Local Law 97 Updates: How the Latest Proposals Impact NYC’s Sustainability Landscape

Local Law 97 (LL97) holds significant implications for energy and sustainability reporting in the built environment within New York City. On September 12th, the NYC Department of Buildings (DOB) released a set of proposed rules concerning the implementation of LL97.

As a quick recap, LL97, enacted in 2019, is aimed at reducing greenhouse gas (GHG) emissions from the city’s largest buildings (25,000 gross square feet or more). Building owners are required to report their emissions for 2024 by May 1st, 2025.

Here’s a concise summary of the key points covered in the proposed rules:

Penalty reduction for “good faith efforts” – Building owners could get a two-year break on Local Law 97 penalties if they demonstrate ‘good faith’ effort to decarbonize. The proposed rules would not allow the purchase of RECs for buildings choosing the decarbonization plan pathway as part of good faith efforts.

Credits for “Beneficial Electrification” – Buildings that undertake beneficial electrification efforts early will receive rewards. “Beneficial electrification” means the installation and use of energy efficient electric-based heating, cooling, and domestic hot water systems to displace the use of fossil fuel sources (e.g., fuel oil, natural gas, district steam) and/or less efficient electric-based heating systems. The proposal also includes definitions and calculations related to emissions from qualifying equipment for beneficial electrification.

Technical Amendments – This rule includes establishing GHG coefficients and other technical aspects of compliance, such as the conversion of building occupancy types to Energy Star Portfolio Manager property types and giving building owners the information they need to calculate emissions under the law.

These changes present both challenges and opportunities for buildings. Local Law 97 is not just a compliance requirement but also an avenue for improving energy efficiency, reducing costs, and demonstrating environmental responsibility.

References

1. https://www.nyc.gov/assets/buildings/local_laws/ll88_ll97_article.pdf
2. https://climate.cityofnewyork.us/wp-content/uploads/2023/09/Getting_LL97_Done.pdf

This post was co-authored by WatchWire sustainability analysts Prerana Tirodkar and Annika Prinz.