Buildings account for an estimated 70% of greenhouse gas emissions in New York City. The city government currently has an ambitious plan to make New York carbon neutral by 2050, and one way they are working to cut emissions is through Local Law 97. This law will require buildings across the city to reduce their emissions and meet certain benchmarks—or face steep fines. It was passed in 2019 and the mandates have officially gone into effect as of 2024. Over the next few years, these emission requirements will get even more stringent.  

The New York Local Law 97 has been met with controversy on both sides: some believe it is not ambitious enough to fight climate change, others believe it puts too much pressure on property owners. Regardless of your opinion, though, the regulations are here and ignoring them can come with serious financial consequences. 

If you are a building owner in New York, you are likely already familiar with the law, but you may not know how exactly it will impact you or what you can do to meet growing requirements. In this blog, we’ll give you a detailed rundown and some ways to cut your emissions.  

 What is Local Law 97? 

Local Law 97 was passed in 2019 as part of the New York City Green New Deal. The new law requires that most buildings over 25,000 square feet must meet new energy efficiency and greenhouse gas emissions limits as of 2024 (with a few exceptions). Stricter emissions requirements will be rolled out by 2030. Buildings of this size that fail to meet the new requirements will face large financial penalties. 

The goal of the law is to help lower the emissions of New York’s buildings by 40% by 2030, with a net zero goal set for 2050.  

The law is impacting thousands of buildings across the city and will help significantly cut emissions. In fact, about 50,000 properties in New York City are larger than 25,000 square feet and as of late 2023, almost 90% of them are estimated to be in compliance with the new law. Of course, this leaves a lot of buildings still falling short and subject to steep fines. The government has put in a provision that some building owners may apply for a two-year extension to meet the emissions limits, but even then, they must demonstrate that they have made serious efforts to lower their carbon footprint. 

However, the 2030 limits are even more ambitious and may require even more work to keep emissions low. 

How New York Local Law 97 Can Affect Your Business 

The emissions limits are not one-size-fits-all, and instead, they differ depending on a few factors, including size and property type. So, whether your business is a hotel, an office, a grocery store, or other, you will face different requirements now and in the coming years. In fact, the law has defined set points for 60 different property types.  

The NYC Local Law 97 applies to buildings larger than 25,000 gross square feet, as well as two or more buildings on the same tax lot that together exceed 50,000 square feet—or that are owned by a condo association governed by the same board of managers and that together exceed 50,000 square feet. That means if your business consists of multiple buildings, you should check which are impacted by the law. 

If you are behind, and if any buildings you own have not yet reduced their emissions to the mandated levels, you are likely to face a hefty fine from the New York City government. The penalty amount will be calculated based on how much you exceed the emissions limit required for your building, meaning more emissions equals more money lost.  

Of course, if you own a business that simply rents space in a building, you are not responsible for these changes. In that case, it is likely your landlord will coordinate with you on any changes they make to their property. 

How to Meet Local Law 97 Compliance 

Reducing emissions involves auditing all the components of a building that consume energy and finding ways to cut back.  

 Switching to LED lights can make a significant difference, as these types of bulbs use a lot less energy than traditional incandescent bulbs. Tuning up your heating, ventilation, and air conditioning (HVAC) systems can help make sure your equipment is not guzzling up energy unnecessarily. If your HVAC system is on the older side, you should consider replacing it altogether, as there are more modern, high-efficiency units on the market that can use 40-60% less energy, cutting down overall building emissions.  

You can also install energy monitoring technologies that can track where energy is being used the most and identify opportunities for further cutbacks. 

These all come with costs, though, and many business owners may struggle to find the capital to invest in the most effective carbon-cutting strategies. Considering increased carbon limits on the horizon, and the financial consequences of ignoring the Local 97 Law, it is essential for buildings to prioritize these upgrades. 

Luckily, there is a way for businesses to get all these upgrades, and a whole suite of innovative, energy-saving technologies with no upfront cost: working with an energy-as-a-service provider like Budderfly. At Budderfly, we work with business owners across the U.S. to help them lower their carbon footprint. We provide all the capital for the equipment and technology, and we oversee the entire project—including procurement, hiring contractors, managing installation on site, and more. 

We also provide full transparency into your energy consumption and carbon emissions data in the Budderfly Customer Portal. You can see how your building uses energy and how much you are saving. 

Want to learn more about how Budderfly can remove the cost, hassle, and risk of lowering your building’s emissions? Contact one of our experts today.