The Trump administration’s recent efforts to streamline federal permitting processes are reshaping how developers of large-scale energy, critical minerals, mining and other infrastructure projects navigate regulatory requirements.
Both the executive and legislative branches are driving a surge in permitting reform, seeking to overhaul the regulatory framework and redraw the boundaries of federal oversight. These key reforms include executive orders, the White House Council on Environmental Quality (CEQ) interim final rule, the Department of Interior (DOI) interim final rule on the National Environmental Policy Act (NEPA), the One Big Beautiful Bill Act (OBBBA), the Trump administration’s AI Plan and other agencies’ rules. These changes present opportunities for improved efficiency and innovation, while also introducing new uncertainties.
Understanding the New Executive Orders and Potential Impacts
The Trump administration has issued a series of executive orders aimed at streamlining infrastructure federal permitting processes. One of the most notable is the declaration of a national energy emergency, which directs the CEQ to withdraw NEPA regulations from the Federal Register. This move allows the DOI to utilize alternative procedures for projects linked to national emergencies.
Changes instituted through executive orders include:
- NEPA, Endangered Species Act and National Historic Preservation Act alternative procedures.
- Application-based eligibility for fast-tracked project review.
- A narrowed scope for environmental impact statements (EIS).
These changes enable federal agencies to bypass conventional regulatory timelines in urgent situations, potentially expediting project approvals while maintaining some level of environmental compliance.
Implications of the CEQ Interim Final Rule on NEPA
The CEQ’s interim final rule rescinds 40 CFR §§ 1500–1508, which had long defined the NEPA process. This marks a shift in CEQ’s role, moving it away from issuing codified regulations and toward providing nonbinding guidance. The primary goals of this change are to increase agency discretion, encourage greater flexibility and speed in environmental reviews, and reduce litigation exposure by decentralizing procedural authority.
While this initiative is framed as a transparency measure, the lack of codified standards could lead to inconsistency across different agencies. For developers, particularly those in the critical minerals and mining sectors, understanding these new dynamics will be crucial for navigating the permitting environment.
In tandem with the CEQ changes, the DOI and other government agencies have issued interim final rules that revamp internal NEPA protocols. The DOI’s rule establishes a DOI handbook designed to guide applicants through the NEPA process as it currently exists. Key changes include:
- Use of bureau-directed and applicant-prepared EISs and environmental assessments (EAs).
- Flexibility in NEPA compliance during emergency responses.
- Updated guidance with specific constraints on EIS development timelines and document size.
The DOI’s interim final rule partially rescinds 43 CFR Part 46, retaining only a select group of procedural tools. For developers, this means adapting to new constraints while leveraging the streamlined guidance for quicker project approvals.
Changes Made to NEPA by the One Big Beautiful Bill Act (OBBBA)
Section 60026 of the OBBBA introduces a one-year deadline for EIS completion if the developer opts in and pays a fee. However, the fee structure and recipients remain unspecified, leading to potential inconsistencies with the DOI’s two-year timeline. Key considerations to take into account:
- Ambiguity in fee structure and enforcement.
- Likely legal challenges from states and non-governmental organizations.
- Agencies may defer to existing NEPA rules pending further clarification.
Despite these uncertainties, the OBBBA reflects a commitment to expeditious reviews, offering a pathway for developers to accelerate projects.
Trump’s AI Plan: Enhancing NEPA for Data Centers
Pillar II of the Trump administration’s AI Plan addresses streamlining NEPA and permitting for data centers. The plan recommends establishing new categorical exclusions under NEPA to cover data center–related actions that typically do not have significant environmental impacts.
Additionally, the plan suggests expanding the list of projects covered under the Fixing America’s Surface Transportation Act (FAST-41) to include all eligible data center and data center energy projects. The FAST-41 program aims to streamline and increase transparency in the environmental review and permitting process for major U.S. infrastructure projects. Through the program, the Federal Permitting Improvement Steering Council was created to coordinate federal agencies, manage project timelines and maintain a public dashboard tracking progress on eligible projects.
Although the AI plan recommendations are not yet codified into law, they underscore the administration’s promise to simplify the federal permitting process, particularly for technology-driven infrastructure projects.
Navigating Emerging Uncertainties and Next Steps
Despite the clear momentum toward faster permitting, several challenges remain. Conflicting timelines between the OBBBA and agency-specific interim rules continue to create uncertainty. Additionally, the judicial posture on agency flexibility and the use of nonbinding guidance remains unclear, further complicating implementation. Looking ahead, potential future reconciliation bills may revive or amend provisions that were omitted from the original OBBBA, introducing new variables into the permitting landscape.
The public comment period for the new rules closed on Aug. 4, while the DOI’s interim rules have been in effect since July 3. The effectiveness of public input in shaping final rule language remains uncertain. For developers in the energy, critical minerals and mining sectors, staying informed and engaged is crucial. Stakeholders are advised to:
- Monitor final rule issuance and litigation outcomes.
- Participate in the public comment process.
- Align projects with applicable emergency designations, if possible.
Burns & McDonnell monitors developments and provides regulatory strategy guidance so that clients can maintain project momentum in this dynamic permitting environment. By understanding and adapting to regulatory changes, developers can navigate the evolving landscape, mitigate uncertainties and capitalize on the opportunities presented by the streamlined federal permitting process.
