CEQ issues interim final rule on implementing NEPA regulations

Key Takeaways

On February 25, the Council on Environmental Quality (CEQ) issued an interim final rule to remove existing federal regulations on P.L. 91-190, the National Environmental Policy Act (NEPA), and rescind CEQ’s authority to promulgate NEPA regulations. CEQ issued a memo on February 19 asserting that any federal agencies implementing regulations should prioritize streamlining and expediting NEPA’s permitting process. The rule is effective April 11, 2025.

The basis for its rule was a lack of statutory authority to issue NEPA regulations that constrain federal agencies. CEQ’s rule comes in the wake of Marin Audubon Society v. Federal Aviation Administration, where the D.C. Circuit found that CEQ did not have the power to issue mandatory NEPA regulations on other federal agencies.

What is NEPA?

Enacted in 1970, NEPA established the national environmental review process and established CEQ within the Executive Office of the President to advise the President and review federal programs’ environmental impacts. NEPA requires federal agencies to conduct environmental reviews on federally funded projects that could impact the environment. 

President Carter issued Executive Order 11991 in 1977 that directed CEQ to issue NEPA regulations on federal agencies, granting the agency NEPA implementing authority. President Trump’s rescission of President Carter’s order through Executive Order 14154 reverses 48 years of regulatory authority.

How would the interim final rule impact counties?

Counties have an explicit interest in changes to the NEPA process as intergovernmental partners with federal agencies. The NEPA implementation rules prior to CEQ’s interim rule often presented administrative burdens and delays for counties due to coordinating difficulties across federal agencies. NACo supports meaningful reform to the federal environmental review and permitting process. However, the interim final rule and the removal of CEQ regulations on NEPA may present potential challenges for counties, including: 

• Lack of Standardization: With each individual agency responsible for NEPA regulations, counties may be impacted by delays due to a lack of standardization. Without a standardized implementation process, federal agencies might duplicate NEPA regulations, causing further complications.
• Delays: The overhaul of 48 years of environmental framework might delay federally funded projects in counties. Federal agencies will have to adjust to new methods in complying with NEPA without CEQ’s guidance.
• Legal Complications: Current NEPA regulations issued by CEQ could face legal battles due to the rescission of CEQ’s issuing authority, causing delays to federal projects in counties. 

Counties encourage the federal government to consult with local governments on changes to the NEPA review process and provide clarity on any future implementation.