Supreme Court Limits Scope of Environmental Reviews in Federal Permitting

In a major victory for the housing and infrastructure sectors, the U.S. Supreme Court issued a unanimous decision yesterday in Seven County Infrastructure Coalition v. Eagle County, significantly curbing the scope of environmental reviews of infrastructure and other building projects under the National Environmental Policy Act (NEPA).

NAHB joined an amicus brief in support of this outcome, and applauds the Court for restoring clarity and predictability to the federal permitting process.

The case centered on whether the Surface Transportation Board (a federal agency), when approving a new rail line in Utah, was required to analyze every possible environmental impact, even those outside the agency’s control. The lower court said yes, but the Supreme Court disagreed.

The Court ruled that NEPA requires agencies to focus only on the environmental effects of the actual project under review, not speculative impacts from unrelated future actions. As Justice Kavanaugh wrote in his 8-0 opinion, NEPA should not become a “blunt and haphazard tool” used to delay or derail infrastructure development.

Kavanaugh was joined by Chief Justice John Roberts and Justices Clarence Thomas, Samuel Alito and Amy Coney Barrett. Justice Sonia Sotomayor wrote a separate, concurring opinion joined by Justices Elena Kagan and Ketanji Brown Jackson. Justice Neil Gorsuch recused himself from the case.

This decision is a huge win for the housing industry. Although most home builders do not deal with NEPA directly, many of the large infrastructure projects that make housing possible, such as roads, water treatment facilities and energy systems, are subject to NEPA review. Forcing agencies to evaluate every conceivable downstream impact would create unreasonable burdens, lengthy delays and even block projects.

The Supreme Court’s decision provides much needed clarity and puts reasonable limits on how far environmental reviews must go. This means fewer delays for builders and developers, more predictable permitting timelines, and stronger support for housing development in communities across the country.

NAHB proudly supported this case and will continue working to make sure environmental laws are applied fairly, clearly and efficiently. This win helps make sure the housing industry can continue building the homes and communities America needs.