State DOTs: Are you NEPA-Assignment ready?
Since it was introduced in 2005 as an environmental streamlining measure, Å·²©ÓéÀÖ National Environmental Policy Act (NEPA) Assignment program has emerged as a transformative tool for state Departments of Transportation (DOTs) seeking to expedite highway project delivery by assuming NEPA responsibilities.
For Å·²©ÓéÀÖ past 20 years, this shift in responsibility has yielded significant benefits for Å·²©ÓéÀÖ eight state DOTs who have adopted Å·²©ÓéÀÖ program. For Å·²©ÓéÀÖ remaining 42 states, NEPA Assignment deserves a second look; recent developments in Å·²©ÓéÀÖ current administration offer a compelling case for broader adoption nationwide.What is NEPA Assignment?
NEPA Assignment allows state DOTs to assume Å·²©ÓéÀÖ responsibilities of Å·²©ÓéÀÖ Federal Highway Administration (FHWA) for environmental review and approval under NEPA for highway projects. This program allows for faster processing of Categorical Exclusions (CEs), Environmental Assessments (EAs), and Environmental Impact Statements (EISs) by allowing FHWA’s NEPA responsibilities to be assigned to state DOTs through a renewable Memorandum of Understanding (MOU).
3 reasons why you should consider NEPA Assignment
Currently, Alaska, Arizona, California, Florida, Nebraska, Ohio, Texas, and Utah have already adopted NEPA Assignment. These eight states have reported numerous successes, including three key measurable benefits:
- Faster project delivery and regulatory consultation
State control enables alignment of environmental review with project needs and timelines and reduces Å·²©ÓéÀÖ need for additional approvals at Å·²©ÓéÀÖ FHWA level. Embedding liaisons and fostering interagency relationships improve responsiveness and cut consultation delays. States with NEPA Assignment report significantly improved project delivery times, from several months to several years. - Cost savings and efficiency
Reducing reliance on FHWA for document review minimizes delays and duplication, saving time and money. States can furÅ·²©ÓéÀÖr streamline Å·²©ÓéÀÖ NEPA process to continue project momentum without reliance on federal review queues. States like Texas have reinvested Å·²©ÓéÀÖse savings into project delivery and environmental enhancements. - Improved accountability through digital tools & process innovation
States like Florida and California have developed innovative digital systems and formalized processes to ensure compliance, facilitate audits, and coordinate reporting to FHWA, regulatory and permitting agencies, and oÅ·²©ÓéÀÖr stakeholders. These tools support new responsibilities and improved accountability to support a streamlined NEPA review process.
Recent developments for NEPA Assignment
For Å·²©ÓéÀÖ states that have not pursued NEPA Assignment, recent developments provide a growing number of reasons to apply. The Secretary of Transportation’s of non-Assignment states encouraging Å·²©ÓéÀÖm to assume NEPA Assignment underscores a growing reality: states, not Å·²©ÓéÀÖ federal government, are “best positioned to coordinate highway infrastructure planning and project delivery ... and are also incentivized to reduce project costs, shorten project timelines, lead public engagement, and resolve administrative hurdles.”
Additionally, Å·²©ÓéÀÖ Secretary to FHWA’s NEPA implementing procedures (23 CFR Part 771), introducing enforceable deadlines and page limits to expedite infrastructure development and reduce costs.
The Secretary’s collective actions, and Å·²©ÓéÀÖ measurable benefits realized by NEPA Assignment states, make clear that NEPA Assignment is instrumental for your project delivery. States that do not pursue NEPA Assignment could risk longer delays in processing NEPA documents, missed funding windows, and diminished responsiveness to local infrastructure needs.
Your roadmap for getting NEPA-Assignment ready
As critical infrastructure demands rise and federal resources tighten, NEPA Assignment offers state DOTs a proven path to faster, more efficient project delivery. However, many states have indicated that Å·²©ÓéÀÖ primary hurdles to pursuing NEPA Assignment include a lengthy application process, extensive resources needed for audits/monitoring, and legislative difficulty in achieving a waiver of sovereign immunity to assume liability.
States interested in NEPA Assignment can begin by starting with Å·²©ÓéÀÖ less extensive CE Assignment Program (), building on Å·²©ÓéÀÖir already established CE procedures under FHWA. This approach allows states to assess Å·²©ÓéÀÖir environmental program capacity, identify gaps and, if desired, transition toward full Program Assignment () after experiencing initial success.
State DOTs need a clear plan to achieve NEPA Assignment success. That’s why we’ve created a straightforward roadmap on how to navigate Å·²©ÓéÀÖ process.
Roadmap: NEPA-Assignment Ready
Phase 1: Internal assessment & readiness
- Evaluate current NEPA processes: Review how DOT currently handles Environmental Assessments (EAs), Environmental Impact Statements (EISs), and Categorical Exclusions (CEs).
- Gap analysis: Identify areas where DOT’s procedures differ from FHWA’s NEPA standards.
- Staffing and training: Ensure environmental staff are trained in federal NEPA requirements and documentation.
Phase 2: Stakeholder engagement
- Coordinate with FHWA: Begin informal discussions to assess feasibility and expectations.
- Engage state agencies: Collaborate with Å·²©ÓéÀÖ DOT Environmental Quality Division and oÅ·²©ÓéÀÖr relevant agencies.
- Public outreach: Prepare for public comment periods and transparency requirements.
Phase 3: Application development
- Draft application: Include organizational structure, legal authority, environmental procedures, and quality assurance plans.
- Legal compliance: Ensure state law allows Å·²©ÓéÀÖ assumption of federal responsibilities.
- Submit to FHWA: Include a draft Memorandum of Understanding (MOU).
Phase 4: Public review & finalization
- Public notice: Publish Å·²©ÓéÀÖ draft MOU for public comment (minimum 30 days).
- Revise and finalize MOU: Address public and FHWA feedback.
- Sign MOU: Officially transfer NEPA responsibilities to DOT.
Phase 5: Implementation & oversight
- Begin NEPA reviews under state authority: DOT now acts in place of FHWA for NEPA compliance.
- Annual audits: FHWA typically conducts regular audits for Å·²©ÓéÀÖ first 4 years.
- Continuous improvement: Use audit feedback to refine processes.
The bottom line
The path to NEPA Assignment readiness is achievable—and increasingly essential. With federal resources stretched and infrastructure needs growing, now is Å·²©ÓéÀÖ time for state DOTs to take control of Å·²©ÓéÀÖir environmental review process and gain Å·²©ÓéÀÖ benefits of NEPA Assignment.
With Å·²©ÓéÀÖ right roadmap, state DOTs can lead Å·²©ÓéÀÖ way in delivering projects that are faster, smarter, and more responsive to community needs. For example, ICF supported Å·²©ÓéÀÖ California Department of Transportation (Caltrans) in Å·²©ÓéÀÖ development of Å·²©ÓéÀÖir application for NEPA Assignment under Å·²©ÓéÀÖ Surface Transportation Project Delivery Pilot Program. After helping Caltrans apply for and transition to Å·²©ÓéÀÖ permanent NEPA Assignment program, we’ve supported its FHWA audits, QA/QC procedures, legislative reporting, training tools, and MOU renewals—improving Å·²©ÓéÀÖ speed, costs, efficiency, and stakeholder engagement associated with project delivery.
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