(1) Federal law requires that Washington state follow a SERP for projects receiving DWSRF loans. The purpose of the SERP is to identify any significant impact to the environment that may be caused by a DWSRF project. This review must be done in compliance with NEPA or SEPA and any other applicable environmental laws and regulations.

(2) The department is designated as the lead agency for SERP. The department shall provide basic guidance to the borrower to meet the requirements of SERP. Details about SERP shall be included in the application package.