We were asked to give our thoughts on this piece by Aidan Mackenzie and Thomas Hochman. They have been studying permitting reform for some time, and are definitely a fresh set of eyes on our ongoing challenges. They are our guests, so please respect that, and focus on the content. I’m particularly interested in the views of those experienced with NEPA, including practitioners and environmental attorneys.
Three steps CEQ can take to fix permitting
On day one, President Trump took bold executive action to streamline the National Environmental Policy Act (NEPA), revoking the 1977 Executive Order (EO) that gave regulatory authority to the Council on Environmental Quality (CEQ).1 President Trump’s new EO also directs CEQ to rescind existing NEPA regulations and issue new guidance that significantly accelerates permitting timelines. With these measures, the Trump administration has thrown out decades of NEPA regulations and related case law.2
For those of us who have spent time learning all this..it’s fairly scary. And as Ted Boling said about the FRA, it’s a full employment program for environmental attorneys to rebuild case law. Nevertheless, here’s the general outline of their ideas:
CEQ and implementing agencies can leverage reasonable interpretations of statutory NEPA and FRA language to achieve three significant goals:
- Narrow the set of actions that trigger NEPA in the first place.
- Expand the set of actions that are eligible for a Categorical Exclusion (CatEx).
- Narrow the set of actions that require an Environmental Impact Statement (EIS).
We offer three reforms to pare NEPA back to fulfill its true statutory goals. First, to narrow the set of actions that trigger NEPA, CEQ should redefine “major federal action” to ensure that projects with low levels of federal involvement do not trigger NEPA. Second, to expand the set of actions that are eligible for a CatEx, CEQ should set a clear and broad standard for actions that “normally [do] not have a significant effect on the human environment.” Third, to narrow the set of actions that require an EIS, CEQ should set a high standard for what constitutes a “reasonably foreseeable” significant effect. In each case, CEQ should be careful to reduce the litigation attack surface for agencies, advising agencies to consider issues like indirect effects under minimal scrutiny.
We can discuss any parts of their paper, but I’ll focus on the more “on the ground” implementation aspects of #2.
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The term “normally” should be defined using a practical, bright-line test for significant effects. Agencies can reasonably classify actions as “normally” having no significant effect when a substantial majority of such actions have proven benign through actual implementation.
Specifically, an action category should qualify for a categorical exclusion when historical data demonstrates that a substantial majority (more than 70%) of comparable actions resulted in Findings of No Significant Impact (FONSI). This threshold replaces previous interpretations requiring near-certainty of no significant impacts, recognizing that if a substantial majority of similar actions have proven benign through actual implementation, the category can reasonably be classified as “normally” having no significant effect.18
The streamlining benefits would be enormous: ~99% of environmental assessments result in a FONSI.19 This means that an overwhelming percentage of actions that currently trigger an environmental assessment could be covered under categorical exclusions under the new framework.
How to implement
Agencies should document factors that indicate future actions will maintain similar performance, including:
- Standard mitigation measures that routinely prevent significant impacts
- Existing permit requirements that effectively control environmental effects
- Common design features of best practices incorporated into such projects
These predictive factors help establish that the historical performance demonstrated by the 70% threshold will continue.
To support categorical exclusion determinations, agencies should:
Analyze historical NEPA reviews to establish the proportion of FONSIs
Evaluate how standard practices and requirements will maintain environmental performance
Provide professional assessment of typical project characteristics and their environmental implications
Maintain extraordinary circumstance review protocols for unusual situations.
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This sounds a bit like how our FS administrative CEs were developed in the first place. People also depend on NEPA for public engagement, and the FS requires scoping of CEs but I’m not sure that other agencies do. Finally, I don’t know how much is saved by a CE vs. an EA. Here’s what I think it might be for an FS project off the top of my head. I have been out of this awhile, so may have forgotten quite a bit.
CE | EA | |
Public comment | Scoping | Scoping plus Draft EA |
Alternatives | One | Two or More |
Objection Process | No | Yes |
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NEPA has never explicitly defined “significant effect,” leaving room for a much more reasonable interpretation. Therefore, we recommend that an action should meet all three of the following criteria to be deemed significant:
Substantial magnitude: Exceeding minor or routine environmental changes
Inadequate existing mitigation: Impacts that persist despite standard, widely used measures or compliance with existing regulatory thresholds
High likelihood: Based on probable, non-speculative outcomes, and proximately caused by federal action
………
By tying “significance” to magnitude, likelihood, and lack of adequate mitigation, CEQ would shrink the set of “significant” impacts. This would also narrow the “cumulative impacts” concept: if those broader or longer-term effects are speculative, the agency can exclude them from “likely.” And finally, if standard permitting under other environmental laws (such as the Clean Air Act or Clean Water Act) typically addresses any effect, CEQ could determine that that the effect no longer rises to significance because it will be mitigated to an acceptable level under those other laws.
This approach would maintain fidelity to statutory language while allowing for practical implementation, reducing unnecessary analysis for actions with demonstrated track records of minimal impact. It would also create clear standards that can withstand judicial review when properly documented.
How to implement
To establish magnitude thresholds, agencies should:
- Identify quantitative thresholds where possible (e.g., acres of disturbance, emissions levels)
- For non-quantifiable impacts, define clear categorical standards for what constitutes “substantial” versus “minor” changes
- Document why these thresholds represent meaningful environmental distinctions
To establish likelihood, agencies should:
- Develop clear standards for what constitutes “probable” versus “speculative” impacts
- Require demonstration of direct causal links between federal action and environmental effects
- Consider effects that involve multiple independent actors or events as generally more speculative
- Prioritize analysis of direct, proximate impacts in determining significance
- Effects may be considered more speculative and thus less likely to be “probable” when they:
- Depend on the combined effects of multiple separate actions
- Require assumptions about future actions by other parties
- Cannot be directly attributed to the federal action under review
To establish adequate and existing mitigation, agencies should:
Catalog standard permit conditions and widely-used mitigation measures by project type
Create presumptions that impacts are not significant when standard mitigation measures are applied
Establish protocols for determining when additional, project-specific mitigation might be needed.
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These all sound like things (except maybe the last three) that agencies could put into their NEPA regulations, which would likely themselves be litigated. At the same time, if the regulations could make their way through the courts successfully, it seems like these approaches and documentation might make life easier for agency folks, judges and environmental attorneys, while ensuring that the statutory NEPA requirements are met.