The Department of Energy (DOE) prepared this Environmental Assessment (EA) to evaluate the potential environmental consequences of providing a financial assistance grant under the American Recovery and Reinvestment Act of 2009 to Texas A&M University (Texas A&M) for installation of a combined heat and power (CHP) system at its campus in College Station, Texas. DOE's proposed action is to provide $10 million in financial assistance in a cost-sharing arrangement with the project proponent, Texas A&M. The cost of the proposed project would be about $70.3 million. Texas A&M's proposed project is to install and operate a high-efficiency CHP system that would produce steam for heating and cooling as well as generate electricity. This EA evaluates commonly addressed environmental resource areas and identifies no significant adverse environmental impacts for the proposed project. The proposed project would upgrade the Central Utility Plant and campus electrical distribution system to serve Texas A&M expansion. The proposed CHP system would result in substantial energy savings, reduce carbon dioxide emissions, and reduce the amount of electricity Texas A&M would purchase from carbon-producing plants such coal-fired power generators.