Overview
Introduced: 2019
Effective from: January 1, 2024
Region(s): New York City, USA
About
Local Law 97 is part of New York City’s Climate Mobilization Act and is one of the most ambitious building emissions regulations globally. It aims to drastically reduce greenhouse gas emissions from large buildings, which account for over two-thirds of the city’s total emissions. The law sets carbon caps for buildings over 25,000 square feet, with increasingly stringent limits through a series of compliance periods from 2024 through 2050. The ultimate goal is to achieve net-zero carbon emissions by 2050.
Criteria for compliance
Entities covered
- Buildings in New York City exceeding 25,000 square feet
- Two or more buildings on the same tax lot that together exceed 50,000 square feet
- Two or more buildings governed by the same board of managers that together exceed 50,000 square feet
Compliance timelines
- 2024-2029: Initial compliance period, with carbon emission limits affecting the most carbon-intensive buildings
- 2030-2034: Second compliance period with more stringent emission limits
- 2035-2050: Progressive tightening of emissions limits leading to net-zero by 2050
Prescriptive Energy Conservation Measures (PECMs)
- The Department of Buildings (DOB) has made available the Article 321 Workbook for Reporting Prescriptive Energy Conservation Measures, along with a template for the documentation of four PECMs.
- The completed template must be uploaded for each covered building by May 1, 2025.
Reporting requirements
- Buildings must calculate and report their carbon emissions based on energy consumption.
- Annual emissions are calculated by multiplying the building’s energy use by the carbon content of the energy sources.
- Each building’s emissions limit is determined by its property type and square footage, with varying limits for different categories.
Flexibility and alternatives
- Buildings can comply by reducing energy use, switching to cleaner energy sources, or purchasing renewable energy credits (RECs) or greenhouse gas offsets.
- Certain buildings, like those with more than 35% rent-regulated units, may follow alternative compliance pathways, such as implementing prescriptive energy-saving measures instead of meeting strict emissions caps.
Third-party auditing
The law requires third-party verification of emissions calculations, with reports certified by a registered design professional. The Office of Building Energy and Emissions Performance within NYC’s Department of Buildings oversees implementation and enforcement.
Penalties for non-compliance
Buildings exceeding their emissions limits face significant financial penalties, calculated as $268 per metric ton of CO2e over the limit. Failure to file required reports can result in additional penalties based on building size and duration of noncompliance.
Legal challenges
A state appellate court recently revived a lawsuit challenging Local Law 97, arguing that the law might conflict with the New York State Climate Leadership and Community Protection Act (CLCPA). This lawsuit raises concerns about the law’s future, although the City of New York is continuing to enforce it while the legal proceedings continue.
