EPA Proposes Changes to Provide More Certainty for Clean Water Act Section 401 Water Quality Certification Review
On January 13, 2026, the U.S. Environmental Protection Agency (EPA) announced a proposed rule to revise the Clean Water Act (CWA) Section 401 water quality certification regulations (40 C.F.R. Part 121), which proposes several clarifications to enhance certainty for project applications regarding the timing and contents of applications to state certifying authorities.[1] Administrator Lee Zeldin said the proposal is intended to return Section 401 to “clear statutory boundaries” while ensuring protections are implemented “lawfully” and “efficiently.” The proposed rule would narrow the scope of Section 401 review to point source discharges, standardize what qualifies as a complete certification request and when the review clock begins, prohibit withdrawal-and-resubmittal tactics, and add transparency requirements for certification decisions and conditions.[2] The proposed rule aims to limit tactics that have become common in certain states as they attempt to gain additional time for reviewing project applications, beyond the one-year maximum provided by statute.
U.S. Army Corps of Engineers Finalizes 2026 Nationwide Permit Reissuance and Modifications
On January 8, 2026, the U.S. Army Corps of Engineers (Corps) published its final action reissuing and modifying Nationwide Permits (NWPs). This final action reissues 56 existing NWPs and issues one new NWP. The changes are modest, but include helpful clarifications for certain activities and businesses. They also include program-wide updates to certain general conditions and definitions, such as by adding “nature-based solutions,” and changes tied to recent litigation affecting certain NWPs. The new NWPs and associated conditions and definitions take effect March 15, 2026 and will expire March 15, 2031.
Council on Environmental Quality Issues Long Awaited Guidance for Environmental Review Across Agencies
On September 29, 2025, the Council on Environmental Quality (CEQ) issued long-awaited guidance to formalize agencies’ individual efforts to implement the National Environmental Policy Act (NEPA). After rescinding the CEQ regulations that shaped NEPA for 40+ years and bearing witness to various agencies’ independent efforts to issue their own NEPA rules, CEQ issued new guidance to more systematically guide the agencies’ efforts. As CEQ notes, “NEPA implementation reform now has been called for, authorized, and directed by all three branches of government at the highest possible level: Congress, the President, and the Supreme Court.” The guidance reflects direction from each.
White House AI Action Plan Signals Environmental Regulation Reform for Data Centers
On July 23, 2025, the White House released “Winning the Race: America’s AI Action Plan” (“AI Action Plan”), outlining over 90 planned federal policy actions the Trump administration plans to implement to speed up artificial intelligence development across the United States. This rapid growth in domestic AI will result in an unprecedented U.S. demand for energy and require siting of significant electric generation assets to operate supporting infrastructure. Electricity demand from data centers represents a major new source of electricity demand and redundancy that will likely require a modernized approach to permitting and regulation to support sufficient growth on the Trump administration’s desired trajectory. For additional information on the impact of AI growth and the challenges of associated data center permitting, see Sidley’s blog posts here and here.
U.S. Army Corps of Engineers Proposes to Reissue and Modify Nationwide Permits
On June 18, the U.S. Army Corps of Engineers (Corps) published a Notice of Proposed Rulemaking that would reissue 56 of its existing Nationwide Permits (NWPs), introduce one new NWP, and make targeted modifications to the scope of certain NWPs and their terms. Key updates include a new NWP for fish passage improvements and changes to reflect recent litigation outcomes — including rescinding Florida’s program authorization and the NWPs for finfish and (in part) shellfish mariculture activities — as well as clarifying the trigger for state water quality certification under Section 401. The Corps also proposes, among other changes, an express prohibition on combining acreage limits when using more than one NWP to purportedly authorize a greater impact, and requiring restoration of areas affected by construction mats.
Department of the Interior Accelerates Permitting for Oil and Gas, Adopts 28-Day Mandate
In response to the Trump administration’s push to increase U.S. energy output by declaring a national energy emergency, the Department of the Interior (the Interior) has released plans to aid the administration’s goals. These include the Interior’s Emergency Permitting Procedures intended to accelerate and streamline review and approval of certain energy projects, primarily oil and gas. Bypassing formal rulemaking, the Interior cites its authority during emergencies to implement “alternative processes” to comply with the National Environmental Policy Act (NEPA), the National Historic Preservation Act (NHPA), and the Endangered Species Act (ESA). The alternative processes are available to current and future applicants so long as they affirm in writing to the Interior that they qualify for and want to avail themselves of the expedited processes.
Fish and Wildlife Revives Incidental Take Saga Under the Migratory Bird Treaty Act
In latest saga surrounding the formidable Migratory Bird Treaty Act (MBTA or Act), the U.S. Fish and Wildlife Service on April 21, 2025, withdrew its 2021 advance notice of proposed rulemaking to potentially authorize the incidental taking or killing of migratory birds, consistent with its interpretation of the Act. The 2021 advance notice promised a new regulatory scheme possibly authorizing the incidental take of migratory birds — a practice that would have broken with pre-2017 MBTA interpretation but more practically implement the Act in response to various needs, such as infrastructure permitting and development.
President Trump’s Executive Order Seeks to Initiate Immediate Measures to Increase American Mineral Production
On March 20, 2025, President Donald J. Trump issued an executive order (the Order) directing the Department of Defense, the Department of Energy, and other agencies involved in the financing and permitting process for domestic mining production to develop plans and take specific steps to enhance domestic mineral production in the United States (the U.S.).
The Future of Environmental Review of Federal Permitting Remains Unsteady as White House Seeks to Rescind NEPA Regulations
On February 19, 2025, the Council on Environmental Quality (CEQ) submitted a proposed Interim Final Rule rescinding its regulations implementing the National Environmental Policy Act (NEPA). The Rule will become effective 45 days after its publication in the Federal Register, marking the end of nearly 50 years of CEQ regulations serving as the foundation for federal environmental reviews. This Interim Rule comes right at the deadline set by President Trump’s Executive Order (EO) 14154—Unleashing American Energy—which rescinded CEQ’s authority to issue NEPA regulations and revoked President Carter’s EO 11991, which had originally directed CEQ to promulgate implementing regulations.
EPA Publishes First-Of-Its-Kind Framework for Considering Cumulative Impacts Across Agency Actions
On November 21, 2024, the U.S. Environmental Protection Agency (EPA) published Notice of a newly developed draft framework intended to provide all EPA programs with a shared reference point for determining when and how to analyze or consider cumulative impacts—defined broadly to include the totality of exposures to combinations of environmental stressors and their effects on health and quality-of-life outcomes. Keeping pace with the Biden administration EPA’s environmental justice drive, key goals of the Interim Framework for Advancing Consideration of Cumulative Impacts include empowering EPA to (1) more fully and accurately characterize the realities communities face, (2) pinpoint the levers of decision making and identify opportunities for interventions that improve health and quality of life while advancing equity, and (3) increase meaningful engagement, improve transparency, and center actions on improving health and environmental conditions in communities.