São Paulo: CETESB updates environmental licensing criteria

In summary

CETESB Board Decision No. 068/2026/C/I, published on September 11, 2026, updates the risk levels for economic activities in the State of São Paulo and links each risk level to the applicable environmental licensing category. The regulation is part of the framework established by Complementary Law No. 140/2011 and the Economic Freedom Law (Law No. 13,874/2019), which guide the classification of activities by risk level as a tool for regulatory simplification. The new decision retains the three risk levels already provided for in the previous regulation—exemption, simplified and automated licensing, and ordinary licensing or licensing with an impact assessment—but reorganizes some of the low-risk activities into two annexes (1A and 1B), with distinct eligibility conditions, and amends procedural provisions. In practice, the reclassification may directly impact the regulatory strategy of companies operating in the state.

Recommended actions

CETESB Board Decision No. 068/2026/C/I maintains the risk-level classification framework already adopted by Board Decision No. 038/2025/C/I, but reorganizes the annexes applicable to low-risk activities and modifies eligibility conditions. Depending on the CNAE code (national code for economic activities) and the specific characteristics of the project, the classification and applicable licensing category may vary, with direct implications for deadlines, costs, and operational requirements. In light of this, companies are advised to:

• Review the classification of activities: verify which annex now includes the relevant CNAEs and whether the previous classification remains in effect, assessing any impacts on operational planning and the timeline for projects currently underway or in the implementation phase.
• Assess the applicable eligibility criteria: confirm compliance with the general and specific conditions set forth in the annexes for activities exempt from licensing or subject to simplified and automated licensing, in order to ensure regulatory compliance and avoid the risk of operational suspension or fines.
• Identify potential impacts on existing permits and new investments: assess whether activities currently exempt or subject to simplified procedures may come to require new requirements, which could affect compliance costs, permit processing times, and the feasibility of new projects.
• Monitor updates to the lists: the annexes may be revised due to changes in federal or state legislation and in CETESB regulatory standards; it is recommended to maintain a routine regulatory monitoring process to anticipate any changes in the classification of strategic activities.

What the regulation establishes

CETESB Board Decision No. 068/2026/C/I updated the risk levels of economic activities, pursuant to State Decrees No. 67,979/2023 and No. 69,119/2024, and in accordance with the guidelines of Complementary Law No. 140/2011 and the Economic Freedom Law (Law No. 13,874/2019), taking into account the nature, environmental risks, size, location, pollution potential, potential to cause environmental degradation, and other characteristics of the project or activity. These criteria were already included in DD No. 038/2025/C/I, which is hereby revoked.

Therefore, the decision maintains the three-tier risk classification but updates and modifies the list of activities set forth in the annexes:

• Risk I (low): activities exempt from environmental licensing, provided they are listed in Annexes 1A or 1B and meet the respective eligibility criteria.
• Risk II (medium): activities subject to simplified and automated environmental permitting, when listed in Annex 2 and the criteria set forth in that annex are met.
• Risk III (high): activities listed in Annex 3, subject to standard environmental permitting or an impact assessment.

Activities whose CNAEs are not listed in Annexes 1A, 1B, 2, or 3 are exempt from environmental licensing.

Finally, it is important to note that the new DD applies exclusively to environmental licensing before CETESB and does not exempt the entrepreneur from obtaining authorizations and permits related to interference with natural resources and in Water Source Protection Areas (“Áreas de Proteção de Mananciais”) and Water Source Protection and Recovery Areas (“Áreas de Proteção e Recuperação de Mananciais”). Companies operating in these areas must pay close attention to compliance with these parallel obligations. Furthermore, the lists in the annexes may be updated due to changes in legislation or in CETESB’s regulatory standards, which reinforces the importance of continuous regulatory monitoring.