In a significant shift for environmental policy, the Council on Environmental Quality (CEQ) announced in late February 2025 that it would rescind all of its regulations. This move comes in compliance with a recent court decision that determined CEQ lacked the authority to adopt regulations. The implications of this decision are far-reaching, affecting how federal agencies will approach environmental compliance under the National Environmental Policy Act (NEPA).
NEPA, enacted in 1970, aims to foster harmony between human activities and the environment. It mandates that federal agencies document the expected environmental impacts of their proposed actions. CEQ, established by NEPA, has been instrumental in guiding these efforts. However, the recent court decisions have called into question the extent of CEQ’s authority.
The D.C. Circuit Court of Appeals, in Marin Audubon Soc’y v. Fed. Aviation Admin., ruled that CEQ does not have the power to issue regulations. The court argued that only Congress, not the President, can grant such authority. This decision was reinforced by a subsequent ruling in North Dakota, which vacated CEQ’s 2024 regulations. These legal developments have led CEQ to rescind all its regulations, effective April 11, 2025.
The rescission of CEQ’s regulations means that federal agencies will now need to draft their own rules and regulations regarding NEPA compliance. This shift places a significant burden on individual agencies, which must now develop or revise their NEPA implementing procedures to align with the text of NEPA as amended by the Fiscal Responsibility Act of 2023 (FRA). CEQ has provided guidance to agencies, encouraging them to use the 2020 NEPA regulations as a framework. These regulations, though rescinded or revised in later years, offer a comprehensive structure for NEPA compliance.
The memorandum issued by CEQ outlines several key considerations for agencies. These include clearly indicating which actions are subject to NEPA, establishing protocols for public involvement, and determining how to identify a lead agency for multi-agency actions. Additionally, agencies are advised to focus on alternatives that are technically and economically feasible and to avoid considering the “cumulative effects” of their proposed actions, a practice that has been part of the NEPA process for decades but was not explicitly mandated by NEPA itself.
This change in regulatory landscape will likely lead to a period of adjustment for federal agencies. The need to develop or revise NEPA procedures will require significant resources and expertise. However, it also presents an opportunity for agencies to tailor their environmental compliance efforts more closely to their specific missions and the unique environmental challenges they face. The public comment period, open until March 27, 2025, provides a platform for stakeholders to voice their concerns and suggestions, ensuring that the transition is as smooth and effective as possible.