The U.S. Department of Energy has announced significant reforms to its National Environmental Policy Act (NEPA) procedures, aiming to streamline permitting for energy projects.
The U.S. Department of Energy (DOE) today unveiled a sweeping overhaul of its National Environmental Policy Act (NEPA) procedures, a move designed to dismantle what officials describe as "permitting paralysis" and unleash American energy dominance. The announcement, made on June 30, 2025, follows the publication of an interim final rule rescinding all previous NEPA regulations and the issuance of new, streamlined guidance for the Department.
Energy Secretary Chris Wright lauded the reforms as a fulfillment of President Trump’s promise to expedite infrastructure development. "President Trump promised to break the permitting logjam, and he is delivering," said Secretary Wright. "America can and will build big things again, but we must cut the red tape that has brought American energy innovation to a standstill and end this era of permitting paralysis. These reforms replace outdated rules with clear deadlines. Build, baby, build!"
The initiative aims to simplify NEPA compliance, reduce construction costs, eliminate years-long delays, and avoid environmental reviews from stalling American energy production and infrastructure. The announcement specifically fulfills Trump’s Executive Order 14154, "Unleashing American Energy," and implements reforms enacted by Congress through the 2023 BUILDER Act.
Key reforms introduced by the DOE’s updated NEPA procedures include:
• Eliminating Outdated Procedures: Rescinding agency procedures, many of which had not been revised since the 1980s, while maintaining high environmental standards.
• Reduced Completion Times: Cutting the maximum Environmental Assessment (EA) and Environmental Impact Statement (EIS) report completion time from three years to two years.
• Lead Agency Designation: Requiring the designation of a "lead agency" to clarify responsibilities, mandate coordination among agencies, and ensure collaboration on a single environmental document.
• Strict Deadlines and Page Limits: Implement rigorous deadlines and page limits to provide certainty for infrastructure investment and prevent "paralysis by analysis."
• Common Sense Review: Directing agencies to rely only on verified scientific studies and avoid contemplating "wildly unfathomable scenarios" outside their legal authority.
• Increased Transparency: Enhancing transparency and allowing project sponsors greater participation in the review process.
• Maximized Categorical Exclusions: Directing agencies to maximize the use of streamlined "categorical exclusions" for activities regularly conducted and widely understood to have no significant environmental impact.
The Department of Energy's (DOE) updated procedures now align with the Supreme Court's "Seven County" decision. This ruling limits the need for agencies to analyze greenhouse gas (GHG) effects from activities outside their direct control, preventing "radical climate change analysis" of separate projects beyond the DOE's regulatory authority.
Additionally, the new procedures specify actions exempt from NEPA review. These include emergency orders under section 202(c) of the Federal Power Act, Presidential Permits, and authorizations for natural gas imports from any country and exports to free-trade agreement nations.
