Section 14 of the Mass Transportation Act provides that the
Secretary shall review each transcript to assure that the project
application includes a detailed statement on (1) the environmental
impact of the proposed project, (2) any adverse environmental
effects which cannot be avoided should the proposal be implemented,
(3) alternatives to the proposed project, and (4) any irreversible
and irretrievable impact on the environment which may be involved
in the proposed project should it be implemented, and finds after
full and complete review of any hearing that (1) adequate oppor-
tunity was afforded for the presentation of views by all parties
with a significant economic, social, or environmental interest,
and fair consideration has been given to the preservation and
enhancement of the environment and to the interest of the community
in which the project is located, and (2) either no adverse
environmental effect is likely to result from such project, or
there exists no feasible and prudent alternative to such effect
and all reasonable steps have been taken to minimize such effect.

Section 106 of the Historic Preservation Act requires that prior to approval of Federal activities, departments shall take into account the effect of the undertaking on any district, site, building, structure, or object that is included in the National Register, and give the Advisory Council on Historic Preservation a reasonable opportunity to comment with regard to such undertaking.

APPLICABILITY.

a. The requirements in this Order (paragraph 8 below) calling for
either a negative declaration or a statement pursuant to
Section 102(2)(C) of the NEP Act apply to, but are not limited to,
the following, except as noted below: all grants, loans, contracts,
purchases, leases, construction, research and development involving
construction, rulemaking and regulatory actions, certifications,
licensing, permits, plans (both internal DOT plans and external
plans, such as the annual work programs submitted to NHTSA), formal
approvals (e.g., of non-Federal work plans), legislative proposals,
directives, program or budget proposals or actions (except for
continuation of existing programs at approximately current levels
(i.e., plus or minus 25 percent); and any renewals or reapprovals
of the foregoing. Exceptions to the foregoing are:

(1) administrative procurements (e.g., general supplies)
and contracts for personal services;

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6.

7.

b.

c.

(2)

normal personnel actions (e.g., promotions, hirings);

(3) project amendments (e.g., increases in costs) which do
not alter the environmental impact of the action;

(4) legislative proposals not originating in DOT and

relating to matters not the primary responsibility of
DOT. (Note that procedures for coordinating environ-
mental statements on legislation differ from coordination
of environmental statements on other matters. See
subparagraphs 8f and 8g below.)

In addition to the exceptions noted in subparagraphs 5a (1)-(4)
above, the implementing instructions called for by paragraph 7
below may provide for additional exceptions.

A general class of actions may be covered by a single statement when
the environmental impacts (and alternatives thereto) of all such
actions are substantially similar. This provision does not apply
to actions requiring construction or the taking of land.

DEFINITIONAL GUIDELINES. These are set forth in Attachment 1. Operating administrations may wish to set forth more explicit definitions with respect to their programs in their implementing instructions.

IMPLEMENTING INSTRUCTIONS.

a.

Within two weeks after the date of this Order, each operating
administration will submit for review to TEU draft internal
instructions or other appropriate regulations to implement this
Order, or draft revisions of existing instructions.

b. These internal instructions will incorporate the main points in this Order (or include it as an attachment), and provide for further specificity and applicability to the programs of the operating administrations, including identification of what should be considered "programs", "projects", or "actions" for purposes of 102(2)(C) statements.

c.

Following TEU concurrence in the draft internal instructions of each operating administration, the operating administrations will take any steps necessary to comply with applicable requirements of the Administrative Procedure Act (5 U.S.C., Sections 551 et. seq.) and OMB Circular No. A-85.

d. Pending finalization of the implementing instructions, the operating administrations will begin implementation of the pro

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8. PREPARATION AND PROCESSING OF SECTION 102(2)(C) STATEMENTS.

a.

Negative Declaration. Any proposal for an action to which this
Order is applicable (in accordance with paragraph 5a above) will
include either a statement as required by Section 102 (2) (C) of
the NEP Act or a declaration that the proposed action will not
have a significant impact on the environment. Negative declarations
need not be coordinated outside the originating agency.

b. Applications.

C.

d.

e.

f.

Each applicant for a grant, loan, permit or other DOT approval covered by paragraph 5 above will be required to submit, together with the original application, either a draft 102 (2) (C) statement or a negative declaration, or administrations may require applicants to submit an environmental analysis of the proposed project which would be utilized in the preparation of a draft statement or negative declaration by the administration.

Actions Originating Within DOT. In the case of proposals
originating within DOT for an action to which this Order is
applicable, the originator of the proposal will state in the
proposal whether, in his judgment, the action will or will not
require a 102 (2) (C) statement.

Lead Agency.

Where several agencies make decisions that collectively have a significant impact on the environment, the lead agency should prepare an environmental statement if it is reasonable to anticipate a cumulatively significant impact on the environment from Federal action. "Lead agency" refers to the Federal agency which has primary authority for committing the Federal Government to a course of action with significant environmental impact. Administrations should work with other Federal agencies to determine which agency should prepare the statement prior to any action by any of the other Federal agencies.

Interdisciplinary Approach. The 102 (2) (C) statement should
reflect the utilization of a "systematic, interdisciplinary approach"
as required by Section 102 (2) (A) of the NEP Act. The interdisci-
plinary approach should include appropriate disciplines to assure
that environmental impacts are described in detail in the statement.

Draft of Statement. Draft statements shall be prepared at the earliest practicable point in time. They should be prepared early enough in the process so that the analysis of the environmental

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g.

h.

i.

effects and the exploration of alternatives with respect thereto are significant inputs to the decisionmaking process. The implementing instructions (called for by paragraph 7 above) will specify the appropriate point at which draft statements should be prepared for each type of action in the administration to which this Order is applicable.

Comments of Federal Agencies. On actions requiring a 102 (2) (C) statement, except for those relating to legislative proposals, the originating operating administration (or TEU for actions originating in the Office of the Secretary) shall circulate for comment the draft environmental statement called for by subparagraph 8f above to all Federal agencies which have jurisdiction by law or special expertise with respect to the environmental impact involved, and to the CEQ and TEU, as well as other elements of DOT where appropriate. In the case of highway projects, circulation may be made by a State highway department, provided that the statement has been cleared for circulation by the Federal Highway Administration. For action within the jurisdiction of the Environmental Protection Agency (air or water quality, solid wastes, pesticides, radiation standards, noise), the proposal shall be referred to EPA for review and comment. For actions which affect any district, site, building, structure, or object that is included in the National Register, the proposal should be referred to the Advisory Council on Historic Preservation for comment through the regional office of the National Park Service and the State Liaison Officer for Historic Preservation. Attachment 2 to this Order is a list of Federal agencies not to be presumed to be all-inclusive. Implementing instructions (called for by paragraph 7 above) will set forth the procedure for obtaining such comments. A time period for comment may be specified, but not less than 30 days (45 days for referrals to the Environmental Protection Agency), plus an extension of time, if possible, when requested. Where comments of other Federal agencies have been obtained by the applicant, comments need not be solicited again from same agencies, unless there are pertinent changes in the project proposal.

Legislative Proposals. Draft environmental statements on legislative proposals will be submitted to the Office of Management and Budget (OMB) together with legislative proposals through the normal DOT legislative process, for coordination by OMB with other interested agencies.

Community Involvement. For any action requiring a public hearing, the draft statement should be made available to the public at least thirty (30) days prior to the hearing. The notice of the hearing should indicate availability of the statement. Where feasible, comments of public agencies should be made available to the public

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j. State or Local Review.

(1)

Where review of the proposed action by State and local agencies authorized to develop and enforce environmental standards is relevant, such State and local review shall be provided for as follows:

(c)

(d)

projects assisted under programs listed in Attach-
ment D of OMB (issued as BOB) Circular No. A-95, review
by State and local governments will be through
procedures set forth under Part I of Circular No. A-95,
as implemented by DOT Order 4600.4, Evaluation,
Review and Coordination of DOT Assistance Programs
and Projects.

Where an application for Federal assistance is
required to be submitted to clearinghouses pursuant
to OMB Circular No. A-95, comments on environmental
impacts received through consultations required by
subparagraphs 8g and 81 shall be submitted to and
collected by A-95 clearinghouses pursuant to
Section 4a (2) of DOT Order 4600.4, Evaluation, Review
and Coordination of DOT Assistance Programs and
Projects.

State and local review of agency procedures, regulations, and policies for the administration of Federal programs of assistance to State and local governments will be conducted pursuant to procedures established by OMB (issued as BOB) Circular No. A-85.

(e) Where these procedures are not appropriate and where
the proposed action affects matters within their
jurisdiction, review of the proposed action by State
and local agencies authorized to develop and enforce
environmental standards and their comments on the
draft environmental statement may be obtained directly
or by publication of a summary notice in the Federal
Register (with a copy of the environmental statement