LL97 imposes strict emissions limits on buildings over 25,000 gross square feet and requires these buildings to submit annual emissions reports to demonstrate compliance. The law also established significant fines for buildings that exceed their emissions limit.
The first annual emissions report is due by May 1, 2025. Condominiums, cooperatives, and multifamily rental properties covered by LL97 must document their 2024 energy usage and demonstrate compliance or face substantial fines.
On July 24, 2024, the Department of Buildings (DOB) released a comprehensive, 98-page guide that lays out the requirements for reporting annual emissions. To simplify compliance for building owners and condominium and cooperative boards, our energy affiliate FirstService Energy answered the most common questions about new LL97 rules.
What types of buildings does Local Law 97 apply to?
LL97 generally applies to large buildings, the leading source of CO2 emissions in New York City:- A single building larger than 25,000 gross square feet
- Multiple buildings on the same tax lot whose combined size exceeds 50,000 gross square feet
- Multiple buildings owned by a condo association and governed by the same board whose combined size exceeds 50,000 gross square feet
What are the fines for failing to comply with Local Law 97?
- Exceeding your emissions limit – $268 per metric ton of CO2 equivalent over the assigned limit.
- Failing to file a report – $0.50 per square foot for every month that the report is late. There is a grace period through June 30 each year to submit reports without penalty. If a report is submitted after June 30, fines will be retroactively assigned for each month that has passed since May 1.
- Making a false statement on your annual report – up to $500,000
" About 20% of buildings will exceed their emissions cap in the first compliance period [2024–2029]. In 2030, that percentage flips. close to 80% of buildings will face fines if their emissions stay the same as they are today. Boards, building owners, and operators need to think about their existing equipment and what can be replaced to reduce carbon emissions."
— Hanka Gojacic, NYC Energy Advisor | FirstService Energy
What are the 2024 emissions limits under Local Law 97?
Emissions limits are calculated based on building size and property type. These limits become stricter every five years between 2024 and 2050.- Size – while gross square footage determines if a building needs to comply with LL97, gross floor area is used to calculate its annual emissions budget. Gross floor area measures the total area of all floors and spaces in a covered building and must be measured by a Registered Design Professional.
- Property type – LL97 sets emissions limits for 60 different property types to reflect varying energy needs in different types of buildings. If there are multiple property types in a single building (i.e., residential, retail, parking), the emissions limits are calculated depending on the gross floor area of each use type.
"The cost of hiring a registered architect depends on the size of the building but can range from $3,500 up to $15,000. However, Local Law 97 fines can rise well above that figure. Verifying the correct square footage and occupancy type is critical as we approach next year's filing. FirstService Energy can help your building hire an architect who can do this work."
— Kelly Dougherty, President | FirstService Energy
Are there Local Law 97 deadline extensions?
LL97 deadline extensions are available for boards and building owners who can show they’ve made a “good faith effort.” In other words, if a building shows considerable effort to reduce emissions, but still exceeds their threshold, there is an opportunity for a Good Faith Effort extension to delay fines in the 2024–2029 compliance period.Significant work is required to qualify for a Good Faith Effort extension. There must be evidence that the property is actively working toward reducing its emissions with a detailed plan in place. This includes a decarbonization plan that must be submitted by May 1, 2025.
To qualify, buildings must be current with the following energy compliance filings:
- LL97 Emissions Report
- LL84 Benchmarking Report
- LL88 Lighting Upgrades and Submetering Report
- A decarbonization study
- Proof that work is underway to reduce emissions
- Evidence of ongoing alterations for electric readiness
- An LL97 Emissions Report completed in a prior calendar year
- Documentation of negative financial repercussions on facilities critical to human life or safety
- A submitted emissions limit adjustment application showing legal, structural, and/or financial limitations
If your building has one or more rent-regulated units, you may be eligible for a two-year grace period to comply with Local Law 97 deadlines, or an alternative pathway to carbon limit reporting.
Click here to read the DOB’s Article 321 Filing Guide that outlines compliance pathways for buildings with affordable housing or rent-regulated units.