Governor Kathy Hochul recently announced several proposed reforms to the State Environmental Quality Review Act as part of her FY 2027 budget proposal. These reforms, if enacted, may have a significant impact on development projects throughout the state, with the goal of cost reductions and decreased time spent getting a project from the drawing board to seeing shovels in the ground.
The State Environmental Quality Review Act, or SEQR as it is commonly known, is New York’s lengthy review process that evaluates virtually all development proposals—from major commercial, industrial, or housing projects to infrastructure upgrades—to determine the impact they will have on the environment. First enacted in the 1970s as a means to aggressively address rampant pollution, SEQR is familiar to anyone who has attempted to build or develop in the state.
The law requires municipalities (as well as state agencies) to follow a comprehensive review process to determine whether a proposed project will have a significant adverse impact on the environment or not and, if so, to identify measures to implement to mitigate such impacts. This process is sometimes subject to abuse or mishandling which can become costly and can often take years to complete. Some individuals have criticized SEQR as being misused and overly burdensome. With the Governor’s proposal, nicknamed “Let Them Build”, the state appears to be addressing this criticism, offering a means to provide some clear parameters for review and expedite certain qualifying projects in the hopes of enabling a more efficient review process.
So, what is the Governor proposing and what impact will her proposals have, if enacted?
There are a variety of changes in “Let Them Build” three of which will have the most impact. The first is the imposition of deadlines. Under the current law, the determination of whether an Environmental Impact Statement is required and the issuance of a final Environmental Impact Statement are not subject to any deadlines. The Governor’s proposal would implement deadlines of one year and two years, respectively, significantly reducing the amount of time, and uncertainty, spent in the review process.
The second major reform is the exemption of select proposed housing developments provided they meet certain criteria, with the goal of addressing the state’s housing crisis. For instance, developments in Orange County, as in other localities outside of New York City, will be exempted if they are 100 units or less. These developments must also be connected to existing sewer and water infrastructure and located on sites that have been previously disturbed.
There are still extensive environmentally related regulations that housing developers must comply with even without the additional SEQR review.
Another proposed reform would allow certain infrastructure projects, including those related to clean water, parks, trails, and childcare facilities, to be exempt from additional review.
Of course, these proposed reforms are not universally supported. The Governor’s proposal will go through a lengthy public review and debate process of its own with the state legislature, advocacy groups, and the public, all voicing their opinion on the best way to achieve responsible development, so the ultimate reform to the law is yet to come.
From a municipality’s perspective, even modest adoption of the current proposed reforms could mean significantly less of an administrative burden on staff. Cities, towns, and villages that are seeking to increase their housing stock and build needed infrastructure may find the road to get there easier. For private builders and developers, changes in SEQR could result in cost savings and make building certain projects more attractive. In any event, it should be an interesting next several months as this debate occurs. We will stay tuned and provide periodic updates.
This is not intended to be legal advice; you should contact an attorney to discuss your specific situation.
Maria Donovan is an associate at J&G Law, concentrating in land use and municipal law. She can be reached by calling (845)764-9656 or by email.