CETESB publishes amendments to the General Environmental Licensing Law

In brief

The General Environmental Licensing Law (“LGLA”), which establishes general rules for the licensing of activities and projects that use environmental resources, entered into force on February 4, 2026. In the State of São Paulo, CETESB – the São Paulo State Environmental Company – published Resolution No. 017/2026 (the “Resolution”) with the aim of aligning state-level procedures with the LGLA. Among its main provisions, the Resolution: (i) establishes a five-year term for Operating Licenses for activities with high pollution potential and high complexity (W factor between 4.5 and 5.0^[1]); (ii) waives the requirement to submit a Land Use and Occupancy Certificate; and (iii) sets out the circumstances and deadlines for the authorities involved in the licensing process to issue their opinions.

In more detail

On April 2, 2026, CETESB published Resolution No. 017/2026, with the purpose of aligning state-level procedures with Articles 6, 7, 17, and 42 through 46 of the LGLA.

The Resolution establishes the following validity periods for licenses:

1. Preliminary License (LP): a minimum of 3 years and a maximum of 6 years.
2. Installation License (LI) and LP combined with the LI: a minimum of 3 years and a maximum of 6 years.
3. Operating License (LO) and LI combined with the LO: a minimum of 5 years and a maximum of 10 years.
4. Environmental License by Adherence and Commitment (LAC): a minimum of 5 years and a maximum of 10 years.
5. Operating Licenses for projects with a complexity factor W between 4.5 and 5.0 (e.g., general industries and oil refining): 5 years.

The validity periods apply to licenses issued prior to February 4, 2026 (the effective date of the LGLA). Licenses issued by CETESB after that date with validity periods inconsistent with the Resolution will have their terms corrected, either ex officio or at the request of the interested party.

The Resolution also provides that the Environmental License by Adherence and Commitment (LAC) will apply only to those types of projects and activities for which this licensing modality is provided for under federal law, following the issuance of specific regulations. Until such regulations are issued, these types of projects will be processed under the ordinary state environmental licensing procedures.

Regarding the participation of other authorities, the Resolution adopts the framework established at the federal level and clarifies that their opinions are not binding on CETESB’s decision. The authorities involved must issue a conclusive opinion within 30 days in ordinary licensing cases, extendable for an additional 15 days.

With respect to strategic procedures, the Resolution provides that the classification of road construction projects as strategic will depend on an express decision by the competent authority formally recognizing such status.