Final NEPA Rule Could Slow Permitting & Project Delivery

What happened: In yet another problematic regulation from the Biden Administration this year, the White House Council on Environmental Quality (CEQ) May 1 finalized its phase two National Environmental Policy Act (NEPA) rulemaking. ARTBA and other groups expressed concerns about the draft proposal back in September 2023, and in response the agency chose not to include prior greenhouse gas emissions (GHG) guidance. However, the final text remains an issue.

Why it matters: Specifically, CEQ eliminated references to the procedural nature of NEPA permitting, allowing regulators to seek indefinite extensions. The agency also now requires consideration of hard-to-measure factors such as climate change, environmental justice, and cumulative impacts. Although the rule calls for page and time limits on permits as mandated by the Fiscal Responsibility Act, the new requirements could lead to substantial delays in the permitting processes. Project proponents may also encounter heightened litigation risks from outside groups looking to interrupt progress.

What’s next: ARTBA will provide a detailed summary of the rule next week. It’s effective July 1, and legal challenges remain on the table. For more information, contact Prianka Sharma.