Opinion ID: 194766
Heading Depth: 6
Heading Rank: 2

Heading: all agencies of the Federal

Text: Government shall . . . . (C) include in every recommendation or report on proposals for legislation and other major Federal actions significantly affecting the quality of the human environment, a detailed statement by the responsible official on (i) the environmental impact of the proposed action, (ii) any adverse environmental effects which cannot be avoided should the proposal be implemented, (iii) alternatives to the proposed action, (iv) the relationship between local short-term uses of man's environment and the maintenance and enhancement of long- term productivity, and (v) any irreversible and irretrievable commitments of resources which would be involved in the proposed action should it be implemented. 42 U.S.C. 4332(2)(C). Agencies were authorized, under guidelines promulgated by the Council on Environmental Quality (CEQ), to create categorical exclusions for actions which do not individually or cumulatively have a significant effect on the human environment. 40 C.F.R. 1507.3, 1508.4. FERC adopted such a category of exclusions, -54- including one for merger approvals such as the one at issue in this case. That regulation states in pertinent part: (a) General rule. Except as stated in paragraph (b) of this section, neither an environmental assessment nor an environmental impact statement will be prepared for the following projects or actions: . . . . (16) Approval of actions under sections 4(b), 203, 204, 301, 304, and 305 of the Federal Power Act relating to issuance and purchase of securities, acquisition or disposition of property, merger, interlocking directorates, jurisdictional determinations and accounting orders. 18 C.F.R. 380.4(a)(16). An agency need not issue a finding of no significant impact in cases concerning matters that fall into a categorical exclusion. 40 C.F.R. 1501.3, 1501.4, 1508.13. CEQ guidelines also required agencies adopting categorical exclusions to provide for extraordinary circumstances in which a normally excluded action may have a significant environmental effect. 40 C.F.R. 1508.4. FERC made such provision in its regulations: