CEQ Publishes Final Rule Rescinding NEPA Regulations Effective January 2026
On January 6, 2026, the Council on Environmental Quality finalized a rule rescinding all regulations related to the National Environmental Policy Act, following significant reforms initiated by Executive Order 14154 in early 2025. These changes aimed to streamline regulatory reviews for energy and infrastructure projects, supported by the One Big Beautiful Bill Act. However, challenges persist, with reports indicating that $64 billion in data center projects have faced delays or opposition at the state and local levels.
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On January 6, 2026, the Council on Environmental Quality published a Final Rule adopting the interim final rule from February 2, 2025, rescinding all regulations implementing the National Environmental Policy Act. This action followed significant NEPA reforms in 2025, initiated by Executive Order 14154 signed by President Trump on January 20, 2025.
The reforms aimed to streamline regulatory review for energy and infrastructure projects. The CEQ issued guidance on September 29, 2025, directing federal agencies to expedite NEPA procedures. Legislative changes, particularly the One Big Beautiful Bill Act signed on July 4, 2025, emphasized efficient reviews. Despite reforms, ongoing challenges from state and local opposition to projects remain, with reports indicating $64 billion in data center projects have been blocked or delayed.
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