As part of an infrastructure investment proposal unveiled by the Trump administration in February, many significant regulatory and environmental permitting reforms are expected in the coming year. One current proposal involves expanding authority under the National Environmental Policy Act (NEPA) to states, requiring states and localities to shoulder a larger share of infrastructure project costs in the future. Over the years, the Department of Transportation has explicitly delegated federal NEPA authority to only six states: Alaska, California, Florida, Ohio, Texas, and Utah.

The benefit of having states handle their own NEPA policies, the administration argues, is that projects can now move more quickly through the required review process, and be assessed by agencies that know the local needs more thoroughly than the federal agencies do. Currently, many developers believe that the federal application of NEPA can significantly delay a project, and add huge costs in the form of labor and materials delays. Proponents of the expanded authority see it as a way to speed up the “red-tape” process surrounding environmental approvals. The proposal is expected to add certainty to a process long known for its delay and shifting deadlines, which should give developers and industry interests more incentive to invest in infrastructure at the state and local level.

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