|Local Law 97 And The Upcoming Carbon Use Penalties:
The Climate Mobilization Act (LL 97) requires all buildings in NYC over 25,000 sq feet to hit minimum efficiency standards by 2024, followed by more stringent standards by 2030. The fines for noncompliance are significant, and this affects both the free market and buildings with rent stabilized units.
Knowing where you stand:
In order to know what your potential liabilities are for 2024 it is important that your building is properly benchmarked. The benchmarking data is what the city will be using to determine fines. Landlords and managers should insist that a company with a Certified Energy Manager (CEM) is completing the benchmarking. From the benchmarking metrics, you or your consultants should be able to do an analysis of where you stand. Below is an example of an analysis Carleton Energy Consulting (CEC) provides to its clients:
1. Current carbon emissions from the building
2. What the building’s allocated carbon cap will be
3. Percentage above or below the carbon cap
4. Fines that would be issued if the law were to be enacted today
Once this analysis is completed, ownership/management will have an idea of how much energy-saving work will need to be completed in order to be compliant for 2024. Fortunately, when completed properly, the energy savings measures that will be implemented will also cut down on the building’s energy expenses.
2024 and 2030 may seem like a long time away but it’s important to know your building’s expected energy consumption limit to meet this requirement and identify potential required measures.
Please email us at firstname.lastname@example.org to set up a consultation if you have any questions about LL97 or any current Energy Local Laws