A bill to authorize appropriations for the Office of Environmental Quality for fiscal years 1987, 1988, and 1989.

(Measure passed Senate, amended)

Title I: Amends the National Environmental Policy Act of 1969 (the Act) to direct the Council on Environmental Quality to promulgate regulations implementing the National Environmental Policy Act for all Federal agencies, including independent regulatory commissions.

Requires each Federal agency to review on a continuing basis and report to the Council on a statistically significant random sample of environmental impact statements prepared by such agency in which measures were specified for the mitigation of the adverse impact on the environment, including fish and wildlife populations and habitat, that was predicted to result from the action. Requires each review to assess the implementation of mitigation measures and the accuracy and effectiveness of projected adverse impacts and their mitigation.

Directs each Federal agency to comply with requirements for an initial review within 24 months of this Act's enactment.

Authorizes appropriations for FY 1987 through 1989 for the operations of the Office of Environmental Quality and the Council of Environmental Quality.

Authorizes States to petition the Federal Energy Regulatory Commission, within 60 days of this Act's enactment, for the retroactive application of a Commission order waiving certain hydroelectric project certification requirements to projects for which an application was pending on Fedbruary 11, 1987, and is still pending. Reinstates a certification or denial of certification waived by the retroactive application of such order to a petitioning State

Title II: Special Use Air Space - Directs the Secretary of Defense to provide written notice of, and an opportunity to comment on, proposed military special use airspace designations to: (1) Governors of affected States; (2) the heads of Indian tribes whose lands are likely to be affected by such designations; and (3) the Secretary of the Interior, if such designations include airspace over lands administered by the Secretary. Requires that the public in affected areas be given notice of, and an opportunity to comment on, significant proposed designations. Requires the Secretary of Defense, upon the timely request of the Governor of an affected State, to hold a public meeting and consider comments prior to making a determination on a proposed airspace designation.

Directs the Administrator of the Federal Aviation Administration to: (1) adopt procedures, within 90 days of this Act's enactment, to assure that designations of special use airspace are in compliance with the National Environmental Policy Act of 1969; (2) establish procedures for the review of each special use airspace designation at least once every three years; and (3) terminate or modify designations which are found to be inappropriate in the course of such review.