LOCAL LAW 97 GREENHOUSE GAS EMISSIONS REDUCTION

WHAT IS LOCAL LAW 97?

Local Law 97 of 2019 as amended (LL97) requires buildings greater than 25,000 square feet to meet new GHG emissions limits beginning in 2024, with stricter limits coming into effect in 2030. The goal is to reduce the emissions produced by the City’s largest buildings by 40 percent by 2030 and to net zero by 2050. LL97 requires these buildings to file a report with the Department by May 1, 2025 detailing their annual GHG emissions and then by May 1 of every year after. The report must be certified by a registered design professional. There are multiple compliance pathways for different types of buildings broken down into two Articles, Article 320 and Article 321:

Article 320 (All properties subject to LL97)
Article 320 (2026 Rent Regulated Properties)
Article 320 (2035 Income Restricted Properties)
Article 321 (Certain Categories of Affordable Housing and Houses of Worship)

Determining what pathway your building should follow is the first step to compliance. Once this is determined, you can follow the Local Law 97 Compliance Report Process.

Local Law 97 (LL97) Compliance Report Submission Process

A building’s Local Law 97 (LL97) compliance report will be considered fully submitted
after the following steps are completed:

DOB NOW registration, fee payment

EnergyStar Portfolio Manager Registration (If not already done)

BEAM Registration

Upload Supporting Documentation in BEAM

Attestation

Department Review

The Applicant must register for a DOB NOW account if they have not previously done so. LL97 filing fees are paid in DOB NOW in a similar manner to other Department of Building (DOB) filing fees. Information is then sent to BEAM by DOB NOW to unlock a building’s reporting functionality.

The Applicant must register for EnergyStar Portfolio Manager and create a property profile for the building if one does not already exist for Local Law 84 benchmarking purposes.

The Applicant must register for BEAM using the same credentials (Borough- Block-Lot (BBL), BIN, and email account) used for DOB NOW and EnergyStar Portfolio Manager registration. Applicants with multiple buildings will be able to monitor compliance across their portfolio.

Article 321 Prescriptive Pathway (§28-321.2.2) Registered Design Professionals (RDPs) or Retrocommissioning Agents
(RCxAs) upload the Prescriptive Energy Conservation Measure (PECM) templates and any supporting documentation (as required in the template) into BEAM. EnergyStar Portfolio Manager data is not needed for this compliance pathway.

All other LL97 compliance report submissions

Determine greenhouse gas (GHG) emissions limits

While BEAM will have primary property type and total gross square footage as provided through EnergyStar Portfolio Manager, Local Law 97 may require an RDP to subdivide the data into more granular property types together with associated square footage (as measured in accordance with gross floor area). Floor plans and
stacking diagrams showing the subdivision of the building’s property types must be uploaded in BEAM and attested to by the RDP; Department of Finance (DOF) gross square footage (gross floor area) numbers are not acceptable supporting documentation.

Once entered into BEAM, BEAM will automatically calculate a building’s emissions limit using emissions factors from the current compliance period (CY2024 – 2029).

For buildings submitting compliance reports pursuant to Article 321, §28 321.2.1, BEAM will automatically calculate a building’s emissions limit using emissions factors from the 2030 compliance period.

Adjusted Limits

Adjustments for 320.8 or 320.9 - For buildings that received a §28-320.8 or §28 320.9 adjustment, BEAM will allow the Applicant to indicate the adjustment was received. The Applicant will then input the adjusted limit and the DOB NOW Adjustment Application number. These limits will be validated by DOB during the
application review.

For buildings on the DOF’s annual New York City Tax Lien Sale List, BEAM will allow the Applicant to indicate this.

For all other buildings, such applications require, at a minimum:

1. Annual building emissions report for the prior year certified by RDP.
2. Confirmation the building was built prior to 11/15/2019
3. Documentation from NYC Accelerator confirming:
a. Description of measures to be taken that will result in LL97 compliance.
b. Identified incentives for such work.
4. Confirmation the maximum allowable amount of greenhouse gas offsets or renewable energy credits were purchased.
5. For External Constraints:
a. DOB provided template, attested by RDP, describing the conditions of the adjustment and requested adjusted limit with supporting analysis.

6. For Financial Constraints:
a. DOB provided template, attested by certified public accountant, describing financial conditions as indicated in RCNY 103-12 Note: Additional guidance on the Article 320.7 Adjustments is forthcoming.

Determine GHG emissions – Simple

“Simple” means that no modifications to the basic formulas and information described below are required.

Emissions are automatically calculated in BEAM using the annual energy consumption data imported from ESPM, and the energy source coefficients provided by LL97.

For buildings that purchased offsets up to a maximum of 10% of their emissions limit, the Applicant must upload to BEAM a copy of that year’s payment receipt and enter the amount of offsets purchased.

Renewable Energy Credits (RECs) are anticipated to become available in 2026 and further guidance will become available.

Determine GHG emissions – Complex

“Complex” means that additional considerations influence the basic formula, whether by choice or by circumstance, or the Applicant is submitting a combined report for a BBL that contains more than one BIN. Supporting documentation must be submitted to substantiate the additional considerations, some examples of which are listed below:

Multiple buildings on one lot – Applicant uploads a combined report to BEAM as verified in DOB NOW during the filing fee payment.
Shared energy service – Applicant must upload to BEAM site plan diagram(s) showing all buildings sharing energy service, including meter locations and fuel types, as indicated in the schematic in the Article 320 Info Guide Section III.C; and supporting annual utility bills.
GHG coefficients for campus-style systems – Applicant must upload to BEAM the DOB provided template for determining the GHG coefficients for campus-style energy and/or electric systems.
Time-of-Use (TOU) Methodology – Applicant must upload to BEAM the DOB provided template for calculating hourly emissions coefficients, and hourly utility data reported from the utility.
Distributed Energy Resources (DERs) – Applicant must upload to BEAM separate metering and reporting for solar and storage systems, including specifications for the equipment, whether credits have been sold, and utility information.
Beneficial Electrification – Applicant must upload to BEAM the DOB provided template for calculating the deduction; related permit numbers; and installed system specifications.
Qualified Generation (Cogen) Facilities – Applicant must upload to BEAM equipment specifications, including NOx emissions; metered electricity generation; metered utilized heat; and DOB provided template for calculating the system efficiency.

Unexpected or Unforeseen Event – Buildings that experience an unexpected or unforeseen event as defined by DOB by rule will need to submit proof of the event, including any issued DOB filings or permits related to the event.

BEAM will assess whether a building is under its calculated emissions limit. After reviewing the assessment, the Applicant must upload a signed attestation by the associated RDP or RCxA, as applicable, that the submitted information is
accurate to the best of their knowledge and ability.

Following submission of the LL97 Compliance Report, DOB staff will review the reports and documentation within BEAM for clarity, completeness, and compliance using standardized review templates for different applications. DOB staff assigned to the review will provide feedback or comments to the Applicant’s designated team as needed.

WHAT ARE THE PENALTIES FOR NOT COMPLYING WITH LOCAL LAW 97?

FOR BUILDINGS SUBJECT TO ARTICLE 320

A building must submit the annual building emissions report Penalty for noncompliance = (Floor Area x $0.50) per month.
A building must meet the annual emissions limit for that building Penalty for noncompliance = ((Actual Emissions – Emissions Limit) x $268) per year

FOR BUILDINGS SUBJECT TO ARTICLE 321

A building must submit the compliance report on time.
Penalty for noncompliance = $10,000
A building must demonstrate compliance with one of the two compliance pathways.
Penalty for noncompliance = $10,000

Ensure Your Building is Ready for Local Law 97.

With new GHG emissions limits starting in 2024, compliance is essential for buildings over 25,000 square feet.

FEAT Solutions can help you:

Stay compliant, cut emissions, and lead the way to a sustainable future. Let FEAT Solutions help your building meet the highest green standards.