New York’s Climate Leadership and Community Protection Act (CLCPA) has been one of the state’s most consequential laws since its enactment in 2019. The law established ambitious greenhouse gas reduction targets, directed state agencies to integrate climate considerations into decision-making, and created a framework for transitioning New York toward a lower-emission economy.

Jacob Zoghlin

Now, as part of New York State’s 2026-2027 Budget, the Legislature has adopted significant amendments to the CLCPA. While the law’s overall objective of reducing greenhouse gas emissions remains intact, the amendments modify how emissions are measured, adjust regulatory deadlines, revise interim targets, and make changes that will affect state agencies, municipalities, developers, businesses, and residents for years to come.

For anyone involved in land use, development, permitting, infrastructure, energy, or municipal governance, these changes are worth understanding.

A brief refresher on the CLCPA

The CLCPA established statewide greenhouse gas reduction goals and directed New York State agencies to implement policies designed to achieve them. The law required the state to reduce greenhouse gas emissions significantly below 1990 levels and ultimately work toward a net-zero emissions economy.

The CLCPA also created the Climate Action Council and required preparation of the state’s Scoping Plan, a comprehensive framework intended to guide New York’s transition to a lower-emission economy across sectors such as transportation, buildings, electricity generation, industry, agriculture, and land use.

Importantly, the CLCPA has extended beyond environmental policy and has become a significant factor in state permitting, infrastructure planning, energy development, and government decision-making.

What changed?

The budget amendments make several notable changes.

A new 2040 emissions reduction target – One of the most visible changes is the addition of an interim statewide greenhouse gas reduction target for 2040. The amended law now includes a goal of reducing emissions by 60 percent below 1990 levels by that year. The addition of a 2040 benchmark creates another milestone between the law’s existing long-term goals and provides a new reference point for future regulatory planning and implementation.
Changes to how emissions are calculated – Perhaps the most significant legal and regulatory change involves greenhouse gas accounting. The amendments revise the methodology used to calculate emissions for purposes of the CLCPA. Among other changes, the state is moving from a 20-year global warming potential metric (often referred to as “GWP20”) to a 100-year global warming potential metric (“GWP100”). The amendments also exclude certain categories of emissions that were previously included in statewide calculations, including some emissions associated with fossil fuel production occurring outside New York and certain biogenic carbon dioxide emissions. To many members of the public, these accounting changes may sound highly technical. However, they are important because greenhouse gas inventories serve as the foundation for measuring compliance with climate targets. The way emissions are counted can affect how progress toward statewide goals is evaluated and how agencies assess the impacts of projects, permits, and regulatory programs. As a result, these accounting revisions may influence future environmental reviews, permitting analyses, regulatory requirements, and compliance obligations.
Extended regulatory deadlines – The original CLCPA directed the New York State Department of Environmental Conservation (DEC) to adopt regulations necessary to achieve the law’s emission reduction requirements by January 1, 2024. That deadline was not met, leading to litigation concerning the state’s compliance with the statute. The budget amendments now extend the timeline and require DEC to promulgate the necessary regulations by 2028. For regulated entities, municipalities, and project sponsors, this means the next several years will likely involve additional rulemaking, public comment periods, and revisions to existing regulations before the amended framework is fully implemented.
Increased investment requirements for disadvantaged communities – The amendments also increase the proportion of climate-related benefits intended to reach disadvantaged communities. The revised law raises the target so that disadvantaged communities are intended to receive 45 percent of benefits, with a minimum threshold of 40 percent. This change may influence how state funding programs, grants, infrastructure investments, and climate-related initiatives are designed and administered going forward.
Changes to the Scoping Plan trimeline – The budget also modifies the schedule associated with future updates to the CLCPA Scoping Plan. Because the Scoping Plan functions as the state’s roadmap for achieving climate goals, changes to its timing affect how future policy recommendations, sector-specific strategies, and implementation measures are developed.

Why these changes matter for development and permitting

For developers, property owners, utilities, and industrial operators, one of the most important aspects of the CLCPA has been its influence on state permitting decisions.

Section 7 of the CLCPA requires state agencies to consider whether their decisions are inconsistent with or would interfere with attainment of the state’s greenhouse gas emission limits. In practice, climate considerations have become part of the review process for a variety of projects requiring state approvals.

Because the amendments change how emissions are measured and modify the applicable targets and timelines, agencies will likely need to revisit guidance documents, regulations, and analytical tools that have been used in permit reviews. As a result, project sponsors may see changes in how greenhouse gas impacts are evaluated in future applications.

The amendments do not eliminate climate review requirements, but they may alter the framework within which those reviews occur.

Implications for municipalities

Municipal governments have increasingly found themselves on the front lines of climate policy implementation. Local governments review development applications, plan infrastructure investments, update comprehensive plans, and make land use decisions that often intersect with state climate objectives.

The amendments are likely to require municipalities to monitor evolving state guidance and regulations over the coming years. Communities pursuing energy projects, transportation improvements, resiliency initiatives, or large-scale development projects may need to evaluate how revised state climate policies affect planning and permitting.

Municipal officials should also anticipate future updates to state guidance documents and regulations that reference the CLCPA’s emission accounting methodologies and statewide targets.

What happens next?

The budget amendments do not represent the final chapter in New York’s climate regulatory framework. Rather, they begin a new phase of implementation.

DEC and other state agencies will need to revise regulations, update guidance documents, and adapt programs to reflect the amended law. Additional rulemakings, public participation opportunities, and agency guidance are expected as these changes are incorporated into the state’s regulatory structure.

For businesses, developers, municipalities, and residents, the key takeaway is that New York’s climate law remains a major driver of policy and regulation. However, the rules governing how climate goals are measured, implemented, and enforced are evolving. Understanding those changes will be increasingly important for anyone involved in development, permitting, infrastructure planning, energy projects, or local government decision-making in the years ahead.

Jacob H. Zoghlin is a Partner in Underberg & Kessler LLP’s Litigation department and chairs the firm’s Environmental Law and Municipal Law practice groups. His practice focuses on environmental, land use, energy, and municipal law. He regularly represents towns, developers, and community members in matters involving SEQRA, zoning, permitting, and land use litigation. You can reach Jacob at (585) 258-2834 or [email protected].