In 2019, New York City passed Local Law 97, dubbing it “one of the most ambitious plans for reducing emissions in the nation.”[1]
What is Local Law 97?
Local Law 97’s goal is to reduce greenhouse gas emissions by requiring certain buildings to meet new energy efficiency standards.[2] However, these restrictions only apply to certain buildings:
• “Buildings that exceed 25,000 gross square feet;
• Two or more buildings on the same tax lot that together exceed 50,000 square feet;
• Two or more buildings owned by a condo association that are governed by the same board of managers and that together exceed 50,000 square feet.”[3]
Such buildings will be subject to an “Emissions Intensity Limit [that is] multiplied by Corresponding Gross Floor Area.”[4] Should a building subject to Local Law 97 exceed the total emissions limitation, the building will be charged “the difference between the building emissions limit for such year and the reported building emissions for such year, multiplied by $268.”[5] Local Law 97 will go into effect as soon as 2024.[6]
Potential Ramifications of Noncompliance with Local Law 97:
While $268 is not a huge amount of money, that number will drastically increase when multiplied by actual emissions. One such example is mentioned by Joe Lovinger’s article NYC Condos, Co-ops Face Costly Emissions Bill.[7] In his article, Lovinger provides that “One57 . . . [a] condo tower . . . emits more than 5,600 tons of carbon a year . . . . [b]ut Local Law 97 allows One57 no more than 5,000 tons. That means the building could be fined $200,000 a year.”[8] Resultingly, if imposed, such fines may financially burden a co-op or condo.
To read Joe Lovinger’s full article, please see the attached link here:
Notes:
[1] Local Law 97, NYC Sustainable Buildings, https://www.nyc.gov/site/sustainablebuildings/ll97/local-law-97.page (last visited Nov. 3, 2022).
[2] Id.
[3] Id.
[4] Greenhouse Gas Emission Reporting, NYC Buildings, https://www.nyc.gov/site/buildings/codes/greenhouse-gas-emission-reporting.page (last visited Nov. 3, 2022).
[5] Id.
[6] Id.
[7] Joe Lovinger, NYC Condos, Co-ops Face Costly Emissions Bill, The Real Deal (Oct. 31, 2022), https://therealdeal.com/2022/10/31/nyc-condos-co-ops-face-costly-emissions-bill/.
[8] Id.