Federal Court Strikes Down Biden-Era Environmental Review Rules, Reinstates Trump’s NEPA Rollbacks
On February 3rd, a North Dakota District Court ruled against a coalition of environmental organizations, including the Environmental Protection Information Center (EPIC), and over 15 state intervenor defendants in a case concerning the Biden administration’s Council on Environmental Quality (CEQ) regulations. The court struck down the Biden administration’s 2024 rules governing environmental review processes under the National Environmental Policy Act (NEPA) and ruled that CEQ lacks the authority to issue binding regulations. As a result, the Trump administration’s 2020 NEPA rules remain in place.
The decision is a major setback for environmental protection advocates, as NEPA is the nation’s foundational environmental law, requiring federal agencies to assess environmental and public health impacts before approving projects. The Biden administration’s 2024 regulations—known as Phase II NEPA rules— aimed to restore key environmental safeguards weakened during Trump’s first term. The Biden regulations took progressive strides in placing greater emphasis on climate change, environmental justice, and Indigenous knowledge in federal decision-making. However, these rules faced legal challenges from 21 Republican attorneys general, led by Iowa and North Dakota, who sought to block what they called regulatory overreach.
While the District Court in North Dakota did not accept the Republican attorneys general targeted arguments against considering climate change or environmental justice in environmental reviews, it focused on a different legal issue: whether CEQ has the authority to issue binding rules. This question had long been considered settled, with agencies, Congress, and courts treating CEQ’s rules as binding for decades. However, a surprising decision from a D.C. appellate court in November 2024 - Marin Audubon Society v. Federal Aviation Administration - chaotically cast doubt on CEQ’s regulatory authority. The North Dakota ruling reinforced the interpretation in Marin Audubon v. FAA, declaring that Congress never explicitly granted CEQ the power to issue binding regulations and that the president cannot confer such authority through an executive order.
Because the North Dakota District Court case only adjudicates the issue of Biden’s Phase II CEQ regulations, the ruling effectively reinstates the first Trump administration’s 2020 NEPA rules for the District of North Dakota. In order for the decision to have a broader effect outside the District’s jurisdiction, this and other cases challenging the CEQ’s regulatory authority will need to be litigated at higher levels. The Trump 2020 NEPA rules have been widely criticized for weakening environmental oversight. In his first presidency, Trump focused on streamlining permitting for major projects, including limiting the scope of environmental reviews, and made it easier for fossil fuel and infrastructure developments to move forward with minimal scrutiny.
The decision in North Dakota comes amid this continued effort by Trump in his second presidency to dismantle environmental regulations. His recent executive order, Unleashing American Energy, directly undermines NEPA by revoking a 1977 executive order that had affirmed CEQ’s regulatory authority. Part of the ruling interestingly reads as pushing back on Trump’s unilateral approach, emphasizing a strict separation of powers:
“People fought to separate these powers in a new form of government. People died for this new government because they saw what happened when all the power was held in one hand. Power can be taken by force, given, or lost inch by inch. It is the job of Congress to enact the law. It is the job of the President to enforce the law.”
It’s possible that courts will continue to rule against Trump’s actions, but long-term resistance to attacks on environmental protections remains uncertain. With the Supreme Court firmly under conservative control, legal challenges from environmentalists may ultimately face a regrettable impasse. Additionally, it remains to be seen whether Trump will comply with federal court rulings, adding another layer of unpredictability to the future of environmental regulations.
Trump’s executive order, which was issued before the North Dakota District Court ruling, also directs CEQ to rescind existing NEPA regulations and issue new guidance that significantly accelerates permitting timelines. By redefining key terms such as “major action” and “significant” that trigger environmental reviews, the administration has several paths available to further limit NEPA’s reach and eliminate decades of environmental protections.
What Comes Next?
With the Biden administration’s NEPA reforms struck down, the future of environmental review remains uncertain. Federal (and state) agencies should take steps to preserve existing protections by strengthening their own regulations to prevent the fossil fuel industry from benefiting from streamlined project approvals. A key priority is ensuring that NEPA’s scope remains intact and that additional categorical exclusions—which allow certain projects to bypass environmental review—are not expanded to benefit polluting industries.
Another path forward is for Congress to step in and affirm NEPA’s original protections. Without legislative action, the Trump administration’s regulatory rollback will stand, leaving many critical environmental safeguards at risk. As legal battles over NEPA continue, EPIC will fight to preserve strong and balanced environmental oversight.