(3) Final environmental statements for projects and programs included in the budget shall be transmitted to the Congress by the Assistant Secretary-Management and Budget and to CEQ by the Assistant Secretary-Program Policy following the President's budget transmittal to the Congress and prior to any Congressional hearings.

F. Processing of Environmental Statements

(1) Bureaus and offices should consult with and solicit inputs and informal comments from appropriate bureaus and offices; other Federal agencies; and other specific individuals, organizations, and governmental entities with special expertise regarding the environmental impact of the proposed action. The bureau or office may circulate a description of the proposed action at this stage in order to solicit such inputs. These inputs and comments received and sent are intended to provide technical assistance in the preparation of a draft environmental statement and shall be considered informal.

(2) Where appropriate, environmental information may be required of applicants for grants, contracts, loans, leases, licenses, or permits. This material may be circulated for comment pursuant to (1) above as long as it is properly identified. It shall not be circulated as a draft statement; however, it may be circulated as an attachment to a draft statement.

(3) Draft statements may be circulated at any level subject to the following:

(a) Fifteen (15) copies shall be transmitted through the appropriate Assistant Secretary to the Assistant Secretary-Program Policy.

(b) The Assistant Secretary-Program Policy shall clear the statement, assign it a control number, stamp the date on it, and transmit ten (10) copies to CEQ.

(c) A notice of availability shall accompany the statement to the Assistant Secretary-Program Policy, who in turn will send it to the Federal Register at the same time that he transmits the statement to CEQ, except for statements on legislation and budget estimates.

(d) Upon notification of the actions in (b) and (c) above, the bureau or office shall make formal distribution to reviewing entities. The circulation to other Federal agencies will be through the offices designated in Appendix III of the CEQ Guidelines [Appendix A].

(e) The Assistant Secretary-Program Policy shall immediately provide one (1) copy to the Director of Communications at the same time of the transmittal to CEQ, except for statements on legislation and budget estimates. The Director of Communications shall make any necessary arrangements for additional copies with the appropriate bureau or office.

(4) A complete and accurate log shall be kept of all comments received on draft environmental statements and all review comments on draft environmental statements shall be available to the public upon request.

(5) Final environmental statements may be distributed at any level subject to the following:

(a) Fifteen (15) copies shall be transmitted through the appropriate Assistant Secretary to the Assistant Secretary-Program Policy.

(b) The Assistant Secretary-Program Policy shall endorse the statement, assign it a control number, stamp the date on it. and transmit ten (10) copies to CEQ.

(c) A notice of availability shall accompany the statement to the Assistant Secretary-Program Policy, who in turn will send it to the Federal Register at the same time that he transmits the statement to CEQ.

(d) Upon notification of the actions in (b) and (c) above. the bureau or office shall distribute the statement to all bureaus, offices, agencies, and organizations from whom comments were received.

(e) The Assistant Secretary--Program Policy shall immediately provide one (1) copy to the Director of Communications at the same time of the transmittal to CEQ. The Director of Communications shall make any necessary arangements for additional copies with the appropriate bureau or office.

10. Implementing Instructions

This chapter is effective upon release with the following exceptions: A. Bureau and Office Procedures.-The procedures provided for in Section 2.4.F (4) shall be submitted no later than thirty (30) days following the release of this chapter to the Assistant Secretary-Program Policy for approval in accordance with Section 2.4.A (5).

B. Content of Environmental Statements.--The body of environmental statements provided for in section 2.6.C shall contain the prescribed material: however, the body of statements under preparation on the date of this release will not have to conform to the prescribed format if the draft or final statements are forwarded by the head of the appropriate bureau or office to the Assistant Secretary-Program Policy within sixty (60) days or ninety (90) days respectively, of the date of the release of this chapter.

Question 15. What, if any, procedures are prescribed by law, or b stituted by regulation or administrative practice, for considering state and local views and interests, and the relation to privately, stute or municipally owned resources of the same type, in Interior Depart ment decisions regarding leases, sales, permits, or the opening or closing of lands to development of each energy resource?

Answer 15. Under the BLM Bureau Planning Syster, which was adopted in June 1969. various land use decisions, including questions of making lands available to development for energy resources, au being subjected to comprehensive planning procedures. These pr cedures include full public participation and close contact with Statand local governments. It will take some time for all decision-making to be made subject to the discipline of the planning system.

Questions of withdrawals or reservations of lands are also mad subject to public. State, an 1 local government review rrder the pre cedures of 43 CFR Part 2300.

The Inter-Governmental Cooperation Act of 1968 requires coordination with State and local governments.

Section 102 (2) (C) of NEPA provides that "Copies of such statements and the comments and views of the appropriate Federal, State and local agencies, which are authorized to develop and enforce environmental standards, shall be made available to the President, the Council on Environmental Quality, and the public as provided by Section 552 of title 5, United States Codes, and shall accompany the proposal through the existing agency review process."

The consideration of State and local views is discussed several times in the CEQ Guidelines. (Copy attached.) In Section : 2 (Policy); 3 (Agency and OMB procedures) (a) and (d); 6 (Content of EIS) (a) (vii); 9 (State and local review); 10 (Use of EIS in agency review processes) (a), (b), and (g), the Interior Department is to: consult with; take account of the comments of; obtain views of; discuss problemse and objection of; invite review by; obtain views at earliest possible time of; supply comments from State and local agencies with EIS text; and arrange availability of EIS to, State and local agencies whenever an action that requires an EIS is proposed.

The Department of the Interior has administrative practices, which are included in their Departmental manual (516 DM 2-attached to question #14) for obtaining the views and comments of State and local agencies. The sections in the manual that discuss State and local review are: .4 .A(1) and .G(4) and (8), .6 .D(1), .F, .9 .A (3) and B(1). These sections discuss the transmittal and review of the EIS by State and local agencies. These sections also establish length of time for review and manner of disposition of comments received. OCS

It is Departmental policy that before the initiation of any serious leasing consideration in new undeveloped areas of the OCS, close coordination efforts are undertaken with the involved States.

APPENDIX A. 516, DM-2

[Vol. 36, No. 79; Friday, Apr. 23, 1971; Washington, D.C.]

FEDERAL REGISTER

COUNCIL ON ENVIRONMENTAL QUALITY

STATEMENTS ON PROPOSED FEDERAL ACTIONS AFFECTING THE
ENVIRONMENT GUIDELINES

1. Purpose. This memorandum provides guidelines to Federal departments, agencies, and establishments for preparing detailed environmental statements on proposals for legislation and other major Federal actions significantly affecting the quality of the human environment as required by section 102 (2) (C) of the National Environmental Policy Act (Public Law 91-190) (hereafter "the Act"). Underlying the preparation of such environmental statements is the manate of both the Act and Executive Order 11514 (35 F.R. 4247) of March 4. 1970, that all Federal agencies, to the fullest extent possible, direct their policies, plans and programs so as to meet national environmental goals. The objective of section 102 (2) (C) of the Act and of these guidelines is to build into the agency decision making process an ap propriate and careful consideration of the environmental aspects of proposed action and to assist agencies in implementing not only the letter, but the spirit, of the Act. This memorandum also provides guidance on implementation of section 309 of the Clean Air Act, as amended (42 U.S.C. 1857 et seq.)

2. Policy. As early as possible and in all cases prior to agency decision concerning major action or recommendation or a favorable report on legislation that significantly affects the environment, Federal agencies will, in consultation with other appropriate Federal, State, and local agencies, assess in detail the potential environmental impact in order that adverse effects are avoided, and environmental quality is restored or enhanced, to the fullest extent practicable. In particular, alternative actions that will minimize adverse impact should be explored and both the long- and short-range implications to man, his physical and social surroundings, and to nature, should be evaluated in order to avoid to the fullest extent practicable undesirable consequences for the environment.

3. Agency and OMB procedures. (a) Pursuant to section 2(f) of Executive Order 11514, the heads of Federal agencies have been directed to proceed with measures required by section 102 (2) (C) of the Act. Consequently, each agency will establish, in consultation with the Council on Environmental Quality, not later than June 1, 1970 (and by July 1, 1971, with respect to requirements imposed by revisions in these guidelines, which will apply to draft environmental statements (148)

circulated after June 30, 1971), its own formal procedures for (1) identifying those agency actions requiring environmental statements, the apropriate time prior to decision for the consultations required by section 102(2) (C), and the agency review process for which environmental statements are to be available, (2) obtaining information required in their preparation. (3) designating the officials who are to be responsible for the statements, (4) consulting with and taking account of the comments of appropriate Federal, State, and local agencies, including obtaining the comment of the Administrator of the Environmental Protection Agency, whether or not an environmental statement. is prepared, when required under section 309 of the Clean Air Act, as amended, and section 8 of these guidelines, and (5) meeting the requirements of section 2(b) of Executive Order 11514 for providing timely public information on Federal plans and programs with environmental impact including procedures responsive to section 10 of these guidelines. These procedures should be consonant with the guidelines contained herein. Each agency should file seven (7) copies of all such procedures with the Council on Environmental Quality, which will provide advice to agencies in the preparation of their procedures and guidance on the application and interpretation of the Council's guidelines. The Environmental Protection Agency will assist in resolving any question relating to section 309 of the Clean Air Act, as amended.

(b) Each Federal agency should consult, with the assistance of the Council on Environmental Quality and the Office of Management and Budget if desired, with other appropriate Federal agencies in the development of the above procedures so as to achieve consistency in dealing with similar activities and to assure effective coordination among agencies in their review of proposed activities.

(c) 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 the Office of Management and Budget Circular No. A-85. For agency procedures subject to OMB Circular No. A-85 a 30-day extension in the July 1, 1971, deadline set in section 3(a) is granted.

(d) It is imperative that existing mechanisms for obtaining the views of Federal, State, and local agencies on proposed Federal actions be utilized to the extent practicable in dealing with environmental matters. The Office of Management and Budget will issue instructions, as necessary, to take full advantage of existing mechanisms (relating to procedures for handling legislation, preparation of budgetary materials, new procedures, water resource and other projects, etc.).

4. Federal agencies included. Section 102(2)(C) applies to all agencies of the Federal Government with respect to recommendations or favorable reports on proposals for (i) legislation and (ii) other major Federal actions significantly affecting the quality of the human environment. The phrase "to the fullest extent possible" in section. 102(2)(C) is meant to make clear that each agency of the Federal Government shall comply with the requirement unless existing law applicable to the agency's operations expressly prohibits or makes