Local Law 97 NYC | It may be quite difficult for building owners and managers to understand climate regulation, particularly when satisfying New York City’s strict greenhouse gas emissions restrictions.
Nonetheless, owners and managers can create a strategy for compliance that not only assures legal compliance but also encourages energy efficiency, lowers operating costs, and fosters a more sustainable future for New York City by having an excellent grasp of the conditions of Local Law 97.
Beginning in 2024, most major structures in NYC must comply with LL97’s progressively stricter greenhouse gas (GHG) emissions standards. The proposed regulations lay out procedures for mitigating penalties, provide motivation for electrification, and make the methods of enforcement more clear.
The proposed LL97 NYC regulations also outline the reporting obligations for buildings that install energy conservation measures (ECMs) and rent-regulated lodgings. Through October 24, DOB will be taking public comments on the proposed rules. That same morning, a public hearing will be held online.
Is LL97 Applicable On Your NYC Building?
The NYC structures listed below are covered by NYC Local Law 97:
- Constructions larger than 25,000 square feet
- Multiple buildings summing up over 50,000 gross sq. ft on the same tax bracket
- A condo association owns two or more structures that exceed 50,000 gross square feet and are overseen by the same board of managers.
This includes about 27,000 structures in NYC, most of them residential. Affordable housing and rent-regulated residential buildings may be able to postpone compliance until 2026 or, as an alternative, could choose to pursue a Prescriptive Pathway.
To obtain detailed information on the energy use and compliance status of your NY structure, we suggest utilizing the Building Energy Snapshot tool offered by NYC Accelerator.
Also Read: Local Law 97 and What it Means for NYC Building Owners
LL97 Compliance Timelines
This statute imposes emissions caps for two distinct compliance periods.
- 2024-29: First Compliance Period
2024 marks the start of the first compliance period, which concludes in 2029. By May 1, 2025, building owners must start turning in their emissions reports for 2024.
- 2030-34: Second Compliance Period
The years 2030–2034 will mark the second compliance phase. More stringent emissions regulations will be implemented at this point.
LL97 Non-Compliance Penalties
A structure’s actual emissions, less its annual emissions limit, expressed in metric tons, will be multiplied by $268 to establish the penalties for non-compliance with LL 97. Structures that do not comply may also receive violations from the DOB.
Note: In 2025, non-compliant NYC structures will be subject to annual fines.
Pathways to Future Local Law 97 Compliance
Standard Pathway
The Standard Pathway comes to mind when we think about Local Law 97 NYC. Under this pathway, each property is given a limit on its carbon emissions, and property owners must prove yearly that their emissions exceed this limit.
The fine for exceeding the limit is $268 per ton of CO2 equivalent. Fines will be imposed on just 25% of structures on the Standard Pathway between 2025 and 2029. However, by 2030 and beyond, that percentage will rise to 75% of buildings.
NY structures will have zero emissions by 2050 due to increasingly stringent emissions regulations that get harder to meet with time. The calendar year 2024 will serve as the initial baseline year, and reports must be submitted by May 2025 for the first year and each year following that.
Prescriptive Pathway
There are two alternatives available on this local law 97 New York compliance pathway:
Set Up Thirteen Prescriptive Measures
- By December 31, 2024, buildings that choose this option must implement the thirteen applicable mandated measures.
- The precautions cover things like illumination, boiler tuning, and insulation for pipes. Instead of requiring major capital improvements, this approach is intended to extend the life of currently installed equipment.
- For NYC structures, this is a one-time requirement that will eventually not require further action to comply with the legislation.
Overcome your 2030 Emissions Cap Earlier
- Under this option, buildings must lower their emissions by December 31, 2024, below the 2030 level.
- Additionally, buildings won’t need to take any action in the future to comply with the law; this is a one-time obligation.
2026 Pathway
The only difference between this pathway and the Standard Pathway is that buildings have two more years to comply. The baseline year for these properties will be 2026; the first reports are due in May 2027 and are then required annually after that.
2035 Pathway
This track is identical to the Standard track except for structures having an additional ten years until they must comply. The baseline year for these properties will be the calendar year 2035; reports are expected for the first time in May 2036 and each year after that.
Also Read: Upgrading Energy Efficiency Equipment to Comply with NYC Local Law 97
How To Comply With Local Law 97
Start Investing in Energy Efficient Upgrades
You’ll probably need to make some energy-efficient upgrades to your building to ensure Local Law 97 compliance. This might consist of:
- Using heat pumps to electrify your HVAC systems and provide hot water heating
- Putting in solar power to run your building
- Modernizing the lighting in your common areas
- Increasing the insulation in your walls and roof
- Putting in place an energy management system
Investing in sustainable, energy-efficient solutions will help you increase savings on energy bills over time, in addition to assisting you in complying with Local Law 97.
Make a Positive Environmental Impact
Enforcing NYC LL97 will, all things considered, have a relatively big influence on the carbon footprint of buildings. Lowering your emissions promotes a healthier citywide environment and assists NYC in its efforts to combat climate change.
Future-Proof Your Building
Upgrading your building with sustainable and energy-efficient features will make it more resilient to weather events linked to climate change, such as intense storms and heat waves. Additionally, in a city where energy prices rise annually, it will reduce and stabilize your energy bills.
How We Can Help
The Local Law 97 compliance consulting team at the Cotocon Group assists building owners with Local Law 97 compliance. To accomplish emissions reductions in compliance with LL97, The Cotocon Group collaborates with owners to design energy and greenhouse gas reduction plans, pinpoint workable energy-saving solutions, and produce a roadmap.
Our all-encompassing strategy effectively manages operating costs while balancing resident and tenant comfort, building performance optimization, and regulatory compliance. We promote long-term sustainability and better living conditions by offering customized tactics and suggestions. So, connect with us today.
