The Role of the Environmental Review Process in Federally Funded Highway Projects: Background and Issues for Congress

Summary

Under programs administered by the Department of Transportation’s (DOT’s) Federal Highway Administration (FHWA), certain highway and bridge projects may be eligible for federal funding. Project approval and the receipt of federal funds are conditioned on the project sponsor (e.g., a local public works or state transportation agency) meeting certain standards and complying with federal law. Activities necessary to demonstrate compliance with those requirements may be completed at various stages of project development. Although the names of each stage may vary from state to state, project development generally includes the following: planning, preliminary design and environmental review, final design and rights-of-way acquisition, construction, and facility operation and maintenance.

When there is debate over the time it takes to complete federal highway projects, the environmental review stage has been a primary focus of congressional attention concerning legislative options to speed project delivery. The current process includes activities necessary to demonstrate that all potential project-related impacts to the human, natural, and cultural environment are identified; effects of those impacts are taken into consideration (among other factors such as economic or community benefits) before a final decision is made; the public is included in that decision-making process; and all state, tribal, or federal compliance requirements applicable as a result of the project’s environmental impacts are, or will be, met.

Compliance requirements depend on site-specific factors, including the size and scope of the project, and whether and to what degree it may affect resources such as parks, historic sites, water resources, wetlands, or urban communities. For all proposed federal-aid highway projects, however, some level of review will be required under the National Environmental Policy Act of 1969 (NEPA, 42 U.S.C. §4321 et seq.). Broadly, NEPA requires federal agencies to consider the environmental effects of an action before proceeding with it and to involve the public in the decision-making process.

The time it takes to complete the NEPA process is often the focus of debate over project delays attributable to the overall environmental review stage. However, the majority of FHWA-approved projects require limited documentation or analyses under NEPA. Further, when environmental requirements have caused project delays, requirements established under laws other than NEPA have generally been the source. This calls into question the degree to which the NEPA compliance process is a significant source of delay in completing either the environmental review process or overall project delivery. Causes of delay that have been identified are more often tied to local/state and project-specific factors, primarily local/state agency priorities, project funding levels, local opposition to a project, project complexity, or late changes in project scope. Further, approaches that have been found to expedite environmental reviews involve procedures that local and state transportation agencies may implement currently, such as efficient coordination of interagency involvement; early and continued involvement with stakeholders interested in the project; and identifying environmental issues and requirements early in project development.

Bills in the House and Senate (the American Energy and Infrastructure Jobs Act of 2012 (H.R. 7) and Moving Ahead for Progress in the 21st Century (MAP-21; S. 1813)) would reauthorize DOT programs. Both include provisions intended to expedite project delivery by changing elements of the environmental review process, particularly NEPA requirements. This report provides information on existing NEPA and environmental review requirements, particularly requirements that may be subject to change under the House and Senate proposals.