The U.S. Nuclear Regulatory Commission (NRC or Commission) issued a Staff Requirements Memorandum (SRM) on July 28, 2025, directing NRC staff to proceed with rulemaking to implement the National Environmental Policy Act (NEPA) amendments from the Fiscal Responsibility Act of 2023 (FRA). The Commission largely approved the staff's recommendations from SECY-24-0046, which was submitted in May 2024, with some modifications.
Key Elements of the Approved Rulemaking
The proposed rulemaking will explore several significant changes to NRC's NEPA implementation regulations in 10 C.F.R. Part 51, including:
- modifying purpose and need statements to focus on the "agency action" and proposed no action alternative (i.e., eliminating consideration of alternatives that would be outside of the NRC's jurisdiction) and limiting reviews of the "irreversible and irretrievable commitments" of resources to "federal" resources
- revising 10 C.F.R. Section 51.20(b) to eliminate requirements to prepare environmental impact statements in certain situations regardless of the actual environmental impact and statutory requirements of NEPA
- authorizing project sponsors to prepare environmental documents with NRC oversight
- implementing various efficiency measures, including expedited deadlines, bifurcated application submittals, clearer acceptance criteria and improved pre-application interactions between project sponsors and staff
In addition to the proposed rulemaking, the Commission directed staff to consider new guidance or update existing guidance to ensure consistent application of programmatic environmental documents. The Commission also directed staff to consider establishing new categorical exclusions for several actions, including subsequent license renewals, power uprates, microreactor licensing, advanced demonstration projects and site decommissioning.
Impact of Seven County
Notably, the Commission instructed staff to examine how the U.S. Supreme Court's recent decision in Seven County Infrastructure Coalition v. Eagle County, Colorado, No. 23-875 (2025) might affect the scope of NRC's environmental reviews. (See Holland & Knight's previous alert, "U.S. Supreme Court Grapples with Loper Bright in the Context of NEPA Reviews," June 2, 2025.) In Seven County, the Supreme Court afforded substantial deference to agencies in determining the scope of environmental reviews while stating that NEPA review need not include consideration of other projects that occur upstream or downstream of the proposed agency action or that otherwise may not be completed but for the completion of the proposed project, nor projects over which the agency has no jurisdiction. In doing so, the Supreme Court emphasized that NEPA is a purely procedural statute and was not intended as a tool to block or delay projects.
Broader Context
The NRC's actions come amid significant upheaval in federal environmental review requirements.
NEPA Legislation
Enacted in 2023, the FRA included the first major changes to NEPA since being signed into law more than 50 years ago, including limitations on alternatives analysis, page limits for environmental documents, requirements for timely completion of reviews and a new ability for seeking judicial review when agencies miss the statutory deadlines. In July 2025, the One Big Beautiful Bill Act added a new section to NEPA allowing project proponents to have NEPA reviews completed within 180 days upon payment of a fee. In addition, the SPEED Act has recently been introduced to further amend NEPA.
Changes to CEQ Authority
The Council on Environmental Quality (CEQ) originally introduced regulations implementing NEPA in 1978, pursuant to Executive Order (EO) 11991, which remained intact and relatively unchanged until CEQ revised its regulations in 2020. CEQ made subsequent revisions in 2022 and 2024. In late 2024, the U.S. Court of Appeals for the District of Columbia Circuit held in Marin Audubon Soc'y v. Fed. Aviation Admin., No. 23-1067 (D.C. Cir. Nov. 12, 2024), that the CEQ does not have authority to issue binding regulations. On his first day back in office, President Donald Trump issued EO 14154, which, among other things, rescinded EO 11991. Subsequently, CEQ rescinded its NEPA regulations, and the Trump Administration directed agencies to continue using the most recent CEQ regulations while working quickly to develop their own regulations. Notably, NRC regulations still cross-reference a 1978 version of the CEQ regulations.
Nuclear Executive Orders
Most recently, in May 2025, the Trump Administration issued four EOs aimed at speeding up nuclear energy deployment. (See Holland & Knight's previous alert, "President Trump Signs 4 Executive Orders to Deploy New Nuclear Reactors, Strengthen Supply Chain," May 28, 2025.) The orders specifically seek to streamline licensing, including associated environmental reviews.
Next Steps
NRC staff will develop a rulemaking plan to implement these changes. The Commission specifically directed staff to seek public comment on:
- ways to preserve meaningful public engagement despite potential reductions in transparency
- additional environmental documents that could streamline future reviews
- how interagency coordination under the FRA can improve efficiency in environmental reviews
This rulemaking represents a significant shift in how the NRC will conduct environmental reviews for nuclear facility licensing and could substantially streamline the NEPA process for nuclear projects. The rulemaking process is expected to draw substantial interest and public comments from the industry and its stakeholders.
Holland & Knight attorneys will continue to monitor developments related to these NEPA reforms and their implications for nuclear project development.
