Managing your Local Law 97 compliance can feel complex. Our FAQ guide covers questions we hear from building owners about annual filing requirements, compliance planning, and avoiding penalties:

 

1. What is NYC’s Local Law 97 (LL97)?
Local Law 97 is New York City’s building emissions law that sets annual greenhouse gas emissions limits for large buildings. The law requires owners to track, report, and reduce emissions over time.

2. Who has to comply with Local Law 97?
Buildings 25,000+ square feet must comply, including many multifamily, commercial, and mixed-use properties. Some buildings may be exempt or have special rules. Check the LL97 Covered Buildings List to learn more.

3. Is Local Law 97 the same as benchmarking?
No. NYC’s Local Law 84 (LL84) requires reporting annual energy usage, while Local Law 97 requires submitting an annual emissions report and also meeting the carbon emissions limits set by the law. Benchmarking helps you understand your energy usage, but LL97 determines whether your building is under its emissions cap – and whether you face penalties for exceeding it.

4. What do I need to file for Local Law 97?
Owners must file an annual emissions report for each covered building, including building information, gross floor area (GFA), energy use, and calculated emissions. The annual report is generally due June 30th, with the option to pay extra to submit at the end of August (for the prior calendar year), unless the City announces additional extensions.

5. Why is the gross floor area (GFA) important for LL97?
Because emissions limits are calculated using a building’s gross floor area and space types, accurate GFA measurements are critical to understanding your emissions limit and avoiding reporting errors.

6. How do I submit the LL97 report?
The annual LL97 report must be certified by a Registered Design Professional (RDP), such as Bright Power. As an RDP, Bright Power stamps and submits filings to ensure compliance. The filing is submitted through the DOB’s BEAM Portal.

7. What happens if I miss the filing deadline?
Missing the deadline can trigger late filing penalties of $0.50 per square foot per month, even if your building is under the emissions limit. Get started right away to prevent further penalties.

8. My building is under the emissions limit – do I need to do anything?
Yes. Compliance still requires filing. Being under the limit doesn’t remove the annual reporting obligation. Even if you don’t exceed limits in the first compliance cycle, limits step down over time, and most buildings will exceed their limits starting in 2030. Taking steps to reduce emissions now can help your building stay in compliance.

9. What changes in 2030?
Beginning in 2030, NYC will enforce stricter carbon emissions limits, and buildings that exceed them will face significant annual fines that can quickly add up to hundreds of thousands of dollars. Total fines in 2030 are estimated to reach $900 million unless retrofit work is completed. The challenge? The major upgrades that are needed to meet the 2030 carbon caps, such as electrification, controls, and envelope improvements, take time to plan, fund, and implement. Funding is limited, and thousands of properties will be working on a similar timeline to comply. Don’t wait! Consulting with an energy engineer is the best way to get started.

10. Do I have to electrify my whole property immediately?
No. Most buildings will not need to pursue full electrification of their buildings immediately. Many will be able to comply with the 2030 limits by implementing energy efficiency measures without electrification. But the emissions limits for every property will vary, and it’s critical to engage an experienced service provider to conduct a thorough energy audit and electrification feasibility study to determine the ideal schedule of upgrades now through 2050 to identify the optimal phasing of decarbonization for your properties.

11. My building received an LL97 Notice of Deficiency. What should I do?
A Notice of Deficiency is an alert about a building’s failure to comply with the annual emissions limit, and it requires immediate action. If your property has received an LL97 Notice of Deficiency, we recommend working with a qualified energy solutions provider to create a compliance plan for your property.

12. Help! I’m facing fines. What are my options?
LL97 offers numerous avenues to request penalty mitigation; however, fines will only increase over time as the emissions limits drop to zero in 2050. Now is the time for properties with 2025 fines to make plans to implement energy efficiency and electrification upgrades to mitigate fines not only in the short term, but in the long term as well. A qualified service provider can help you assess which upgrades make the most sense for your properties, accounting for critical factors like remaining equipment life, refinancing cycles, incentive program availability, existing electrical capacity, hybrid and partial electrification applicability, phasing strategies, and more.

Properties should also consider applying for penalty mitigation from the DOB, and there are several options to consider, including but not limited to:

Good Faith Efforts (GFE)
Bright Power offers support for Good Faith Efforts, which can help get more time to comply and/or reduce fines. Contact our team to learn more about the different types of GFEs. We offer GFE services for eligible retrofit or electrical upgrade projects underway, and also for Decarbonization Plans.

AHRF Offsets
NYC’s Affordable Housing Reinvestment Fund (AHRF) Offsets Program lets building owners purchase verified greenhouse gas (GHG) offsets to help meet LL 97 emissions limit – up to 10% of a building’s annual cap. The money from these offsets funds improvements in affordable housing across the city, while offering owners flexible compliance that does not rely on fines.

More Options
There are numerous additional strategies that Bright Power can explore for properties facing fines, including GFA measurements, offsite solar/storage subscriptions, adjustments, and more.

To discuss fine reduction strategies for your property, schedule a call with our experts.

 

Do you have a Local Law 97 question that’s not covered here? Let us know!