What is NYC Local Law 88: Lighting Upgrades & Sub-Metering?

The Cotocon Group is a leading energy management and advisory group that assists boards and property owners in lowering power expenses, consumption, and carbon emissions—all of which connect to several municipal regulations that affect New York City’s built environment.

A significant amount of the total electricity consumption in mixed-use buildings is attributed to the energy consumption by non-residential tenants. These include commercial and nonprofit organizations, medical centers, etc. These tenants are generally unaware of this behavior pattern.

Reducing the amount of power non-residential tenants use requires implementing contemporary lighting systems and submetering. The NYC local law 88 requires the majority of mixed-use residential buildings larger than 25,000 square feet to:

• Upgrade common area lighting to the current NYC energy code, 
• Set up sub-meters for every non-residential tenant space surpassing 5,000 square feet and 
• Give monthly power-use statements to sub-metered tenants.

Yes, it’s true that building owners have until January 1, 2025, to comply. However, they must start planning a path to compliance to minimize inconvenience to tenants and residents. 

Our specialists at The Cotocon Group, the dependable energy advisors, have addressed the most frequently asked concerns. We highlighted concerns regarding compliance to assist boards and building owners in understanding these new regulations.

Upgrade Lighting Systems to Ensure Local Law 88 Compliance

Property owners must first ascertain which of their properties are subject to the law to comply with LL88. NYC LL88 generally applies to any property that satisfies one of these criteria:

• Individual buildings with a minimum floor area of 50,000 sq. ft.
• Group of two or more condo-owned buildings collectively occupying a minimum of 100,000 sq. ft.
• Group of two or more buildings with over 100,000 sq. ft that fall under the same tax bracket. 

Notably, the law exempts properties falling within occupancy groups R-2 and R-3 from both submetering and lighting upgrades. However, to claim this exemption, the owner must provide documentation to the NYC Department of Buildings. 

Places of worship that fall under occupancy group A-3 won’t have to improve their lighting. However, they are subject to metering as well as reporting requirements. Little residential homes with one to three families living there are completely exempt from Local Law 88. So they have no worries about filing exemption reports.

Why Update Your Lighting System

While there is still plenty of time until the 2025 deadline, there are several advantages to updating lighting systems sooner.

• Given the constant evaluations and modifications, future iterations of the NYC Energy Conservation Code will have stricter standards. Given this, upgrading the system later can turn out to be expensive.

• Local Law 88 requires upgrades for tenant spaces and shared areas. It is more cost-effective and disruptive for property owners to arrange lighting upgrades when tenant areas are occupied. So, they should begin earlier.
• Upgrading the building’s lighting can be costly. So, LL88 permits you to divide it into multiple smaller projects, given that you complete the structure by January 1, 2025.

Notably, components of the lighting system that comply with the Code do not need to be upgraded. The same holds true for spaces with code-compliant lighting power densities. However, doors and floor-to-ceiling partitions must entirely separate these sections from the remainder of the structure.

It is Section C405 of the NYC Energy Conservation Code’s 2016 edition that mandates lighting controls in a number of commercial applications. 

Moreover, this section outlines a list of the highest permitted lighting power densities. However, these densities vary based on the occupancy type. The NYCECC mandates the use of high-efficiency lights and fixtures in a minimum of 75% of lighting systems in residential areas.

Upgrading To LL88 Lighting Requirements: Learn How

The NYC Energy Conservation Code, not Local Law 88, contains the lighting regulations. There are two levels to energy code lighting standards, and the requirements differ depending on the kind of application. 

The first is the amount of lighting power (measured in watts of lights per square foot) used in a specific location. The second category consists of lighting controls, which include timers, sensors, and switches. 

The following advice can help you modernize your building to have a light-efficient design:

• Find out which of your current lighting system’s exemptions exist.
• Create an upgrade plan and monitor your progress with the placement of meters.
• Install LED lighting or use a substitute that satisfies the same high-efficiency requirements, such as small fluorescent lights.
• Install a lighting control system; most business buildings need these.
• Verify that the exit signs are only consuming a maximum of 5 watts.
• Incorporate work lighting enhancements (where applicable) into normal leases.
• Think about working with a lighting consultant.
• To make sure you’re adhering to the code requirements, collaborate with your power supplier.

Submetering Requirements Under Local Law 88

Local Law 88 is a law that entails the importance of upgrading lighting systems and installing electrical sub-meters. This is mainly required for large non-residential buildings. This law came into force in 2009, as a part of the Greener Greater Building Plan, which is a set of four laws that aim at improving water efficiency as well as energy in NYC largest buildings.

Local law 88 submetering became required for any commercial tenant units that met one of the following requirements with LL88:

• Spaces put on rent to the same person span one or more levels and exceed 10,000 square feet.
• Spaces of over 10,000 sq ft rented to more than a couple of people.

Apart from mandating the installation of meters, the code stipulates that renters must get a monthly statement. The statement must outline their usage of electricity and the associated costs. The statement needs to include the total consumption and the proportion of area that corresponds to the tenant. This is when several tenants share a single meter on the floor.

If the entire property uses a single Con Edison meter, the need for submetering becomes prevalent. However, it may also be applicable if separate building portions come with distinct meters. Submetering is also essential if you can divide any area into portions in accordance with the previously mentioned parameters. 

Meter Upgrades Require Planned Approach

Similar to lighting upgrades, meter upgrades are more disruptive while using tenant spaces. Hence, we highly advise a planned approach. Additionally, approval of a phased upgrade allows building owners to plan meter upgrades for when tenants move out. One can use both manual and automatic meters to achieve local law 88 NYC compliance, and each has benefits and drawbacks.

• Yes, it’s true that manual meters are less expensive. However, it is laborious and time-consuming to operate them as each must be read by hand. Tenants find it increasingly challenging to monitor their usage unless they are proficient in reading manual meters.
• Although automatic meters are more expensive initially, they are simpler to use because data can be accessed from a distance. Another option is to develop a platform that lets renters monitor their usage in real-time.

Metering does not immediately save energy, but when their power usage data is easily accessible, tenants are more inclined to be energy-conscious. Larger renters are also more motivated to save power when they have separate meters since they do not bear the consequences of other tenants’ excessive usage, and they keep all the savings from their energy-saving measures. Upgraded automatic meters with the ability to track data from several locations at once are called multi-channel meters. Although the installation cost per meter area is around 25% less, you need careful planning because it impacts many tenant areas at once.

Exceptions: 

• Let’s say a lighting system complies with the NYC Energy Conservation Code standards. Even more, let’s say it complies with applicable standards outlined in the code for new systems. In that case, there is no need for an upgrade. 
• Let’s say the lighting power densities in any NY space are enclosed/installed with permanent floor-to-ceiling partitions and/or closable doors. Now, if it complies with the standards of the NYC energy conservation code and/or three applicable standards outlined in the code for new systems, then no upgrade is necessary.  
• The lighting systems in residential properties falling under occupancy groups R-2 or R-3, as well as any areas that service them, such as boiler rooms, laundry rooms, and hallways, do not need to be upgraded. When a place of worship has a space that falls under occupancy category A-3, there is no need to upgrade the lighting system.

NYC Local Law 88: Which Properties Must Comply?

According to the law, a mixed-use structure is referred to as a “covered building” and comprises:

• Structures more than 25,000 square feet.
• A tax lot shared by two or more buildings totaling more than 100,000 sq ft.
• A minimum of two condominium complexes totaling more than 100,000 sq ft and under common board governance.

 LL 88 does not apply to buildings with R-2 or R-3 occupancy classifications. The New York City Department of Buildings (DOB) must still receive a lighting report from exempt buildings and buildings that are currently in compliance with the legislation, proving their exemption.

Commercial Tenants Account For a Significant Portion of the Building’s Emissions and Energy Use: How To Deal

In mixed-use residential complexes, usage is usually monitored by a single electricity meter. Given this, many properties charge regular rates to non-residential tenants—typically, commercial businesses—regardless of the tenant’s actual consumption.

If energy-use data rather than a fixed monthly charge were made accessible to these enterprises, they would probably cut back on their power use. They can use a BTU meter or a comparable tool to submeter commercial tenant utilities, such as gas, water, and other systems, in addition to electricity.

This will give precise statistics on power usage trends and divide expenses between residential and non-residential renters. The installation of these meters will assist owners in understanding and assigning carbon emissions in advance of LL 97 emissions caps in 2024, even though Local Law 88 doesn’t mandate it.

Owners must ensure that commercial tenants, whether they operate a supermarket or a community center, are making every effort to minimize their power usage. Additionally, installing a sub-meter will facilitate the tracking and computation of the commercial tenant’s share of the building’s overall energy consumption.

Local Law 88 Fines

Local Law 88 imposes fines on building owners who fail to meet specific requirements related to lighting upgrades and electrical sub-meters in tenant spaces. Let’s break it down:

Lighting Upgrade Report

Building owners need to file reports detailing any upgrades made to their lighting systems. If they don’t submit these reports, they’re fined $1,500 every year until they comply. Basically, if they don’t tell the city what changes they’ve made to their lights, they get hit with a hefty fine that keeps adding up until they do.

Electrical Sub-meter Installation

• Failure to File Report: Owners must also report on the installation of electrical sub-meters in tenant spaces. If they don’t submit this report, they face the same $1,500 annual penalty until they comply.
• Failure to Install Sub-meters: In addition to the report, owners must actually install these sub-meters. If they don’t, they’re fined $500 per uninstalled sub-meter each year until they install them all. Essentially, if they don’t put in these meters as required, they’re charged $500 for each one they miss, and the charges keep coming until they’re all in place.

LL88 Compliance Becomes Simpler and Faster With The Cotocon Group 

Don’t know how to comply with local law 88?  The Cotocon Group is here to help.

Investing in power-efficient lighting systems can save costs and reduce power usage and carbon emissions. To offer multifamily residential complexes around NYC comprehensive LED lighting services, The Cotocon Group collaborates with top engineers and consultants.

Boards and building owners must hire experts who can schedule the work at different times to minimize disturbances to tenants and residents, provide access to financial incentives to defray project expenses, and provide a high level of support to expedite installation and timely completion.

We at The Cotocon Group are aware of our clients’ hectic schedules. We handle it for you because you don’t have time to understand and stay current on all of the NYC Energy Compliance rules. 

We’re dedicated to developing individualized sustainable plans that meet the demands of our customers. Get in touch with us right now to collaborate with a reliable energy consultant in NY!