On May 01, 2024, The Council on Environmental Quality (CEQ) issued a final rule to update the governmentwide National Environmental Policy Act (NEPA) implementing regulations. This rule applies to all federal environmental reviews, including HUD environmental reviews under 24 CFR parts 50 and 58. The CEQ final rule goes into effect on July 1, 2024. It applies only to new environmental reviews started after July 01, regardless of the level of review.

The rule incorporates the statutory amendments to NEPA from the Fiscal Responsibility Act of 2023 (FRA) that was signed into law in June of 2023. The rule also modernizes the NEPA process, improves efficiency and effectiveness, and encourages expanded analysis of environmental and climate change impacts for more resilient and protective project outcomes. The rule makes many changes to the governmentwide NEPA-implementing procedures.

Key changes to the environmental review process include:

• An update to the definition of “major federal action”
• Expanded use of programmatic reviews and tiering
• Expanded use of other federal agencies’ Categorical Exclusions and environmental reviews
• Codification of the page and time limits for environmental reviews from the FRA
  • For Environmental Assessments (EAs), the page limit is 75 pages, and the time limit is one year to complete.
  • For Environmental Impact Statements (EISs) the page limit is 150 pages (300 for EISs of extraordinary complexity) and two years to complete.
  • For EAs, the start date of the one-year period is the date of the decision to prepare an EA; while the start date of the two-year period for EISs is the date of the publication of the NOI
• Required consideration of greenhouse gas (GHG) emissions, including quantification of reasonably foreseeable emissions, where feasible, or an explanation of why GHG cannot be considered
• Required use of high-quality information, including reliable data and resources, models, and Indigenous Knowledge
• Renewed emphasis on environmental justice and public participation

At this time, HUD does not expect major impacts to the way HUD environmental reviews are conducted under Part 50 and part 58 and HUD’s environmental review process remains substantially the same. For all environmental reviews started after July 01, 2024, HUD environmental review preparers must track the start date for all EAs and EISs to comply with the time limits set in the FRA and CEQ final rule. HUD’s Office of Environment and Energy (OEE) will communicate any additional changes to HUD’s ER process prior to them being implemented.

Additionally, OEE does not expect any significant changes to HUD’s Environmental Review Online System (HEROs) as a result of the CEQ rule. Use of HEROS will facilitate and expedite the development, documentation, and management of environmental reviews for HUD assisted projects while also ensuring compliance with these new NEPA procedures.  As a result of the CEQ rule, HUD is required to begin updating its own NEPA regulations, at 24 CFR parts 50 and 58. HUD has begun the rulemaking process to update parts 50 and 58 and will provide more information on this in the future.

Q:  What is the best way to meet new compliance requirements for page limits on EAs and EISs?

A:  CEQ’s final rule limits EAs to 75 pages and EISs to 150 pages (or 300 pages for EIS projects with ‘extraordinary complexity’).  However, the CEQ final rule places no limits on the number of appendices and attachments that may be added to these environmental documents.  This means that the body of the EAs and EISs must meet the outlined page limitations, but preparers may shift support evidence and technical analysis to the appendices and attachment sections as needed to ensure complete and adequate environmental review documents. 

Q:  How should I track the ‘start date’ to meet the new time limits requirements for preparing EAs and EISs under CEQ’s final rule?

A:  To meet schedule deadlines for the completion of EAs and EISs under the new CEQ final rule requirements, preparers must establish an ER ‘start date’ and subsequent schedule with milestones including a final completion deadline.  The ‘start date’ against which timelines must be measured is determined from the earlier of the following actions:

1. The date on which the agency determines that NEPA requires an environmental assessment or environmental impact statement for a proposed action, or
2. The date on which the agency issues a notice of intent for the proposed action.

Tracking timing for EAs and EISs can be facilitated by utilizing HEROs for conducting these environmental reviews.  By the end of the calendar year, HEROs will be enhanced to include a ‘date stamp’ in the outputs. Until then, for environmental assessments Environmental Review preparers must keep track of the date on which they determine that an environmental assessment is required for the proposed HUD project. Otherwise, management of start dates, schedules, and final deadlines of hard copy environmental reviews prepared outside of HEROs will be the responsibility of the environmental review preparer.”

Q:  I am a Responsible Entity conducting a HUD environmental review. What do I do if I wish to extend the one or two-year deadline for an EA or EIS?

A:  To extend the deadline for an EA or EIS, you must note the extension in writing, establish a new deadline, and include it as documentation in the environmental review record. The documentation must include written consultation and concurrence with any grantee or project sponsor for the project. This could be a copy of a simple email exchange with a grantee or project sponsor noting their acceptance of an extension and the new deadline. You may extend a deadline for only as much additional time as necessary to complete the EA or EIS.

Q:  I am a Responsible Entity conducting a HUD environmental review. What do I do if I wish to adopt a Categorical Exclusion determination made by another agency for a specific project or for HUD to adopt another agency’s Categorical Exclusion?

A:  HUD’s Office of Environment and Energy will provide guidance on the adoption of other agency Categorical Exclusion determinations for specific projects and Categorical Exclusions for classes of projects in the future. In the meantime, please contact your HUD environmental officer for questions regarding these scenarios.

• CEQ Bipartisan Permitting Reform Implementation Final Rule:  https://www.federalregister.gov/documents/2024/05/01/2024-08792/national-environmental-policy-act-implementing-regulations-revisions-phase-2
• Bipartisan Permitting Reform Implementation Final Rule Resources From CEQ:  https://ceq.doe.gov/laws-regulations/regulations.html
• Information about HEROs can be accessed here:  https://www.hudexchange.info/programs/environmental-review/heros/
• Find your HUD Environmental Officer:  https://www.hud.gov/program_offices/comm_planning/environment_energy/staff
• NEPA Guidance on Consideration of Greenhouse Gases:  https://www.regulations.gov/document/CEQ-2022-0005-0023

Content current as of July 10, 2024