The federal government is shifting how agencies implement environmental regulations.
In late February, the Council on Environmental Quality (CEQ) released an interim final rule to remove government-wide guidance on how to implement the National Environmental Protection Act (NEPA). Agencies will be directed to craft new agency-specific regulations, ensuring compliance with the new rule, future congressional permitting reforms and President Donald Trump’s executive orders on permitting.
The interim final rule comes in response to Trump’s recent executive order, “Unleashing American Energy,” which encourages energy exploration and production on federal lands and water. The executive order rescinded former President Jimmy Carter’s Executive Order 11991, which directed CEQ to issue guidance to federal agencies on implementing NEPA. Carter’s order has guided nearly 50 years’ worth of CEQ regulations.
As a result of Trump’s order, CEQ determined that it may lack authority to maintain its NEPA regulations in the absence of Carter’s executive order.
“In light of these considerations, and as exacerbated by the fact that the most recent amendment to its regulations has been vacated by a district court after it concluded that CEQ has no rulemaking authority, CEQ is concerned that agencies and the public are confused as to the status and legitimacy of its NEPA regulations,” the agency wrote in the interim rule.
As such, the agency determined that the best way to clarify confusion—while complying with the president’s order to issue guidance to agencies on implementing NEPA and propose rescinding CEQ’s NEPA regulations—was to issue the final interim rule.
On Feb. 19, CEQ Chief of Staff Katherine Scarlett outlined in a memo voluntary guidance for agencies to implement NEPA. Scarlett noted that CEQ encourages agencies to follow the final 2020 rule “Update to the Regulations Implementing the Procedural Provisions of the National Environmental Policy Act” as a framework for the initial development of NEPA regulation revisions. Agencies are also encouraged to complete revisions within 12 months.
“To ensure consistency and predictability amongst agency NEPA procedures, agencies must consult with CEQ while developing or revising their NEPA procedures,” the memo read.
Reactions
The Public Lands Council (PLC) stressed that removing the regulations does not mean NEPA is not in effect. Agencies are expected to continue implementing current regulations until new ones are created.
The group said that by removing NEPA guidance away from federal oversight, the administration is taking a course that has appeared inevitable over the past couple of months. “A duo of court cases (Marin Audubon Society v. Federal Aviation Administration and Iowa v. CEQ) decided in early 2025 to question CEQ’s original authorization to issue such regulations, leaving the Trump administration plenty of room to withdraw the regulations,” PLC said in a Weekend Roundup e-newsletter.
The group said it will continue to lead industry engagement on NEPA rulemakings at relevant agencies that affect federal lands grazing.
Environmental groups condemned the interim final rule.
“Eliminating all the NEPA rules will ‘unleash’ oil and gas development under the guise of a fake energy emergency,” said Earthjustice President Abigail Dillen. “Much more sweepingly, it endangers the essentials that only our government can reliably protect, including clean air and water.”
The interim final rule is open for public comment until March 27 and would become final 45 days after publication. To submit a comment, visit regulations.gov and search for Docket ID CEQ–2025–0002. — Anna Miller, WLJ managing editor
