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SCOTUS Railroad Ruling Seen as a Positive for Broadband Buildout

Thursday’s U.S. Supreme Court decision limiting the scope of environmental reviews could ease permitting for infrastructure projects, including broadband buildout, said advocacy groups and policy analysts.

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Though the court’s ruling in Seven County Infrastructure Coalition v. Eagle County, Colorado concerned a railroad, the National Environmental Protection Act (NEPA) reviews it focuses on can affect broadband infrastructure construction efforts, said Jeffrey Westling, the American Action Forum's director-technology and innovation policy. “NEPA reviews generally depend on the size of the project, but can add thousands or even millions in costs to broadband builds.” FCC Chairman Brendan Carr applauded the ruling in a post Thursday on X (see 2505290075).

The high court ruled that the NEPA is “a purely procedural statute” that requires agencies only to prepare a proper report and that courts should defer to agency determinations of whether an environmental impact statement is sufficient. "This decision will have [a] positive impact on broadband builds,” Westling wrote us. “The court is essentially saying it will defer to the legal findings in an EIS [environmental impact statement], and not micromanage the process. This generally means more streamlined reviews and quicker builds.”

The ruling also means that despite the demise of Chevron deference, “reviewing courts will still defer to agency actions on EIS reports,” he added.

Eagle County, which had argued that the U.S. Surface Transportation Board didn’t sufficiently weigh the environmental effects of the construction of an 88-mile railroad in Utah, said in a statement Thursday that it was disappointed by the justices' decision and would try to pursue other legal avenues. “Healthy rivers, abundant open space, and pristine public lands are some of the defining characteristics of this community and an economic driver. It will always be our goal to be the best possible stewards of our natural resources.”

In a post on X Thursday, ACA Connects President Grant Spellmeyer said “lifting permitting burdens [and] keeping projects on time & on budget” is “essential!”

In amicus filings in the case, both the National Rural Electric Cooperative Association and the U.S. Chamber of Commerce said NEPA reviews were affecting broadband infrastructure construction. “Overinclusive NEPA processes inevitably delay projects,” said NRECA in a joint brief with the National Association of Manufacturers, American Petroleum Institute and other groups. “Whenever a federal action is required to approve or fund a major project -- for example, a new building, highway, airport, transportation system, broadband network, offshore wind project, natural gas pipeline, renewable or conventional energy venture, or grazing lease -- NEPA’s procedural requirements are triggered,” wrote the U.S. Chamber of Commerce in an amicus brief.

“Our broken permitting system has long been a national embarrassment,” said Marty Durbin, president of the U.S. Chamber’s Global Energy Institute, in a release after Thursday’s ruling. “The Court’s decision is a major step in the right direction and a victory for the public and American businesses.”