NEPA requires the USDOT to consider and document potential significant environmental impacts before carrying out a major federal action (e.g., federal financial assistance, loan). TOD project sponsors are responsible for providing USDOT with sufficient project information and related environmental documents for USDOT review and to ensure compliance with NEPA and other environmental requirements.

On behalf of the Build America Bureau (Bureau), the Federal Transit Administration (FTA) conducts oversight of certain TOD projects and ensures they comply with NEPA and other environmental requirements. The following guidance and reference materials are for TOD projects with FTA oversight. Please direct all NEPA TOD inquiries to the Bureau (BureauTOD@dot.gov) before contacting FTA.

Step 1. Learn about NEPA, other Federal environmental laws, and requirements.

Watch the previously recorded Introduction to NEPA Webinar (passcode: vq2F!#x0) and reference the associated webinar fact sheet and presentation deck.

Review FTA’s environmental procedures and guidance documents for implementing NEPA:

• FTA Environmental Standard Operating Procedures
• Guidance for Implementation of FTA’s Categorical Exclusions
• Environmental Resources and Impact Areas
• USDOT Environmental Checklist

In addition, the TOD Federal Requirements Guidance webpage features a more fulsome list of federal requirements and the TOD FAQs webpage includes a few introductory questions related to NEPA.

Step 2. Evaluate the feasibility of project compliance and engage the Bureau

Determine whether your project can satisfy federal requirements such as NEPA, as well as other TIFIA/RRIF program parameters and eligibility criteria. See initial project intake steps on the Bureau’s TOD landing page. Contact the Bureau with the requested project and borrower information, including any questions you may have about NEPA.

Step 3. Submit a Draft Letter of Interest (LOI)

The LOI form includes a section on the status of NEPA review and other federal requirements. Describe any past, ongoing, and expected NEPA review or other environmental studies or efforts in the form. Discuss the status of the project and general timeline with the Bureau project development lead assigned to your project. Proceed to the next step when the Bureau has issued a preliminary eligibility determination for the project and borrower.

Step 4. Submit Environmental Requirements and Resources Checklist and supporting documents

Project sponsors should utilize the USDOT Environmental Requirements and Resources Checklist (Checklist) to identify potential environmental impacts, applicable Federal environmental laws/requirements, and anticipated approvals or permits related to the project. The Checklist, its supporting documentation, and other related environmental studies will assist DOT/FTA in determining the level of environmental review required for the project. Be sure to provide a narrative and/or documentation to support the box checked in the Comments column and/or as an attachment to the Checklist.

FTA and the Bureau will review the information provided in the Checklist and inform the project sponsor whether additional information is needed.

Step 5. Determine NEPA Class of Action and initiate the Environmental Review Process

FTA will utilize the project information, the completed Checklist, and other available environmental studies/documents to make the initial NEPA class of action determination—whether the project will require the preparation of an environmental impact statement (EIS) or an environmental assessment (EA) or will likely qualify for a categorical exclusion (CE).  The Bureau and/or FTA will notify the project sponsor of its NEPA class of action determination (either a CE, EA, or EIS) and the expected timeline to complete the environmental review.  

NOTE: The NEPA review process can take place concurrently with the Bureau loan process; however, the NEPA review must be concluded (i.e., a CE determination/approval, or a signed Finding of No Significant Impact, or a combined Final EIS/Record of Decision (ROD), or a ROD) before loan close. Sponsors should first submit a draft LOI to initiate the loan and discuss the environmental review process. The completion of the LOI should take precedence over the completion of the Checklist.