Building Owners May Face $900M in Fines by 2030 Under LL97

A recent study commissioned by the Real Estate Board of New York states that almost 4,000 buildings in New York City will exceed the energy consumption and carbon emission thresholds which will come into effect next year under Local Law 97 (LL97). It is expected that annual fines for building owners will total $900M by 2030 under LL97.


Local Law 97 (LL97) was passed into law in NYC in 2019 as part of the Climate Mobilization Act with the goal of reducing carbon emissions by 40% by 2030 and 80% by 2050. Building owners will be required to report the energy consumption of their properties annually for buildings with gross floor areas greater than 25,000 square feet. Carbon emissions thresholds for buildings are calculated based on the building type and gross floor area. Buildings which exceed the carbon emissions thresholds will be fined $268 for every metric ton of emissions that they exceed the threshold annually.


Local Law 97 (LL97) will be phased in beginning in 2025 – based on energy consumption for the calendar year 2024. It is estimated that approximately 3,700 properties will not achieve compliance in the initial reporting period of 2025 – 2029 with annual fines totally $213M. In the second reporting period of 2030 – 2034 it is estimated that 13,500 properties will be non-compliant and fines will total $900M per year.


Ryan Soames Engineering was recently contracted to assist one of our clients by recommending Energy Conservation Measures (ECMs) which if installed would reduce energy consumption at the property, improve their Local Law 33 (L33) energy efficiency letter grade and reduce the potential fines they would face for non-compliance with Local Law 97 (LL97). A number of ECMs were recommended by RSE, ranging from HVAC equipment control upgrades to lighting replacement measures. The total cost for the recommended measures was around $175,000. It was predicted that they would save around 25% of the building’s annual energy consumption and were predicted to save $75,000 per year from lower utility consumption.


Ryan Soames Engineering have been engaged to calculate the potential fines that our clients’ buildings will be liable for under Local Law 97 (LL97) based on their current annual energy consumption. The examples below illustrate the magnitude of the penalties building owners will face under this new law and how these fines increase over time:


38-story Midtown building, 306,000 s/f, 1983 construction
• The penalty between 2025-2029 is $0 per year
• The penalty between 2030-2034 is $104,983 per year
• The penalty from 2035 is $360,592 per year


10-story Downtown building, 116,000 s/f, 2016 construction
• The penalty between 2025-2029 is $3,388 per year
• The penalty between 2030 – 2034 is $126,835 per year
• The penalty from 2035 is $225,152 per year


Contact Ryan Soames Engineering today to review your energy needs.

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