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Understanding the 2023 Proposed Rules for NYC's Local Law 97
Demystifying NYC’s 2023 Proposed Rules for Local Law 97: What You Need to Know
In September 2023, the New York City Department of Buildings (DOB) released a crucial set of proposed rules regarding the implementation of Local Law 97, which is set to take effect in 2024. These new regulations cover various aspects of Local Law 97 and are currently open for public comment until the public hearing scheduled for October 24. In this article, we will delve into the key takeaways from the 2023 proposed rules and explore their implications for building owners and the broader community.
1. Defining "Good Faith" Compliance
Local Law 97 places the responsibility on the DOB to establish criteria for determining whether building owners have made a “good faith effort” to meet the law’s stringent carbon emission limits by 2024. To even be considered for good faith exemptions, buildings must demonstrate full compliance with other existing energy laws, including benchmarking (Local Law 84), audits and retrocommissioning (Local Law 87), and lighting upgrades and submetering requirements (Local Law 88).
If a building satisfies these prerequisites, it can qualify for good faith exemptions through various means, such as having permits approved for retrofit work, contracts for electric service upgrades with Con Edison, or submitting a comprehensive plan for achieving net-zero carbon emissions by 2050. The latter option, while relieving owners of immediate penalties, places stringent requirements on demonstrating timelines, financing, and expected emissions reductions.
Additionally, buildings can seek exemptions by proving they were under emissions limits in a prior year, or if they are classified as critical facilities, such as hospitals, where penalties could have a significant impact. Owners facing financial hardship can also apply for adjustments, following section 28-320.7 of the Administrative Code.
If a building satisfies these prerequisites, it can qualify for good faith exemptions through various means, such as having permits approved for retrofit work, contracts for electric service upgrades with Con Edison, or submitting a comprehensive plan for achieving net-zero carbon emissions by 2050. The latter option, while relieving owners of immediate penalties, places stringent requirements on demonstrating timelines, financing, and expected emissions reductions.
Additionally, buildings can seek exemptions by proving they were under emissions limits in a prior year, or if they are classified as critical facilities, such as hospitals, where penalties could have a significant impact. Owners facing financial hardship can also apply for adjustments, following section 28-320.7 of the Administrative Code.
2. Clarification for Article 321 Buildings
Over 8,000 residential buildings and various other property types, including places of worship, are eligible to comply with Local Law 97 through the prescriptive path outlined in Article 321. The proposed rules now offer specific guidance on the energy conservation measures these buildings must undertake, documentation requirements, penalties for non-compliance, and assistance for those struggling to meet the stipulated criteria.
This clarification is vital, as approximately half of all multifamily buildings and one-third of all covered properties fall into this category, making it essential for owners to understand their obligations and avoid penalties.
This clarification is vital, as approximately half of all multifamily buildings and one-third of all covered properties fall into this category, making it essential for owners to understand their obligations and avoid penalties.
3. Incentivizing Beneficial Electrification
The 2023 proposed rules introduce a new incentive in the form of a beneficial electrification credit. This credit rewards properties that install electric heating, cooling, and domestic hot water equipment meeting specific efficiency standards. Buildings that electrify these systems before 2030 can apply a negative emissions coefficient to their electricity consumption, offering a unique opportunity to mitigate penalties.
The earlier the equipment is installed, the more favorable the coefficient, extending the incentive’s applicability until 2036. This initiative encourages early electrification in buildings that would otherwise not be obligated to take action until the 2030 compliance period.
The earlier the equipment is installed, the more favorable the coefficient, extending the incentive’s applicability until 2036. This initiative encourages early electrification in buildings that would otherwise not be obligated to take action until the 2030 compliance period.
4. Guidance on Local Law 88 Compliance
Alongside the Local Law 97 proposed rules, the DOB also introduced long-awaited guidance for complying with Local Law 88 of 2009. This law mandates lighting upgrades and submetering installations in buildings over 25,000 square feet by 2025, encompassing all commercial buildings and residential building common areas.
The guidance addresses reporting requirements, penalties for non-compliance, and aims to assist building owners in understanding and fulfilling these obligations. A separate hearing for these rules is scheduled for October 26.
In tandem with the proposed rules, Mayor Eric Adams has unveiled a comprehensive plan to mobilize buildings covered by Local Law 97. This strategy includes the establishment of an LL97 Mobilization Council, comprising three working groups dedicated to providing support for the workforce and building retrofitters, building owners and managers, and financing organizations.
The guidance addresses reporting requirements, penalties for non-compliance, and aims to assist building owners in understanding and fulfilling these obligations. A separate hearing for these rules is scheduled for October 26.
In tandem with the proposed rules, Mayor Eric Adams has unveiled a comprehensive plan to mobilize buildings covered by Local Law 97. This strategy includes the establishment of an LL97 Mobilization Council, comprising three working groups dedicated to providing support for the workforce and building retrofitters, building owners and managers, and financing organizations.
Conclusion
In conclusion, the 2023 proposed rules for Local Law 97 introduce critical clarifications and incentives that will shape how buildings in New York City address carbon emissions. Building owners and stakeholders should carefully review and engage with these rules to ensure compliance while maximizing the benefits of available incentives. As the deadline for compliance in 2024 approaches, staying informed and prepared is key to navigating the evolving landscape of energy regulations in the city.
Ready to simplify compliance and maximize your savings? Join hundreds of NYC CRE owners and unlock a world of convenience and savings for your properties. Our dedicated team is here to guide you through the complexities of Local Law 97, ensuring compliance is hassle-free and cost-effective. Don’t miss out on the opportunity to safeguard your finances, enhance efficiency, and contribute to a sustainable future. Comply today at LL97.com.
Ready to simplify compliance and maximize your savings? Join hundreds of NYC CRE owners and unlock a world of convenience and savings for your properties. Our dedicated team is here to guide you through the complexities of Local Law 97, ensuring compliance is hassle-free and cost-effective. Don’t miss out on the opportunity to safeguard your finances, enhance efficiency, and contribute to a sustainable future. Comply today at LL97.com.
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