[Federal Register Volume 90, Number 126 (Thursday, July 3, 2025)]
[Rules and Regulations]
[Pages 29417-29419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-12313]
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DEPARTMENT OF COMMERCE
Economic Development Administration
13 CFR Part 302
[Docket No.: 250626-0114]
RIN 0610-AA87
Amendment to Environment Regulation
AGENCY: Economic Development Administration, U.S. Department of
Commerce.
ACTION: Final rule.
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SUMMARY: Through this final rule, the Economic Development
Administration (EDA), U.S. Department of Commerce, is amending its
environmental regulation. Amending this regulation is necessary to
remove references to the Council on Environmental Quality (CEQ)'s
National Environmental Policy Act (NEPA) implementing regulations,
which CEQ has rescinded, and to clarify EDA internal staffing of
Environmental Officers.
DATES: This rule is effective July 3, 2025.
FOR FURTHER INFORMATION CONTACT: Jeffrey Roberson, Chief Counsel,
Office
[[Page 29418]]
of the Chief Counsel, Economic Development Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Suite 72023,
Washington, DC 20230; telephone: (202) 482-1315; email:
[email protected].
SUPPLEMENTARY INFORMATION:
Background
EDA's enabling statute is the Public Works and Economic Development
Act of 1965 (PWEDA) and EDA's regulations are codified at 13 CFR
Chapter III. The CEQ issued an interim final rule, (90 FR 10610,
February 25, 2025; 90 FR 12690, March 19, 2025), effective April 11,
2025, to remove the existing implementing regulations for the National
Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq., as amended
(NEPA). This action was necessitated by and is consistent with
Executive Order (E.O.) 14154, Unleashing American Energy (90 FR 8353;
January 29, 2025), in which President Trump rescinded President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.
EDA's environmental regulation at 13 CFR 302.1 is intended to
inform prospective and current grant recipients of their environmental
responsibilities under all federal environmental laws, regulations, and
Executive Orders. The current regulation also contains a specific
reference to CEQ's NEPA implementing regulations and discusses some
requirements under NEPA generally. In light of CEQ's removal of its
NEPA implementing regulations and the fact that EDA has its own NEPA
policies at Directive 17-02.2, it is necessary to update EDA's
environmental regulation to remove references to CEQ's NEPA
implementing procedures.
In addition, EDA is updating language in the regulation to make it
consistent with EDA's internal staffing practices. The regulation
formerly discussed that an EDA Environmental Officer is associated with
an EDA regional office. However, due to staffing changes, EDA no longer
necessarily assigns an Environmental Officer on a regional basis, but
instead on a case-by-case basis. This regulation does not provide any
additional guidance and only clarifies an internal staffing practice.
This rule is part of the overall package of updates to EDA's
environmental practices to ensure consistency with CEQ's rescission of
its implementing regulations and with governmentwide updates to agency
NEPA procedures, which EDA is executing through a separate action to
Directive 17.02-2. EDA is revising Directive 17.02-2 in response to
E.O. 14154 as well as Congressional amendments to NEPA and recent court
cases.
Congress amended NEPA in significant part in the Fiscal
Responsibility Act of 2023 (FRA), Public Law 118-5, signed on June 3,
2023, adding 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. EDA
recognized the need to update its NEPA implementing procedures in light
of these significant legislative changes. Since EDA's procedures were
originally designed as a supplement to CEQ's NEPA regulations, the EDA
had been awaiting CEQ action before revising its procedures, 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 EDA's NEPA implementing procedures still unmodified more than two
years after this significant legislative overhaul, it is exigent that
EDA move quickly to conform its procedures to the statute as amended.
Additionally, the Supreme Court on May 29, 2025 issued its decision
in Seven County Infrastructure Coalition v. Eagle County, Colorado, 145
S.Ct. 1497 (2025), in which it described 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
and [ ] prepar[ing] ever longer EISs for future projects.'' Id. at
1513. EDA, thus, is issuing this final rule as part of its project of
revising its NEPA implementing procedures to align its actions with the
Supreme Court's decision and streamline its process of ensuring
reasonable NEPA decisions.
Classification
Administrative Procedure Act and Regulatory Flexibility Act
Pursuant to 5 U.S.C. 553(b)(A), notice and comment are not required
because this is a rule of agency organization, procedure, or practice
inasmuch as it updates an internal staffing structure. This rule also
does not substantively affect EDA's implementation of NEPA which EDA
administers through Directive 17-02.2, not the regulation at 13 CFR
302.1. As previously stated, the Directive is being updated in response
to E.O. 14154 as well as Congressional amendments to NEPA and recent
court cases. Rather, EDA is simply removing a cross-reference to a set
of CEQ NEPA implementing procedures that CEQ rescinded.
In addition, to the extent that prior notice and solicitation of
public comment would otherwise be required, EDA finds that there is
good cause to waive prior notice and an opportunity for public comment
on this action, as notice and comment are unnecessary. 5 U.S.C.
553(b)(B). 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). This rule amends an
environmental regulation to remove references to regulations that are
no longer in force and updates an internal staffing structure so that
is consistent with current practices. Therefore, public comment would
serve no purpose and is unnecessary, and there is accordingly good
cause to forgo notice-and-comment-procedures. There is also good cause
under 5 U.S.C. 553(d)(3) to waive the 30-day delay in effectiveness. As
this rule does not alter the rights or responsibilities of any party,
delaying implementation of this rule serves no purpose. Moreover, EDA
is removing references to regulations that are no longer in force,
against the backdrop of an executive-branch wide revision of NEPA
regulations, which includes EDA separately promulgating new NEPA
procedures in its Directive 17-02.2. Confusion would result if part
302's references to defunct regulations remained on the books; good
cause lies in promptly conforming it instead to the existing state of
law.
Because prior notice and an opportunity for public comment are not
required pursuant to 5 U.S.C. 553, or any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are
[[Page 29419]]
inapplicable. Therefore, a regulatory flexibility analysis has not been
prepared.
Executive Orders No. 12866, 13563, and 14192
This final rule was drafted in accordance with Executive Orders
12866, 13563, and 14192. OMB has determined that this rule is
significant for purposes of Executive Orders 12866 and 13563, and has
reviewed. This final rule is an Executive Order 14192 deregulatory
action.
Congressional Review Act
This final rule is not a ``major rule'' under the Congressional
Review Act (5 U.S.C. 801 et seq.).
Executive Order No. 13132
This final rule does not contain policies that have federalism
implications.
Paperwork Reduction Act
This final rule contains no information collection requirements
under the Paperwork Reduction Act of 1995.
List of Subjects in 13 CFR Part 302
Community development, Grant programs--business, Grant programs--
housing and community development, Technical assistance.
For the reasons discussed in the preamble, EDA amends 13 CFR part
302 as follows:
PART 302--GENERAL TERMS AND CONDITIONS FOR INVESTMENT ASSISTANCE
0
1. The authority citation for part 302 continues to read as follows:
Authority: 19 U.S.C. 2341 et seq.; 42 U.S.C. 3150; 42 U.S.C.
3152; 42 U.S.C. 3153; 42 U.S.C. 3192; 42 U.S.C. 3193; 42 U.S.C.
3194; 42 U.S.C. 3211; 42 U.S.C. 3212; 42 U.S.C. 3216; 42 U.S.C.
3218; 42 U.S.C. 3220; 42 U.S.C. 5141; 15 U.S.C. 3701; Department of
Commerce Delegation Order 10-4.
0
2. Revise Sec. 302.1 to read as follows:
Sec. 302.1 Environment.
EDA will undertake environmental reviews of projects in accordance
with the requirements of the National Environmental Policy Act of 1969,
as amended (Pub. L. 91-190; 42 U.S.C. 4321 et seq.) (``NEPA''), and all
applicable Federal environmental statutes, regulations, and Executive
Orders. Depending on the project's location, environmental information
concerning specific projects may be obtained from the individual
serving as the Environmental Officer for the proposed action.
Dated: June 27, 2025.
Benjamin Page,
Deputy Assistant Secretary and Chief Operating Officer.
[FR Doc. 2025-12313 Filed 7-1-25; 2:30 pm]
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