Monday July 14, 2025
Is your building compliant with Local Law 87? FirstService Energy, our dedicated energy management and advisory affiliate, has published a comprehensive FAQ to help board members and building owners navigate Local Law 87 compliance.What is Local Law 87?
New York City’s Local Law 87 (LL87) was enacted in 2009. It requires buildings of 50,000 square feet and above to complete an energy audit and retro-commissioning study, and to file a detailed report with New York City agencies. The bill was passed to help building operators improve energy efficiency and reduce greenhouse gas emissions. Both requirements must be documented in an Energy Efficiency Report (EER) and submitted to the NYC Department of Buildings (DOB) every 10 years.What is an energy audit?
An energy audit is a detailed assessment of a building’s energy use. The results identify opportunities to reduce energy consumption. The audit will examine major building systems including HVACs, lighting, and building envelope performance.What is retro-commissioning?
Retro-commissioning is the process of ensuring that the energy systems in an existing building are installed according to the design intentions, functionally tested, and capable of being operated and maintained according to the owner’s operational needs. The process may include calibrating thermostats, sealing air ducts, updating control settings, and repairing malfunctioning equipment. This requirement helps building operators optimize performance without major capital investment.Who can perform energy audits and retro-commissioning?
Energy audits must be completed by a licensed engineer or architect who also holds a recognized energy certification, including a Certified Energy Manager (CEM) or Certified Energy Auditor (CEA).Retro-commissioning must also be completed by certified professionals with technical expertise in building systems and appropriate credentials from groups like ASHRAE, NEBB, or AABC.
FirstService Energy has vetted and approved several vendors that work with us to help our buildings with LL87. As part of our program, our buildings receive reduced pricing, and our team helps manage the process to ensure that our buildings avoid penalties for non-compliance.
What buildings does Local Law 87 apply to?
Generally, LL87 applies to:- Covered buildings larger than 50,000 gross square feet
- Groups of covered buildings on a single lot that together exceed 100,000 gross square feet
- Two or more condominium buildings governed by the same board whose combined area exceeds 100,000 gross square feet.
What is the deadline to file Local Law 87 reports with New York City?
The year a building is required to comply is based on the last digit of the building’s tax block number. For example, a building with a tax block ending in "6" must file its EER in 2026, and again in 2036.To identify your tax block number, click here to access a search tool from the New York City Department of Finance.
The report is due by December 31 of the year in which the building must comply.
What buildings are exempt from Local Law 87 compliance?
Some buildings may be exempt from certain requirements under LL87 if they meet specific criteria related to energy performance or recent construction. The main exceptions include:- Class One buildings: Buildings categorized as “Class One” under NY Real Property Tax Law § 1802 may be exempt from LL87, meaning they are not required to conduct an energy audit, perform retro-commissioning, or submit an EER.
- ENERGY STAR-certified buildings: If a building has earned the ENERGY STAR label for at least two of the three calendar years preceding its reporting year, it may be exempt from the energy audit component. However, the building(s) must still complete retro-commissioning and file an EER showing the exemption.
- LEED-certified buildings: If the building obtained a LEED for Existing Buildings O+M certification within the four years preceding the reporting year, it may be exempt from the energy audit. However, the building(s) must still complete retro-commissioning and file an EER showing the exemption.
- No retro-commissioning is required for buildings that have been certified under the LEED for Existing Buildings within two years prior to filing the EER and have earned both LEED points for Existing Building Commissioning Analysis and Existing Building Commissioning Implementation.
- New construction: Buildings with a First Temporary Certificate of Occupancy that is less than ten years old may not need to conduct an energy audit, perform retro-commissioning, or submit an EER.
- Buildings undergoing renovations: For existing buildings undergoing substantial renovations (Type 1 Alterations), owners may defer compliance by submitting proof of NYC Energy Conservation Code adherence via the EER1 form. For properties undergoing less extensive alterations (Type 2 or 3), an extension request may be submitted via an EER2 form.
What is the fine for not filing a Local Law 87 report or submitting past the deadline?
If the report is not submitted on time, or is deemed incomplete, the DOB may issue a Class 2 violation and a penalty of $3,000 for the first year and $5,000 for each subsequent year of non-compliance.Local Law 87 is just one component of New York City’s broader climate policy targeting energy efficiency and emissions.
Local Law 84 mandates annual benchmarking of building energy use, while Local Law 97 imposes emissions caps and potential fines beginning in 2025. Together, these laws are part of the city’s Greener, Greater Buildings Plan.When should boards and building owners begin the compliance process?
Preparing for LL87 starts with reviewing your building’s tax block number to confirm your compliance year. From there, planning should begin 12 to 18 months in advance.Always select a qualified energy auditor and retro-commissioning agent who meet the city’s requirements. Experience with LL87 is critical, as the law includes detailed documentation and procedural standards that must be followed precisely.
Gathering building documentation early will also accelerate the process. You may need access to:
- Energy bills for the last two years
- Mechanical system schematics
- Control system settings
- Maintenance logs
FirstService Residential has helped hundreds of New York City buildings comply with Local Law 87 and avoid costly fines.
Our in-house Compliance Department tracks city deadlines relevant to your property, actively monitors local law updates, and helps resolve past violations. Our affiliate, FirstService Energy, works closely with boards and building owners throughout the entire LL87 cycle, coordinating building audits and retro-commissioning efforts, and managing the documentation required for filing.Email us at [email protected] or call us at 212.324.9944.
This article is intended for general informational purposes only and is not intended as legal advice. Laws and regulations are subject to change. Always consult with a qualified attorney to confirm the current legal standards before drafting or amending rules.