(a) In addition to the requirements of §367.5 and §367.6 of this chapter, if the funds provided by the board will be used for construction of a conservation project which will require surface or subsurface disturbance of the soil or alter the existing vegetation, the applicant shall conduct an environmental assessment in compliance with this section. The purpose of this section is to provide the executive administrator with sufficient information to inform the board whether a proposed project has been adequately reviewed by the regulatory agencies and whether such review provides a reasonable level of certainty that the project will comply with state and federal environmental regulations.
(b) Definition of terms. In this section, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Environmental regulation--The acts, statutes, or policies listed in subsection (c)(1) of this section and the acts, statutes, or policies identified by the executive administrator pursuant to subsection (c)(2) of this section.
  (2) Regulatory agency--The governmental agency with the jurisdiction to review compliance with or to enforce an environmental regulation.
  (3) Preliminary project information--The information submitted by an applicant to the executive administrator pursuant to subsection (e) of this section.
  (4) Affected environmental regulation--An environmental regulation with which a proposed project potentially may not conform as determined by the executive administrator under this section after reviewing the preliminary project information or the environmental assessment document, if any.
  (5) Unaffected environmental regulation--An environmental regulation with which a proposed project will likely conform as determined by the executive administrator under this section after reviewing the preliminary project information or the environmental assessment document, if any.
(c) Applicable environmental regulations.
  (1) Uniform requirements. Prior to commitment of funds, the proposed project shall be coordinated, to the extent appropriate under the three-level review of subsection (f) of this section, with the regulatory agencies to determine the degree of compliance with the following:
    (A) Texas Antiquities Code as administered by the Texas Historical Commission;
    (B) Federal Endangered Species Act as administered by the United States Fish and Wildlife Service;
    (C) resource protection under the Texas Parks and Wildlife Code and Chapter 57 of this title (relating to Fisheries), as administered by the Texas Parks and Wildlife Department; and
    (D) Clean Water Act, §404 and Rivers and Harbors Act, §10 as administered by the United States Department of the Army, Corps of Engineers.
  (2) Conditional requirements. Proposed projects under certain circumstances may impact other environmental acts, statutes, or policies requiring additional coordination, to the extent appropriate under subsection (f) of this section. The executive administrator may require an applicant to perform such additional coordination for the following environmental regulations:
    (A) Migratory Bird Treaty Act as administered by the United States Fish and Wildlife Service;
    (B) National Flood Insurance Act of 1968 as administered by the local floodplain protection manager;
    (C) state land easements under Texas Natural Resources Code, Chapter 51, as administered by the Texas General Land Office;
    (D) parks and recreational lands pursuant to the Texas Parks and Wildlife Code, Chapter 26;
    (E) marl, sand, gravel, shell, and mudshell permits under the Texas Parks and Wildlife Code, Chapter 86, and Chapter 57 of this title as administered by the Texas Parks and Wildlife Department; and
    (F) any other act, statute, or policies deemed applicable by the executive administrator.
(d) Filing of assessment or statement. If an agency of the state or federal government prepares or requires an environmental assessment or an environmental impact statement to be prepared for substantially the same project proposed for board financial assistance, then the applicant shall file with the executive administrator the assessment or the statement prepared or required by the state or federal government, and a copy of the state or federal agency's issued decision document or permit in lieu of the information or environmental assessment prepared in accordance with subsections (e) or (f) of this section. Nothing herein shall be construed to require an applicant to prepare an environmental assessment when the information required under this section is currently available in an environmental assessment, environmental impact statement, or other documents prepared in connection with the same project.
(e) Preliminary project information. Prior to or concurrently with the submission of an application, the applicant shall submit the following information:
  (1) a written description of the proposed project;
  (2) a map of sufficient detail to accurately depict the location of each project element; and
  (3) preliminary data on any known environmental, social, and permitting issues which may affect the alternatives considered for implementation of the project or which may impact the existing environment in a manner that is the subject of any environmental regulation.
(f) Environmental review. Based on the preliminary project information and any information readily available to the executive administrator, the executive administrator shall require the applicant to comply with the provisions of this subsection for either categorical exclusion review, mid-level review, or full review depending on the complexity of the project and its environmental impacts. Upon submission by the applicant of the information required by this subsection, the executive administrator shall summarize all relevant environmental data and any regulatory agency comments and public comments received regarding the proposed project in a memorandum. Such memorandum shall include a finding regarding the proposed project's compliance with the environmental regulations and may include a recommendation on any avoidance, minimization, or mitigation measures recommended by an regulatory agency through this review process. Such memorandum shall be submitted to and considered by the board with the application for financial assistance.
  (1) Categorical exclusion. If the executive administrator determines from the preliminary project information that the proposed project would not appear to cause significant environmental impacts under any environmental regulation, the executive administrator shall notify all regulatory agencies of the executive administrator's intent to exclude the proposed project from further environmental review. Unless an objection is received from any regulatory agency within 30 days after such notification is sent by the executive administrator, the executive administrator shall notify the applicant that the proposed project is categorically excluded from further environmental review requirements.
  (2) Mid-level review. If the executive administrator determines from the proposed project information that the proposed project would appear to cause only significant environmental impacts which are limited in number or scope or which may be readily avoided, minimized, or mitigated, the proposed project shall be excluded from further review of unaffected environmental regulations while additional information for adequate review of affected environmental regulations shall be required in accordance with the following procedures.
    (A) The executive administrator shall:
      (i) notify the regulatory agencies administering the unaffected environmental regulations of the executive administrator's intent to exclude the proposed project from further review of the unaffected environmental regulations. Unless the executive administrator receives objections to the intent to exclude the project from review by such agency within 30 days after such notification is sent, the executive administrator shall deem the proposed project as excluded from further review of such unaffected environmental regulation; and
      (ii) promptly notify the applicant of the unaffected environmental regulations which shall be excluded from further environmental review, the affected environmental regulations which shall require further environmental review, and any further information required by statute or the regulatory agencies administering the affected environmental regulations for adequate environmental review.
    (B) The applicant shall then choose between one of the two following options and promptly notify the executive administrator of the option selected:
Cont'd...