[Federal Register Volume 63, Number 135 (Wednesday, July 15, 1998)]
[Notices]
[Pages 38172-38174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18817]
=======================================================================
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
Statement of Policy Regarding the National Environmental Policy
Act of 1969
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Proposed Statement of Policy.
-----------------------------------------------------------------------
SUMMARY: As part of the FDIC's systematic review of its regulations and
written policies under section 303(a) of the Riegle Community
Development and Regulatory Improvement Act of 1994 (CDRI Act), the FDIC
is proposing to revise its Statement of Policy on the National
Environment Policy Act of 1969 (NEPA). The original Statement of
Policy, issued on March 31, 1980, describes the FDIC's responsibility
and procedures with respect to the NEPA.
The revised Statement of Policy reflects the FDIC's experience in
applying the current NEPA Statement of Policy, and primarily affects
applications for deposit insurance for de novo institutions,
establishment of a domestic branch, and relocation of a domestic branch
or main office. Categorical exclusions are established for all other
filings submitted to the FDIC pursuant to 12 CFR part 303. In
extraordinary circumstances, however, the NEPA procedures may also
impact categorically excluded filings. The revision also makes the
Statement of Policy more concise and understandable.
DATES: Comments must be submitted on or before August 31, 1998.
ADDRESSES: Send written comments to Robert E. Feldman, Executive
Secretary, Attention: Comments/OES, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, D.C. 20429. Comments may
be hand delivered to the guard station located at the rear of the 17th
Street building, on F Street, on business days between 7:00 a.m. and
5:00 p.m. The FAX number is (202) 898-3838, and the Internet address is
comments@fdic.gov. Comments may be inspected and photocopied at the
FDIC Public Information Center, Room 100, 801 17th Street NW,
Washington, D.C., between 9:00 a.m. and 4:30 p.m. on business days.
FOR FURTHER INFORMATION CONTACT: Marilyn Reddy, Review Examiner,
Division of Supervision (202) 898-6772; A. Ann Johnson, Counsel, Legal
Division (202) 898-3573; David Fisher, Counsel, Legal Division (202)-
736-3103, Federal Deposit Insurance Corporation, Washington, D.C.
20429.
SUPPLEMENTARY INFORMATION: The FDIC is conducting a systematic review
of its regulations and written policies. Section 303(a) of the CDRI
Act, 12 U.S.C. 4803(a), requires the FDIC to streamline and modify its
regulations and written policies in order to improve efficiency, reduce
unnecessary costs, and eliminate unwarranted constraints on credit
availability. Section 303(a) also requires the FDIC to remove
inconsistencies and outmoded and duplicative requirements from its
regulations and written policies.
As part of this review, the FDIC has determined that its Statement
of Policy on the NEPA should be revised. The NEPA sets forth a national
policy to promote preservation of the environment. It requires, in
part, that all agencies of the Federal Government include in every
recommendation or report on major Federal actions significantly
affecting the quality of the human environment a detailed statement
that addresses the environmental impact of the proposal. The Council on
Environmental Quality (CEQ) has adopted regulations that implement this
requirement. 40 CFR part 1500.
The FDIC issued its current Statement of Policy in 1980 to provide
guidance on the NEPA and its implementing regulations. The Statement of
Policy provides that the FDIC will consider relevant environmental
factors and make a threshold determination that a proposed action does
or does not significantly affect the environment. The determination is
required for applications for deposit insurance, to establish a branch,
to merge, or to move an office. The current Statement of Policy also
provides detailed information on the preparation of an environmental
impact statement.
Consistent with the goals of the CDRI Act review, the FDIC is
proposing modifications to the Statement of Policy that will enhance
efficiency in implementing the NEPA requirements. Pursuant to the CEQ
regulations (40 CFR 1507.3(b)), the proposed Statement of Policy
establishes categorical exclusions for all filings made by depository
institutions pursuant to 12 CFR part 303 with the exception of
applications for deposit insurance for de novo institutions, and
applications for establishment of a domestic branch or relocation of a
domestic branch or main office. Absent extraordinary circumstances,
filings subject to a categorical exclusion require no further NEPA
action.
For those applications that are categorically excluded, the
proposed Statement of Policy provides that the FDIC may request
additional information from applicants if extraordinary circumstances
indicate that a normally excluded action may have a significant
environmental effect. For example, additional information may be
requested where filings involve real property with endangered or
threatened species, wetlands or floodplains, cultural or historic
sites, or where construction is proposed.
The proposed Statement of Policy also describes the
responsibilities of the applicant in submitting a part 303 filing and
the FDIC in reviewing the filing. Before approving a filing that is not
categorically excluded, the FDIC must prepare an environmental
assessment (EA). The applicant is required to submit sufficient
information for the FDIC to determine whether the application may
affect the quality of the human environment.
If the EA prepared by the FDIC indicates that approval of the
filing will not significantly affect the quality of the human
environment, the NEPA process
[[Page 38173]]
will conclude with a finding of no significant impact (FONSI) to
document the FDIC's determination.
On the other hand, if the EA indicates that approval of the filing
may significantly affect the quality of the human environment, the FDIC
will prepare and circulate an environmental impact statement (EIS) in
accordance with the CEQ regulations. Because cases that involve the
preparation of an EIS are expected to be extremely rare, the proposed
Statement of Policy no longer includes detailed information on the
preparation of an EIS. Instead, the proposed Statement of Policy states
that the FDIC will comply with the requirements of the CEQ regulations.
In addition, the proposed Statement of Policy provides for public
involvement in the FDIC's NEPA compliance activities.
According to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.),
the FDIC may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless it displays a currently
valid Office of Management and Budget (OMB) control number. Although
the proposed Statement of Policy does not create or change any
collection of information, OMB has approved the information collections
referenced in the proposed Statement of Policy as parts of a larger
collection of information. OMB control numbers for the approved
information collections specifically referenced in the proposed
Statement of Policy are OMB control number 3064-0001, expiring on July
31, 2000, for applications dealing with deposit insurance, and OMB
control number 3064-0070, expiring on November 30, 2000, for
applications dealing with establishment of a branch, relocation of a
main office, and relocation of a branch. Application requirements and
procedures are located at 12 CFR part 303.
The Board of Directors of the FDIC hereby proposes the revised
Statement of Policy on the National Environmental Policy Act, as set
forth below.
Proposed Statement of Policy; National Environmental Policy Act;
Procedures Relating to Filings Made With the FDIC
This Statement of Policy addresses the FDIC's compliance with the
National Environmental Policy Act of 1969, 42 U.S.C. 4331, et seq.
(NEPA), with respect to applications, notices, and requests (filings)
submitted to the FDIC in accordance with governing regulations at 12
CFR part 303. The procedures in this Statement of Policy primarily
affect applications for deposit insurance for de novo institutions,
establishment of a domestic branch, and relocation of a domestic branch
or main office. There may be extraordinary circumstances where these
NEPA procedures also impact other filings submitted pursuant to part
303.
A. Responsibility of the FDIC
The NEPA sets forth a national policy to promote preservation of
the environment. Section 102(2)(C) of the NEPA requires, in part, that
all agencies of the Federal Government include in every recommendation
or report on major Federal actions significantly affecting the quality
of the human environment a detailed statement that addresses the
environmental impact of the proposal. The Council on Environmental
Quality (CEQ) has adopted regulations that implement section 102(2)(C)
of the NEPA. 40 CFR part 1500.
The FDIC believes that its decisions on part 303 filings will
rarely have a significant effect on the human environment.
Nevertheless, it is the policy of the FDIC to evaluate fully its
regulatory actions, as necessary, in accordance with the requirements
of the NEPA. This Statement of Policy supplements, and shall be used by
the FDIC in conjunction with, the CEQ regulations.
B. Background
NEPA and the implementing CEQ regulations require a Federal agency
to prepare an ``environmental impact statement'' (EIS) to analyze the
effects of, and discuss alternatives for, any proposed major Federal
action (including approval of a filing) significantly affecting the
quality of the human environment. Often, to determine whether an EIS
must be prepared, an agency will prepare an ``environmental
assessment'' (EA). The EA will result in either a finding that an EIS
must be prepared, or a finding of no significant impact (FONSI).
C. Definitions
As used in this statement of policy:
``Major Federal action'' includes actions with effects
that may be major and which are potentially subject to Federal control
and responsibility.
``Environmental impact statement'' (EIS) means a detailed
written statement as required by section 102(2)(C) of the NEPA which
analyzes the environmental impact of the FDIC's approval of a filing.
``Environmental assessment'' (EA) means a concise document
that sets forth sufficient information for the FDIC to determine
whether to prepare an EIS.
``Finding of no significant impact'' (FONSI) means a
determination that approval of the filing will not have a significant
effect on the quality of the human environment and therefore no further
NEPA analysis is required.
``Categorical exclusion'' means a category of filings that
do not individually or cumulatively have a significant effect on the
human environment, and which require no NEPA analysis.
D. Categorical Exclusions
The CEQ regulations require Federal agencies to develop categorical
exclusions as part of the agencies' NEPA procedures. 40 CFR
1507.3(b)(2)(ii). Accordingly, the FDIC is establishing categorical
exclusions for all filings made by depository institutions pursuant to
part 303 with the exception of applications for:
(1) Deposit insurance for de novo institutions.
(2) Establishment of a domestic branch, or relocation of a domestic
branch or main office.
All other part 303 filings are subject to categorical exclusions
and, therefore, require no further NEPA action. Consistent with the CEQ
regulations, however, the FDIC may request additional information from
applicants if extraordinary circumstances indicate that a normally
categorically excluded action may have a significant environmental
effect. Such extraordinary circumstances may exist, for example, where
filings involve real property where endangered or threatened species,
wetlands or floodplains may be present, where the applicant's proposed
activity impacts cultural or historic sites, or where construction is
proposed.
E. FDIC Procedure
In reviewing a part 303 filing, the FDIC will determine whether the
filing falls within the categorical exclusions established by this
statement of policy. If the filing falls within the categorical
exclusions, the FDIC will determine whether the proposal involves any
extraordinary circumstances that require NEPA analysis. If necessary,
the FDIC may request additional information from an applicant to aid in
this determination.
1. Environmental Assessment
The FDIC must prepare an EA before approving a filing for (1)
deposit insurance for a de novo institution, or (2) establishment of a
domestic branch, or relocation of a domestic branch or main office. The
applicant must provide sufficient information for the FDIC to determine
whether the application may
[[Page 38174]]
affect the quality of the human environment.
The applicant shall provide information on compliance with local
zoning laws and regulations, and effects on traffic patterns
(including, for example, adequacy of roads and parking places, increase
or decrease of traffic hazards and congestion, and favorable impacts
such as potential decrease in pollution or fuel consumption). The FDIC
may request additional information, as warranted, on other matters.
Based on its evaluation of this information, the FDIC will prepare the
EA.
2. Finding of No Significant Impact
If the EA indicates that approval of the filing will not
significantly affect the quality of the human environment, the NEPA
process will conclude with a FONSI to document the FDIC's determination
of no significant effect on the human environment.
3. Environmental Impact Statement
If the EA indicates that approval of the filing may significantly
affect the quality of the human environment, the FDIC will prepare an
EIS in accordance with the CEQ regulations.
F. Public Involvement
Pursuant to the CEQ regulations, the FDIC will make diligent
efforts to involve the public in its NEPA compliance activities. In
addition to the public notice requirements set forth in part 303, the
FDIC will apprise the public of the availability of any environmental
impact statements it prepares and will provide opportunity for public
comment prior to the finalization of those documents.
G. Summary and Conclusion
Most of the filings made by depository institutions pursuant to
part 303 will fall within the categorical exclusions established by
this Statement of Policy. For those filings not falling within the
categorical exclusions, or involving extraordinary circumstances, the
FDIC will analyze relevant information with respect to environmental
factors and incorporate it into the FDIC's environmental assessment.
Filings that require the FDIC's preparation of an environmental impact
statement are expected to be extremely rare. When those instances
arise, the FDIC will comply with the requirements of the CEQ
regulations regarding the preparation and processing of environmental
impact statements.
H. Information Requests
Inquiries regarding specific filings and requests for documents and
information should be directed to the appropriate regional director of
the FDIC's Division of Supervision.
By order of the Board of Directors.
Dated at Washington, D.C., this 7th day of July, 1998.
Federal Deposit Insurance Corporation.
James LaPierre,
Deputy Executive Secretary.
[FR Doc. 98-18817 Filed 7-14-98; 8:45 am]
BILLING CODE 6714-01-P
