Supreme Court Limits NEPA Reviews for Oil Railway

The U.S. Supreme Court unanimously ruled that federal agencies are only required to assess the direct environmental impacts of projects under the National Environmental Policy Act (NEPA), not broader upstream or downstream effects such as increased oil drilling or refining. This ruling, authored by Justice Brett Kavanaugh, overturned a lower court decision that had blocked Utah’s proposed 88-mile Uinta Basin oil railway for insufficient environmental analysis. The Court emphasized that NEPA is designed to inform agency decision-making, not to serve as a substantive barrier to development, and that courts should defer to agencies on the scope of reviews. The decision is considered a win for business interests aiming to streamline infrastructure approvals, but a setback for environmentalists and some Colorado communities concerned about increased oil transport. The Uinta Basin Railway project still faces further regulatory scrutiny before construction can begin. The ruling sets a nationwide precedent for future NEPA reviews on similar projects.