On February 24, 2026, the Department of the Interior published its final rule in the Federal Register, overhauling the regulations implementing the National Environmental Policy Act (NEPA). The Rule adopts the interim final rule published on July 3, 2025, with minor changes.

NEPA was signed into law by President Richard Nixon in 1970 and requires federal agencies to assess the environmental impacts of major projects.

In particular, the Rule rescinds 80 percent of the DOI’s prior NEPA regulations and moves them into a streamlined “Departmental NEPA Handbook of Implementing Procedures.” The remaining regulations focus on governing when and how to comply with NEPA, identifying which of the NEPA procedures should be used in the various decision-making processes, and protecting the ability of state and local governments to be part of the analysis process.

However, the handbook does contain several new provisions. For example, the DOI has included a new section in the Rule designating lead agencies and codifying procedures for federal, state, local, and tribal officials with special expertise to continue being involved in the development of NEPA reviews. In addition, the Rule incorporates the U.S. Supreme Court’s guidance in Seven County Infrastructure Coalition (previously covered by ELM here) with respect to an “environmental effects” analysis. In other words, the DOI has moved away from using the terminology of “direct,” “indirect,” and “cumulative” effects, which it characterizes as artificial distinctions not found in the statute.

The handbook also requires agencies to solicit public comment only when an agency issues a notice of intent to prepare an environmental impact statement. Notably, public comment is not required for environmental assessments. However, the DOI and its bureaus still have the authority to request additional public comments if they believe it is appropriate or useful.

Proponents of the Rule state that it will cut unnecessary bureaucracy, speed up the approval process, and reduce costs for projects across public lands, while those opposed to the Rule argue that it creates uncertainty and does not allow for public input, resulting in less public participation. The Rule, which became effective on February 24, 2026, has already been the source of much debate and litigation, and it is likely to continue into the future.

However, for now, stakeholders should be aware that the DOIs transition to a handbook (in lieu of regulations) may allow the DOI greater flexibility to modify its procedures without having to engage in a formal rulemaking process. Therefore, it is important to continually monitor the handbook for changes and updates in the future.