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that MDBs, thus far, seem responsive to concerns raised early in

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Secretary of the Treasury to instruct U.S. Executive Directors of

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begin discussions with other donor nations to seek practical ways

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It should be noted that many Banks and donor nations believe

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many countries


07 CC


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by donor country decision-makers in reviewing loans. participating in this exercise along with Treasury, State, and

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environmental issues.

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Here in the United States we have sought to achieve over the

past 18 years the goals of the National Environmental Policy Act.

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review process which has proved to be a useful tool in agency

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is that, done properly, the NEPA process does not dictate results

but rather assures full consideration of environmental issues and

alternatives at

a stage of decision-making early enough to be of

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impacts, such the Federal Highway. Administration, the Forest Service, and the Army Corps of Engineers, have fully




impact assessment


into their project development and decision-making processes.

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environmental impacts is a needed part of the MDB decision-making process.

However, we question whether NEPA, specifically, is

adaptable to the MDB process or, if it is, whether the U.S. can,

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is the most comprehensive of these laws, although it is but one


Therefore, while we view aspects of NEPA

as desirable for

MDB decision-making, we suggest a pilot program rather than any

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The ultimate U.S. objective is to ensure that MDBs implement

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staffs in MDBS--providing advice, technical assistance, training,

and education on

the conduct of environmental analyses; and by

example, cooperatively conduct specific analyses similar to those

done by Federal agencies under NEPA, but without certain NEPA

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Such a plan would offer environmental analyses to inform MDB

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We stress that the suggested program will be an ineffective,

one-sided effort without coordination and a continuation of on

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environmental review, but rather to promote the goal we all agree

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factors as the MDB considers whether to finance a project.

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under section 309 of the clean Air Act we are required to review

all major Federal actions--be they regulatory legislative, or

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That concludes my prepared statement, Mr. Chairman.

I would

be pleased to answer any questions the Subcommittee may have.

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