Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Overhaul of NEPA Regulations Is Now Final -What It Means For Federal Environmental Reviews

Author: Daniel T. McKillop

Date: July 22, 2020

Key Contacts

Back

The White House’s Council on Environmental Quality (CEQ) has finalized its comprehensive overhaul of the National Environmental Policy Act (NEPA)-implementing regulations...

The White House’s Council on Environmental Quality (CEQ), an agency within the Executive Office of the President, has finalized its comprehensive overhaul of the National Environmental Policy Act (NEPA)-implementing regulations. NEPA requires Federal agencies to consider the environmental impacts of proposed actions as part of agencies’ decision-making processes.

Overhaul of NEPA Regulations Is Now Final

According to the CEQ, the changes in its Final Rule, titled “Update to the Regulations Implementing the Procedural Provisions of the National Environmental Policy Act,” are intended to address identified deficiencies in the NEPA process, which “continues to slow or prevent the development of important infrastructure and other projects that require Federal permits or approvals.” 

National Environmental Policy Act and Implementing Regulations

The National Environmental Policy Act sets forth procedural requirements, applying that national policy to proposals for major Federal actions significantly affecting the quality of the human environment by requiring Federal agencies to prepare a detailed statement on: (1) the environmental impact of the proposed action; (2) any adverse effects that cannot be avoided; (3) alternatives to the proposed action; (4) the relationship between local short-term uses of man’s environment and the maintenance and enhancement of long-term productivity; and (5) any irreversible and irretrievable commitments of resources that would be involved in the proposed action. NEPA does not include a private right of action and specifies no remedies. Rather, challenges to agency action alleging non-compliance with NEPA procedures are brought under the Administrative Procedure Act (APA).

In 1978, CEQ promulgated its Regulations for Implementing the Procedural Provisions of the National Environmental Policy Act (NEPA regulations), which tell federal agencies what they must do to comply with the procedures and achieve the goals of NEPA. The regulations direct Federal agencies to adopt their own implementing procedures to supplement the NEPA regulations. The NEPA regulations have not been significantly amended in more than four decades. In support of its amendments, CEQ maintains that implementation of NEPA has become increasingly complex and time consuming for federal agencies, project applicants, and those seeking permits or approvals from the Federal government. According to the CEQ, the average length of an environmental impact statement (EIS) is over 600 pages, and that the average time for Federal agencies to conduct these NEPA reviews is four and a half years.

In 2017, President Donald Trump issued Executive Order 13807, which established a two-year goal for completing environmental reviews for major infrastructure projects and directed CEQ to consider revisions to modernize its regulations. In 2018, CEQ issued an Advance Notice of Proposed Rulemaking (ANPRM) requesting comment on potential updates to its regulations. On January 10, 2020, CEQ issued a Notice of Proposed Rulemaking (NPRM) to modernize and clarify the NEPA regulations. It produced more than 1.1 million public comments. 

Amended NEPA Implementing Regulations

On July 15, 2020, the CEQ announced its final rule. The amended regulation revises or establishes numerous provisions within several general areas:

Management of the NEPA Process

  • Establishes presumptive time limits of two years for the preparation of environmental impact statements (EISs) and one year for the preparation of environmental assessments (EAs)
  • Specifies presumptive page limits for EISs and EAs
  • Requires joint schedules, a single EIS, and a single record of decision (ROD), where appropriate, for EISs involving multiple Federal agencies
  • Strengthens the role of the lead agency and requires senior agency officials to oversee NEPA compliance, including timely resolution of disputes to avoid delays
  • Allows applicants/contractors to assume a greater role in preparing EISs with appropriate disclosure of financial or other interests and with supervision and independent evaluation by the agency

Codification of Relevant Case Law

  • Includes new provisions to assist Federal agencies in determining whether NEPA applies and the appropriate level of environmental review
  • Requires agencies to consider environmental effects that are reasonably foreseeable and have a reasonably close causal relationship to the proposed action
  • Clarifies the definition of major Federal action and excludes activities with minimal Federal funding or involvement such as small business and farm loan guarantees
  • Directs agencies to analyze a reasonable range and number of technically and economically feasible alternatives
  • Provides efficiencies to comply with NEPA where procedures and documents required under other statutes satisfy the requirements of the CEQ regulations
  • Allows agencies to establish procedures to use other agencies’ categorical exclusions (CEs) and to adopt EAs and CE determinations, where appropriate

Public Involvement

  • Requires agencies to provide more information to and solicit input from the public earlier in the process to ensure and facilitate informed decision making by Federal agencies
  • Reduces duplication by facilitating use of documents prepared by State, Tribal, and local agencies to comply with NEPA
  • Enhances ability of Native Americans to participate in the NEPA process and ensures appropriate consultation with affected Tribal governments and agencies
  • Eliminates provisions in the prior regulations that limit Tribal interest to reservations

Environmental Reviews

  • Requires agencies to consider the affected environment, including reasonably foreseeable environmental trends and planned actions
  • Requires agencies to certify consideration of alternatives, information, and analyses submitted by State, Tribal, and local governments and public commenters
  • Clarifies that mitigation must have a nexus to effects of the proposed action or alternatives

What’s Next?

The rule is scheduled to take effect on September 14, 2020. However, much like other sweeping amendments to environmental regulations, the new NEPA regulations will likely be subject to legal challenges. So while the changes aim to streamline the environmental review process, in the near term, they will create uncertainty and legal risk developers involved in projects that are subject to NEPA.

If you have questions, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
The Screenshot Problem: Why Nothing Is Really Private Anymore post image

The Screenshot Problem: Why Nothing Is Really Private Anymore

Screenshots have changed the risks of electronic communications. The screenshot problem is that messages intended for one person or a small group can be copied, forwarded, preserved, and ultimately presented to opposing counsel, regulators, journalists, customers, or a jury. Businesses should recognize that a truly private digital conversation is increasingly unreliable and ensure their policies, […]

Author: Sean M. Pena

Link to post with title - "The Screenshot Problem: Why Nothing Is Really Private Anymore"
BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers post image

BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers

Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]

Author: Nicholas Wall

Link to post with title - "BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers"
IP Infringement: What Steps Can You Take If You're Affected? post image

IP Infringement: What Steps Can You Take If You're Affected?

IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]

Author: Michael Mietlicki

Link to post with title - "IP Infringement: What Steps Can You Take If You're Affected?"
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next post image

Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next

When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]

Author: Sean M. Pena

Link to post with title - "Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next"
BESS Interconnection: Managing Grid, Cost, and Schedule Risk post image

BESS Interconnection: Managing Grid, Cost, and Schedule Risk

For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]

Author: Nicholas Wall

Link to post with title - "BESS Interconnection: Managing Grid, Cost, and Schedule Risk"
Navigating Director and Officer Liability in Times of Financial Distress post image

Navigating Director and Officer Liability in Times of Financial Distress

Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]

Author: Michael Mietlicki

Link to post with title - "Navigating Director and Officer Liability in Times of Financial Distress"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!