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FEBRUARY 2, 2017

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CATEGORICAL EXCLUSION TO: ALL POTENTIALLY INTERESTED PARTIES: RE: City of Granbury (DWSRF Project No. 62733) - Water Distribution System Improvements Project (Selected Project Elements Only) Consistent with the state environmental review process adopted by the Texas Water Development Board (TWDB) for projects funded through the Drinking Water State Revolving Fund (DWSRF) Program, specifically 31 Texas Administrative Code (TAC) Chapter 371, Subchapter E, and with the terms and conditions of the National Environmental Policy Act, 42 U.S. Code § 4321, et seq., the Executive Administrator of the TWDB has determined that the proposed action (the specific project elements identified below) may be exempted from further pre-design environmental review requirements: City of Granbury, Hood County, Texas Water Distribution System Improvements Project (Selected Project Elements Only) DWSRF, TWDB Project Number 62733 Total TWDB Commitment: $15,000,000 (L1000610) The City plans to improve distribution of its treated surface water by installing new infrastructure: 1) 4,000 feet of 20-inch diameter water line leaving the treatment facility; 2) 20,000 feet of 12- to 16-inch diameter water lines; 3) 4,500 feet of 8-inch diameter water line; 4) two booster-pump stations; and 5) a 250,000-gallon elevated storage tank. At present, the City is seeking an additional $15,000,000 DWSRF loan with a twenty-year term from the TWDB for planning, acquisition, design, and construction of the distribution system improvements. The TWDB staff reviewed the potential environmental impact of the proposed improvements and determined that some of these project elements will require full assessment, whereas others are eligible for Categorical Exclusion (CE) from further predesign environmental review. Those elements that appear to qualify for CE include: 1) Transmission pipelines at the City's existing water treatment plant; 2) Section I Scout Camp Transmission Pipeline; 3) Section II, Phase B Scout Camp Transmission Pipeline; 4) Scout Camp Pump Station; 5) 20-inch Water Pipeline segment expected to be attached to Highway 377 bridge over Lake Granbury and installed east of the bridge; 6) Knox Tank Water Pipeline; and 7) Valve improvements at North Elevated Tank Site, Highway 377, and Meander Pump Station, and associated 8- to 12-inch diameter pipelines. Other project elements are also included in this CE because the City agreed to implement mitigative measures related to conditional vegetation clearing to avoid adverse effects on species protected under the Migratory Bird Treaty Act. The areas where conditional vegetation clearing may occur are: 1) Southwestern end of the New Hospital Water Pipeline; 2) Section II, Phase A Scout Camp Transmission Pipeline; 3) Section III Scout Camp Transmission Pipeline; and 4) Center section of the New Lakewood Hills Tie-in. The TWDB staff has concluded that construction of the specified project elements and clearing of vegetation in selected areas should not entail significant adverse impact. The Executive Administrator of the TWDB has issued a CE. The complete CE is available at the following link: http://www.twdb.texas.gov/financial/reports/environmental_findings/doc/TWDB_EF_62733.pdf Comments regarding this determination may be submitted to the Director of Regional Water Project Development, Texas Water Development Board, P.O. Box 13231, Austin, Texas 78711-3231.

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