What project sponsors need to know about NEPA implementation

The implementation of the National Environmental Policy Act (NEPA) continues to evolve, reshaping how energy, mining, and other project sponsors interact with federal environmental review requirements. Staying current with these changes can be challenging, but understanding recent shifts in NEPA implementation is critical to maintaining compliance and advancing projects efficiently.

Recent NEPA developments

NEPA has recently undergone significant regulatory and procedural shifts. Coupled with federal workforce reductions and reduced government spending, these changes signal a leaner, more targeted NEPA process.

Key changes include:

Project sponsor-prepared EISs

The 2023 Fiscal Responsibility Act amendments to NEPA authorized project sponsors to prepare Environmental Impact Statements (EISs).

Rescission of CEQ regulations and agency updates

The Council on Environmental Quality’s implementing regulations were rescinded in April 2025, followed by revised procedures from some agencies in June 2025 with other agencies soon to follow.

Judicial interpretation

The U.S. Supreme Court’s decision in Seven County Infrastructure Coalition v. Eagle County, Colorado in May narrowed the scope of NEPA to exclude required consideration of supply-chain related upstream and downstream effects.

Narrowed federal nexus

Agencies are increasingly limiting NEPA reviews to impacts directly tied to federal authority, moving away from the traditional “federalizing” of related actions.

When NEPA applies to project sponsors

Understanding which projects may trigger NEPA is essential for planning and compliance. NEPA may be triggered if a project involves:

• Federal lands or rights-of-way
• Federal permits for species, habitats, or waters of the U.S.
• Federal funding, loans, or grants (though some agencies now exclude certain federally funded projects from NEPA review)

Emerging compliance pathways

Project sponsors now have more alternative routes than ever to comply with NEPA. Some of these options include:

Sponsor-prepared EISs

Among the changes to the NEPA Statute in the 2023 Fiscal Responsibility Act is a provision that allows for project sponsors to prepare their own EISs. Project sponsors were generally always allowed to prepare Environmental Assessments (EAs).

Pay-to-play

As part of the 2025 One Big Beautiful Bill Act, project sponsors are allowed to expedite environmental reviews by paying 125% of the agency’s anticipated costs to prepare or supervise preparation of the EA or EIS. This applies to all agencies.

FAST-41 program

As part of Title 41 of America’s Surface Transportation (FAST) Act, “covered projects” can apply for this program. This provides a structured, timetabled approach for eligible covered projects through the Permitting Council, including clear agency roles, a public permitting timetable, oversight, a dispute resolution mechanism, and a limited statute of limitations for litigation.

DOI emergency permitting

The Department of the Interior’s procedures allow for EIS completion in 28 days and EA completion in 14 days and expedited endangered species and historic resources consultation if the project is a qualifying project pursuant to Executive Order 14154 (Unleashing American Energy) and it is approved by DOI. The emergency procedures apply to actions relating to a wide range of minerals and energy sources, including crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal energy, kinetic hydropower, and critical minerals.

These pathways provide flexibility and speed for projects navigating federal review. Knowing which pathway to follow is critical to your project’s success.

Benefits and risks of a project sponsor-prepared EIS

As a project sponsor, preparing your own EIS can expedite project timelines, reduce costs, and reduce agency bottlenecks. Given the recent reductions in the federal workforce, this approach allows project sponsors to drive the schedule by doing the bulk of the work, with the agency focusing on oversight and review.

However, potential risks include project sponsors not wanting to be the test cases in this process, perceptions of bias, and potential litigation risk in the case of future policy changes. Ultimately, the success of sponsor-prepared EISs depends on strong coordination, clear procedures, understanding and meeting agency expectations, and consistent agency supervision to ensure credibility and compliance with environmental laws.

For more than five decades, ICF has supported agencies and applicants in meeting NEPA requirements. Our team includes experienced practitioners who work closely with clients to interpret regulations, anticipate challenges, and develop practical approaches for navigating the NEPA process. In 2025, we supported the Bull Mountains coal mine to develop the first-ever EIS approved under the accelerated 28-day timeline.

Stay informed on NEPA changes

We track regulatory updates through our NEPA Thought Leadership group so clients receive timely, informed guidance as requirements evolve.