Environmental Compliance

Social and Economic Impact Analysis

The Council on Environmental Quality's Regulations for Implementing the Procedural Provisions of the National Environmental Policy Act (CEQ NEPA regulations) require Federal agencies to "identify environmental effects and values in adequate detail" (40 CFR • 1501.2) in their analyses, and define the term "effects" to include ecological, aesthetic, historic, cultural, economic, social, or health effects (40 CFR • 1508.8). The CEQ NEPA regulations define the human environment as the natural and physical environment and the relationship of people with that environment. However, analysis should be restricted to those social or economic factors that are interrelated to the natural or physical environment and may be affected by the range of alternatives considered. Social or economic impact alone is not intended to require preparation of an environmental impact statement (EIS) (40 CFR• 1508.14) [Como-Falcon Coalition v. United States Department of Labor (609 F.2d 342 (8th Cir. 1979))].

Actions which temporarily or permanently increase the population in an area, alter transportation systems, or change the type of major mployers in an area are likely to affect social or economic factors. Relevant social or economic factors which should be considered include those affecting lifestyles, such as standard of living, job security, or recreational opportunities, those affecting social behavior patterns, such as changes in interpersonal communication patterns or levels of annoyance, or those affecting community needs, such as water supply, housing, sewage disposal, utilities, fire and police protection, regional income, proportion of the workforce employed, or property values.

An EIS should indicate those factors not related to environmental quality which are likely to be relevant and important to the decision. A cost-benefit analysis of the proposed alternative may be relevant to the choice between alternatives. A relevant cost-benefit analysis should be incorporated into the EIS by reference or be appended to it (40 CFR • 1502.23). When including quantitative economic analyses, it is important to discuss the relationship between those analyses and any other qualitative environmental impacts, values, or amenities. Many of the significant environmental effects identified will be difficult to quantify. Some method of comparing quantified and unquantified entities must be developed to insure appropriate consideration is given to unquantified environmental amenities and values (42 U.S.C. 4332).