New York Proposes SEQRA Amendments to Implement Environmental Justice Siting Law Provisions

As the Trump Administration rolls back federal environmental justice initiatives and focuses on expediting federal environmental review processes, the New York State Department of Environmental Conservation (NYSDEC) is proposing amendments to the State Environmental Quality Review Act (SEQRA) to incorporate provisions from the Environmental Justice Siting Law (Proposed Amendments). NYSDEC's Proposed Amendments to SEQRA are aimed at integrating the Environmental Justice Siting Law (EJ Siting Law) – also known as the Cumulative Impacts Law – into the SEQRA review process. Signed by Gov. Kathy Hochul in 2022, the EJ Siting Law requires the evaluation of potential disproportionate pollution burdens on disadvantaged communities (DACs). The Proposed Amendments would require lead review agencies to consider greenhouse gas (GHG) and pollution burden in DACs and streamline SEQRA reviews for certain small-scale, multifamily housing developments.

Background and Overview of New York's SEQRA Process

SEQRA is a critical framework established under the New York Environmental Conservation Law (ECL) to ensure that environmental impacts are considered in local, regional and state governmental planning, review and decision-making processes at the earliest possible stage. The intent of SEQRA is for all state governmental bodies to act as stewards of the environment by ensuring that critical environmental factors – such as air quality, water quality and noise levels, as well as impacts on traffic, natural habitats, wetlands, historic sites and endangered species – are given appropriate weight alongside social and economic considerations.

There are several critical components to the SEQRA review process:

1. Basic Procedural and Substantive Requirements. SEQRA provides a statewide regulatory framework that includes procedural requirements for compliance with New York law. This ensures that all actions undertaken, funded or approved by state agencies are evaluated for their potential environmental impacts. Lead agencies are expected to identify all relevant impacts of their final decision and consider them relative to the magnitude, duration and circumstances of the proposed action. Since 1979, New York state courts have required that lead agencies take a "hard look" at all potential impacts during their review.
2. Lead Agency Coordination. SEQRA facilitates the coordination of multiple agency reviews through a single lead agency, which is responsible for determining the significance of an action and preparing the Environmental Impact Statement (EIS), if required.
3. Type I and Type II Actions. SEQRA categorizes actions into Type I, which are more likely to require EISs due to their potential significant impacts, and Type II, which are actions not subject to further review under SEQRA because they are considered unlikely to have significant environmental impacts.
4. Environmental Assessment Forms (EAFs). These forms, prepared by project sponsors, aid the lead agency in determining whether an action may have a significant adverse impact on the environment and whether a full EIS is necessary.
5. Environmental Impact Statement. If the lead agency determines the proposed action will have a significant adverse impact on the environment, an EIS must be prepared. The EIS systematically considers significant adverse environmental impacts, alternatives and mitigation measures. Developing a draft EIS can be a lengthy endeavor and involves a public review process and weighing of all relevant social, economic and environmental factors early in the design and review process.

The Proposed Amendments, driven by the EJ Siting Law, emphasize the need to evaluate whether actions may cause or increase disproportionate pollution burdens on DACs. This includes integrating environmental justice considerations into the SEQRA process, ensuring that impacts to DACs are given a necessary "hard look" during agency review. The Proposed Amendments also introduce the Disadvantaged Community Assessment Tool (DACAT) to assist agencies in identifying DACs that may require further analysis. This tool is part of a broader effort to ensure environmental justice is a core component of state environmental assessments, which is in contrast to the recent rescission of environmental justice considerations from environmental reviews under the National Environmental Policy Act (NEPA) at the federal level under the Trump Administration.

The Proposed SEQRA Amendments

The Proposed Amendments include changes to the text of the SEQRA regulations and updates to the EAFs to incorporate additional questions focused on DACs. Key new provisions include:

1. New Definition of "Disadvantaged Communities." The Proposed Amendments seek to incorporate the current ECL definition of "Disadvantaged Communities," which means "communities that bear burdens of negative public health effects, environmental pollution, impacts of climate change, and possess certain socioeconomic criteria, or comprise high concentrations of low- and moderate-income households, as identified by the New York State Climate Justice Working Group."
2. New Definition of "Pollution." The Proposed Amendments also seek to incorporate the current ECL definition of "pollution" into the SEQRA regulations, which is defined as "the presence in the environment of conditions and/or contaminants in quantities of characteristics which are or may be injurious to human, plant or animal life or to property or which unreasonably interfere with the comfortable enjoyment of life and property throughout such areas of the state as shall be affected thereby." This definition may be critical when determining which communities may be considered DACs by virtue of being disproportionately impacted by "pollution."
3. New Exceptions to SEQRA Review (Type II Actions). Under the Proposed Amendments, the following actions would be added to the existing list of Type II actions, thus not triggering SEQRA review:

• Residential Construction Projects. Residential construction projects involving the construction of a building with four or more dwelling units, provided they meet specific conditions such as not exceeding 10,000 square feet in gross floor area, are constructed on an approved lot and are connected to existing public water and sewerage systems.
• Major Renewable Energy Facilities. Actions requiring a major renewable energy facility siting permit under Article VIII of the New York Public Service Law.

1. Significant Adverse Impact on the Environment. As currently written, the SEQRA regulations set forth a detailed list of criteria that are considered "indicators of significant adverse impacts on the environment." The Proposed Amendments would add a new criterion to this list: "an action that may cause or increase a disproportionate pollution burden on a disadvantaged community that is directly or significantly indirectly affected by such action."
2. Disproportionate Pollution Analysis in EISs. The Proposed Amendments would also require that EISs include an analysis of the impacts of any proposed action on DACs, specifically evaluating whether the action may cause or increase a disproportionate pollution burden on such communities.

Potential Industry Impacts

The Proposed Amendments, if enacted, will likely result in significant impacts to the review process for large commercial, industrial and renewable energy development projects in New York state, including:

• Real Estate Development. The Proposed Amendments could significantly impact real estate development, particularly in how projects are planned and executed in or near DACs. Developers and their project professionals (e.g., architects, engineers and counsel) would need to conduct thorough assessments to ensure that their projects do not exacerbate pollution burdens on these communities. This may involve additional compliance measures and potentially redesigning projects to incorporate more sustainable practices. The Proposed Amendments could also encourage developers to engage more with community stakeholders to address environmental justice concerns, potentially leading to more community-focused and sustainable development outcomes.
• Manufacturing. Manufacturing facilities, especially those located in or near DACs, may face increased scrutiny under the Proposed Amendments. The requirement to evaluate potential pollution burdens could lead to stricter emissions controls and the need for advanced or enhanced pollution mitigation technologies. Manufacturers involved in the SEQRA process might need to invest in cleaner technologies and processes to reduce their environmental impact. These new considerations could drive innovation in manufacturing practices, encouraging the adoption of greener technologies and processes that align with New York state's environmental justice goals.
• Wastewater Treatment Facilities. Wastewater treatment facilities could be significantly affected by the SEQRA amendments, as they often operate in or near DACs and have the potential to impact local water quality. The Proposed Amendments necessitate a comprehensive evaluation of the facilities' operations to ensure new facilities or facilities seeking permit renewals or amendments do not disproportionately affect DACs. This could involve implementing new technologies or processes to reduce emissions and improve water quality. Facilities may also need to engage with local communities to address concerns and ensure compliance with the new regulations.
• Renewable Energy Production. The renewable energy sector stands to benefit from the Proposed Amendments, as they align with broader environmental justice and sustainability goals. Projects such as solar and wind farms may be encouraged, particularly in DACs, as they offer cleaner energy alternatives and can contribute to reducing pollution burdens. The Proposed Amendments could streamline the permitting process for renewable energy projects, making it easier to develop these initiatives in areas that need them most. This could lead to increased investment in renewable energy infrastructure and a shift toward more sustainable energy production practices.
• Waste Facilities (Treatment, Storage and Disposal). Waste facilities, including those involved in treatment, storage and disposal, may face heightened regulatory requirements under the Proposed Amendments. These facilities often have significant environmental impacts, and the Proposed Amendments require a thorough assessment of their operations to ensure they do not disproportionately burden DACs. This could lead to the adoption of more advanced waste management technologies and practices to minimize environmental impacts. Facilities may also need to enhance their community engagement efforts to address concerns and ensure compliance with the new environmental justice-focused regulations.

Considerations and Next Steps

NYSDEC is currently accepting public comments on the Proposed SEQRA Amendments through May 7, 2025. This comment period provides an opportunity for interested parties to engage in the regulatory process and contribute to the development of these important environmental justice measures. NYSDEC is also holding a virtual public hearing on April 23, 2025, and in-person hearings in New York City on April 24, 2025, and Buffalo on April 30, 2025.

In light of the Trump Administration's rescission of federal environmental justice initiatives and efforts to expedite federal environmental review processes, as reported in a previous Holland & Knight alert, this effort by the NYSDEC represents a trend toward the state taking affirmative steps to integrate environmental justice considerations into its environmental review process. By requiring agencies to evaluate the potential disproportionate pollution burdens on DACs, these changes aim to promote more equitable environmental decision-making. If and when the Proposed Amendments are implemented, however, industries will need to adapt to the new requirements, potentially driving up costs and review time for certain projects.

Holland & Knight's Environmental Team has been closely evaluating the Proposed Amendments and has extensive experience with successfully navigating the environmental review process in New York state. Please contact the authors if you have any questions.

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