CEQ Releases New Guidance on Environmental Exclusions

In a significant move, the Council on Environmental Quality (CEQ) has released new guidance on the use of categorical exclusions under the National Environmental Policy Act (NEPA). Categorical exclusions are a crucial tool that allows federal agencies to quickly review and approve certain types of actions that have been pre-determined to have minimal environmental impact, without the need for a full-scale environmental assessment or environmental impact statement.

The updated guidance, issued on June 24, 2022, is designed to help federal agencies better navigate the NEPA review process and leverage categorical exclusions more effectively. The goal is to streamline the review of federal actions that have a limited environmental footprint, while still maintaining robust environmental protections.

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Under NEPA, federal agencies are required to assess the potential environmental impacts of their proposed actions. In many cases, certain types of actions can be categorically excluded from this full-scale review process if they have been pre-determined to have minimal environmental impact. The new CEQ guidance provides clarification and updates on how agencies can best utilize these categorical exclusions.

"Categorical exclusions play a vital role in allowing federal agencies to efficiently review and approve actions that have limited environmental consequences," said CEQ Chair Brenda Mallory. "This guidance will help ensure that agencies are leveraging this tool appropriately, while also maintaining strong environmental safeguards."

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The guidance covers several key areas, including:

• Establishing Categorical Exclusions: The process for how agencies can establish new categorical exclusions, including required documentation and public engagement.
• Applying Categorical Exclusions: Criteria for determining when a categorical exclusion is appropriate, and how to handle situations where there may be extraordinary circumstances that require additional review.
• Monitoring and Revising Categorical Exclusions: Procedures for how agencies should monitor the use of categorical exclusions and make updates over time as needed.

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The updated guidance is part of the Biden administration's broader efforts to modernize and streamline the NEPA review process, while still maintaining robust environmental protections. By providing clearer guidelines on categorical exclusions, the CEQ aims to help federal agencies make more efficient and effective use of this important tool.

"This guidance represents an important step forward in our work to ensure that the NEPA process is transparent, predictable, and effective," added Mallory. "We will continue to work with agencies to implement these updates and explore additional ways to enhance environmental reviews."

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The new CEQ guidance on categorical exclusions is now in effect, and federal agencies will be expected to incorporate these updates into their own NEPA implementation procedures. The goal is to strike the right balance between efficiency and environmental protection as the government works to deliver on key priorities.