Proposed Rule Update of Procedures for Implementing the National Environmental Policy Act and Assessing the Environmental Effects Abroad of EPA Actions
Agency
Environmental Protection Agency
External Link
Summary
he U.S. Environmental Protection Agency (EPA) has proposed a comprehensive revision to its NEPA implementing procedures in 40 CFR Part 6. The proposal updates EPA’s regulations to incorporate statutory amendments enacted through the Fiscal Responsibility Act of 2023 (FRA) and the One Big Beautiful Bill Act of 2025 (OBBBA), remove reliance on the rescinded Council on Environmental Quality (CEQ) NEPA regulations, implement Executive Order 14154 directing agencies to revise their NEPA procedures, reflect the Supreme Court’s decision in Seven County Infrastructure Coalition v. Eagle County, and make numerous technical and organizational revisions. EPA states that the objective is to improve consistency, create administrative efficiencies, and harmonize its procedures with those adopted by other federal agencies while retaining EPA-specific requirements where appropriate. Comments are due July 27, 2026.
The proposed rule incorporates virtually all of the major statutory NEPA reforms enacted since 2023 into EPA’s own regulations. Among other changes, EPA would codify the statutory page limits and completion deadlines for environmental assessments (75 pages and one year) and environmental impact statements (150 pages, or 300 pages for unusually complex projects, and two years), establish certification requirements that these limits have been met, authorize adoption of another agency’s categorical exclusions under NEPA Section 109, expand reliance on another agency’s environmental documents, implement procedures for applicant-prepared environmental documents, incorporate the OBBBA project sponsor fee provisions for expedited environmental reviews, and formally recognize legislative categorical exclusions enacted by Congress.
Beyond implementing statutory changes, EPA proposes several substantive procedural revisions intended to streamline environmental reviews. The proposal narrows the scope of analysis to the proposed federal action and its reasonably foreseeable environmental effects consistent with Seven County, removes references to the rescinded CEQ regulations by incorporating key definitions directly into Part 6, expands flexibility regarding public review of draft EAs and FONSIs, revises procedures governing categorical exclusions and extraordinary circumstances, allows broader reliance on applicant-hired contractors, updates mitigation provisions to clarify that NEPA itself does not authorize EPA to require mitigation, removes the requirement that Records of Decision explain why the environmentally preferable alternative was not selected, and eliminates references implementing the rescinded Environmental Justice Executive Order 12898 while replacing them with language directing consideration of impacts to all individuals. The proposal also identifies EPA statutory programs that are exempt from NEPA or are considered functionally equivalent to NEPA, providing greater regulatory clarity regarding when Part 6 applies.
Analysis
Likely Effects of Current Policy
While much of this proposal implements statutory amendments that agencies are already obligated to follow, EPA is using this rulemaking to fundamentally modernize its NEPA procedures after the rescission of the government-wide CEQ regulations. Rather than relying on cross-references to CEQ’s former regulations, EPA establishes a self-contained procedural framework that incorporates current statutory requirements, recent judicial precedent, and the Administration’s broader permitting reform policies. The proposal also brings EPA’s procedures into closer alignment with revisions already proposed or adopted by other federal agencies, reinforcing an increasingly consistent government-wide approach to NEPA implementation.
For applicants whose EPA actions require NEPA review—including certain wastewater infrastructure projects, new source NPDES permits, and other limited categories of EPA decisions—the proposal signals continued emphasis on shorter reviews, narrower environmental analyses, expanded use of categorical exclusions, greater reliance on applicant-prepared documentation, and increased flexibility in coordinating NEPA with other environmental review requirements. Although many EPA actions remain exempt from NEPA under statute or the functional equivalence doctrine, this rule provides greater certainty regarding how EPA will conduct the environmental reviews that remain subject to NEPA and further demonstrates the Administration’s broader effort to make the post-FRA statutory framework—not the former CEQ regulations—the primary foundation for federal environmental review.