New York's Expanding Environmental Regulatory Framework: A 2026 Outlook

New York is expanding and updating its environmental regulatory framework at a notable pace. In the first quarter of 2026, three foundational rulemakings have reached critical stages: A mandatory statewide greenhouse gas reporting program is now operative, comprehensive revisions to the state's remediation standards have taken effect, and proposed amendments integrating environmental justice and climate analysis into the State Environmental Quality Act (SEQRA) environmental review process are in final rulemaking. The New York State Department of Environmental Conservation (NYSDEC) 2026 Regulatory Agenda indicates that these developments are the beginning of a broader regulatory cycle, not its conclusion.

These three rulemakings are architecturally connected. Taken together, they reflect a deliberate regulatory design, with a cumulative effect on operations, project timelines and transactional risk.

Meanwhile, NYSDEC's 2026 Regulatory Agenda identifies additional rulemakings – including a potential statewide greenhouse gas (GHG) emissions reduction program, new perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) soil cleanup objectives and climate risk amendments to bulk storage regulations – that would extend this framework further.

These regulatory developments are advancing against a backdrop of political uncertainty regarding the pace of New York's Climate Leadership and Community Protection Act (Climate Act) implementation. Gov. Kathy Hochul's administration has publicly signaled concern over the cost implications of the 2019 Climate Act implementation targets, particularly around energy affordability, and discussions regarding potential modifications to the statutory framework are ongoing in the capital of Albany. No formal amendments have been proposed, but that uncertainty is itself a strategic consideration: Companies calibrating long-range compliance investments or transaction risk should account for the possibility that the regulatory baseline may shift.

Separately, the New York Legislature is advancing a corporate disclosure mandate that would run in parallel with NYSDEC's regulatory program. The Climate Corporate Data Accountability Act (CCDAA) would require U.S. business entities with more than $1 billion in total annual revenue that do business in New York to publicly disclose Scope 1 and Scope 2 GHG beginning in 2028 and Scope 3 emissions beginning in 2029. The bill requires independent third-party assurance of reported data, starting at limited assurance and transitioning to reasonable assurance by 2032. Penalties for willful noncompliance could reach $100,000 per day. A reciprocity provision would allow entities to satisfy New York's requirements by submitting disclosures prepared under California's Climate Corporate Data Accountability Act or other qualifying frameworks. Senate Bill 9072A passed the New York State Senate on February 10, 2026, on a 40-22 vote; the companion Assembly bill is currently in the Assembly Codes Committee. If enacted, the CCDAA would create an entity-level corporate disclosure obligation distinct from Climate Act Part 253's facility-level regulatory reporting program.

This Holland & Knight alert analyzes these regulatory developments and how they interact as a system, identifies the industry-specific exposures they may create, and provides practical guidance for the operational, transactional and permitting decisions that cannot wait for the uncertainty to resolve.

The Climate Act and New York's Regulatory Architecture

Enacted in 2019, the Climate Act established one of the most ambitious statutory emissions reduction frameworks in the U.S. The law requires statewide GHG reductions of 40 percent below 1990 levels by 2030 and 85 percent by 2050, with net-zero to follow. It mandates a zero-emission electricity sector by 2040 and directs every state agency to incorporate climate considerations into regulatory decision-making across programs that historically had nothing to do with climate policy.

Mandatory GHG Reporting Program (6 NYCRR Part 253)

NYSDEC adopted Part 253 in late 2025, establishing a statewide mandatory GHG reporting system designed to generate the emissions data infrastructure needed to implement the Climate Act's reduction targets.

The program is broader in scope than many companies may have recognized. Coverage extends to large industrial facilities, electricity generators, natural gas and petroleum fuel suppliers, waste transporters and other entities identified by regulation. Covered entities must quantify emissions using standardized methodologies, submit data through a state electronic reporting platform and, for larger emitters, obtain third-party verification of their reported figures.

Key Compliance Milestones

Part 253 by itself does not impose emission reduction requirements. The program, however, is intended to generate the data foundation for future Climate Act initiatives, which NYSDEC and the Climate Action Council have identified as potentially including sector-specific reduction mandates and carbon pricing mechanisms. In fact, NYSDEC's 2026 Regulatory Agenda identifies a proposed new Part 252 (the New York Emissions Reduction Program), which would create a statewide program for GHG emissions reductions reflecting the Climate Action Council's final Scoping Plan. As proposed, the publicly available data that companies report under Part 253 would become the baseline against which Part 252 and other future regulatory requirements are calibrated. Thus, companies should treat Part 253 compliance not as a one-time reporting exercise but the beginning of an ongoing regulatory relationship with heightened data and documentation obligations. Regulated entities should therefore carefully consider the accuracy and completeness of the data they are building into the public record. Companies subject to Part 253 should also evaluate whether they meet the coverage threshold for the CCDAA, as entities with more than $1 billion in annual revenue doing business in New York could face both a facility-level regulatory reporting obligation under Part 253 and an entity-level corporate disclosure mandate under the CCDAA.

For a detailed technical analysis of the Part 253 reporting categories, coverage thresholds, large emission source classifications and penalty provisions, see Holland & Knight's previous alert "New York Mandates Greenhouse Gas Emissions Disclosures Beginning 2026," March 6, 2026.

Revised Environmental Remediation Regulations (6 NYCRR Part 375)

Also in late 2025, NYSDEC finalized comprehensive revisions to Part 375, which governs what cleanup is required, at what standard and under what conditions a site can be redeveloped under the Brownfield Cleanup Program, State Superfund Program and Environmental Restoration Program.

Additionally, NYSDEC's 2026 Regulatory Agenda identifies additional Part 375 amendments already in the pipeline: the incorporation of soil cleanup objectives for PFOA and PFOS into the list of regulated contaminants and revision of soil cleanup objectives for lead to align with values published by U.S. Environmental Protection Agency (EPA) in January 2023.

Although the regulatory text is technical, the business implications are direct. For example, updated soil cleanup standards directly affect remediation cost estimates and site feasibility analyses. Tighter standards increase cleanup costs and may make certain redevelopment projects less economically viable and, in some cases, updated standards will require reassessment of remedial approaches at sites already engaged in cleanup.

Proposed SEQRA Climate and Environmental Justice Amendments (6 NYCRR Part 617)

NYSDEC's proposed amendments to the regulations implementing SEQRA represent the third element of New York's emerging climate regulatory architecture and, for project developers and their investors, potentially the most consequential.

SEQRA is the foundational statute governing environmental review for projects requiring state or local agency approvals in New York. The proposed amendments would require lead agencies to evaluate whether proposed actions may impose disproportionate pollution burdens on disadvantaged communities and analyze cumulative environmental impacts in the context of climate change. These requirements would apply to environmental assessment forms and environmental impact statements across a wide range of project types. For a detailed analysis of the proposed amendments on the SEQRA rulemaking, see Holland & Knight's previous alert "New York Proposes SEQRA Amendments to Implement Environmental Justice Siting Law Provisions," March 5, 2025.

The public comment period on the proposed amendments closed in May 2025. NYSDEC is currently reviewing comments received, and final regulations have yet to be issued.

The operational consequences of the proposed SEQRA amendments for project sponsors would be significant if adopted as proposed. These include expanded environmental review scope for projects involving significant air emissions, industrial operations or waste management activities near "disadvantaged communities," additional analysis requirements in environmental impact statements addressing cumulative burdens and climate considerations, extended permitting timelines as agencies and applicants address new substantive requirements, heightened litigation risk from environmental justice organizations and neighboring communities challenging project approvals, and broader stakeholder engagement obligations during the review process.

Challenges to SEQRA approvals already generate significant litigation in New York. Adding environmental justice and cumulative climate impact requirements to the review framework would provide new substantive grounds on which opponents can challenge the adequacy of an environmental impact statement, as well as new procedural requirements that, if not satisfied, could provide a basis for annulment of project approvals. The practical consequence is that projects in or near disadvantaged communities could face a higher risk of delay or judicial reversal after approval, which could affect permitting timelines, financing certainty and investor confidence.

What's Coming Next: NYSDEC's 2026 Regulatory Agenda

NYSDEC's 2026 Regulatory Agenda further demonstrates that the three rulemakings discussed above are part of a broader regulatory program through the introduction of several proposed rulemakings:

• Part 252 – New York Emissions Reduction Program. NYSDEC has identified a potential new Part 252 rulemaking that would create a statewide program for GHG emissions reductions, reflecting the Climate Action Council's final Scoping Plan. If proposed, this would represent the transition from measurement (Part 253) to mandatory reduction (a step that regulated industries have been monitoring since the Climate Act's enactment).
• Part 375 – PFOA/PFOS and Lead Soil Cleanup Objectives. As noted above, NYSDEC plans additional Part 375 amendments to incorporate soil cleanup objectives for PFOA and PFOS and revise lead soil cleanup objectives to align with EPA's January 2023 values.
• Parts 597/598 and 613 – Bulk Storage Climate Risk Amendments. In an effort to integrate the objectives of the Climate Act into traditional environmental regulatory programs, NYSDEC proposes to amend both the Chemical Bulk Storage (Parts 597/598) and Petroleum Bulk Storage (Part 613) regulations to address future physical climate risk. Updates will touch on sea-level rise, storm surges and flooding as they pertain to the design, installation, operation, maintenance and inspection of storage tanks at new and existing facilities.
• Parts 360/363 – Landfill GHG Emissions Reductions. NYSDEC has identified solid waste landfills as contributing 78 percent of total waste sector GHG emissions and plans to amend Parts 360 and 363 to align landfill design and operating requirements with the Climate Act.
• Parts 370-376 – Hazardous Waste Modernization. NYSDEC plans to implement federal hazardous waste rules adopted between 2013 and 2024, including electronic manifest requirements, generator rule updates and management of hazardous waste pharmaceuticals.

Taken together, the 2026 Regulatory Agenda indicates that New York's environmental regulatory framework is continuing to expand across multiple programs simultaneously. Regulated entities in New York should treat the agenda as a forward-looking compliance planning tool and assess their exposure to these forthcoming rulemakings accordingly.

Conclusion

In quick succession, New York has implemented or proposed to implement multiple climate-related regulations in different contexts that will impact numerous regulated industries in the state. When taken together, these regulatory changes will shape the legal environment in New York for years to come.

For questions regarding these regulatory developments or assistance evaluating their impact on your operations, transactions or projects, please contact the authors or any member of Holland & Knight's Environmental Team.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.