the implementation of NEPA, and for the preparation and circulation of EISs as required by Section 1506.9 of the CEQ regulations.

d. Bureau Environmental Quality Officers shall:

(1) identify bureau actions requiring an EA or EIS;

(2) ensure each required assessment or statement is prepared timely and with the prescribed content by appropriate bureau staff;

(3) ensure the bureau's compliance with the requirements of NEPA, the CEQ regulations, and this directive, in particular, by coordinating the review within the bureau of such statements and assessments, and by maintaining compliance with all applicable scheduling, scoping, consultation, circulation, public hearing, and publicity requirements; and

(4) maintain effective communication and consultation with the Departmental EQO and inform key bureau officials of current developments in environmental policy and programs; and

(5) ensure the assessment of the environmental impact of actions concerning various areas of Treasury policy and operations as specified below, and the preparation of EAs and EISs relating thereto, shall be coordinated in consultation with the Departmental EQO and the official having primary responsibility as follows:

Action Area	Official Responsible for Coordination
Administration of facilities, physical operations, procurement, contracts, leases, etc.	Assistant Secretary (Management)
Tax policy recommendations and legislation.	Assistant Secretary   (Tax Policy)
Non-tax legislative recommendations and reports.	General Counsel
International environmental matters.	Assistant Secretary (International Affairs)
Energy and natural resource matters.	Assistant Secretary (Economic Policy)

6. TERMINOLOGY. Part 1508 of the CEQ regulations requires that the terminology contained therein shall be uniform throughout the Federal Government. Therefore the terminology in Part 1508 shall be employed for purposes of this directive.

7. THE NEPA PROCESS.

a. Integrating NEPA Process With Bureau Planning and Decision making.

(1) The ultimate purpose of the NEPA is to ensure that public officials make decisions based on an understanding of the environmental consequences of proposed Federal actions. The means provided by NEPA to achieve its goals is called the "NEPA process" and is outlined in Section 102(2) of NEPA.

(2) To comply with NEPA, bureaus must ensure that the NEPA process is integrated with bureau planning and decision making as early as possible (Sections 1501.2 and 1505.1, CEQ Regulations). Accordingly, bureaus shall:

(a) make sure that, where necessary, final EAs or EISs and related documents accompany proposals through the entire review process;

(b) consider and balance pertinent nonenvironmental factors with those relating to the environment and consider all practicable alternatives and mitigation measures identified in the environmental documents;

(c) make no decision on a proposed action until the timing requirements outlined in paragraph 9.d.(1) of this directive have been met; and

(d) prepare a concise public record of the decision at the time it is made, or, for a legislative EIS, at the time of its recommendation to Congress. This record will be prepared in accordance with Section 1505.2 of the CEQ regulations.

b. Early Involvement of the Bureaus in Actions Initiated by Non-Federal Entities.

(1) Section 1501.2(d) of the CEQ regulations requires agencies to provide for early involvement in actions which, while planned by private applicants or other non-Federal entities, require some form of Federal approval.

(2) To implement these requirements with respect to these kinds of actions (for example, permits or approvals in connection with national banks or wineries) each bureau shall:

(a) prepare, where practicable, generic guidelines describing the scope and level of environmental information required from applicants as a basis for evaluating their proposed actions and make these guidelines available;

(b) provide such guidance on a project-by-project basis to applicants seeking assistance from the bureau; and

(c) upon receipt of an application for bureau approval, or notification that an application will be filed, consult as required with other appropriate parties to initiate and coordinate any necessary environmental analyses.

(3) The bureau shall independently evaluate the information submitted by the applicant and shall be responsible for its accuracy. If the bureau chooses to use the information submitted by the applicant in an EA or EIS, it must include the names of the persons responsible for the independent evaluation in a list of preparers (Section 1506.5(a), CEQ regulations).

(4) To facilitate compliance with the requirements above, private applicants and other non-Federal entities should be advised to:

(a) contact the bureau as early as possible in the planning process for guidance on the scope and level of environmental information which may be required to be submitted in support of their application;

(b) conduct any studies which are deemed necessary and appropriate by the bureau to determine the impact of the proposed action on the human environment;

(c) consult with appropriate Federal, regional State and local agencies and other potentially interested parties during preliminary planning stages to ensure that all environmental factors are identified;

(d) submit applications for necessary Federal, regional, State and local approvals as early as possible in the planning process;

(e) notify the bureau as early as possible of any other Federal, regional, State, local and Indian tribe actions required for project completion so that the bureau may coordinate all Federal environmental reviews; and

(f) notify the bureau of any known parties potentially affected by, or interested in, the proposed action.

c. Classes of Action Requiring Similar Treatment Under NEPA.

(1) Actions undertaken by the Department of the Treasury may be broken down into three main classes of action consisting of actions:

(a) normally requiring EISs;

(b) normally requiring EAs but not necessarily EISs; and

(c) requiring neither an EIS nor an EA (i.e., "categorical exclusions").

(2) The Department of the Treasury does not, in general, have responsibility for actions which will normally have a significant effect on the quality of the human environment and, therefore, it is difficult to establish detailed criteria for determining what proposed actions within the Department of the Treasury may require an EA or EIS. Decisions as to whether environmental documentation is required shall be made on a case-by-case basis by the head of the bureau involved in conjunction with the BEQO and the Departmental EQO. The following are examples of bureau actions which fall within one of the classes of actions listed in paragraph 7.c.(1), and which might be used as an indication of the treatment which may be given to similar actions in the future.

(a) Bureau actions normally requiring EISs include proposals for major Treasury building projects involving land acquisition and construction of new facilities, or for major tax expenditure legislation by the Office of Tax Policy which may have a significant effect on the environment.

(b) Bureau actions normally requiring EAs, but not necessarily EISs, include proposals to build new border stations by the U.S. Customs Service, significant program changes at the Federal Law Enforcement Training Center, or approval of plastic liquor bottles by the Bureau of Alcohol, Tobacco and Firearms.

(c) Bureau actions which are CATEGORICALLY EXCLUDED include funding assistance solely in the form of general revenue sharing funds, distributed under the State and Local Fiscal Assistance Act of 1972 (31 U.S.C. 1221, et seq.), with no Federal control over the subsequent use of such funds; and Internal Revenue Service functions in the administration of the Internal Revenue Code, such as regulations interpreting, implementing, or clarifying code provisions, revenue and letter rulings and memorandums, revenue procedures, and forms and publications to assure proper record retention, reporting, and payment of tax as due.

(3) In the event a proposed bureau action falls within either category (a) or (b) of paragraph 7.c.(1), the bureau should take the appropriate steps outlined in this directive in paragraphs 8. and 9. If the proposed action is "categorically excluded" then the bureau need not address the environmental effects of the action.

8. ENVIRONMENTAL ASSESSMENTS (EAs).

a. NEPA requires that for all proposals for legislation or other major Federal actions significantly affecting the quality of the human environment, the environmental implications of the proposal are to be explored.

b. Whenever it appears that a bureau matter, including the continuance of any action or program already initiated, could constitute a major action significantly affecting the quality of the human environment, whether beneficially or adversely, an EA shall be prepared as soon as possible, and at all times prior to the decision to take or to continue the action. Consistent with the views of the Departmental EQO, the head of the bureau, or an officer specifically designated by the bureau head for the purpose, shall prepare the assessment. The bureau EQO shall participate as appropriate in this preparation. The assessment shall be submitted to the Departmental EQO for review and approval.

c. To the extent practicable, other agencies, applicants, and the public should be involved in preparing the EA (see also Section 1501.7, CEQ regulations). Bureau responsibility for information provided by applicants for use in preparing an EA or for assessments prepared by an applicant for a bureau, is outlined in Section 1506.5(b) of the CEQ regulations.

d. In accordance with Section 1508.9 of the CEQ regulations, the EA shall:

(1) describe the proposed action and the need for it;

(2) briefly describe the environmental impacts of, and alternatives to, the proposed action, including mitigation measures;

(3) list the agencies and persons consulted; and

(4) provide a brief analysis, based upon the above evidence, for determining whether to prepare an EIS, or a finding of no significant impact.

e. The bureau shall make EAs and findings of no significant impact available to the public in keeping with paragraph 10.

f. An EA need not be prepared if a bureau has decided to prepare an EIS on a proposed action.

9. ENVIRONMENTAL IMPACT STATEMENTS (EISs).

a. Once it is determined that a bureau shall be responsible for preparing an EIS, a notice of intent shall be promptly published in the Federal Register. The Departmental EQO will provide the BEQO with a sample of such notice and information on the procedures to be followed.

b. The scoping process, outlined in Section 1501.7 of the CEQ regulations, shall be used for determining the scope of issues to be addressed and for identifying the significant issues related to the proposed action. The bureau involved and the Departmental EQO shall be responsible for carrying out the scoping process in accordance with the CEQ regulations.

c. Section 1501.5(a) of the CEQ regulations provides that a lead agency shall supervise the preparation of an environmental impact statement if more than one Federal agency either proposes or is involved in the same action, or is involved in a group of actions directly related to each other because of their functional interdependence or geographical proximity (see also Section 1506.2, CEQ regulations). In the event the preparation of an EIS for a proposed bureau action requires the designation of a lead agency for either of these reasons, the head of the bureau shall contact the Departmental EQO for guidance. Any communications with other agencies which deal with lead agency designations shall be coordinated with the Departmental EQO. The criteria and responsibilities for lead and cooperating agencies are outlined in Section 1501.5 and 1501.6 of the CEQ regulations, respectively.

d. EISs shall first be issued in draft, for comment by Government agencies and the public as appropriate. Final EISs responsive to substantive comments received shall then be issued. Requirements for preparing and circulating draft and final statements (Part 1502 of the CEQ regulations) are as follows:

(1) Timing.

(a) The timing of the preparation, circulation, submission, and public availability of EISs is of great importance. EISs are not intended to be justification documents for proposed actions but are to be objective evaluations of proposed actions and their alternatives in light of all reasonably pertinent environmental considerations (Section 1502.2(g), CEQ regulations).

(b) EISs are then filed with the EPA. The EPA, in turn, publishes a weekly notice in the Federal Register of the EISs filed during the preceding week. No decisions on the proposed action may be made by the bureau until the following time periods calculated from the publication date of the EPA notice have been observed.

1 Not less than 45 days for comment on draft statements (Section 1506.10(c), CEQ regulations).

2 Not less than 90 days and 30 days, respectively, for public availability of draft and final statements prior to administrative actions. These periods may run concurrently (Section 1506.10(b) and (c), CEQ regulations).

3 Not less than 15 days for public availability of draft statements prior to any relevant hearing on proposed administrative actions (Section 1506.6(c)(2), CEQ regulations).

4 The time periods prescribed in paragraphs through 3 may be extended or reduced, in specific instances, in accordance with Section 1506.10 of the CEQ regulations.

(2) Securing Information.

(a) The full resources of the Department of the Treasury should be utilized in developing the factual and analytic information and reference sources required in the preparation of an EIS. The assistance of other agencies, Federal, State, or local, with jurisdiction by law or special expertise concerning the environmental impacts involved should also be sought. Further, in accordance with Section 1506.3 of the CEQ regulations, bureaus may adopt, in whole or in part, a draft or final EIS prepared elsewhere in the Department or by another Federal agency.

(b) If BEQOs have difficulties in securing requisite information or need guidance in making necessary analyses, they should consult the Departmental Environmental Programs Officer, who will assist in locating needed information through the CEQ, EPA, or other appropriate sources.

(3) Writing and Content.

(a) EISs are to be written in plain language, and may include appropriate graphics, so that bureau decisionmakers and the public can readily understand them (Section 1502.8, CEQ regulations).

(b) The "scoping" process, as discussed in paragraph 9.b., shall be utilized so that only significant issues related to the proposed action are analyzed in depth.

(c) EISs should be as concise as possible while still providing adequate, meaningful, and factual information and analysis to permit an evaluation of the proposed action from the environmental standpoint. Their length shall normally be less than 150 pages, and for proposals of unusual scope or complexity, less than 300 pages (Section 1502.7, CEQ regulations). "Tiering" (Section 1502.20, CEQ regulations) and "incorporation by reference" (Section 1502.21, CEQ regulations) should be used, where appropriate, to insure that statements are kept concise.

(d) Quantitative information about the proposed action, including actual or estimated data on its probable effects, should be included to the greatest extent practicable. If a cost-benefit analysis of the proposed action has been prepared, it should be incorporated by reference or appended to the EIS as an aid in evaluating the environmental consequences (Section 1502.23, CEQ regulations).

(e) All reasonable alternatives and their environmental impacts shall be addressed, regardless of whether or not they are not within the authority of the Department (Section 1502.14(c), CEQ regulations). Appropriate mitigation measures shall also be discussed (Section 1502.14(f), CEQ regulations). See also paragraph 16.

(f) The basic content requirements for EISs are set forth in Section 1502.10-25 of the CEQ regulations. Bureaus shall follow the prescribed outline and content requirements described therein as closely as is feasible in each particular case.

(g) Draft and final statements should refer to the underlying studies, reports, and other documents considered by the preparing bureau and indicate how such documents may be obtained. With the exception of standard reference documents, such as congressional materials, the bureau should maintain a file of the respective documents which may be consulted by interested persons. If especially significant documents are attached to the EIS, care should be taken to insure that the statement remains an essentially self-contained instrument easily understood without the need for undue cross-reference.

(4) Utilizing Contractors. A contractor may be selected to prepare the EIS. Bureau responsibility, in the event a contractor is employed, is outlined in Section 1506.5© of the CEQ regulations.

(5) Circulation. The entire draft and final EIS shall be circulated in accordance with Section 1502.19 of the CEQ regulations. Appendices and unchanged statements may be treated in accordance with Sections 1502.18(d) and 1503.4(c). If the statement is unusually long, the bureau may circulate the summary instead (Section 1502.12, CEQ regulations), except that the entire statement shall be furnished as specified in Section 1502.19.

(6) Commenting.

(a) With respect to draft EISs, it is essential that the bureaus consult with, and take account of the comments of, appropriate Federal, State and local agencies. This shall involve the formal solicitation of review and comments on the draft statement (Section 1503.1, CEQ regulations). When appropriate, procedures for obtaining State and local comments shall be utilized (Section 1503.1(a)(2), CEQ regulations).

(b) Comments should also be requested from individuals or organizations which appear to have a special interest in some significant environmental aspect of the proposed action (Section 1503.1(a)(4), CEQ regulations).

(c) All substantive comments received on draft EISs (or summaries thereof where the comments are exceptionally long), should be attached to final EIS, whether or not each such comment is thought to merit individual discussion in the text of the statement (Section 1503.4(b), CEQ regulations).

(d) Section 102(2)(C) of NEPA requires that the final EIS shall accompany the proposal to which it relates through the agency review process. See paragraph 7.a. for the proper utilization of final statements.

10. PROPOSALS FOR LEGISLATION.

a. Legislative EISs are required in recommendations or reports on legislative proposals to Congress which significantly affect the quality of the human environment. A legislative EIS shall be considered part of the formal transmittal of a legislative proposal to Congress; although it may be sent to Congress up to 30 days later to allow time for completion and accuracy. In all instances, the legislative statement must be available in time for Congressional hearings and deliberations in order that it may serve as a basis for public and Congressional debate (Section 1506.8(a), CEQ regulations).

b.Bureaus with primary responsibility for legislative proposals originating in the Department, which will significantly affect the quality of the human environment, shall be responsible for preparing legislative EISs.

c. Preparation of a legislative EIS shall conform to the requirements for EISs as provided in paragraph 9. of this directive except as follows:

(1) There need not be a "scoping" process.

(2) The legislative EIS, although prepared in the same manner as a draft EIS, shall be considered that "detailed statement" required by statute. Provided that, when any of the following conditions exist, both a draft and final legislative EIS shall be prepared and circulated as provided in Sections 1503.1 and 1506.10 of the CEQ regulations.

(a) A congressional committee with jurisdiction over the proposal has a rule requiring both draft and final EISs.

(b) The proposal results from a study process required by statute.

(c) Legislative approval is sought for Federal or federally assisted construction or other projects which the bureau recommends be located at specific geographic locations. For proposals requiring an EIS for the acquisition of space by the General Services Administration (GSA), draft and final EISs shall be provided to GSA for use during the approval process.

(d) The bureau decides to prepare draft and final statements.

d. Close coordination shall be maintained between the Departmental EQO and Office of the General Counsel with regard to the latter's normal responsibility concerning Departmental legislative proposals.

11. PUBLIC INVOLVEMENT. Section 1506.6 of the CEQ regulations requires public involvement in the NEPA process. To comply with this requirement bureaus shall:

a. Provide for public hearings whenever appropriate. Whenever, under the normal policies or procedures of a bureau, a hearing would be held on a matter requiring the preparation of an EIS, the environmental aspects should be included in the hearing. In other cases, the question of whether a hearing should be held with respect to an environmental matter shall be determined in accordance with the criteria set forth in Section 1506.6© of the CEQ regulations. Normally, all hearings contemplated in this paragraph should be based on a draft EIS which should be made available to the public at least 15 days before the hearing.

b. Provide public notice of NEPA-related hearings, public meetings, and the availability of environmental documents. The notice should be provided by the means most likely to inform those persons and agencies who may be interested or affected.

(1) Section 1506.6(b) of the CEQ regulations provides notification methods that may be used, including publication in local newspapers of general circulation, notice to State and local clearinghouses, and notice by mail.

(2) A notice of the filing and availability of each EIS, draft and final, shall be inserted in the Federal Register by the responsible bureau. The Departmental Environmental Programs Officer will supply a sample outline of such notices and information on the procedures to be followed.

c. Make EISs and EAs, along with any comments and underlying documents, available to the public pursuant to the Freedom of Information Act (5 U.S.C. 552), the Department's regulations thereunder (31 CFR Part 1), and the disclosure regulations of the bureau (Section 1506.6(f), CEQ regulations).

(1) These materials are to be placed in the public reading room of the Treasury Library in the Main Treasury Building, Washington, D.C., and the public reading rooms of the bureaus if any are maintained. The documents may be read or copied during working hours.

(2) Copies to be made available to the public shall normally be provided without charge. However, when such costs are significant, the bureau may, in accordance with Section 1506.6(f) of the CEQ regulations, establish a fee which shall not exceed the actual cost of reproducing the copies.

d. Provide for public involvement as specified elsewhere in this directive.

12. FILING AND DISTRIBUTION OF EISs AND SUPPLEMENTAL STATEMENTS.

a. Five copies of draft and final EISs, comments, and responses shall be filed with EPA, Attention: Office of Federal Activities, 401 M Street, S.W., Washington, D.C. 20460.

b. At the same time as they are filed with EPA, EISs shall also be sent to commenting agencies and made available to the public (Section 1506.9, CEQ regulations).

c. Any supplement to an EIS shall be made a part of the formal record, if such a record exists, before a final decision on the proposal is made (Section 1502.9(c)(3), CEQ regulations).

13. MITIGATION. Bureaus shall ensure that mitigation measures that have been identified in EAs and EISs are carried out. Bureaus shall institute procedures, in coordination with the Departmental EQO, to ensure that the mitigation measures are carried out (Sections 1505.2© and 1505.3, CEQ regulations).

14. COMMENTING ON OTHER AGENCIES' STATEMENTS.

a. As set forth in paragraph 5.a.(6), the Departmental EQO shall receive all EAs and EISs submitted by other agencies for comment and coordinate the appropriate review and reply.

b. If any bureau receives a request for comment directly from another agency, the request, together with the respective documents, shall be referred to the Departmental EQO for appropriate action.

c. Comments should be confined to matters within the jurisdiction or expertise of the Department of the Treasury. However-, comments need not be limited to environmental aspects, but may relate to fiscal, economic, and non-governmental matters of concern to the Department.

15. EMERGENCIES. In the event of emergencies which may prevent bureau compliance with this directive or the CEQ regulations, the CEQ may be consulted, through the Departmental EQO, about alternative arrangements (Section 1506.11, CEQ regulations).

16. OTHER REQUIREMENTS.

a. Integrating Departmental Procedures With Other Environmental Review and Consultation Requirements.

(1) Section 1501.7(a)(6) of the CEQ regulations requires that, as part of the scoping process, agencies identify other environmental review and consultation requirements so that any other required analyses or studies may be prepared concurrently and integrated with EAs and EISs.

(2) The attention of the bureaus is directed particularly to the analyses and studies required by the Fish and Wildlife Coordination Act (16 U.S.C. 661, et seq.); the National Historic Preservation Act of 1966, as amended, (16 U.S.C. 470, et seq.); the Endangered Species Act of 1973 (16 U.S.C. 1531, et seq.); E.O. 11988, "Floodplain Management," dated May 24, 1977; E.O. 11990, "Protection of Wetlands," dated May 24, 1977; CEQ Memorandum, "Interagency Consultation to Avoid or Mitigate Adverse Effects on Rivers in the Nationwide Inventory," dated August 10, 1980; CEQ Memorandum, "Analysis of Impacts on Prime or Unique Agricultural Lands in Implementing the National Environmental Policy," dated August 11, 1980; and other similar requirements.


b. EPA Review.

(1) Section 309 of the Clean Air Act (42 U.S.C. 7609) provides that the Administrator of EPA shall comment in writing on the environmental impact of any matter within the area of EPA responsibility. Those areas include air and water quality, noise abatement and control, pesticide regulation, solid waste disposal, and generally applicable environmental radiation criteria and standards. Whenever an applicable bureau action is involved in one of these areas, the bureau is required to submit five copies of the respective EIS to EPA for review and comment, in addition to the five copies required in paragraph 12.a.

(2) If the Administrator of EPA determines that the matter "is unsatisfactory from the standpoint of public health or welfare or environmental quality," the matter is to be referred to the CEQ in accordance with the criteria and procedures outlined in Sections 1504.2 and 1504.3 of the CEQ regulations.

(3) Under Section 102(2)(C) of NEPA, other Federal agencies are authorized to make similar reviews and referrals in accordance with the criteria and procedures in Section 1504.2 and 1504.3 of the CEQ regulations.

17. REQUIREMENTS FOR FLOODPLAIN MANAGEMENT AND PROTECTION OF WETLANDS.

a. E.O. 11988, "Floodplain Management," and E.O. 11990, "Protection of Wetlands," direct Federal agencies to ensure that the potential effects of any proposed actions they may take in a floodplain or wetland are considered and evaluated in their decision making.

b. In a Federal Resister notice of May 24, 1978 (43 FR 22311), the Department of the Treasury advised, as a general rule, it does not engage in activities which would impact on floodplain or wetlands. It was further stated that no separate Treasury procedures implementing these E.O.s would be issued, but rather that such procedures would be incorporated in this directive.

c. Procedures for floodplain management and protection of wetlands are as follows:

1) To the extent possible, bureaus are to avoid actions which would result in modification or destruction of floodplain and wetlands and, wherever there is a practicable alternative, are to avoid direct or indirect support of new development or construction in floodplain or wetlands.

(2) In the case of any proposed Departmental action which may involve floodplain or wetlands, and which may require the preparation of and EA or EIS, the assessment or statement shall include necessary data on the floodplain or wetlands in keeping with these procedures. In the event the proposed action does not require an assessment or impact statement, these procedures shall still be followed as concerns the floodplain or wetlands.

(3) In the event of floodplain or wetlands involvement, the following procedural steps are to be followed. Although these steps specifically mention floodplain, they are also applicable to wetlands involved as appropriate.

(a) Determine if the proposed action is in a floodplain.

(b) Provide for public involvement in a floodplain management decision making process by informing the public of the intent to locate in the floodplain, and by encouraging public comments thereon.

(c) Identify and evaluate practicable alternatives to locating in a floodplain, including alternative sites, alternative actions, or no action.

(d) If determined that the only practicable alternative is to locate in a floodplain, identify the impacts of the proposed action using the NEPA process and EA or EIS procedures in this directive. Focus especially on the adverse impacts of the proposed action on lives and property in the area, and on natural and beneficial floodplain values.

(e) If harm to, or within, a floodplain may result from the proposed action, determine ways to minimize the harm and to restore and preserve the floodplain values.

(f) Reevaluate the proposed alternatives, based on the information obtained from paragraphs 17.c.(2)(c), (d), and (e), and consider whether the proposed action is still feasible at the site or should be limited.

(g) A statement of findings and public explanation, including a brief comment period, must be provided for the proposed action if reevaluation determines that the proposed action is the only practicable alternative.

18. CANCELLATION. Treasury Directive 75-02, "Department of the Treasury Environmental Quality Program," dated January 3, 1980, is superseded.

19. AUTHORITIES.

a. Public Law 91-190, National Environmental Policy Act of 1969, as amended, (42 U.S.C. 4321, et sea.).

b. E.O. 11514, "Protection and Enhancement of Environmental Quality," dated March 5, 1970, as amended by E.O. 11991, dated May 24, 1977.

c. Council on Environmental Quality, "National Environmental Policy Act Regulations," 40 CFR Parts 1500-1508 (43 FR 55978), dated November 29, 1978.

d. Section 309 of the Clean Air Act, as amended (42 U.S 7609).

e. E.O. 11988, "Floodplain Management," dated May 24, 1977.

f. E.O. 11990, "Protection of Wetlands," dated May 24, 1977.

20. OFFICE OF PRIMARY INTEREST. Office of Management Support Systems, Management Programs Directorate, Office of the Deputy Assistant Secretary for Departmental Finance and Management, Office of the Assistant Secretary (Management).

Linda M. Combs

Assistant Secretary (Management)