NYC’s Local Law 97: What You Need to Know
Learning & Preparing Early is Key
NYC's Local Law 97 requires large buildings to make significant reductions in their emissions by 2030. The law applies to all buildings over 25,000 square feet, and its goal is to help New York City meet its climate goals by reducing greenhouse gas emissions by 80% by 2050. The law is expected to cost all NYC building operators, including coops and condos billions and billions. Here's what you need to know.
1. What is Local Law 97 and what does it require coop and condo boards to do?
Local Law 97, also known as the Climate Mobilization Act, was passed by the New York City Council in 2019 in an effort to reduce greenhouse gas emissions throughout the city. While Local Law 97 may seem like a burden for coop and condo owners, boards, and property managers, there are actually many benefits to making your building more energy-efficient. Not only will you be helping the environment, but you will also save money on your own as well as the coop or condo's energy bills.
2. Which buildings are affected by this law
The law requires all buildings over 25,000 square feet to make energy efficiency upgrades in order to meet specific emissions targets by 2024 and 2030. As it stands now, it is estimated that 20% of New York City buildings will face fines based on their 2024 energy consumption. In 2030, this number will increase to 80%, and the fines for not greatly reducing the use of fossil fuels are astronomical. We have seen Local Law 97 fines in the hundreds of thousands, annually.
3. How can my coop or condo make energy efficiency improvements?
There are many ways to make your building more energy-efficient, and the best place to start is by reviewing the energy audit, the Local Law 87 report, which has been prepared by a qualified energy engineer or consultant. Coop and condo boards can request this report from their property manager, who has this at their fingertips. The Local Law 87 report, also referred to as the retrofit report, will identify which areas of your building are using the most energy and where improvements can be made, although we have yet to see a report that has recommendations on how to reduce the energy use inside the apartments. Since residents use more than half of the energy used in buildings, getting them on board is crucial to meet the Local Law 97 mandates.
4. What are the ramifications of not reducing energy use and increasing energy efficiency?
The fines for not reducing your building's energy usage are quite severe. If your building does not meet the Local Law 97 targets by 2024, you will be fined $268 for each metric ton of carbon dioxide (CO2) emitted over the allowable limit. This fine increases to $583 per metric ton of CO2 in 2030. For reference, buildings typically emit several hundred tons of CO2.
There is also a fine of 50 cents per square foot, per month, for buildings that don’t file, and a flat $500,000 fine for providing false statements.
Local Law 97 is an important part of New York City's effort to reduce greenhouse gas emissions. Property owners and their property managers should make sure that they are aware of the law and its requirements, and take steps to ensure that their buildings are in compliance. Failure to do so could result in significant fines that could be detrimental to property values.
The Folson Group are energy efficiency consultants who optimize ways to reduce the amount of energy the building is using, making your building greener and more sustainable. From planning to execution and completion, their customers have reduced the cost of energy by up to 40% on the cost of their projects. Email us at info@thefolsongroup.com or call us at (917) 648-8151 to find out more.