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Writer's pictureKOW Building Consultants

How to Stay Compliant with NYC Local Laws 87 and 97: A Guide for Property Owners

Updated: Oct 28

In New York City, keeping up with energy efficiency regulations is more than just a legal obligation—it’s a smart investment in your property’s future. As buildings face increasing scrutiny for their environmental impact, Local Law 87 and Local Law 97 have emerged as two of the most critical pieces of legislation shaping the future of energy efficiency and carbon emissions reductions in NYC. Compliance with these laws is not just about avoiding penalties; it's about improving building performance, reducing operational costs, and positioning your property as a leader in sustainability.


This blog will break down what Local Law 87 and Local Law 97 require, and how KOW can help property owners navigate these regulations through comprehensive energy audits, retro-commissioning, and electrification feasibility studies.


Understanding Local Law 87: Energy Audits and Retro-Commissioning

Local Law 87 (LL87) mandates that buildings over 50,000 square feet in New York City undergo periodic Energy Audits and Retro-Commissioning to improve energy performance. These audits and commissioning activities must be conducted every 10 years and aim to identify ways to improve energy efficiency within buildings.


What is an Energy Audit?

An energy audit is a comprehensive assessment of a building's energy usage. This process identifies areas where energy is wasted and offers actionable recommendations to enhance efficiency. In NYC, these audits must adhere to ASHRAE Level 2 standards, which include:

  • A detailed analysis of energy use.

  • A breakdown of how energy systems operate.

  • Identification of cost-effective energy-saving measures that can reduce energy consumption.


What is Retro-Commissioning?

Retro-commissioning is the process of ensuring that building systems are operating as intended. This includes reviewing the HVAC, electrical, and mechanical systems to confirm that they are working efficiently. If any inefficiencies are found, corrective actions must be taken to bring these systems in line with optimal performance levels.


Why is Local Law 87 Important?

Compliance with Local Law 87 not only helps improve energy efficiency but can also lead to significant cost savings. By identifying energy inefficiencies, building owners can implement corrective measures that reduce utility bills and improve overall building performance. Additionally, the penalties for non-compliance can be steep—up to $3,000 for the first year of missed reporting and $5,000 for each subsequent year.


Understanding Local Law 97: Carbon Emission Limits and Compliance

While Local Law 87 focuses on energy audits and system improvements, Local Law 97 (LL97) is part of the broader NYC Climate Mobilization Act, which sets limits on carbon emissions for buildings over 25,000 square feet. The goal is to reduce greenhouse gas emissions in New York City by 40% by 2030 and by 80% by 2050.


What Does Local Law 97 Require?

  • Carbon Emission Caps: LL97 sets annual carbon emission caps for buildings based on square footage and usage type. These caps will become stricter over time, with the first compliance period starting in 2024.

  • Penalties for Non-Compliance: Failure to meet these emissions targets can result in fines of $268 per metric ton of CO2 over the building’s limit. This means that buildings with excessive emissions could face significant financial penalties if they do not take steps to reduce their carbon footprint.


The Role of Electrification and Energy Efficiency

Many buildings in NYC still rely on fossil fuels for heating and cooling, which are significant contributors to carbon emissions. Electrification Feasibility Studies—like the ones offered by KOW BC—can help building owners explore the possibility of transitioning to electric heating and cooling systems, which have a lower carbon footprint and can help meet LL97’s emission reduction targets.


How KOW Can Help with LL87 and LL97 Compliance

Staying compliant with both Local Law 87 and Local Law 97 requires expert guidance and strategic planning. Here’s how KOW BC can help ensure that your property meets these requirements while optimizing its energy performance.

  1. Comprehensive Energy Audits and Retro-Commissioning (LL87 Compliance)

    • Our team conducts thorough ASHRAE Level 2 Energy Audits, analyzing your building’s current energy usage and identifying areas for improvement. These audits offer actionable recommendations to help you reduce consumption and enhance efficiency.

    • We also perform Retro-Commissioning to ensure that all building systems are functioning as they should be. Our reports highlight inefficiencies and recommend corrective measures to bring your building up to optimal performance.

  2. Carbon Emissions Management and Electrification Feasibility (LL97 Compliance)

    • KOW BC specializes in helping buildings meet the emissions caps set by Local Law 97. Our Carbon Emission Assessments help identify where you stand in relation to the city’s emission limits and what measures can be taken to reduce your building’s carbon footprint.

    • If your building relies on outdated systems that burn fossil fuels, we offer Electrification Feasibility Studies to explore the potential of converting to electric systems. These studies examine your building’s infrastructure and provide a roadmap for a more sustainable future.

  3. NYSERDA Incentive Programs and Energy Upgrades

    • We assist in navigating NYSERDA incentive programs, which can help offset the costs of energy upgrades. Whether you’re implementing energy-efficient lighting, HVAC systems, or renewable energy technologies like solar panels, KOW BC ensures you take full advantage of available financial incentives.

  4. Ongoing Support and Reporting

    • Our team provides ongoing support and reporting to ensure you remain compliant with NYC’s evolving energy regulations. We help you navigate deadlines and submission requirements, avoiding costly fines and ensuring that your building operates as efficiently as possible.


The Benefits of Staying Compliant

Beyond avoiding fines, staying compliant with Local Laws 87 and 97 offers numerous benefits:

  • Energy Savings: By improving energy efficiency, you’ll reduce operating costs and increase the long-term value of your property.

  • Increased Property Value: Energy-efficient buildings are more attractive to tenants, investors, and potential buyers. Compliance with these laws positions your property as a leader in sustainability, which can lead to higher occupancy rates and rental income.

  • Environmental Impact: Meeting emissions standards not only satisfies regulatory requirements but also contributes to a healthier, more sustainable New York City.


Conclusion: Act Now to Stay Ahead of Local Laws 87 and 97

As NYC continues to lead the way in environmental regulations, it’s crucial for property owners to stay ahead of the curve. Local Laws 87 and 97 present challenges, but with the right approach, they also offer opportunities for significant energy savings, reduced operational costs, and a more sustainable future.


At KOW, we understand the complexities of NYC’s energy regulations and offer a full suite of services to help you navigate these requirements. From energy audits and retro-commissioning to carbon emission assessments and electrification studies, we’re your partner in achieving compliance and maximizing the efficiency of your property.

Contact us today to learn how we can help your building stay compliant, save on energy costs, and contribute to a greener NYC.

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