NEPA Reviews Face New 2-Year EIS Deadline and Page Limits Under Fiscal Responsibility Act

The National Environmental Policy Act (NEPA) has undergone significant statutory revisions through the Fiscal Responsibility Act (FRA) of 2023, introducing mandatory deadlines and page limits for environmental reviews. These changes, signed into law on June 3, 2023, aim to streamline the environmental review process for federal projects. Thomas Hochman, commenting on these developments, noted that the FRA amendments to NEPA provide a clear framework for agencies to interpret and institutionalize definitional changes that were previously not fully implemented.

Among the key changes, the FRA mandates that Environmental Impact Statements (EISs) be completed within two years and Environmental Assessments (EAs) within one year. The clock for these deadlines begins earlier than before, either when an agency determines a review is needed, an applicant's right-of-way application is complete, or a notice of intent is issued. Additionally, the Act imposes strict page limits: EISs are capped at 150 pages (300 for extraordinarily complex projects) and EAs at 75 pages, excluding appendices and citations. The legislation also clarifies the role of a single lead federal agency in coordinating reviews and allows project sponsors to prepare environmental documents under agency supervision.

The Council on Environmental Quality (CEQ) has moved to incorporate these statutory changes through its Bipartisan Permitting Reform Implementation (BPRI) rule, also known as the Phase 2 rule, which became effective on July 1, 2024. This rule aligns CEQ's regulations with the FRA amendments and addresses aspects like the definition of "major federal action" and the integration of environmental justice considerations. However, the CEQ's Phase 2 rule has faced legal challenges, with some states arguing it exceeds CEQ's authority and could delay essential projects.

The statutory nature of these amendments, unlike previous regulatory shifts, suggests a more enduring impact on environmental review processes. Thomas Hochman's perspective highlights that these changes offer a concrete mechanism for agencies to adopt and apply the revised NEPA interpretations. The overarching goal is to enhance efficiency and predictability in environmental reviews, potentially accelerating infrastructure and development projects across the nation.