Which law requires consideration of environmental impact in development projects?

The National Environmental Policy Act (NEPA) is the correct choice because it mandates that federal agencies assess the environmental effects of their proposed actions before making decisions. This includes an obligation to prepare detailed statements known as Environmental Assessments (EAs) and Environmental Impact Statements (EISs) for projects that may significantly affect the quality of the human environment. NEPA serves as a foundational framework for promoting informed decision-making in regards to environmental considerations in development projects.

In contrast, while the Clean Water Act focuses primarily on regulating discharges of pollutants into water bodies, and the Endangered Species Act aims to protect endangered species and their habitats, neither specifically requires a comprehensive evaluation of environmental impacts of development projects across the board. The Urban Development Act may pertain to urban growth and development initiatives but does not specifically address environmental impact assessments in the same way that NEPA does.