NEPA

The National Environmental Policy Act, a federal law requiring federal agencies to assess the environmental effects of proposed major federal actions before making decisions.

What is NEPA?

The National Environmental Policy Act (NEPA) is the foundational federal environmental law in the United States, enacted in 1970. NEPA requires federal agencies to assess the environmental effects of their proposed actions before making decisions. It applies when a project involves federal funding, federal permits, or federal land — meaning that many large-scale development projects trigger NEPA review even though they are primarily regulated at the local level.

When NEPA Applies

NEPA is triggered by a federal nexus — a connection between the project and federal government action. Common triggers include federal funding (highway projects, transit projects, housing programs), federal permits (Army Corps of Engineers wetland permits, EPA permits), and actions on federal land. Projects without a federal nexus are not subject to NEPA, though they may be subject to state environmental laws like CEQA.

NEPA Review Process

The NEPA process involves three levels of review: a Categorical Exclusion (CE) for actions that normally don't have significant effects, an Environmental Assessment (EA) for actions that may or may not have significant effects (leading to a Finding of No Significant Impact or an EIS), and an Environmental Impact Statement (EIS) for actions that will significantly affect the environment. The EIS process includes public scoping, draft EIS, public comment, and final EIS.

NEPA and Development

For private development projects, NEPA becomes relevant primarily when federal permits or funding are involved. Transportation infrastructure, large mixed-use projects with federal transit grants, and developments in wetland areas frequently require NEPA review. Recent regulatory changes have sought to streamline NEPA review timelines, though the process remains lengthy for complex projects.