The Fund shall begin the preparation of an environmental assessment as early as possible after the designated Fund official has determined that it is required. The Fund may prepare an environmental assessment at any time to assist planning and decisionmaking.

An environmental assessment is a concise public document used to determine whether to prepare an EIS. An environmental assessment aids in complying with the NEPA when no EIS is necessary, and it facilitates the preparation of an EIS, if one is necessary. The environmental assessment shall contain brief discussions of the following topics:

Purpose and need for the proposed action;

Description of the proposed action;

Alternatives considered, including the no action alternative;

Environmental effects of the proposed action and alternative actions; and

Listing of agencies, organizations or persons consulted.

The most important or significant environmental consequences and effects on the areas listed below should be addressed in the environmental assessment. Only those areas which are specifically relevant to the particular proposal should be addressed. Those areas should be addressed in as much detail as is necessary to allow an analysis of the alternatives and the proposal. The areas to be considered are the following:

Natural/ecological features (such as floodplain, wetlands, coastal zones, wildlife refuges, and endangered species);

Air quality;

Sound levels;

Water supply, wastewater treatment and water runoff;

Energy requirements and conservation;

Solid waste;

Transportation;

Community facilities and services;

Social and economic;

Historic and aesthetic; and

Other relevant factors.

If the Fund completes an environmental assessment and determines that an EIS is not required, then the Fund shall prepare a finding of no significant impact. The finding of no significant impact shall be made available to the public by the Fund as specified in 40 CFR 1506.6 of the CEQ regulations.