National Environmental Policy Act Implementing Regulations Revisions

Published date07 October 2021
Citation86 FR 55757
Record Number2021-21867
SectionProposed rules
CourtCouncil On Environmental Quality
Federal Register, Volume 86 Issue 192 (Thursday, October 7, 2021)
[Federal Register Volume 86, Number 192 (Thursday, October 7, 2021)]
                [Proposed Rules]
                [Pages 55757-55769]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-21867]
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                COUNCIL ON ENVIRONMENTAL QUALITY
                40 CFR Parts 1502, 1507, and 1508
                [CEQ-2021-0002]
                RIN 0331-AA05
                National Environmental Policy Act Implementing Regulations
                Revisions
                AGENCY: Council on Environmental Quality.
                ACTION: Notice of proposed rulemaking.
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                SUMMARY: The Council on Environmental Quality (CEQ) is proposing to
                modify certain aspects of its regulations for implementing the
                procedural provisions of the National Environmental Policy Act (NEPA)
                to generally restore regulatory provisions that were in effect for
                decades before being modified in 2020. CEQ proposes these changes in
                order to better align the provisions with CEQ's extensive experience
                implementing NEPA, in particular its perspective on how NEPA can best
                inform agency decision making, as well as longstanding Federal agency
                experience and practice, NEPA's statutory text and purpose, including
                making decisions informed by science, and case law interpreting NEPA's
                requirements. The proposed rule would restore provisions addressing the
                purpose and need of a proposed action, agency NEPA procedures for
                implementing CEQ's NEPA regulations, and the definition of ``effects.''
                CEQ invites comments on the proposed revisions.
                DATES:
                 Comments: CEQ must receive comments by November 22, 2021.
                 Public meeting: CEQ will conduct two online public meetings for the
                proposed rule on Tuesday, October 19, 2021, from 1 to 4 p.m. EDT, and
                Thursday, October 21, 2021 from 5 to 8 p.m. EDT. To register for the
                meetings, please visit CEQ's website at www.nepa.gov.
                ADDRESSES: You may submit comments, identified by docket number CEQ-
                2021-0002, by any of the following methods:
                 [ssquf] Federal eRulemaking Portal: https://www.regulations.gov.
                Follow the instructions for submitting comments.
                 [ssquf] Fax: 202-456-6546.
                 [ssquf] Mail: Council on Environmental Quality, 730 Jackson Place
                NW, Washington, DC 20503.
                 Instructions: All submissions received must include the agency
                name, ``Council on Environmental Quality,'' and docket number, CEQ-
                2021-0002, for this rulemaking. All comments received will be posted
                without change to https://www.regulations.gov, including any personal
                information provided. Do not submit electronically any information you
                consider to be private, Confidential Business Information (CBI), or
                other information, the disclosure of which is restricted by statute.
                 Docket: For access to the docket to read background documents or
                comments received, go to https://www.regulations.gov.
                FOR FURTHER INFORMATION CONTACT: Amy B. Coyle, Deputy General Counsel,
                202-395-5750, [email protected].
                SUPPLEMENTARY INFORMATION:
                I. Background
                 On January 1, 1970, President Nixon signed into law the National
                Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et seq.
                Congress enacted NEPA by a unanimous vote in the Senate and a nearly
                unanimous vote in the House \1\ to declare a national policy to promote
                environmental protection for present and future generations. NEPA was
                established to ``encourage productive and enjoyable harmony'' between
                humans and the environment; to promote efforts that will prevent or
                eliminate damage to the environment and biosphere and stimulate the
                health and welfare of people; and to enrich the understanding of the
                ecological systems and natural resources important to the Nation. 42
                U.S.C. 4321.
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                 \1\ See Linda Luther, Cong. Rsch. Serv., RL33152, The National
                Environmental Policy Act: Background and Implementation (2008),
                https://crsreports.congress.gov/product/details?prodcode=RL33152.
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                 To achieve these objectives, NEPA makes it the continuing policy of
                the Federal Government to use all practicable means and measures to
                create and maintain conditions under which humans and nature can exist
                in productive harmony and fulfill the social, economic, and other
                requirements of present and future
                [[Page 55758]]
                generations of Americans. 42 U.S.C. 4331. NEPA directs Federal agencies
                to prepare ``detailed statements,'' referred to as environmental impact
                statements (EISs), for ``major Federal actions significantly affecting
                the quality of the human environment.'' 42 U.S.C. 4332(2)(C). NEPA
                established the Council on Environmental Quality (CEQ) in the Executive
                Office of the President, which advises the President on environmental
                policy matters and oversees Federal agencies' implementation of NEPA.
                42 U.S.C. 4342. In many respects, NEPA was a statute ahead of its time,
                and it remains relevant and vital today, from its statements that
                decisions be grounded in science to its recognition that sustainability
                and a livable environment are fundamental to social and economic well-
                being. See, e.g., 42 U.S.C. 4331, 4332(A).
                 In 1970, President Nixon issued Executive Order (E.O.) 11514,
                Protection and Enhancement of Environmental Quality, which directed CEQ
                to issue guidelines for implementation of section 102(2)(C) of NEPA.\2\
                In response, CEQ issued interim guidelines in April 1970, and revised
                the guidelines in 1971 and 1973.\3\ In 1977, President Carter issued
                E.O. 11991, Relating to Protection and Enhancement of Environmental
                Quality, amending E.O. 11514 and directing CEQ to issue regulations to
                govern implementation of NEPA and requiring that Federal agencies
                comply with those regulations.\4\ CEQ promulgated implementing
                procedures in 1978 at 40 CFR parts 1500 through 1508.\5\ The
                regulations, issued 8 years after NEPA's enactment, reflect CEQ's
                interpretation of and expertise in NEPA, initial interpretations of the
                courts, and Federal agency experience implementing NEPA. Consistent
                with the requirement in 40 CFR 1507.3, Federal agencies, in turn, issue
                and update their own implementing procedures to supplement CEQ's
                procedures and integrate the NEPA process into the agencies' specific
                programs and processes. Agencies consult with CEQ in the development of
                these procedures to ensure that their agency-specific procedures are
                consistent with CEQ's regulations. CEQ made technical amendments to the
                1978 implementing regulations in 1979 \6\ and amended one provision in
                1986,\7\ but it left the regulations largely unchanged for over 40
                years (1978 NEPA Regulations). As a result, CEQ and Federal agencies
                have extensive experience in implementing NEPA and the 1978
                regulations, and a large body of agency practice and case law has
                developed based on the CEQ NEPA regulations that remained in
                substantially the same form from 1978 to 2020. The fundamental
                principles of informed and science-based decision making, transparency,
                and public engagement are reflected in both the NEPA statute and CEQ's
                1978 NEPA Regulations, and it is those core principles that CEQ seeks
                to advance in this proposed rule.
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                 \2\ 35 FR 4247 (Mar. 7, 1970), sec. 3(h).
                 \3\ See 35 FR 7390 (May 12, 1970) (interim guidelines); 36 FR
                7724 (Apr. 23, 1971) (final guidelines); 38 FR 10856 (May 2, 1973)
                (proposed revisions to the guidelines); 38 FR 20550 (Aug. 1, 1973)
                (revised guidelines).
                 \4\ 42 FR 26967 (May 25, 1977).
                 \5\ 43 FR 55978 (Nov. 23, 1978).
                 \6\ 44 FR 873 (Jan. 3, 1979).
                 \7\ 51 FR 15618 (Apr. 25, 1986) (amending 40 CFR 1502.22).
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                 On August 15, 2017, President Trump issued E.O. 13807, Establishing
                Discipline and Accountability in the Environmental Review and
                Permitting Process for Infrastructure Projects,\8\ which, in part,
                directed CEQ to establish and lead an interagency working group to
                identify and propose changes to the NEPA regulations.\9\ In response,
                on January 10, 2020, CEQ published a notice of proposed rulemaking
                (NPRM) proposing broad revisions to the 1978 NEPA Regulations.\10\ A
                wide range of stakeholders submitted more than 1.1 million comments on
                the proposed rule,\11\ including state and local governments, Tribes,
                environmental advocacy organizations, professional and industry
                associations, and other advocacy or non-profit organizations. Many
                commenters provided detailed feedback on the legality, policy wisdom,
                and potential consequences of the proposed amendments. In keeping with
                the proposed rule, the final rule promulgated on July 16, 2020, made
                wholesale revisions to the regulations and took effect on September 14,
                2020 (2020 NEPA Regulations or 2020 Rule).\12\
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                 \8\ 82 FR 40463 (Aug. 24, 2017).
                 \9\ Id., sec. 5(e)(iii).
                 \10\ 85 FR 1684 (Jan. 10, 2020).
                 \11\ See Docket No. CEQ-2019-0003, https://www.regulations.gov/document/CEQ-2019-0003-0001.
                 \12\ 85 FR 43304 (July 16, 2020).
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                 In the months that followed the issuance of the 2020 NEPA
                Regulations, five lawsuits were filed challenging the 2020 Rule.\13\
                These cases challenge the 2020 NEPA Regulations on a variety of
                grounds, including under the Administrative Procedure Act (APA), NEPA,
                and the Endangered Species Act, contending that the rule exceeded CEQ's
                authority and that the related rulemaking process was procedurally and
                substantively defective. In response to CEQ and joint motions, the
                district courts have issued temporary stays in each of these cases,
                except for Wild Virginia v. Council on Environmental Quality, which the
                district court dismissed without prejudice on June 21, 2021,\14\ and is
                currently on appeal to the U.S. Court of Appeals for the Fourth
                Circuit.
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                 \13\ Wild Va. v. Council on Env't Quality, No. 3:20cv45 (W.D.
                Va. 2020); Envtl. Justice Health All. v. Council on Env't Quality,
                No. 1:20cv06143 (S.D.N.Y. 2020); Alaska Cmty. Action on Toxics v.
                Council on Env't Quality, No. 3:20cv5199 (N.D. Cal. 2020);
                California v. Council on Env't Quality, No. 3:20cv06057 (N.D. Cal.
                2020); Iowa Citizens for Cmty. Improvement v. Council on Env't
                Quality, No. 1:20cv02715 (D.D.C. 2020). Additionally, in The Clinch
                Coalition v. U.S. Forest Service, No. 2:21cv00003 (W.D. Va. 2020),
                plaintiffs challenge the U.S. Forest Service's NEPA implementing
                procedures, which established new categorical exclusions, and,
                relatedly, the 2020 Rule's provisions on categorical exclusions.
                 \14\ Wild Va. v. Council on Env't Quality, No. 3:20cv45, 2021 WL
                2521561 (W.D. Va. June 21, 2021).
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                 On January 20, 2021, President Biden issued E.O. 13990, Protecting
                Public Health and the Environment and Restoring Science to Tackle the
                Climate Crisis.\15\ Section 1 of E.O. 13990 establishes an
                Administration policy to listen to the science; improve public health
                and protect our environment; ensure access to clean air and water;
                limit exposure to dangerous chemicals and pesticides; hold polluters
                accountable, including those who disproportionately harm communities of
                color and low-income communities; reduce greenhouse gas emissions;
                bolster resilience to the impacts of climate change; restore and expand
                our national treasures and monuments; and prioritize both environmental
                justice and the creation of well-paying union jobs necessary to deliver
                these goals.\16\
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                 \15\ 86 FR 7037 (Jan. 25, 2021).
                 \16\ Id., sec. 1.
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                 Section 2 of the E.O. calls for Federal agencies to review existing
                regulations issued between January 20, 2017, and January 20, 2021, for
                consistency with the policy articulated in the E.O. and to take
                appropriate action. Section 7(b) revokes a number of E.O.s, including
                E.O. 13807, and section 7(f) directs agencies to promptly take steps to
                rescind any rules or regulations implementing or enforcing any of the
                revoked E.O.s. An accompanying White House fact sheet, published on
                January
                [[Page 55759]]
                20, 2021, specifically directs CEQ to review the 2020 NEPA Regulations
                for consistency with E.O. 13990's objectives.\17\
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                 \17\ White House Fact Sheet: List of Agency Actions for Review
                (Jan. 20, 2021), https://www.whitehouse.gov/briefing-room/statements-releases/2021/01/20/fact-sheet-list-of-agency-actions-for-review/.
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                 On January 27, 2021, the President signed E.O. 14008, Tackling the
                Climate Crisis at Home and Abroad, which establishes a government-wide
                approach to the climate crisis by reducing greenhouse gas emissions and
                an Administration policy to increase climate resilience, transition to
                a clean-energy economy, address environmental justice and invest in
                disadvantaged communities, and spur well-paying union jobs and economic
                growth.\18\ E.O. 14008 also requires the Chair of CEQ and the Director
                of the Office of Management and Budget (OMB) to ensure that Federal
                infrastructure investments reduce climate pollution and that Federal
                permitting decisions consider the effects of greenhouse gas emissions
                and climate change.\19\
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                 \18\ 86 FR 7619 (Feb. 1, 2021).
                 \19\ Id., sec. 213(a).
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                II. CEQ's Approach to Revising the 2020 NEPA Regulations
                 Consistent with E.O. 13990 and E.O. 14008, CEQ is engaged in a
                comprehensive review of the 2020 NEPA Regulations to ensure that they
                provide for sound and efficient environmental review of Federal
                actions, including those actions integral to tackling the climate
                crisis, in a manner that enables meaningful public participation,
                respects Tribal sovereignty, protects our Nation's resources, and
                promotes better environmental and community outcomes. CEQ proposes
                regulatory changes in this NPRM to enhance clarity on NEPA
                implementation, to better effectuate NEPA's statutory requirements and
                purposes, to ensure that Federal decisions are guided by science, to
                better protect and enhance the quality of the human environment, and to
                provide full and fair processes that inform the public about the
                environmental effects of government actions and enable public
                participation.
                 CEQ's review of the 2020 NEPA Regulations and the proposed
                regulatory amendments are guided by CEQ's and Federal agencies'
                extensive experience implementing NEPA for the last 50 years. As part
                of its oversight role, CEQ reviews every agency's proposed new or
                updated NEPA implementing procedures. As part of this iterative
                process, CEQ engages with agencies to understand their specific
                authorities and programs to ensure consideration of environmental
                impacts is integrated into their decision-making processes.
                Additionally, where necessary or appropriate, CEQ engages with agencies
                on NEPA reviews for specific projects or project types. For example,
                CEQ has convened interagency working groups to ensure efficient and
                effective environmental reviews for transportation and broadband
                projects. CEQ also has extensive experience providing written guidance
                to Federal agencies on a wide range of NEPA-related issues, including
                environmental justice, emergency response activities, climate change,
                and more.\20\ And, CEQ meets regularly with external stakeholders to
                understand their perspectives on the NEPA process. Finally, CEQ
                coordinates with other Federal agencies and components of the White
                House on a wide array of environmental issues that also arise in the
                NEPA context, such as endangered species consultation or impacts to
                Federal lands and waters from federally permitted activities.
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                 \20\ See https://www.energy.gov/nepa/ceq-guidance-documents for
                a list of current CEQ guidance documents.
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                 It is CEQ's view that the 2020 NEPA Regulations may have the effect
                of limiting the scope of NEPA analysis, with negative repercussions for
                environmental protection and environmental quality, including in
                critical areas such as climate change and environmental justice.
                Portions of the 2020 NEPA Regulations also may not reflect NEPA's
                statutory purposes to ``encourage productive and enjoyable harmony''
                between humans and the environment, promote efforts that will prevent
                or eliminate damage to the environment and biosphere, and enhance
                public health and welfare. See 42 U.S.C. 4321. Some changes introduced
                by the 2020 NEPA Regulations also may not support science-based
                decision making or be compatible with the Administration's policies to
                improve public health, protect the environment, prioritize
                environmental justice, provide access to clean air and water, and
                reduce greenhouse gas emissions that contribute to climate change.\21\
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                 \21\ See E.O. 13990, supra note 15, and E.O. 14008, supra note
                18.
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                 To address these concerns, CEQ is engaging in a series of
                rulemakings to propose revisions to the 2020 NEPA Regulations. As a
                preliminary step, CEQ issued an interim final rule on June 29, 2021,
                amending the requirement in 40 CFR 1507.3(b) for agencies to propose
                changes to their existing NEPA supplemental procedures by September 14,
                2021, in order to make their procedures consistent with the 2020 NEPA
                Regulations.\22\ CEQ extended the date by two years to avoid having
                agencies propose changes to their implementing procedures on a tight
                deadline to conform to a rule that is undergoing extensive review and
                will likely change in the near future.
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                 \22\ 86 FR 34154 (June 29, 2021).
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                 CEQ intends to reconsider and revise the 2020 NEPA Regulations
                using a phased approach. This NPRM initiates a ``Phase 1'' rulemaking
                to focus on a discrete set of provisions. In identifying what
                provisions to address in Phase 1, CEQ focused on the provisions that
                (1) pose significant near-term interpretation or implementation
                challenges for Federal agencies and would have the most impact to
                agencies' NEPA processes during the interim period before a ``Phase 2''
                rulemaking is complete; (2) make sense to revert to the 1978 regulatory
                approach for the reasons discussed in Part III of this preamble; and
                (3) CEQ is generally unlikely to propose to further revise in a Phase 2
                rulemaking. Further, because CEQ recently received comments on these
                exact provisions through the rulemaking process for the 2020 NEPA
                Regulations, CEQ has the benefit of voluminous public comments on these
                issues, which CEQ considered in the development of this proposed rule.
                In Phase 2, CEQ intends to issue a second NPRM to more broadly revisit
                the 2020 NEPA Regulations and propose further revisions to ensure that
                the NEPA process provides for efficient and effective environmental
                reviews that are consistent with the statute's text and purpose;
                provides regulatory certainty to Federal agencies; promotes better
                decision making consistent with NEPA's statutory requirements; and
                meets environmental, climate change, and environmental justice
                objectives.
                III. Summary of Proposed Rule
                 As discussed in this section, CEQ proposes three revisions to the
                2020 NEPA Regulations in this Phase 1 rulemaking: (1) To eliminate
                language in the description of purpose and need for a proposed action
                when it is an agency's statutory duty to review applications for
                authorization (40 CFR 1502.13) and make a conforming edit to the
                definition of ``reasonable alternatives'' (40 CFR 1508.1(z)); (2) to
                remove limitations on agency NEPA procedures for implementing CEQ's
                NEPA Regulations (40 CFR 1507.3); and (3) to return to the definitions
                of ``effects'' in the prior,
                [[Page 55760]]
                longstanding 1978 NEPA Regulations (40 CFR 1508.1(g)).
                 CEQ proposes to amend these provisions by generally reverting to
                the language from the 1978 NEPA Regulations that was in effect for more
                than 40 years, subject to minor revisions for clarity. In proposing to
                revert to language in the 1978 Regulations, this NPRM addresses issues
                similar or identical to those the public and Federal agencies recently
                had the opportunity to consider and comment on during the rulemaking
                for the 2020 NEPA Regulations, which will facilitate an expeditious
                Phase 1 rulemaking. For each provision described in this section, CEQ
                provides a high-level summary of some of the significant issues raised
                in these public comments, which CEQ considered in the development of
                this proposed rule.
                A. Purpose and Need (Sec. 1502.13)
                 The purpose and need section of an EIS sets forth the rationale for
                the agency's proposed action. Development of the purpose and need is a
                vital early step in the NEPA process that is foundational to other
                elements of a NEPA review. For example, the purpose and need statement
                sets the parameters for the range of reasonable alternatives an agency
                considers and informs the scope of effects that an agency must analyze
                in an EIS. The 1978 NEPA Regulations required that each EIS briefly
                state the underlying purpose and need to which the agency is responding
                in proposing the alternatives, including the proposed action. The 2020
                NEPA Regulations modified this provision by adding language that
                requires agencies to base the purpose and need on the goals of an
                applicant and the agency's authority when the agency's statutory duty
                is to review an application for authorization. The 2020 NEPA
                Regulations also made a conforming addition to the definition of
                ``reasonable alternatives'' to carry over the new language on purpose
                and need. Here, CEQ proposes in Sec. 1502.13 to revert to the language
                of the 1978 NEPA Regulations for purpose and need and conform the
                definition of ``reasonable alternatives'' in Sec. 1508.1(z) to this
                change.
                 CEQ proposes this change because the language added by the 2020
                NEPA Regulations requires an agency to always base the purpose and need
                on the goals of an applicant and the agency's statutory authority when
                an agency is reviewing an application for authorization. This language
                could be construed to require agencies to prioritize the applicant's
                goals over other relevant factors, including the public interest. CEQ
                does not consider this approach to reflect the best reading of the NEPA
                statute or lay the appropriate groundwork for environmentally sound
                decision making. Agencies should have discretion to base the purpose
                and need for their actions on a variety of factors, which include the
                goals of the applicant, but not to the exclusion of other factors. For
                example, agencies may consider regulatory requirements, desired
                conditions on the landscape or other environmental outcomes, and local
                economic needs, as well as an applicant's goals. Always tailoring the
                purpose and need to an applicant's goals when considering a request for
                an authorization could prevent an agency from considering alternatives
                that better meet the policies and responsibilities set forth in NEPA
                merely because they do not meet an applicant's stated goals.
                Additionally, an applicant's goals themselves could be potentially
                confusing or unduly narrow or restrictive. Restoring the 1978 language
                would eliminate this confusing language and reaffirm agency discretion
                to develop and rely on statements of purpose and need that are
                consistent with the agency's decision-making responsibilities while
                considering multiple relevant factors, including the public interest
                and the goals of an applicant. This restoration would confirm that
                agencies should consider a range of alternatives that are technically
                and economically feasible and meet the purpose and need for the
                proposed action but that are not unreasonably constrained by an
                applicant's stated goals.
                 In adding this language, the preamble to the 2020 Rule explained
                that CEQ intended to clarify that when an agency is responsible for
                reviewing applications for authorizations, the agency must base the
                purpose and need on the applicant's goals and the agency's statutory
                authority, citing Citizens Against Burlington, Inc. v. Busey, 938 F.2d
                190, 196 (D.C. Cir. 1991). However, this case did not require the
                agency to base the purpose and need on the applicant's goals; rather,
                the court held that the agency's consideration of the applicant's goals
                to develop the purpose and need statement was not arbitrary and
                capricious. However, the court did not require that the applicant's
                goals be the sole (or even primary) factor in the formulation of the
                purpose and need for the action. See id. at 196-99.
                 CEQ proposes to remove the reference to the agency's statutory
                authority because it is unnecessary and confusing. It is unnecessary
                because agencies already had a long history of developing purpose and
                need statements under the 1978 NEPA Regulations guided by their
                statutory authority and the scope of the agency decision under
                consideration. The reference is confusing because it implies that an
                agency's authority is only relevant when an agency proposes to grant an
                authorization, and agencies must also appropriately consider the scope
                of their authority when evaluating other agency actions, including
                those that do not involve specific authorizations. Therefore, CEQ
                proposes to eliminate the reference to an agency's authority because
                purpose and need statements have always been informed by the scope of
                the agency's statutory decision-making authority irrespective of
                whether the action is an application for authorization. A reference to
                an agency's statutory authority in this one context therefore seems
                unnecessary.
                 To promote informed decision making, transparency, and public
                engagement, a properly drawn purpose and need statement should lead to
                consideration of the reasonable alternatives to the proposed action,
                consistent with NEPA's requirements. See 42 U.S.C. 4332(2)(C). While a
                purpose and need statement that is too narrow is inconsistent with
                NEPA's requirement to consider alternatives to the proposed action, so
                too is a boundless analysis of alternatives. Rather, agencies are
                guided by a rule of reason in identifying the reasonable alternatives
                that are technically and economically feasible and meet the purpose and
                need of a proposed action. See, e.g., HonoluluTraffic.com v. Fed.
                Transit Admin., 742 F.3d 1222, 1230 (9th Cir. 2014).
                 For example, a private applicant seeking a right-of-way on Federal
                land may want to site the right-of-way at a specific location and may,
                correspondingly, frame the applicant's goals as a right-of-way with a
                particular location or route. However, the agency with jurisdiction
                over the proposed action may want to consider a range of reasonable
                locations for the right-of-way that would, for example, avoid
                environmental impacts or reduce conflicts with other programs or plans.
                 Inherent in the NEPA process is the consideration of the public
                interest when developing a purpose and need statement, including
                analyzing proposed actions and alternatives. As the U.S. Court of
                Appeals for the Seventh Circuit explained in Simmons v. U.S. Army Corps
                of Engineers, it is contrary to NEPA for agencies to ``contrive a
                purpose so slender as to define competing `reasonable alternatives' out
                of consideration (and even out of existence).'' 120 F.3d 664,
                [[Page 55761]]
                666 (7th Cir. 1997) (citing 42 U.S.C. 4332(2)(E)). The court explained
                that constricting the definition of the project's purpose could exclude
                truly reasonable alternatives, making an EIS incompatible with NEPA's
                requirements. Id.; see also, e.g., Nat'l Parks & Conservation Ass'n v.
                Bureau of Land Mgmt., 606 F.3d 1058, 1070 (9th Cir. 2010) (``Agencies
                enjoy `considerable discretion' to define the purpose and need of a
                project. However, `an agency cannot define its objectives in
                unreasonably narrow terms.''' (internal citations omitted)).
                 During the rulemaking process for the 2020 NEPA Regulations,
                numerous public comments addressed the purpose and need provision. Some
                commenters supported limiting the purpose and need to the goals of the
                applicant in order to narrow the number of alternatives agencies must
                consider and shorten the timeframe for the environmental review. Other
                commenters expressed the view that this provision would result in
                purpose and need statements and environmental reviews that give undue
                deference to applicants. Some commenters also stated that the proposed
                change would unduly elevate the goals of applicants over the needs of
                the public and Federal agencies' purview to consider the public
                interest. In reconsidering the approach taken in the 2020 Rule, CEQ
                reviewed these comments. As discussed in this section, CEQ considers
                the proposed reversion to the 1978 language on purpose and need to
                better reflect NEPA's objectives. Upon further consideration, CEQ does
                not consider that the language added by the 2020 Rule would necessarily
                lead to more efficient reviews and finds a lack of evidence to support
                that claim. CEQ requests comment on this proposed change and the
                potential effects of this change on the environmental review process,
                including timeframes for environmental review.
                 CEQ also proposes to make a conforming edit to the definition of
                ``reasonable alternatives. The 2020 Rule defines ``reasonable
                alternatives'' to mean ``a reasonable range of alternatives that are
                technically and economically feasible, meet the purpose and need for
                the proposed action, and, where applicable, meet the goals of the
                applicant.'' 40 CFR 1508.1(z) (emphasis added). CEQ's proposed change
                would be consistent with the proposed change to purpose and need, by
                deleting the reference in ``reasonable alternatives'' to the goals of
                the applicant for the same reasons discussed above regarding the
                proposed change to the purpose and need section, Sec. 1502.13.
                B. Agency NEPA Procedures (Sec. 1507.3)
                 CEQ proposes to revise Sec. 1507.3(a) and (b) to clarify that
                while agency NEPA procedures need to be consistent with the CEQ
                regulations, agencies have the discretion and flexibility to develop
                procedures beyond the CEQ regulatory requirements, enabling agencies to
                address their specific programs and the contexts in which they operate.
                Specifically, the proposed rule would remove language from Sec.
                1507.3(a) stating that where existing agency NEPA procedures are
                ``inconsistent'' with the CEQ regulations, the CEQ regulations apply
                ``unless there is a clear and fundamental conflict with the
                requirements of another statute.'' The proposed rule also would remove
                from Sec. 1507.3(b) the language requiring agencies ``to eliminate any
                inconsistencies'' with the CEQ regulations and the prohibition on
                agencies imposing additional procedures or requirements beyond the CEQ
                regulations unless those additional procedures promote agency
                efficiency or are required by law. Collectively, these ``ceiling
                provisions'' make the CEQ regulations a ceiling for agency NEPA
                procedures, which departed from CEQ's and Federal agencies' prior
                understanding and practice that CEQ's NEPA regulations provide a floor
                for environmental review procedures.
                 As noted in section II of this preamble, CEQ amended paragraph (b)
                in June 2021 to provide agencies until September 14, 2023, to propose
                updates to their agency procedures. This NPRM does not propose to
                change that date. In proposing these revisions, CEQ is affirming that
                agencies have the authority and discretion to develop and implement
                NEPA procedures beyond those specified in the CEQ regulations to
                address the unique contexts in which they operate, and that CEQ will
                continue to ensure that such additional procedures are consistent with
                CEQ's regulations through its consistency review process set forth in
                40 CFR 1507.3(b)(2).
                 Prior to the 2020 NEPA Regulations, Federal agencies could develop
                NEPA procedures of their own to augment the CEQ regulations, so long as
                those procedures met or exceeded the degree of environmental review
                required by the CEQ regulations. CEQ's proposal better meets NEPA's
                statutory requirements and purpose to provide flexibility to agencies
                in carrying out their NEPA requirements, including by allowing agencies
                to adopt agency-specific NEPA procedures that align with their unique
                missions or circumstances. Agencies should be able to tailor their
                procedures to meet their unique statutory mandates and include
                additional procedures or requirements beyond those outlined in CEQ's
                NEPA regulations, especially if doing so will promote better decisions,
                improve environmental or community outcomes, or spur innovation that
                advances NEPA's policies.
                 For example, agency procedures could include more specific
                requirements for the development of environmental assessments to
                facilitate the decision-making process, such as requiring multiple
                alternatives or documentation of alternatives considered but dismissed.
                Procedures also could require public hearings or provide for more
                specific consideration or evaluation of certain issues such as air and
                water quality impacts, environmental justice considerations, or habitat
                effects. For example, the National Oceanic and Atmospheric
                Administration (NOAA), which among other things, is responsible for the
                stewardship of the Nation's ocean resources and their habitat, might
                adopt agency-specific procedures on the analysis of impacts to species
                or habitats protected by the Endangered Species Act, the Marine Mammal
                Protection Act, or the Magnuson-Stevens Fishery Conservation and
                Management Act, as well as other vulnerable marine and coastal
                ecosystems. CEQ has heard from Federal agencies that the ceiling
                provisions have created confusion as to whether agencies can continue
                to carry out their agency-specific procedures or adopt new procedures
                to implement NEPA for their programs and authorities.
                 CEQ reviews any proposed changes to agency NEPA procedures before
                their adoption to ensure the procedures are consistent with NEPA and
                the CEQ regulations. See 40 CFR 1507.3. That review process provides
                the opportunity to discuss the reasons behind any new or additional
                procedures or requirements proposed by agencies. This also allows CEQ
                to promote consistency across the Federal Government without limiting
                agencies' flexibility to do more than the CEQ regulations describe or
                otherwise inhibiting innovation.
                 Removing these ceiling provisions also improves alignment of the
                NEPA Regulations with NEPA's statutory text, which directs agencies to
                pursue the statute's goals ``to the fullest extent possible.'' 42
                U.S.C. 4332. The legislative history of NEPA indicates that the intent
                behind this statement was to ensure that all Federal agencies comply
                with NEPA as well as their statutory authorities and that ``no agency
                shall utilize an excessively
                [[Page 55762]]
                narrow construction of its existing statutory authorizations to avoid
                compliance.'' \23\
                ---------------------------------------------------------------------------
                 \23\ H. Rep. No. 91-765, at 9-10 (1969).
                ---------------------------------------------------------------------------
                 Additionally, removing these sentences would allow agencies to
                fully pursue NEPA's aims by allowing them to establish procedures
                specific to their missions and authorities that may provide for
                additional environmental review and public participation. See 42 U.S.C.
                4332. CEQ would continue to perform its longstanding role of reviewing
                any proposed agency-specific NEPA procedures to ensure that they are
                consistent with, but not necessarily identical to, CEQ's regulations.
                The proposed change would also help Federal agencies ensure that their
                NEPA procedures, and the NEPA documents and processes that follow those
                procedures, meet the goal of NEPA to provide for the protection and
                enhancement of the environment and human health.
                 Since all agencies are charged with administering NEPA--not only
                CEQ--agencies should be allowed to pursue the environmental aims of the
                statute, including by adopting and carrying out procedures that require
                additional or more specific environmental analysis than called for by
                the CEQ regulations. NEPA also expressly instructs agencies to develop
                methods and procedures for the development of EISs, indicating that
                agencies are intended to take responsibility for their own procedures,
                even while consulting with CEQ. See 42 U.S.C. 4332(2)(B). Eliminating
                the 2020 NEPA Regulations' ceiling provisions would allow agencies to
                carry out their NEPA obligations to the ``fullest extent possible.''
                See 42 U.S.C. 4332.
                 The public extensively commented on the ceiling provisions during
                the rulemaking for the 2020 NEPA Regulations. Many commenters opposed
                the addition of these provisions, expressing the view that it is
                important for agencies to have flexibility to meet NEPA's statutory
                requirements and establish the procedures and requirements necessary to
                implement NEPA. Commenters stated that precluding an agency from
                applying its expertise would arbitrarily limit the role of agencies
                responsible for implementing NEPA. Some commenters found that the 2020
                NEPA Regulations did not adequately justify the addition of these
                provisions or clearly articulate what problem the change was trying to
                solve. A few commenters also noted that the proposed changes could
                interfere with state and Federal collaboration or coordination to the
                extent they would prevent Federal agencies from adopting NEPA
                procedures that integrate with state review processes that have more
                stringent requirements and procedures than those set out in the
                proposed rule. The commenters noted that impairing Federal agencies'
                coordination with states would create greater complexity and
                uncertainty for applicants and potentially additional delays and
                paperwork. The few comments in support of the change expressed general
                support or stated that including ceiling provisions would reduce costs
                and delays--a rationale that appears in the NPRM for the 2020 Rule--but
                did not provide an explanation or basis for that statement.
                 In developing this proposal, CEQ considered these comments as well
                as the rationale provided for the 2020 Rule and, in alignment with the
                discussion provided earlier in this section, disagrees with the
                rationale provided for the 2020 Rule and agrees with the comments that
                opposed the addition of the ceiling provisions. Even if the ceiling
                provisions would reduce costs and delays in some circumstances, which
                commenters did not provide evidence to support, CEQ considers the
                benefits of agency flexibility to outweigh the potential costs and
                delays. NEPA is more than a check-the-box paperwork exercise. Providing
                agencies flexibility to integrate their NEPA reviews into their unique
                programs can both make the decision-making process more efficient--
                because the process can be tailored to the particularities of agency
                programs--and more effective because a more tailored environmental
                review process may result in environmental reviews that better inform
                the decision maker and the public. Moreover, CEQ retains authority to
                review proposed agency procedures for consistency with CEQ's
                regulations and can evaluate specific proposals made by agencies at
                that time and work with the agencies to ensure implementing procedures
                do not result in undue cost or delay. CEQ invites public comment on
                this proposed provision.
                C. Definition of ``Effects'' or ``Impacts'' (Sec. 1508.1(g))
                 NEPA requires Federal agencies to examine the environmental effects
                of their proposed actions and alternatives and any adverse
                environmental effects that cannot be avoided if the proposed action is
                implemented. 42 U.S.C. 4332(2)(C). CEQ proposes to revise the
                definition of ``effects'' or ``impacts'' in Sec. 1508.1(g) to restore
                the substance of the definitions of ``effects'' and ``cumulative
                impacts'' contained in the 1978 NEPA Regulations with some minor, non-
                substantive changes for consistency with the current format of the Code
                of Federal Regulations. Specifically, CEQ proposes to restore the
                definitions of ``direct'' and ``indirect'' effects, and ``cumulative
                impacts'' from the 1978 NEPA Regulations, 40 CFR 1508.7 and 1508.8
                (2019), by incorporating them into the definition of ``effects'' or
                ``impacts,'' such that each reference to these terms throughout 40 CFR
                parts 1500 through 1508 would include direct, indirect, and cumulative
                effects.
                 Direct effects are effects caused by the action and occur at the
                same time and place. 40 CFR 1508.8(a) (2019). Indirect effects are
                effects caused by the action that are later in time or farther removed
                in distance but are still reasonably foreseeable. Id. at Sec.
                1508.8(b). Cumulative effects are effects resulting from the
                incremental impact of the action when added to other past, present, and
                reasonably foreseeable future actions regardless of who undertakes the
                other actions. Id. at Sec. 1508.7.
                 CEQ's proposal would remove the language from paragraph (g)
                defining ``effects'' as those ``that are reasonably foreseeable and
                have a reasonably close causal relationship.'' The proposal also would
                remove and replace paragraph (g)(2), which states that a ``but for''
                causal relationship is insufficient to make an agency responsible for a
                particular effect under NEPA; generally excludes effects that are
                remote in time, geographically remote, or the product of a lengthy
                causal chain; and fully excludes effects that the agency has no ability
                to prevent due to its limited statutory authority or would occur
                regardless of the proposed action. The proposed rule also would remove
                and replace paragraph (g)(3), which states that an agency's analysis of
                effects must be consistent with the definition of ``effects'' and
                explicitly repeals the definition of cumulative impact in 40 CFR 1508.7
                (2019). CEQ proposes to remove this language because it creates
                confusion and could be read to improperly narrow the scope of
                environmental effects relevant to NEPA analysis, contrary to NEPA's
                purpose.
                 CEQ's proposal would retain the introductory phrase added in the
                2020 Rule that defines ``effects'' as ``changes to the human
                environment from the proposed action or alternatives.'' This revision
                eliminated the circular definition (``effects'' include effects) of the
                1978 NEPA Regulations. Finally, CEQ does not propose to include the
                statement from the 1978 NEPA Regulations that ``effects'' and
                ``impacts'' as used in the regulations are
                [[Page 55763]]
                synonymous, as this statement would be redundant as the definition
                defines both ``effects'' and ``impacts'' together.
                1. Reinstating ``Direct'' and ``Indirect'' Effects
                 CEQ proposes to restore the terms ``direct'' and ``indirect'' to
                the definition of ``effects'' to realign the regulations with
                longstanding agency practice \24\ and judicial decisions interpreting
                NEPA. Based on CEQ's extensive experience implementing NEPA, this
                change would better reflect NEPA's statutory purpose and intent and be
                more consistent with case law, as courts have interpreted the NEPA
                statute to require agencies to analyze the reasonably foreseeable
                direct and indirect effects of a proposed action and alternatives. See,
                e.g., Minn. Pub. Int. Rsch. Grp. v. Butz, 498 F.2d 1314, 1322 (8th Cir.
                1974) (stating that NEPA ``is concerned with indirect effects as well
                as direct effects,'' and emphasizing long-term effects as a reason that
                a logging project would significantly affect the environment and
                require an EIS); see also, e.g., Sierra Club v. Fed. Energy Reg.
                Comm'n, 867 F.3d 1357, 1371-72 (D.C. Cir. 2017); San Juan Citizens All.
                v. U.S. Bureau of Land Mgmt., 326 F. Supp. 3d 1227, 1244 (D.N.M. 2018)
                (holding that greenhouse gas emissions are foreseeable indirect effects
                of leases for fossil fuel production and approvals of pipelines that
                transport fossil fuels). As reflected in many of the public comments to
                the 2020 Rule as well as in CEQ's discussions with agency NEPA
                practitioners who have asked CEQ for clarification since the 2020 Rule
                went into effect, this change would eliminate confusion caused by the
                modified definition and ensure that the NEPA process fully and fairly
                considers the appropriate universe of effects, such as air and water
                pollution, greenhouse gas emissions that contribute to climate change,
                and effects on communities with environmental justice concerns.
                ---------------------------------------------------------------------------
                 \24\ See, e.g., Bureau of Land Management National Environmental
                Policy Act Handbook H-1790-1, sec. 6.8.2 (January 2008); 36 CFR
                220.4(f), 220.7(b)(iv) (Forest Service); 32 CFR 651.29(b),
                651.34(f), 651.51(a)(3), Appendix to E to Part 651--Content of EIS
                (Army Corps of Engineers).
                ---------------------------------------------------------------------------
                 While the 2020 NEPA Regulations retained the definition of
                ``direct'' effects without using the term, the revised definition
                creates ambiguity regarding whether and to what extent indirect effects
                are included in the definition of ``effects.'' In particular, the
                definition states in paragraph (g) that effects ``may include effects
                that are later in time or farther removed in distance'' but then states
                in paragraph (g)(2) that effects should generally not be considered if
                they are remote in time or geographically remote. CEQ's proposed
                changes would provide clarity to agencies, practitioners, and the
                public by restoring the terms and definitions of ``direct'' and
                ``indirect,'' as these terms can help agencies and the public evaluate
                and understand the full scope of reasonably foreseeable effects in NEPA
                reviews.
                 This reinstatement also would ensure that agencies consider the
                full range of reasonably foreseeable effects in the NEPA process,
                consistent with NEPA's goal of facilitating reason-based decision
                making that protects public health and the environment, as well as this
                Administration's policies to be guided by science and to address
                environmental protection, climate change, and environmental justice.
                For example, air pollution, including greenhouse gas emissions,
                released by fossil fuel combustion is often a reasonably foreseeable
                indirect effect of proposed fossil fuel extraction that agencies should
                evaluate in the NEPA process, even if the pollution is remote in time
                or geographically remote from a proposed action. And even where an
                agency does not exercise regulatory authority over all aspects of a
                project, it may be appropriate to consider and compare the air
                pollution and greenhouse gas emission effects that the proposal and the
                reasonable alternatives would have on the environment, even if the
                agency does not have control over all of the emissions that the
                alternatives would produce. The consideration of such effects can
                provide important information on the selection of a preferred
                alternative; for example, an agency decision maker might select the no
                action alternative, as opposed to a fossil fuel leasing alternative, on
                the basis that it best aligns with the agency's statutory authorities
                and policies with respect to greenhouse gas emission mitigation.\25\
                ---------------------------------------------------------------------------
                 \25\ Agencies may consider all available tools and resources in
                assessing GHG emissions and climate change effects of their proposed
                actions, including, as appropriate and relevant, CEQ's 2016 ``Final
                Guidance for Federal Departments and Agencies on Consideration of
                Greenhouse Gas Emissions and the Effects of Climate Change in
                National Environmental Policy Act Reviews,'' 81 FR 51866 (Aug. 5,
                2016). Additionally, under E.O. 13990, the Interagency Working Group
                (IWG) on the Social Cost of Greenhouse Gases published interim
                estimates and is preparing updated estimates, which agencies may
                find helpful in considering greenhouse gas emission effects and
                mitigation as part of the NEPA process. See https://www.whitehouse.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf?source=email. This proposed rule does not specifically address the
                IWG's interim or final Social Cost of Greenhouse Gases estimates.
                More information on the interim estimates is available from the
                Office of Information and Regulatory Affairs. See https://www.whitehouse.gov/wp-content/uploads/2021/06/Social-Cost-of-Greenhouse-Gas-Emissions.pdf.
                ---------------------------------------------------------------------------
                 Use of the terms ``direct'' and ``indirect'' also can help explain
                both adverse and beneficial effects over various timeframes. For
                instance, a utility-scale solar facility could have short-term direct
                adverse effects, such as land impacts associated with construction. The
                facility also could have long-term indirect beneficial effects, such as
                reductions in air pollution, including greenhouse gas emissions, from
                the renewable energy generated by the solar facility that displaces
                more greenhouse gas-intensive energy sources (such as coal or natural
                gas) as an electricity source for years or decades into the future.
                Consistent with CEQ's proposed restored definition, such indirect
                effects could be caused by the action to authorize a new solar
                facility, and would be later in time or farther removed in distance yet
                still reasonably foreseeable. Fully evaluating the effects of the
                facility would require identifying and evaluating both the direct and
                indirect effects of the proposed action.
                 The 2020 NEPA Regulations also removed the explanatory examples of
                indirect effects, including growth-inducing effects and other effects
                related to induced changes in the pattern of land use, population
                density, or growth rate, and related effects on air and water and other
                natural systems, including ecosystems. Restoring these examples is
                appropriate to highlight indirect effects that may be associated with
                myriad proposed Federal actions, such as expanding or repairing Federal
                highways or authorizing new renewable energy projects.
                 Numerous public comments discussed the elimination of references to
                ``direct'' and ``indirect'' in the definition of ``effects'' during the
                rulemaking for the 2020 NEPA Regulations. Commenters who supported the
                elimination of ``direct'' and ``indirect'' expressed views that the
                existing language creates confusion, that removal of the terms could
                help reduce the length of NEPA documents, and that retaining the terms
                would lead to an increase in litigation. Commenters also raised
                concerns that the terms have expanded the scope of NEPA analysis
                without serving NEPA's purpose of informed decision making but did not
                provide bases, analyses, or evidence to support these conclusions. The
                2020 Rule adopted the position of these comments. CEQ considers the
                disclosure of both direct and indirect effects to be critical to the
                informed
                [[Page 55764]]
                decision-making process such that the benefits of any such disclosure
                outweigh any potential for shorter NEPA documents or timeframes.
                Moreover, a well-drafted NEPA document can both be concise and
                supported by thorough analysis, and agencies have decades of experience
                considering the direct and indirect effects of their proposed actions.
                CEQ considers the potential for reduced litigation from the 2020
                changes to be speculative, especially given the confusion that has
                resulted from deleting these familiar terms. Finally, CEQ expects that
                restoring these definitions that have been in place and in use for
                decades will better clarify the effects agencies need to consider in
                their NEPA analyses and may even help avoid delays in NEPA reviews.
                 The vast majority of comments on the 2020 NEPA Regulations opposed
                the removal of the terms, and CEQ views those comments as supporting
                its proposal to restore the terms ``direct'' and ``indirect'' to the
                definition of ``effects.'' Commenters expressed views that retaining
                the terms would reduce confusion and litigation. They also expressed
                views that direct and indirect effects are critical elements of the
                evaluation of potential environmental effects of a proposed action, and
                they raised concerns that by deleting the term ``indirect,'' agencies
                may not adequately consider long-term or geographically remote impacts,
                including greenhouse gas emissions or water pollution that travels
                downstream. Commenters supported their views by pointing to CEQ's
                longstanding guidance and decades of agency guidance and court
                decisions using the terms to address effects pursuant to NEPA. Many
                commenters argued that removal of these terms would be contrary to the
                intent of the statute, and that consideration of both direct and
                indirect effects is essential to determining significance. CEQ invites
                comment on these proposed changes.
                2. Adding ``Cumulative Effects'' to the Definition of ``Effects''
                 CEQ proposes to revise Sec. 1508.1(g)(3) by restoring, with minor
                modifications, the definition of ``cumulative impacts'' from the 1978
                NEPA Regulations and striking the current provision that repealed that
                definition. Analysis of reasonably foreseeable cumulative effects is
                integral to sound and complete environmental review. Cumulative effects
                analysis is an essential component of NEPA analysis, as it allows
                agencies and the public to understand how the incremental impacts of a
                proposed action contribute to cumulative environmental problems such as
                air pollution, water pollution, climate change, and biodiversity loss,
                among others. Today, science and data confirm that cumulative
                environmental harms, including repeated or frequent exposure to toxic
                air or water pollution, threaten human and environmental health and
                poses undue burdens on historically marginalized communities.\26\ CEQ
                seeks to ensure that agencies fully analyze reasonably foreseeable
                cumulative effects before Federal decisions are made by restoring the
                term and its definition.
                ---------------------------------------------------------------------------
                 \26\ See, e.g., Mercedes A. Bravo et al., Racial Isolation and
                Exposure to Airborne Particulate Matter and Ozone in Understudied
                U.S. Populations: Environmental Justice Applications of Downscaled
                Numerical Model Output, 92-93 Env't Int'l 247 (2016) (finding that
                long-term exposure to particulate matter is associated with racial
                segregation, with more highly segregated areas suffering higher
                levels of exposure).
                ---------------------------------------------------------------------------
                 The 2020 Rule's deletion of the definition of ``cumulative
                impacts'' did not exclude reasonably foreseeable effects from
                consideration merely because they could be categorized as cumulative
                effects. In responding to comments about potential effects on
                threatened and endangered species, the preamble to the 2020 Rule
                explains that ``the final rule does not ignore cumulative effects on
                listed species.'' \27\ CEQ similarly explained in the Final Rule
                Response to Comments that the 2020 Rule did not automatically exclude
                from analysis effects falling within the deleted definition of
                ``cumulative impacts.'' \28\ However, CEQ considers the deletion of the
                longstanding term to have the potential to create confusion about when
                and if agencies should analyze cumulative effects, and creates
                uncertainty regarding this type of effects analysis contrary to
                longstanding agency practice and NEPA's purpose. For example, CEQ has
                heard from Federal agency NEPA practitioners both individually and in
                agency meetings that they would like clarification about how to address
                cumulative effects, including whether it remains permissible to use the
                term, in light of the changes made in 2020. In addition, outside
                stakeholders have raised concerns in meetings and listening sessions
                regarding the deletion of the term in light of the potential impact
                this could have in truncating the environmental review and disclosure
                of important categories of effects. Additionally, public comments
                received on the proposed 2020 Rule raised such concerns. By restoring
                the definition of cumulative effects, the proposed rule would clarify
                that agencies must analyze and disclose reasonably foreseeable
                cumulative effects.
                ---------------------------------------------------------------------------
                 \27\ 85 FR 43355 (July 16, 2020).
                 \28\ Council on Environmental Quality, Update to the Regulations
                Implementing the Procedural Provisions of the National Environmental
                Policy Act Final Rule Response to Comments 467 (June 30, 2020),
                https://www.regulations.gov/document/CEQ-2019-0003-720629.
                ---------------------------------------------------------------------------
                 Since its initial NEPA guidelines in 1970, CEQ has interpreted the
                statute as requiring consideration of cumulative effects. In its 1970
                interim guidelines, CEQ provided that agencies should construe the
                statutory clause ``major Federal actions significantly affecting the
                quality of the human environment'' ``with a view to the overall,
                cumulative impact of the action proposed (and of further actions
                contemplated).'' \29\ CEQ explained that agencies should consider
                ``that the effect of many Federal decisions about a project or complex
                of projects can be individually limited but cumulatively considerable''
                because, for instance, agencies may provide funds over a period of
                years or multiple agencies may individually make decisions about
                partial aspects of a project.\30\ The guidelines further stated that an
                agency should prepare an EIS ``if it is reasonable to anticipate a
                cumulatively significant impact on the environment from the Federal
                action.'' \31\
                ---------------------------------------------------------------------------
                 \29\ 35 FR 7390, 7391 (May 12, 1970) (emphasis added).
                 \30\ Id.
                 \31\ Id.
                ---------------------------------------------------------------------------
                 These initial guidelines also interpreted the requirement in
                section 102(2)(C)(iv) to mean that ``[t]he relationship between local
                short-term uses of man's environment and the maintenance and
                enhancement of long-term productivity . . . requires the agency to
                assess the action for cumulative and long-term effects from the
                perspective that each generation is trustee of the environment for
                succeeding generations.'' \32\ This interpretation is reflected in the
                1971 final guidelines \33\ and the 1978 NEPA Regulations.\34\ Decades
                of agency practice and CEQ guidance affirm the interpretation that NEPA
                requires analysis of cumulative effects.\35\ For example, in 1997 CEQ
                noted that cumulative effects analysis is ``critical'' for the purposes
                of evaluating project
                [[Page 55765]]
                alternatives and developing appropriate mitigation strategies.\36\
                ---------------------------------------------------------------------------
                 \32\ Id. at 7392 (emphasis added).
                 \33\ 36 FR 7724 (Apr. 23, 1971).
                 \34\ See 43 FR 55978 (Nov. 23, 1978).
                 \35\ See, e.g., CEQ, Considering Cumulative Effects Under the
                National Environmental Policy Act (1997), https://ceq.doe.gov/publications/cumulative_effects.html; U.S. EPA, EPA 315-R-00-002,
                Consideration of Cumulative Impacts in EPA Review of NEPA Documents
                1 (1999) (``Because federal projects cause or are affected by
                cumulative impacts, this type of impact must be assessed in
                documents prepared under NEPA.'').
                 \36\ CEQ, supra note 35, at v.
                ---------------------------------------------------------------------------
                 CEQ's proposal to reinstate the definition of ``cumulative
                impacts'' aligns with longstanding legal precedent interpreting NEPA to
                require agencies to consider cumulative effects. Even before CEQ issued
                regulations on cumulative effects, the U.S. Supreme Court had
                interpreted NEPA to include them. In 1976, the Court held that NEPA
                requires consideration of cumulative effects ``when several proposals .
                . . that will have cumulative or synergistic environmental impact upon
                a region are pending concurrently before an agency, their environmental
                consequences must be considered together.'' Kleppe v. Sierra Club, 427
                U.S. 390, 410 (1976) (emphasis added).
                 Numerous commenters on the proposed 2020 Rule raised concerns that
                the 2020 Rule could be interpreted to eliminate consideration of
                cumulative effects and eliminating consideration of cumulative effects
                would undermine NEPA's purpose and environmental protection goals, and
                could interfere with the necessary analysis of a proposed action's
                impacts. Other commenters expressed views that indirect and cumulative
                effects often disproportionately affect Tribes, minority, and low-
                income populations, and excluding the details of such effects from NEPA
                analyses could lead agency decision makers to unknowingly make
                decisions that negatively impact Tribes or communities with
                environmental justice concerns. Some commenters who favored striking
                the requirement to analyze cumulative effects expressed views that the
                consideration of cumulative impacts could be redundant and that removal
                of cumulative effects would reduce the time it takes to complete the
                NEPA process. Other commenters were neutral on the change but expressed
                views that the proposed change would be controversial and could lead to
                potential litigation or delays. The 2020 Rule eliminated the
                ``cumulative effects'' language, adopting the view that the analysis of
                cumulative effects was too broad, categorizing and determining the
                scope of cumulative effects is difficult and can divert agency
                resources from the most significant effects, and the analysis of
                cumulative effects could require agency attention to information that
                is irrelevant or inconsequential, and did not lead to informed decision
                making.
                 CEQ considered these comments and the rationale described in the
                2020 Rule when developing this proposal. CEQ has changed its view and
                does not consider the term cumulative effects to be too broadly defined
                in the 1978 NEPA Regulations or too difficult for agencies to
                meaningfully implement. As explained earlier in this section, CEQ's own
                prior guidelines and guidance, along with decades of agency practice
                and longstanding legal precedent have interpreted NEPA to require
                agencies to consider cumulative effects. While the 2020 Rule found that
                cumulative effects was previously too broadly defined, the removal of
                ``cumulative effects'' created an even less clear definition of
                effects, resulting in more confusion and uncertainty about what type of
                effects analysis is necessary. Rather than diverting agency resources
                or focusing on effects that are irrelevant or inconsequential, as the
                2020 Rule stated with respect to cumulative effects analysis, CEQ
                considers analysis of reasonably foreseeable cumulative effects to be
                an important part of NEPA analysis, helping the public and decision
                makers understand the full scope of potential impacts from a proposed
                action. Reasonably foreseeable cumulative effects are not irrelevant or
                inconsequential; for example, aggregate air and water pollution and
                habitat impacts affect long-term environmental conditions, wildlife,
                and communities--including in regions already overburdened by
                pollution. Analyzing reasonably foreseeable cumulative effects is
                consistent with NEPA's text and purpose and better informs decision
                makers about important aspects of proposed actions and their
                alternatives. Further, CEQ is not aware of any evidence supporting the
                claim that evaluation of cumulative effects necessarily leads to longer
                timelines, especially given the long history of agency and practitioner
                experience with this type of analysis as well as modern techniques that
                leverage science and technology to make reviews comprehensive yet
                efficient. And clarity on analyzing reasonably foreseeable cumulative
                effects, as proposed, would outweigh the speculative potential for
                shorter NEPA documents or timeframes.
                 CEQ shares the view that environmental reviews should be efficient
                and effective and will continue to evaluate the NEPA process for
                opportunities to improve timeliness consistent with NEPA's purposes.
                However, CEQ disagrees that requiring analysis of reasonably
                foreseeable cumulative effects causes unacceptably long NEPA processes.
                Further, by deleting the definition of cumulative effects, the 2020
                Rule did not prohibit agencies from evaluating reasonably foreseeable
                cumulative effects and therefore, it was not certain to result in
                faster and less burdensome NEPA analyses. Rather, in affirmatively
                repealing the defined term from the regulations, the 2020 Rule has
                caused confusion and cast doubt as to whether agencies can and should
                continue to do this analysis. Finally, consideration of cumulative
                effects is important in order to fully inform agency decision makers
                before actions are taken, and effects analysis remains bound by the
                notion of reasonable foreseeability. CEQ invites comment on this
                proposed change.
                3. Removing Limitations on Effects Analysis
                 In proposing to restore the definition of ``effects'' from the 1978
                NEPA Regulations, CEQ would remove changes made in the 2020 Rule
                stating that effects are those ``that are reasonably foreseeable and
                have a reasonably close causal relationship to the proposed action or
                alternatives.'' 40 CFR 1508.1(g). CEQ also proposes to remove and
                replace Sec. 1508.1(g)(2), which states that ``a `but for' causal
                relationship is insufficient to make an agency responsible for a
                particular effect under NEPA;'' agencies generally should not consider
                effects that are remote in time, geographically remote, or the product
                of a lengthy causal chain; and agencies should not consider effects
                that the agency has no ability to prevent due to its limited statutory
                authority. Finally, the proposed rule would remove as superfluous and
                replace Sec. 1508.1(g)(3), which states that ``[a]n agency's analysis
                of effects shall be consistent with this paragraph.'' This phrase seeks
                to enforce the limitations added to the ``effects'' definition in the
                2020 Rule, which would be unnecessary if the limitations are removed.
                 The definition of ``effects'' in the 1978 NEPA Regulations gave
                agencies the discretion to identify the reasonably foreseeable effects
                of a proposed action and its alternatives in light of NEPA's goals. It
                is CEQ's view that this approach provides for more sound decision
                making, including decisions informed by science, and a more
                knowledgeable and engaged public than the definition of ``effects'' in
                the 2020 NEPA Regulations. Whether an effect is reasonably foreseeable
                is a context-specific inquiry that Federal agencies have engaged in for
                more than 40 years. Agencies have made these determinations guided by
                agency procedures and practice, evolving scientific understanding about
                natural systems and environmental outcomes, and court decisions.
                 The current definition of ``effects'' has internal inconsistencies,
                which make it
                [[Page 55766]]
                confusing to apply. The introductory paragraph of 40 CFR 1508.1(g)
                states that effects ``may include'' those that are later in time and
                farther removed in distance, but paragraph (g)(2) states that effects
                ``should generally not be considered if they are remote in time,
                geographically remote, or the product of a lengthy causal chain.'' This
                creates confusion as to whether agencies can or should consider these
                types of effects, potentially leading to inconsistent application of
                NEPA, public confusion or controversy, and enhanced risk of litigation
                and concomitant delays in the NEPA process.
                 Removing the language from Sec. 1508.1(g)(2) limiting the
                consideration of temporally or geographically removed environmental
                effects and effects that are a product of a lengthy causal chain would
                better align with the statutory text, which does not include any of
                these qualifiers and instead directs agencies to produce a detailed
                statement on the ``environmental impact of [a] proposed action,'' ``any
                adverse environmental effects which cannot be avoided,'' and ``the
                relationship between local short-term uses of man's environment and the
                maintenance and enhancement of long-term productivity.'' 42 U.S.C.
                4332(2)(C) (emphasis added). Many consequential reasonably foreseeable
                environmental effects, such as toxic releases into air or water and
                greenhouse gas emissions that contribute to climate change, often occur
                remote in time or place from the original action or are a product of a
                causal chain. For instance, when considering a potential Federal action
                that would permit fossil fuel extraction, it is reasonably foreseeable
                that the fossil fuel will be extracted, transported, and ultimately
                combusted to create energy, all of which cause air pollution that can
                have adverse public health and environmental effects. Thus, the 2020
                Rule's limiting language could cause Federal agencies to omit critical
                categories of effects from analysis and disclosure, frustrating NEPA's
                core purpose and Congressional intent. Similarly, the statement that
                ``a `but for' causal relationship is insufficient to make an agency
                responsible for a particular effect under NEPA'' added a confusing new
                standard to apply that could cause agencies to omit reasonably
                foreseeable effects in NEPA reviews, contrary to NEPA's statutory
                purpose to promote informed decision making. CEQ disagrees that this
                language would help agencies better understand what effects they need
                to analyze and discuss, helping to reduce delays and paperwork with
                unnecessary analyses. Rather, the new language poses new implementation
                and interpretation challenges that could, in turn, create delays and
                conflict. The definition of ``effects'' that CEQ proposes to restore
                does not require that agencies disclose every possible effect; rather,
                the standard under NEPA has long been whether effects are reasonably
                foreseeable.
                 Similarly, the direction in the 2020 Rule to exclude ``effects that
                the agency has no ability to prevent due to its limited statutory
                authority or would occur regardless of the proposed action'' unduly
                limits agency discretion. CEQ proposes to remove this limitation
                because agencies may conclude that analyzing and disclosing such
                effects will provide important information to decision makers and the
                public. For example, agencies may need to analyze and disclose
                reasonably foreseeable growth and development that will occur if they
                authorize infrastructure projects such as highway interchanges or
                causeways, even if they do not have general land use authority. See,
                e.g., Sierra Club v. Marsh, 769 F.2d 868 (1st Cir. 1985); City of Davis
                v. Coleman, 521 F.2d 661 (9th Cir. 1975). Reasonably foreseeable
                environmental effects do not fall neatly within discrete agency
                jurisdictional or regulatory confines; rather, agencies make decisions
                about reviews and authorizations that have real world impacts,
                including effects like water or air pollution that are measurable and
                ascertainable yet may have physical effects outside an agency's
                statutory purview.
                 CEQ's proposal to restore the definition of ``effects'' from the
                1978 NEPA Regulations is consistent with the U.S. Supreme Court's
                decision in Department of Transportation v. Public Citizen, 541 U.S.
                752 (2004), which the 2020 Rule identified as the authority for the
                revised definition. In this case, the Supreme Court explained that NEPA
                and the 1978 NEPA Regulations are governed by a ``rule of reason.'' Id.
                at 767. The Federal Motor Carrier Safety Administration (FMCSA) was
                required to issue certification and safety regulations for Mexican
                trucks entering the United States, id. at 760, and had no ability to
                deny certification if trucks met the requirements, id. at 758-59. The
                Court held that, based on FMCSA's limited statutory authority, it was
                not arbitrary and capricious for FMCSA to exclude from its NEPA
                analysis the effects of trucks entering the United States that would
                result from the President's commitment to lift a moratorium on Mexican
                truck entry once FMCSA issued the regulations. See id. at 770. By
                affirming FMCSA's implementation of the 1978 NEPA Regulations under a
                substantial deference standard of review, the Court did not hold that
                agencies may not consider a broader range of effects in other
                circumstances, as the 2020 Rule suggests. Instead, the Court held that
                FMCSA's effects analysis in the specific factual and legal context of
                its proposed action was reasonable and not arbitrary and capricious.
                 It is CEQ's view that establishing a regulatory limitation on the
                scope of NEPA analysis drawn from Public Citizen does not lead to
                improved agency decision making, enhanced public participation, or a
                better-informed public. Rather, as CEQ has heard from NEPA
                practitioners and outside stakeholders, these limitations undermine
                sound decision making by creating confusion with respect to NEPA
                implementation, departing from CEQ's consistent interpretation of NEPA
                prior to 2020, breaking from science-based decisions, and potentially
                limiting relevant NEPA analysis with negative repercussions in critical
                areas such as climate change and environmental justice. NEPA has long
                been understood to require only analysis of effects that are
                ``reasonably foreseeable,'' but the limitations added by the 2020 NEPA
                Regulations could undermine longstanding agency discretion to determine
                the appropriate scope of analysis or result in agencies making less
                informed decisions contrary to NEPA's stated goals.
                 Numerous commenters addressed these limitations during the
                rulemaking for the 2020 NEPA Regulations. Many opposed the limitations,
                expressing views that requiring a close causal relationship could be
                confusing to implement and could inappropriately constrain
                consideration of reasonably foreseeable impacts of a proposed action on
                the human environment, undermining the purpose of NEPA. Those opposed
                also expressed views that the new limitations could be used to justify
                the exclusion of effects of a proposed action including air or water
                pollution affecting communities or wildlife located outside the
                immediate vicinity of the proposed action that are nonetheless
                reasonably foreseeable. For example, the limitations could cause
                agencies to exclude consideration of the effects to a community that
                relies on a water source downstream from a project area that is
                indirectly impacted by the proposed action's water quality effects.
                Some commenters also stated that the term ``remote'' is too vague and
                relative. Those who supported the limitations expressed views that the
                changes were in keeping with the judicial precedent
                [[Page 55767]]
                cited in the proposed rule and could help cut the length and time of
                NEPA analysis by reducing burdens on Federal agencies; however,
                commenters did not provide evidence demonstrating how inclusion of
                these limitations would help cut the length and time of NEPA analysis.
                 Upon reconsidering the position taken in the 2020 NEPA Regulations,
                CEQ proposes to remove these provisions in order to improve clarity on
                the types of effects that agencies must consider, eliminate
                restrictions that may conflict with scientific understanding of
                environmental outcomes, and better inform decision makers and the
                public about the full suite of reasonably foreseeable effects of a
                proposed action and its alternatives. CEQ disagrees that the provisions
                added in 2020 will reduce burdens on Federal agencies, given that
                Federal agencies have long operated under the definition of ``effects''
                as defined in the 1978 NEPA Regulations and may have existing NEPA
                procedures aligned with the 1978 definitions. The 2020 Rule indicated
                that the added provisions would help agencies better understand what
                effects need to be analyzed and discussed and would reduce delays and
                unnecessary analysis. However, agencies have indicated confusion about
                how to apply the ``close causation'' and ``but for'' limitations in the
                current definition of effects and are concerned that the 2020 Rule may
                preclude them from considering the same range of effects as the 1978
                Regulations. With the proposed changes in this rulemaking, CEQ seeks to
                reduce confusion and provide clarity on the effects that agencies must
                consider and does not agree that removing this language will directly
                result in delays. Additionally, providing clarity to agencies and the
                public on what is required provides benefits to the environmental
                review process that outweigh any uncertain potential for shorter
                timeframes. CEQ requests comment on these changes. CEQ also invites
                comments on whether CEQ should provide in a Phase 2 rulemaking more
                specificity about the manner in which agencies should analyze certain
                categories of effects.
                IV. Rulemaking Analyses and Notices
                A. Executive Order 12866, Regulatory Planning and Review
                 E.O. 12866 provides that the Office of Information and Regulatory
                Affairs will review all significant rules.\37\ E.O. 13563 reaffirms the
                principles of E.O. 12866, calling for improvements in the Federal
                Government's regulatory system to promote predictability, reduce
                uncertainty, and use the best, most innovative, and least burdensome
                tools for achieving regulatory objectives.\38\ This proposed rule is a
                significant regulatory action that CEQ submitted to OMB for review. The
                proposed changes would remove uncertainty created by the 2020 Rule to
                benefit agencies and the public. Removing constraints on agency NEPA
                analyses could result in longer review timeframes, but these changes do
                not obligate agencies to undertake longer, more complicated analyzes.
                If agencies choose to consider additional alternatives and conduct more
                robust analyses, these analyses should improve societal outcomes by
                improving agency decision making. Since individual cases will vary, the
                magnitude of potential costs and benefits resulting from these proposed
                changes are difficult to anticipate. Therefore, CEQ has not quantified
                them. CEQ invites public comment on those expected impacts and the role
                they should play in informing the final rule.
                ---------------------------------------------------------------------------
                 \37\ 58 FR 51735 (Oct. 4, 1993).
                 \38\ 76 FR 3821 (Jan. 21, 2011).
                ---------------------------------------------------------------------------
                B. Regulatory Flexibility Act and Executive Order 13272, Proper
                Consideration of Small Entities in Agency Rulemaking
                 The Regulatory Flexibility Act (RFA), as amended, 5 U.S.C. 601 et
                seq., and E.O. 13272 \39\ require agencies to assess the impacts of
                proposed and final rules on small entities. Under the RFA, small
                entities include small businesses, small organizations, and small
                governmental jurisdictions. An agency must prepare an Initial
                Regulatory Flexibility Analysis (IRFA) unless it determines and
                certifies that a proposed rule, if promulgated, would not have a
                significant economic impact on a substantial number of small entities.
                5 U.S.C. 605(b). The proposed rule would not directly regulate small
                entities. Rather, the proposed rule would apply to Federal agencies and
                set forth the process for their compliance with NEPA. Accordingly, CEQ
                hereby certifies that the proposed rule, if promulgated, would not have
                a significant economic impact on a substantial number of small
                entities.
                ---------------------------------------------------------------------------
                 \39\ 67 FR 53461 (Aug. 16, 2002).
                ---------------------------------------------------------------------------
                C. National Environmental Policy Act
                 Under the CEQ regulations, major Federal actions may include
                regulations. When CEQ issued regulations in 1978, it prepared a
                ``special environmental assessment'' for illustrative purposes pursuant
                to E.O. 11991.\40\ The NPRM for the 1978 rule stated ``the impacts of
                procedural regulations of this kind are not susceptible to detailed
                analysis beyond that set out in the assessment.'' \41\ Similarly, in
                1986, while CEQ stated in the final rule that there were ``substantial
                legal questions as to whether entities within the Executive Office of
                the President are required to prepare environmental assessments,'' it
                also prepared a special environmental assessment.\42\ The special
                environmental assessment issued in 1986 made a finding of no
                significant impact, and there was no finding made for the assessment of
                the 1978 final rule.
                ---------------------------------------------------------------------------
                 \40\ 43 FR 25230 (June 9, 1978).
                 \41\ Id.
                 \42\ 51 FR 15618, 15619 (Apr. 25, 1986).
                ---------------------------------------------------------------------------
                 CEQ continues to take the position that a NEPA analysis is not
                required for establishing or updating NEPA procedures. See Heartwood v.
                U.S. Forest Serv., 230 F.3d 947, 954-55 (7th Cir. 2000) (finding that
                neither NEPA or the CEQ regulations required the Forest Service to
                conduct an environmental assessment or an EIS prior to the promulgation
                of its procedures creating a categorical exclusion). Nevertheless,
                based on past practice, CEQ has developed a special environmental
                assessment and has posted it in the docket. CEQ invites comments on the
                special environmental assessment.
                D. Executive Order 13132, Federalism
                 E.O. 13132 requires agencies to develop an accountable process to
                ensure meaningful and timely input by state and local officials in the
                development of regulatory policies that have federalism
                implications.\43\ Policies that have federalism implications include
                regulations that have substantial direct effects on the states, on the
                relationship between the Federal Government and the states, or on the
                distribution of power and responsibilities among the various levels of
                government. CEQ does not anticipate that this proposed rule has
                federalism implications because it applies to Federal agencies, not
                states.
                ---------------------------------------------------------------------------
                 \43\ 64 FR 43255 (Aug. 10, 1999).
                ---------------------------------------------------------------------------
                E. Executive Order 13175, Consultation and Coordination With Indian
                Tribal Governments
                 E.O. 13175 requires agencies to have a process to ensure meaningful
                and timely input by Tribal officials in the development of policies
                that have Tribal implications.\44\ Such policies include regulations
                that have substantial direct effects on one or more Indian Tribes, on
                the relationship between the Federal
                [[Page 55768]]
                Government and Indian Tribes, or on the distribution of power and
                responsibilities between the Federal Government and Indian Tribes. CEQ
                has assessed the impact of this proposed rule on Indian Tribal
                governments and has determined preliminarily that the proposed rule
                would not significantly or uniquely affect these communities but seeks
                comment on this preliminary determination. However, CEQ plans to engage
                in government-to-government consultation with federally recognized
                Tribes and Alaska Native Corporations on its NEPA regulations
                generally.
                ---------------------------------------------------------------------------
                 \44\ 65 FR 67249 (Nov. 9, 2000).
                ---------------------------------------------------------------------------
                F. Executive Order 12898, Federal Actions To Address Environmental
                Justice in Minority Populations and Low-Income Populations
                 E.O. 12898 requires agencies to make achieving environmental
                justice part of their missions by identifying and addressing, as
                appropriate, disproportionately high and adverse human health or
                environmental effects of their programs, policies, and activities on
                minority populations and low-income populations.\45\ CEQ has analyzed
                this proposed rule and preliminarily determined that it would not cause
                disproportionately high and adverse human health or environmental
                effects on minority populations and low-income populations. This rule
                would set forth implementing regulations for NEPA; it is in the agency
                implementation of NEPA when conducting reviews of proposed agency
                actions where consideration of environmental justice effects typically
                occurs. CEQ invites comment on this preliminary determination.
                ---------------------------------------------------------------------------
                 \45\ 59 FR 7629 (Feb. 16, 1994).
                ---------------------------------------------------------------------------
                G. Executive Order 13211, Actions Concerning Regulations That
                Significantly Affect Energy Supply, Distribution, or Use
                 Agencies must prepare a Statement of Energy Effects for significant
                energy actions under E.O. 13211.\46\ CEQ has preliminarily determined
                that this rulemaking is not a ``significant energy action'' because it
                is not likely to have a significant adverse effect on the supply,
                distribution, or use of energy.
                ---------------------------------------------------------------------------
                 \46\ 66 FR 28355 (May 22, 2001).
                ---------------------------------------------------------------------------
                H. Executive Order 12988, Civil Justice Reform
                 Under section 3(a) of E.O. 12988,\47\ agencies must review their
                proposed regulations to eliminate drafting errors and ambiguities,
                draft them to minimize litigation, and provide a clear legal standard
                for affected conduct. Section 3(b) provides a list of specific issues
                for review to conduct the reviews required by section 3(a). CEQ has
                conducted this review and determined that this proposed rule complies
                with the requirements of E.O. 12988.
                ---------------------------------------------------------------------------
                 \47\ 61 FR 4729 (Feb. 7, 1996).
                ---------------------------------------------------------------------------
                I. Unfunded Mandate Reform Act
                 Section 201 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.
                1531, requires Federal agencies to assess the effects of their
                regulatory actions on state, local, and Tribal governments, and the
                private sector to the extent that such regulations incorporate
                requirements specifically set forth in law. Before promulgating a rule
                that may result in the expenditure by a state, Tribal, or local
                government, in the aggregate, or by the private sector of $100 million,
                adjusted annually for inflation, in any 1 year, an agency must prepare
                a written statement that assesses the effects on state, Tribal, and
                local governments and the private sector. 2 U.S.C. 1532. This proposed
                rule would apply to Federal agencies and would not result in
                expenditures of $100 million or more for state, local, and Tribal
                governments, in the aggregate, or the private sector in any 1 year.
                This proposed action also would not impose any enforceable duty,
                contain any unfunded mandate, or otherwise have any effect on small
                governments subject to the requirements of 2 U.S.C. 1531-1538.
                J. Paperwork Reduction Act
                 This proposed rule would not impose any new information collection
                burden that would require additional review or approval by OMB under
                the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et seq.
                List of Subjects in 40 CFR Parts 1502, 1507, and 1508
                 Administrative practice and procedure, Environmental impact
                statements, Environmental protection, Natural resources.
                Brenda Mallory,
                Chair.
                 For the reasons discussed in the preamble, the Council on
                Environmental Quality proposes to amend parts 1502, 1507, and 1508 in
                title 40 of the Code of Federal Regulations as follows:
                PART 1502--ENVIRONMENTAL IMPACT STATEMENT
                0
                1. Revise the authority citation for part 1502 to read as follows:
                 Authority: 42 U.S.C. 4321-4347; 42 U.S.C. 4371-4375; 42 U.S.C.
                7609; and E.O. 11514, 35 FR 4247, 3 CFR, 1966-1970, Comp., p. 902,
                as amended by E.O. 11991, 42 FR 26967, 3 CFR, 1977 Comp., p. 123.
                0
                2. Revise Sec. 1502.13 to read as follows:
                Sec. 1502.13 Purpose and need.
                 The statement shall briefly specify the underlying purpose and need
                to which the agency is responding in proposing the alternatives
                including the proposed action.
                PART 1507--AGENCY COMPLIANCE
                0
                3. Revise the authority citation for part 1507 to read as follows:
                 Authority: 42 U.S.C. 4321-4347; 42 U.S.C. 4371-4375; 42 U.S.C.
                7609; and E.O. 11514, 35 FR 4247, 3 CFR, 1966-1970, Comp., p. 902,
                as amended by E.O. 11991, 42 FR 26967, 3 CFR, 1977 Comp., p. 123.
                0
                4. Amend Sec. 1507.3 by revising paragraphs (a) and the introductory
                text of paragraph (b) to read as follows:
                Sec. 1507.3 Agency NEPA procedures.
                 (a) The Council has determined that the categorical exclusions
                contained in agency NEPA procedures as of September 14, 2020, are
                consistent with this subchapter.
                 (b) No more than 36 months after September 14, 2020, or 9 months
                after the establishment of an agency, whichever comes later, each
                agency shall develop or revise, as necessary, proposed procedures to
                implement the regulations in this subchapter. When the agency is a
                department, it may be efficient for major subunits (with the consent of
                the department) to adopt their own procedures.
                * * * * *
                PART 1508--DEFINITIONS
                0
                5. Revise the authority citation for part 1508 to read as follows:
                 Authority: 42 U.S.C. 4321-4347; 42 U.S.C. 4371-4375; 42 U.S.C.
                7609; and E.O. 11514, 35 FR 4247, 3 CFR, 1966-1970, Comp., p. 902,
                as amended by E.O. 11991, 42 FR 26967, 3 CFR, 1977 Comp., p. 123.
                0
                6. Amend Sec. 1508.1 by revising paragraphs (g) and (z) to read as
                follows:
                Sec. 1508.1 Definitions.
                * * * * *
                 (g) Effects or impacts means changes to the human environment from
                the proposed action or alternatives and include the following:
                 (1) Direct effects, which are caused by the action and occur at the
                same time and place.
                 (2) Indirect effects, which are caused by the action and are later
                in time or farther removed in distance, but are still reasonably
                foreseeable. Indirect effects may include growth inducing effects and
                other effects related to induced
                [[Page 55769]]
                changes in the pattern of land use, population density or growth rate,
                and related effects on air and water and other natural systems,
                including ecosystems.
                 (3) Cumulative effects, which are effects on the environment that
                result from the incremental effects of the action when added to the
                effects of other past, present, and reasonably foreseeable actions
                regardless of what agency (Federal or non-Federal) or person undertakes
                such other actions. Cumulative effects can result from individually
                minor but collectively significant actions taking place over a period
                of time.
                 (4) Effects include ecological (such as the effects on natural
                resources and on the components, structures, and functioning of
                affected ecosystems), aesthetic, historic, cultural, economic, social,
                or health, whether direct, indirect, or cumulative. Effects may also
                include those resulting from actions which may have both beneficial and
                detrimental effects, even if on balance the agency believes that the
                effects will be beneficial.
                * * * * *
                 (z) Reasonable alternatives means a reasonable range of
                alternatives that are technically and economically feasible, and meet
                the purpose and need for the proposed action.
                * * * * *
                [FR Doc. 2021-21867 Filed 10-6-21; 8:45 am]
                BILLING CODE 3325-F2-P
                

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