Rule2025-12318

Environmental Analysis of Army Actions (AR 200-2)

Primary source

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Published
July 3, 2025
Effective
July 3, 2025

Issuing agencies

Defense DepartmentArmy Department

Abstract

This interim final rule rescinds the Department of the Army regulations implementing the National Environmental Policy Act (NEPA), because the Council on Environmental Quality's (CEQ) NEPA regulations, which they were meant to supplement, have been rescinded, and because the DoD is promulgating Department-wide NEPA procedures that will guide the Army's NEPA process. In addition, this interim final rule requests comments on this action and related matters.

Full Text

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<title>Federal Register, Volume 90 Issue 126 (Thursday, July 3, 2025)</title>
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[Federal Register Volume 90, Number 126 (Thursday, July 3, 2025)]
[Rules and Regulations]
[Pages 29450-29453]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12318]


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DEPARTMENT OF DEFENSE

Department of the Army

32 CFR Part 651

[Docket ID: USA-2025-HQ-0003]
RIN 0702-AB02


Environmental Analysis of Army Actions (AR 200-2)

AGENCY: Department of the Army, Department of Defense (DoD).

ACTION: Interim final rule.

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SUMMARY: This interim final rule rescinds the Department of the Army 
regulations implementing the National Environmental Policy Act (NEPA), 
because the Council on Environmental Quality's (CEQ) NEPA regulations, 
which they were meant to supplement, have been rescinded, and because 
the DoD is promulgating Department-wide NEPA procedures that will guide 
the Army's NEPA process. In addition, this interim final rule requests 
comments on this action and related matters.

DATES: This interim final rule is effective July 3, 2025. Comments must 
be received on or before August 4, 2025.

ADDRESSES: You may submit comments, identified by docket number and/or 
Regulation Identifier Number (RIN) and title, by any of the following 
methods:
    <bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 
Follow the instructions for submitting comments.
    <bullet> Mail: Department of Defense, Office of the Assistant to 
the Secretary of Defense for Privacy, Civil Liberties, and 
Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox 
#24, Suite 05F16, Alexandria, VA 22350-1700.
    Instructions: All submissions received must include the agency name 
and docket number or RIN for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing on the 
internet at <a href="https://www.regulations.gov">https://www.regulations.gov</a> as they are received and 
without change, including any personal identifiers or contact 
information.

FOR FURTHER INFORMATION CONTACT: David Guldenzopf, Ph.D., Director for 
Environmental Quality, Office of the Assistant Secretary of the Army 
for Installations, Energy and Environment, (571) 256-7822, 
<a href="/cdn-cgi/l/email-protection#224643544b460c400c45574e46474c584d52440c414b546243504f5b0c4f4b4e"><span class="__cf_email__" data-cfemail="2044415649440e420e47554c44454e5a4f50460e4349566041524d590e4d494c">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: 
    Inspection of Public Comments: All comments received before the 
close of the comment period are available for viewing by the public. We 
post all comments received before the close of the comment period on 
the following website as soon as possible after the comments have been 
received: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Follow the search instructions 
on that website to view public comments. DoD will not post on <a href="https://www.regulations.gov">https://www.regulations.gov</a> public comments that make threats to individuals or 
institutions, or that suggest the commenter will take actions to harm 
an individual.
    Plain Language Summary: In accordance with 5 U.S.C. 553(b)(4), a 
plain language summary of this rule may be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.

I. Background

    Title 32 CFR part 651 provides guidance for implementing NEPA in 
the Army. It applies to the Department of the Army, including the 
Active Army, the Army Reserve, Joint Bases for which the Army is the 
lead component, the Army's acquisition process, functions of the Army 
National Guard involving Federal funding, and functions for which the 
Army is the DoD executive agent. This part does not apply to civil 
works functions of the U.S. Army Corps of Engineers or to combat or 
combat-related activities in a combat or hostile-fire zone. Title 32 
CFR part 651 was intended to be used as a ``supplement[ ] . . . in 
conjunction with'' the regulations of the Council on Environmental 
Quality (CEQ) at 40 CFR parts 1500 through 1508. 32 CFR 651.1(c).
    However, the CEQ's regulations have been repealed, effective April 
11. See Removal of National Environmental Policy Act Implementing 
Regulations (90 FR 10610; Feb. 25, 2025). This action was necessitated 
by and consistent with Executive Order (E.O.) 14154, Unleashing 
American Energy (90 FR 8353; January 20, 2025), in which President 
Trump rescinded President Carter's E.O. 11991, Relating to Protection 
and Enhancement of Environmental Quality (42 FR 26967; May 24, 1977), 
which was the basis CEQ had invoked for its authority to make rules to 
begin with. The Army's regulations, which were a ``supplement[ ] . . . 
to be used in conjunction with'' those CEQ regulations, thus stand in 
obvious need of fundamental revision. President Trump in E.O. 14154 
further directed agencies to revise their NEPA implementing procedures, 
consistent with the E.O., including its direction to CEQ to rescind its 
regulations.
    In addition, Congress recently amended NEPA in significant part, in 
the Fiscal Responsibility Act of 2023 (FRA), Public Law 118-5, signed 
on June 3, 2023, in which Congress added substantial detail and 
direction in Title I of NEPA, including in particular on procedural 
issues that CEQ and individual acting agencies had previously addressed 
in their own procedures. The Army recognized the need to update its 
regulations in light of these significant legislative changes. Since 
the Army's regulations were originally designed as a supplement to 
CEQ's NEPA regulations, the Army had

[[Page 29451]]

been awaiting CEQ action before revising its regulations, consistent 
with CEQ direction. See 40 CFR 1507.3(b) (2024); see also 86 FR 34154 
(June 29, 2021). However, with CEQ's regulations now rescinded, and 
with the Army's NEPA implementing procedures still unmodified more than 
two years after this significant legislative overhaul, it is exigent 
that the Army move quickly to conform its procedures to the statute as 
amended.
    Finally, the Supreme Court on May 29, 2025 issued a landmark 
decision, Seven County Infrastructure Coalition v. Eagle County, 
Colorado, 145 S. Ct. 1497 (2025), in which it decried the 
``transform[ation]'' of NEPA from its roots as ``a modest procedural 
requirement,'' into a significant ``substantive roadblock'' that 
``paralyze[s]'' ``agency decisionmaking.'' Id. at 1507, 1513 
(quotations omitted). The Supreme Court explained that part of that 
problem had been caused by decisions of lower courts, which it 
rejected, issuing a ``course correction'' mandating that courts give 
``substantial deference'' to reasonable agency conclusions underlying 
its NEPA process. Id. at 1513-14. But the Court also acknowledged, and 
through its course correction sought to address, the effect on 
``litigation-averse agencies'' which, in light of judicial 
``micromanage[ment],'' had been ``tak[ing] ever more time [] 
prepar[ing] ever longer EISs for future projects.'' Id. at 1513. The 
Army, thus, is issuing this IFR to align its actions with the Supreme 
Court's decision and streamline its process of ensuring reasonable NEPA 
decisions. This revision has thus been called for, authorized, and 
directed by all three branches of government at the highest possible 
levels.
    DoD has elected to respond to these instructions by promulgating 
Department-wide NEPA procedures, Department of Defense National 
Environmental Policy Act Implementing Procedures, which will guide the 
Army's NEPA process henceforth. The Supreme Court could not have been 
clearer in Seven County that NEPA is a procedural statute. See 145 S. 
Ct. at 1507 (``NEPA is a purely procedural statute.''); see also id. at 
1510 (``NEPA is purely procedural. . . . NEPA does not mandate 
particular results, but simply prescribes the necessary process' for an 
agency's environmental review of a project;'') (internal quotation 
omitted); id. at 1511 (NEPA is a purely procedural statute''); id. at 
1513 (NEPA is properly understood as ``a modest procedural 
requirement''); id. at 1514 (``NEPA's status as a purely procedural 
statute''); see also id. at 1507 (``Simply stated, NEPA is a procedural 
cross-check, not a substantive roadblock.''). Mindful of this, DoD has 
decided that the flexibility to respond to new developments in this 
fast-evolving area of law, afforded by using non-codified procedures, 
outweighs the public-transparency virtues of codifying its regulations 
going forward. Notably, DoD can--and will--ensure that accessibility to 
the public by posting these procedures online, which removes the upside 
of codification. By contrast, not codifying its procedures will enable 
it to rapidly update these procedures in response to future court 
decisions (such as Seven County), Presidential directives, or the needs 
of the services. The use of non-codified procedures is, moreover, 
consistent with the approach that several other Federal agencies have 
used for decades.
    DoD has, correspondingly, directed all military departments to 
repeal their respective NEPA implementing regulations by June 30, 2025, 
per a May 21, 2025, memorandum. Thus, the Army is rescinding its NEPA 
implementing regulations at 32 CFR part 651. The Army is furthermore 
taking this action because the CEQ NEPA regulations, which the Army 
regulations were intended to supplement, have been rescinded and the 
Army regulations are incomplete on their own. The authority under which 
the CEQ regulations were promulgated, Executive Order (E.O.) 11991 (42 
FR 26967, May 24, 1977), has been rescinded by E.O. 14154 (90 FR 8353, 
Jan. 29, 2025). Therefore, the Army is rescinding 32 CFR part 651 to 
conform to CEQ's rescission of its regulations. The Army intends to 
continue to rely on categorical exclusions previously published in 
appendix B of 32 CFR part 651 or adopted by public notice in the 
Federal Register, all of which have now been incorporated into the 
Appendix to Department of Defense National Environmental Policy Act 
Implementing Procedures.
    The Army acknowledges that third parties may claim to have reliance 
interests in the Army's existing NEPA procedures. But revised agency 
procedures will have no effect on ongoing NEPA reviews, where the Army, 
following CEQ guidance, has held it will continue to apply existing 
applications. Moreover, as the Supreme Court has just explained, NEPA 
``is a purely procedural statute'' that ``imposes no substantive 
environmental obligations or restrictions.'' Seven County, 145 S. Ct. 
at 1507. Any asserted reliance interests grounded in substantive 
environmental concerns, such interests are not in accord with the best 
meaning of the law and are entitled to ``no. . . weight.'' Dep't of 
Homeland Sec. v. Regents of the Univ. of California, 140 S. Ct. 1891, 
1914 (2020).
    Because reliance interests are inherently backward-looking, it is 
unclear how any party could assert reliance interests in prospective 
procedures. To the extent such interests exist, the Army concludes that 
they are ``outweigh[ed]'' by ``other interests and policy concerns.'' 
Id. Namely, the complex web of regulations preexisted the 2023 
amendments to NEPA and the new Procedures repeatedly ``led to more 
agency analysis of separate projects, more consideration of attenuated 
effects, more exploration of alternatives to proposed agency action, 
more speculation and consultation and estimation and litigation,'' 
which in turn has meant that ``[f]ewer projects make it to the finish 
line,'' or even ``to the starting line.'' Seven County, 145 S. Ct. at 
1513-14. This has increased the cost of projects dramatically, ``both 
for the agency preparing the EIS and for the builder of the project,'' 
resulting in systemic harms to America's infrastructure and economy. 
Id. at 1514. Correspondingly, the wholesale revision and simplification 
of this regime, effectuated by the DoD's new Procedures, is necessary 
to assure ensure efficient and predictable reviews, with significant 
upsides for the economy and for projects of all sorts. This set of 
policy considerations drastically outweighs any claimed reliance 
interests in the preexisting procedures.
    The Army has taken this action as part of DoD's broader approach to 
revising its implementation of NEPA, in which DoD and its components 
have revised their NEPA implementing procedures to conform to the 2023 
statutory amendments, to respond to President Trump's direction in E.O. 
14154 to, ``[c]onsistent with applicable law, prioritize efficiency and 
certainty over any other objectives, including those of activist 
groups, that do not align with the policy goals set forth in section 2 
of [that] order or that could otherwise add delays and ambiguity to the 
permitting process,'' and to address the pathologies of the NEPA 
process and NEPA litigation as identified by the Supreme Court. Where 
DoD and its components have retained an aspect of their preexisting 
NEPA implementing procedures, it is because that aspect is compatible 
with these guiding principles; where DoD and its components have 
revised or removed an aspect, it is because that aspect is not so 
compatible.

[[Page 29452]]

II. Publication as an Interim Final Rule

A. Notice-and-Comment Rulemaking Is Not Required

    The Army is repealing its prior procedures and practices for 
implementing NEPA, a ``purely procedural statute'' which ```simply 
prescribes the necessary process' for an agency's environmental review 
of a project--a review that is, even in its most rigorous form, ``only 
one input into an agency's decision and does not itself require any 
particular substantive outcome.'' Seven County, 145 S. Ct. at 1507, 
1511 (internal quotation omitted). ``NEPA imposes no substantive 
constraints on the agency's ultimate decision to build, fund, or 
approve a proposed project,'' and ``is relevant only to the question of 
whether an agency's final decision''--i.e., that decision to authorize, 
fund, or otherwise carry out a particular proposed project or 
activity--``was reasonably explained.'' Id. at 1511. As such, notice 
and comment procedures are not required because this revision falls 
within the Administrative Procedure Act (APA) exception for ``rules of 
agency organization, procedure, or practice.'' 5 U.S.C. 553(b)(A). The 
Army's existing regulations do not dictate what outcomes such 
consideration must produce, nor do they impose binding legal 
obligations on private citizens. Rather, they prescribe how the Army 
will conduct its NEPA reviews: detailing the structure of environmental 
impact statements, specifying submission requirements, and directing 
the timing of public comment periods. These are procedural provisions, 
not ones that impose substantive environmental obligations or 
restrictions. Thus, because procedural rules do not require notice and 
comment, they do not require notice and comment to be removed from the 
Code of Federal Regulations. See 5 U.S.C. 553(b)(A).\1\
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    \1\ Just so, DoD's new procedures will also be purely 
procedural, guiding the Department's own compliance with NEPA. 
Indeed, it is hard to see how they could be otherwise, since the 
Supreme Court has recently repeatedly emphasized that ``NEPA is a 
purely procedural statute.'' Seven County, 145 S. Ct., see id. at 
1510 (``NEPA is purely procedural. . . . NEPA `does not mandate 
particular results, but simply prescribes the necessary process' for 
an agency's environmental review of a project;''); id. at 1511 (NEPA 
is a purely procedural statute''); id. at 1513 (NEPA is properly 
understood as ``a modest procedural requirement''); id. at 1514 
(``NEPA's status as a purely procedural statute''); see also id. at 
1507 (``Simply stated, NEPA is a procedural cross-check, not a 
substantive roadblock.''). Procedures for implementing a purely 
procedural statute must be, by their nature, procedural rules. 
Surely cannot be legislative rules; as such, they do not need to be 
promulgated via notice-and-comment rulemaking. See 5 U.S.C. 
553(b)(A).
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    Moreover, even if (and to the extent that) the Army regulations 
were not procedural rules, they may be characterized as interpretative 
rules or general statements of policy under 5 U.S.C. 553(b)(A). An 
interpretative rule provides an interpretation of a statute, rather 
than making discretionary policy choices that establish enforceable 
rights or obligations for regulated parties under delegated 
congressional authority. Part II of Appendix F to Part 651, for 
instance, may be classified as such. General statements of policy 
provide notice of an agency's intentions as to how it will enforce 
statutory requirements, again without creating enforceable rights or 
obligations for regulated parties under delegated congressional 
authority. 32 CFR 651.5 (``Army policies''), for instance, may be 
classified as general statements of policy. Both of these types of 
agency action are expressly exempted from notice and comment by 
statute, 5 U.S.C. 553(b)(A), and do not require notice and comment for 
removal.
    Accordingly, although the Army is voluntarily providing notice and 
an opportunity to comment on this interim final rule, the agency has 
determined that notice-and-comment procedures are not required. The 
fact that the Army previously undertook notice-and-comment rulemaking 
in promulgating these regulations is immaterial: As the Supreme Court 
has held, where notice-and-comment procedures are not required, prior 
use of them in promulgating a rule does not bind the agency to use such 
procedures in repealing it. Perez v. Mortg. Bankers Ass'n, 575 U.S. 92, 
101 (2015).

B. The Army Has Good Cause for Proceeding With an Interim Final Rule

    Moreover, the Army also finds that, to the extent that prior notice 
and solicitation of public comment would otherwise be required or this 
action could not immediately take effect, the need to expeditiously 
replace its existing rules satisfies the ``good cause'' exceptions in 5 
U.S.C. 553(b)(B) and (d). The APA authorizes agencies to issue 
regulations without notice and public comment when an agency finds, for 
good cause, that notice and comment is ``impracticable, unnecessary, or 
contrary to the public interest,'' 5 U.S.C. 553(b)(B), and to make the 
rule effective immediately for good cause. 5 U.S.C. 553(d)(3). As 
discussed in Section I, above, the Army's prior rules were promulgated 
to supplement CEQ's NEPA regulations. Following the rescission of CEQ's 
regulations, the Army's current rules are left hanging in air, 
supplementing a NEPA regime that no longer exists. The Army, thus far 
and as a temporary, emergency measure, has been continuing to operate 
under its prior procedures as if the CEQ NEPA regime still existed. 
This is not, however, tenable in the long term. As soon as proper 
procedures are available--which they now are, in the form of DoD's 
Department-wide procedures--this makeshift regime needs to be rescinded 
immediately. Because of this need for speed and certainty, notice-and-
comment is, to the extent it was required at all, impracticable and 
contrary to the public interest.
    For the same reasons stated in the present section, above, the Army 
finds that ``good cause'' exists under 5 U.S.C. 553(d)(3) to waive the 
30-day delay of the effective date that would otherwise be required. 
This IFR will accordingly be effective immediately.

C. The Army Solicits Comment

    As explained above, notice and comment is not required prior to 
issuing this rule because the Army's NEPA procedures were procedural 
and because, even if comment were required under the APA, good cause 
exists to forego it. Nevertheless, the Army has elected voluntarily to 
solicit comment on this action. The Army is soliciting comment on this 
interim final rule, and may make further revisions to this action, if 
the Army's review of any comments submitted suggests that further 
revisions are warranted. Commenters have 30 days from the date of 
publication of this interim final rule to submit comments.

III. E.O. 12866, ``Regulatory Planning and Review,'' and E.O. 13563, 
``Improving Regulation and Regulatory Review''

    EOs 12866 and 13563 direct agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health, and safety 
effects, distribution of impacts, and equity). The Office of Management 
and Budget's (OMB's) Office of Information and Regulatory Affairs 
(OIRA) has determined that this rulemaking, while not ``economically 
significant,'' is ``significant'' under section 3(f)(4) of E.O. 12866.

[[Page 29453]]

IV. E.O. 14192, ``Unleashing Prosperity Through Deregulation''

    E.O. 14192 was issued on January 31, 2025, and requires that ``any 
new incremental costs associated with new regulations shall, to the 
extent permitted by law, be offset by the elimination of existing costs 
associated with at least 10 prior regulations.'' This rule is expected 
to be an E.O. 14192 deregulatory action. Rescinding this part will 
enable the Army to update its internal Army procedures, ensuring 
consistent and streamlined implementation of NEPA responsibilities 
across all Army operations. This action will allow the Army to finalize 
the establishment of previously-proposed and publicly-reviewed 
categorical exclusions (CXs) that will reduce government spending on 
environmental compliance and will shorten project timelines for those 
activities that do not need a detailed analysis. The Army currently 
prepares approximately 10,000 CXs annually. The Army expects the new 
and revised CXs to increase use of CXs and to shorten project-approval 
timelines. Application of each new and revised CX will reduce the need 
to complete environmental assessments. Each environmental assessment 
costs approximately $500,000 and takes six months to one year to 
complete. The new and revised CX list will greatly reduce government 
spending on environmental site assessments.

V. Congressional Review Act (5 U.S.C. 801 et seq.)

    OIRA has determined that this rulemaking does not meet the criteria 
set forth in 5 U.S.C. 804(2) under Subtitle E of the Small Business 
Regulatory Enforcement Fairness Act of 1996 (also known as the 
Congressional Review Act). This action, in any event, is not a ``rule'' 
at all under 5 U.S.C. 804(3)(C). Therefore, this rule is not major 
under the Congressional Review Act.

VI. Paperwork Reduction Act (44 U.S.C. 3501 et seq.)

    This interim final rule does not contain any information-collection 
provisions that require OMB approval under the Paperwork Reduction Act 
(44 U.S.C. 3501 et seq.).

VII. Public Law 96-354, Regulatory Flexibility Act (5 U.S.C. 601)

    The Senior Official Performing the Duties of Under Secretary of the 
Army certified that this interim final rule is not subject to the 
Regulatory Flexibility Act (5 U.S.C. 601) because it will not have a 
significant economic impact on a substantial number of small entities. 
Therefore, the Regulatory Flexibility Act, as amended, does not require 
the Army to prepare a regulatory flexibility analysis. See 5 U.S.C. 
603(a), 604(a).

VIII. Sec. 202, Public Law 104-4, Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1532) requires agencies to assess anticipated costs and benefits before 
issuing any rule that mandates spending in any one year of $100 million 
in 1995 dollars, updated annually for inflation. This rulemaking will 
not result in an expenditure by State, local, or Tribal Governments, in 
the aggregate, or by the private sector, in excess of the above 
threshold. Thus, no written assessment of unfunded mandates is 
required.

IX. E.O. 13132, ``Federalism''

    This interim final rule will not have substantial direct effects on 
the States, on the relationship between the Federal Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with E.O. 13132, 
the Senior Official Performing the Duties of Under Secretary of the 
Army has determined that this rulemaking does not have sufficient 
federalism implications to warrant preparation of a federalism 
assessment.

X. E.O. 13175, ``Consultation and Coordination With Indian Tribal 
Governments''

    E.O. 13175 establishes certain requirements that an agency must 
meet when it promulgates a rule that imposes substantial direct 
compliance costs on one or more Indian Tribes, preempts Tribal law, or 
affects the distribution of power and responsibilities between the 
Federal Government and Indian Tribes. This interim final rule will not 
have a substantial effect on Indian Tribal Governments.

List of Subjects in 32 CFR Part 651

    Environmental impact statements, Environmental protection, and 
Foreign relations.

PART 651--[REMOVED]

0
Accordingly, by the authority of 5 U.S.C. 301, 32 CFR part 651 is 
removed.

James W. Satterwhite Jr.,
Army Federal Register Liaison Officer.
[FR Doc. 2025-12318 Filed 7-1-25; 2:30 pm]
BILLING CODE 3711-CC-P


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