Environmental Impact Statement

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DEFINITION of 'Environmental Impact Statement'

A report addressing the potential effects on the environment of a proposed federal government project. These statements are required by Section 102(2) (C) of the National Environmental Policy Act of 1969 and are reviewed by the Environmental Protection Agency. The public may comment on an EIS while it is in its draft stage. All statements are published in the Federal Register and are also available online at the EPA's website.

INVESTOPEDIA EXPLAINS 'Environmental Impact Statement'

In addition to outlining proposed actions, an EIS also outlines possible alternatives and the potential environmental impacts of the alternatives. Some states, for example California, have adopted similar requirements for their taxpayer-funded projects.

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