June 9, 2020
President Donald Trump signed an Executive Order on June 4 directing federal government agencies to waive environmental regulations and to take other actions to expedite infrastructure projects. This Executive Order allows agencies to waive 50-year-old environmental laws to speed federal approvals of pipelines, highways, and other projects.
As stated in the Executive Order, agencies, including executive departments, should take all appropriate steps to use their lawful emergency authorities and other authorities to respond to the national emergency and to facilitate the Nation’s economic recovery. As set forth in this order, agencies should take all reasonable measures to speed infrastructure investments and to speed other actions in addition to such investments that will strengthen the economy and return Americans to work, while providing appropriate protection for public health and safety, natural resources, and the environment, as required by law.
The Executive Order explains that the Council on Environmental Quality has provided appropriate flexibility to agencies for complying with the National Environmental Policy Act (NEPA) in emergency situations. Such flexibility is expressly authorized in CEQ’s Code of Federal Regulations, that implement the procedural provisions of NEPA (NEPA regulations), which were first issued in 1978. These regulations provide that when emergency circumstances make it necessary to take actions with significant environmental impacts without observing the regulations, federal agencies may consult with CEQ to make alternative arrangements to take such actions. Using this authority, CEQ has appropriately approved alternative arrangements in a wide variety of pressing emergency situations. These emergencies have included not only natural disasters and threats to the national defense, but also threats to human and animal health, energy security, agriculture and farmers, and employment and economic prosperity.
The order includes surface transportation projects, infrastructure, energy, environmental and
natural resources projects on federal lands.
Construction Dive
reported in its article on the subject that
the president's executive order has garnered the support of major construction industry associations. Nick Goldstein, vice president of regulatory and legal issues for the American Road & Transportation Builders Association (ARTBA), praised the president's move.
"ARTBA is supportive and believes the executive order will use existing statutory authority to help spur infrastructure projects during a time of national emergency," Goldstein said. He added that it is likely the order will be challenged in court.
The Associated Builders and Contractors and the Associated General Contractors of America welcomed President Trump's order as well. "By emphasizing the need to improve our country’s crumbling infrastructure and creating additional flexibility," said Kristen Swearingen, ABC vice president of legislative and political affairs, "the construction industry will be better able to plan and execute even the most complex projects while safeguarding the health of our workforce, communities and the environment.”
Brian Turmail, vice president of public affairs and strategic initiatives for the AGC, said the executive order should help free projects stalled in the review process and will not only generate construction jobs but create demand for construction materials. "Of course, the ultimate answer is to enact permanent reforms to the federal review process so we can answer tough questions about projects and get to a go or no go decision in weeks or months, instead of years or decades," he said
.
Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at
Richard.Higgins@MCC-CPAs.com
. I can be reached at
Marty.McCarthy@MCC-CPAs.com
. As always, we are happy to help.
Stay safe,
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
