States Sue Biden Administration Over NEPA Reforms, Cite Environmental Justice and Climate Change Concerns

Hillel Aron

Twenty states, including Montana, Texas, and Florida, have filed a lawsuit against a federal agency over regulatory reforms to the National Environmental Policy Act (NEPA) finalized by the Biden administration. The reforms are set to go into effect on July 1, and the states, mostly considered “red states” that tend to elect Republicans, are challenging the changes.

The states argue that the new policy changes include the elevation of environmental justice and climate change considerations without textual basis, politically motivated fast-tracking of favored projects, and the creation of new mitigation obligations. They claim that these changes will create an open-ended obligation and an impossible-to-meet standard, leading to delays and cost overruns in federally-funded infrastructure projects.

NEPA, signed into law in 1969 by President Richard Nixon, requires federal agencies to evaluate the environmental effects of their decisions by preparing environmental impact statements for new policies and regulations. The President’s Council on Environmental Quality (CEQ) is responsible for overseeing NEPA, and under the Trump administration, changes were made to modernize and simplify the regulations. However, the Biden administration reversed course and introduced its own set of reforms, with Phase 1 released in 2022 and Phase 2 published in May 2024.

In a press release, the Biden administration stated that the reforms would accelerate America’s clean energy future, simplify the process of rebuilding the nation’s infrastructure, advance environmental justice, and promote public input. The changes also require agencies to consider the effects of climate change in environmental reviews and identify reasonable alternatives to mitigate climate impacts.

The 20 states argue in their lawsuit that the Biden administration’s reforms fundamentally change NEPA from a procedural law to one focused on substance, requiring agencies to find ways to mitigate environmental impacts. They claim that the new requirements will add delays to the NEPA process and frustrate the goals of recent federal laws aimed at timely delivery of infrastructure projects.

The states list more than a dozen infrastructure projects, including highways, bridges, airport improvements, and flood management systems, that could be delayed by the new policies. They are seeking to vacate the new rule and have the Council on Environmental Quality issue a new rule that aligns with NEPA.

Overall, the lawsuit highlights the ongoing debate over environmental regulations and the balance between environmental protection and infrastructure development. The outcome of this legal challenge could have significant implications for future environmental policy decisions at the federal level.