Title 23HighwaysRelease 119-73

§326 State assumption of responsibility for categorical exclusions

Title 23 › Chapter CHAPTER 3— - GENERAL PROVISIONS › § 326

Last updated Apr 6, 2026|Official source

Summary

The Secretary can let a State take over decisions about whether certain activities are "categorical exclusions" — meaning they do not need an environmental assessment or an environmental impact statement under the Council on Environmental Quality rules in effect on October 1, 2003. A State may only decide about types of activities the Secretary specifically names, and it must follow criteria the Secretary sets. Those criteria must include making information public consistent with section 552 of title 5 and the National Environmental Policy Act. The Secretary cannot force a State to give up any allowed project delivery methods. If a State takes over, it may also take on the Secretary’s environmental review and consultation duties under other federal laws for those excluded actions, except government-to-government consultation with Indian tribes. The State must follow the same rules the Secretary would, and the State alone is responsible and liable. The Secretary and State must sign a public memorandum of understanding (MOU) describing the duties, when the Secretary might resume them, and other terms. The Secretary will help with training if a Governor asks, will watch the State’s performance and funding, and will consider performance when renewing the MOU. MOUs generally run no more than 3 years and can be renewed; they run 5 years if the State has held these responsibilities for at least 10 years. The Secretary can end a State’s participation if the State is not doing the work, but must notify the State, give at least 120 days to fix problems, and, on a Governor’s request, explain needed corrections. A State may leave the program with at least 90 days’ notice. A State agency acting under an MOU is treated as a Federal agency for the related federal law. For a specific project, a State may use funds apportioned under section 104(b)(2) to pay attorneys’ fees tied directly to eligible project activities.

Full Legal Text

Title 23, §326

Highways — Source: USLM XML via OLRC

(a)(1)The Secretary may assign, and a State may assume, responsibility for determining whether certain designated activities are included within classes of action identified in regulation by the Secretary that are categorically excluded from requirements for environmental assessments or environmental impact statements pursuant to regulations promulgated by the Council on Environmental Quality under part 1500 of title 40, Code of Federal Regulations (as in effect on October 1, 2003).
(2)A determination described in paragraph (1) shall be made by a State in accordance with criteria established by the Secretary and only for types of activities specifically designated by the Secretary.
(3)The criteria under paragraph (2) shall include provisions for public availability of information consistent with section 552 of title 5 and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(4)The Secretary shall not require a State, as a condition of assuming responsibility under this section, to forego project delivery methods that are otherwise permissible for highway projects.
(b)(1)If a State assumes responsibility under subsection (a), the Secretary may also assign and the State may assume all or part of the responsibilities of the Secretary for environmental review, consultation, or other related actions required under any Federal law applicable to activities that are classified by the Secretary as categorical exclusions, with the exception of government-to-government consultation with Indian tribes, subject to the same procedural and substantive requirements as would be required if that responsibility were carried out by the Secretary.
(2)A State that assumes responsibility under paragraph (1) with respect to a Federal law shall be solely responsible and solely liable for complying with and carrying out that law, and the Secretary shall have no such responsibility or liability.
(c)(1)The Secretary and the State, after providing public notice and opportunity for comment, shall enter into a memorandum of understanding setting forth the responsibilities to be assigned under this section and the terms and conditions under which the assignments are made, including establishment of the circumstances under which the Secretary would reassume responsibility for categorical exclusion determinations.
(2)On request of a Governor of a State, the Secretary shall provide to the State technical assistance, training, or other support relating to—
(A)assuming responsibility under subsection (a);
(B)developing a memorandum of understanding under this subsection; or
(C)addressing a responsibility in need of corrective action under subsection (d)(1)(B).
(3)A memorandum of understanding—
(A)except as provided under subparagraph (C), shall have a term of not more than 3 years;
(B)shall be renewable; and
(C)shall have a term of 5 years, in the case of a State that has assumed the responsibility for categorical exclusions under this section for not fewer than 10 years.
(4)In a memorandum of understanding, the State shall consent to accept the jurisdiction of the Federal courts for the compliance, discharge, and enforcement of any responsibility of the Secretary that the State assumes.
(5)The Secretary shall—
(A)monitor compliance by the State with the memorandum of understanding and the provision by the State of financial resources to carry out the memorandum of understanding; and
(B)take into account the performance by the State when considering renewal of the memorandum of understanding.
(d)(1)The Secretary may terminate the participation of any State in the program if—
(A)the Secretary determines that the State is not adequately carrying out the responsibilities assigned to the State;
(B)the Secretary provides to the State—
(i)a notification of the determination of noncompliance;
(ii)a period of not less than 120 days to take such corrective action as the Secretary determines to be necessary to comply with the applicable agreement; and
(iii)on request of the Governor of the State, a detailed description of each responsibility in need of corrective action regarding an inadequacy identified under subparagraph (A); and
(C)the State, after the notification and period described in clauses (i) and (ii) of subparagraph (B), fails to take satisfactory corrective action, as determined by the Secretary.
(2)The State may terminate the participation of the State in the program at any time by providing to the Secretary a notice not later than the date that is 90 days before the date of termination, and subject to such terms and conditions as the Secretary may provide.
(e)A State agency that is assigned a responsibility under a memorandum of understanding shall be deemed to be a Federal agency for the purposes of the Federal law under which the responsibility is exercised.
(f)A State assuming the responsibilities of the Secretary under this section for a specific project may use funds apportioned to the State under section 104(b)(2) for attorney’s fees directly attributable to eligible activities associated with the project.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Environmental Policy Act of 1969, referred to in subsec. (a)(3), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see

Short Title

note set out under section 4321 of Title 42 and Tables.

Prior Provisions

A prior section 326, added Pub. L. 102–240, title VI, § 6004(a), Dec. 18, 1991, 105 Stat. 2169; amended Pub. L. 105–130, § 5(e)(4), Dec. 1, 1997, 111 Stat. 2558, related to education and training program, prior to repeal by Pub. L. 105–178, title V, § 5119(b), June 9, 1998, 112 Stat. 452.

Amendments

2021—Subsec. (c)(3)(A). Pub. L. 117–58, § 11314(1), added subpar. (A) and struck out former subpar. (A) which read as follows: “shall have a term of not more than 3 years; and”. Subsec. (c)(3)(C). Pub. L. 117–58, § 11314(2), (3), added subpar. (C). 2015—Subsec. (c)(2) to (5). Pub. L. 114–94, § 1307(1), added par. (2) and redesignated former pars. (2) to (4) as (3) to (5), respectively. Subsec. (d)(1). Pub. L. 114–94, § 1307(2), added par. (1) and struck out former par. (1). Prior to amendment, text read as follows: “The Secretary may terminate any assumption of responsibility under a memorandum of understanding on a determination that the State is not adequately carrying out the responsibilities assigned to the State.” 2012—Subsec. (a)(4). Pub. L. 112–141, § 1312(1), added par. (4). Subsec. (d). Pub. L. 112–141, § 1312(2), added subsec. (d) and struck out former subsec. (d). Prior to amendment, text read as follows: “The Secretary may terminate any assumption of responsibility under a memorandum of understanding on a determination that the State is not adequately carrying out the responsibilities assigned to the State.” Subsec. (f). Pub. L. 112–141, § 1312(3), added subsec. (f).

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 117–58 effective Oct. 1, 2021, see section 10003 of Pub. L. 117–58, set out as a note under section 101 of this title.

Effective Date

of 2015 AmendmentAmendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

Effective Date

of 2012 AmendmentAmendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

Reference

Citations & Metadata

Citation

23 U.S.C. § 326

Title 23Highways

Last Updated

Apr 6, 2026

Release point: 119-73