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Author | Elvira Esparza
New York City has succeeded in reducing greenhouse gas emissions. Approximately 95% of large privately owned buildings have met the emissions limits established under Local Law 97, which is part of the city’s efforts to achieve carbon neutrality by 2050.
According to the Department of Buildings (DOB), approximately 95% of the 20,000 privately owned properties subject to Local Law 97 submitted reports on their compliance with the emissions targets set for 2024, the first year the law took effect. Most of these properties made building upgrades and implemented energy efficiency measures, including improvements to lighting and building envelopes, the installation of heat pumps, and the adoption of energy management systems to meet the emissions limits.
Office buildings achieved a reporting rate of 96%, with 95% meeting the emissions limits. For other types of properties, such as hotels and schools, the reporting rate exceeded 90%, while 92% met their emissions targets.
What is Local Law 97 in New York City?
Local Law 97 of 2019 is a building emissions law that forms part of the Climate Mobilization Act. It requires large buildings in New York City to comply with new emissions limits starting in 2025, as part of the city’s efforts to achieve carbon neutrality by 2050. The law aims to achieve a 40% reduction in emissions from all buildings covered by the law by 2030 and net-zero emissions by 2050, compared with 2005 levels.
Which buildings must comply with Local Law 97?
The law requires buildings larger than 25,000 square feet (2,320 square meters) to comply with greenhouse gas emissions limits. Article 320 covers most large commercial, residential, and institutional buildings, while Article 321 applies to affordable housing and places of worship, which are subject to different limits. In total, approximately 29,000 properties were required to submit reports in the first year, but 7% failed to do so on time.
Nearly half of the properties subject to Article 320 are located in Manhattan, which recorded the highest reporting rate at 98%. It also achieved a very high emissions compliance rate of 95%. In Brooklyn, Queens, and the Bronx, reporting rates ranged from 92% to 93%. Staten Island had the lowest reporting rate at 84%, although it also has the fewest properties subject to Article 320.
What happens if a building fails to comply with the law?
Buildings subject to the law may face penalties if they exceed their annual emissions limits. These limits vary by building type and become stricter each year. The penalty for exceeding a building’s assigned emissions limit is $268 per metric ton of excess emissions per year.
The penalty is calculated based on the building’s annual energy consumption for each fuel type and the emissions associated with each fuel, compared with the building’s applicable emissions limit. In other words, emissions are calculated by multiplying the building’s annual energy consumption for each fuel type by its assigned carbon emissions factor. The resulting emissions are then compared with the limit established for that building, which varies by building type. The difference between actual emissions and the permitted limit is multiplied by $268 to determine the annual penalty.
The law also provides for penalties for buildings that fail to submit their annual emissions reports by the required deadline. Submitting false information in a report can result in a fine of $500,000 (€447,500).
Despite the successful implementation of Local Law 97, 7% of property owners failed to meet the emissions compliance deadline. The Department of Buildings is imposing fines on those who failed to comply, although approximately 32% of those who exceeded their emissions limits have requested a reduction in their penalties. More than two-thirds opted to implement decarbonization plans, while fewer than 1% submitted poor-quality data.
Following the initial reporting period, buildings are required to submit annual reports to track their progress. By 2030, when the emissions reduction target reaches 40%, annual penalties for noncompliance are expected to exceed $900 million (€805 million), as 57% of buildings currently exceed that limit, according to the Urban Green Council.
Are there alternative ways for buildings to meet emissions limits?
Yes. In addition to making building improvements to meet the targets established under Local Law 97, property owners can also demonstrate compliance with the law by purchasing offset certificates through the city’s Affordable Housing Reinvestment Fund. This fund has raised approximately $1.7 million (€1.52 million) to support decarbonization projects in affordable housing properties throughout New York City.
Approximately 70 properties used offsets from this fund, while 31 properties used solar energy, 10 opted for combined heat and power systems, and 6 used electrification credits, which reward building owners who replace fossil fuel-based heating and cooling systems with high-efficiency electric equipment.
What other measures has New York City taken to reduce emissions?
New York City has implemented other initiatives targeting buildings, which account for two-thirds of the city’s greenhouse gas emissions.
The city has relaunched NYC Accelerator, a free service that helps building owners plan, finance, and implement decarbonization projects to accelerate compliance with Local Law 97. This service has assisted 700 properties, including 448 that now use the online Momentum tool for compliance calculations, project scoping, and project management.
In city-owned buildings, more than 17,800 energy-saving measures have been implemented across 2,500 facilities, reducing carbon dioxide emissions by 460,000 metric tons. Approximately 36 megawatts (MW) of solar power capacity have been installed across 222 facilities, including 29 MW in 138 schools. In city-owned affordable housing, the New York City Housing Authority (NYCHA) aims to install clean electric heating and cooling systems in 20,000 apartments over the next five years.
Images | Afif Ramdhasuma, Massimiliano Morosinotto, carstenbrandt/iStock
