4 Easy Steps to Local Law 84, 87, 88, and 97 Compliance
New York City's commitment to sustainability and environmental responsibility has taken a significant step forward with the implementation of Local Law 84 (LL84). LL84 requires building owners meeting specific criteria to annually measure and report their energy and water consumption through a process called benchmarking. The primary aim is to enhance transparency regarding energy and water usage, providing valuable insights for building owners and tenants on how to optimize their structures for improved efficiency. Notably, however, LL84 is just one part of the larger network of local sustainability laws impacting building owners in New York City today.
In addition to LL84, building owners in New York City are required to adhere to Local Law 87 (LL87). LL87 is a crucial mandate aimed at enhancing energy efficiency in covered buildings. Enacted in 2009, LL87 aims to enhance the energy efficiency of buildings in New York City. This rule exists alongside Local Law 88 (LL88), which mandates that common areas in buildings of a certain size must upgrade lighting and meet other requirements to achieve current New York City Energy Conservation Code standards by 2025. Finally, New York City Local Law 97 (LL97), arguably the most progressive of the lot, mandates that buildings exceeding 25,000 square feet must adhere to new energy efficiency and greenhouse gas emissions limits starting in 2024, followed by even stricter limits in 2030. The law aims to achieve a 40 percent reduction in emissions from the city's largest buildings by 2030 and an 80 percent reduction by 2050.
Altogether, Local Laws 84, 87, 88, and 97 may sound like a lot for New York City building owners to comply with. But with the right guidance, compliance can be as simple as following four easy steps. This guide breaks down the compliance roadmap, incorporating the nuances of LL84, LL87, LL88, and LL97 providing insight into deadlines, fines, and the role of professionals in facilitating compliance.
NYC Local Law 84, 87, 88, and 97 Compliance Roadmap
In this comprehensive guide, we break down the steps, deadlines, and key considerations for building owners to ensure seamless compliance with LL84, LL87, LL88, and LL97. This should not be taken as legal services or advice, just some sound advice from experts in the energy audit and retrofit space.
LL84 requires owners of buildings exceeding 50,000 square feet to submit annual benchmarking data for public disclosure by key dates during the calendar year. In 2016, Local Law 133 expanded the list of buildings required to benchmark for energy and water efficiency. It introduced changes, such as excluding specific types of properties, like 'garden-style' apartments, from the definition of a 'covered building.' The law aims to make benchmarking more inclusive and comprehensive, ensuring a more accurate representation of energy usage across different building types.
LL87 applies to owners of large buildings. These buildings must undergo energy audits, retro-commissioning, and submit specific information to the City. Specifically, the law mandates building owners of structures exceeding 50,000 square feet to conduct energy audits and retro-commissioning studies every ten years.
LL88, on the other hand, focuses on upgrading lighting systems in covered buildings to meet energy efficiency standards. Covered buildings typically include those over 25,000 square feet or part of a property with a combined area over 50,000 square feet. Like LL88, LL97 applies to buildings over 25,000 square feet or part of a property with a combined area over 50,000 square feet. If you’re not sure whether your building is covered by LL87, LL88, or LL97, reach out to us for a comprehensive consultation.
Step 2: Complete Benchmarks, Energy Audits, Lighting Audits, and a Carbon Emissions Inventory
Building owners covered by LL84 must measure and report their energy and water consumption as “benchmarks” each year. The online benchmarking tool developed by the U.S. Environmental Protection Agency “Portfolio Manager” tracks and assesses energy and water consumption in buildings, enabling building owners to identify areas for improvement and cost savings. The Portfolio Manager streamlines data collection and analysis. Applicants can use an online data collection worksheet to get a complete list of the information required for benchmarking of their specific buildings and report all of this information via the Portfolio Manager. Building owners can also designate a representative to work with the operating staff to benchmark energy and water use.
LL87 compliance involves submitting Energy Efficiency Reports (EERs) to the Department of Buildings (DOB) to demonstrate adherence to the law. An energy auditor must prepare the EER based on audits and retro-commissioning findings compared against the DOB’s standard template. Individuals overseeing energy audit and retro-commissioning work must meet specific qualifications. EEC has spent years in the business and has developed a streamlined method of moving forward with energy audits to comply with LL87. First comes a site visit where we assess building systems' condition and performance through utility bill reviews, interviews, and diagnostic tests. Next, we analyze gathered data, benchmark energy usage, and identify potential energy conservation measures (ECMs). From there, we create a comprehensive Energy Audit detailing ECMs, cost-benefit analysis, energy savings calculations, and implementation recommendations.
When it comes to your lighting audits, you’ll have to engage a qualified lighting professional or energy auditor to conduct a comprehensive lighting audit for LL88 compliance. The LL88 lighting audit will assess the current lighting systems, identify energy-efficient alternatives, and recommend upgrades to comply with LL88 standards. Based on the audit findings, work with the lighting professional to create a detailed upgrade plan. This plan should outline the proposed changes, including the installation of energy-efficient lighting fixtures and controls.
Once you’ve completed your benchmarking and lighting audits, conduct a comprehensive carbon emissions inventory for your building. The LL97 inventory should include a detailed analysis of the building's energy consumption and associated carbon emissions. It should also identify areas for improvement and emissions reduction. All of the inventories and audits require you to engage a qualified energy consultant or auditor, so it can be more effective to approach compliance all as one package. Discuss your needs with us to get a better understanding of how you can package your compliance in the most efficient way.
Step 3: Print and Display Your Building Energy Efficiency Label and Move Forward with Necessary Upgrades and Retro-Commissioning
Once reports are filed, benchmarking is complete for the purposes of LL84 compliance and the only thing left to do is print and display your building’s Energy Efficiency Rating label. The Energy Efficiency Rating label is made available in the DOB NOW Public Portal property profiles annually on October 1. Building owners must print and display the label within 30 days of this date near each public entrance. The label includes both a letter grade and the building's energy efficiency score ranging from “A” for a benchmark score of at least 85 to “F” for buildings that failed to report required benchmarking information.
EEC professional auditors are certified to perform retro-commissioning, which is an important aspect of LL87 compliance. In the context of Local Law 87, retro-commissioning refers to the process of optimizing and improving the performance of existing building systems and equipment. It involves a systematic and comprehensive examination of a building's systems to identify and address operational inefficiencies, maintenance issues, and opportunities for energy savings. Retro-commissioning aims to ensure that the building's systems operate at their optimal efficiency, reducing energy waste and enhancing overall performance.
To comply with LL88, you will most likely need to implement lighting upgrades. Coordinate with our contractors and ensure that the installations align with LL88 requirements. This may include installing energy-efficient lamps, occupancy sensors, and other lighting controls, depending on the unique needs and layout of your building.
With respect to LL97, you’ll need to work with energy professionals to develop a comprehensive compliance strategy. Always remember you will ultimately have to proceed with the implementation of carbon reduction measures as outlined in the compliance strategy. This may include energy-efficient retrofits, transitioning to renewable energy sources, and adopting advanced building technologies to minimize carbon emissions.
As always, you’ll need to maintain detailed documentation of all audits and upgrades, including invoices, specifications, and certificates of compliance for carbon reduction, energy efficiency gains, and lighting upgrades. This documentation will be crucial when submitting reports to regulatory authorities to demonstrate compliance.
Step 4: Submit an Energy Efficiency Report (EER), Lighting Efficiency Report (LER) and an Annual Emissions Report
Once Steps 1, 2, and 3 are complete, the energy auditor prepares an EER for LL87 compliance, an LER for LL88 compliance, and an Annual Emissions Report for LL97 compliance. The EER is submitted online through the Department of Buildings (DOB's) Building Energy Efficiency Reporting and Disclosure (BEERD) system, and applicants are required to pay associated fees: $375 for initial filing, $155 for an extension, and $145 for an amendment per building. The LER includes all relevant information about the lighting upgrades, ensuring accuracy and completeness. Similarly, the Annual Emissions Report includes information like energy consumption, carbon emissions, renewable energy credits and offsets (if any), and documentation of compliance measures in carbon reduction.
Penalties for Failing to Comply with NYC’s Energy Efficiency, Lighting, and Carbon Laws
The DOB has the authority to issue violation notices to building owners found in violation of LL87. These notices not only serve as official documentation of non-compliance but can also lead to additional fines and penalties beyond those initially stipulated by the law. LL87 mandates energy audits and retro-commissioning studies, and failure to comply can result in fines of up to $3,000 per violation. These fines are levied for each instance of non-compliance, emphasizing the importance of adhering to the law's energy efficiency standards.
It’s also important to note that LL87 compliance is intricately tied to the New York City Energy Conservation Code (NYCECC), which assigns a Building Performance Grade (BPG) based on energy efficiency. Non-compliance may result in a lower BPG, negatively impacting a building's reputation and marketability. A lower BPG implies lower energy efficiency and sustainability, factors increasingly valued by tenants and investors. Additionally, financial incentives, including tax credits and rebates, are offered to encourage energy-efficient practices. However, building owners failing to comply with LL87 risk losing eligibility for these incentives.
Building owners covered by LL84 must annually measure and report their energy and water consumption by May 1 of each year. Failure to submit a satisfactory report incurs a penalty of $500 per violation, assessed quarterly, and deadlines for non-compliance are on August 1, November 1, and February 1 of the following year. Likewise, fines for failing to submit an LER under LL88 are around $1500 for failure to file a report.
Starting in 2025, if the owner of a covered building under LL97 submits a report under section 28-320.3.7 indicating that the building has surpassed its annual emissions limit, they may be subject to a civil penalty. The penalty amount will be the difference between the building emissions limit for that year and the reported building emissions, multiplied by $268. In other words, $268 per metric ton of carbon your building is producing above stated emissions limits. The owner of a covered building facing a violation due to failure to submit a report may incur a penalty not exceeding the gross floor area of the building multiplied by $0.50 for each month the violation persists within the 12 months following the reporting deadline. However, no penalty will apply if the owner submits a report demonstrating compliance within 60 days of the report's due date.
Make Compliance with New York City Local Laws Simple
LL84, LL87, LL88, and LL97 are regulatory mandates imposed by the City of New York. Compliance is a legal obligation for owners of large buildings covered by the laws. Failure to comply can result in penalties and violations, but it’s not all downside. In fact, compliance with New York City’s local laws offers economic advantages, including energy savings, reduced operating costs, and enhanced property value.
Complying with LL84, LL87, LL88, and LL97 is essential for building owners seeking to contribute to energy efficiency efforts in New York City. This is instrumental in New York City's goal of an 80% reduction in greenhouse gas emissions by 2050. As buildings contribute to 70% of the city's emissions, these laws require building owners to identify and implement energy-saving measures. Further, compliance with LL84, LL87, LL88, and LL97 offers economic advantages, including energy savings, reduced operating costs, and enhanced property value. After all, energy-efficient buildings become more marketable, attracting tenants seeking sustainability.
By following the detailed guidance provided in this comprehensive guide, building owners can navigate the compliance process successfully, avoid penalties, and contribute to a more sustainable urban environment. Remember, proactive compliance ensures not only legal adherence but also benefits in terms of energy savings, improved building performance, and a positive impact on the environment.
Stay informed about New York City’s local energy laws by keeping up with our blog, following the outlined steps, and playing your part in creating a more energy-efficient future for our city. If you need any support complying with Local Law 84, 88, 97 or any of New York City’s other energy efficiency laws, reach out us using our online contact form.
