(a) An authority shall adopt rules for environmental review of a transportation project that is not subject to review under the National Environmental Policy Act (42 U.S.C. § 4321 et seq.), as amended. The rules must:
(1) specify the types of projects for which a public hearing is required;
(2) establish procedures for public comment on the environmental review, including a procedure for requesting a public hearing on an environmental review for which a public hearing is not required; and
(3) require:
(A) an evaluation of any direct or indirect environmental effect of the project;
(B) an analysis of project alternatives; and
(C) a written report that briefly explains the authority’s review of the project and that specifies any mitigation measures on environmental harm on which the project is conditioned.
(b) An environmental review of a project must be conducted before the authority may approve the location or alignment of the project.

(c) The authority shall consider the results of the environmental review in executing its duties.
(d) The authority shall coordinate with the Texas Commission on Environmental Quality and the Parks and Wildlife Department in the preparation of an environmental review.
(e) This section does not prohibit an owner of a public utility facility or a proposed public utility facility from conducting any necessary environmental evaluation for the public utility facility. The authority is entitled to review and give final approval regarding the sufficiency of any environmental evaluation conducted for a facility that is part of a transportation project.