The Nickel Report

In recent years, there have been major shifts involving the National Environmental Policy Act (NEPA) and its implementing regulations as a result of statutory amendments, court decisions, and the Trump Administration’s efforts to streamline federal permitting. For decades, NEPA’s sparse statutory language provided few specifics on NEPA implementation, and the regulatory framework was based on implementing regulations promulgated by the Council on Environmental Quality (CEQ) and judicial precedent interpreting those regulations. As a result of its requirements and challenges questioning agency compliance with those requirements, critical projects were slowed or abandoned due to NEPA review timeframes and the threat of litigation from project opponents.

In 2023, Congress enacted the Fiscal Responsibility Act of 2023, Pub. L. 118-5, 137 Stat. 10 (Jun. 3, 2023), codified at 42 U.S.C. § 4321 et seq. (2023 NEPA Amendments), which amended NEPA with provisions aimed at reducing delays and increasing efficiency. Among other things, the 2023 NEPA Amendments created a framework for federal agencies to adopt other agencies’ categorical exclusions (CEs), made explicit that a NEPA analysis is limited to reasonably foreseeable effects, imposed time limits for issuing environmental documents, and clarified that agency financing may not constitute a “major Federal action” that requires NEPA review where the agency does not exercise substantial control over the project.

Further bolstering a “course correction,” in May 2025, the Supreme Court issued Seven County Infrastructure Coalition v. Eagle County, Colorado, 145 S. Ct. 1497 (2025), which clarified the scope of review and deference to be afforded to agency decision-making under NEPA. The Seven County Court lamented the fact that NEPA has been used as a tool to prevent new infrastructure projects and emphasized that NEPA does not impose substantive constraints on an agency’s ultimate decision to approve or support a project. “Simply stated, NEPA is a procedural cross-check, not a substantive roadblock. The goal of the law is to inform agency decision-making, not to paralyze it.” Id. at 1507. As a purely procedural statute, agencies are to be afforded a wide berth in determining how to comply with NEPA based on what information is useful to their review. In the wake of Seven County, lower courts generally have been quick to recognize NEPA’s limited role as a procedural statute and highly deferential to agency decision-making about the level of NEPA review required for a project.

CEQ under the Trump Administration has pursued sweeping NEPA reform. For much of NEPA’s existence, it was implemented by regulations promulgated by CEQ as supplemented by administrative agencies’ implementing regulations and guidance. However, as a result of recent judicial precedent and changes in policy,^[1] in February 2025, CEQ rescinded its regulations.90 Fed. Reg. 10,610 (Feb. 25, 2025) (interim final rule seeking public comment); 91 Fed. Reg. 618 (Jan. 8, 2026) (final rule).

In lieu of binding NEPA implementation regulations, CEQ has issued guidance and directed agencies to establish or revise their own NEPA implementing procedures consistent with the Administration’s guidance, the 2023 NEPA Amendments, and case law. See CEQ, Implementation of the National Environmental Policy Act (Sept. 29, 2025) (CEQ Sept. 2025 Guidance). The CEQ guidance provided a template for agencies to follow in updating their own procedures and policies. See CEQ Sept. 2025 Guidance, Appendix 1.

Numerous agencies have issued updates, in the form of interim final rules, proposed rules, or updated guidance, to their NEPA implementing regulations. Consistent with CEQ’s directives, these changes are focused on consistency with the 2023 NEPA Amendments, Seven County, and CEQ guidance. Many of these changes seek to streamline review, impose deadlines, and avoid duplicative or onerous requirements.

The following agencies have issued final or interim final rules updating their NEPA regulations:

• Department of the Interior (DOI). See National Environmental Policy Act Implementing Regulations, 90 Fed. Reg. 29,498 (July 3, 2025) (interim final rule); 91 Fed. Reg. 8,738 (Feb. 24, 2026) (final rule).
• Federal Energy Regulatory Commission (FERC). See Removal of References to the Council of Environmental Quality’s Rescinded Regulations, 90 Fed. Reg. 29,423 (July 3, 2025).
• Department of Energy (DOE). See Revision of National Environmental Policy Act Implementing Procedures, 90 Fed. Reg. 29,676 (July 3, 2025).
• Department of the Army Corps of Engineers (Corps). See Procedures for Implementing NEPA; Removal, 90 Fed. Reg. 29,461 (July 3, 2025); Procedures for Implementing NEPA; Processing of Department of the Army Permits, 90 Fed. Reg. 29,465 (July 3, 2025).
• Department of Agriculture (USDA). See National Environmental Policy Act, 90 Fed. Reg. 29,632 (July 3, 2025).
• Department of Transportation (DOT): Federal Highway Administration (FHA), Federal Railroad Administration (FRA), and Federal Transit Administration (FTA). See Revision of National Environmental Policy Act Regulations, 90 Fed. Reg. 29,426 (July 3, 2025).
• DOT, National Highway Traffic Safety Administration (NHTSA). See Recission of NHTSA’s 1975 Procedures for Considering Environmental Impacts, 90 Fed. Reg. 29,507 (July 3, 2025).
• Department of the Air Force (DAF). See Removal of Environmental Impact Analysis Process (EIAP) Regulation, 90 Fed. Reg. 28,021 (July 1, 2025).
• Department of the Army (DA). See Environmental Analysis of Army Actions (AR 200–2), 90 Fed. Reg. 29,450 (July 3, 2025).
• Department of the Navy (DON). See Recission of Procedures for Implementing the National Environmental Policy Act (NEPA), 90 Fed. Reg. 29,453 (July 3, 2025).
• Department of Commerce (DOC), Economic Development Administration (EDA). See Amendment to Environment Regulation, 90 Fed. Reg. 29417 (July 3, 2025).

Several agencies have also issued NEPA guidance, including FERC, DOE, the Department of Defense (DOD), DOI, EDA, the National Oceanic and Atmospheric Administration (NOAA), the National Telecommunications and Information Administration (NTIA), the National Institute of Standards and Technology (NIST), First Responder Network Authority, DOT, and FAA. See 91 Fed. Reg. 618, 620 (Jan. 8, 2026).

Other agencies, such as EPA, are still in the process of revising their NEPA regulations and procedures.

There may be challenges to CEQ’s final rule and individual agencies’ NEPA rulemakings and procedures. For example, suit has already been filed challenging DOI’s Interim Final Rule. See Center for Biological Diversity v. U.S. Dep’t of Interior, No. 3:25-cv-10793 (N.D. Cal. filed Dec. 18, 2025).

More changes may be on the way. In December 2025, the US House of Representatives passed the Standardizing Permitting and Expediting Economic Development Act (SPEED Act or Act), the stated intent of which is to amend NEPA by further clarifying ambiguous provisions and facilitating a more efficient, effective, and timely environmental review process. The bill is currently pending in the Senate.

In light of these developments, it will be important for project proponents to monitor changes to agency NEPA regulations and understand the corresponding implications for their activities and projects.

[1] In November 2024, a divided panel of the D.C. Circuit ruled that CEQ lacks authority to promulgate binding regulations implementing NEPA. Marin Audubon Soc’y v. FAA, 121 F.4th 902, 908–15 (D.C. Cir. 2024); see also Iowa v. CEQ, 765 F.Supp.3d 859 (D.N.D. 2025) (enjoining the Biden Administration’s NEPA Phase 2 rule in reliance on Marin).  Additionally, in January 2025, President Trump revoked a 1977 Executive Order instructing CEQ to issue NEPA regulations and directed CEQ to propose rescinding its regulations. See Exec. Order No. 14,154 § 5, 90 Fed. Reg. 8353, 8355 (Jan. 20, 2025) (revoking Executive Order 11,991, 42 Fed. Reg. 26,967 (May 25, 1977)).