75% of Buildings covered under LL97 will need to reduce their carbon emission to avoid fines.
In 2019, New York City passed the Climate Mobilization Act which included Local law 97 (LL97). LL97, going into effect in 2024, is a game-changing regulation for the real estate industry. This groundbreaking legislation mandates that all large buildings (>25,000 square feet) in the city reduce their carbon emissions --- all regulated through monthly disclosures.
Buildings in New York City are responsible for more carbon emissions than the transportation sector combined. In total buildings account for about 70% of the city's greenhouse gas emission.
The law aims to reduce the carbon footprint of the city's building stock with carbon caps. The caps will become increasingly stringent over time., with the goal of reducing emissions by 40% by 2030 and 80% by 2050.
Covered Buildings:
Buildings that exceed 25,000 gross square feet
Two or more buildings on the same tax lot that together exceed 50,000 square feet
two or more buildings owned by a condo association that are governed by the same board of managers and that together exceed 50,000 square feet.
Fines:
Fines to file a report - $0.50 per building square foot, per month
Exceeding your emission limit - $268 for each metric ton over the building's established limit
Providing false statements - $500,000
Implementation Time:
Covered buildings to comply with building emission limits on and after January 1st, 2024. By may 1st, 2025, and by May 1st of every year after that, the owner of the covered building must file a report with the department.
What LL97 means for Building Owners:
LL97 is a critical piece of legislation that has significant implications for the global real estate industry. The challenge for building owner is to keep their building's emissions below the limits set by LL97; and optimizing the building's energy usage is the most expedient way to do this. But many building owners are completely unprepared.
The New York City government estimates around 20-25% of buildings will exceed their emissions limits in 2024. By 2030, this could rise to 75-80% of buildings if no action is taken to reduce emissions. That leave very little time to prepare. Furthermore, action can only be taken only if building owners have a clear picture of their emissions in the first place. early planning will make the decision-making process much easier and will directly relate to better results.
We're here to Help! Request a FREE INSPECTION, and let's discuss how we can help you reduce your greenhouse gas emissions to comply with LL97.
For more information on Ll97, head to the NYC Sustainable Building page.