In January 2026, the Council on Environmental Quality removed all of its CEQ NEPA regulations from the Code of Federal Regulations. For anyone working in environmental review, this is the biggest change to NEPA in decades.
But what does it actually mean for your project? The short answer: less than you might think, especially if you work on transportation projects.
Here’s what changed, what didn’t, and what you need to know.
What Are CEQ NEPA Regulations?
Understanding what changed -and what didn’t starts with knowing what CEQ NEPA regulations actually were and why they mattered.
The Council on Environmental Quality (CEQ) is a White House office created by NEPA itself in 1969. Its job is to oversee how federal agencies implement NEPA and write the regulations and guidance that tell agencies how to conduct environmental review.
Think of it this way: NEPA is the law. CEQ is the office that tells everyone how to follow it.
Since 1978, CEQ’s NEPA regulations lived at 40 CFR Parts 1500 through 1508. These rules defined the core concepts that environmental practitioners use every day:
- What counts as a “major federal action” (the trigger for NEPA review)
- What goes in an Environmental Assessment vs. an Environmental Impact Statement
- When a Categorical Exclusion applies
- How agencies must involve the public
- What “significantly” means when evaluating environmental impacts
These were not just guidance. They were binding on all federal agencies. Every EA, EIS, and CE determination across the country was built on this framework.
What Happened in January 2026?
In early 2025, President Trump signed Executive Order 14154, “Unleashing American Energy.” The order directed CEQ to remove its NEPA implementing regulations from the Code of Federal Regulations.
CEQ complied. Effective January 8, 2026, the regulations at 40 CFR 1500 through 1508 were formally removed. You can read the Federal Register notice here: Removal of NEPA Implementing Regulations.
This was not a minor tweak. CEQ’s regulations had governed NEPA practice for nearly 50 years. Removing them eliminated the single shared framework that all federal agencies were required to follow.
The removal also addressed a separate legal question. Federal courts had begun ruling that CEQ may not have had the legal authority to issue binding NEPA regulations in the first place. The EO and subsequent removal put that debate to rest.
What Does This Mean for Federal Agencies?
With CEQ’s regulations gone, federal agencies now have more discretion in how they conduct NEPA review. There is no longer a single binding federal framework defining what terms like “significantly,” “cumulative impacts,” or “alternatives analysis” require.
Each agency can now set its own NEPA procedures, or operate with less formal procedures altogether.
In practice, this means:
- Agencies may move faster through environmental review with fewer procedural requirements
- The threshold for what requires an EIS vs. an EA may vary by agency
- Legal challenges to NEPA documents become more complicated because there is no single standard to measure against
- Agencies that haven’t updated their procedures yet are operating in a gray zone
What this looks like in practice is still emerging. Some agencies moved quickly to update their procedures after the removal. Others have not. Until an agency publishes updated NEPA procedures, practitioners are left working from prior guidance, agency custom, and the statute itself — without a shared regulatory baseline to point to.
For project applicants, this uncertainty matters. If you are seeking federal approval from an agency that has not updated its procedures, ask directly: what NEPA process are you following, and where is it documented? Getting that answer in writing protects you if the process is later challenged.
The USDA was one of the first to act. In April 2026, it consolidated seven separate agency NEPA regulations into one department wide framework, claiming up to an 80% reduction in environmental review timelines. Other agencies are expected to follow.
What Still Applies for Transportation Projects?
Here is the critical point for anyone working on federally funded transportation projects:
The Federal Highway Administration has its own NEPA regulations at 23 CFR Part 771. These regulations are separate from CEQ’s rules, and they were not removed.
23 CFR 771 still governs:
- How to determine the class of action for a project (CE, EA, or EIS)
- What unusual circumstances can push a CE eligible project to a higher level of review
- The Categorical Exclusion lists at 771.117(c) and (d)
- EA and EIS process requirements
If you work on federal aid highway projects, your process has not fundamentally changed. The CEQ regulation removal is largely a background event for transportation practitioners. The rules you work under every day are still in place.
What About the Terms CEQ Defined?
Concepts like “categorical exclusion,” “environmental assessment,” “finding of no significant impact,” and “significance” were defined in CEQ’s regulations. With those definitions removed at the federal level, agencies are now responsible for defining these terms in their own procedures.
For transportation practitioners, FHWA’s 23 CFR 771 has always included its own definitions and procedures. Those were always separate from CEQ’s regulations and they remain in place.
For projects under other federal agencies, the answer is less clear. Check your agency’s specific NEPA procedures for current definitions and requirements.
The practical risk is inconsistency. Two agencies reviewing the same type of project may now reach different conclusions about what requires an EIS, what qualifies as a CE, or what level of impact is “significant.” That inconsistency may take years to work out through agency rulemaking and litigation.
What Is CEQ Doing Now?
CEQ has not gone quiet. Even without binding CEQ NEPA regulations in place, the office is still issuing guidance that shapes how agencies implement the law.
In April 2026, CEQ issued new guidance to all federal agencies on how to establish, revise, adopt, and apply Categorical Exclusions under NEPA. You can read it here: CEQ CE Guidance, April 2026.
The guidance signals a continued push toward expanded CE use for routine infrastructure projects. If more project types qualify as CEs, agencies can skip the EA or EIS process entirely. This has significant implications for project timelines — CE determinations are typically much faster than preparing a full EA or EIS.
The key difference from before: this guidance is not binding. Agencies can follow it, adapt it, or ignore it. The old regulations required compliance. Guidance only recommends it.
FAQ
Does NEPA still apply after CEQ removed its regulations?
Yes. NEPA itself is a federal statute passed by Congress. CEQ’s regulations were the implementing rules, not the law itself. Removing the regulations does not eliminate NEPA. Federal agencies are still required to assess environmental impacts before taking major federal actions.
Does this affect CEQA in California?
No. CEQA is California state law and is entirely separate from NEPA. The removal of CEQ’s federal regulations has no effect on CEQA requirements.
What if I work on a non-transportation federal project?
If your projects are reviewed under EPA, USDA, HUD, or another federal agency, their NEPA procedures may be changing. The USDA has already restructured. Check your agency’s current guidance before assuming prior procedures still apply.
Is this change permanent?
It is a regulatory action, not a change to the statute. A future administration could restore CEQ’s implementing regulations. Agency level changes like the USDA restructuring could also be revised. The statute itself requires an act of Congress to change.
Where can I find the actual removal notice?
The Federal Register notice is here: https://www.federalregister.gov/documents/2026/01/08/2026-00178/removal-of-national-environmental-policy-act-implementing-regulations
The Bottom Line
CEQ removing its NEPA regulations is the most significant structural change to NEPA in nearly 50 years. It shifts power from a centralized framework to individual agencies, gives agencies more discretion, and creates uncertainty for projects outside the transportation sector.
For transportation practitioners, the practical impact is limited because FHWA’s own regulations remain in place. But the broader NEPA landscape is shifting, and staying current on agency specific procedures matters more now than it did a year ago.
Sources: Federal Register, January 8, 2026 (CEQ regulation removal); Federal Register, April 13, 2026 (CEQ CE guidance); National Law Review (CEQ authority analysis)