For many buildings, emissions reporting is a critical step for LL97 compliance. And now with the latest guidance update from the city, it’s time to secure your Registered Design Professional (RDP) to file your annual reporting.
The DOB requires properties to hire their RDP prior to February 1, 2025 to access certain extensions- so now is the time to act! With over 26,000 buildings reporting on the Standard Pathway next year, it’s critical to secure your preferred service provider as soon as possible.
Who needs to pay attention to these updates?
Not every pathway requires emissions reporting. Properties complying with Prescriptive Pathway and installing prescriptive energy conservation measures (PECMs) will not require emissions reporting, but properties on every other pathway do. So that means Standard Pathway, 2026 Pathway, 2035 Pathway, and Prescriptive Pathway Performance Option properties all require emissions reporting.
Not sure which pathway applies to you? Reach out to your Bright Power Account Manager or email us for more information.
Our energy experts provide services specifically designed to satisfy the annual emissions reporting requirements for building owners subject to LL97. Services include:
- Emissions reporting by a certified RDP as required under the law
- Special assistance for properties facing fines from 2024-2029
- Custom LL97 support, and more!
What if I ignore this?
We know that building owners have faced numerous challenges in recent years, from rising insurance costs to continued occupancy challenges, but don’t ignore your LL97 compliance requirements! Properties that don’t report their emissions before the deadline will face penalties of $0.50 per square foot for failing to file anything, plus fines at $268 per ton of emissions over your limit.
For a 100,000 square foot building: this means fines of $50,000 per month and over $600,000 annually simply for not submitting a report! Even if your building is not in compliance with its emissions limit, filing a report will still significantly reduce your fine exposure – reach out to Bright Power today to talk about our emissions reporting services.
What’s in the new guidance?
REPORTING
The law requires properties to hire a Registered Design Professional (RDP), such as Bright Power, to submit the emissions reports to DOB. The reports will include the building’s annual energy use, applicable space usage types within the building, the Gross Floor Area (GFA) for square footage, and more. For most properties, the reports will be submitted annually, except for Prescriptive Pathway properties using the Performance Option (one-time report).
Every individual building will be required to submit its own LL97 report, except for limited cases where they are eligible for combined reporting. Unlike LL84 benchmarking and LL87 audit requirements that use tax lots (BBLs), LL97 will use BINs instead.
Some buildings will be able to submit combined reports. These buildings must*:
- Be on the same pathway, AND
- Have the same owner, AND
- Be on the same tax lot or an adjacent lot.
*With additional benefits for buildings that also share energy service
SPACE USE TYPES
The city assigns different emissions factors for different space use types. Some space use types have more lenient carbon emissions factors to account for differences in the ways that buildings consume energy.
In the guidance update, DOB clarified that there are cases where RDPs can modify space use types from what’s included in the LL84 benchmarking. For example, making changes is allowed in cases where a space within a building has a “distinct energy use pattern”, like a restaurant within a retail mall. Reach out to your Bright Power Account Manager for more information about making changes to your space use types.
VERIFYING SQUARE FOOTAGE
LL97 emissions and fines calculations use square footage to determine the building’s emissions limit. However, the square footage metric used for this calculation is different than the square footage on file with the Department of Finance.
Properties should check for recent plans or drawings so that their RDP can review the correct square footage. For properties without these documents, we strongly encourage properties to undergo a measurement. Not sure how to verify your square footage for Local Law 97? Reach out to your Bright Power Account Manager for more information.
COVERED BUILDINGS LIST (CBL)
The DOB currently plans to use the Covered Buildings List (CBL) by pathway as the default for determining pathways in year one of reporting. You can still make changes to the CBL list by sending DOB certain documentation. Reach out to your Bright Power Account Manager for more information about what this change means for your properties.
FILING FEES
In DOB’s latest draft rulemaking, they unveiled proposed filing fees for the different types of LL97 reporting. The proposed filing fees are still in draft form and are subject to change:
- Emissions Reporting: Simple Report – $210
- Emissions Reporting: Complex Report – $615
- Emissions Reporting: Good Faith Efforts – $950
- Standard Pathway Adjustment Applications: External Constraints and Financial Constraints – $300 to $3,540
- Local Law 88 Filing – $115
NEW OFFSET OPTION FOR STANDARD PATHWAY PROPERTIES FACING FINES IN 2025
The DOB created an interesting new offset option for properties on Standard Pathway facing fines in 2025-2029. The offset program, also called the GreenHOUSE Affordable Housing Reinvestment Offset Fund (AHRF), offers credits to properties facing fines, and the revenue will help boost the budget for HPD’s new REDI Program.
The credits will be capped at 10% of the property’s annual emissions limit and priced at $268/ton, so while it wouldn’t be cheaper than paying fines, it does potentially allow certain owners to get into compliance with the law even if their emissions are technically above their limit.
EXTENSIONS
For properties that won’t be ready to comply by May 1st, there are two types of short-term extensions that all properties will have access to:
There are also numerous types of longer-term extensions that we are happy to discuss upon request.
WHAT GUIDANCE ARE WE STILL WAITING FOR?
There is still some guidance under development by DOB including but not limited to:
- Filing guidance for solar and energy storage
- More detail on longer- term extensions for all pathways
- Additional rules for Renewable Energy Credit (REC) purchases
- Info about the new BEAM portal for reporting
HOW CAN BRIGHT POWER HELP ME COMPLY?
Earlier this month, Bright Power launched new services specifically designed to satisfy the annual emissions reporting requirements for building owners subject to LL97. When selecting a service provider, make sure they can provide an array of LL97 support, including:
- Emissions reporting by a certified RDP as required under the law
- Special assistance for properties facing fines from 2024-2029
- Custom LL97 support, and more!
It’s critical to secure your Local Law 97 service provider as soon as possible.
Not sure how to get started? Reach out to your Bright Power account manager for assistance or email us to get connected to our customer success team.