What Is the National Environmental Policy Act (NEPA)?
Infrastructure and development projects often involve more than engineering, construction, and land acquisition. Depending on the project and its connection to federal agencies or funding, environmental reviews may also be required before certain activities can move forward.
The National Environmental Policy Act (NEPA), enacted in 1970, establishes a federal framework for evaluating the environmental effects of proposed federal actions and incorporating environmental considerations into federal agency decision-making.
NEPA applies to federal agencies when they undertake actions that may affect the human environment. This can include federally funded infrastructure improvements, projects requiring federal permits or approvals, and other activities involving federal agency decisions.
For project developers, understanding NEPA applicability is an important early planning consideration. Environmental reviews can influence project schedules, design decisions, documentation requirements, and coordination with regulatory agencies.
Although NEPA does not automatically apply to every infrastructure or development project, those involving federal funding, approvals, or other federal agency involvement may require some level of environmental review.
Why NEPA Matters for Infrastructure and Development Projects
NEPA reviews help federal agencies consider the potential environmental consequences of proposed actions before making decisions.
For infrastructure, energy, transportation, water, and development projects, this process can involve evaluating potential impacts to natural resources, cultural resources, water resources, surrounding communities, and other environmental considerations.
Depending on the project, the review may require coordination with multiple agencies, technical evaluations, public involvement, and supporting environmental documentation.
For developers and project owners, these requirements can introduce additional steps into the project development process.
When environmental considerations are identified early, project teams have more opportunities to evaluate alternatives, address potential impacts, and incorporate necessary documentation into their schedules.
However, when environmental constraints are discovered after engineering or project planning is substantially complete, additional studies, agency coordination, or design modifications may be necessary.
Understanding NEPA applicability and anticipated review requirements early can help reduce uncertainty and support more effective project planning.
Understanding the Different Levels of NEPA Review
The level of environmental review required under NEPA depends on the proposed federal action, applicable agency procedures, and the potential for significant environmental effects.
Common NEPA review pathways include Categorical Exclusions, Environmental Assessments, and Environmental Impact Statements.
1. Categorical Exclusions (CEs)
A Categorical Exclusion is used for categories of federal actions that an agency has determined normally do not have significant environmental effects, individually or cumulatively, and therefore generally do not require an Environmental Assessment or Environmental Impact Statement.
Although CEs involve a more streamlined review process, agencies must still consider whether extraordinary circumstances or other applicable conditions require additional environmental analysis.
For qualifying infrastructure and development activities, a Categorical Exclusion can reduce the amount of environmental documentation and review necessary.
However, eligibility depends on the specific federal action and applicable agency procedures. A project cannot simply assume that it qualifies for a Categorical Exclusion based on its size or general project type.
2. Environmental Assessments (EAs)
An Environmental Assessment is a document used by federal agencies to determine whether a proposed action may have significant environmental effects and whether an Environmental Impact Statement is necessary.
An EA evaluates relevant environmental considerations and helps the agency determine the appropriate next step in the review process.
Depending on the findings, the agency may issue a Finding of No Significant Impact (FONSI) or determine that an Environmental Impact Statement is necessary.
For project developers, an EA can involve coordination among environmental professionals, engineers, agency representatives, and other stakeholders to evaluate potential impacts and identify appropriate alternatives or mitigation measures.
3. Environmental Impact Statements (EISs)
An Environmental Impact Statement is generally required when a proposed federal action is expected to significantly affect the quality of the human environment, subject to applicable NEPA requirements.
An EIS involves a more comprehensive evaluation of potential environmental effects, reasonable alternatives, and other relevant considerations.
The process can include extensive technical studies, agency coordination, public involvement, and preparation of detailed environmental documentation.
Because of the scope of these reviews, an EIS can represent a significant component of the overall project development schedule.
Identifying potential environmental impacts early can help project teams anticipate the level of review that may be necessary and incorporate appropriate planning into the project timeline.
How NEPA Process Changes May Affect Project Planning
Federal environmental review procedures have continued to evolve, with recent changes and discussions emphasizing efficiency, review timelines, agency coordination, and the scope of environmental documentation.
For project developers, these developments make it important to understand which requirements apply to their specific projects and which federal agency is responsible for conducting the review.
Changes to NEPA implementation may affect how agencies approach environmental documentation, establish review schedules, evaluate alternatives, and coordinate with other regulatory entities.
However, a more streamlined review process does not mean that environmental considerations disappear.
Projects may still require evaluations of natural resources, cultural resources, wetlands, threatened and endangered species, and other environmental considerations under NEPA or separate applicable federal, state, and local requirements.
For example, a project receiving federal funding may still require biological evaluations or cultural resource coordination even if the applicable NEPA pathway involves a Categorical Exclusion.
Similarly, projects requiring authorization from federal agencies may have additional environmental requirements outside the NEPA process itself.
Understanding the distinction between NEPA documentation and other applicable environmental regulations is essential for effective project planning.
Environmental Considerations That Can Influence NEPA Reviews
A successful environmental review depends on having accurate information about the proposed project and its surrounding environment.
Depending on project location, scope, and potential impacts, several resource areas may require evaluation.
1. Biological Resources and Threatened and Endangered Species
Infrastructure and development projects can affect wildlife habitat, vegetation, and other biological resources.
Depending on the location and proposed activities, biological evaluations may be necessary to identify potential impacts to federally or state-listed threatened and endangered species and their habitats.
These evaluations may involve reviewing available species information, assessing habitat conditions, conducting field surveys, and coordinating with applicable agencies.
For projects with a federal nexus, additional requirements under the Endangered Species Act may apply when federally listed species or designated critical habitat could be affected.
Identifying potential biological constraints early can help project teams evaluate alternative locations, determine whether additional surveys are necessary, and incorporate appropriate avoidance or minimization measures.
2. Cultural Resources and Historic Properties
Cultural resources are another important consideration for infrastructure and development projects, particularly those involving ground disturbance.
Archaeological sites, historic structures, and other properties with historical or cultural significance may be present within proposed project areas.
For federal undertakings, Section 106 of the National Historic Preservation Act may require agencies to consider the effects of their actions on historic properties.
Depending on project circumstances, cultural resource evaluations may include background research, archaeological surveys, historic property assessments, and coordination with applicable agencies and consulting parties.
Identifying cultural resource considerations early can help project teams understand potential review requirements and avoid unexpected delays during design or construction.
3. Water Resources, Wetlands, and Waters of the United States
Proposed infrastructure projects may cross streams, wetlands, drainage features, and other aquatic resources.
Depending on the location and construction activities, these resources may be subject to federal or state regulatory requirements.
Wetlands and waters delineations help identify and map aquatic resources within a proposed project area and provide information necessary to evaluate potential impacts.
If construction activities may affect jurisdictional waters, additional permitting or coordination may be necessary, potentially involving the U.S. Army Corps of Engineers and other regulatory agencies.
These evaluations can be particularly important for linear infrastructure projects, such as pipelines, transmission lines, broadband networks, and transportation improvements, where proposed routes may cross multiple aquatic features.
4. Environmental Permitting and Regulatory Coordination
NEPA reviews do not replace other environmental permitting requirements.
Depending on the project, separate federal, state, and local authorizations may be necessary before construction or other regulated activities can proceed.
Examples may include permits associated with impacts to regulated waters, air emissions, stormwater discharges, or other regulated activities.
Coordinating these requirements alongside the NEPA review can help project teams better understand the overall regulatory process and avoid treating environmental approvals as disconnected project milestones.
Early coordination can also help identify opportunities to align technical studies, agency consultations, and supporting documentation where appropriate.
The Importance of Early Environmental Planning
Regardless of how federal environmental review procedures evolve, early environmental planning remains an important part of successful project development.
Environmental evaluations are most useful when they occur early enough to influence project decisions.
When potential resource constraints are identified during preliminary planning, project teams have more flexibility to evaluate alternative sites, routes, construction methods, and design approaches.
Waiting until engineering is substantially complete can make it more difficult and expensive to address newly identified environmental concerns.
An early environmental review can help project teams:
- Determine whether NEPA applies to the proposed project.
- Identify the appropriate federal lead agency and anticipated review pathway.
- Evaluate potential biological, cultural, and water resource constraints.
- Identify additional technical studies or surveys that may be necessary.
- Understand applicable permitting and agency coordination requirements.
- Incorporate environmental review milestones into project schedules.
- Evaluate opportunities to avoid or minimize environmental impacts.
This approach allows environmental considerations to become part of the project development strategy rather than a separate process addressed after major decisions have already been made.
How ESE Partners Supports NEPA and Environmental Reviews
ESE Partners provides multidisciplinary environmental consulting services to support infrastructure, energy, and development projects throughout Texas.
Our team helps project owners, developers, and engineering partners identify environmental considerations, evaluate potential resource constraints, and navigate applicable environmental review and permitting requirements.
Services include:
- Environmental Assessments: Supporting environmental evaluations and documentation associated with applicable federal review requirements.
- NEPA Compliance: Assisting with environmental review coordination and supporting documentation for projects involving federal agency actions or funding.
- Natural Resources Assessments: Evaluating biological resources, wildlife habitat, threatened and endangered species, wetlands, and other aquatic resources.
- Cultural Resources Assessments: Supporting archaeological investigations, historic resources evaluations, and applicable Section 106 coordination.
- Wetlands and Waters Delineations: Identifying aquatic resources and evaluating potential impacts associated with proposed development activities.
- Environmental Permitting: Supporting applicable federal, state, and local environmental authorization requirements.
- Regulatory Coordination: Helping project teams navigate agency communication, environmental review requirements, and permitting considerations.
By integrating environmental evaluations into early project planning, ESE helps clients better understand regulatory obligations, identify potential constraints, and make informed decisions as projects move through design, review, and construction.
Moving Projects Forward Through Informed Environmental Planning
Environmental review requirements will continue to play an important role in infrastructure, energy, and development projects involving federal agency actions.
As NEPA procedures and implementation continue to evolve, project developers must remain aware of applicable requirements and understand how environmental reviews fit into the broader development process.
A streamlined review process does not eliminate the need to evaluate environmental resources or address applicable permitting requirements. Instead, it reinforces the importance of having accurate environmental information available when project decisions are being made.
By identifying potential constraints early and coordinating environmental considerations with engineering and project planning, developers can better anticipate regulatory requirements, reduce uncertainty, and support successful project execution.
