Feds Finalize Faster NEPA Reviews for Roads, Rails, Transit
Published Date: 9/1/2026
Rule
Summary
FHWA, FRA, and FTA (collectively referred to as the "Agencies") are finalizing the interim final rule (IFR) published on July 3, 2025, which revised the Agencies' National Environmental Policy Act (NEPA) of 1969 implementing regulations in light of the removal of the Council on Environmental Quality (CEQ) regulations, the amendments to NEPA included in the section of the Fiscal Responsibility Act (FR Act) of 2023, known as the Building United States Infrastructure through Limited Delays and Efficient Reviews (BUILDER) Act of 2023, amendments regarding efficient environmental reviews included in the Infrastructure Investment and Jobs Act (IIJA) of 2021, and the Supreme Court decision in Seven County Infrastructure Coalition. The Agencies provided a 30-day comment period for the public to review and comment on the IFR. This final rule addresses public comments received and finalizes the IFR with minor technical changes.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Part 771 Replaces CEQ Regulations
The Agencies finalized Part 771 as their standalone NEPA implementing regulations and removed cross-references to the CEQ regulations; environmental documents accepted or prepared after July 3, 2025 must be developed in accordance with Part 771. The final rule formalizes that Agencies' NEPA procedures now stand on their own and the rule is effective September 1, 2026.
Higher CE Monetary Thresholds
The Agencies raised the categorical exclusion (CE) monetary thresholds for projects receiving limited Federal assistance: projects receiving less than $6,000,000 of Federal funds, or projects with total estimated cost under $35,000,000 and Federal funding under 15% now qualify under the updated CE rules. The final rule amended prior $5,000,000 and $30,000,000 thresholds in 23 CFR 771.117(c)(23) and 771.118(c)(13) to $6,000,000 and $35,000,000 respectively.
Draft EIS Certification Removed
The Agencies removed the certification requirement for Draft Environmental Impact Statements (DEIS) at 23 CFR 771.138(c)(1); lead agencies now must certify timeline and page-limit requirements at completion of the NEPA process for final EISs or combined final EIS/Records of Decision, not at the DEIS stage.
'Reasonably Foreseeable' Becomes The Standard
The final rule replaces CEQ-defined terms like 'direct', 'indirect', and 'cumulative' effects with the NEPA statute-aligned phrase 'reasonably foreseeable' to describe the scope of impacts Agencies will evaluate; the Agencies declined to define 'reasonably foreseeable' in the regulation and noted CEQ provided a guidance appendix on September 29, 2025.
Rule Intends To Speed Reviews, Save Costs
The Agencies treat this final rule as a deregulatory action under E.O. 14192 and state they expect minor cost savings and more expeditious movement of projects through the Federal environmental review process by reducing preparation of extraneous environmental documentation. The Agencies say these cost savings are minor and not quantifiable.
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Key Dates
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