Environmental Review Requirements for SRF

When considering State Revolving Fund loan requests, states may either apply the same environmental review processes used in the old EPA grant program for municipal sewage treatment facilities or develop their own “NEPA-like” environmental review process. State environmental review procedures must meet minimum requirements spelled out in 40 CFR 35.3140 and Subpart K, Appendix A, which reads:

“The following criteria will be used by the EPA to evaluate a proposed SERP (State Environmental Review Process):

A. Legal foundation. Adequate documentation of the legal authority, including legislation, regulations or executive orders and/or Attorney General certification that authority exists.

B. Interdisciplinary approach. The availability of expertise either in-house or otherwise accessible to the State Agency.

C. Decision documentation. A description of a documentation process adequate to explain the basis for decisions to the public.

D. Public notice and participation. A description of the process, including routes of publication (e.g., local newspapers and project mailing list), and use of established State legal notification systems for notices of intent, and criteria for determining whether a public hearing is required. The adequacy of a rationale where the comment period differs from that under NEPA and is inconsistent with other State review periods.

E. Consider alternatives. The extent to which the SERP will adequately consider:

1. designation of a study area comparable to the final system;
2. a range of feasible alternatives, including the no action alternative;
3. direct and indirect impacts;
4. present and future conditions;
5. land use and other social parameters including recreation and open-space considerations;
6. consistency with population projections used to develop State implementation plans under the Clean Air Act;
7. cumulative impacts including anticipated community growth (residential, commercial, institutional and industrial) within the project study area; and
8. other anticipated public works projects including coordination with such projects.”

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