Companion Guide to Video August 2012

www.fhwa.dot.gov/federal-aidessentials

Environment

NEPA Regulatory Framework and Process

Environmental Assessment

The National Environmental Policy Act, known 

as NEPA, requires that the significance of a 

project‘s environmental impact be evaluated for 

all federally funded projects. The significance of 

the project’s impact, not its size or cost, 

determines the necessary class of action as well 

as its process and documentation requirements. 

An environmental assessment, called an EA, is 

required when the significance of the 

environmental impacts are uncertain. The 

purpose of this process is to clarify any 

uncertainty and document the finding. If no 

significant impacts are found, the process is 

concluded with a finding of no significant impact, 

referred to as a FONSI. But if there are 

significant impacts, an environmental impact 

statement, or EIS, is then completed. 

To get a better sense of what’s involved in an 

environmental assessment, let’s follow a 

Federal-aid project designed to upgrade a 

scenic roadway. 

Currently, the town of Canyon can only be 

accessed by way of a two-lane road. Crash 

rates on that road are already high, and they are 

projected to worsen as the town continues to 

grow. The proposal is to widen the road to four 

lanes. Other options were evaluated but found 

not to solve the traffic and safety problems. 

The project’s purpose and need statement, 

along with the determination of alternatives, 

describe why the proposed project should be 

implemented. 

The meandering nature of the road through the 

scenic canyon is the pride of area residents, and 

the county is committed to maintaining the 

area’s natural feel. However, the road runs 

parallel to a stream that is the prime habitat of 

an endangered species of trout. Additionally, 

there are known petroglyphs in the area that 

can’t be disturbed. 

The project’s manager does not anticipate any 

impact to these sensitive areas but, in 

consultation with the State department of 

transportation, or DOT, he wants confirmation 

and decides to conduct an EA. Had there been

An overview of an agency’s responsibilities when the significance 

of a Federal-aid project’s environmental impacts is uncertain
Federal-aid Essentials for Local Public Agencies

a significant impact, he would have initiated an 

environmental impact statement. 

In an initial project meeting, it was decided to 

conduct a biological assessment and 

archeological study of the area. 

The resulting biological assessment highlights a 

potential negative impact to the fish habitat and 

recommends both a retaining wall and other 

design features that will help avoid 

encroachment on the stream and mitigate any 

potential adverse impact. 

The final archeological study maps the 

petroglyphs and confirms that the project will not 

jeopardize them. In consultation with the 

appropriate Indian Nations, the report outlines 

an 

opportunity to protect the petroglyphs and 

develop an interpretive display for the tribe’s 

cultural awareness center. 

As we have just seen, the nature and rigor of the 

environmental analysis depend on your project’s 

potential for environmental impacts. These 

efforts can also serve to preserve and enhance 

our environment. 

The project’s team coordinates a review of the 

biological assessment by the U.S. Fish and 

Wildlife Service. It concur that the project is not 

likely to adversely affect the endangered fish as 

long as the proposed mitigation plan is 

implemented. 

At several public workshops, the team shares 

the project’s purpose, need, alternatives and 

mitigation plan. Through this process, it is 

determined that the public is very supportive of 

the project. 

Analyses, Federal agency coordination, public 

involvement, and follow-through on 

commitments are essential elements of this and 

other environmental assessments. These efforts 

guide the decision-making and the commitments 

you'll make on a Federal-aid project. 

The Federal Highway Administration, or FHWA, 

decides whether the environmental assessment 

concludes in a FONSI or in a need to develop an 

environmental impact statement. 

In our case, FHWA prepares a FONSI that 

includes all the mitigation commitments, and the 

project’s team finalizes the design, complete 

with commitments to avoid or minimize impact to 

the stream and to develop a cultural center 

display. 

Your State DOT has considerable knowledge 

and expertise in all areas of NEPA compliance. 

It’s essential that you engage the State DOT 

and, when appropriate, FHWA early and 

throughout your project’s entire environmental 

assessment preparation.
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

• Guidance on NEPA and project development, including updated environmental 

policy, guidance, best practices and training

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

• FHWA’s Office of Planning, Environment & Realty Web site links to topics for 

human and natural environmental impacts

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

• Federal regulation defining environmental assessment class of action

http://www.ecfr.gov/cgi/t/text/textidx?c=ecfr;sid=cd57244fb59738ef1e8c59072252dc3a;rgn=div5;view=text;node=

23%3A1.0.1.8.43;idno=23;cc=ecfr#23:1.0.1.8.43.0.1.10