Demystifying changes to NEPA: Your questions answered
The National Environmental Policy Act (NEPA) is a significant environmental law in the United States, enacted on January 1, 1970. NEPA requires federal agencies to assess the environmental effects of their proposed actions and to consider alternatives before making decisions, including evaluating the impacts associated with construction projects, land and asset management, financial assistance and grants, adoption of plans and programs, and the approval of licenses and leases.
On April 11, 2025, the Council on Environmental Quality (CEQ) published a final interim rule in the Federal Register to rescind its National Environmental Policy Act (NEPA) implementing regulations (40 Code of Federal Regulations [CFR] Parts 1500 – 1508).
AECOM has been fielding questions from public and private sector clients about the implications of CEQ’s action. We respond to these questions in this article to demystify this dynamic area of the primary federal law governing agencies’ responsibilities for environmental review and approval of programs and projects under federal jurisdiction.
- Why did CEQ take this action?
CEQ rescinded the NEPA regulations in response to President Donald Trump’s Executive Order (EO) 14154, Unleashing American Energy, issued on January 20, 2025. EO 14154 directed CEQ to propose rescinding its NEPA regulations and to provide guidance to agencies on implementing NEPA and coordinate the revision of agency-level NEPA implementing regulations for consistency. In addition, EO 14154 revoked several other EOs, including EO 11991, Relating to Protection and Enhancement of Environmental Quality, issued by President Carter on May 24, 1977. EO 11991 had previously directed CEQ to issue NEPA implementing regulations to federal agencies and required those agencies to comply with them.
- Does CEQ’s rescission of its NEPA regulations eliminate NEPA altogether?
No, the rescission of the CEQ regulations related to NEPA does not mean that the NEPA statute (42 United States Code [USC] 4321 et seq.) is being eliminated. What is happening is the specific NEPA implementing rules established by CEQ are being rescinded.
NEPA itself is a law passed by Congress and cannot be eliminated by executive action or regulatory changes alone. So, while the rescission of the CEQ regulations could change how NEPA is applied, NEPA as a law remains intact. Further, federal agencies should continue to follow agency-specific NEPA implementing regulations and procedures consistent with the NEPA statute.
- Now that CEQ regulations are rescinded, what remains to guide compliance with NEPA?
As noted above, the NEPA statute remains unchanged. Further, federal agencies should continue to follow their agency-specific NEPA implementing regulations and procedures. Other available resources include:
- CEQ’s interim guidance on implementing NEPA in response to EO 14154, issued on February 19, 2025.
- NEPA guidance issued by CEQ and other federal agencies.
- Case law.
- EO 14154 also directed CEQ to coordinate the revision of agency-level NEPA implementing regulations for consistency or establish them if they do not have them by February 19, 2026. How does this affect environmental review under NEPA, including projects currently under NEPA review?
While these revisions are underway, CEQ has directed agencies to not delay pending or ongoing NEPA analyses. Federal agencies are to continue to follow their own NEPA regulations, procedures, and practices in accordance with NEPA and consistent with EO 14154 and CEQ’s interim guidance. Further, while CEQ rescinded their NEPA implementing regulations, they are encouraging agencies to still consider relying on their regulations for ongoing NEPA reviews and use the 2020 CEQ NEPA implementing rule as guidance when developing or revising agency-specific NEPA implementing procedures.
- Are there other changes to how NEPA reviews are being applied?
Yes. For example, through EO, President Trump has revoked EOs related to environmental justice (e.g., EO 14096 and EO 12898), climate change (e.g., EO 13990), and floodplain protection (e.g., EO 14030). As a result, CEQ issued guidance to federal agencies to not include environmental justice analysis in NEPA documents. CEQ is also guiding federal agencies to analyze “reasonable foreseeable effects” rather than “cumulative effects” consistent with section 102 of NEPA and CEQ’s 2020 rule.
However, given the fluidity of the regulatory environment, it is recommended that project proponents consult with the NEPA lead federal agency to chart a course for environmental review that is buffeted to the extent possible against the changing landscape of NEPA regulation dictated by EOs.
Originally published Apr 11, 2025
Authors: