For companies evaluating locations for major investments, speed-to-market often depends on more than finding the right property. Transportation infrastructure, permitting requirements, environmental reviews and coordination among public agencies can all influence whether a site can support a project on the desired timeline.
A new federal rule that took effect on September 1, 2026, adds another consideration to that process.
The Federal Highway Administration (FHWA), Federal Railroad Administration (FRA) and Federal Transit Administration (FTA) have finalized updated regulations governing their implementation of the National Environmental Policy Act (NEPA). The rule updates the agencies’ environmental review procedures to reflect changes to NEPA made through the Fiscal Responsibility Act of 2023, as well as provisions related to more efficient environmental reviews and the One Federal Decision process established through the Infrastructure Investment and Jobs Act.
What Changed?
The updated regulations apply to environmental reviews involving highway, rail and public transportation actions under the three agencies.
According to the FTA, the final rule became effective immediately upon publication on September 1. The agency also makes clear that the updated requirements apply to projects already in progress, not only projects beginning after the effective date.
The final rule builds upon an interim rule issued in July 2025 and incorporates several changes in federal environmental-review policy, including statutory changes intended to improve the efficiency of the review process.
What Does This Mean for Site Selection?
For many private industrial and commercial projects, the rule will not directly govern the company’s site selection decision. Its significance can emerge when a project depends on federally connected transportation infrastructure or improvements subject to FHWA, FRA or FTA environmental review.
A site may appear competitive based on land, workforce, utilities and incentives, but required transportation improvements can introduce additional considerations into a project’s development schedule.
That makes early due diligence increasingly important.
Companies evaluating potential locations should understand not only the infrastructure that exists today, but also what improvements may be necessary, which agencies may be involved and how those improvements could affect the overall project timeline.
Planning for More Than the Site
Site selection has always required looking beyond the boundaries of a property.
Infrastructure capacity, transportation access, environmental considerations, permitting requirements and regulatory timelines can all affect whether a location ultimately meets a project’s operational and financial objectives.
Changes such as the September 1 NEPA rule reinforce the importance of identifying these issues early. A strong site-selection strategy considers potential regulatory and infrastructure challenges before they become obstacles to development.
At GMJ, we help clients evaluate the factors that can influence major location and investment decisions, from site and infrastructure considerations to incentives, environmental and regulatory strategy and coordination with governmental entities.