Such projects often have at least some impact on the env ironment, and hence may be required to comply with any of a number of local, tribal, state, or federal environmental laws—including requirements of the National Environmental Policy Act of 1969 (NEPA, 42 U.S.C. §4321 et seq.). Exempted from NEPA's requirements are emergency response actions under provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act, 42 U.S.C. In the past, there has been congressional interest in the NEPA implementation process for disaster-related projects. This interest has been driven, in part, by federal grant applicants who have been confused about both their role in the NEPA process and what the law requires. To address these issues, this report discusses the NEPA process as it applies to projects for which federal funding to recover from or prepare for a disaster may be requested by local, tribal, or state grant applicants. Specifically, the report provides an overview of the NEPA process as it applies to such projects, identifies the types of projects (categorized by the federal funding source) likely to require environmental review, and delineates both the types of projects for which no or minimal environmental review is required (those for which statutory or categorical exclusions apply) and those that likely require more in-depth review. For example, the need to comply with another environmental law, such as the Clean Water Act, may be identified within the framework of the NEPA process, but NEPA itself is not the source of the obligation. Another example of the use of NEPA as an umbrella statute can be seen in the HUD Office of Community Planning and Development environmental review requirements applicable to Community Development Block Grants (CDBG). The environmental review process is intended simply to identify the compliance requirements that do apply and ensure that the applicant will be compliant, as appropriate. Still, this situation illustrates the difficulty some stakeholders have in distinguishing between what is required under NEPA and what may be required under other relevant environmental laws. To understand what is required of applicants, it is helpful to understand the types of disaster-related projects associated with various funding sources and the levels of environmental review that may be required for proposed projects. Agency and Applicant Roles

Generally, there are three entities that play a significant role in the NEPA process for disaster-related projects: the lead agency, which is responsible for preparing the NEPA documentation; cooperating agencies, which may include any local, tribal, state, or federal agencies that have jurisdiction by law or special expertise regarding any environmental impact involved in a proposal; and the project applicant (who may also be referred to as a responsible entity or grantee under different agency requirements), such as local, tribal, or state entities requesting federal funds. The U.S. Department of Agriculture—to ensure that impacts to farmlands are considered. For example, project applicants are required to provide information to support FEMA's Environmental and Historic Preservation compliance process.
In the aftermath of a major disaster, communities may need to rebuild, replace, or possibly even relocate a multitude of structures. When recovery activities take place on such a potentially large scale, compliance with any of a number of local, state, and federal laws or regulations may apply. For example, when federal funding is provided for disaster-related activities, the agency providing those funds is generally required to identify and consider the environmental impacts of the proposed activities in accordance with the National Environmental Policy Act of 1969 (NEPA, 42 U.S.C. §4321 et seq.).
As commonly implemented, the process of identifying potential environmental impacts, as required under NEPA, serves as a framework to identify any other environmental requirements that may apply to that project as a result of those impacts. This use of NEPA as an "umbrella" statute can lead to confusion. For example, before the Department of Housing and Urban Development's (HUD) can grant an applicant request for Community Development Block Grant (CDBG) funds, that applicant must complete an environmental review of the proposed project. A required element of that review is the applicant's certification that compliance with any applicable requirements related to historic preservation, floodplain management, endangered species, air quality, and farmland protection have been considered. This review is required not only to meet NEPA obligations, but also to ensure that the project being funded does not violate other applicable laws. From the applicant's perspective, this may blur the distinction between what is required under NEPA and what is required under separate compliance requirements identified within the context of the NEPA process.
For many federal actions undertaken in response to emergencies or major disasters, NEPA's environmental review requirements are exempted under provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act). (The Stafford Act does not, however, exempt such projects from other applicable environmental requirements.) In the past, some Members of Congress have been interested in the NEPA process as it applies to disaster-related projects. This interest has been driven, in part, by federal grant applicants who have been confused about both their role in the NEPA process and what the law requires.
To address issues associated with the NEPA process, this report discusses NEPA as it applies to projects for which federal funding to recover from or prepare for a disaster has been requested by local, tribal, or state grant applicants. Specifically, the report provides an overview of the NEPA process as it applies to such projects, identifies the types of projects (categorized by federal funding source) likely to require environmental review, and delineates the types of projects for which no or minimal environmental review is required (i.e., those for which statutory or regulatory exemptions apply) and those likely to require more in-depth review.