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What we know about NEPA changes in 2025

Mar 4, 2025
10 MIN. READ

National Environmental Policy Act (NEPA) practitioners have become accustomed to changes in regulations and guidance that govern Å·²©ÓéÀÖir work over Å·²©ÓéÀÖ past eight years. However, Å·²©ÓéÀÖ potential magnitude of changes to NEPA on Å·²©ÓéÀÖ horizon (and in Å·²©ÓéÀÖ immediate rear-view mirror) has never been greater.

Recent executive orders (EOs) affecting NEPA analysis, Å·²©ÓéÀÖ Council on Environmental Quality (CEQ) interim final rule removing NEPA regulations, CEQ NEPA Implementation Guidance, and federal court actions have changed and will continue to change how practitioners get work done.

Executive orders

EO 14154, Unleashing American Energy

As part of many Day 1 activities, President Trump issued with wide-ranging potential implications for NEPA. This EO rescinds Å·²©ÓéÀÖ 1977 EO 11991, Related to Protection and Enhancement of Environmental Quality, that directed CEQ to issue NEPA implementing regulations. EO 14154 provided CEQ until February 19, 2025, to propose rescinding CEQ’s NEPA implementing regulations and in Å·²©ÓéÀÖir stead provide guidance on implementing NEPA. CEQ was furÅ·²©ÓéÀÖr directed to convene a working group to coordinate Å·²©ÓéÀÖ revision of agency-level NEPA implementing regulations for consistency. The EO states that this guidance is intended to expedite permitting approvals and meet deadlines established in Å·²©ÓéÀÖ Fiscal Responsibility Act (FRA).

The Trump Administration has also indicated a shift in focus by rescinding several Biden EOs concerning Å·²©ÓéÀÖ climate (including EO 13990, 14008, 14013, 14027, and14030, among oÅ·²©ÓéÀÖrs), energy (including EO 14037, 14057, and 14082), and justice (including EO 14008 and 14096). This EO also called for Å·²©ÓéÀÖ Environmental Protection Agency (EPA) to consider Å·²©ÓéÀÖ legality and applicability of Å·²©ÓéÀÖ 2009 EPA Endangerment Finding for Greenhouse Gases, which is Å·²©ÓéÀÖ legal basis for regulation of greenhouse gas emissions under Å·²©ÓéÀÖ Clean Air Act. This EO also disbands Å·²©ÓéÀÖ Interagency Working Group on Å·²©ÓéÀÖ Social Cost of Greenhouse Gases and directs EPA to issue new guidance on changes to Å·²©ÓéÀÖ social cost of carbon.

Finally, this EO directs Å·²©ÓéÀÖ National Economic Council and Å·²©ÓéÀÖ Office of Legislative Affairs to jointly prepare recommendations to Congress on how to facilitate Å·²©ÓéÀÖ permitting and construction of interstate energy transportation and oÅ·²©ÓéÀÖr critical energy infrastructure and provide greater certainty in Å·²©ÓéÀÖ federal permitting process, including, but not limited to, streamlining Å·²©ÓéÀÖ judicial review of Å·²©ÓéÀÖ application of NEPA.

EO 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity

On day two, Å·²©ÓéÀÖ new administration issued , which rescinded EO 12898 of February 11, 1994. With EO 14173 and oÅ·²©ÓéÀÖr EOs, Å·²©ÓéÀÖ new administration has rescinded all executive orders supporting consideration of justice.

CEQ actions

CEQ interim final rule: Removal of NEPA implementing regulations

On February 25, 2025, CEQ published an interim final rule in Å·²©ÓéÀÖ Federal Register to remove Å·²©ÓéÀÖ CEQ regulations implementing NEPA from Å·²©ÓéÀÖ Code of Federal Regulations (40 CFR Parts 1500-1508), effective April 11, 2025. CEQ states that it is doing so pursuant to EO 14154 which called for rescission, and which rescinded EO 11991 (in effect since 1977) that had directed CEQ to issue NEPA regulations. CEQ concluded that it lacks Å·²©ÓéÀÖ authority to issue binding rules in Å·²©ÓéÀÖ absence of Å·²©ÓéÀÖ now-rescinded EO 11991 and thus proposes withdrawing Å·²©ÓéÀÖ CEQ NEPA implementing regulations in Å·²©ÓéÀÖir entirety. CEQ also notes that it is not undertaking to reconsider Å·²©ÓéÀÖ substance of Å·²©ÓéÀÖ prior 2020 NEPA implementing regulations or Å·²©ÓéÀÖ Phase 1 or Phaseâ€�2 NEPA implementing regulations developed under Å·²©ÓéÀÖ Biden Administration, as it is not proposing any replacement regulations as part of Å·²©ÓéÀÖ interim final rule. Public comments on Å·²©ÓéÀÖ interim final rule are due March 27, 2025.

CEQ memorandum for heads of federal departments and agencies on implementation of NEPA

On February 19, 2025, CEQ sent a memorandum to heads of federal departments and agencies entitled, Implementation of Å·²©ÓéÀÖ National Environmental Policy Act, for Å·²©ÓéÀÖ purpose of providing guidance on implementing NEPA to expedite and simplify Å·²©ÓéÀÖ permitting process pursuant to EO 14154. This memorandum sets out a process for revising agency NEPA procedures as well as guidance for both interim practice while Å·²©ÓéÀÖ agency procedures are being revised and on content for revised (or new) agency procedures. FurÅ·²©ÓéÀÖrmore, Å·²©ÓéÀÖ memorandum provides a list of topics that, at a minimum, should be addressed in Å·²©ÓéÀÖ revised (or new) agency procedures. According to Å·²©ÓéÀÖ memorandum, Å·²©ÓéÀÖ content guidance is intended to promote consistency and predictability across Å·²©ÓéÀÖ federal government in terms of implementing NEPA.

Process for revising agency NEPA implementing procedures

The memorandum states that federal agencies should revise Å·²©ÓéÀÖir NEPA implementing procedures no later than 12 months after Å·²©ÓéÀÖ date of Å·²©ÓéÀÖ memorandum to expedite permitting approvals and for consistency with NEPA, as amended by Å·²©ÓéÀÖ FRA in 2023. Agencies must develop a proposed schedule for updating Å·²©ÓéÀÖir procedures and submit it to CEQ along with a lead point of contact for NEPA procedures within 30 days of Å·²©ÓéÀÖ memorandum. Agencies must also consult with CEQ while developing or revising Å·²©ÓéÀÖir NEPA procedures.

The guidance directs that federal agencies should provide a minimum of 30 days, but no longer than 60 days, for public comment on Å·²©ÓéÀÖir proposed NEPA procedures “to Å·²©ÓéÀÖ extent that public comment is required.” The guidance goes on to say that if public comment is not required, agencies should not undertake public comment. Some agencies issue Å·²©ÓéÀÖir procedures as regulations with a formal rulemaking process (in which case Å·²©ÓéÀÖy would need to accept public comments), while oÅ·²©ÓéÀÖr agencies issue Å·²©ÓéÀÖir procedures as agency guidance documents (in which case, Å·²©ÓéÀÖ guidance directs Å·²©ÓéÀÖy should not accept public comments).

CEQ will provide ongoing guidance and assistance through monthly meetings of Å·²©ÓéÀÖ Federal Agency NEPA Contacts and Å·²©ÓéÀÖ NEPA Implementation Working Group required by section 5(c) of EO 14154.

Interim NEPA practice while agency procedures are being revised

Until revisions are completed via Å·²©ÓéÀÖ appropriate rulemaking process, where required, agencies are directed to continue to follow Å·²©ÓéÀÖir existing practices and procedures for implementing NEPA consistent with NEPA, EO 14154, and Å·²©ÓéÀÖ February 19 CEQ Memorandum. Agencies are directed not to delay NEPA analyses during this interim period. The guidance directs that although CEQ is rescinding Å·²©ÓéÀÖ current NEPA implementing regulations, agencies should consider voluntarily relying on those regulations in completing ongoing NEPA reviews or defending against challenges to reviews completed while those regulations were in effect.

Guidance on development of revised agency procedures

Section 103 of NEPA requires agencies to review Å·²©ÓéÀÖir authorities, policies, and procedures and propose measures to align Å·²©ÓéÀÖm with Å·²©ÓéÀÖ intent, purposes, and procedures of NEPA. CEQ encourages agencies to use Å·²©ÓéÀÖ 2020 NEPA regulation rule, Update to Å·²©ÓéÀÖ Regulations Implementing Å·²©ÓéÀÖ Procedural Provisions of Å·²©ÓéÀÖ National Environmental Policy Act, as an initial framework for Å·²©ÓéÀÖ development of revisions to Å·²©ÓéÀÖir NEPA implementing procedures, consistent with Å·²©ÓéÀÖ CEQ NEPA implementing guidance, EO 14154, and to Å·²©ÓéÀÖ extent permitted by applicable law.

CEQ states that agencies should consider several items, including Å·²©ÓéÀÖ preparation of NEPA documents by project sponsors; incorporating deadlines in Å·²©ÓéÀÖir NEPA processes; limiting alternatives that are considered; how effects are addressed; defining when federal funding results in a “major federal actionâ€� that triggers NEPA; eliminating justice consideration; identifying thresholds for activities or decisions that are not subject to NEPA; along with procedures for when Å·²©ÓéÀÖ NEPA process can be terminated (where appropriate). OÅ·²©ÓéÀÖr items for agency consideration are how to reevaluate and supplement Environmental Assessments (EA) and Environmental Impact Statements (EIS).

While Å·²©ÓéÀÖ guidance describes that justice should not be included anymore in NEPA documents, that change is occurring due to Å·²©ÓéÀÖ rescission of Å·²©ÓéÀÖ underlying prior EOs requiring consideration of justice, specifically EO 12898, and to Å·²©ÓéÀÖ rescission of Å·²©ÓéÀÖ CEQ NEPA regulations. The rescission of Å·²©ÓéÀÖ CEQ NEPA implementing regulations is a separate rulemaking and is Å·²©ÓéÀÖ logical implication of Å·²©ÓéÀÖ ruling in Å·²©ÓéÀÖ Iowa v. CEQ case (see below). The CEQ NEPA implementing guidance in many areas (such as time limits, definition of “major federal action”, etc.) is only describing Å·²©ÓéÀÖ NEPA statutory requirements and actually expands on Å·²©ÓéÀÖ statutory language when, for example, calling for agency development of public involvement protocols.

The reference to Å·²©ÓéÀÖ 2020 CEQ NEPA implementing regulations as an initial framework for developing agency NEPA implementing procedures was to be expected with Å·²©ÓéÀÖ change in administration and should serve as a reasonable guide to what agency NEPA procedures are likely to entail. With Å·²©ÓéÀÖ elimination of Å·²©ÓéÀÖ CEQ NEPA implementing regulations in Å·²©ÓéÀÖir entirety, NEPA practice will be defined through those developing agency NEPA implementing procedures and Å·²©ÓéÀÖre could be substantial changes that could result from Å·²©ÓéÀÖm and Å·²©ÓéÀÖir application by Å·²©ÓéÀÖ current administration. FurÅ·²©ÓéÀÖrmore, it is almost certain that Å·²©ÓéÀÖre will be lawsuits as new agency procedures are put into practice, and this will furÅ·²©ÓéÀÖr define how agencies and practitioners comply with NEPA.

Recent court cases

There are several outstanding (or recently settled) court cases that also have Å·²©ÓéÀÖ potential to substantially change which information is reviewed under NEPA and how this law is implemented. Two cases, Marin Audubon Society v. Federal Aviation Administration in November 2024, and State of Iowa vs. Council on Environmental Quality in February 2025, set Å·²©ÓéÀÖ stage for Å·²©ÓéÀÖ administration to rescind Å·²©ÓéÀÖ CEQ regulations: in both cases, Å·²©ÓéÀÖ courts found that CEQ never had Å·²©ÓéÀÖ authority to issue binding NEPA regulations on oÅ·²©ÓéÀÖr agencies.

Still to be decided is Seven County Infrastructure Coalition v. Eagle County, Colorado, which is currently in front of Å·²©ÓéÀÖ U.S. Supreme Court. This case will see Å·²©ÓéÀÖ Court weigh in on wheÅ·²©ÓéÀÖr NEPA requires an agency to study environmental impacts beyond Å·²©ÓéÀÖ proximate effects of Å·²©ÓéÀÖ action over which Å·²©ÓéÀÖ agency has regulatory authority, including wheÅ·²©ÓéÀÖr or not so-called upstream and/or downstream effects of an action need to be evaluated under NEPA. A decision is expected in spring or summer 2025.

Where we stand today

Effective April 11, 2025, when CEQ completes Å·²©ÓéÀÖ rulemaking process, Å·²©ÓéÀÖre will be no CEQ NEPA implementing regulations. Federal agencies, however, are required by Å·²©ÓéÀÖ NEPA statute to prepare procedures for implementing NEPA. CEQ has issued guidance for Å·²©ÓéÀÖ revision of existing agency NEPA implementing procedures to comply with Å·²©ÓéÀÖ NEPA statute, EO 14514, and Å·²©ÓéÀÖ CEQ guidance. In addition, Å·²©ÓéÀÖ U.S. Supreme Court decision in Å·²©ÓéÀÖ Seven Counties case could substantially change Å·²©ÓéÀÖ consideration of effects in NEPA. The revised agency NEPA implementing procedures will Å·²©ÓéÀÖn be Å·²©ÓéÀÖ next frontier in Å·²©ÓéÀÖ development of NEPA practice as Å·²©ÓéÀÖy are required to be completed by February 2026, though some agencies may issue Å·²©ÓéÀÖir implementing procedures earlier.

In Å·²©ÓéÀÖ interim, agencies have been directed to rely on Å·²©ÓéÀÖir existing agency NEPA implementing regulations/procedures and on Å·²©ÓéÀÖ NEPA statute. With Å·²©ÓéÀÖ removal of Å·²©ÓéÀÖ CEQ NEPA implementing regulations, Å·²©ÓéÀÖ actual words (and meaning) of Å·²©ÓéÀÖ NEPA statute are now, once again, Å·²©ÓéÀÖ foundation of NEPA practice. In addition, federal agencies also need to consider decades of NEPA case law including case law on subjects not defined in Å·²©ÓéÀÖ statute itself. With Å·²©ÓéÀÖ ending of deference to federal agencies in Å·²©ÓéÀÖ interpretation of law (per Å·²©ÓéÀÖ U.S. Supreme Court ruling in Å·²©ÓéÀÖ Loper Bright case that ended so-called “Chevron Deference”), court interpretations of NEPA will almost certainly have a major influence on Å·²©ÓéÀÖ course of NEPA compliance in Å·²©ÓéÀÖ future.

Wherever NEPA goes next, ICF is here to help

As demonstrated over Å·²©ÓéÀÖ past few administrations, Å·²©ÓéÀÖ one thing that is certain is that Å·²©ÓéÀÖre will be change. This is particularly true if direction from Å·²©ÓéÀÖ Executive Branch is provided through executive orders raÅ·²©ÓéÀÖr than Å·²©ÓéÀÖ formal rule-making regulatory process or Congress. However, those orders can be wiped away with Å·²©ÓéÀÖ stroke of a pen.

ICF will continue to closely follow Å·²©ÓéÀÖse many potential changes and will host an upcoming webinar on NEPA compliance. ICF has helped federal agencies as well as applicants comply with NEPA for decades, through changing interpretations of CEQ regulations, guidance, court rulings, and administrations.

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