New York City has been deliberately making efforts to escalate its sustainability measures. The government is on its mission to ensure that the city is on the perfect track to meet its emission reduction goals. Passed in 2019, Local Law 97 aims to set the strictest standards for the reduction of greenhouse gas emissions of large buildings throughout the entire city.
If you own a commercial property or a co-op building in New York City, you may be obliged to follow NYC Local Law 97. Where non-compliance can result in substantial penalties, compliance with the law can result in escalating the value of your building.
In this extensive article, we’ll help you demystify all you need to know about NYC Local Law 97 and how it can improve the value of NYC buildings in the future.
Understanding Local Law 97
NYC Local Law 97 is taken as a cornerstone of the NYC Climate Mobilization Act to set carbon emission standards for buildings whose areas are bigger than 25,000 square feet. Based on the sustainability goals, these buildings are expected to reduce their emissions by 40 % by 2030 and 80 % by 2050.
In LL97, NYC has set two starting phases of emissions limits for these buildings. The initial phase commences in 2024 and persists until 2029, while the second phase will initiate in 2030-2034. These restrictions are basically set on the basis of the sizes and classifications of the buildings. According to the regulation of Local Law 97, buildings are obliged to submit yearly emission reports commencing in May 2025. However, they can face penalties if they exceed the emissions limits.
Also Read: How NYC Is Leading The Decarbonization Race With NYC Local Law 97
Understanding the Benefits of Local Law 97 Compliance to Improve Building Value
Abidance of laws and regulations is not always meant to avoid penalties as, in most cases, the outcome is a positive impact that adds value to your life. Here’s how compliance with NYC Local Law 97 can help you improve building value in the coming decades.
Energy Efficiency
One of the chief aims of Local Law 97 is the reduction in the amount of energy consumed by a building. When an owner of a building is successful in improving the energy efficiency of the building, there is a reduction in energy cost, thus resulting in a positive impact on the building’s bottom line. This step can make buildings more appealing to tenants, thus increasing their value.
A Step Towards Sustainability
With the reduction in energy consumption, NYC Local Law 97 encourages sustainability. When building owners take steps to reduce the building’s carbon footprints, they set a standard and demonstrate their commitment to the environment, which can be attractive to environmentally conscious tenants. It will also attract potential buyers when the owner decides to sell the building.
Long Term Value
The world is growing more environmentally conscious and responsible towards nature. In compliance with Local Law 97, building owners can attract investors across the world who seek to invest in properties that are trying their best to reduce carbon emissions and aim to create a better earth to live on. The higher investment rates not only increase cash flow but also escalate the overall desirability of The implementation of LL97 compliance not only escalates your current NYC building value but also prepares the path for long-term financial health. Buildings that will be compliant with Local Law 97 will be successful in gaining a competitive edge in the market.
Also Read: Upgrading Your Lighting to Comply with NYC Local Laws 88 and 97
The Role of Local Law 97 Consultant
With the first phase of the compliance period for NYC Local Law 97 already knocking at the door, there is time to ensure your building is compliant. However, proper guidance on compliance is essential to abide by the LL97 and improve building value from the very beginning. This is where a Local Law 97 consultant comes to your aid. These professionals are capable of providing you with expert guidance on compliance plans, helping you with your NYC building value in the coming decades.
A professional Local Law 97 consultant can guide you in the following ways:
- They will analyze your building’s present energy usage and the amount of carbon emission to advise you on the best effective improvements possible, resulting in compliance in a way that optimizes the ROI.
- They are experts in identifying applicable incentives and helping secure financing that will aid you in lowering the upfront cost of compliance.
- To implement the upgrades of Local Law 97, you require the involvement of contractors and management of construction schedules, resulting in minimal disturbance to tenants. A consultant is an expert in managing projects by ensuring all the areas are on track and that they are within your budget.
Concluding Lines
In a sustainability-conscious world, buildings that exemplify energy efficiency and compliance with LL97 will stand out. Buildings incorporating modern upgrades will add value to the planet and provide the unparalleled comfort of a smart home in the city. However, the complexity of the process during upgrading needs expert consultants. The Cotocon Group can help you comply with NYC Local Law 97 for your building. Our group is efficient in providing you with expert guidance on the complexities of compliance and aids you in developing compliance plans for your exceptional context. Getting help from a professional Local Law 97 consultant can save you time and money, as Local Law 97 is contributing to saving the planet.
FAQs
1. How many buildings are going to be affected by the NYC Local Law 97?
Approximately 40,000 buildings and nearly 60 % of the New York City building area are under NYC Local Law 97.
2. What are “good faith efforts?”
To demonstrate “good faith efforts,” you must:
- You must submit a building emissions report for the previous calendar year
- You must upload your building’s benchmarking data for the previous calendar year
- You must submit an attestation form that proves lighting upgrades and electrical sub-meters have been installed in compliance with Local Law 88
- Any one of the following:
1. Submit a decarbonization plan with an energy audit, major equipment inventory, and list of alterations needed for compliance by May 1, 2025, that will bring the building into compliance with its 2024 emission limits by May 1, 2027, at the latest, and demonstrate work for 2030 compliance is underway by May 1, 2028, ·
2. Demonstrate an application and timeline for the work to comply with emission limits that the DOB has approved
3· Demonstrate the building is actively undergoing work for electrification readiness
4 · Demonstrate that your building was previously under the emissions limit for the previous reporting year
5· For owners of a critical facility, demonstrate that paying the penalty fine will impact its operations
6 · Submit an attestation form that your building has applied for or received an approved adjustment by the DOB
