Recent changes to the U.S. Department of Energy’s (DOE’s) procedures for complying with the National Environmental Policy Act (NEPA), geared at streamlining the environmental review process, may offer some benefits to renewable energy projects.
NEPA was enacted in 1970 and mandates that federal agencies assess the environmental impacts of their actions before proceeding with major projects. NEPA applies to projects when there is federal involvement such as federal funding, certain federal permitting, or federal lands. Until now the review has taken one of three forms: a categorical exclusion (CE), an environmental assessment (EA), or a more comprehensive environmental impact statement (EIS). The form of review selected depends on the project’s scope and potential environmental effects.
Statistically, NEPA applies to a relatively small subset of renewable energy projects because most are not sited on federal lands, do not involve federal funding or grants, and do not involve the type of federal permitting that triggers NEPA. The small percentage of renewables projects that do trigger NEPA have consistently completed the review process more quickly than other project types, often in only one to two years. However, the additional risks, costs, and time to go through the NEPA process have consistently driven developers to avoid the need for any NEPA review, which can limit project siting and loan and grant opportunities, or dictate design plans to avoid certain federal permitting. This is reflected in the statistics – from 2009 to 2023, only about 10% of new solar capacity and 3.7% of new wind capacity underwent NEPA review.
Due to recent changes, there is a reduced burden on developers wishing to develop renewable energy projects in ways that trigger NEPA. In June 2025, DOE implemented sweeping changes to its NEPA procedures, aiming to streamline environmental reviews and accelerate energy infrastructure development. 90 FR 29676, July 3, 2025. Specifically, DOE rescinded its codified regulations under 10 CFR Part 1021 and replaced them with a flexible, guidance-based framework. Key reforms include firm deadlines – two years for EISs and one year for EAs –along with page limits and expanded use of categorical exclusions for low-impact activities like small-scale renewable installations and transmission upgrades. These reforms are designed to reduce permitting delays, lower costs, and provide greater clarity and predictability for developers, key factors in accelerating the deployment of clean energy infrastructure. These changes were driven by amendments in the Fiscal Responsibility Act of 2023, recent executive orders, and a Supreme Court ruling that narrowed the scope of NEPA (Seven County Infrastructure Coalition vs. Eagle County, Colorado).
For instance, the previous 10-acre limit on solar projects qualifying for CEs – which allow for a quicker NEPA process – has been removed, emphasizing that solar projects on previously disturbed or developed land are more likely to qualify for a categorical exclusion, regardless of acreage. Similarly, under the new rules, transmission upgrades and repowering of existing wind facilities are more likely to be excluded from the need for a detailed NEPA review if they meet certain criteria, such as staying within existing corridors and using best environmental practices.
The revised procedures also clarify when NEPA applies. DOE now emphasizes that not all financial assistance triggers NEPA review. For instance, federal grants used solely for planning or reimbursements for completed projects may be exempt from NEPA. Additionally, DOE will coordinate with other federal agencies to produce a single environmental document for multi-agency projects, reducing duplication and improving efficiency. The new procedures will also allow project developers to assist DOE in preparing environmental NEPA documentation with DOE oversight, which will allow both developers to potentially move the process along more quickly and also have a hand in shaping environmental documentation.
Other agencies are following DOE’s lead, including the U.S. Department of Transportation, U.S. Army Corps of Engineers, and the U.S. Department of the Interior, which have recently implemented changes to simplify the NEPA review process as well. Thus, avoiding federal involvement may not be much of a priority in the future.
The DOE’s – and other agencies’ – changes to NEPA procedures will impact how renewable energy projects are reviewed and permitted, hopefully streamlining and simplifying the NEPA process while also removing some NEPA-related barriers to project development. We continue to monitor renewable energy developments extremely closely.
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