The National Environmental Policy Act of 1969 requires U.S. federal agencies to consider the environmental effects of their actions.  This act, referred to as the NEPA, also created the Council on Environmental Quality, called the CEQ.  This group was made to oversee NEPA, as well as to work with the President to solve environmental problems.

The first part, or Title I, of NEPA deals with the new requirements for federal agencies.  This section is meant to balance economic and environmental needs by mandating that all federal agencies consider and evaluate the effects of their actions on the environment.  Each agency is required to prepare a report on such environmental consequences and to submit it to the CEQ before the agency's actions are carried forth.  The statement must include the environmental impact, unavoidable environmental consequences, possible alternatives, both short and long-term impacts, and irreversible effects on resources.  The report must include physical, chemical, biological, and social factors.  The decision is left to the CEQ, along with the government of the area effected and the general public.

Title II of NEPA established the CEQ.  Until its elimination by President Bill Clinton in 1993, this council advised the President on environmental issues and oversaw NEPA.  Clinton replaced this agency with the White House Office on Environmental Policy, which is more powerful in coordinating environmental policy.  In 1978, the CEQ issued regulations applying to all federal agencies and requiring them to prepare environment impact statements that had to be approved by the CEQ.                                                                                                                                                                                    

There were three levels to the approval process.  If, after a brief report, the CEQ decided that an agency's action had no significant environmental impact, the agency was exempt from further review and could continue as planned.  If an action was not excluded at the first level, the agency had to complete a more thorough assessment.  The CEQ could then either issue a finding of no significant impact (FONSI) and with it make minor suggestions on how to reduce environmental impact, or the agency had to continue on to the third and final level.  The third level was an environmental impact statement, or an EIS.  This was a very detailed evaluation, including the possible alternatives.  A draft of the report had to be sent to various other agencies, local governments, and the general public.  The edited version was then sent to the CEQ, which decided what the next step would be.

The CEQ also evaluated the actions of private developments in need of federal permits.

The text of the law