Supreme Court Narrows NEPA Environmental Reviews for Major Infrastructure

The U.S. Supreme Court unanimously ruled to narrow the scope of environmental reviews under the National Environmental Policy Act (NEPA) for federally backed projects, focusing reviews on direct environmental impacts for which agencies are responsible. This decision, authored by Justice Brett Kavanaugh, reversed a lower court's broader interpretation that required agencies to consider indirect and third-party effects, such as increased drilling or refining linked to a proposed 88-mile crude oil rail project in Utah. The ruling supports the Seven County Infrastructure Coalition's efforts to expedite the Uinta Basin Railway, a project intended to boost oil transport capacity, by limiting regulatory hurdles and emphasizing NEPA's role as a procedural check rather than a substantive barrier. While the decision was praised by energy and timber industry groups as enabling more efficient project approvals and forest management, environmental groups and some justices expressed concerns about the narrowed environmental assessments. Justice Sonia Sotomayor, joined by Justices Kagan and Jackson, concurred in the judgment but indicated a different view on the scope of NEPA's application. The ruling is expected to influence future infrastructure projects and environmental litigation, particularly under administrations favoring fossil fuel development.