Companion Guide to Video August 2012

www.fhwa.dot.gov/federal-aidessentials

Environment

NEPA Regulatory Framework and Process

Categorical Exclusion

The National Environmental Policy Act, known 

as NEPA, requires the analysis of environmental 

impacts for all federally funded projects. Impact 

significance, not size or cost, dictates the class 

of action, and thereby, the NEPA process and 

requirements for documentation and public 

involvement. 

A vast majority of Federal-aid projects are found 

to have no significant impacts that allow a 

determination as a categorical exclusion, or CE. 

This means that the project does not require 

preparation of an 

environmental 

assessment or 

environmental impact 

statement. 

The Federal Highway Administration, the FHWA, 

uses past experience in designing and 

constructing transportation projects to aid in the 

CE determination. Generally, project types that 

have proven over the years to have no 

significant impact have been placed in 

categories, through FHWA regulation, on either 

a C-list or D-list. Projects that can be matched to 

either of those lists are classified as CE. Some 

State 

departments of 

transportation, 

or DOTs, have 

programmatic 

agreements 

with FHWA that 

establish procedures for additional CEs that may 

be available for use. 

Projects that are normally processed as a CE 

but are determined to have unusual 

circumstances, as defined in the regulations, will 

require further review and in some cases, an 

environmental assessment or environmental 

impact statement. 

Every project processed 

with a CE requires a 

statement of purpose and 

need along with 

documentation that the 

project meets the criteria 

of one of the CE lists. 

Your State DOT can often 

assist you to include other requirements that are 

needed to comply with NEPA.

For example, depending on your project's 

potential impacts, this may include, 

• Technical studies, 

such as for impacts 

to endangered 

species, wetlands or 

historic properties

• The coordination 

with any U.S. government agencies that 

may have an interest in your project

• Efforts to involve the public

• follow-through on commitments made to 

avoid or minimize impacts 

An overview of an agency’s responsibilities for the 95% of Federalaid projects that have no significant environmental impacts
Federal-aid Essentials for Local Public Agencies

As an example, let's consider the proposed 

construction of a bike path within the existing 

State highway right-of-way. 

The local long-range plan includes the addition 

of a network of bike paths to improve mobility 

and enhance recreation. The construction of a 

new 3-mile segment in a particular location is 

currently under consideration.

In a meeting with the State DOT, the project is 

matched to a category C-List in the regulation 

and found to have no potential for significant 

impacts or unusual circumstances. The 

documentation in the project file indicates that 

the project is clearly a CE. The activities that 

were considered, but determined not required 

for this project, included, 

• Technical studies

• Coordination with U.S. Government 

agencies

• Efforts to involve 

the public 

through 

workshops or 

hearing

Now let's look at a second project where the 

widening of the road requires additional right-ofway from a public park. 

To decrease crashes on an existing roadway, 

shoulders will be added. In a site visit with the 

State DOT, it was determined that the CE is 

likely appropriate under the D-list in the 

regulation. But because of the need for right-ofway and potential impacts to public land, the 

local public agency (LPA) is asked to:

• Conduct several studies related to the 

presence of endangered species and 

archeological sites

• Coordinate with FHWA to address resources 

and potential use of the public park

• Follow the State DOT's public involvement 

procedures for formal public input

The studies confirmed that there were no 

significant environmental impacts. The taking of 

public property, however, couldn't be avoided. 

So the LPA committed to taking a minimum 

amount of property by steepening the slope of 

the embankment and constructing a retaining 

wall. 

As you can see, when the potential for impacts 

exist, additional analysis and actions are 

required to properly assess them and then either 

avoid or minimize the impacts. 

Your State DOT has extensive knowledge and 

expertise in all areas of NEPA compliance. It 

can help you prepare the NEPA documentation 

for your project and may even have 

programmatic agreements in place to expedite 

the process. 

For CE determinations, you need to submit 

documentation to the State DOT for FHWA 

approval. The FHWA partners with the State 

DOT to make Federal-aid project decisions and 

also provides technical assistance and 

coordination with other agencies. Therefore, it's 

essential that you engage the State DOT and, 

when appropriate, the FHWA early and 

throughout your project's entire process.
Federal-aid Essentials for Local Public Agencies

The content of this 

document is not a 

substitute for 

information obtained 

from State departments 

of transportation, 

appropriate FHWA 

Division Offices, and 

applicable laws. 

Scenarios have been 

simplified for emphasis 

and do not necessarily 

reflect the actual range of 

requirements applicable 

to the scenario or this 

topic. This document

was created under 

contract number

DTFH61-11-D-00024 by 

the Federal Highway 

Administration, U.S. 

Department of 

Transportation, and is 

offered to the public to 

heighten and focus 

awareness of Federal-aid 

requirements within the 

local public agencies 

community and 

reinforces the 

importance of these 

necessary policies, 

procedures, and 

practices.

This companion resource 

is the script content for 

the video production of 

the same name. 

Additional Resources

• Link to FHWA's Office of Planning, Environment & Realty Web site

http://www.fhwa.dot.gov/environment/index.htm

• FHWA's Environmental Review Toolkit includes guidance on the 

essential elements of the NEPA process

http://environment.fhwa.dot.gov/projdev/pd3tdm.asp

• Federal regulations on categorical exclusion (class II) class of action

http://www.ecfr.gov/cgi/t/text/textidx?c=ecfr;sid=fa2fd458da42bf23b96cfaf538243294;rgn=div5;view=text;

node=23%3A1.0.1.8.43;idno=23;cc=ecfr#23:1.0.1.8.43.0.1.9