State DOTs: Are you NEPA-Assignment ready?

Since it was introduced in 2005 as an environmental streamlining measure, the National Environmental Policy Act (NEPA) Assignment program has emerged as a transformative tool for state Departments of Transportation (DOTs) seeking to expedite highway project delivery by assuming NEPA responsibilities.

For the past 20 years, this shift in responsibility has yielded significant benefits for the eight state DOTs who have adopted the program. For the remaining 42 states, NEPA Assignment deserves a second look; recent developments in the current administration offer a compelling case for broader adoption nationwide.

What is NEPA Assignment?

NEPA Assignment allows state DOTs to assume the responsibilities of the Federal Highway Administration (FHWA) for environmental review and approval under NEPA for highway projects. This program allows for faster processing of Categorical Exclusions (CEs), Environmental Assessments (EAs), and Environmental Impact Statements (EISs) by allowing FHWA’s NEPA responsibilities to be assigned to state DOTs through a renewable Memorandum of Understanding (MOU).

3 reasons why you should consider NEPA Assignment

Currently, Alaska, Arizona, California, Florida, Nebraska, Ohio, Texas, and Utah have already adopted NEPA Assignment. These eight states have reported numerous successes, including three key measurable benefits:

• Faster project delivery and regulatory consultation
  State control enables alignment of environmental review with project needs and timelines and reduces the need for additional approvals at the FHWA level. Embedding liaisons and fostering interagency relationships improve responsiveness and cut consultation delays. States with NEPA Assignment report significantly improved project delivery times, from several months to several years.
• Cost savings and efficiency
  Reducing reliance on FHWA for document review minimizes delays and duplication, saving time and money. States can further streamline the NEPA process to continue project momentum without reliance on federal review queues. States like Texas have reinvested these savings into project delivery and environmental enhancements.
• Improved accountability through digital tools & process innovation
  States like Florida and California have developed innovative digital systems and formalized processes to ensure compliance, facilitate audits, and coordinate reporting to FHWA, regulatory and permitting agencies, and other stakeholders. These tools support new responsibilities and improved accountability to support a streamlined NEPA review process.

Recent developments for NEPA Assignment

For the states that have not pursued NEPA Assignment, recent developments provide a growing number of reasons to apply. The Secretary of Transportation’s letter to governors and state DOT chief executives of non-Assignment states encouraging them to assume NEPA Assignment underscores a growing reality: states, not the federal government, are “best positioned to coordinate highway infrastructure planning and project delivery ... and are also incentivized to reduce project costs, shorten project timelines, lead public engagement, and resolve administrative hurdles.”

Additionally, the Secretary recently released revisions to FHWA’s NEPA implementing procedures (23 CFR Part 771), introducing enforceable deadlines and page limits to expedite infrastructure development and reduce costs.

The Secretary’s collective actions, and the measurable benefits realized by NEPA Assignment states, make clear that NEPA Assignment is instrumental for your project delivery. States that do not pursue NEPA Assignment could risk longer delays in processing NEPA documents, missed funding windows, and diminished responsiveness to local infrastructure needs.

Your roadmap for getting NEPA-Assignment ready

As critical infrastructure demands rise and federal resources tighten, NEPA Assignment offers state DOTs a proven path to faster, more efficient project delivery. However, many states have indicated that the primary hurdles to pursuing NEPA Assignment include a lengthy application process, extensive resources needed for audits/monitoring, and legislative difficulty in achieving a waiver of sovereign immunity to assume liability.

States interested in NEPA Assignment can begin by starting with the less extensive CE Assignment Program (Categorical Exclusion Assignment [23 U.S.C. 326]), building on their already established CE procedures under FHWA. This approach allows states to assess their environmental program capacity, identify gaps and, if desired, transition toward full Program Assignment (Program Assignment [23 U.S.C . 327]) after experiencing initial success.

State DOTs need a clear plan to achieve NEPA Assignment success. That’s why we’ve created a straightforward roadmap on how to navigate the process.

Roadmap: NEPA-Assignment Ready

Phase 1: Internal assessment & readiness

• Evaluate current NEPA processes: Review how DOT currently handles Environmental Assessments (EAs), Environmental Impact Statements (EISs), and Categorical Exclusions (CEs).
• Gap analysis: Identify areas where DOT’s procedures differ from FHWA’s NEPA standards.
• Staffing and training: Ensure environmental staff are trained in federal NEPA requirements and documentation.

Phase 2: Stakeholder engagement

• Coordinate with FHWA: Begin informal discussions to assess feasibility and expectations.
• Engage state agencies: Collaborate with the DOT Environmental Quality Division and other relevant agencies.
• Public outreach: Prepare for public comment periods and transparency requirements.

Phase 3: Application development

• Draft application: Include organizational structure, legal authority, environmental procedures, and quality assurance plans.
• Legal compliance: Ensure state law allows the assumption of federal responsibilities.
• Submit to FHWA: Include a draft Memorandum of Understanding (MOU).

Phase 4: Public review & finalization

• Public notice: Publish the draft MOU for public comment (minimum 30 days).
• Revise and finalize MOU: Address public and FHWA feedback.
• Sign MOU: Officially transfer NEPA responsibilities to DOT.

Phase 5: Implementation & oversight

• Begin NEPA reviews under state authority: DOT now acts in place of FHWA for NEPA compliance.
• Annual audits: FHWA typically conducts regular audits for the first 4 years.
• Continuous improvement: Use audit feedback to refine processes.

The bottom line

The path to NEPA Assignment readiness is achievable—and increasingly essential. With federal resources stretched and infrastructure needs growing, now is the time for state DOTs to take control of their environmental review process and gain the benefits of NEPA Assignment.

With the right roadmap, state DOTs can lead the way in delivering projects that are faster, smarter, and more responsive to community needs. For example, ICF supported the California Department of Transportation (Caltrans) in the development of their application for NEPA Assignment under the Surface Transportation Project Delivery Pilot Program. After helping Caltrans apply for and transition to the permanent NEPA Assignment program, we’ve supported its FHWA audits, QA/QC procedures, legislative reporting, training tools, and MOU renewals—improving the speed, costs, efficiency, and stakeholder engagement associated with project delivery.

Want to talk to our team of experts?

Reach out to us today and leave a note requesting more information or support with NEPA Assignment.