In the early days of his administration, President Trump declared his intentions to streamline the permitting process. One important facet of that process is evaluating the environmental impacts of a project and getting approval under the National Environmental Policy Act (NEPA). The process traditionally takes years to complete, but after a set of new Trump executive orders, a presidential memo, and a Supreme Court ruling that narrowed the scope of NEPA review, contractors can expect a significantly streamlined process.
Last week, more than 15 agencies, including the Department of Transportation, the Department of Defense, and the Department of Energy, announced revised NEPA procedures consistent with the statute and the President’s executive orders.
These agencies announced “common sense reforms to ensure the NEPA process does not cause unnecessary delays or stands in the way of American free enterprise.” The reforms were directed by President Trump’s Unleashing American Energy Executive Order 14154, issued on January 20, 2025, which calls for unleashing American energy dominance through efficient permitting.
The changes are focused on rescinding regulations that had to do with the Council on Environmental Quality’s (CEQ) old NEPA implementing regulations, which were themselves rescinded on February 25, 2025. Deputy Energy Secretary James Danly says they are “reestablishing a legally sound permitting regime that is disciplined, predictable, and fast. Agencies finally have the authority to conduct reviews efficiently, avoid duplicative reviews, and deliver timely decisions consistent with the law.” CEQ has also announced a number of new online tools to track NEPA work and to chart the way for improving permitting practices.
The new procedures share one key aspect: they all emphasize the statutory deadlines contained in the Fiscal Responsibility Act. Under normal circumstances, the deadline to prepare an environmental assessment (EA) is one year and the deadline to prepare an environmental impact statement (EIS) is two years. Page limits (75 pages for EAs and 150 pages for EISs) will also be strictly enforced under the new regime.
The agencies weren’t alone in making changes to NEPA. In the One Big Beautiful Bill Act, Congress made changes to Section 112 of NEPA. Under the amended language, a project sponsor can expedite the environmental review process by paying a fee.. But under this new provision, project sponsors who pay the fee (125% of the anticipated cost of preparing the document) are guaranteed a complete EA in 180 days or a complete EIS in one year. Many of the agencies, including the Departments of Defense and Energy, updated their procedures to account for this new provision specifically.
Permitting reform has long been a priority for AGC and our General Counsel Leah Pilconis recently testified on the subject in front of the Senate Committee on the Environment and Public Works. These changes, both in the agencies and in Congress, speak to the strong voices that have supported this reform. We will continue to engage on the subject by reviewing the newly announced procedures, commenting on the rules in the Federal Register, and helping contractors to identify the best pathways to compliance.
For more information on the announcements or permitting reform at large, please contact Spencer Phillips. The new agency procedures can be found below:
- Army Corps of Engineers
- Department of Agriculture
- Department of the Air Force
- Department of the Army
- Department of Defense
- Department of Energy
- Department of the Interior
- Department of the Navy
- Department of Transportation
- Federal Aviation Administration
- Federal Energy Regulatory Commission
- Federal Highway Administration
- Federal Railroad Administration
- Federal Transit Administration
- National Highway Traffic Safety Administration