BY JOSH NARISMA
Local Law 97 remains confusing to contractors across New York City, who will soon be required to adhere to strict energy regulations regarding the construction and renovation of specific buildings.
On November 8, Kinetic Communities Consulting, a team of clean energy experts, sought to demystify LL97 by organizing the 2023 Contractor Action Summit. Held at the Surrogate’s Court beside City Hall, the event drew representatives from the Mayor’s Office of Climate and Environmental Justice (MOCEJ), the Department of Buildings, Housing Preservation and Development, and Con Edison. Contractors at the summit had questions about good faith compliance efforts and guidelines for affordable housing.
The summit focused specifically on Articles 320 and 321, which pertain to energy efficiency in market-rate buildings and affordable housing buildings that are 25,000 square feet or larger. Nikki Joseph, Policy Advisor at MOCEJ, stated that the Law is designed to have a few different compliance periods, and there are different requirements for market-rate buildings and affordable buildings. She said, “The first [of two] submissions limit will be in 2024-2029. Currently we estimate that about seventy-five to eighty percent of buildings are already in compliance.”
Joseph added that starting on May 1, 2025, buildings will have to file annual emissions reports with the buildings department for the prior year. The penalties for noncompliance are severe. For market-rate buildings, failure to submit these reports results in fines of $0.50 per square foot every month until the violation is corrected within twelve months of the deadline. If emissions exceed the limit, the penalty is $268 per ton over the limit for that year. For false statements, the fine is up to $500,000 or imprisonment of not more than thirty days. By contrast, affordable housing buildings that don’t file emissions reports are penalized $10,000, and another $10,000 if the prescriptive energy measures are unmet.
However, Joseph clarified that penalty mitigation exists: “We have details for a good faith effort or financial hardship, or if there’s a critical service that the building can’t provide, such as a hospital.”
Enforcing LL97 across NYC involves a multi-pronged plan that does not simply seek to punish rulebreakers but encourage sustainability, Joseph said. Additionally, carbon neutrality is not the only goal; other missions include reducing the load of electricity by creating more efficient frameworks, and synergizing the different local law requirements in a way that is easily fulfillable by NYC contractors. Joseph also briefly discussed the Electrify Program, a pilot project in Staten Island and Queens that will help building owners save money, improve efficiency, and create economic opportunity.
According to Gina Bocra, Chief Sustainability Officer of DOB, although emission reports are not expected until 2025, LL97 begins impacting buildings on January 1, 2024: “from a high level, Local Law 97 and the Climate Mobilization Act were supposed to target a 40 percent reduction in emissions by 2030.” She emphasized that NYCHA and City buildings are subject to the same reduction target as the private sector: “While they don’t report to Department of Buildings, they are not exempt from this law, which is a common misconception.” She also added that state requirements for carbon reduction were already in effect: “if Local Law 97 didn’t exist, buildings would still be subject to a carbon reduction requirement that has happened at a state level.”
None of the contractors present expressed resistance to LL97; however, one asked, “What are the different pathways for affordable housing?” He was informed that although emissions reports are expected by 2025, income-restricted buildings can submit them as late as 2027, provided they are covered by specific administrative codes in accordance with the government. More details are available on the DOB website.
Another contractor asked “How can building owners prove good faith efforts towards sustainability?” Bocra clarified that a grace period is given to owners if they submit a decarbonization plan that outlines future steps to achieving compliance, provided they meet the eligibility criteria. Mitigated penalty is also offered to buildings approved by the DOB for currently undergoing work to meet the emissions limit.
Bocra said she often receives questions regarding the different pathways for affordable housing and how emissions are calculated. She assured the attendees that a guidance handbook is currently underway that defines these rules in clear and plain language.