What is Local Law 97? A Complete Guide for NYC Building Owners

Local Law 97 establishes emission caps for buildings over 25,000 square feet, requiring them to significantly reduce their carbon footprint over the next few decades. The law focuses on reducing emissions from the city's largest buildings, which are a major contributor to its overall carbon emissions.

The key goals of LL97 include:

• Reducing GHG emissions by 40% by 2030 (compared to 2005 levels)
• Achieving an 80% reduction in GHG emissions by 2050

These targets are enforced through mandatory compliance periods and escalating penalties for non-compliance.

The requirements of LL97 are designed to ensure that building owners take actionable steps towards reducing their carbon emissions

1. Annual Emissions Reporting: Beginning May 1, 2025, building owners must report their annual carbon emissions. This reporting will be used to assess whether the building's emissions are within the specified limits. 
2. Emission Limits: The law sets specific emissions caps that become stricter over time. Buildings that exceed these caps will need to take corrective measures to reduce their carbon footprint or face significant penalties. 
3. Building Upgrades: If a building's emissions are above the allowable limits, owners may need to invest in energy efficiency upgrades, renewable energy installations, or other sustainability measures to bring their buildings into compliance. 
4. Data Sharing: Building owners must share their consumption data with the Energy Star Portfolio Manager to track and manage energy usage.

LL97 compliance is divided into three major periods, each with its own set of requirements:

• 2025: Initial reporting and assessment of emissions
• 2030: First major emission reduction milestone, with stricter caps and more stringent requirements.
• 2050: Final target for achieving significant emission reductions in line with the city's goal of carbon neutrality.

Failure to comply with LL97 can lead to severe financial penalties:

• Excess Emissions: Buildings emitting more than their allowed GHG limits will be fined $268 per metric ton of CO2 above the limit.
• Failure to Submit Reports: A penalty of $0.50 per square foot per month will be imposed until compliance is achieved.
• False Reporting: Falsifying emissions data can lead to penalties of $500,000 or more.

These penalties highlight the importance of adhering to the law's requirements and making measurable progress in reducing emissions.

The properties affected by LL97 include:

• Buildings over 25,000 square feet
• Two or more buildings on the same tax lot with a combined area exceeding 50,000 square feet
• Two or more buildings owned by a condominium association, governed by the same board, exceeding 50,000 square feet

Building owners in these categories must take immediate action to understand their current emissions levels and make plans to meet the upcoming targets.

Building owners can take several steps to prepare for LL97 compliance:

• Benchmark Your Building's Emissions: Use tools like the Energy Star Portfolio Manager to understand your building's current emissions profile.
• Plan for Energy Efficiency Upgrades: Consider investments in energy-efficient lighting, HVAC systems, and other infrastructure improvements to reduce emissions.
• Explore Financing Options: Look into flexible financing solutions like Energy-as-a-Service or Power Purchase Agreements (PPAs) to fund these upgrades without large capital outlays.
• Partner with Experts: Work with experienced partners who specialize in building efficiency and LL97 compliance to guide you through the process.

Local Law 97 represents a significant step towards a more sustainable future for New York City. For building owners, understanding and complying with the law is crucial to avoid hefty fines and contribute to the city’s climate goals. By taking proactive measures now, you can not only meet the requirements of LL97 but also benefit from long-term energy savings and increased property value.