Building Emissions Compliance in New York City

 

Local Law 97 is a Local Law adopted by the New York City Council in 2019 as part of the Climate Mobilization Act. It establishes mandatory Energy and GHG Emissions Limits for large Buildings across York City and is now fully integrated into the NYC Administrative Code and the Rules of the City of New York.

Enforced by the NYC Department of Buildings (DOB), this Law applies to more than 50,000 Buildings, including commercial properties, Housing, and Affordable Housing assets. Covered Buildings must Comply with defined Emissions Limits during each Compliance Period.

The primary objective is to Reduce Carbon and Gas Emissions from the City’s built environment by 40% by 2030 and 80% by 2050, supporting long-term Sustainability goals.

 

Covered Buildings and Scope of Application

 

The regulation applies to Covered Buildings throughout New York City. The main category includes all Buildings larger than 25,000 ft². Other categories concern specific Housing and Affordable Housing properties, as detailed in the relevant Article and Rules. Owners must determine whether a Building is Covered and understand how the Requirements apply to their specific asset. The Department provides guidance through official Guide documents, but responsibility for Compliance, Reporting, and Data accuracy remains with Building Owners. Incorrect classification or missing Reports may result in Penalties.

 

 

Emissions Limits and Compliance Logic

Compliance is based on Emissions Limits that apply to each Building during a defined Period. These Limits depend on square footage, space type, and Energy use.

Two key values determine whether a Building Complies:

• Actual Annual GHG Emissions, calculated from Energy Data
• The applicable Emissions Limits set by the Law

GHG Emissions include Carbon and Gas emissions linked to Electricity and other energy sources. To Meet the Requirements, Buildings must remain below the applicable Limits for each Reporting cycle.

 

Annual Reporting to the Department of Buildings

All Covered Buildings must submit an Annual greenhouse Gas Emissions Report to the NYC Department of Buildings via the official DOB Portal. Reporting is mandatory and follows strict Rules.

Each Report includes verified Energy Data, Including Electricity, Gas, and Renewable Energy where applicable. Reports are due every year by May 1 and cover the prior calendar year.

Late submission, inaccurate Data, or missing Reports Will trigger Penalties.

 

 

Penaltiesand Risk Exposure

Non-Compliance exposes Owners to financial Penalties calculated based on excess Emissions and Reporting failures. Since the first Limits came into effect in 2024, a significant number of Buildings already exceed the thresholds.

Estimates indicate that:

• 10,000 to 15,000 Buildings do not currently Meet the Limits
• By 2030, up to 35,000–40,000 Covered Buildings may face Compliance challenges

Managing risk is therefore a critical issue for Owners in York City.

 

Planning for Compliance and Carbon Reduction

Meeting the Requirements requires more than Annual Reporting. Owners must develop a structured Plan that accounts for current performance and future Limits.

A typical Compliance approach Includes:

• Analysis of Energy and GHG Data
• Evaluation of exposure across future Periods
• Identification of reduction Options
• Integration of Sustainability objectives

Early planning Helps reduce long-term cost and risk.

 

 

Energy Efficiency, Electrification and Upgrade Options

To Reduce Emissions and Meet Limits, Owners can Explore several technical Options, Including:

• Energy efficiency Upgrades
• Building Electrification
• Renewable Electricity sourcing
• Equipment replacement and system optimization
• BEAM-related pathways where applicable

Each option impacts Energy use, Carbon reduction, and Compliance differently.

 

Local Law 97 as a Long-Term Framework

This Law establishes a long-term framework that Will influence how Buildings are operated and upgraded over Time. As Limits tighten, proactive action Helps Owners align with City climate objectives while controlling Energy costs.

 

How Nexelec Helps with Local Law 97

Nexelec Helps Building Owners manage Requirements by providing access to Energy and Emissions Data, and monitoring tools.

Our solutions Help Owners:

• Track performance over Time
• Support Annual Reports
• Explore reduction Options
• Build a clear Sustainability Plan

 

Ongoing Obligations for NYC Buildings

The regulation is now fully enforced across New York City. Covered Buildings must continue to Report, Meet applicable Limits, and follow Department Rules. Owners are expected to explore available options to maintain alignment with evolving requirements over time.

Managing Energy performance, Emissions, and Compliance is now a permanent responsibility for Owners.