On July 3, 2025, the U.S. Department of Energy (DOE) published an Interim Final Rule revising its implementation of the National Environmental Policy Act (NEPA). The rule was issued without public notice and comment and became effective immediately, relying on the “good cause” exception under the Administrative Procedure Act (APA). DOE justified this approach based on alignment with the Supreme Court’s decision in Seven County Infrastructure Coalition v. Eagle County, Colorado, 145 S. Ct. 1497 (2025), which affirmed NEPA’s procedural nature and agencies’ discretion to streamline review.
This change is aligned with recent actions signaling a deliberate shift toward prioritizing energy infrastructure speed, supply, and system resilience — a departure from the traditional procedural safeguards that had previously been in place.
-
Executive Order 14154 directed agencies to roll back climate and appliance regulations, eliminate the social cost of carbon from policymaking, and streamline permitting by revoking prior environmental and clean energy directives.
-
Executive Order 14156 declared a national energy infrastructure emergency, directing agencies exercise any lawful emergency authorities “to facilitate the identification, leasing, siting, production, transportation, refining, and generation of domestic energy resources” and to expedite the completion of authorized infrastructure, energy, environmental, and natural resources projects.
Federal agencies, including the DOE, are under explicit instructions to eliminate procedural delays. The NEPA overhaul adopts this by removing procedures from regulations and replacing them with guidance in a manner that enables faster decision-making with fewer formal constraints. However, the legal viability of projects may depend on how carefully environmental impacts are still assessed and documented.
Key Changes to DOE’s NEPA Regulations
The rule significantly restructures DOE’s NEPA framework by eliminating most of the formal, codified procedures previously found in its regulations. Instead, DOE has shifted the bulk of its environmental review process into internal agency guidance, which can be revised at any time without going through public rulemaking. What remains in regulation is limited to a narrow set of provisions, primarily those governing categorical exclusions and emergency response authority. The key changes include:
-
Shifted most of 10 CFR Part 1021 into a guidance document: DOE removed NEPA procedures, including environmental assessments (EAs), environmental impact statements (EISs), public scoping, and review timelines from the regulations.
-
Limited Remaining Regulatory Content: The exemptions listed in appendices A and B will now serve as the central framework for evaluating whether a NEPA review is required.
-
Appendix A: Lists project types excepted from NEPA review (e.g., CERCLA cleanups, natural gas authorizations, Presidential permits).
-
Appendix B: Lists categorical exclusions for routine or low-impact activities.
-
-
Emergency authority preserved: DOE retains authority to bypass environmental review requirements during emergencies and consult with the Council on Environmental Quality (CEQ) after the fact.
-
Eliminated 10 CFR Part 205, Subpart W, sections 321, 328, and 329: DOE rescinded NEPA and APA requirements for obtaining Presidential permits (a required authorization for cross-border electric transmission projects), further consolidating energy decision-making within the executive branch.
Strategic Considerations Moving Forward
While the rule represents a clear effort to streamline DOE’s environmental review process and accelerate project approvals, a topic of concern with numerous developers of energy generation facilities, it also introduces new complexities for applicants whose projects fall within DOE jurisdiction. The removal of binding procedures in favor of agency guidance reduces regulatory certainty. As a result, environmental compliance will need to be approached with greater strategic awareness:
-
Guidance Can Change Quickly: As guidance procedures can without the same notice requirements as regulations, project managers should monitor DOE policy updates closely to stay in compliance.
-
Future Regulatory Shifts Are Likely: NEPA has long been subject to political and judicial shifts. Projects that begin under streamlined rules may be evaluated under stricter standards later, particularly if challenged or delayed.
-
State Requirements Remain in Force: Many projects will still trigger review under state environmental protection acts, tribal government laws and regulations, or local ordinances.
-
Minimizing Public and Judicial Interference: Stripping regulation means fewer known and tested tools for stakeholders to challenge agency decisions, such that stakeholders may seek unexpected and new means to challenge projects.
Does this change in approach reflect a new regulatory philosophy: binding regulations, litigation risk and environmental review delays treated as national vulnerabilities, and not as accountability mechanisms?
Bottom Line
The Department of Energy’s new NEPA rule marks a major shift in how federal environmental reviews will be conducted for DOE-supported projects. For many, this opens the door to faster approvals and fewer procedural hurdles, especially for transmission, cross-border infrastructure, and low-impact or statutorily exempt actions.
However, this speed comes with tradeoffs. With most DOE NEPA procedures now placed in internal agency guidance rather than in its regulations, the rules are more flexible but also less predictable. Projects that move forward without carefully documenting environmental impacts may still face scrutiny under state, tribal, or judicial review. In a regulatory environment increasingly shaped by executive policy, today’s streamlined process may not protect a project from future legal or administrative challenges. Comments on this rulemaking can be made at https://www.regulations.gov, and are due by August 4, 2025 (Docket No. DOE–HQ–2025–0026).
If you are evaluating eligibility under a categorical exclusion, pursuing a Presidential permit for constructing or operating electric transmission facilities at the U.S. international border, or seeking DOE funding, now is the time to reassess your approach to NEPA compliance. Contact Sean Neal or Keith Gordon to discuss how the new NEPA rule impacts your projects and how to position your generation facility development and utility planning for success in this evolving regulatory landscape.
Article By DWGP Summer Associate Adriana Chavez – UC Davis School of Law, May 2026