NEPA Professionals Take Note: Key Updates from CEQ’s Latest Guidance

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First, nothing is happening to the National Environmental Policy Act (NEPA) itself. NEPA, enacted on January 1, 1970 (Pub. L. 91-190, 42 U.S.C. 4321-4347), remains in full force and is not being challenged. It has been amended several times, most recently by the Fiscal Responsibilities Act (FRA) of 2023. The current discussions are not about the NEPA law but about the Council of Environmental Quality’s (CEQ's) ability to establish regulations. Additionally, federal agencies are being asked to reconsider their NEPA implementing regulations to streamline the process.

The challenge on CEQ’s ability to establish regulations resulted from the November 12, 2024 D.C. Circuit Court’s decision in Marin Audubon Society v. FAA, No. 23-1067. This ruling found that CEQ, established in an advisory capacity, does not have the authority to issue binding regulations. On February 3, 2025, the U.S. District Court for the District of North Dakota ruled that CEQ’s Phase II NEPA regulations were invalid (Iowa v. Council on Envtl. Quality, 1:24-cv-089). As a result of those court decisions, and President Trump’s Executive Order 14154, Unleashing American Energy, CEQ was directed to rescind their regulations and instead provide guidance to federal agencies that expedites and simplified the NEPA and related permitting processes.

CEQ, on February 19, 2025, announced their intention to rescind their NEPA regulations (40 CFR 1500-1508) in the Memorandum for Heads of Federal Departments and Agencies (Memo). CEQ advised agencies to treat the former regulations as "voluntary" guidance for implementing their own binding NEPA procedures, aligning with CEQ's advisory role.

The CEQ Memo directed agencies to continue to rely on each individual agencies’ existing NEPA implementing regulations, to voluntarily follow the rescinded CEQ regulations, and to continue pending and ongoing NEPA actions while updating their regulations to comply with the FRA of 2023. Of note is that the Memo does formally eliminate the need for Environmental Justice analysis in NEPA documents. However, because NEPA requires consideration of possible impacts to the full extent of the natural, social, and cultural environment, NEPA documents must still consider socio-economic and human-centric impacts as part of their environmental analyses.

The NEPA call-out box at the beginning of this article overviews the original, and still valid, organization of the NEPA law. NEPA is a very short law, just a few pages. In its original form, it only contains Title I Sections 101-105, which are “NEPA”, and a Title II that established CEQ. The FRA of 2023 added several new sections to NEPA, as shown in the call-out box at left.

CEQ’s Memo now tasks federal agencies with evaluating and revising their current NEPA implementing regulations with the goal of prioritizing efficient and streamlined environmental reviews. A second goal is to promote more consistency and predictability with the Federal Government related to the implementation of NEPA. The agencies must ensure that revised NEPA implementing regulations are consistent with the FRA of 2023 and consider:

  • Prioritization of project sponsor prepared NEPA documents for expeditious review.

  • Ensure compliance with Section 107’s page limits and deadlines.

  • Provide for consideration of a reasonable range of technically and economically feasible alternatives that meet the purpose and need; and consider the effects of no action.

  • Comply with Section 106 and the definitions in Section 111, particularly “Major Federal Actions,” to ensure that NEPA is only applied when necessary and that the correct level of NEPA review is undertaken.

NEPA isn’t going anywhere – but its implementation is evolving.  Environmental reviews will continue, with an emphasis on efficiency and consistency. Over the next 12 months, federal agencies must review and revise their regulations in coordination with CEQ, ensuring alignment across the board. The Office of Management and Budget will oversee this process and may call for interagency reviews, if needed. Public input may also play a role, offering opportunities to weigh in on the changes. In the meantime, NEPA professionals will keep moving forward under existing agency regulations, adapting as the landscape shifts.