(1) Cooperation and consultation.— In carrying out the policy of section
5301 (e), the Secretary shall cooperate and consult with the Secretary of the Interior and the Administrator of the Environmental Protection Agency on each project that may have a substantial impact on the environment.
(2) Public participation in environmental reviews.— In performing environmental reviews, the Secretary shall review each transcript of a hearing submitted under section
5323 (b) to establish that an adequate opportunity to present views was given to all parties having a significant economic, social, or environmental interest in the project, and that the project application includes a record of
(A) the environmental impact of the proposal;
(B) adverse environmental effects that cannot be avoided;
(C) alternatives to the proposal; and
(D) irreversible and irretrievable impacts on the environment.
(3) Approval of applications for assistance.—
(A) Findings by the secretary.— The Secretary may approve an application for financial assistance for a capital project in accordance with this chapter only if the Secretary makes written findings, after reviewing the application and the transcript of any hearing held before a State or local governmental authority under section
5323 (b), that
(i) an adequate opportunity to present views was given to all parties having a significant economic, social, or environmental interest;
(ii) the preservation and enhancement of the environment and the interest of the community in which the project is located were considered; and
(iii) no adverse environmental effect is likely to result from the project, or no feasible and prudent alternative to the effect exists and all reasonable steps have been taken to minimize the effect.
(B) Hearing.—
If a hearing has not been conducted or the Secretary decides that the record of the hearing is inadequate for making the findings required by this subsection, the Secretary shall conduct a hearing on an environmental issue raised by the application after giving adequate notice to interested persons.
(C) Availability of findings.—
The Secretarys findings under subparagraph (A) shall be made a matter of public record.