On July 3, 2025, the U.S. Department of Agriculture (USDA) published an interim final rule (the “Interim Final Rule”) in the Federal Register, effective immediately. This rule significantly revises the USDA’s regulations at 7 C.F.R. part 1b, fundamentally altering how USDA agencies—including the U.S. Forest Service—implement the National Environmental Policy Act (NEPA). The USDA is currently soliciting public comments on the Interim Final Rule through July 30, 2025.
Background and Rationale
The Interim Final Rule is a direct response to three recent developments:
- The Council on Environmental Quality’s (CEQ) rescission of its NEPA regulations in April 2025;
- Congressional amendments to NEPA under the Fiscal Responsibility Act of 2023;
- The U.S. Supreme Court’s decision in Seven County Infrastructure Coalition v. Eagle County, 145 S. Ct. 1497 (2025), which reaffirmed that NEPA imposes procedural, not substantive, requirements.
Below are key takeaways from USDA’s updated NEPA procedures:
Department-Wide Consolidation and Revision of NEPA Procedures
- The Interim Final Rule rescinds separate NEPA regulations for the Forest Service and other USDA agencies, consolidating all NEPA procedures within 7 C.F.R. part 1b.
- Unified processes now govern environmental reviews across the Department, including categorical exclusions (CEs), environmental assessments (EAs), and environmental impact statements (EISs).
- The Interim Final Rule established streamlined processes to account for the Seven County decision and directions from President Trump to reduce regulatory burdens.
- While agency-specific NEPA rules are eliminated, personnel may continue to use categorical exclusions now incorporated into the revised USDA-wide list at 7 C.F.R. § 1b.4.
Streamlining and Statutory Alignment
- The Interim Final Rule incorporates statutory deadlines and page limits established by the Fiscal Responsibility Act of 2023. USDA must report annually to Congress on any EA or EIS that does not meet these deadlines.
- The Interim Final Rule adopts the statutory definition of “major Federal action” and clarifies circumstances where NEPA does not apply, such as non-discretionary decisions or projects with minimal federal involvement.
- The Interim Final Rule establishes procedures for EAs and EISs prepared by applicants or third parties.
Simplified Documentation and Enhanced Efficiency
- The definition of “effects” is now limited to environmental changes that are “reasonably foreseeable and have a reasonably close causal relationship” to the proposed action or alternatives. Consistent with Seven County, the Interim Final Rule excludes consideration of effects that are remote in time or geography, the result of a lengthy causal chain, or outside the agency’s regulatory authority.
- Agencies are no longer required to publish draft EISs and have discretion in structuring NEPA documents, provided statutory requirements are met.
- Final EISs need not be published before issuing Records of Decision (RODs); implementation may begin once notice of the final EIS is published in the Federal Register and the ROD is posted on a USDA website.
- Public comment is required only in response to a Notice of Intent, in line with 42 U.S.C. § 4336a(c). Agencies are not required to solicit public comment on EAs or EISs, but may do so at any reasonable point, with an emphasis on addressing substantive comments.
- The Interim Final Rule introduces the “Finding of Applicability and No Extraordinary Circumstance” (FANEC), requiring agencies to affirmatively determine that a CE applies and that no extraordinary circumstances exist.
Emergency Provisions
- The Interim Final Rule establishes streamlined NEPA procedures for emergency actions, distinguishing between immediate and urgent-but-not-immediate actions.
Next Steps
The USDA is accepting public comments on the Interim Final Rule until July 30, 2025. A final rule is anticipated later this year. In the interim, the Forest Service and other USDA agencies have discretion to implement the new procedures immediately or transition as appropriate, depending on the status of ongoing NEPA reviews.
Implications
Legal and compliance professionals should closely review the revised procedures, particularly the consolidation of NEPA processes, new documentation requirements, and changes to public participation. The streamlined approach and statutory alignment may affect the timing and structure of environmental reviews for USDA actions going forward.