Other - Guidance/Policy CEQ Updated Categorical Exclusion Guidance Active
Agency
Executive Office of the President
Sub-Component
Council on Environmental Quality
External Link
Summary
The Council on Environmental Quality (CEQ) issued updated guidance on “Establishing, Revising, Adopting, and Applying Categorical Exclusions Under the National Environmental Policy Act,” replacing the existing November 23, 2010 guidance. The guidance is framed as an update and not a substantive reform (i.e., rescission of regulations, elimination of public involvement, etc.). While framed as incremental guidance, it effectively expands agency flexibility in applying categorical exclusions—particularly through multi-CE application and reliance on mitigation—which has direct implications for project timelines and documentation requirements.
Updates to the process for establishing and revising CEs
CEQ provides updated direction to agencies on establishing and revising CEs, including the different paths for substantiating the establishment of a new CE. One passage in the guidance is particularly interesting:
“[T]he extent of the agency’s substantiation record should be proportionate with the reasonably foreseeable impacts of the actions covered. For example, actions that inherently have negligible or minimal environmental effects may require only a brief discussion compared to a more extensive discussion for actions that, for example, require mitigation measures to be incorporated into the description and requirements of the categorical exclusion to avoid significant effects.”
As written, this seems to contemplate a mitigated CE, which is a concept that agencies have considered before but that CEQ had not previously acknowledged directly. The guidance does not provide additional discussion around the use or application of such CEs but it’s acknowledgement in the guidance is notable.
Substantiating CEs
The guidance provides direction on how agencies should substantiate the development of new CEs including the following methods.
Previously completed environmental review — using completed environmental assessments and corresponding findings of no significant impact to justify the creation of a new categorical exclusion. This is the most common approach to substantiation and is how most CEs I’ve been involved in have been substantiated.
Consider another agency’s CE that applies to similar actions — CEQ provides two paths for using the CE of a different agency. First, is the use of another agency’s CE to substantiate establishing a new CE. Under this approach, agency “X” would look to sister agency “Y,” which has an established CE for a type of action, and agency “X” would invoke agency Y’s existing CE as substantiation for creating a similar CE covering similar actions under agency X’s authority. CEQ goes on to say that rather than creating a new CE by leveraging agency Y’s existing CE for substantiation, agencies should instead rely on Section 109 of NEPA, which authorizes agency adoption of CEs.
Rely on experience or expertise of staff or outside experts — this substantiation method is somewhat ill-defined and therefore leaves open a number of possible ways to rely on in-house or third-party expertise to support a conclusion that a proposed action will not result in significant effects. This seems aimed at emerging technologies, where an agency would not want to wait to build an administrative record of EA/FONSIs before substantiating the creation and application of a CE.
Revising or removing a CE
There are times when an agency may feel compelled to update an established CE. Such a change may be based on enacted legislation affecting the agency’s implementation of authorized programs, or when an agency determines through experience applying a CE that certain language could be tightened to remove ambiguities, etc. Here, CEQ advises that substantiation for revisions may be necessary, but should be proportionate to the changes proposed (e.g., no substantiation necessary for only editorial changes).
Joint establishment of a CE
The guidance addresses situations where two agencies may frequently have “joint” actions, with each having a separate but related action to take on a proposed activity. The example provided is a funding agency and a permitting agency that may choose to establish a “joint CE” covering both the funding and permitting action.
Adopting a CE from another agency
Section 109 of NEPA is the master key that unlocks NEPA for routine actions. The Fiscal Responsibility Act amended NEPA to add Section 109, authorizing a federal agency to adopt an existing CE from another federal agency, provided that the adopting agency consults with the originating agency and provides public notice. The CEQ guidance provides additional direction on this authority:
- Agencies are discouraged from soliciting public comment on the adoption of another agency’s CE. CEQ reinforces the requirement to provide public notice, but not to seek public comment.
- Agencies do not need to consult with CEQ prior to adopting another agency’s CE.
- Even if an “owning” agency determines to revoke or revise a CE, the “adopting” agency may still rely on the CE as written at the time of adoption.
“The originating agency’s decision to rescind or modify the categorical exclusion at a later point in time does not preclude the adopting agency from continuing to use it or include it in agency NEPA procedures, as long as the rationale supporting the CE remains valid.” - The guidance also refers agencies to the updated “Categorical Exclusion Explorer Tool,” an online tool that allows users to “search the entire body of over 2,000 categorical exclusions from over 80 agencies.”
Applying CEs to particular agency actions
The guidance also provides direction on the basics of CE application, paying particular attention to extraordinary circumstances. Specifically, the guidance reiterates that the mere presence of extraordinary circumstances does not necessarily disqualify application of a CE to a particular action. Rather, agencies should
“consider whether the application of the [CE] is still appropriate, notwithstanding the presence of extraordinary circumstances, either because the agency determines that, notwithstanding the extraordinary circumstance, the proposed action is not likely to result in reasonably foreseeable significant adverse effects, or because the proposed action is modified to avoid those effects.”
The guidance goes further to describe the application of multiple CEs to a single agency action:
Additionally, agency NEPA procedures may provide for applying multiple categorical exclusions to cover a single agency action. In some circumstances, the combination of categorical exclusions can cover all aspects of the action and support the agency’s determination that the project considered in its entirety is not likely to have a reasonably foreseeable significant adverse effect.
CEQ directs agencies to concisely document—in a single determination applicable to the proposed action in its entirety—the use of multiple categorical exclusions and the consideration of extraordinary circumstances. Here again, CEQ appears to endorse a strategy some may have referred to as “daisy-chaining” or stacking CEs together, which previously was not widely accepted.
Finally, the guidance describes circumstances where there may be multiple federal actions on a proposed project and where one agency has determined that its action relative to the project is covered by a CE. In those circumstances, other agencies can rely on that determination to support their later, subsequent actions on the project, provided there are no extraordinary circumstances or other factors that would take the action out of CE applicability.
Analysis
Likely Effects of Current Policy
The CEQ’s April 2026 guidance on categorical exclusions (CEs) is likely to accelerate a broader shift toward “CE-first” NEPA implementation across federal agencies, particularly for transportation, energy, water, and other infrastructure projects. The guidance replaces CEQ’s 2010 framework and reflects the Fiscal Responsibility Act’s codification of categorical exclusions into statute, while also adapting to the post-2025 environment in which CEQ rescinded its longstanding NEPA implementing regulations. In practical terms, the guidance strongly encourages agencies to evaluate whether a project qualifies for a CE before preparing an EA or EIS, and it places new emphasis on agencies adopting other agencies’ existing CEs rather than developing entirely new review pathways. This will likely reduce permitting timelines for routine or lower-impact projects such as roadway rehabilitation, utility upgrades, broadband deployment, grid modernization, and small-scale water infrastructure, especially where agencies can now leverage shared or cross-agency categorical determinations.
A second major effect will likely be increased standardization and scalability of CE usage across agencies. CEQ’s guidance explicitly supports interagency adoption of categorical exclusions and is paired with new digital tools such as the Categorical Exclusion Explorer and “CE Works” platform. That combination could materially expand the universe of projects processed through categorical exclusions by making precedent easier to identify, document, and replicate. For infrastructure sponsors and grant recipients, this could reduce uncertainty and transaction costs during project development. The change may be especially consequential for agencies with historically less mature NEPA programs, which can now borrow established exclusions from agencies like FHWA, BLM, DOE, or USACE rather than developing bespoke procedures. At the same time, the guidance appears to deemphasize procedural hurdles associated with establishing or revising CEs, including making public comment optional in some cases, signaling a clear policy preference for administrative efficiency and faster permitting.
However, the guidance also raises the likelihood of increased litigation and scrutiny around the boundaries of categorical exclusions themselves. Because the new framework pushes agencies toward broader and more frequent CE use, opponents of projects may increasingly challenge whether agencies adequately evaluated “extraordinary circumstances,” cumulative impacts, or whether a project truly falls within a category that “normally” lacks significant environmental effects. The legal risk may be heightened by the fact that CEQ’s binding regulations have been rescinded, leaving agencies to rely more heavily on statutory language, agency procedures, and nonbinding guidance. Environmental groups are also likely to argue that expanded CE reliance reduces public transparency and limits opportunities for stakeholder participation compared with EAs and EISs. Over time, the durability of the CEQ approach will probably depend less on the guidance itself and more on how carefully agencies document administrative records supporting CE determinations, especially for projects involving sensitive habitats, environmental justice concerns, or climate-related impacts.