Understanding Nyc's Local Law 97 For Sustainable Buildings
Navigating Local Law 97: What NYC Property Owners Must Know
LL97, part of NYC’s Climate Mobilization Act, is one of the most aggressive building emissions laws in the U.S. It aims to reduce carbon emissions from buildings, which account for the vast majority of the city's greenhouse gases.
Starting in Benefits of retro-commissioning 2024, most buildings over 25,000 square feet will need to meet strict emissions caps. These limits get stricter in 2030, and there are steep penalties for missing targets.
Who Needs to Comply with LL97?
LL97 covers structures that are:
- Over 25,000 square feet
- Shared-lot buildings exceeding 50,000 sq ft
- Condominium complexes of sufficient size
Some buildings are excluded, including houses of worship, NYCHA housing, and buildings with significant affordable housing — though many may still face reporting requirements.
How Emissions Are Measured
To calculate emissions under LL97 involves tracking energy usage from various sources, including:
- Electric and gas utilities
- Fuel oil and steam
- City-delivered thermal systems
The Department of Buildings (DOB) provides carbon conversion metrics to convert energy usage into greenhouse gas emissions in metric tons of CO2e (carbon dioxide equivalent).
The 2024 and 2030 Caps
From 2024 to 2029, LL97 implements first-phase emissions thresholds. These limits are based on the property’s use type — for instance, office, residential, or retail. The 2030–2034 phase introduces stricter caps, making early improvements essential.
Buildings that exceed emissions caps in any given year will face a penalty of $268 per metric ton of CO2e above the threshold.
How to Avoid LL97 Fines
Property owners should act fast to ensure compliance. Recommended steps include:
- Perform an Energy Audit – Hire an engineer or sustainability consultant to assess energy use and identify inefficiencies.
- Benchmark Your Energy Use – Use tools like ENERGY STAR Portfolio Manager to track usage over time.
- Create a Decarbonization Plan – Develop a strategic roadmap that outlines capital improvements, timeline, and costs.
- Implement Retrofits – Upgrade HVAC systems, switch to LED lighting, insulate walls and windows, and invest in renewable energy where possible.
Reporting Requirements
Starting in 2025, building owners must file emissions reports based on the previous year’s performance. These reports must be signed off by a licensed architect or engineer.
Failure to submit can result in a $0.50 per square foot monthly fine, in addition to other penalties for inaccurate or false reporting.
Cutting Your Emissions Effectively
To reduce emissions, owners can invest in a variety of energy efficiency upgrades:
- Modern HVAC systems
- Rooftop solar systems
- Window and envelope insulation
- Upgrading boilers and chillers
There are incentives and funding opportunities available through agencies like NYSERDA and utilities such as Con Edison.
Penalties for Non-Compliance
Non-compliance with LL97 can be costly. Common fines include:
- Standard carbon overage penalties
- Documentation penalties
- Additional fines for fraud or data manipulation
Beyond financial penalties, tenants and investors may be deterred by non-compliance.
Beyond 2030: Long-Term Compliance
Local Law 97 is not static. Future updates could include:
- 2035+ compliance requirements
- Carbon offset mechanisms
- Fossil fuel phaseouts
Getting ahead today positions your property for long-term success — both in avoiding fines and meeting ESG goals.
Final Thoughts
Local Law 97 is reshaping how NYC thinks about buildings. For property owners, it’s not just a mandate — it’s an opportunity to lower operating costs.
Get a professional audit, and map out a path to compliance. With the right support and early investment, you can lead by example in NYC’s climate future.