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Council on Environmental Quality Substantially Rewrites NEPA Regulations

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In May 2024, the Council on Environmental Quality published major updates to the rules governing how federal agencies must review environmental impacts of projects, affecting everything from public participation to project timelines. The changes place new emphasis on environmental justice, requiring agencies to meaningfully engage communities facing disproportionate environmental burdens, and remove previous rules that limited who could challenge agency decisions in court. While some updates are designed to speed up the review process, others may add new requirements for agencies and project sponsors seeking federal permits or funding.

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Holland & Knight alert by Rafe Petersen, Alexandra E. Ward, and Jason A. Hill analyzing the Council on Environmental Quality (CEQ) Phase II regulations published May 1, 2024 under the National Environmental Policy Act (NEPA). Covers amendments to 40 C.F.R. Parts 1500-1508, including changes to Environmental Impact Statement (EIS), Environmental Assessment (EA), Categorical Exclusion (CatEx), Finding of No Significant Impact (FONSI), exhaustion requirements, environmental justice definitions, and the Fiscal Responsibility Act (FRA) of 2023 NEPA amendments. Examines impacts on federal agencies, project proponents, Tribal communities, and communities with environmental justice concerns.

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