Local Law 97/19 F.A.Q.

LL97 of 2019 F.A.Q.

The NYC Climate Mobilization Act, particularly Local Law 97 of 2019 sets emissions caps for buildings larger than 25,000 square feet, beginning in 2024. The law is designed to cut carbon emissions at least 40% by 2030 and over 80% by 2050 from the affected buildings. Buildings that do not comply will face significant fines on an annual basis beginning in 2024. Every five years the carbon emissions caps will be made more stringent.

LL97 was amended by LL97 of 2019 Technical Amendment and LL116 of 2020 which amends LL147/19 regarding “Rent Regulated Accommodation”. Under LL116/19 the term “rent regulated accommodation” means a building in which more than 35% of dwelling units are required by law to be regulated. Covered buildings with at least one rent regulated dwelling unit may delay LL97 compliance with annual building emissions limits until January 1, 2026, and submission of first required LL97 report until May 1, 2027.

Local Law 97 of 2019 sets detailed requirements for periods 2024 through 2029 and 2030 through 2034 and requires the City to clarify the requirements for future periods through 2050.

In 2024 LL97 will impact the worst 20% carbon emitters. In 2029 LL97 will impact the next worst 75% of carbon emitters. An average building will meet the initial 2024 requirement but must reduce emissions to meet the more stringent 2030 limits. Note that Covered buildings with at least one rent regulated unit will be impacted first in 2026, with the LL97 Report due on May 1, 2027.

Buildings over 25,000 square feet must meet annual carbon intensity limits during each compliance period based on building type(s) and type of energy used (i.e. electricity, natural gas, fuel oil, District Steam).

Well-managed buildings will act continuously to Identify problems, plan, and implement energy upgrades, which is a multi-year process. This is not the time to sit back and wait to see what happens.

Benefits of LL97:

In addition to its climate change benefits and new green job creation, LL97 will improve air quality, protecting New Yorkers from harmful pollution which causes many respiratory health conditions, especially for young children and the elderly.

Frequently Asked Questions:

1. How many buildings will be affected by this legislation?

Approximately 50,000 buildings on 23,000 properties are affected by LL97.

2. What is the first step a building owner should do?

The first step is to assess your building’s current total carbon emissions by reviewing your 2019 LL84 Benchmarking results and the calculated Total Annual Greenhouse Gas Emissions (Metric Tons CO2e/year). This number is provided in the LL84 spreadsheet submitted by your benchmarking professional. The Total GHG Emissions number is also available on your building’s LL84 Energy Star Statement of Energy Performance which you can get from your property management company.

3. What if I do not comply?

Buildings must pay annual fines of $268 per metric ton that their carbon footprint exceeds the limit. There are also fines for not submitting a report (.50 per building square foot, per month).

4. How do I calculate the estimated LL97/19 annual carbon emissions limit penalty?

Call IGP at 212-737-5720 and we can help you. See sample calculations for buildings with different property types here. Your property manager can also help you.

5. How does the LL87 Energy Audit Report help me?

Review your LL87 Energy Audit & Retro-commissioning Report (only required for buildings greater than 50,000 square feet). This report will include the recommended Energy Conservation Measures (ECM) made by your auditing firm.

Did you complete all or most of these LL87 ECMs? Energy Conservation Measures are different from the Retro-commissioning (RCx) measures that you were required by law to complete prior to submitting the LL87 Report. Your LL87 Report may be out of date since there have been many energy efficiency technological advances since LL87 was enacted.

6. How will LL97 affect the purchase price of coo-ops, condos, or multifamily and commercial rental buildings?

Buyers of co-ops, condos and multifamily and commercial buildings will have to factor in the LL97 penalties and multiple other costs required to meet the LL97 emissions limits. If you want to maintain your property’s value, owners should start planning for compliance now.

Multifamily Co-op or Condo Example:

If two owned apartments are for sale in different buildings that are very comparable, but one building faces significant LL97 penalties and the other does not, the value of the co-op or condo in the more energy efficient building will be higher. Potential buyers will worry about increases in their monthly condo fees. Similarly, buyers of cooperative apartments will be concerned about rising monthly co-op maintenance fees. Brokers and buyers will act accordingly.

Commercial Building Example:

If two very similar commercial office buildings in the same neighborhood are for sale, but one faces significant LL97 penalties and the other does not, the potential buyer will factor into his “return on investment” analysis all the costs associated with owning an energy inefficient building, including the annual LL97 penalties and the cost to upgrade the building to meet the LL97 requirements.

7. How do I reduce my carbon emissions and prepare for compliance?

All buildings should prepare a long-term energy strategic plan focused on carbon reduction that will meet or exceed the emissions performance targets. This planning process takes time and might seem overwhelming.

8. How can IGP help our building(s)?

IGP will do a Site Visit followed by a detailed IGP Energy Efficiency Action Plan

9. What is the IGP’s Energy Efficiency Action Plan?

IGP’s Energy Efficiency Action Plan will evaluate all potential energy and carbon reduction initiatives in the near and long-term, including:

- Base building heating, ventilation, and air conditioning (HVAC) equipment
- Combined heat and power
- Fuel conversion
- Demand response
- Building-scale renewable energy and storage projects
- Common area lighting
- Building-wide sensors and controls
- Tenant lighting
- Tenant HVAC
- Water consumption
- Building envelope, including windows and doors
- Common area equipment (elevators, etc.)
- And more, including benefits of Green Leases for commercial buildings

10. How do I implement the IGP Energy Efficiency Action Plan?

The Owner can only address the common area energy efficiency issues. Multifamily and Commercial tenants consume on average 40-80% of the total energy used in buildings. In commercial buildings, tenant equipment, operations, and behavioral patterns have a significant impact on the overall performance, energy use and carbon footprint of the buildings they occupy. Commercial landlords should be evaluating the benefit of green leases.

The best approach is for the Owner to get input and cooperation from key stakeholders including tenants, building operators, property manager, (governing agency in the case of affordable housing), the Board (co-ops & condos) and legal counsel.

IGP specializes in engaging tenants in energy efficiency initiatives which is crucial to unlocking the full energy savings potential of a building. By leading this type of collaboration, IGP prevents miscommunication and saves you time and money.

IGP will assist you to:

- prioritize projects,
- find the best contractors,
- manage the projects,
- engage the tenants
- access available utility incentive, City, State and Federal tax benefits, and
- assist with accessing a variety of financing options

11. How can I finance these LL97 energy efficiency projects?

The principals at IGP, working with your accountant, legal counsel and property manager, can assist you to execute a variety of financing vehicles, including:

- Property Assessed Clean Energy (PACE) loans [i]
- Bank loans
- Equipment loans
- Equipment leases
- Power purchase agreements
- Energy services agreements
- Construction financing and pre-development financing

[i] Private loans authorized under LL96/19, which can be repaid on the building’s property tax bill. See LL96 PACE Financing FAQ.