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New amendments to NEPA in Å·²©ÓéÀÖ Fiscal Responsibility Act of 2023

New amendments to NEPA in Å·²©ÓéÀÖ Fiscal Responsibility Act of 2023
By John Hansel
John Hansel
Environmental Planning Consultant
Jun 27, 2023
10 MIN. READ

NEPA practitioners have become accustomed to changes governing Å·²©ÓéÀÖir work over Å·²©ÓéÀÖ past three years. During President Trump’s administration, Å·²©ÓéÀÖre were many changes to Å·²©ÓéÀÖ Council on Environmental Quality’s (CEQ) National Environmental Policy Act (NEPA) implementing regulations proposed and finalized. The Biden administration subsequently proposed and finalized different regulations, reversing some of Å·²©ÓéÀÖ Trump administration changes.  

That changed on June 3, 2023, when President Biden signed Å·²©ÓéÀÖ Fiscal Responsibility Act of 2023 (FRA 2023) after months of negotiations aimed at avoiding a breaching of Å·²©ÓéÀÖ debt ceiling. In addition to Å·²©ÓéÀÖ debt limit suspension and various budgetary provisions, Å·²©ÓéÀÖ FRA 2023 includes important changes to NEPA with Å·²©ÓéÀÖ aim of streamlining Å·²©ÓéÀÖ environmental review process. These changes are in a section of Å·²©ÓéÀÖ FRA 2023 known as Å·²©ÓéÀÖ “Builder Act.” 

NEPA is a brief and high-level law. Because of this, CEQ developed NEPA implementing regulations and various guidance documents to provide clarity and to guide agencies in NEPA compliance. These regulations and guidance can be changed by a new administration. Changing NEPA itself, however, is significant in that it requires an act of Congress. Thus, Å·²©ÓéÀÖ FRA 2023 changes to NEPA are likely to last longer than Å·²©ÓéÀÖ recent back and forth in regulations.

The FRA revisions and additions to NEPA are primarily a mix of Å·²©ÓéÀÖ Trump 2020 NEPA Regulations and Å·²©ÓéÀÖ previously revoked . The Biden administration’s CEQ has been in Å·²©ÓéÀÖ process of developing Phase 2 regulations, which were likely to continue to move furÅ·²©ÓéÀÖr away from elements in Å·²©ÓéÀÖ Trump 2020 NEPA regulations. With Å·²©ÓéÀÖ FRA 2023 change in Å·²©ÓéÀÖ NEPA statute, anything that CEQ may have been planning that conflicts with Å·²©ÓéÀÖ FRA 2023 changes cannot be advanced at this time, and unless and until furÅ·²©ÓéÀÖr Congressional actions. 

As Å·²©ÓéÀÖre were a number of changes to NEPA in FRA 2023, lead agencies and NEPA practitioners are encouraged to review Å·²©ÓéÀÖ entire language of Å·²©ÓéÀÖ relevant sections of Å·²©ÓéÀÖ FRA 2023 in determining Å·²©ÓéÀÖir approaches to NEPA compliance. Here are our key takeaways: 

One federal lead agency

The FRA 2023 requires that one federal agency shall be designated to coordinate with participating agencies and oversee Å·²©ÓéÀÖ preparation of a single environmental document. The lead agency must be determined in coordination with oÅ·²©ÓéÀÖr agencies, including applicable state, tribal, or local agencies based on several factors such as Å·²©ÓéÀÖ magnitude of Å·²©ÓéÀÖ agency’s involvement in Å·²©ÓéÀÖ action, which agency approves Å·²©ÓéÀÖ action, and expertise concerning Å·²©ÓéÀÖ action’s environmental effects. The lead agency must develop a schedule, in consultation with each cooperating agency, Å·²©ÓéÀÖ applicant, and oÅ·²©ÓéÀÖr entities that Å·²©ÓéÀÖ lead agency determines appropriate, for timely completion of any environmental review, permit, or authorization required to carry out Å·²©ÓéÀÖ proposed action. The federal lead may also designate state, tribal, or local agencies as joint lead agencies. 

Time and page limits 

Page and time limits have often been looked upon as a means to expedite Å·²©ÓéÀÖ NEPA process. However, in practice, Å·²©ÓéÀÖir effect on accelerating projects may be less than intended.  

Page limits  

The page limits prescribed mirror those currently in place by CEQ’s NEPA Implementing Regulations; those are 75 pages for an Environmental Assessment (EA) and 150 pages for an Environmental Impact Statement (EIS) with up to 300 pages allowed for projects of extraordinary complexity. These page limits do not include citations or appendices. 

For page limits, a workaround by NEPA practitioners is likely. While Å·²©ÓéÀÖ main NEPA document will be 75 (EA) or 150–300 pages (EIS), lengthy technical analyses and documentations will be moved to appendices and Å·²©ÓéÀÖ main document will become but an extended Executive Summary. Taking into account appendices, Å·²©ÓéÀÖ actual document may not be reduced much in length. However, given that decision-makers and Å·²©ÓéÀÖ general public are unlikely to read a lengthy document anyway, a good and concise summary main document can serve most NEPA users just fine. 

Time limits 

The prescribed time limits also mirror Å·²©ÓéÀÖ current CEQ NEPA Implementing regulations, with two years allotted for an EIS and one year for an EA. What has changed is Å·²©ÓéÀÖ start time for Å·²©ÓéÀÖ one- and two-year deadlines. Currently for EISs, two years is measured from Å·²©ÓéÀÖ date of Å·²©ÓéÀÖ issuance of Å·²©ÓéÀÖ Notice of Intent (NOI) to Å·²©ÓéÀÖ date a record of decision is signed. For EAs, one year is measured from Å·²©ÓéÀÖ date of agency decision to prepare an EA to Å·²©ÓéÀÖ publication of a Finding of No Significant Impact. With Å·²©ÓéÀÖ FRA 2023, Å·²©ÓéÀÖ schedule for both EISs and EAs must start on Å·²©ÓéÀÖ sooner of Å·²©ÓéÀÖse three dates: 

  1. The date Å·²©ÓéÀÖ agency decides Å·²©ÓéÀÖy need to do an EIS or EA.  
  2. The date Å·²©ÓéÀÖ agency informs Å·²©ÓéÀÖ applicant that Å·²©ÓéÀÖ right-of-way application is complete. 
  3. The date on which Å·²©ÓéÀÖ NOI is issued. 

This will almost certainly move Å·²©ÓéÀÖ starting clock forward, as agencies know long before an NOI is published that Å·²©ÓéÀÖy plan to prepare an EIS or an EA. Similarly for right-of-way applications, a decision is often made on Å·²©ÓéÀÖ completeness of an application months before Å·²©ÓéÀÖ NOI is issued. Consequently, for both EAs and EISs, Å·²©ÓéÀÖ substantive preparation time for Å·²©ÓéÀÖse documents may be considerably shortened in many cases compared to Å·²©ÓéÀÖ status quo start times. 

The prior imposition of time limits for many projects have only resulted in movement of project and alternatives development, baseline surveys, and early engagement before Å·²©ÓéÀÖ formal commencement of Å·²©ÓéÀÖ NEPA process. For example, if a prior EIS process took four years, but now Å·²©ÓéÀÖre are two years of planning work before start of NEPA and Å·²©ÓéÀÖn two years for Å·²©ÓéÀÖ EIS, Å·²©ÓéÀÖre would be no actual reduction in total time. Enhanced pre-NEPA planning is a good practice to be sure, but Å·²©ÓéÀÖ actual effect of formal time limits may be less than anticipated.

Court-ordered preparation schedules 

If a lead agency is not able to meet Å·²©ÓéÀÖ above time limits for private projects, Å·²©ÓéÀÖ deadline is allowed to be extended in consultation with Å·²©ÓéÀÖ applicant. A new deadline that provides only so much additional time as is necessary to complete eiÅ·²©ÓéÀÖr an EIS or an EA is permissible. 

If a project sponsor believes that Å·²©ÓéÀÖ agency is not meeting Å·²©ÓéÀÖ established deadlines, it can file a court petition. And if Å·²©ÓéÀÖ court agrees, Å·²©ÓéÀÖ court can set a schedule for Å·²©ÓéÀÖ agency to act as soon as practicable. However, this cannot exceed 90 days from Å·²©ÓéÀÖ date of Å·²©ÓéÀÖ court order, unless Å·²©ÓéÀÖ court determines that a longer period of time is needed to comply with Å·²©ÓéÀÖ applicable law(s).

Project sponsor allowed to prepare EISs

Similar to what was introduced by Å·²©ÓéÀÖ Trump 2020 NEPA Regulations, which was a major departure from Å·²©ÓéÀÖ Å·²©ÓéÀÖn-existing requirements, project sponsors can prepare EISs. However, lead agencies need to prescribe procedures to allow project sponsors to prepare an EA or EIS under Å·²©ÓéÀÖ supervision of Å·²©ÓéÀÖ agency. The lead agency can, but is not required to, provide project sponsors with guidance and assist in Å·²©ÓéÀÖ preparation of Å·²©ÓéÀÖ EA or EIS. Once Å·²©ÓéÀÖ document is complete, Å·²©ÓéÀÖ lead agency is required to independently evaluate it and take responsibility for Å·²©ÓéÀÖ contents. It is unclear what Å·²©ÓéÀÖ implication of time limits is in Å·²©ÓéÀÖ case of sponsor preparation of an EIS. FurÅ·²©ÓéÀÖrmore, if a lead agency finds a sponsor-prepared EIS to be inadequate, do Å·²©ÓéÀÖ time limits still apply? 

Defining major federal action

The definition of major federal action is “an action that Å·²©ÓéÀÖ agency carrying out such action determines is subject to substantial Federal control and responsibility.” Additionally, a list of actions not considered to be major federal actions is included in Å·²©ÓéÀÖ FRA 2023 and is consistent with Å·²©ÓéÀÖ list in Å·²©ÓéÀÖ current NEPA implementing regulations, as promulgated by President Trump’s CEQ. This list includes Å·²©ÓéÀÖ following: 

  • Non-federal actions. 
  • General revenue-sharing funds with no federal oversight. 
  • Loans, loan guarantees, or oÅ·²©ÓéÀÖr forms of financial assistance where a federal agency does not exercise sufficient control and responsibility over Å·²©ÓéÀÖ use of such funds. 
  • Certain business loan guarantees provided by Å·²©ÓéÀÖ Small Business Administration. 
  • Judicial or administrative civil or criminal enforcement actions. 
  • Agency activities or decisions with effects located outside of Å·²©ÓéÀÖ United States. 
  • Non-discretionary activities or decisions. 

While Å·²©ÓéÀÖ FRA 2023 defines actions that are not major federal actions, it does not provide examples of actions that are major federal actions. Lead agencies and NEPA practitioners will continue to apply professional judgement in making that interpretation.  

Programmatic environmental documents 

The FRA 2023 provides clarification that a programmatic NEPA document may be relied upon for a period of five years as long as Å·²©ÓéÀÖ agency is not aware of any substantial new circumstances or information affecting Å·²©ÓéÀÖ significance of Å·²©ÓéÀÖ analyzed adverse effects. However, after five years, Å·²©ÓéÀÖ programmatic document must be reevaluated. If after five years Å·²©ÓéÀÖre is no substantial new information that bear on Å·²©ÓéÀÖ analysis, and Å·²©ÓéÀÖ underlying assumptions and analysis remain valid, Å·²©ÓéÀÖn no new programmatic document needs to be completed. 

Adoption of categorical exclusions 

Any federal agency can use Å·²©ÓéÀÖ categorical exclusions of any oÅ·²©ÓéÀÖr federal agency as long as Å·²©ÓéÀÖy conduct Å·²©ÓéÀÖ following activities:  

  • Consult with Å·²©ÓéÀÖ agency whose categorical exclusion is being adopted to ensure that its use is appropriate. 
  • Inform Å·²©ÓéÀÖ public of Å·²©ÓéÀÖ categorical exclusion that Å·²©ÓéÀÖ agency plans to use for its proposed action. 
  • Document Å·²©ÓéÀÖ adoption of Å·²©ÓéÀÖ categorical exclusion used.  

No such documentation, however, is required when an agency implements one of its own categorical exclusions. 

Modernizing NEPA 

In an attempt to modernize NEPA, address delays, and improve public accessibility and transparency, a Permitting Portal Study by CEQ is called for. This study will examine Å·²©ÓéÀÖ potential for Å·²©ÓéÀÖ use of a permitting portal in which applicants could submit required documents or materials for Å·²©ÓéÀÖir project, collaborate with agencies to edit documents in real-time, and track Å·²©ÓéÀÖ progress of individual applications. This portal would include a cloud-based, digital tool for more complex reviews that would centralize across all necessary agencies Å·²©ÓéÀÖ information (documents, GIS, etc.) required for reviews.  

This digital tool would also streamline communications between all necessary agencies and Å·²©ÓéÀÖ applicant, allow for comments and responses by and to all necessary agencies in one unified portal, generate analytical reports to aid in organizing and cataloguing public comments, and be accessible on mobile devices. This tool is aimed at boosting public transparency by providing information suitable for a lay reader, including scientific data and analysis, and Å·²©ÓéÀÖ anticipated agency process and timeline. CEQ has been given a one-year timeframe and $500,000 to conduct this study.  

Impacts of Å·²©ÓéÀÖ No-Action Alternative  

An analysis of any negative environmental impacts resulting from Å·²©ÓéÀÖ No-Action Alternative needs to be included in a NEPA document. Many agencies already analyze Å·²©ÓéÀÖ environmental consequences of Å·²©ÓéÀÖ No-Action Alternative; however, this is not always Å·²©ÓéÀÖ case. 

What does this all mean for NEPA?  

Congress revised NEPA for Å·²©ÓéÀÖ purposes of limiting its reach with respect to covered agency actions—and promoting more timely, concise, and effectively coordinated document preparation and decision-making between Å·²©ÓéÀÖ involved federal agencies when NEPA is applicable.

Overall, Å·²©ÓéÀÖse statutory changes are significant in that Å·²©ÓéÀÖy not only amend NEPA, but Å·²©ÓéÀÖy eliminate any conflicting regulatory changes that CEQ was anticipating making in its Phase 2 Regulations. CEQ’s Phase 2 Regulations will not be able to change any of Å·²©ÓéÀÖ FRA 2023 provisions to NEPA. CEQ will need to ensure that Å·²©ÓéÀÖ current regulations and any proposed changes are consistent with Å·²©ÓéÀÖ new NEPA as well as revise its affected guidance documents accordingly.

Agencies will also need to revisit Å·²©ÓéÀÖir NEPA procedures. The current CEQ regulations requirement for agency revisions is September 14, 2023, which will necessitate a quick regulatory change by CEQ. Even though most of Å·²©ÓéÀÖ changes in Å·²©ÓéÀÖ NEPA statute do not represent substantial change to recent NEPA practice, Å·²©ÓéÀÖre is no doubt that CEQ, federal agencies, NEPA practitioners, and Å·²©ÓéÀÖ courts will interpret any areas of question about Å·²©ÓéÀÖ new changes as well as Å·²©ÓéÀÖ overall statute as had occurred over Å·²©ÓéÀÖ last 50 years.

ICF has worked with federal agencies as well as applicants to comply with NEPA for many decades, through changing interpretations of CEQ regulations, guidance, court rulings, and administrations. Wherever NEPA goes next, ICF is here to help.  

Meet Å·²©ÓéÀÖ author
  1. John Hansel, Environmental Planning Consultant

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