Companion Guide to Video August 2012

www.fhwa.dot.gov/federal-aidessentials

Environment

NEPA Regulatory Framework and Process

Overview of NEPA as Applied to 

Transportation Projects

The American public has long expressed a 

desire to preserve its heritage as well as to 

protect both the human and natural 

environment. While it’s the primary job of the 

Federal Highway Administration, the FHWA, to 

improve the Nation’s highways, we also make 

transportation decisions that are in the best 

public interest. We do this by balancing the need 

for safe and efficient transportation with a 

project’s potential impact to parks, recreation 

areas, historic sites, wetlands, businesses, 

neighborhoods, and other resources. In other 

words, we must look before we leap. 

The National Environmental Policy Act, known 

as NEPA, established the requirements and 

processes Federal agencies must consider 

related to the environmental effects of FHWA 

proposals and actions. For recipients of Federal 

funds, that means that before proceeding with 

final design, right-of-way acquisition, and 

construction, you must first disclose any 

environmental consequences and evaluate 

alternatives that would avoid or lessen your 

project’s impacts. Agencies that understand the 

NEPA process and use it to improve decisionmaking tend to proceed more efficiently and 

effectively with their projects. 

Let’s look at the NEPA framework and the 

resources available to you. Other laws and 

regulations, such as Section 4(f), the Clean 

Water Act, and the Endangered Species Act, for 

example, may affect your project and guide its 

decisions. NEPA is the process for achieving 

compliance with these and other requirements. 

Consideration of environmental impacts, 

alternative approaches to achieving 

transportation goals, and 

the evaluation of 

possible mitigation 

measures, such as 

constructing noise walls 

or replacement 

wetlands, is done under 

the NEPA umbrella.

Agencies are required to consider the environmental effects of 

their proposals and actions in Federal-aid project delivery
Federal-aid Essentials for Local Public Agencies

When following the NEPA process, one of the 

first steps is to determine the significance of the 

impact your project is likely to have. The 

significance of its impact, not its size or cost, 

determines the class of action and its 

requirements for documentation and public 

involvement. 

Categorical exclusions are prepared for projects 

that have no significant impact. Environmental 

assessments are prepared for projects when 

there is uncertainty about whether the proposed 

action will have a significant impact. Finally, 

environmental impact statements are required 

for projects that are expected to significantly 

affect the quality of our environment. 

It’s FHWA policy that the NEPA decision-making 

process be open and collaborative, with full 

disclosure of the steps taken along the way. 

Therefore, documentation, government agency 

coordination and public involvement are 

essential elements of NEPA.

Working with your State department of 

transportation, or State DOT, will help you 

recognize what actions you’ll need to take to 

comply with NEPA and other laws. Your State 

DOT has extensive knowledge and expertise in 

all areas of compliance. The people there can 

also help you find a qualified consultant, 

determine the significance of any environmental 

impact and prepare NEPA documentation. 

The FHWA partners with your State DOT to 

provide oversight and technical assistance, and 

to consult with other Federal agencies 

throughout the NEPA process. The FHWA is the 

final authority when determining NEPA 

compliance. Therefore, it’s essential that you 

engage your State DOT and, when appropriate, 

the FHWA early and throughout the project’s 

development process. 

Since most of your interaction on a Federallyfunded project will be with your State DOT, it’s 

advisable that you establish and maintain good 

communication with its coordinators. A list of 

State DOT coordinators is available on this Web 

site along with additional resources about the 

NEPA 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-00025 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

• FHWA guidance on the essential elements of the NEPA process

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

• FHWA Web site provides links to specific environmental topics 

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

• Summary of environmental legislation affecting transportation

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

• Federal regulations covering environmental impact and related procedures

http://www.ecfr.gov/cgi/t/text/textidx?c=ecfr&tpl=/ecfrbrowse/Title23/23cfr771_main_02.tpl

• AASHTO guidance on various aspects of the NEPA process

http://www.environment.transportation.org/center/products_programs/practitione

rs_handbooks.aspx#0

• Council on Environmental Quality provides regulations for all Federal agencies 

implementing NEPA 

http://ceq.hss.doe.gov/nepa/regs/ceq/toc_ceq.htm

• Text of National Environmental Policy Act of 1969

http://ceq.hss.doe.gov/nepa/regs/nepa/nepaeqia.htm