NYC LOCAL LAW 97
In 2019, New York City enacted Local Law 97 to drive deep emissions cuts from buildings, which are responsible for more than two-thirds of NYC’s greenhouse gas emissions. The law places carbon caps on most buildings larger than 25,000 square feet — covering nearly 50,000 properties across NYC.
It is the most ambitious building emissions legislation enacted by any city in the world, and it incorporates many recommendations from Urban Green’s 80×50 Buildings Partnership.
WHAT IS LOCAL LAW 97
In 2019, New York City introduced Local Law 97 as a measure to significantly reduce emissions from buildings, which account for over two-thirds of the city's greenhouse gas emissions. This legislation imposes carbon limitations on most buildings exceeding 25,000 square feet in size, encompassing nearly 50,000 properties throughout New York City.
The implementation of Local Law 97 involves a phased approach towards carbon limitations extending until 2050. Commencing in 2024, various provisions of the law will be gradually introduced. Carbon restrictions will be incrementally tightened throughout a series of compliance periods spanning until 2049, culminating in a mandate for all buildings to adhere to zero emissions standards by 2050. Further details regarding the timeline of Local Law 97 are outlined below.
LOCAL LAW 97
Affects buildings greater than 25,000 square feet
Sets increasingly stringent limits on carbon emissions per square foot beginning in 2024
Flexibility to comply through renewable energy credits and/or emissions offsets
Allows some affordable housing to choose low-cost energy saving measures instead of emissions limits
LOCAL LAW 97 TIMELINE:
The stringency of carbon limitations will increase across successive compliance periods: 2024-2029, 2030-2034, 2035-2039, 2040-2049, and beyond 2050.
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May 2019
Local Law 97
Carbon limits are set on buildings over 25,000 square feet. The Office of Building Energy and Emissions Performance (OBEEP) is created at DOB to oversee implementation and compliance.
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December 2022
Advisory Board Report Released
Consensus recommendations from experts and stakeholders will inform DOB's rulemaking on the law's metric, requirements, and other details.
DOB Rulemaking
DOB Rule 103-14 establishes emissions limits across all compliance periods for 60 property types, assigns emissions factors for electricity in 2030, limits REC use to electricity, and answers many other technical compliance details.
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January 2024
2024 Compliance Period Begins
Covered buildings must limit annual emissions to their cap for calendar years 2024-2029. Certain types of affordable housing and buildings under the law's Article 321 prescriptive path have delayed or altered requirements.
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December 2024
Article 321 Prescriptive Path Deadline
Article 321 buildings must either: a) complete the required list of prescriptive energy conservation measures; or b) meet their 2030 carbon limit in 2024.
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May 2025
First Compliance Reports Due
Due by May 1st each year, the reports will detail the building's emissions in the prior year and whether the law's requirements were met.
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June 2025
City Operations 40% Target
By fiscal year 2025, there must be a 40 percent reduction in emissions from city government operations below fiscal year 2006.
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January 2026
OBEEP Report On Compliance
OBEEP must submit a report to the mayor on the compliance of covered buildings under the law. Subsequent report due annually each January 1.
Rent-Regulated Compliance Begins
Buildings with at least one and not more than 35% rent regulated units must begin complying with law's carbon caps.
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January 2030
2030 Compliance Period Begins
New, stricter emissions limits are placed on covered buildings for calendar years 2030-2034 (unless otherwise excepted).
Lower Electricity Carbon Coefficient
After 2030, the carbon associated with a building's electricity use will be lowered under the law. This step reflects the projected timeline for a lower-carbon grid powered by renewable energy in NYS.
NYCHA Housing 40% Target
NYCHA must make best efforts to reduce greenhouse gas emissions by 40% below 2005 levels by 2030.
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June 2030
City Operations 50% Target
By fiscal year 2030, there must be a 50 percent reduction in emissions from city government operations below fiscal year 2006.
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January 2035
2035 Compliance Period Begins
New, stricter emissions limits are placed on covered buildings for calendar years 2035-2039 (unless otherwise excepted).
Electricity Carbon Coefficient TBD
The amount of carbon a building must account for from their electricity use will be refined again in line with projected renewable energy deployment in NYS after 2035.
Income-Restricted Housing Compliance
Some types of housing, like those designated as Mitchell Lama rentals, have delayed compliance requirements with the law's carbon limits that begin in 2035.
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January 2040
2040 Compliance Period Begins
New, stricter emissions limits are placed on covered buildings for calendar years 2040-2049 (unless otherwise excepted).
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January 2050
2050 Zero Emissions Requirements
All covered buildings must demonstrate compliance with an emissions factor of 0.00 beginning in 2050.
NYCHA Housing 80% Target
NYCHA must make best efforts to reduce greenhouse gas emissions by 80% below 2005 levels by 2030.
DIVERSE CARBON CAPS FOR 60 PROPERTY TYPES UNDER LOCAL LAW 97
Under Local Law 97, emissions restrictions are tailored to individual buildings, measured in carbon emissions per square foot. The carbon limits for each building are contingent upon its dimensions, property classification, and the relevant compliance period.
Commencing in 2024, the law mandates emissions constraints for 60 distinct property types sourced from Energy Star’s Portfolio Manager, acknowledging the broad spectrum of energy consumption among buildings. These limitations are progressively tightened over five compliance periods, resulting in a gradual reduction in permissible carbon emissions for each building over time. Delve into the specifics of the law's carbon caps for select property types below.
EVOLUTION OF EMISSIONS LIMITS FOR LL97 PROPERTY TYPES
The emissions limits for property types under Local Law 97 undergo a tightening trajectory across multiple compliance periods: 2024-2029, 2030-2034, 2035-2039, 2040-2049, and beyond 2050.
Buildings contribute to carbon emissions through their energy consumption, which encompasses various fuel types such as electricity, natural gas, or fuel oil. Local Law 97 (LL97) quantifies these emissions using carbon coefficients assigned to each fuel type, calculating a building's annual emissions based on its total energy usage.
The carbon footprint of electricity usage in buildings is expected to decrease over time as the energy grid becomes cleaner. LL97's carbon coefficient for electricity in the 2030 compliance period represents a significant improvement, being approximately 50% cleaner than the coefficient assigned for 2024. This shift aligns with New York State's ambitious goals for renewable energy deployment. To further reduce carbon emissions, transitioning building systems, such as heating and hot water, from fossil fuels to electricity will be crucial.
COMPLIANCE OPTIONS FOR BUILDING OWNERS
Building owners have various avenues to comply with LL97 regulations. Directly reducing carbon emissions through energy efficiency measures and switching to lower-carbon fuels are primary strategies. Additionally, owners can utilize credits from eligible renewable energy generation (RECs) or greenhouse gas reduction projects (GHG offsets). Onsite installation of solar panels or battery storage systems can also aid in meeting LL97 targets.
SPECIAL CONSIDERATIONS AND COMPLIANCE DEADLINES
Certain categories of buildings, such as affordable housing and income-restricted units, may have delayed or modified compliance requirements. Additionally, buildings categorized as "Article 321 buildings," including houses of worship and those with a high percentage of rent-regulated units, must complete a prescribed checklist of low-cost energy upgrades by 2024 instead of meeting carbon caps.
URGENCY FOR ACTION BEFORE 2030
Given current energy performance metrics, approximately 20% of properties exceed the carbon caps set for 2024, while around 76% surpass the caps set for 2030. However, these figures may vary across different property types. For more detailed insights, refer to the graphics below.
PROPERTIES BELOW AND ABOVE THE 2024 LL97 LIMITS (MULTI-FAMILY SECTOR)
Data year: 2022
PROPERTIES BELOW AND ABOVE THE 2030 LL97 LIMITS (MULTI-FAMILY SECTOR)
Data year: 2022
LATEST DEVELOPMENTS IN LOCAL LAW 97 IMPLEMENTATION
December 2023: Final Rules Published In December 2023, the NYC Department of Buildings unveiled the finalized version of the latest set of regulations for Local Law 97. This release introduces several key updates, including a new credit for beneficial electrification, criteria for determining mitigated penalties based on "good faith," clarification on the prescriptive path for compliant buildings, and additional guidance on fulfilling Local Law 88 lighting and submetering requirements.
September 2023: Proposed Rules Released On September 12, 2023, the NYC Department of Buildings issued a new series of proposed rules for Local Law 97. This package aims to address crucial details regarding compliance for covered buildings, marking a significant stride towards the law's full implementation. Highlights of the proposed rules can be found here, along with access to a webinar hosted by the Department of Buildings.
December 2022: Advisory Board Recommendations Following extensive engagement, including over 300 Advisory Board and Working Group meetings involving more than 100 stakeholders, the Local Law 97 Advisory Board Report was submitted to the NYC Department of Buildings. This report contains a comprehensive set of recommendations to guide the department's final rulemaking process. Additionally, Rule 103-14 for Local Law 97 was finalized, providing detailed specifications on property types, 2030's electricity carbon coefficient, emissions limits for future compliance periods, renewable energy credits, and technical compliance guidance.
October 2022: Release of Proposed Rules In October 2022, the NYC Department of Buildings unveiled proposed rules for Local Law 97, addressing numerous lingering questions about the law's requirements up to 2050. A summary of key points can be found in "Five Things to Know About the Proposed Rules," along with access to a webinar hosted by the Department of Buildings. Additionally, the Department released the LL97 Covered Buildings List, detailing properties potentially subject to compliance with Local Law 97.
June 2022: Budget Allocation The NYC Council approved a budget in June 2022, earmarking $2.4 million for the DOB Office of Building Energy Emissions Performance to oversee Local Law 97's implementation.
October 2021: Clarification Bulletin In October 2021, the NYC Department of Buildings issued a bulletin clarifying that energy used for charging plug-in electric vehicles would not be counted in building emissions under Local Law 97. Furthermore, NYC released guidelines and FAQs clarifying requirements for certain types of affordable housing.