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ut the progress the nation is making toward cleaning up the environment, and remends legislation that needs to be passed and issues that needs attention. Every year the CEQ uses the data it gathers to publish the President39。s Annual Report on Environmental Quality, which is available to the public. The CEQ also helps federal agencies to meet their EIS requirements under NEPA 6 by reviewing drafts of these statements. The CEQ establishes regulations pertaining to NEPA procedures. Environmental Impact Statement (EIS) Far more controversial than the creation of the CEQ was the requirement of the environmental impact statement (EIS). This requirement has a widespread impact on several government agencies, as well as on private firms seeking to do business under governmental agency contracts or licenses. Although the process has been criticized by many of the groups affected, most studies of NEPA’s effectiveness have concluded that it has forced greater governmental awareness and more careful planning in many agencies. Several major issues pervade an analysis of the EIS requirement, ranging from who must file the EIS, and when, to disputes over what must be included in the statement, to whether the process is effective. Threshold Considerations Every time a federal agency undertakes an activity, it must decide whether to file an EIS. Filing an unnecessary EIS is a waste of time and money. Failure to file a necessary statement can be equally or more expensive if someone challenges the lack of an EIS and seeks an injunction. However, it is not always easy to know when an EIS is required. NEPA specifies three conditions that must be met for an EIS to be required. First, the activity must be federal. A federal activity is fairly broadly defined. If, for example, a private sector construction firm wants to construct a building that requires a government license or if the project is going to be partly financed by a government loan, the licensing or lending agency is undertaking a federal activity. Whether an EIS is required