On July 3, 2025, the Department of the Interior (the “Department”) published an interim final rule (“Interim Final Rule”) in the Federal Register, effective immediately, that largely rescinds the Department’s regulations at 43 C.F.R. part 46 implementing the National Environmental Policy Act (“NEPA”). The Department is soliciting public comments on the Interim Final Rule through August 4, 2025.
Key Regulatory Changes
The Interim Final Rule rescinds the majority of the Department’s NEPA regulations at 43 C.F.R. part 46, retaining and revising only select provisions. The remaining regulations now focus on emergency response procedures, categorical exclusions, and the preparation of environmental documents by project applicants and contractors. All other NEPA procedures will be retained in the Department’s NEPA Handbook, incorporated within the Departmental Manual at 516 DM 1.
Summary of Retained and Revised Regulations
- Emergency Responses (43 C.F.R. § 46.150). The Department maintains the provision allowing bureaus, in emergency situations, to bypass NEPA analysis for actions urgently needed to mitigate harm to life, property, or significant resources. For other emergency actions not immediately necessary to protect these interests, bureaus may utilize alternative NEPA compliance arrangements.
- Categorical Exclusions (43 C.F.R. §§ 46.205, 46.210, 46.215). The Department has revised its categorical exclusion framework as follows:
- Application of Multiple Categorical Exclusions. New provisions clarify that bureaus may apply multiple categorical exclusions to a single action and may rely on determinations made by other agencies or Department bureaus.
- Procedures for Categorical Exclusions. The process for establishing, modifying, or removing categorical exclusions is now specified, with explicit clarification that such modifications do not themselves trigger NEPA analysis.
- Removal of Certain Exclusions. Categorical exclusions for hazardous fuels reduction using prescribed fire and for post-fire rehabilitation activities have been eliminated.
- Extraordinary Circumstances. Three categories have been removed from the list of “extraordinary circumstances” that preclude the use of categorical exclusions: actions with highly controversial environmental effects; actions potentially violating environmental protection laws; and actions with disproportionately high and adverse effects on low-income or minority populations.
- References to Executive Orders. All references to Executive Orders in the list of categorical exclusions have been removed.
- Environmental Documents (43 C.F.R. §§ 46.106, 46.107). The Department has retained and revised the regulation governing environmental documents prepared by contractors and project applicants, and has added a new section addressing related procedures.
Transition to the NEPA Handbook
The Department will house most of its NEPA implementation procedures in an updated section of the Departmental Manual (516 DM 1), referred to as the NEPA Handbook. The Department justifies this move by characterizing NEPA as a “purely procedural statute” with requirements applicable solely to internal processes. The Handbook’s non-codified status is intended to provide greater flexibility and responsiveness to evolving legal and policy developments.
The 124-page Handbook follows a similar structure to the Council on Environmental Quality’s (CEQ) prior NEPA regulations at 40 C.F.R. part 1500 and is organized into several key sections:
- NEPA and Agency Planning
- Environmental Impact Statements (EIS)
- Efficient Environmental Reviews
- Agency Decision-Making
- Procedures for Applicant- and Contractor-Prepared Environmental Documents
Three appendices provide further detail:
- Actions Normally Requiring an Environmental Assessment (EA) or EIS
- Bureau Categorical Exclusions
- Implementation Guidance to Bureaus, which sets forth additional guidance on nine NEPA concepts, including scoping, public involvement, use of existing NEPA documents, analytical requirements, significance determinations, and documentation protocols.
Notable Handbook Provisions and Their Implications
- Alignment with Statutory Amendments. The Handbook incorporates statutory changes from the Fiscal Responsibility Act of 2023, including definitions at 42 U.S.C. § 4336e and new deadlines and page limits for EAs and EISs.
- Reduced Public Participation and Public Review. The Handbook narrows public participation requirements in the EIS process. Unlike prior CEQ regulations, which required public comment on both the Notice of Intent (NOI) and draft EIS, and mandated publication of a final EIS before a Record of Decision (ROD), the Handbook only requires public comment in response to the NOI, consistent with 42 U.S.C. § 4336a(c). Moreover, there is no requirement to release a draft or final EIS prior to issuance of a ROD.
- Applicant-Prepared NEPA Documents. Statutory amendments to NEPA allow project applicants and their contractors to prepare EAs and EISs. The Handbook further allows applicants and their contractors to prepare Findings of No Significant Impact (FONSIs) and decision documents. The Handbook then details the necessary independent review and evaluation of NEPA documents by the relevant bureau.
- Implementation of Supreme Court Precedent. In response to the Supreme Court’s decision in Seven County Infrastructure Coalition v. Eagle County, the Handbook limits the scope of effects that must be considered in NEPA documents. Bureaus are not required to analyze environmental effects from other projects that are (1) separate in time or place, (2) outside the bureau’s regulatory authority, or (3) independently undertaken by third parties.
Conclusion
The Department’s Interim Final Rule represents a significant restructuring of its NEPA compliance framework, with immediate implications for agency procedures, public participation, and the scope of environmental review. Legal and compliance professionals should review the revised regulations and Handbook to assess impacts on ongoing and future projects. Comments on the Interim Final Rule must be submitted by August 4, 2025.