CSG Law Alert: Proposed Interim Rule Would Rescind All NEPA Regulations
The National Environmental Policy Act (“NEPA”), enacted in 1969 and one of the first federal environmental laws, requires federal agencies to assess the environmental impacts of proposed actions before making decisions, promoting environmental protection and informed public involvement. On June 3, 2023, President Biden signed into law the Fiscal Responsibility Act of 2023 (“FRA”), which amended NEPA. Effective on July 1, 2024, the White House Council on Environmental Quality, the entity charged with implementing NEPA (“CEQ”), promulgated revised NEPA regulations to implement the FRA. The intent of the FRA and the new regulations was to increase efficiency and to implement policies to better assess environmental impacts of proposed projects.
On January 20, 2025, President Trump issued Executive Order 14154 directing agencies to rescind all regulations deemed unduly burdensome on domestic energy production. On February 25, 2025, the CEQ issued an interim final rule rescinding all NEPA regulations, leaving individual agencies with the task of interpreting NEPA requirements for proposed projects. The comment period for the interim final rule closes on March 27, 2025, and the interim final rule will become effective on April 11, 2025. The guidance accompanying the new rule, MEMORANDUM FOR HEADS OF FEDERAL DEPARTMENTS AND AGENCIES, dated February 19, 2025 (the “Guidance”), requires other agencies to revise their regulations implementing NEPA within one year to conform with the Trump Administration’s objectives. In the interim, the Guidance directs agencies to consider the rescinded rules, other than considering environmental justice concerns, in reviewing projects until implementing new procedures.
The interim final rule will face legal challenges. Challengers will argue that the regulations violated the Administrative Procedure Act by bypassing the proposed rule and public comment phases before promulgation. Regardless of the eventual outcome of those challenges, the rescission of the regulations will likely result in confusion in the short term as each agency determines how to implement NEPA, which may end up delaying projects requiring NEPA review.