AMWA Submits Comments On EPA's Proposed NEPA Implementation Regulations

On July 24, AMWA submitted comments to EPA on its proposed amendments to procedures for implementing the requirements of the National Environmental Policy Act (NEPA). The proposal follows a November 2024 D.C. Circuit Court ruling that the Council on Environmental Quality (CEQ) lacked the authority to issue binding NEPA regulations and CEQ's subsequent rescission of its NEPA regulations in April 2025. As a result, individual federal departments and agencies have begun issuing their own agency-specific NEPA implementation regulations.

EPA conducts NEPA reviews for projects funded under the Water Infrastructure Finance and Innovation Act (WIFIA), Title II wastewater treatment construction grants under the Clean Water Act, EPA-issued NPDES permits for new sources, and certain other EPA-funded projects. However, many drinking water systems also have projects that undergo NEPA review by other federal agencies, including the Department of the Interior (DOI) and the U.S. Army Corps of Engineers (USACE).

For this reason, AMWA’s comments emphasized the importance of clarity and consistency in NEPA implementing regulations and identified several areas where agency approaches differ. Specifically, AMWA noted differences in how EPA, DOI, and USACE propose to resolve disputes over lead agency designation, the timing and scope of public comment periods, and EPA's proposed pre-consultation requirement for applicants seeking expedited reviews. AMWA also requested additional clarity on how stakeholders, including project applicants, can participate in decisions related to lead agency selection, project scoping, and alternatives development.

AMWA also expressed appreciation for EPA’s efforts to streamline NEPA reviews, particularly the clear timeframes, page limits, improved project tracking, and transparent review schedules. AMWA supported EPA's proposal to harmonize categorical exclusions by allowing the agency to adopt existing categorical exclusions established by other federal agencies. AMWA staff will continue to monitor developments and keep members informed of changes affecting NEPA implementation.