(1) A department action on an application for loan assistance under Title 75, chapter 5, part 11, MCA, and this subchapter may receive a categorical exclusion from the requirements of 75-1-201(1) (b) (iii) , MCA, and ARM 17.4.626 through 17.4.641, if the department determines under (2) of this rule that its action on the application would not individually, collectively, or cumulatively over time require an environmental assessment (EA) or environmental impact statement (EIS) , and under (3) of this rule that its action is not precluded from a categorical exclusion.

(2) Actions consistent with any of the following categories are eligible for the categorical exclusion:

(a) actions that are solely directed toward projects involving minor rehabilitation of existing facilities, functional replacement of equipment, or construction of new ancillary facilities adjacent or appurtenant to existing facilities.  These improvements may not decrease the degree of treatment of the existing facility; and

(b) actions for projects in sewered communities of less than 10,000 persons that involve only minor upgrading or minor expansion of existing treatment works and do not change existing unit processes, and that do not directly or indirectly involve the extension of new collection systems.

(3) A categorical exclusion may not be granted if:

(a) the action would authorize facilities that will provide a new discharge or relocate an existing discharge to ground or surface waters;

(b) the action will result in an increase above permit levels established for the facility under the Montana pollutant discharge elimination system or Montana ground water pollution control system for either volume of discharge or loading rate of pollutants to receiving waters;

(c) the action would authorize facilities that would provide capacity to serve a population at least 30% greater than the existing population;

(d) the department has received information indicating that public controversy exists over the project's potential effects on the quality of the human environment; or

(e) the proposed project that is the subject of the state action shows some potential for causing a significant effect on the quality of the human environment, based on ARM 17.4.608, or might possibly affect:

(i) sensitive environmental or cultural resource areas; or

(ii) endangered or threatened species and their critical habitats.

(4) The department shall document its decision to issue a categorical exclusion by referencing the application, providing a brief description of the proposed action, and describing how the action meets the criteria for a categorical exclusion without violating criteria for not granting an exclusion.

(5) The department may revoke a categorical exclusion if:

(a) the project is not initiated within the time period specified in the facility plan, or a new or modified application is submitted;

(b) the proposed action no longer meets the requirements for a categorical exclusion because of changes in the proposed action;

(c) new evidence demonstrates that serious local or environmental issues exist; or

(d) state, local, tribal, or federal laws may be violated.