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Under the National Environmental Policy Act (NEPA), an environmental impact statement (EIS) is required for federal projects that may significantly affect the quality of the human environment. NEPA mandates that federal agencies assess the environmental effects of their proposed actions before making decisions. This includes a thorough analysis of potential impacts and alternatives to the proposed action, as well as public involvement in the decision-making process.

The requirement for an EIS ensures that environmental considerations are integrated into the federal agency's planning and decision-making, fostering transparency and public engagement. Therefore, option B accurately reflects NEPA's intent to evaluate the environmental consequences of federal actions, making it the correct choice in this context.

The other options do not correctly represent NEPA requirements. Environmental impact assessments and statements are specific to federal projects; thus, assessments for all local projects do not fall under NEPA. Public hearings are not mandated for all environmental actions but may be necessary for the projects that require an EIS. Annual reports on environmental quality are not specifically a requirement under NEPA, but rather tend to relate to other environmental regulations and laws.