Drinking Water Revolving Fund Environmental Review Instructions

Some projects may be covered by an environmental review conducted by another agency. To streamline the process, Minnesota Department of Health (MDH) will accept another state or federal agency's environmental review, provided it covers MDH requirements for the Drinking Water Revolving Fund project(s). Send documentation showing their approval to dwrf.er.MDH@state.mn.us. No further steps are typically required.

There are two project exemption categories:

• Projects that are exempt from both environmental review and the requirement for a historic database search.
• Projects that are exempt from environmental review but require a historic database search. 

Please view Environmental Review Exemption Checklist (PDF) and Section 106 Exemption Checklist (PDF) to determine if your project falls into one of these categories.

Complete:

1. Environmental Review Record Cover Page (PDF).
2. Environmental Review Exemption Checklist (PDF).
3. Section 106 Exemption Checklist (PDF)

It is strongly recommended that an Archaeological Site and Historic Structures Database Search is completed for the project area to assure that no historic properties will be impacted by the project. This database search can be generated by visiting Minnesota's Statewide Historic Inventory Portal and OSA Portal.

Email the completed documents to dwrf.er.MDH@state.mn.us.

Complete: 

1. Environmental Review Record Cover Page (PDF)
2. Environmental Review Exemption Checklist (PDF)
3. Section 106 Exemption Checklist (PDF).
4. Conduct an initial search for any previously identified cultural resources in the project area to ensure that no historic properties will be affected by the proposed project. To research previously documented aboveground historic resources in a project area, please visit MnSHIP (Public Map). To research previously documented archaeological sites in a project area, please visit OSA Portal (Public Map). Applicants will not be able to see detailed information on the locations of archaeological resources, as the site location data is protected under state law. The public map shows the number of sites located within a section. Only qualified archaeologists can access detailed information on archaeological sites.
5. A copy of the database search must be attached to the exemption checklist. If any cultural resources are found during the database search, an explanation of why these locations will not be impacted must be provided. If there is no impact to any cultural resources, an environmental review is not required. If the project could have an impact on any identified locations, an environmental review must be completed.

Email the completed documents to dwrf.er.MDH@state.mn.us.

1) Complete the solicitation letter (Word) addressed to the State Historic Preservation Office (SHPO) and send it along with the supporting documents to dwrf.er.MDH@state.mn.us.

Once received, MDH will review the submission. After confirming the submission is complete, MDH will forward the letter to SHPO for their evaluation. Please note that the SHPO solicitation letter and all supporting documentation must be completed and submitted to MDH before the Environmental review record submission.

2) Complete the Environmental Review Cover Page (PDF).

• System name: This is the name of the community, business (e.g., a manufactured home park or rural hospital), or area (e.g., Great Plains Water District) serviced by the public water supply.
• System owner: This could be a community, joint powers board, individual, corporation, etc.
• Project name(s): Identify the project(s) covered in the environmental review. This can be done by providing the project name (e.g., new Well #4) or by description (e.g., replace water tower, install iron and manganese treatment system, replace watermain on Lincoln Ave.).
• Person completing and submitting environmental review: Provide the name and relevant details of the person conducting the environmental review. The person could be an employee, consultant, elected official, or owner and will be contacted if there are questions.
• Owner: The person signing at the bottom of the form is assuring that the environmental review is an official document from the community or entity applying for the drinking water revolving fund loan.

3) Complete the Environmental Review Exemption Checklist (PDF) and Section 106 Exemption Checklist (PDF).

4) Complete the Environmental Information Worksheet (PDF).

This worksheet has technical questions. The project engineer or a consultant may need to provide some of the answers. All the following items are linked to various sections of the Environmental Information Worksheet.

The worksheet is a slight variation of a standard Minnesota Environmental Quality Board Environmental Review Worksheet. Some categories may not apply to the project, so you may frequently write "does not apply" or provide other similar responses. The form cannot be significantly simplified because a water system project could potentially be piggybacked with other non-water system construction work. The environmental review must incorporate all construction work associated with the overall project, whether all parts directly involve the public water supply system or not.

• Needs and Alternatives
  Provide a description of the water system’s needs and potential environmental consequences. Some of this information may have been included in the proposal that was submitted to MDH for placing the project on the project priority list. That information can be used; however, it may not be sufficiently encompassing, and new information may have emerged since the proposal was submitted.
• Description
  Briefly describe the proposed project. This information may be drawn from the proposal submitted to MDH for placing the project on the project priority list. Incorporate any changes in project design and any new information that has emerged since the proposal was written. Also, describe potential long term environmental impacts from the completed project when in its operational stage.
• Project Location
  Enter the county, city/township, range, section(s) and quarter section(s) of the project area.
• Project Magnitude Data
  Use the category that best applies to your project:
  • Total Project Area (acres): Use this if the project pertains to the overall site size.
  • Length (feet or miles): Use this for linear features, such as watermains.
  • Total Square Feet: Use this for buildings or other structures.
• Permits and Approvals Required
  Identify any permits or approvals needed for the project. Provide details about the type of application and its status.
• Land Use 
  Describe current and past land use, compatibility with nearby uses, and potential environmental hazards.
• Cover Types, Important Farmland and Wetlands
  Data in cover type table may be provided in square feet if this unit is more appropriate. Soil survey information can be obtained from your local soil resource or soil survey website. Type 1 to 8 Wetlands are defined according to the U.S. Fish and Wildlife Service guidelines. The presence of wetlands in the project area can be identified using National Wetlands Inventory maps.
• Federal and State Fish, Wildlife and Ecologically Sensitive Resources
  Use IPAC search tool and determination key and DNR natural heritage review to answer the questions in this section. Attach copies of the reports generated by the system. If the reports indicate that further review is required, complete the additional review and attach a copy of that as well.
• Coastal Zone Management 
  Describe any potential impacts on the Lake Superior Coastal Boundary. If applicable, provide maps, documentation, and mitigation measures.
• Physical Impacts on Water Resources
  Describe if the project will alter any surface water.
• Water Use
  Describe if the project involves well installation or abandonment, water appropriation (ground or surface), or dewatering.
• Water Related Land Use Management Districts
  Contact your local planning and zoning office for information on zoning districts and 100-year floodplain delineations. 100-year flood plain delineation can also be found on FEMA website. The information on wild and scenic rivers is available on Minnesota Department of Natural Resources, Water Division.
• Sole Source Aquifer – Mille Lacs
  Determine if the project is within the Mille Lacs area sole source aquifer. If applicable, assess impacts on ground and drinking water and provide a map and consultation documentation from EPA Region 5.
• Erosion and Sedimentation
  Specify the acreage to be graded, the amount of soil to be moved, and the erosion control measures during and after construction.
• Water Quality – Surface Water Runoff
  Compare site runoff quantity and quality before and after the project, including management methods, stormwater pollution prevention plans, runoff routes, receiving water bodies, and impacts on water quality.
• Water Quality - Wastewaters
  Describe wastewater sources, quantities and compositions, as well as the treatment methods, and discharge impacts. For treatment plants, include backwash water and treatment residues.
• Geological Hazards and Soil Conditions
  Provide depth measurements and identify potential geological hazards, along with mitigation measures. Describe soil types, potential for groundwater contamination, and prevention strategies.
• Solid Wastes; Hazardous Wastes; Storage Tanks
  Describe waste generated during the project as well as disposal methods. Identify any past contamination or hazardous materials and mitigation measures if applicable.
• Stationary Source Air Emissions
  If the project includes stationary air emission sources, describe their type, quantity, and composition. Include details on pollution control measures, post-treatment emissions, and potential air quality impacts.
• Odor, Noise or Dust
  This category frequently applies to the construction stage.
• Cultural Resources
  Consider scenic views and vistas for elevated storage tanks.
• Compatibility with Plans
  Please note that wells will be subject to wellhead and source water protection plans.
• Impact on Infrastructure and Public Services, Related Developments; Cumulative Impacts
  Indicate if the project requires new or expanded utilities, roads, or services. Note if future stages are planned, if this is part of an earlier project, or if adjacent development is anticipated, and briefly describe as needed.
• Other Potential Environmental Impacts and Summary of Issues
  Identify any additional environmental impacts not covered in the worksheet and propose mitigation if needed. Summarize issues requiring further investigation, and briefly discuss alternatives or mitigation measures, including potential permit conditions.

5) Fill out the Solicitation (Mailing) List (PDF).

A letter soliciting comments is to be sent to key individuals and agencies with a potential interest in the project or its environmental impact. The type of project, location, and local concern will determine who should receive a letter, so the mailing list will change from project to project and community to community. Insert the names and addresses of all people and agencies who will be receiving a letter.

The solicitation list is divided into three sections. They cover:

• Basic Solicitation
  This section lists the officials and agencies that must be notified. Provide the specific names and addresses of individuals representing areas that will be affected by the project. In some cases, multiple individuals may need to be notified. For example, if a watermain extends through more than one township, municipality or legislative district, ensure the notice is sent to the appropriate mayors, clerks, or representatives of those jurisdictions. A notice does not need to be sent to an official of a community or entity that is seeking the water system project funding. Similarly, some jurisdictional categories may not apply to the project.
• Additional Agency Solicitation
  This section lists four agencies that have specific interests. Send the notice to the appropriate agencies, or if in doubt, send the notice. From a project impact point of view, the agencies' interests are:
  • Minnesota Department of Agriculture
    • crop land protection
    • soil erosion
  • U.S. Fish and Wildlife Service
    • species and habitat protection
  • U.S. Army Corps of Engineers
    • coastal zone management (Lake Superior)
    • navigable waters
    • dredging, filling, altering water quality
    • upstream from navigable waters
    • watershed and wetland protection
  • Minnesota Pollution Control Agency
    • solid waste generation
    • hazardous waste generation
    • noise
    • air quality
    • external hazards to the project
    • landfills
    • abandoned dumps and contaminated soils
• Local Solicitation
  The community or agency proposing the project should be in the best position to know which local individuals and agencies might have the most insight on the impact of a project, and which ones would have the most interest in a project. The mailing list should be developed accordingly. A short generic list of possibilities is provided to initiate the thought. Provide the names and addresses of individuals and agencies contacted.

6) Develop an Environmental Review Solicitation Letter 

An example of an Environmental Review Solicitation Letter (PDF) has been provided to assist you in this process. The letter must provide sufficient information to allow the recipient to assess the potential environmental impacts. You are encouraged to use whatever format and style you prefer. Use letterhead for the community or entity that will be applying for the loan. 

The letter must:

• State that the notice is soliciting environmental review comments.
• State the name or type of the project.
• Provide a brief project description.
• Provide a map, showing project location(s).
• Provide the address or email address for submitting comments.
• Specify the deadline for receiving comments (minimum: 30 days from the date the letter is sent).

Additional information can be included in the letter. For example:

• The name of the individual who will be receiving comments.
• The name, address or phone number of the individual who can provide more information.
• The purpose of doing the project.
• A statemen that Drinking water revolving fund loan is being sought.
• The amount of money to be borrowed or spent on project.
• A note that the environmental review must comply with 1969 National Environmental Policy Act.
• Information about the availability of the completed “Environmental Information Worksheet” and where it can be accessed.

7) Develop an Initial Public Notice

An environmental review public notice must be published in the local newspaper. This is to alert people who are not being notified by direct letter, but still be affected by the project (See samples of Initial Public Notice).

The published notice must address the same points that are covered in the solicitation letter. The style and detail for the published notice and the letter may be different because the published notice will be read by local residents while the letter will go to agency personnel unfamiliar with the community. For this reason, a map showing project location must be included in the letter. A published notice may or may not contain a map, depending on project location and complexity. Alternatively, a legal description can be provided in the notice.

8) Publish the Public Notice

The initial public notice must appear at least once and be in the primary newspaper for the project area. Some communities have their own requirements to publish official notices in the community's legal/business newspaper which would be acceptable. Allow 30 calendar days for written comments to be submitted to the community or entity responsible for the project. The time period starts from the publication date or from the first day of a multiple day publication. Obtain an Affidavit of Publication from the publisher. A copy of the published notice and an Affidavit of Publication must be included in the environmental review record which will eventually be submitted to MDH.

It is unlikely but possible that no appropriate local newspaper is available. If this occurs, email MDH environmental review engineer at dwrf.er.MDH@state.mn.us to determine an alternative notification process. Posting the notice in the post office and city or township hall may be sufficient. Additionally, for projects in a manufactured home park, the owner may distribute notices to each home or post them in a central community location. 

9) Mail the Solicitation Letter 

This is self-explanatory. It should go out at the same time the initial public notice is published in the newspaper. Allow 30 calendar days for comments to be submitted.

10) Optional: Hold a public hearing or meeting

Municipalities typically hold public hearings for public works projects. This is entirely optional from an environmental review standpoint, but if a hearing takes place then the hearing or meeting will also serve as an additional forum for receiving environmental review comments. The comments received through this process will generally be verbal and not written. The minutes from these hearings or at least the environmental review-related comments must be included in the environmental review record that will be submitted to MDH.

11) Respond to issues

All comments, whether submitted in writing or verbally during a hearing, must receive an appropriate response from the community or entity responsible for the project. The response is to be documented and included in the environmental review record. A documented response is not required if a comment essentially states there is no anticipated environmental impact. Appropriate responses may include thanking a writer for their comments, explaining the reasoning for a project decision, explaining the alternatives to a course of action, or explaining how a proposal was modified in response to the comment. A project may be put on hold until environmental review issues are resolved, and this must be documented.

12) Submit the Environmental Review Record to MDH

Send the environmental review record to the environmental review engineer at dwrf.er.MDH@state.mn.us. The required documents for the environmental review record are listed in item 11 of the Environmental Review Checklist (PDF). 

13) Publish MDH Finding

MDH will review the record, develop a summary, and reach an environmental conclusion. In most cases, the conclusion will indicate there is no significant impact. When this occurs two documents will be sent to the environmental review contact person; A notice letter, and an environmental summary. Both must be published together in the same newspaper where the initial notice was published. The public will have 15 days from the date of publication to submit written comments or concerns to MDH. A Sample Final Public Notice (PDF) and Affidavit of Publication (PDF) has been provided for your reference.

14) Provide a Copy of Final Publication

After publication, email an affidavit of publication to the environmental review engineer at dwrf.er.MDH@state.mn.us. The affidavit can be obtained from the publisher. MDH must receive the affidavit to certify the project. You will be contacted if comments are received within the 15-day period. If no contact is made, the environmental review is considered complete.