Which agency is tasked with evaluating environmental quality in relation to national policies?

The Council on Environmental Quality (CEQ) is the correct choice as it is specifically established to advise the President on environmental policy and to ensure the integration of environmental values into the federal government's decision-making process. The CEQ coordinates the government's environmental efforts and works with other federal agencies to develop policies that promote the health of the environment while ensuring sustainable practices.

The agency plays a significant role under the National Environmental Policy Act (NEPA), which requires federal agencies to assess the environmental effects of their proposed actions before making decisions. By overseeing the implementation of NEPA, the CEQ ensures that environmental quality is thoughtfully evaluated in relation to national policies. This includes promoting a better understanding of environmental considerations among federal, state, and local government entities.

In contrast, while the Environmental Protection Agency (EPA) is also heavily involved in assessing and managing environmental quality through compliance and regulatory frameworks, its primary mission is more focused on enforcing environmental laws and regulations rather than the broader advisory and policy integration role of the CEQ. The Department of Housing and Urban Development (HUD) deals mainly with urban and housing development and may address environmental issues only as they pertain to housing. Therefore, the CEQ stands out as the agency dedicated to aligning national policies with environmental evaluation.