Who’s the Boss? DC Circuit Says CEQ Can't Call the Shots
Originally published for customers Friday, November 15.
What’s the issue?
The U.S. Court of Appeals for the D.C. Circuit has ruled that the Council on Environmental Quality (CEQ) lacks authority to issue binding regulations implementing the National Environmental Policy Act (NEPA), fundamentally challenging decades of environmental review practices.
Why does it matter?
This decision could reshape how federal agencies conduct environmental reviews, potentially affecting thousands of infrastructure projects and creating uncertainty in permitting processes that rely on CEQ's regulatory framework.
What’s our view?
Agencies still must comply with NEPA, and while the ruling addresses legitimate separation of powers concerns, it risks fragmenting NEPA implementation across agencies and may paradoxically complicate the permitting process by removing standardized guidelines. Chances of rehearing are greater than in other cases due to the exceptional importance of the issue.