The Nuclear Regulatory Commission (NRC) recently issued a final rule, effective April 29, 2026, amending its regulations governing categorical exclusions for certain actions. As defined by the National Environmental Policy Act (NEPA), a categorical exclusion is a category of actions that a federal agency has determined normally does not significantly affect the quality of the human environment. The NRC’s categorical exclusions are implemented as part of its NEPA regulations (see 10 CFR §§ 51.14; 51.22).
The NRC has revised its list of categorical exclusions to enhance the efficiency of its environmental reviews, ensuring that environmental review resources are directed to activities that have the potential to significantly affect the environment. Overall, the NRC reorganized the list to eliminate redundancy, add clarity, and improve consistency and efficiency. For example, the NRC eliminated distinctions in categorical exclusions among license amendments, exemptions, rulemaking, and other actions to ensure that categorical exclusions are based on the activities to be authorized rather than the differences among NRC approval types. Additional changes include the following:
- The NRC added several categorical exclusions, finding for each that the category of actions will not, individually or cumulatively, have a significant effect on the human environment:
- Issuance of amendments to 10 CFR § 72.214 for new, amended, revised, or renewed certificates of compliance for cask designs used for spent fuel storage (10 CFR § 51.22(a)(12))
- Actions under 10 CFR § 50.55a, including those associated with relief requests and authorization of proposed alternatives (10 CFR
§ 51.22(a)(16)) - Changes to approvals for fire protection, emergency planning, physical security, or quality assurance (10 CFR § 51.22(d)(4))
- Changes to extend implementation dates for activities previously found to have no significant environmental impact (10 CFR § 51.22(d)(6))
- Termination of licenses that were issued but for which no construction activities have begun, or where all decommissioning activities have been completed and approved, and license termination is a final administrative step (10 CFR § 51.22(a)(1)(xiii))
- Actions on or changes to requirements for decommissioning funding, as these are actions that are administrative, procedural, or solely financial in nature (10 CFR § 51.22(a)(1)(xii))
- The NRC expanded several categorical exclusions, again finding that the expanded categories of actions will not cause any significant individual or cumulative environmental effects, as follows:
- New § 51.22(a)(8) expands the categorical exclusion for issuance, amendment, or renewal of operators’ licenses under 10 CFR Part 55 to include all forms of related NRC actions, including exemptions and orders.
- New § 51.22(a)(10) expands categorical exclusions for issuance, amendment, or renewal of byproduct, source, and special nuclear materials licenses authorizing the types of activities listed in the former § 51.22(c)(14) to include exemptions and orders.
- New § 51.22(b) and (d) identify categorical exclusions for several actions “provided that any ground disturbance is limited to previously disturbed areas.” The NRC revised the definition of “previously disturbed areas” to make clear that there are no “important habitats, important species, or historic and cultural resources” in the areas where ground disturbances (if any) will occur for these actions. Section 51.22(b) is otherwise unchanged from the former § 51.22(c)(6); § 51.22(d)(1)-(3) and (5) expand several existing categorical exclusions to include rulemaking, orders, and license amendments, provided certain criteria are met.
- New § 51.22(d)(7) expands the categorical exclusion for certain amendments to licenses for fuel cycle plants and radioactive waste disposal sites and amendments to materials licenses identified in § 51.60(b)(1) to include exemptions, orders, and rulemaking. This provision is also subject to the revised criterion stating that the actions qualify for categorical exclusion if such actions will not result in disturbances to previously undisturbed ground.
- New § 51.22(d)(8) expands the existing categorical exclusion for the issuance of an amendment to a reactor license or permit under 10 CFR Parts 50 or 52 that changes a requirement, or issuance of an exemption from a requirement, with respect to installation or use of a facility component. The revised rule also expands this categorical exclusion to include installation or use of a facility component outside the restricted area under new circumstances. This provision is also subject to the criterion that the actions will not result in disturbances to previously undisturbed areas.
- The NRC removed two categorical exclusions that it found to be obsolete:
- The NRC removed former § 51.22(c)(17), a categorical exclusion associated with issuance of an amendment to a license removing any limiting condition of operation or monitoring requirement based on or applicable to any matter subject to the provisions of the Clean Water Act. This activity is concluded and the NRC no longer includes such conditions in NRC licenses.
- The NRC removed former § 51.22(c)(18), a categorical exclusion associated with issuance of amendments or orders authorizing certain licensees to resume operation on the basis of an emergency planning determination. The NRC has fully implemented the relevant emergency planning rule.
- The NRC removed the “no significant hazards consideration” criterion that was previously at 10 CFR § 51.22(c)(9). This criterion is a procedural standard, unrelated to NEPA, that governs whether an opportunity for a hearing must be provided before a license amendment is approved under 10 CFR Part 50 for a production and utilization facility. Section 51.22(c)(9) was included in the NRC’s initial NEPA implementing regulations as a proxy that fit the NEPA categorical exclusion standard, on the ground that amendments in this category either have no environmental impact or an environmental impact that is insignificant (49 Fed. Reg. 9352, 9373 (Mar. 12, 1984)). See generally 44 Fed. Reg. 7744 (Mar. 6, 1986) (setting out the history of the rules colloquially known as the “Sholly” provisions).
- The NRC updated statutory references to reflect renumbering resulting from amendments to NEPA made by the Fiscal Responsibility Act of 2023, Pub. L. No. 118-5, 137 Stat. 10 (FRA).
The final rule has been some time in the making. The NRC published an advance notice of proposed rulemaking in May 2021, and the proposed rule in July 2024, and was therefore under way before President Donald Trump issued Executive Order 14300, which directs the NRC to undertake a wholesale review of its regulations. The agency made clear that this rulemaking is separate from the NRC’s comprehensive review—and additional revisions may be forthcoming—but the rule was finalized as a deregulatory action of stakeholder interest. Of particular relevance, the NRC is poised to deliver a proposed rule to revise and streamline the NRC’s NEPA implementing regulations by the end of next month. That proposal, which is expected to implement revisions called for by the FRA, could, among other things, expand further the agency’s use of categorical exclusions.
How We Can Help
The NRC’s wholesale review of regulations is unprecedented in its scope and speed, and we are focused on how the separate proposed changes will fit together as part of a cohesive whole. We continue to expect additional executive, regulatory, and legislative changes over the coming weeks and months to implement the US administration’s energy policy. We will provide additional analysis and guidance as these policies develop and are implemented.
Please visit our energy blogs Power & Pipes and Up & Atom and our subscriptions page for updates on the US administration’s energy policies, or contact Juliana Israel to be added to our energy and infrastructure distribution list.