The CEQ regulations (40 CFR §§ 1508.7 and 1508.8) define the impacts and effects that must be addressed and considered by Federal agencies in satisfying the requirements of the NEPA process, which includes direct, indirect and cumulative impacts:

Cumulative impact

"Cumulative impact" is the impact on the environment which results from the incremental impact of the action when added to other past, present, and reasonably foreseeable future actions regardless of what agency (Federal or non-Federal) or person undertakes such other actions. Cumulative impacts can result from individually minor but collectively significant actions taking place over a period of time.

40 CFR 1508.7

Effects

"Effects" include:

(a) Direct effects, which are caused by the action and occur at the same time and place.

(b) Indirect effects, which are caused by the action and are later in time or farther removed in distance, but are still reasonably foreseeable. Indirect effects may include growth inducing effects and other effects related to induced changes in the pattern of land use, population density or growth rate, and related effects on air and water and other natural systems, including ecosystems.

Effects and impacts as used in these regulations are synonymous. Effects includes ecological (such as the effects on natural resources and on the components, structures, and functioning of affected ecosystems), aesthetic, historic, cultural, economic, social, or health, whether direct, indirect, or cumulative. Effects may also include those resulting from actions which may have both beneficial and detrimental effects, even if on balance the agency believes that the effect will be beneficial.

40 CFR 1508.8

Significance of Environmental Impacts

According to the Council on Environmental Quality (CEQ) regulations (40 CFR §§ 1500-1508), the determination of a significant impact is a function of both context and intensity.

Context: This means that the significance of an action must be analyzed in several contexts such as society as a whole (human, national), the affected region, the affected interests, and the locality. Significance varies with the setting of the proposed action. For instance, in the case of a site-specific action, significance would usually depend upon the effects in the locale rather than in the world as a whole. Both short- and long-term effects are relevant.

Intensity: This refers to the severity of impact. Responsible officials must bear in mind that more than one agency may make decisions about partial aspects of a major action. The following should be considered in evaluating intensity:

Impacts that may be both beneficial and adverse. A significant effect may exist even if the Federal agency believes that on balance the effect will be beneficial.
The degree to which the proposed action affects public health or safety.
Unique characteristics of the geographic area such as proximity to historic or cultural resources, park lands, prime farmlands, wetlands, wild and scenic rivers, or ecologically critical areas.
The degree to which the effects on the quality of the human environment are likely to be highly controversial.
The degree to which the possible effects on the human environment are highly uncertain or involve unique or unknown risks.
The degree to which the action may establish a precedent for future actions with significant effects or represents a decision in principle about a future consideration.
Whether the action is related to other actions with individually insignificant but cumulatively significant impacts. Significance exists if it is reasonable to anticipate a cumulatively significant impact on the environment. Significance cannot be avoided by terming an action temporary or by breaking it down into small component parts.
The degree to which the action may adversely affect districts, sites, highways, structures, or objects listed in or eligible for listing in the National Register of Historic Places or may cause loss or destruction of significant scientific, cultural, or historical resources.
The degree to which the action may adversely affect an endangered or threatened species or its habitat that has been determined to be critical under the Endangered Species Act of 1973.
Whether the action threatens a violation of Federal, State, or local law or requirements imposed for the protection of the environment.

-- 40 CFR 1508.2

To determine significance, the severity of the impact must be examined in terms of the type, quality and sensitivity of the resource involved; the location of the proposed project; the duration of the effect (short- or long-term) and other consideration of context. Significance of the impact will vary with the setting of the proposed action and the surrounding area (including residential, industrial, commercial, and natural sites).

NEPA significance is a primarily factor in determining the type of environmental document and process to use for a particular project. NEPA requires an EIS for major Federal actions that significantly affect the quality of the human environment. To determine the appropriate class of action and the requisite level of documentation necessary to comply with NEPA, it is essential to understand the term "significance" and the process for its determination.

Other Resources

Considering Cumulative Effects Under the National Environmental Policy Act
Secondary and Cumulative Impact Assessment in the Highway Project Development Process
Community Impact Assessment
Environmental Guidebook
Interim Guidance (January 31, 2003)
Questions and Answers Regarding the Consideration of Indirect and Cumulative Impacts in the NEPA Process — Interim Guidance (January 31, 2003)

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