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   Congressional Research Service
SInforming   the legislative debate since 1914


                                                                                                   May  31, 2023

Environmental Reviews and Permitting: Pending Legislation


Overvkew of the Review Process Under
the  National E nviron mental Policy Act
The National Environmental Policy Act (NEPA, 42 U.S.C.
§ 4321 et seq.) mandates environmental review of many
agency actions, including issuing permits. NEPA requires
that federal agencies consider the potential impacts of their
actions that may affect the human environment. If a major
federal action could result in significant impacts, NEPA
requires the preparation of an Environmental Impact
Statement (EIS) that analyzes effects of the proposed action
and alternatives to that action. An agency may prepare an
Environmental Assessment (EA) to decide whether to
prepare an EIS or instead issue a Finding of No Significant
Impact. An agency need not prepare either document if a
proposed action is unlikely to have a significant impact and
falls under a categorical exclusion that is, if the action is a
type of activity that an agency has already determined does
not usually result in a significant impact. Categorical
exclusions apply to the vast majority of agency decisions.

N  E PA  and   Permitting Decisions
NEPA  reviews often contemplate a wide range of potential
impacts early in the decisionmaking process. An agency
must include in a draft EIS a list of all federal permits,
licenses, and other authorizations that must be obtained in
implementing the proposal. Examples of laws that impose
such requirements include the Clean Water Act, 33 U.S.C.
§ 1251 et seq.; Endangered Species Act, 16 U.S.C. § 1531
et seq.; and National Historic Preservation Act, 54 U.S.C.
§ 300101 et seq.

Title 41 of Fixing America's Surface Transportation Act
(FAST-41, 42 U.S.C. §§ 4370m-4370m12)   contains
additional permitting coordination requirements for
covered projects. Those projects include federal
infrastructure projects with costs over $200 million likely to
require multiple federal permits and/or EISs. FAST-41
establishes two-year completion goals and a unified
schedule for environmental reviews of such projects.

Requirements, time frames, and processes can vary across
agencies and authorities. Agencies typically promulgate
regulations under both NEPA and their specific statutory
authorities to address review requirements. Applicable
state, tribal, and local requirements may also be included.

Considerations for the I I 8th Congress
The 118th Congress has seen more than 60 bills referencing
NEPA   since January 2023. The Fiscal Responsibility Act of


2023, H.R. 3746, contains provisions related to NEPA and
permitting, including some provisions originally introduced
in other bills. Table 1 compares the provisions of H.R.
3746 to existing law. While proposals related to NEPA
vary, many would address the following issues:

Single document: Existing NEPA  regulations set a goal for
agencies to develop draft EISs concurrent with and
integrated with environmental impact analyses required by
other federal laws and executive orders. Some proposals
seek to require more collaboration, including a default
requirement of a single document that incorporates multiple
agencies' analysis and/or permitting decisions for the same
project. Some also set page limits on documents.

Time  limits: Some proposals seek to impose statutory time
limits for environmental reviews, including two years for a
full EIS and one year for an EA. Others impose a two-year
limit for overall permitting decisions. NEPA regulations
contain similar goals, although they allow senior agency
officials to extend deadlines as necessary. Some proposals
require an agency that misses a deadline to pay a project
sponsor. Others are silent on the consequences.

Inter-agency collaboration and cooperative federalism:
Many  permitting decisions fall outside federal jurisdiction.
States, tribes, and local authorities can play important roles
in permitting decisions. While some proposals would
preempt existing state authority for specific decisions (e.g.,
transmission line siting), others encourage states, tribes, and
local authorities to jointly undertake reviews and permitting
decisions with federal agencies.

Community   engagement  and public comments:  Many
environmental reviews require an opportunity for public
comment  during the review process. Some proposals would
extend public comment period times or require a new
community  impact assessment. Others would set time limits
that could affect agencies' abilities to solicit, consider, and
respond to comments before a final decision.

Judicial review: Typically, the Administrative Procedure
Act (APA, 5 U.S.C. § 551 et seq.) governs judicial review
of agency decisions. The applicable statute of limitations
provides six years to file a claim. Some proposals would
provide shorter time limits to file a challenge to NEPA
analysis, would exempt categorical exclusions from suit,
would require a plaintiff to have first raised the matter with
the agency, and would direct courts to expedite decisions.

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