NYC Local Law 95 – All You Need to Know About Building Energy Grades

Understanding NYC Local Law 95

To make New York City a cleaner and healthier place, the Department of Buildings (DOB) requires large building owners to display energy efficiency grades at their main entrances. This mandate comes from NYC Local Law 95, which amended Local Law 33 in 2019.

If you’ve walked through the city, you’ve probably noticed these letter grades (A–F) posted at building entrances. They provide tenants, visitors, and the public with a quick view of how well a building performs in terms of energy efficiency. The official grading system design was first introduced in 2020.

Why Was NYC Local Law 95 Enacted?

Local Law 95 is part of New York City’s Climate Mobilization Act (CMA)—a package of laws designed to tackle climate change.

• Buildings in NYC account for nearly two-thirds of all greenhouse gas emissions.
• The CMA requires large and medium-sized buildings to reduce their emissions by 40% by 2030 and 80% by 2050.
• Local Law 95 ensures transparency by making energy grades visible, motivating owners to improve efficiency and reduce emissions.

What Does the ENERGY STAR Score Mean?

The ENERGY STAR score is a rating system developed by the U.S. Environmental Protection Agency (EPA). It works on a 1–100 scale:

• A score of 50 means the building performs better than 50% of similar buildings nationwide.
• A score of 75 or higher means the building is in the top 25% for energy performance.
• A perfect 100 is rare but represents the highest efficiency standard.

This score is the foundation of NYC’s letter grade system under Local Law 95.

How Is the Score Calculated?

The score is generated using the EPA’s Energy Star Portfolio Manager, based on data submitted by building owners. Factors include:

• Building size and type
• Location and climate
• Number of occupants and computers
• Actual utility data (electricity, gas, steam, water)

The system compares your building’s data against similar properties nationwide to assign a score and corresponding grade.

NYC Local Law 95 – Energy Grades Explained

Under Local Law 95, buildings receive the following letter grades based on their ENERGY STAR score:

Grades must be downloaded from the DOB NOW portal and posted near each public entrance by October 31 each year.

Who Must Comply with Local Law 95?

Local Law 95 applies to:

• Office buildings
• Hotels
• Retail spaces
• Houses of worship
• Large multifamily residential properties

Generally, it covers buildings 25,000 square feet or larger, or multiple buildings on a single lot that together exceed 100,000 square feet.

What Happens If You Don’t Post Your Grade?

If building owners fail to post their energy efficiency grade by the deadline:

• They face an annual fine of $1,250.
• The property will also receive a DOB violation, which may affect future compliance and inspections.

To avoid penalties, owners must submit benchmarking data by May 1 each year and post grades by October 31.

Connection Between Local Law 95 and Local Law 97

While Local Law 95 focuses on transparency through public energy grades, Local Law 97 (LL97 NYC) enforces strict carbon caps on large buildings starting in 2024.

• Local Law 95 makes performance visible.
• Local Law 97 penalizes inefficient buildings that exceed carbon limits.

Together, these laws push NYC closer to its climate goals.

Why Energy Grades Matter for Building Owners

Energy grades directly impact:

• Tenant attraction and retention – Tenants prefer energy-efficient spaces.
• Property value – Better grades enhance market competitiveness.
• Operating costs – Improved efficiency reduces energy bills.
• Compliance risk – Poor performance could lead to higher fines under Local Law 97.

How to Improve Your Building’s Energy Grade

Improving your ENERGY STAR score often requires:

• Upgrading HVAC systems
• Installing LED lighting and controls
• Implementing submetering for energy tracking
• Regular energy audits and retro-commissioning
• Exploring renewable energy options like solar

Final Thoughts

NYC Local Law 95 is more than just a grading system—it’s a powerful tool to drive accountability and energy efficiency across New York City. By making grades visible to the public, the city ensures building owners take proactive steps toward sustainability.

If your building received a low grade or you want to improve efficiency before Local Law 97 carbon caps take effect, now is the time to act.

Hire an Expert

At The Cotocon Group, we specialize in helping building owners meet NYC Local Law requirements, reduce carbon emissions, and improve sustainability performance.
📞 Call us at (212) 889-6566 or 📧 email info@thecotocongroup.com to learn how we can help improve your energy grades and prepare for future compliance.