What is Local Law 97?

Local Law 97 (LL97) caps carbon emissions from NYC’s biggest buildings, both new and existing. It covers approximately 50,000 properties. It is an outcome-based requirement, with steep penalties for non-compliance.

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Beginning in 2024, NYC will require buildings over 25,000 sq ft to cap their CO2e emissions by 0.0064 tons CO2e/sf, which will increase to 0.00675 tons CO2e/sf in 2030 for multi family buildings (caps vary by building type). The penalty is $268/ton annually.

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These emissions can be reduced by energy efficiency measures (e.g. heat pumps, higher R value insulation), buying renewable energy credits (RECs) sourced or sinking into the NYC Zone J load zone, or deductions for purchase of greenhouse gas offsets (up to 10 percent of limit, likely from Verra and Gold Standard).

 

RECs are limited to energy generated or sinking into the NYC grid. The law allows up to 100 percent offset of building emissions through the purchase of RECs from a source. The full text of the law can be found here.