30 Aug NYC Local Law 97 Compliance – 5 Important Things You Need To Know

New York is one of the biggest cities in the world, and the city’s sustainability initiatives are no news. The recent introduction and implementation of the NYC Local Law 97 is an excellent example of such initiatives from the city.     

The law came into being to lower city-wide emissions and energy consumption to counter the effects of climate change.  

However, with the new nature of the law, there still needs to be more clarity about New York City Local Law 97 in terms of different areas. This blog will explore different aspects of the law and highlight the important points you need to know about. So, let’s get started! 

5 Important Things You Need To Know About The NYC Local Law 97

While the NYC Local Law 97 has many nuances, we will evaluate five important aspects of the law here.    

1. Buildings Covered Under NYC Local Law 97

The emission limits under NYC Local Law 97 cover a wide range of city buildings based on different classification areas. The law applies to:

• Buildings with more than 25,0000 gross square feet of area
• Two or more buildings under the same tax lot and with a combined gross square feet area of 50,000 square feet.   
• Two or more buildings are owned by a condo association and governed by the same board of managers, exceeding 50,000 gross square feet area. 

2. Building Exempted From NYC Local Law 97

While NYC Local Law 97 covers a wide range of buildings in New York City, a significant proportion remain exempt from the law due to Article 320. Some of these buildings or conditions for exemption include:    

• A city building. 
• Industrial facilities whose primary use is to generate steam or electrical power. 
• A rent-regulated accommodation.  
• Real properties are not more than three stories of detached, attached, or semi-detached dwellings. However, each dwelling unit owner is responsible for maintaining hot water heating and HVAC systems. But another notable condition here is that no heating or HVAC system in the series should serve more than 25,000 gross square feet as certified by a registered design professional to the department.          
• Building and housing development on land owned by the New York City Housing Authority.  
• Buildings participating in project-based federal housing program. 
• Real properties owned by a housing development fund company organized under the business corporation law and article eleven of the private housing finance law.  

3. Penalties for Non-Compliance with NYC Local Law 97

Regarding NYC Local Law 97 fines, there are three penalties for building owners failing to comply with the necessary regulations.  

• First Penalty Type: This penalty deals with building owners exceeding emission limits. This attracts the maximum annual penalty, which is the difference between the emission limit of the building and its actual emission. The difference will be multiplied by $268.  
• Second Penalty Type: This is the second penalty designed for building owners failing to file the report. They will be liable to pay a fine of $0.50 for every building square foot multiplied by the number of months. 
• Third Penalty Type: This is the final form of penalty for NYC Local Law 97, designed for building owners filing false statements on the report. This severe and intentional fraud will attract a hefty fine of $500,000.  

Apart from these fines and penalties of NYC Local Law 97, building owners failing to comply with the conditions also suffer reputational damage. Eventually, this reputational damage has an adverse effect on their building’s valuation. 

4. Deadlines For Filing Report Under NYC Local Law 97

Since the NYC Local Law 97 has been operational since 2024, the first reporting LL97 deadline is finalized on the 1st of May 2025. This means that every building owner in New York with a building of 25,000 square feet or more must submit their report on 2024 energy use by the 1st of May 2025. Non-compliance on this front will attract more fines and penalties, making it essential to ensure you don’t miss this deadline at any cost.     

5. Proper Strategies To Reduce Your Building’s Carbon Emission

There are numerous ways to reduce your building’s carbon emissions, and leveraging these practices is important to ensure you do not pay any hefty fines. Hence, some of the ways you can start your carbon emission reduction plan include the following:    

• Use More Renewable Energy: While this goes without saying, using more renewable energy sources is one of the best ways to reduce carbon emissions. You do not need to do much, but you can maximize wind and solar energy to power your building.  
• Benchmark Your Carbon Emissions: Another effective way to go here is by benchmarking your building’s carbon emissions. This will give you a clear idea of where you stand and help you determine better ways to address all primary concerns and weak points.

• Ensure Effective Insulation: Proper insulation is necessary for every New York building trying to lower its carbon emissions. This will keep the cool air within the building while preventing hot air from changing the temperature.   
• Leverage Smart Technologies: Using smart building management technologies is another great way to reduce your building’s carbon footprint. You can use advanced solutions that monitor the building’s energy consumption to help you find flaws and address them properly.  

What is the highest fine under NYC Local Law 97?

The NYC Local Law 97 is important because it will become a significant tool for humanity to make collaborative efforts to combat climate change and lower global temperatures. The amount of NYC Local Law 97 penalties can vary based on multiple conditions. However, it is worth noting that building owners will have to pay a penalty of $500,000 if they furnish any fraudulent information in the final report.   

Final Thoughts 

The NYC Local Law 97 is a remarkable step towards a more sustainable future for NYC and the world. Understanding this law is important to ensure you don’t miss deadlines, avoid penalties, and take proper measures to lower carbon emissions.  

If you are still confused about NYC Local Law 97, contact The Cotocon Group to address your concern!