Understanding Local Law 97: The Key to Achieving New York City’s Climate Goals

Local Law 97 Nyc, also known as the Climate Mobilization Act, is a groundbreaking legislation passed by the New York City Council in 2019. It is a critical component of the city’s ambitious plan to reduce greenhouse gas emissions by 80% by 2050. The law requires owners of buildings over 25,000 square feet to reduce their carbon emissions or face significant penalties. In this blog post, we will explore the key aspects of Local Law 97 and how building owners can comply with its requirements.

Understanding Local Law 97:

What is Local Law 97 and why was it passed?

The law requires owners of buildings over 25,000 square feet to reduce their carbon emissions or face significant penalties. This includes both commercial and residential buildings, as well as co-ops and condos. The carbon emission limits are based on the building’s occupancy class, which is determined by its use, such as residential, office, or hotel.

Local Law 97 was passed to address the significant contribution of buildings to greenhouse gas emissions in New York City. Buildings account for nearly 70% of the city’s greenhouse gas emissions, and reducing those emissions is critical to achieving the city’s climate goals. The law is part of a larger effort by the city to reduce its carbon footprint and create a more sustainable and resilient future for New Yorkers.

How does Local Law 97 fit into New York City’s climate goals?

Local Law 97 Nyc, also known as the Climate Mobilization Act, is a key component of New York City’s ambitious plan to reduce greenhouse gas emissions by 80% by 2050. The law requires owners of buildings over 25,000 square feet to reduce their carbon emissions or face significant penalties.

Buildings are a significant source of greenhouse gas emissions in New York City, accounting for nearly 70% of the city’s total emissions. By setting carbon emission limits for buildings and requiring building owners to reduce their emissions, Local Law 97 aims to significantly reduce the city’s carbon footprint and help achieve its climate goals.

Nyc Local Law 97 is part of a larger effort by the city to reduce its carbon footprint and create a more sustainable and resilient future for New Yorkers. The city has also launched several other initiatives, such as the NYC Green New Deal, which aims to transform the city’s economy to be more sustainable and equitable, and OneNYC 2050, which is a comprehensive plan to create a more resilient and sustainable city.

By working to reduce its carbon footprint and create a more sustainable future, New York City is setting an example for other cities around the world. Through initiatives like Local Law 97, the city is demonstrating that it is possible to reduce greenhouse gas emissions and combat the global climate crisis, while also creating economic opportunities and improving quality of life for residents.

Who does Local Law 97 apply to and what are the requirements?

Local Law 97 applies to owners of buildings in New York City that are over 25,000 square feet and have been assigned a specific occupancy group under the New York City Building Code. This includes both commercial and residential buildings, as well as co-ops and condos.

Under the law, building owners are required to meet carbon emissions limits that are set based on the occupancy group of their building. The carbon emissions limits will be phased in over time, with the first compliance period starting in 2024. The limits become more stringent over time, with the final limits set to take effect in 2030.

Building owners have several options for meeting the carbon emissions limits under Local Law 97. They can implement energy-efficient measures such as upgrading lighting systems, improving insulation, and installing high-efficiency boilers. They can also install renewable energy systems such as solar panels, or participate in a carbon offset program.

The compliance options available to building owners include:

• Meeting the carbon emissions limits set by Local Law 97.
• Purchasing renewable energy credits (RECs) to offset their emissions.
• Participating in a carbon offset program approved by the New York City Department of Buildings.

Complying with Local Law 97:

How can building owners reduce their carbon emissions?

Building owners can take a variety of steps to reduce their carbon emissions and comply with Local Law 97 Nyc. Some of the ways building owners can reduce their carbon emissions include:

1. Conducting an energy audit: Building owners can hire a professional energy auditor to assess the energy usage of their building and identify areas for improvement.
2. Upgrading lighting systems: Replacing traditional lighting systems with energy-efficient LED lighting can significantly reduce a building’s energy consumption.
3. Improving insulation: Adding insulation to walls, roofs, and floors can help reduce energy loss and improve a building’s energy efficiency.
4. Installing high-efficiency boilers: Replacing old, inefficient boilers with high-efficiency models can help reduce a building’s energy consumption.
5. Using renewable energy: Installing solar panels, wind turbines, or other renewable energy systems can help a building generate its own energy and reduce its reliance on fossil fuels.
6. Using energy-efficient appliances and equipment: Replacing old appliances and equipment with energy-efficient models can significantly reduce a building’s energy consumption.
7. Implementing smart building technologies: Installing smart building technologies such as automated lighting and temperature controls can help optimize energy usage and reduce waste.
8. Conducting tenant engagement and education programs: Educating tenants on energy-efficient practices and engaging them in energy-saving initiatives can help reduce a building’s energy consumption.

What are the available compliance options under Local Law 97?

Under Local Law 97, building owners have several options to comply with the carbon emissions limits set by the law. These compliance options include:

• Meeting the carbon emissions limits: Building owners can reduce their carbon emissions through energy-efficient measures such as upgrading lighting systems, improving insulation, and installing high-efficiency boilers. They can also install renewable energy systems such as solar panels, or participate in a carbon offset program.
• Purchasing renewable energy credits (RECs): Building owners can purchase RECs to offset their carbon emissions. RECs represent the environmental benefits of renewable energy and can be purchased from renewable energy producers. Building owners can use RECs to offset the carbon emissions associated with their building’s energy usage.
• Participating in a carbon offset program: Building owners can participate in a carbon offset program approved by the New York City Department of Buildings.

How can building owners finance the required retrofits?

Financing the retrofits required to comply with Local Law 97 can be a significant challenge for building owners, but there are several options available to help finance these upgrades. Some of the ways building owners can finance the required retrofits include:

1. Energy service performance contracts: Building owners can enter into an energy service performance contract (ESPC) with an energy services company (ESCO) that specializes in energy efficiency upgrades. The ESCO will finance the upgrades and guarantee that the energy savings generated by the upgrades will cover the cost of the upgrades.
2. Property Assessed Clean Energy (PACE) financing: PACE financing allows building owners to finance energy efficiency upgrades through a property tax assessment. The financing is repaid through a special assessment on the building’s property tax bill.
3. Commercial Property Assessed Clean Energy (C-PACE) financing: C-PACE financing is a specific type of PACE financing that is available for commercial and industrial properties. C-PACE financing allows building owners to finance energy efficiency upgrades through a property tax assessment.
4. Green bonds: Building owners can issue green bonds to finance energy efficiency upgrades. Green bonds are a type of bond that is specifically used to finance environmentally sustainable projects.
5. Utility incentives: Many utilities offer incentives to customers who invest in energy efficiency upgrades. These incentives can help offset the cost of the upgrades and make it easier for building owners to finance the required retrofits.
6. Federal tax credits: Building owners may be eligible for federal tax credits for certain energy efficiency upgrades. These tax credits can help offset the cost of the upgrades and make it easier for building owners to finance the required retrofits.

The Impact of Local Law 97:

What will be the impact of Local Law 97 Nyc on the real estate industry?

Local Law 97 Nyc is expect to have a significant impact on the real estate industry in New York City. The law’s carbon emissions limits will require building owners to make significant energy efficiency upgrades to their buildings, which could result in higher operating costs and increased rents for tenants.

Here are some of the potential impacts of Local Law 97 Nyc on the real estate industry:

• Higher operating costs: Building owners will need to make significant energy efficiency upgrades to their buildings to comply with the law’s carbon emissions limits. These upgrades could be costly and may result in higher operating costs for building owners.
• Increased rents: Building owners may pass on the costs of energy efficiency upgrades to tenants through increased rents. However, the actual impact on rents will depend on a variety of factors, including the type and size of the building, the location, and the level of competition in the rental market.
• New opportunities for energy efficiency and renewable energy companies: The law’s carbon emissions limits will create new opportunities for energy efficiency and renewable energy companies to provide services and products to building owners.
• Increased demand for building contractors and consultants: Building owners will need to work with contractors and consultants specializing in energy efficiency to make the necessary upgrades to their buildings. This is expect to create increased demand for these services.
• Accelerated pace of building upgrades: The law’s carbon emissions limits are expect to accelerate the pace of building upgrades in New York City. This could result in a significant reduction in the city’s carbon emissions and could help New York City meet its climate goals.

How will Local Law 97 benefit New Yorkers?

Local Law 97 is expect to benefit New Yorkers in several ways:

Improved air quality: By reducing carbon emissions from buildings, the law will help to improve air quality in New York City. This will have a positive impact on public health, particularly for vulnerable populations such as children and the elderly.

Lower energy bills: The energy efficiency upgrades required under the law will help to reduce energy consumption in buildings, which will lead to lower energy bills for tenants and building owners.

Increased property values: Buildings that comply with the law’s carbon emissions limits are likely to be more valuable than buildings that do not comply. This is because they will be more energy-efficient and will have lower operating costs, which can translate into higher property values.

Job creation: The law is expect to create new jobs in the energy efficiency and renewable energy industries, as well as in building construction and maintenance.

Climate change mitigation: Local Law 97 is a key component of New York City’s plan to reduce greenhouse gas emissions and mitigate the effects of climate change. By reducing carbon emissions from buildings, the law will help to slow the pace of climate change and protect New York City from its impacts.

What can we learn from the implementation of Local Law 97 for other cities?

The implementation of Local Law 97 in New York City offers several lessons for other cities that are considering similar policies:

Ambitious goals are possible: Local Law 97 sets ambitious carbon emissions limits for buildings, demonstrating that it is possible to set and achieve ambitious climate goals.

Collaboration is key: The implementation of Local Law 97 involved extensive collaboration between city government, building owners, and other stakeholders. This collaboration was critical to the law’s success and could serve as a model for other cities.

Flexibility is important: Local Law 97 Nyc provides building owners with several compliance options, which allows them to choose the approach that works best for their building. This flexibility could be important for other cities considering similar policies, as it allows building owners to adapt to changing circumstances.

Financing is a challenge: One of the biggest challenges facing building owners under Local Law 97 is how to finance the required energy efficiency upgrades. Other cities considering similar policies will need to consider how to address this challenge, perhaps by offering incentives or financing options.

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