What NYC Property Owners Should Know About Local Law 97

1. What NYC Property Owners Should Know About Local Law 97 As New York City continues to grapple with the pressing challenges of climate change and environmental sustainability, local legislation has emerged to address these issues directly. Among the most significant pieces of legislation islocal law 97 in nyc, part of the Climate Mobilization Act, which aims to drastically reduce greenhouse gas emissions from buildings across the city. For property owners, understanding the implications of this law is crucial, not only for compliance but also for long-term financial planning and sustainability efforts. This article delves into what NYC property owners need to know about Local Law 97, its requirements, and its impact on the real estate landscape. Local Law 97, enacted in 2019, mandates that buildings over 25,000 square feet reduce their greenhouse gas emissions based on specific targets set for different building types. The law is a critical component of New York City’s broader goal to reduce greenhouse gas emissions by 40% by 2025 and 80% by 2050, compared to 2005 levels. This ambitious legislation reflects the city’s commitment to combating climate change and sets a precedent for other urban centers worldwide. The law categorizes buildings into three groups based on their occupancy type, with each category having its own emission limits. These limits will become increasingly stringent over time, creating a clear 1/4

2. timeline for property owners to make necessary improvements. Who is Affected by Local Law 97? Local Law 97 applies to a wide range of properties, including residential, commercial, and mixed-use buildings. Specifically, any building that exceeds 25,000 square feet is subject to the emissions limits outlined in the law. This means that a significant number of properties in New York City, including large apartment complexes, office buildings, and industrial facilities, must take action to comply with these regulations. Additionally, multiple buildings owned by the same entity that together exceed the 25,000 square feet threshold are also included under this law. This broad scope underscores the importance for property owners, landlords, and real estate developers to prioritize sustainability initiatives in their operations. Emission Limits and Compliance Deadlines Under Local Law 97, buildings are required to meet specific greenhouse gas emissions limits based on their occupancy type. The law sets initial limits for 2024, which will be further reduced by 2030. The emission limits are calculated based on the building’s square footage and occupancy type, leading to a tiered approach that reflects the varying energy needs and emissions profiles of different buildings. For example, office buildings and commercial spaces have different requirements compared to residential buildings. This differentiation allows for a more nuanced approach to emissions reduction, acknowledging that not all buildings can achieve the same targets without significant investment and changes in operations. Property owners should take note of the compliance deadlines, as failing to meet the established limits will result in fines. The penalties for non-compliance can be substantial, making it imperative for property owners to plan ahead and implement the necessary changes well before the deadlines. Strategies for Compliance To comply with Local Law 97, property owners will need to adopt a variety of strategies aimed at reducing greenhouse gas emissions. Here are some key approaches that can facilitate compliance: 1. Conducting Energy Audits The first step toward compliance is understanding current energy usage and emissions. Conducting a comprehensive energy audit can help property owners identify inefficiencies in their buildings. This audit should assess all major systems, including heating, cooling, lighting, and insulation. Energy consultants can provide valuable insights into areas where improvements can be made. These audits not only highlight inefficiencies but also lay the groundwork for targeted upgrades that align with Local Law 97 requirements. 2. Upgrading Building Systems 2/4

3. One of the most effective ways to reduce emissions is to upgrade outdated building systems. This may include replacing old HVAC systems with energy-efficient models, upgrading insulation, and installing energy-efficient windows. Such improvements can significantly reduce energy consumption and greenhouse gas emissions. Additionally, property owners should consider investing in smart building technologies that optimize energy use. Smart thermostats, advanced lighting controls, and energy management systems can help monitor and adjust energy consumption in real-time. 3. Incorporating Renewable Energy Integrating renewable energy sources, such as solar panels or wind turbines, can play a vital role in achieving compliance with Local Law 97. By generating clean energy on-site, property owners can offset their emissions and reduce reliance on fossil fuels. New York City also offers various incentives and financing options for renewable energy projects, making this a viable option for many property owners looking to meet their emissions targets. 4. Engaging Tenants and Stakeholders Engaging tenants and stakeholders in sustainability initiatives is essential for fostering a culture of energy efficiency. Property owners can implement programs that encourage tenants to adopt energy-saving practices, such as turning off lights when not in use or using energy-efficient appliances. Involving tenants in sustainability efforts not only enhances compliance with Local Law 97 but also creates a sense of community and shared responsibility for reducing emissions. Financial Implications of Compliance While complying with Local Law 97 may require significant upfront investment, the long-term financial benefits can be substantial. Energy-efficient upgrades often lead to reduced utility bills, increasing overall profitability for property owners. Moreover, buildings that prioritize sustainability tend to attract environmentally conscious tenants, which can enhance occupancy rates and rental income. Additionally, many financial incentives and grants are available to assist property owners in making energy-efficient upgrades. Understanding these options can help mitigate the financial burden of compliance and lead to a more sustainable business model. The Role of Local Law 97 in Promoting Sustainability Local Law 97 is not only a regulatory framework but also a catalyst for promoting sustainability in New York City. By setting clear emissions targets and deadlines, the law encourages property owners to take proactive measures in reducing their environmental impact. This shift towards sustainability has broader implications, contributing to cleaner air, reduced greenhouse gas emissions, and a healthier urban environment. As businesses and organizations embrace sustainability, they also position themselves as leaders in the fight against climate change. This commitment to environmental responsibility can enhance brand 3/4

4. reputation and attract customers who prioritize eco-friendly practices. Resources for Property Owners Property owners navigating the complexities of Local Law 97 can find a wealth of resources available to assist them. The New York City Department of Environmental Protection (DEP) and the New York State Energy Research and Development Authority (NYSERDA) provide guidance, tools, and incentives for compliance. Additionally, various professional organizations and energy consultants specialize in helping property owners implement strategies to meet the law’s requirements. Engaging with these resources can provide valuable support and streamline the compliance process. Conclusion In conclusion, Local Law 97 represents a significant step toward achieving sustainability in New York City by setting ambitious greenhouse gas emissions reduction targets. For property owners, understanding the implications of this law is crucial for compliance and long-term success. By conducting energy audits, upgrading building systems, incorporating renewable energy, and engaging tenants, property owners can not only meet the law’s requirements but also enjoy the financial benefits of sustainability. As the city moves forward with its climate agenda, property owners must be proactive in adapting to these changes. By embracing Local Law 97, they can contribute to a greener, healthier urban environment while enhancing their property values and attracting environmentally conscious tenants. For property owners seeking guidance on navigating Local Law 97 and implementing effective sustainability strategies, National Energy Cost Services, Inc. (NECS) is ready to assist. Contact us today to explore how we can support your compliance efforts and help you achieve your sustainability goals! 4/4