This chapter specifies the procedures for the review of projects funded through the Maryland Water Quality Financing Administration for impacts on the human and natural environment. The regulations establish the Department's policy and procedures for identifying and analyzing environmental impacts of proposed projects. In this chapter, the following terms have the meanings indicated. Terms Defined. “Applicant” means a local government as defined in Environment Article, §9-1601, Annotated Code of Maryland, or other person that desires to construct a project, and that has applied for a loan pursuant to Environment Article, Title 9, Subtitle 16, Annotated Code of Maryland. “Categorical exclusion” is a determination by the Department of categories of projects that do not have a significant effect on the environment. “Department” means the Maryland Department of the Environment. “EID” means an environmental information document. “EIS” means an environmental impact statement. “FNSI” means a finding of no significant impact. “Loan agreement” means a written agreement between the Maryland Water Quality Financing Administration and an applicant with respect to a loan. “Project” means a project for the construction of a facility, as defined under Environment Article, §9-1601, Annotated Code of Maryland, which is financed, in whole or in part, by the Maryland Water Quality Financing Administration. This chapter applies to all projects financed, in whole or in part, by the Maryland Water Quality Financing Administration as required by federal law. General. EIDs and environmental assessments or EISs are not required for excluded categories of projects. Categories of Projects Eligible for Exclusion. The following categories of projects are eligible for exclusion: Minor rehabilitation of existing facilities; Functional replacement of equipment or structures, or both; New ancillary facilities that do not increase the capacity of the existing facility; Infiltration and inflow corrections; Construction of water distribution or wastewater collection systems, or both, for existing communities; Refinancing of projects previously constructed; or Projects where funding is being provided for planning. Determination. The Department shall determine whether a project is eligible for a categorical exclusion as early as possible following the receipt from an applicant of a preloan application containing a project description. Before the Department makes a final decision to grant an exclusion, the Department will publish a notice of eligibility for categorical exclusion in a prominent advertisement in at least one newspaper of general circulation in the area concerned. The public notice shall: Reference the preloan application; Include a brief description of the proposed project; and Include a brief statement of how the project meets the criteria for a categorical exclusion. The Department shall submit the notice of eligibility for categorical exclusion to those lead State and federal agencies responsible for the federal laws itemized in Appendix F of the Initial Guidance for State Revolving Funds (January 28, 1988). The Department shall allow a 20-day comment period, following public notice, before issuing its final decision on the categorical exclusion. The Department's final decision will be issued to the applicant. Revocation. The Department shall revoke a categorical exclusion and shall require an environmental review if, subsequent to the granting of an exclusion, the Department determines that: The proposed project no longer meets the requirements for a categorical exclusion due to changes in the proposed project; New evidence indicates that the project may seriously impact the environment; or Federal, State, or local environmental laws are being or may be violated. An EID consists of a written analysis prepared by an applicant describing the environmental impacts of a proposed project. An applicant shall prepare an EID on a form supplied by the Department as part of the application for the loan agreement. The EID shall be prepared as early in the application process as possible so that the Department can conduct its environmental review as early as possible. The EID shall be of sufficient scope to enable the Department to identify and evaluate related environmental impacts of a proposed project. An EID does not have to be prepared for projects when a categorical exclusion is granted. An environmental review consists of a study of a project to identify and evaluate the related environmental impacts. The process shall include a review of the EID to determine whether any significant impacts are anticipated and whether any changes can be made in the project to eliminate or mitigate significant adverse impacts. The Department has overall responsibility for this review, although applicants will contribute to the review through submission of EIDs. The Department may determine to partition or divide its environmental review of a large project intended to be built in several phases. At the conclusion of the environmental review, the Department shall prepare an environmental assessment which is a concise summary of the review. Determination. If the Department determines, at the conclusion of the environmental review, that no significant environmental impacts are anticipated, or when the project design and scope is altered or other measures are taken to eliminate or mitigate any significant environmental impacts, the Department shall issue a proposed FNSI to the applicant. The environmental assessment prepared by the Department shall be included as part of the proposed FNSI. Public Inspection of Documents. After the Department issues the proposed FNSI, the Department will make available for public inspection in at least one location in the region in which the project is located, a copy of the proposed FNSI, the EID, the environmental assessment, the loan application, and a copy or summary of other materials considered by the Department. Written Comments and Request for Hearing. Within 10 days after the Department issues the proposed FNSI, the Department will publish a prominent advertisement in at least one newspaper of general circulation in the area concerned. The advertisement shall include: A summary of the proposed project; The place where the materials required by §B of this regulation are available for public inspection; A statement that the public has 20 days after the advertisement publication date to submit written comments; and The address to which the comments may be sent. Notification to State and Federal Agencies. The Department shall submit the FNSI to those lead State and federal agencies responsible for the federal laws itemized in Appendix F of the Initial Guidance for State Revolving Funds (January 28, 1988). Determination of Need for Public Hearing. The Department may schedule a public hearing, to be held jointly by the Department and the applicant, before issuing a FNSI if the: Department determines the environmental impact of the project is of broad, general interest; or Project generated substantial public interest as indicated by written comments concerning the environmental impact. Notwithstanding the factors in §E(1), of this regulation the Department may determine that previous opportunities for public participation have been adequate to allow the Department to determine whether a final FNSI should be issued. Notification of Public Hearing. If the Department schedules a joint public hearing on the proposed FNSI, the Department will notify the public of the scheduled public hearing by placing a prominent advertisement in at least one newspaper of general circulation in the region affected. The notice shall: Give the date, time, location, and subject of the hearing; and Be published at least 20 days before the scheduled hearing. The Department will respond to comments on the proposed FNSI before issuing the final FNSI. Issuance of Final FNSI. If no information is presented that would affect the issuance of the final FNSI, the Department will issue the final FNSI to the applicant. Criteria for Initiating Environmental Impact Statements. If the Department determines, after the environmental review, that significant environmental impacts may occur and cannot adequately be mitigated or that any of the conditions set forth in 40 CFR §6.108(a)—(g) and 6.509 exist, the applicant shall prepare a draft EIS and shall submit it to the Department for preliminary approval. Content of Environmental Impact Statements. Preparers of EIS's shall conform with the requirements of 40 CFR §§6.201 — 6.205 in intent and scope. The Department may specify any additional issues it requires to be addressed in the EIS. After the Department grants preliminary approval of the draft EIS, the Department shall assure the review of the draft EIS by State and federal agencies through the State Clearinghouse, and shall allow these agencies a 20-day comment period. Public Inspection of Documents. Within 10 days after the Department grants preliminary approval of a draft EIS, the Department will make available for public inspection in at least one location in the region in which the project is located, a copy of the draft EIS, the EID, the environmental assessment, the loan application, and a copy or summary of other materials considered by the Department. Written Comments and Request for Hearing. Within 10 days after preliminary approval of the draft EIS, the applicant shall publish a prominent advertisement in at least one newspaper of general circulation in the area concerned. The advertisement shall be made at the applicant's expense and in a format stipulated by the Department and shall include: A summary of the nature and location of the proposed project; The place where the materials required by §D, of this regulation, are available for public inspection; A statement that the public has 10 days after the advertisement publication date to submit a written request for a public hearing, to be held jointly by the Department and the applicant, on the draft EIS; A statement that the public has 20 days after the advertisement publication date to submit written comments; and The address to which the comments or request for a public hearing may be sent. The applicant shall file a copy of the public notice and a certification of publication with the Department. The Department may schedule a joint public hearing on the draft EIS if the: Department determines the environmental impact of the project is of broad, general interest; or Project generated substantial public interest as indicated by written comments concerning the environmental impact. Notification of Public Hearing. If the Department schedules a joint public hearing on the draft EIS, the applicant shall notify the public of the scheduled public hearing by placing a prominent advertisement in at least one newspaper of general circulation in the region affected. The notice shall: Be at the applicant's expense; Give the date, time, location, and subject of the hearing; and Be published at least 20 days before the scheduled hearing. Upon request by the Department, the applicant shall have 10 working days to respond to any comments on the draft EIS. Proposed Final EIS. Not sooner than 5 working days after concluding any public hearing held under the provisions of this regulation, and if no information is presented that would affect the issuance of a proposed final EIS, the Department, in writing, will authorize the applicant to prepare a proposed final EIS. Review of Proposed Final EIS. The Department will make the proposed final EIS available to the public by distribution to a mailing list consisting of persons who submitted comments to or attended any public hearing on the draft EIS, and to public libraries in the area concerned. Final EIS. After a 15-day comment period, the Department will determine to proceed or not to proceed with the project and will issue its record of decision in the final EIS. Mitigation Measures. In the final EIS, the Department shall list any mitigation measures necessary to make the project environmentally acceptable. Mitigation measures shall be included in the loan agreement and may be included in the construction permit or NPDES discharge permit. Cost of EIS. The cost to the applicant of preparing the EIS is eligible to be financed with loans made by the Administration. If 5 or more years has lapsed since a previously determined categorical exclusion, FNSI, or EIS, the Department may determine to reaffirm or modify the decision contained in a previously issued categorical exclusion, FNSI, or EIS, following the Department's environmental reevaluation of the proposed project. The Department's decision to reaffirm a categorical exclusion, FNSI, or EIS more than 5 years old shall follow the public review procedures described in Regulations .04, .08, or .09, respectively, of this chapter. Environment Article, §§9-204 and 9-1604, Annotated Code of Maryland Effective date: September 18, 1989 (16:18 Md. R. 2025) Regulation .01B amended effective May 5, 1997 (24:9 Md. R. 658) Regulation .02B amended effective May 5, 1997 (24:9 Md. R. 658) Regulation .04B amended effective May 5, 1997 (24:9 Md. R. 658) Regulation .08C, D amended effective May 5, 1997 (24:9 Md. R. 658)