U.S. Department of the Interior issues new NEPA regulations recognizing local governments as cooperating agencies

Key Takeaways

On February 23, the U.S. Department of the Interior (DOI) announced a final rule updating the Department’s regulations for implementing the National Environmental Policy Act (NEPA; P.L. 91-190). In a step forward for counties, the final rule reinstates provisions that name local government agencies as cooperating agencies during the NEPA environmental review process.

During the rulemaking process, NACo submitted comments to DOI urging the Department to uphold its commitment to cooperative federalism. In the explanatory statement for the new NEPA rules, DOI cited NACo’s letter as part of its decision to reinstitute regulatory guidance on identifying cooperating agencies. The inclusion of local governments as cooperating agencies in DOI’s regulations ensures that counties will be given a seat at the table during the environmental review process for land management plans, infrastructure projects and more. 

Background

On January 20, 2025, the Trump Administration released E.O. 14154, Unleashing American Energy, which directed federal agencies to reevaluate their NEPA regulations. Additionally, the Council on Environmental Quality, in response to E.O. 14154, rescinded its NEPA regulations, creating uncertainty for counties as federal agencies developed and issued new rules. 

On July 3, 2025, DOI issued interim NEPA regulations and began a public comment period. At that time, DOI’s proposed rule removed existing guidance on the cooperating agency process and transferred it to the departmental handbook, where it is not legally enforceable. NACo submitted comments urging DOI to reinstate the cooperating agency language in its final rule. Several other agencies also issued interim final rules at that time.

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Impact on Counties

DOI’s final rule reinstates 43 CFR 46.225, which directs DOI to consider local governments that have jurisdiction by law or special expertise as cooperating agencies. As cooperating agencies, counties are part of the environmental review process from the beginning, ensuring that local considerations and impacts are given a seat at the table. All NEPA reviews conducted by DOI agencies – including the Bureau of Land Management, National Park Service, U.S. Fish and Wildlife Service and the Bureau of Reclamation – will use this final rule to guide their procedures.

The inclusion of this provision in DOI’s rulemaking is a meaningful step towards regulatory consistency and clarity for local governments. County involvement in NEPA reviews produces stronger environmental analysis and increases intergovernmental trust, and local governments are key partners in federal permitting decisions. 

DOI did not reinstate 43 CFR 46.230, which previously detailed the responsibilities of a cooperating agency. Guidance on how to work with local governments during the NEPA process remains in the departmental handbook, which agency officials use but does not carry the same weight as a rule.

Next Steps

Other federal agencies that are developing new NEPA regulations – including the Departments of Agriculture, Energy, Transportation and the U.S. Army Corps of Engineers – have yet to publish their final rules. Counties urge these agencies to ensure consistent cooperative federalism across federal regulations by mirroring DOI’s language on identifying cooperating agencies in their own rulemakings.

Additionally, NACo supports legislative measures to codify counties’ role as cooperating agencies through bills such as the SPEED Act (H.R. 4776), which would clarify in statute that counties, parishes, boroughs should be involved in the federal environmental review process. NACo will continue to update counties on regulatory and legislative developments impact their role in the federal permitting process.