How should a sponsor define a NEPA action?

A sponsor defining a National Environmental Policy Act (NEPA) action should focus on whether the action is included in the Categorical Exclusion (CatEx) list, and also consider any Extraordinary Circumstances that may apply. This is critical because NEPA establishes a framework for evaluating the environmental impacts of proposed federal actions. If an action falls under a CatEx, it indicates that the action is not likely to have a significant environmental effect and therefore may not require a detailed environmental assessment or an Environmental Impact Statement (EIS). However, even if an action is on the CatEx list, it is essential to evaluate whether there are any Extraordinary Circumstances—such as significant environmental impacts—that could necessitate further review. This dual consideration helps ensure that environmental factors are properly addressed in the project planning process.

The other options do not address the key components of determining a NEPA action. Estimating project costs before approval pertains to project budgeting rather than environmental review. Obtaining final funding from federal agencies is subsequent to the NEPA process, and while publicly announcing project details is important for transparency and community engagement, it does not relate to the definition and assessment of a NEPA action.