If agencies agree that a proposed project will have no environmental adverse impacts, this finding is known as what?

The concept referred to in the correct answer is known as a "Finding of No Significant Impact" (FONSI). This determination is made when an agency concludes that a proposed project will not have a significant adverse effect on the environment, thereby streamlining the review process under the National Environmental Policy Act (NEPA). A FONSI is typically documented following an Environmental Assessment (EA), which evaluates the potential environmental impacts of the project. The finding indicates that further environmental documentation, such as an Environmental Impact Statement (EIS), is not necessary, promoting efficiencies in project approval while ensuring that environmental considerations are still taken into account.

The other options do not accurately capture this specific determination in environmental law. The term "Finding of limited impact" is not a standard phrase used in environmental assessments, and it does not reflect the formal acknowledgment of no significant impact. "Exempt from permitting requirement" implies that a project does not require any permits, which is a different consideration altogether and does not necessarily relate to environmental impacts. Similarly, "Finding of no objection with proposal" does not specifically refer to environmental evaluations and lacks the formal context needed to indicate a thorough assessment of negative impacts. Thus, the focus on "Finding of No Significant Impact" as a crucial and