NEPA and the NGDISM Grant Program

What is NEPA?

The National Environmental Policy Act (NEPA, 1969) requires federal agencies to consider the effects of their actions on the environment. Federal funding and/or permits are actions that prompt a review under NEPA and other federal environmental laws and regulations. These requirements must be completed prior to the obligation of funds and prior to any construction activity occurring. PHMSA must complete a NEPA review for each NGDISM grant project because it is authorizing federal funds to be expended on these projects.

During the NEPA process, the federal agency evaluates the proposed action to determine the level of environmental review necessary under NEPA. This can result in a Categorical Exclusion determination, an Environmental Assessment or an Environmental Impact Statement. The level of analysis is often comparable to the potential the project has to cause significant environmental effects to the human and natural environment. During the NEPA process, other environmental laws and regulations are also addressed, such as Section 106 of the National Historic Preservation Act, the Endangered Species Act, the Clean Water Act, Section 4(f) of the US Department of Transportation Act of 1966, Executive Orders (such as Environmental Justice and Floodplains), and other applicable requirements.

How are agency decisions documented in NEPA?

The agency will document its environmental analysis in an Environmental Impact Statement, an Environmental Assessment, or with a Categorical Exclusion. The type of documentation required is based on the significance of the environmental impacts from the project.

Section 109 of NEPA, enacted as part of the Fiscal Responsibility Act of 2023, allows a Federal agency to "adopt a categorical exclusion listed in another agency's NEPA procedures for a category of proposed agency actions for which the categorical exclusion was established." 42 U.S.C. 4336c. PHMSA has adopted the following categorical exclusion from the Department of Energy, and may use it for applicable NGDISM grant projects:

B5.4 Repair or replacement of pipelines. Repair, replacement, upgrading, rebuilding, or minor relocation of pipelines within existing rights-of-way, provided that the actions are in accordance with applicable requirements (such as Army Corps of Engineers permits under section 404 of the Clean Water Act). Pipelines may convey materials including, but not limited to, air, brine, carbon dioxide, geothermal system fluids, hydrogen gas, natural gas, nitrogen gas, oil, produced water, steam, and water.

The NEPA process is concluded by the Federal agency making a categorical exclusion determination, issuing a Finding of No Significant Impact, or approving a Record of Decision.

What is Section 106 and how does it relate to NEPA?

Section 106 of the National Historic Preservation Act (NHPA) (54 USC § 306101 and 36 CFR Part 800) requires federal agencies to take into account the effect of their undertakings on historic properties and afford the Advisory Council on Historic Preservation an opportunity to comment. The process involves identifying historic properties, assessing the effects of the proposed action on those properties, and seeking ways to avoid, minimize, or mitigate any adverse effects. Federal funding and/or permits trigger the requirement to complete the Section 106 process, which is conducted and completed during NEPA. PHMSA is required to complete the Section 106 process for each NGDISM grant project because it is authorizing funds to be expended on these projects.

During this process, the federal agency involves consulting parties to help identify historic properties, evaluate effects, and identify mitigation measures if needed. Consulting parties include State Historic Preservation Officers (SHPOs), Tribes, groups with an interest in historic properties, and the public.

What are the roles and responsibilities under NEPA?

Throughout the NEPA process, PHMSA and the provisional grantees will work together to complete the applicable environmental requirements. The outline of the roles and responsibilities can be briefly described as follows:

PHMSA

Lead federal agency for NEPA
Legally responsible for NEPA decisions and documentation
Coordinate and consult with Tribal governments, and Federal and State agencies
Provide technical assistance to provisional grantees

Provisional Grantees

Provide PHMSA with project specific information and documentation for their project
Provide PHMSA with photographs to assist in complying with the Section 106 process
Verify environmental analysis is accurate based on the affected environment and consistent with the project's scope
Confirm mitigation measures will be implemented as part of the project
Coordinate and consult with PHMSA any time the project scope changes or there will be changes to environmental impacts.
Complete public involvement activities, as appropriate

How long does a NEPA review take?

On average, after the provisional grantee has provided the relevant project information to PHMSA, the environmental process is complete within 5-6 months. Factors that affect the schedule include but are not limited to: (1) the size and scope of the project (2) environmental resources impacted by the project (3) the presence of historic properties in the project area (4) public involvement activities (5) any changes made to the project during the review process.

Where can I find NEPA documents for the NGDISM program?

Additional information for the environmental review process for the NGDISM program can be found on the following pages:

Last updated: Wednesday, July 10, 2024

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