Local Law 97
Like many U.S. cities, New York City seeks ways to contribute to a cleaner, healthier environment. In April 2019, the New York City Council enacted Local Law 97, an ambitious legislative initiative to reduce greenhouse gas emissions significantly within the city by placing carbon caps on targeted structures.
What Is Local Law 97?
This law specifically impacts large buildings in New York City and requires affected structures to reduce emissions by 40% as of 2030 and 80% by 2050. Compliance with these regulations will require building owners to invest in renovations and retrofitting as needed to ensure they meet specific benchmarking standards.
Buildings Impacted by Local Law 97
NYC LL97 applies to these structures:
- Buildings larger than 25,000 gross square feet
- Two or more buildings on the same lot exceeding 50,000 square feet
- Two or more buildings owned by a condominium association governed by the same board of managers and exceeding a combined 50,000 square feet
Local Law 97 Benchmarking
All buildings affected by the law are subject to Local Law 97 benchmarking requirements. This process entails taking annual water and energy consumption measurements and reporting the findings. Building owners must utilize the Energy Star Portfolio Manager, an online benchmarking tool provided by the U.S. Environmental Protection Agency, to submit their results by May 1 each year.
This tool provides affected property owners with valuable data that helps them identify areas to make their structures more energy efficient while providing more transparency regarding water and energy consumption.
What Are the Penalties for Noncompliance?
Building owners failing to comply with relevant Local Law 97 requirements will incur an annual financial penalty. The cost varies according to the difference between the building’s actual carbon emissions and its allowed limit. Once you’ve calculated this figure, multiply it by $268. Failure-to-report fees will also apply beginning in 2025.
Are There Exceptions to Local Law 97?
Certain buildings that meet the LL97 size guidelines are exempt from the benchmarking requirement. These exceptions include city-owned structures, nonprofit hospitals and medical facilities, religious buildings classified as houses of worship and specific rent-regulated dwellings.
UtiliSave Can Help With LL97 Compliance
Does Local Law 97 affect your New York City building or business? At UtiliSave, we focus on helping our clients improve their bottom lines by recouping money from their utility expenditures.
Our utility bill auditing service helps you improve your LL97 compliance. By uncovering and resolving errors in your utility consumption data through our audit process, we reduce your building’s reported carbon footprint. If your structure already exceeds your allowable carbon emission limit, we’ll conduct a comprehensive utility audit that may reduce your penalty. Our services can also help identify areas to increase energy efficiency.
Why Choose UtiliSave?
Since our founding in 1991, UtiliSave has established a successful track record of helping business owners, property managers and others reduce costs and increase operating efficiencies. We’ll help complete your Local Law 97 benchmarking requirements at no cost and ensure timely reporting to avoid penalties. Our services save valuable time and give you peace of mind.
Contact us to learn more about Local Law 97 solutions and utility auditing services today.
