The regulatory landscape of the US is facing a significant transformation, impacting how projects, particularly within the water industry, are permitted and executed. The National Environmental Policy Act (NEPA), in particular, is currently undergoing dramatic alterations.
Recent executive actions (Executive Order 14154) have initiated a substantial NEPA reform. The revocation of a 1977 executive order, which allowed the Council on Environmental Quality (CEQ) to issue binding NEPA regulations, coupled with the removal of existing NEPA rules, has created a period of regulatory uncertainty.
Not long after the executive order, CEQ issued its interim final rule, “Removal of National Environmental Policy Regulations,” to remove “all iterations” of CEQ’s NEPA regulations. To accompany these changes and provide guidance CEQ shared a Memorandum for Heads of Federal Departments and Agencies.
Federal agencies are now directed to rely on their existing agency-specific NEPA procedures. They are also encouraged to use the 2020 NEPA regulations as a framework for current projects and litigation defense. Agencies have been given 12 months to develop new procedures, notably excluding environmental justice analyses.
These changes stem from court rulings that questioned CEQ's authority to issue binding NEPA regulations. This legal uncertainty is expected to lead to numerous challenges and litigation, creating a period of flux for NEPA implementation.
NEPA changes create uncertainty, requiring careful navigation of new procedures and potential legal challenges. We will continue to track these developments.
