Local Law 88 and 97 - What you need to know to avoid fines.

New York City's commitment to reducing carbon emissions has led to the implementation of stringent regulations, notably Local Laws 88 and 97. These laws mandate significant energy efficiency measures for buildings, with substantial penalties for non-compliance. For property owners and managers, understanding these requirements and implementing effective solutions, such as submetering, is crucial to avoid fines and promote sustainability.

Local Law 88: Lighting Upgrades and Submetering

Enacted as part of the Greener, Greater Buildings Plan, Local Law 88 (LL88) requires buildings over 25,000 square feet to upgrade lighting systems to meet current New York City Energy Conservation Code standards and install electrical sub-meters for large non-residential tenant spaces exceeding 5,000 square feet. The compliance deadline for both lighting upgrades and submetering installations is January 1, 2025.

Penalties for Non-Compliance with LL88

Failure to comply with LL88 can result in significant fines:

• Submetering Non-Compliance: A penalty of $500 per tenant per year is imposed for failing to install required sub-meters.  

• Lighting Upgrade Non-Compliance: Buildings that do not complete the mandated lighting upgrades may face fines starting from $1,500 to $3,000 annually, with an additional $500 for each commercial tenant subject to the law. 

Local Law 97: Carbon Emission Limits

Local Law 97 (LL97), part of the Climate Mobilization Act, sets carbon emission limits for buildings over 25,000 square feet, aiming to reduce citywide emissions by 40% by 2030 and 80% by 2050. The first compliance period begins in 2024, with stricter limits taking effect in 2030.

Penalties for Non-Compliance with LL97

Buildings that exceed the established emission limits will incur fines calculated at $268 per metric ton of CO₂ equivalent over the limit. Additionally, failure to submit the required annual emissions report by May 1 each year can result in fines of $0.50 per square foot. 

The Role of Submetering in Compliance

Implementing submetering systems is a proactive step toward compliance with both LL88 and LL97. Submetering allows for precise monitoring of energy consumption at the tenant level, enabling building owners to:

• Identify Energy Inefficiencies: Detect areas with high energy usage and implement targeted energy-saving measures.

• Encourage Tenant Accountability: Provide tenants with detailed energy usage data, promoting energy conservation behaviors.

• Facilitate Accurate Billing: Ensure tenants are billed accurately for their actual energy consumption, fostering fairness and transparency.

Selecting the Right Submetering Solutions

When choosing submetering products, consider the following factors:

• Compliance: Ensure the system meets all regulatory requirements set forth by LL88 and LL97.

• Accuracy: Opt for meters that provide precise and reliable energy consumption data.

• Scalability: Select systems that can be easily expanded or upgraded as building needs evolve.

• Data Accessibility: Choose solutions that offer user-friendly interfaces for both building management and tenants to access energy usage information.

Conclusion

Navigating the complexities of New York City's Local Laws 88 and 97 is essential for building owners and managers aiming to avoid substantial fines and contribute to the city's sustainability goals. Implementing effective submetering solutions not only facilitates compliance but also promotes energy efficiency and accountability among tenants. By investing in the right submetering products, property stakeholders can ensure adherence to regulations while fostering a culture of energy consciousness within their buildings.