As the world focuses on reducing carbon emissions to fight climate change, New York City is leading the way with Local Law 97 (LL97), legislation aimed at significantly cutting the carbon footprint of the city’s largest buildings. If you’re a building owner or operator in New York City, here’s what you need to know about Local Law 97 and how you can begin your building’s decarbonization journey.
What is Local Law 97?
Enacted in 2019 as part of New York City’s Climate Mobilization Act, Local Law 97 is one of the most ambitious climate laws in the country. It targets the city’s biggest greenhouse gas emitters—buildings—and requires them to reduce their emissions starting in 2024. By 2030, New York City aims to slash its greenhouse gas emissions by 40%, with even stricter reductions set for 2050.
Under LL97, buildings that exceed their allowable emissions limits will face hefty fines, making compliance a top priority for property owners and operators across the city.
Which Buildings Does Local Law 97 Apply To?
Local Law 97 applies primarily to large buildings, specifically:
Properties over 25,000 square feet
Two or more buildings on the same tax lot with a combined square footage exceeding 50,000
Condo and co-op buildings that meet these size thresholds
Certain categories of buildings, such as houses of worship, rent-regulated housing, and some city-owned properties, have different or delayed requirements. However, most commercial, residential, and public buildings must comply with the emissions caps set by LL97, making it essential for building owners and operators to act swiftly to avoid penalties. Is your building on the list?
What Owners and Operators Need to Know
With the first compliance deadline set for 2024, and a crucial emissions reduction milestone in 2030, building owners need to be proactive. Here are a few key things you need to keep in mind:
Emissions Caps: Your building’s allowable emissions are determined by its occupancy type. LL97 establishes different emissions limits for residential, office, and other building categories.
Fines for Non-Compliance: Buildings that exceed their emissions cap will face fines of $268 per metric ton of CO2 over the limit each year. Depending on the size and energy use of your building, these fines could be substantial.
Data Collection: To comply with LL97, you need to collect data on your building’s energy use and emissions. This information is essential for benchmarking your building’s performance against LL97 requirements.
Decarbonization Pathways: Achieving compliance involves more than just tracking your emissions—you need to actively reduce them through decarbonization strategies. Fortunately, there are several pathways you can take to meet the emissions caps.
Pathways to Decarbonize Your Building
Meeting Local Law 97 requirements may seem daunting, but there are effective strategies available to help you reduce your building’s emissions without breaking the bank. Here are some of the key pathways:
Optimize Energy Efficiency: Improving energy efficiency is one of the quickest ways to reduce your building’s carbon footprint. This can be achieved through measures like upgrading lighting systems to energy-efficient LEDs, adding insulation, sealing windows and doors, and optimizing building controls for HVAC systems.
Retro-Commissioning of HVAC Systems: HVAC systems account for up to 60% of a building’s energy use and emissions. Optimizing the performance of your HVAC system is a major step in decarbonization. This not only reduces emissions but also cuts operational costs.
Leverage Renewable Energy: Incorporating renewable energy sources such as solar panels or purchasing renewable energy credits (RECs) can help reduce your building’s reliance on carbon-heavy energy sources. By lowering your overall energy demand from fossil fuels, you bring your building closer to compliance with LL97.
Take Advantage of Financial Incentives: New York State offers several incentives to help building owners reduce the cost of decarbonization. The NYSERDA FlexTech program, for instance, provides financial assistance for energy-saving projects like retro-commissioning and energy audits. Eligible building owners can save 50-100% on retro-commissioning costs, making it easier to achieve compliance.
Filing a Decarbonization Plan with the Department of Buildings: DecarbNY offers a streamlined path to LL97 compliance by helping you file a decarbonization plan for eligible buildings with projected energy savings and operational carbon reductions. This is a critical step in mitigating penalties under the Good Faith Effort pathway, which grants an additional two years to meet compliance targets if they file a plan by May 1, 2025.
DecarbNY is a comprehensive program designed to support building owners and operators in New York City as they work toward compliance with Local Law 97. With access to advanced decarbonization technologies and financial incentives, DecarbNY can help your building avoid costly fines and achieve long-term sustainability.
If your building is facing the challenge of complying with Local Law 97, now is the time to act. Contact DecarbNY today to decarbonize and secure a path to compliance.
By taking proactive steps now, you can not only avoid penalties but also position your building as a leader in sustainability, reducing operational costs and enhancing its value in the marketplace. Reach out today to start your decarbonization plan with DecarbNY!
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