In 2019, New York’s Local Law 97 was passed, which is a big part of a larger climate mobilization act. It was a future-predicted move to address decarbonization at the city level. If we are just talking about the Big Apple, buildings accumulate two-thirds of GHG emissions. 

The LL97 NYC builds on previous legislation targeting the energy utilization of buildings. It is considered necessary for the city to pitch in and battle climate change. In this blog today, we will take a look at what the building owners in NYC need to know about Local Law 97 and the buildings that are under threat in the city for LL97 compliance.

What is LL97, And Why Does It Matter?

The NYC Local Law 97 applies to buildings and skyscrapers all over New York City that are more than 25,000 square feet. Be it residential, institutional, or commercial, this means over 50,000 buildings across the city. Beginning in 2024, the law sets new GHG intensity limits for these buildings. There will be a massive surge in terms of restrictions in 2030. By 2030, the goal is to reduce carbon emissions by 40% all through the city. And for the baseline measured in 2006, by 2050, the aim is to reduce carbon emissions by 80%. 

If any of the buildings exceed the already-established limits, they will have to pay a significant fine. These circumstances encourage the building owners to invest in energy efficiency, decarbonization, and other green initiatives. These are basically the practical actions that the building owners can take to reduce carbon emissions and hefty penalties. Doing so will not only help the building owners avoid any penalties but also benefit them in the long run by optimizing building performance, improving the quality of local air, reducing utility costs, and increasing the value of the property.

Buildings That The LL97 Mostly Impacts

While almost all of the Big Apple is affected severely by this law, Local Law 97 NYC makes it particularly challenging for certain types of buildings:

• The infrastructure of older buildings certainly does not lend itself to cost-effective clean energy retrofits. This implies poor insulation, lack of available space, limited electrical infrastructure, asbestos, steam heating, and automated controls for new equipment. For those in historic districts or landmark buildings, further regulations can restrict the extent of envelope and structural changes, which complicates compliance efforts.
• The larger buildings have higher energy demands and commonly have more complex systems. It can be technically intricate to upgrade these systems to be more energy-efficient. Optimizing and understanding the energy and occupancy usage patterns in larger buildings often have a mix of commercial, residential, and sometimes even industrial spaces. It adds a layer of complexity. Large commercial building owners with many tenants can reap the advantages of energy-aligned leases, which help shift some energy-efficiency responsibility to those who actually control the occupant’s behavior and fit in within the spaces.
• Investing in substantial upgrades for multi-family buildings without impacting the rent prices is challenging. It is because they work on a tight budget. Additionally, implementing measures that are energy-saving often asks for tenant behavior changes, which can be difficult to monitor and achieve. 
• Because of their 24/7 operation, usage of specialized equipment, and stringent space-conditioning requirements, it is extra tough for the hospitals. Without disrupting the day-to-day operations, upgrading systems will be extra tough. For such reasons, other critical facilities with life-saving operations and hospitals are amongst the buildings that are permitted to apply for adjustments under the intensity limits.

The Requirements For The Building Owners To Comply With The LL97

Building owners need to acknowledge these key requirements to comply with the LL97:

• Starting from 2024, buildings that are over 25000 square feet need to meet certain emission limits depending on their types of occupancy. Over time, these emission limits will be more stringent. There will be new limits kicking in in 2030 and 2035.
• Buildings that do not meet the limits of emissions must implement retrofits to reduce emissions and increase energy efficiency. There are recommended retrofits in the list that the law provides. There, the building owners can select to meet the emission limits.
• Property owners must report their annual emissions data through the Department of Building’s online portal. A licensed professional should check the data.

It is vital for property owners to build a plan to meet the specific requirements of local law 97 New York. Building owners should ensure timely compliance with emission limits.

The Fines For Non-Compliance With LL97

If we are to have a conversation about non-compliance, there are three different fines for not being compliant with NYC local law 97.

• For building owners that exceed the emission limit, the maximum annual penalty is the difference between a building’s actual emissions and its annual emissions, multiplied by $268.
• There is a fine of $0.50 per building square feet each month for the building owners who fail to file a report.
• The property owners who report false information on their files have to pay a fine of $500,000.

Wrapping Up

While Local Law 97 New York seems pretty straightforward, it is understandable that it can be daunting for building owners to navigate through this and build a strategy that can help them comply with the law. A wise decision would be to seek assistance from the best Local Law 97 compliance consulting experts like The Cotocon Group.

FAQ

How much is the fine if I miss filing the annual report emission limit?

There is a fine of $0.50 per building square feet each month for the building owners who fail to file a report.

Which buildings does the LL97 law apply to?

The NYC Local Law 97 applies to buildings and skyscrapers all over New York City that are more than 25,000 square feet.

Where should I report my data on annual emissions?

Property owners must report their annual emissions data through the Department of Building’s online portal.