{"id":5968,"date":"2026-04-10T10:33:31","date_gmt":"2026-04-10T10:33:31","guid":{"rendered":"https:\/\/thecotocongroup.com\/blog\/?p=5968"},"modified":"2026-04-10T10:34:27","modified_gmt":"2026-04-10T10:34:27","slug":"gas-vs-electric-buildings-nyc","status":"publish","type":"post","link":"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/","title":{"rendered":"Gas vs Electric Buildings Under Local Law 97 \u2013 Who Pays More?"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Gas_vs_Electric_Buildings_Under_Local_Law_97_%E2%80%93_Who_Pays_More\" >Gas vs Electric Buildings Under Local Law 97 \u2013 Who Pays More?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Understanding_Local_Law_97_in_Simple_Terms\" >Understanding Local Law 97 in Simple Terms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Why_Energy_Source_Matters_Under_LL97\" >Why Energy Source Matters Under LL97<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Gas_Buildings_Higher_Emissions_Higher_Risk\" >Gas Buildings: Higher Emissions, Higher Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Why_Gas_Buildings_Pay_More\" >Why Gas Buildings Pay More<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Real-World_Example\" >Real-World Example<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Electric_Buildings_Lower_Emissions_Better_Position\" >Electric Buildings: Lower Emissions, Better Position<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Why_Electric_Buildings_Pay_Less\" >Why Electric Buildings Pay Less<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#The_Cost_Comparison_Gas_vs_Electric\" >The Cost Comparison: Gas vs Electric<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Upfront_Costs\" >Upfront Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Operating_Costs\" >Operating Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Compliance_Costs\" >Compliance Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Long-Term_Financial_Impact\" >Long-Term Financial Impact<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Key_Factors_That_Influence_Costs\" >Key Factors That Influence Costs<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#1_Building_Type\" >1. Building Type<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#2_System_Efficiency\" >2. System Efficiency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#3_Energy_Usage_Behavior\" >3. Energy Usage Behavior<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#4_Retrofit_Readiness\" >4. Retrofit Readiness<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Electrification_The_Growing_Trend\" >Electrification: The Growing Trend<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#What_Electrification_Means\" >What Electrification Means<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Benefits_of_Electrification\" >Benefits of Electrification<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Challenges_Building_Owners_Should_Expect\" >Challenges Building Owners Should Expect<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#1_High_Initial_Investment\" >1. High Initial Investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#2_Infrastructure_Limitations\" >2. Infrastructure Limitations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#3_Planning_and_Permits\" >3. Planning and Permits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#4_Tenant_Disruption\" >4. Tenant Disruption<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#How_to_Reduce_Costs_Under_Local_Law_97\" >How to Reduce Costs Under Local Law 97<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#1_Conduct_an_Energy_Audit\" >1. Conduct an Energy Audit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#2_Upgrade_to_High-Efficiency_Systems\" >2. Upgrade to High-Efficiency Systems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#3_Consider_Partial_Electrification\" >3. Consider Partial Electrification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#4_Improve_Building_Envelope\" >4. Improve Building Envelope<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#5_Use_Renewable_Energy\" >5. Use Renewable Energy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#What_Happens_If_You_Do_Nothing\" >What Happens If You Do Nothing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#The_Big_Takeaway_Who_Pays_More\" >The Big Takeaway: Who Pays More?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/thecotocongroup.com\/blog\/gas-vs-electric-buildings-nyc\/#Final_Thoughts_for_Building_Owners\" >Final Thoughts for Building Owners<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Gas_vs_Electric_Buildings_Under_Local_Law_97_%E2%80%93_Who_Pays_More\"><\/span><b>Gas vs Electric Buildings Under Local Law 97 \u2013 Who Pays More?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">New York City\u2019s Local Law 97 (LL97) is changing how buildings operate, spend, and plan for the future. For building owners, one big question keeps coming up: Do gas-powered buildings pay more than electric ones under Local Law 97?<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The short answer is yes\u2014most of the time. But the real answer depends on how your building uses energy, how efficient your systems are, and how prepared you are for compliance.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In this guide, we\u2019ll break down the cost differences, explain why gas buildings are often at a disadvantage, and show what building owners can do to reduce penalties and operating costs.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Understanding_Local_Law_97_in_Simple_Terms\"><\/span><b>Understanding Local Law 97 in Simple Terms<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Local Law 97 is part of New York City\u2019s Climate Mobilization Act. Its goal is clear: reduce greenhouse gas emissions from large buildings.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Buildings over 25,000 square feet must meet strict carbon emission limits starting in 2024. These limits get tighter in 2030 and beyond.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If a building exceeds its emission cap, it faces financial penalties of $268 per metric ton of CO\u2082 over the limit.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">That means your energy source\u2014gas or electricity\u2014directly affects how much you pay.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Why_Energy_Source_Matters_Under_LL97\"><\/span><b>Why Energy Source Matters Under LL97<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Not all energy is treated equally under <\/span><a href=\"https:\/\/www.thecotocongroup.com\/nyc-local-law-97.html\"><span style=\"font-weight: 400;\">Local Law 97<\/span><\/a><span style=\"font-weight: 400;\">. Each fuel type has a carbon intensity factor, which determines how much emissions are attributed to its use.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Here\u2019s the key difference:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Natural gas produces direct on-site emissions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electricity produces indirect emissions, which are calculated differently<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Because of this, gas-powered systems often result in higher reported emissions compared to electric systems.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Gas_Buildings_Higher_Emissions_Higher_Risk\"><\/span><b>Gas Buildings: Higher Emissions, Higher Risk<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Buildings that rely on natural gas for heating, hot water, or cooking are at a clear disadvantage under LL97.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Why_Gas_Buildings_Pay_More\"><\/span><b>Why Gas Buildings Pay More<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ol style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Direct Carbon Emissions<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Gas combustion releases carbon dioxide directly inside the building\u2019s energy profile. This makes emissions harder to offset.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stricter Compliance Pressure<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Gas-heavy buildings are more likely to exceed emission limits, especially after 2030 when caps become stricter.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Limited Efficiency Gains<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Even with upgrades, gas systems have a ceiling on how efficient they can become compared to electric alternatives.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Penalty Exposure<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> If no major upgrades are made, gas buildings can face significant recurring fines every year.<\/span><\/li>\n<\/ol>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Real-World_Example\"><\/span><b>Real-World Example<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A typical NYC multifamily building using gas boilers may exceed its emission cap by a wide margin. Without retrofits, this could result in tens of thousands of dollars in annual penalties.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Electric_Buildings_Lower_Emissions_Better_Position\"><\/span><b>Electric Buildings: Lower Emissions, Better Position<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Electric buildings are generally in a stronger position under Local Law 97.<\/span><\/p>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Why_Electric_Buildings_Pay_Less\"><\/span><b>Why Electric Buildings Pay Less<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ol style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cleaner Energy Mix<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> NYC\u2019s electric grid is gradually shifting toward renewable energy. This reduces the carbon intensity of electricity over time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>No On-Site Combustion<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Electric systems don\u2019t burn fuel on-site, which lowers direct emissions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Future-Proof Strategy<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Electrification aligns with long-term climate goals, making compliance easier in future phases of LL97.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Incentives and Rebates<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Building owners switching to electric systems may qualify for financial incentives and tax benefits.<\/span><\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><b>Also Read: <\/b><a href=\"https:\/\/thecotocongroup.com\/blog\/chiller-plant-optimization-nyc-buildings\/\"><span style=\"font-weight: 400;\">Chiller Plant Optimization for Large NYC Buildings<\/span><\/a><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"The_Cost_Comparison_Gas_vs_Electric\"><\/span><b>The Cost Comparison: Gas vs Electric<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Let\u2019s look at how costs stack up.<\/span><\/p>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Upfront_Costs\"><\/span><b>Upfront Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gas systems: Lower initial installation cost<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electric systems: Higher upfront investment, especially for retrofits<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Operating_Costs\"><\/span><b>Operating Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gas: Traditionally cheaper, but prices are volatile<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electric: More stable, especially with energy-efficient systems<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Compliance_Costs\"><\/span><b>Compliance Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gas: Higher risk of penalties under LL97<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electric: Lower emissions mean fewer or no penalties<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Long-Term_Financial_Impact\"><\/span><b>Long-Term Financial Impact<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">When you factor in penalties, maintenance, and future upgrades, electric buildings often come out ahead financially.<\/span><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Key_Factors_That_Influence_Costs\"><\/span><b>Key Factors That Influence Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Not all buildings are the same. Several factors determine whether a gas or electric building pays more under LL97.<\/span><\/p>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"1_Building_Type\"><\/span><b>1. Building Type<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Residential vs commercial buildings have different emission limits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Usage patterns impact energy consumption<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"2_System_Efficiency\"><\/span><b>2. System Efficiency<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Older gas boilers are less efficient<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Modern electric heat pumps can significantly reduce energy use<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"3_Energy_Usage_Behavior\"><\/span><b>3. Energy Usage Behavior<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tenant behavior affects overall energy consumption<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Smart energy management systems can help reduce waste<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"4_Retrofit_Readiness\"><\/span><b>4. Retrofit Readiness<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Buildings already upgraded with efficient systems are better positioned<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delayed action increases future costs<\/span><\/li>\n<\/ul>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Electrification_The_Growing_Trend\"><\/span><b>Electrification: The Growing Trend<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Electrification is becoming the preferred strategy for LL97 compliance.<\/span><\/p>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"What_Electrification_Means\"><\/span><b>What Electrification Means<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It involves replacing gas-based systems with electric alternatives such as:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Heat pumps for heating and cooling<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electric water heaters<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Induction cooking systems<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Benefits_of_Electrification\"><\/span><b>Benefits of Electrification<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lower carbon emissions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduced risk of penalties<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improved indoor air quality<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Alignment with NYC climate policies<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, electrification requires careful planning. Not all buildings can switch overnight.<\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Challenges_Building_Owners_Should_Expect\"><\/span><b>Challenges Building Owners Should Expect<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">While electric buildings have advantages, transitioning from gas is not always easy.<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"1_High_Initial_Investment\"><\/span><b>1. High Initial Investment<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">Upgrading systems can be expensive, especially for older buildings.<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"2_Infrastructure_Limitations\"><\/span><b>2. Infrastructure Limitations<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">Some buildings may need electrical upgrades to handle increased load.<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"3_Planning_and_Permits\"><\/span><b>3. Planning and Permits<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">Retrofits require design, approvals, and coordination, which takes time.<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"4_Tenant_Disruption\"><\/span><b>4. Tenant Disruption<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">Construction work may temporarily affect occupants.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite these challenges, delaying action often leads to higher long-term costs.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"How_to_Reduce_Costs_Under_Local_Law_97\"><\/span><b>How to Reduce Costs Under Local Law 97<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Whether your building uses gas or electricity, there are ways to stay compliant and reduce expenses.<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"1_Conduct_an_Energy_Audit\"><\/span><b>1. Conduct an Energy Audit<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">An energy audit helps identify inefficiencies and opportunities for improvement.<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"2_Upgrade_to_High-Efficiency_Systems\"><\/span><b>2. Upgrade to High-Efficiency Systems<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Replace old boilers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Install energy-efficient HVAC systems<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use smart controls<\/span><\/li>\n<\/ul>\n<h5><span class=\"ez-toc-section\" id=\"3_Consider_Partial_Electrification\"><\/span><b>3. Consider Partial Electrification<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">You don\u2019t have to switch everything at once. Start with:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Domestic hot water systems<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cooling systems<\/span><\/li>\n<\/ul>\n<h5><span class=\"ez-toc-section\" id=\"4_Improve_Building_Envelope\"><\/span><strong>4. Improve Building Envelope<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Better insulation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High-performance windows<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Air sealing<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These upgrades reduce overall energy demand.<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"5_Use_Renewable_Energy\"><\/span><b>5. Use Renewable Energy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">Solar panels and clean energy credits can offset emissions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"What_Happens_If_You_Do_Nothing\"><\/span><b>What Happens If You Do Nothing?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Ignoring Local Law 97 is not an option.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your building exceeds emission limits:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You will face annual penalties<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Costs will increase as limits tighten in 2030<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Property value may decrease<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compliance pressure will grow<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In many cases, doing nothing becomes more expensive than upgrading.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_Big_Takeaway_Who_Pays_More\"><\/span><b>The Big Takeaway: Who Pays More?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">So, who pays more under Local Law 97\u2014gas or electric buildings?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Gas buildings typically pay more, especially in the long run.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They face:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher emissions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Greater penalty risk<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">More expensive compliance upgrades<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Electric buildings, on the other hand, are better aligned with NYC\u2019s climate goals and often benefit from lower compliance costs.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Final_Thoughts_for_Building_Owners\"><\/span><b>Final Thoughts for Building Owners<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Local Law 97 is not just a regulation\u2014it\u2019s a shift in how buildings operate in New York City.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your building relies heavily on gas, now is the time to plan. Waiting will only increase costs and risks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The smartest approach is to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Understand your building\u2019s emissions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Explore electrification options<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Invest in energy efficiency upgrades<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Work with compliance experts<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By taking action early, you can reduce costs, avoid penalties, and position your building for long-term success.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text] Gas vs Electric Buildings Under Local Law 97 \u2013 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5970,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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href=\"https:\/\/thecotocongroup.com\/blog\/category\/nyc-local-law-97\/\" rel=\"category tag\">NYC Local Law 97<\/a>","rttpg_excerpt":"[vc_row][vc_column][vc_column_text] Gas vs Electric Buildings Under Local Law 97 \u2013 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