 Energy Benchmarking plays a crucial role in transforming New York City’s built environment toward a more energy-efficient and sustainable future. First introduced in 2009 through NYC Local Law 84, the law requires large buildings to annually measure and report their energy and water consumption. This initiative helps track performance, identify inefficiencies, and reduce greenhouse gas (GHG) emissions citywide.
Understanding NYC Local Law 84 and Its Expansion
Under Local Law 84 (LL84), all buildings over 50,000 square feet must annually submit benchmarking data to the U.S. Environmental Protection Agency’s (EPA) online tool — ENERGY STAR Portfolio Manager. This standardized reporting system allows building owners to analyze their energy use and compare performance with similar properties nationwide.
In 2016, Local Law 133 (LL133) expanded this requirement to include buildings between 25,000 and 50,000 square feet, further broadening NYC’s efforts toward energy transparency. Together, LL84 and LL133 provide a complete picture of how NYC’s buildings consume energy, paving the way for informed decision-making and long-term savings.
Energy Grades and Transparency – Local Law 33 and Local Law 95
In 2018, the city introduced Local Law 33 (LL33), requiring the posting of Energy Efficiency Scores and Grades at building entrances. These grades are derived from the benchmarking data submitted via the ENERGY STAR Portfolio Manager.
Later, Local Law 95 (LL95), enacted in 2019, updated how those grades are assigned based on a building’s ENERGY STAR score:
- A: Score ≥ 85
- B: Score ≥ 70 but < 85
- C: Score ≥ 55 but < 70
- D: Score < 55
- F: Buildings that failed to submit benchmarking data
- N: Buildings not covered or exempt from ENERGY STAR scoring
These grades must be publicly displayed by October 31 each year, helping tenants and buyers make informed decisions and motivating owners to improve energy performance.
Penalties for Non-Compliance
Failure to submit the annual benchmarking report can result in a $500 fine per quarter, up to $2,000 per year, imposed by the NYC Department of Buildings (DOB). Non-compliance not only leads to financial penalties but can also impact a property’s reputation and market value.
Why Energy Benchmarking Matters
Benchmarking offers multiple benefits beyond legal compliance. It helps:
- Identify energy-saving opportunities
- Reduce operational and utility costs
- Enhance tenant comfort and satisfaction
- Lower a building’s carbon footprint
- Improve long-term property value and performance
On average, buildings that implement efficiency upgrades based on benchmarking insights can reduce energy costs by up to 30%.
Connecting Benchmarking to Local Law 97 Compliance
Energy Benchmarking also supports compliance with Local Law 97 (LL97) — NYC’s most ambitious climate legislation that sets strict carbon emission caps for buildings over 25,000 square feet starting in 2024. Benchmarking data provides the baseline necessary to measure progress toward LL97 targets and identify areas for emission reduction.
By integrating the goals of Local Laws 84, 133, and 97, building owners can achieve better performance, cost savings, and long-term compliance with NYC’s Climate Mobilization Act, which aims to reduce building-related carbon emissions by 40% by 2030 and 80% by 2050.
A Smart Investment for a Sustainable Future
Complying with Energy Benchmarking laws should not be viewed as a burden but as a strategic investment. Energy-efficient buildings not only save money but also attract higher-value tenants, reduce maintenance costs, and future-proof operations against stricter climate regulations.
Ready to improve your building’s energy performance?
At The Cotocon Group, our experts can guide you through every step of the Energy Benchmarking and compliance process — from data collection to identifying energy-saving upgrades.
Contact us today to learn how benchmarking can help your building perform better while contributing to a cleaner, greener New York City.
