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December  28, 2023


National Environmental Policy Act: An Overview


Introduction and Background
Since 1970, the National Environmental Policy Act (NEPA,
42 U.S.C. §§ 4321 et seq.) has set forth a national policy
with respect to environmental quality. For decades, NEPA
has required agencies to integrate environmental
considerations into planning and decisionmaking. Further,
NEPA's  continuing policy has been that the federal
government use all practicable means and measures to
support humans and nature coexisting and to fulfill the
social, economic, and other requirements of present and
future generations. NEPA envisions a continuing
responsibility for the federal government to, inter alia, treat
each generation as a trustee of the environment, preserve
historical and cultural heritage, and allow for pleasing
surroundings and high standards of living.

NEPA   is often described as a procedural law that mandates
environmental review of many agency actions, including by
requiring that agencies consider the environmental impacts
of certain federal actions. NEPA also established the
Council on Environmental Quality (CEQ), which issues
regulations and guidance on NEPA implementation.

To implement NEPA,  CEQ  issues broadly applicable rules
that complement agency-specific statutes and regulations.
CEQ  regulations require that an agency assess how the
NEPA  process applies to an action early in its
decisionmaking process. In most cases, the NEPA analysis
becomes part of the administrative record for the agency's
decision or action. Agencies are also encouraged to
integrate NEPA reviews with other federal reviews and
permitting decisions authorized under separate authorities.

While NEPA   prescribes the process for environmental
reviews, it does not mandate that federal agencies alter their
proposals based on those reviews. Rather, NEPA focuses on
ensuring that the agency has the information and analyses it
needs to make better informed decisions. In the words of
the Supreme Court, NEPA  merely prohibits uninformed-
rather than unwise-agency action.

Scope of Agency Review
NEPA  requires agencies, prior to finalizing certain
decisions, to identify and evaluate the impacts of major
Federal actions significantly affecting the quality of the
human  environment. For this requirement to apply, the
major federal actions must occur within the United States,
and the decisions underlying the actions must be subject to
agency discretion and a degree of control over the outcome.
The range of federal agencies and actions subject to NEPA
is broad and commonly includes activities such as issuing
permits and funding infrastructure.


Major federal actions do not include nonfederal actions
with no or minimal federal funding, federally funded
actions where the agency lacks oversight or control over the
subsequent use of the funds, or other circumstances where
the federal agency does not exercise sufficient control
over a project's outcome. An agency also does not need to
document  relevant impacts until a decision is final. While
only domestic actions are subject to the environmental
review process, NEPA also requires agencies to recognize
the global nature of environmental problems and
maximize  international cooperation to prevent
environmental decline.

For some decisions under other laws, agencies have
developed review and disclosure processes that are
functionally equivalent to the NEPA process. Courts have
held that if a statute provides for such a functional
equivalence, both procedurally and substantively, then an
agency is exempt from producing a separate NEPA
statement.

Consideration of impacts
One  step in the NEPA process is to determine whether the
proposed action is likely to have significant effects that
require an environmental impact statement (EIS). The
effects an agency must consider and analyze include social,
ecological, and health impacts as well as environmental
justice concerns. The depth of analysis and type of
documentation required by NEPA depends in large part on
the extent to which anticipated impacts are expected to be
significant.

Categorical  Exclusion
Many  agency activities may be subject to a categorical
exclusion, which refers to a type of activity undertaken by
an agency that normally does not significantly affect the
quality of the human environment. If the agency
determines that a categorical exclusion applies, NEPA does
not require an environmental assessment or EIS.

Agencies maintain their own categorical exclusions and in
some  cases may adopt another agency's exclusion. When
an agency considers applying one of these categorical
exclusions to a proposal, it also decides whether site-
specific extraordinary circumstances exist that could result
in more significant impacts than would typically be
anticipated and thus warrant further analysis and
documentation. Congress can also mandate a categorical
exclusion by statute and specify whether the agency should
consider any extraordinary circumstances. Categorical
exclusions apply to the vast majority of agency actions that
require NEPA  compliance.

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