New York City is leading the way in terms of initiatives to lower carbon emissions and increase energy efficiency. We’ve put together this thorough guide to help property owners efficiently manage NYC’s energy efficiency rules. This will help them comply with local legislation and improve their sustainability efforts.

Understanding NYC Energy Efficiency Laws

Property owners must be aware of the various energy efficiency standards and regulations that New York has put in place. Local Law 97 is a topic of constant discussion, but it’s not the only one that counts. So, it’s important first to have a general awareness of these laws:

Local Law 84/133 

The NYC Local Law 84/133 requires large building owners to measure their annual water and energy use. So, owners must use the Portfolio Manager, a free web application created by the Environmental Protection Agency. Moreover, property owners can ensure their efforts have the desired results in a certain way. They can encourage the market to offer creative solutions for sustainability by measuring their annual use.

Local Law 87

Local Law 87 NYC mandates building owners to conduct energy audits and retro-commissioning or proactive performance monitoring for specific building equipment. During an energy audit, you must conduct a quarterly assessment and study of a building’s energy usage. HVAC system calibration and sequencing are the main goals of retro-commissioning. 

Local Law 88

The NYC Local Law 88 of 2009 and its updates, LL132 and LL134, are regulations guiding NYC’s commitment to energy efficiency. They mandate that building owners install sub-meters for specific commercial tenant spaces. Moreover, it requires them to modify their lighting systems for sustainability.

Any building larger than 25,000 square feet is subject to these LL 88 NYC restrictions. Also, they comprise scenarios where multiple structures on the same property or under condo ownership combined surpass 100,000 square feet. So, the building owner must conduct certain audits in accordance with Local Laws 87 and 88. 

It’s not quite as terrifying (or time-consuming) as it sounds if you have the correct energy source. Trust us to evaluate the energy consumption of your building’s lighting system. We will develop a well-structured plan that will optimize its performance for your company in no time.

Local Law 95

NYC’s local law 95 under the Climate Mobilization Act is a groundbreaking piece of legislation. It mainly intends to counteract the existential threat of climate. This law updates the parameters for calculating energy efficiency grades previously set by Local Law 33. 

LL33 requires buildings to display their energy efficiency grades to the public. So, this works the same way restaurants need to display their public health ratings. Your facility will be rated on an A to F scale based on its Energy Star score. An A represents compliance with 85 points or more, while a F indicates non-compliance.

Local Law 97 

Buildings exceeding 25,000 gross square feet must comply with stringent carbon emissions standards under Local Law 97. However, this law goes into force in 2024 and will only get harder in 2030 and beyond. The NYC DOB provides information on compliance and reporting for NYC LL97. 

Use the GHG Emission Calculator to calculate the carbon penalty a building will incur for breaking LL97. DOB uses annual utility figures and building features to determine emissions thresholds and potential penalties for each compliance period. This compliance period ranges from 2024–2029, 2030–2034, 2035, and beyond.

The most recent set of regulations to direct the use of LL97 was finalized and released by DOB in December of 2023. These regulations set forth the following: 

• A new credit for early electrification work.
• Explanation for the reporting criteria for low-income housing and institutions of worship.
• Defining how the law will be applied. 
• They also identify pathways to lessen penalties.

Consequences of Non-Compliance

Are you a building owner whose building has gone above its annual building emissions limit? If so, from 2025, you’ll have to submit a report stating this. 

Moreover, this will make your building subject to a civil penalty. This penalty will be equivalent to the difference between the reported building emissions for that particular year and the building emissions limit for that time frame.  

Let’s say they do nothing to enhance their building’s performance. In that case, the City projects that between 20-25% of buildings will exceed their emissions restrictions in 2024. Moreover, about 75–80% of buildings won’t meet their pollution limitations by 2030 if owners don’t make any modifications. 

Also, the Buildings Department may impose infractions for breaking the law besides the civil penalties that the LL97 outlines. We may eventually disclose further details on possible offenses on this website.

Why Comply With NYC Energy Efficiency Laws?

Complying with NYC’s energy-efficiency regulations has several advantages:

• Energy Savings: Lower energy use results in longer-term savings and cheaper utility bills.
• Cost Savings: Adherence to regulations can assist in preventing penalties for non-compliance.
• Environmental Impact: Lowering carbon emissions to support NYC’s sustainability goals.

You can compute possible energy savings and cost reductions with the aid of publicly available datasets, like the ENERGY STAR Portfolio Manager, for benchmarking.

Resources and Support Programs

NYC provides building owners with tools and assistance programs to help them comprehend and fulfill these requirements:

• Examine grant and financial incentives that are available for energy-efficient upgrades through energy-efficiency incentive programs.
• Provides free workshops to assist you in learning about the many regulations and how your building might be affected by them.
• The NYC Retrofit Accelerator provides information on where to locate programs that are qualified and how to begin energy-efficiency work.

Going Above and Beyond Compliance

Although following the regulations is necessary, think about the advantages of going above and beyond in the long run:

• Improved Sustainability: You can increase the reputation and appeal of your building to potential tenants by putting sustainable procedures into place.
• Prospect-Making: Future-proofing your business against more stringent rules will save you time and money.

Although following NYC’s energy efficiency regulations can be challenging, building owners can successfully comply, reduce energy expenses, and make a contribution to a more sustainable city with the correct information and tools.

What NYC Building Owners Want

Building owners in NYC are spending more money on system controls to reduce expenses and increase efficiency. To cut emissions, they are also reducing their use of fossil fuels. Moreover, it’s necessary to maintain baseline pressure, temperature, and humidity constantly. 

Developing phases for major changes provide difficulty. Moreover, this difficulty also happens with structuring energy programs in continuously operating existing buildings. 

For example, you cannot just close a floor in a hospital and start again. Instead, the designs must include the ongoing needs of the patients and personnel while keeping the building’s objective in mind. There is a cost associated with the time and effort that are invested.

Each building has its own set of unique difficulties. This may relate to operations and maintenance, budgets, customer satisfaction, equipment age and use, and the building’s future. Moreover, customize services to each specific situation due to the technological intricacy. 

A Small Case Study

Some of our most enjoyable projects are collaborating with building operators and managers. They possess a thorough understanding of the systems on their property. They are ready to make financial investments in energy optimization and can demonstrate tangible returns on those efforts.

The building operations team is grateful that we were able to reduce their crew’s workload. They thanked us for boosting reliability at the end of the project. The property manager was happy that we could cut costs and lower risk. Moreover, the owner was pleased that we set them up for success so they won’t be penalized when the law changes in 2024 or 2030.

With the escalating fight against climate change and the ongoing implementation of emissions reduction policies by American communities, energy optimization and efficiency services will keep developing and growing. However, our goal and vision will never change: we will always strive to improve the buildings we work in so they can offer their clients a better deal.

Final Thoughts

The municipal regulations of New York City are intricate and subject to frequent changes that will make your head spin. Moreover, new laws are passed annually, along with modifications to already existing ones. Maintaining a building up to code is a challenging endeavor.

NYC’s Local Laws 97, 95, 87, 84, and 133 require building owners to adhere to several benchmarking and energy-saving reporting standards and achieve reductions in greenhouse gas emissions. 

The staff at The Cotocon Group is knowledgeable about these regulations, and our group of qualified commissioning authorities, benchmarking experts, and energy engineers assists our clients in New York City in remaining compliant and avoiding fines. 

So, we think that property managers and trustees can do more jointly if they are equipped with the appropriate technologies. Board members will have visibility and influence over everything that occurs in their building, and property managers will be able to concentrate on what actually matters. 

So, contact us right now to find out more about our capabilities.