Important Local Law 97 Updates for New York City Building Owners

Important Local Law 97 Updates for New York City Building Owners

New York City is taking bold steps toward a greener future, and Local Law 97 (LL97) is at the heart of this change. As part of the Climate Mobilization Act, LL97 is one of the most ambitious climate laws in the U.S., designed to cut harmful greenhouse gas (GHG) emissions from buildings—the city’s biggest source of pollution.

If you’re a property owner, manager, or board member, understanding the latest updates to LL97 is essential to avoid penalties and prepare for a sustainable future.

What Is NYC Local Law 97?

Passed in 2019, LL97 sets strict carbon emission limits for buildings over 25,000 square feet, covering nearly 50,000 properties across NYC. Since buildings account for almost 70% of the city’s emissions, this law plays a crucial role in meeting NYC’s goal of reaching carbon neutrality by 2050.

The law calculates emissions based on a building’s energy use, creating limits that become stricter over time.

Who Does LL97 Apply To?

• Residential, commercial, and municipal buildings larger than 25,000 sq. ft. 
• Groups of buildings on the same tax lot that together exceed 50,000 sq. ft. 
• Condominium and co-op properties meeting the size criteria 

This means almost every large building in NYC is affected, making compliance planning a must.

Key Emission Limits and Deadlines

• 2024–2029: The first compliance period targets the worst 20% of buildings with the highest emissions. 
• 2030–2034: Limits become much stricter, affecting most covered buildings. 
• 2050: The city’s long-term goal is net-zero carbon emissions. 

Penalties for Non-Compliance

Buildings that fail to meet the carbon caps face hefty fines:

• $268 per metric ton of CO₂ emissions over the limit, per year
  
• Potential penalties reaching hundreds of thousands or even millions of dollars annually
  

Non-compliance can also reduce property value and harm reputation in a sustainability-focused market.

How to Calculate Your Building’s Emissions

To check where your property stands, you’ll need to calculate emissions based on:

• Building size and type
  
• Energy consumption (electricity, gas, oil, steam, etc.)
  
• Fuel mix
  

Many owners use the EPA’s ENERGY STAR Portfolio Manager to track energy data. Working with a Local Law 97 consultant makes this process easier and ensures accurate reporting.

Why Energy Efficiency Is Key

Improving energy efficiency is the most cost-effective way to comply with LL97 while lowering operating costs. Benefits include:

• Lower carbon footprint – reduce GHG emissions by cutting energy waste
  
• Long-term savings – efficient systems lower utility bills
  
• Better air quality – fewer fossil fuels burned means cleaner air indoors and outdoors
  

Energy-Efficient Upgrades to Consider

• LED Lighting & Controls: Use less power and last longer than traditional bulbs.
  
• Building Envelope Improvements: Upgrade insulation, windows, and doors to reduce heat loss.
  
• High-Efficiency HVAC Systems: Modern systems use less energy while improving comfort.
  
• Renewable Energy: Solar panels, wind energy, and clean grid options can offset emissions. 

Challenges and Support Available

Some owners hesitate due to upfront costs or lack of awareness. But NYC and New York State offer financial incentives, tax credits, and financing programs to support compliance.

• NYC Accelerator: Free advisory service to help owners plan upgrades.
  
• Incentives & Rebates: From NYSERDA, Con Edison, and federal programs.
  
• Energy Audits & Benchmarking: Identify the biggest opportunities for savings. 

A Step-by-Step Path to Compliance

1. Energy Audit: Assess current energy use and emissions.
   
2. Plan Upgrades: Prioritize quick wins like lighting before major system replacements.
   
3. Implement Improvements: Upgrade HVAC, insulation, and controls.
   
4. Track & Report: Submit annual emissions reports as required by the law.
   

Final Thoughts

Local Law 97 is a game-changer for New York City’s buildings. While the challenges are real, the opportunities are bigger—lower energy bills, healthier spaces, and a cleaner city for future generations.

At The Cotocon Group, we specialize in Local Law 97 compliance solutions that help building owners avoid fines while achieving energy savings. By taking action now, you not only stay ahead of regulations but also future-proof your property.