Georgia Seeks FHWA Approval to Take Over Highway Environmental Reviews
Two proposed agreements posted to federal dockets would let Georgia's transportation department clear highway projects under NEPA and other environmental laws without waiting on Federal Highway Administration sign-off.
The Federal Highway Administration (FHWA) on October 2, 2026, posted a proposed agreement and the Georgia Department of Transportation's (GDOT) draft application that would hand the state responsibility for federal environmental reviews on many highway projects, according to documents in regulations.gov docket FHWA-2026-0959.
The proposed memorandum of understanding (MOU) would let GDOT assume the U.S. Secretary of Transportation's duties under the National Environmental Policy Act (NEPA) and other federal environmental laws for highway projects in Georgia, under a program authorized by 23 U.S.C. § 327, the agency said. A related, narrower proposed agreement posted the same day to docket FHWA-2026-0958 would separately let GDOT decide which smaller projects qualify for a categorical exclusion — a determination that a project has no significant environmental impact and needs no lengthy federal study — under 23 U.S.C. § 326.
Under the broader § 327 MOU, GDOT would take over NEPA compliance and related reviews for projects requiring an environmental impact statement, an environmental assessment, or a categorical exclusion that doesn't already qualify under the state's existing § 326 agreement, both on the state highway system and on federally funded local projects, the document states. The assignment also covers compliance with other federal laws including the Clean Air Act, Clean Water Act, Endangered Species Act, and the National Historic Preservation Act, but excludes project-level air-quality conformity determinations and government-to-government consultation with Indian tribes, which FHWA would retain.
The MOU carves out several project categories from state authority, including Federal Lands Highway projects, work crossing state or international boundaries, Recreational Trails projects, three specific projects tied to the "DeRenne" corridor in Savannah, and projects run by other direct federal-aid recipients such as competitive grant programs or Transportation Infrastructure Finance and Innovation Act loans, according to the MOU text.
GDOT's authority to participate rests on opinions from the Georgia Attorney General dated October 17, 2025, and June 10, 2026, which cited state code provisions O.C.G.A. § 32-2-2(a)(7) and § 32-8-6(b), the MOU states. GDOT published its draft application for public comment on July 8, 2026, and submitted the formal application to FHWA on September 2, 2026, according to the document.
The MOU text still contains unfilled placeholders — marked "XXXX" — for the Federal Register notice date, the application date and the final execution date, indicating FHWA has not yet published the formal notice required by 23 U.S.C. § 327(b)(5) or signed the agreement. If finalized, the MOU would run for five years, with GDOT solely liable for its environmental decisions and subject to FHWA audits in each of the first four years, the document says.
What it means
For carriers, brokers and shippers building or expecting highway capacity projects in Georgia — including truck parking, freight corridors and bridge work — state-run environmental clearance could mean faster project timelines once GDOT formally takes over reviews currently done by FHWA. The exclusions carved out of the deal, such as the DeRenne corridor projects and cross-border work, will keep going through the normal federal process. Nothing changes yet: FHWA has not finalized or signed either agreement.
What's next
FHWA must still publish a Federal Register notice opening a comment period on its preliminary decision to approve GDOT's application, as required by 23 U.S.C. § 327(b)(5); that notice had not been issued as of the October 2, 2026 docket posting. Watch docket FHWA-2026-0959 and FHWA-2026-0958 on regulations.gov for the Federal Register notice, the comment period dates, and the final signed MOU, which would set the effective date for GDOT's new authority.
Sources
Supporting & Related Material: Memorandum of Understanding Between the Federal Highway Administration and the Georgia Department of Transportation Concerning the Georgia Department of Transportation's Participation in the Surface Transportation Project Delivery Program — Regulations.gov (FHWA), 2026-10-02
Supporting & Related Material: Memorandum of Understanding between Federal Highway Administration, Georgia Division and the Georgia Department of Transportation - State Assumption of Responsibility for Categorical Exclusions — Regulations.gov (FHWA), 2026-10-02
Supporting & Related Material: Georgia Department of Transportation - Draft Application for Assumption of Federal Highway Administration Responsibilities — Regulations.gov (FHWA), 2026-10-02
Comments