Frequently Asked Questions (FAQ) on Local Law 97 (LL97)

LL97 applies to:

• Buildings over 25,000 square feet
• Two or more buildings on the same tax lot that together exceed 50,000 square feet
• Two or more condo buildings in the same condo association that together exceed 50,000 square feet

Certain affordable housing and city-owned buildings have alternative compliance pathways, but they are still subject to emissions reduction goals.

• 2024-2029: The first emissions limits go into effect. Buildings must report compliance annually.
• 2030-2034: Stricter emissions caps come into force.
• 2035-2050: Additional tightening of limits, aiming for an 80% reduction in citywide emissions by 2050.

Failure to meet the 2024 benchmarks can result in penalties.

Buildings that exceed emissions limits face fines of $268 per metric ton of CO₂ over the cap. Additional penalties include:

• Failure to report emissions: $0.50 per square foot per month.
• False reporting: Up to $500,000 in fines and potential legal action.

Owners can reduce emissions by:

• Upgrading HVAC & Heating Systems (electrification, heat pumps, high-efficiency boilers)
• Improving Insulation & Windows (reducing heating/cooling loss)
• Switching to Clean Energy (solar, wind, battery storage)
• LED Lighting & Smart Controls (reducing electricity usage)
• Building Retrofits (efficient chillers, BMS systems, demand-response technology)
• Engaging in Carbon Trading (Future Program) (NYC may allow buildings to offset emissions through green credits)

Buildings should conduct an energy audit and create a decarbonization roadmap.

Yes! Financial programs can help offset costs, including:

• NYC Accelerator: Free advisory services for energy efficiency upgrades.
• Con Edison & NYSERDA Rebates: Grants for energy-efficient HVAC, lighting, and renewables.
• PACE Financing: Low-cost financing for energy upgrades with repayment through property taxes.
• Federal IRA Tax Credits: Incentives under the Inflation Reduction Act for building electrification.

Industry professionals are crucial in helping buildings meet LL97 requirements by:

• Conducting GHG audits & benchmarking
• Designing high-performance buildings
• Implementing energy-efficient retrofits
• Advising on green building materials & systems
• Ensuring long-term sustainability strategies

• 1. Assess Current Emissions: Work with an energy consultant to benchmark building performance.
• 2. Develop a Compliance Plan: Identify retrofits and upgrades needed before 2024 and 2030 deadlines.
• 3. Secure Funding & Incentives: Apply for rebates, financing, and grants to offset costs.
• 4. Implement Upgrades: Prioritize projects that have the highest impact on emissions reduction.
• 5. Report & Monitor Progress: Submit annual reports to the city and track improvements over time.

• Increased Property Value: Green buildings attract higher rents & occupancy rates.
• Lower Operating Costs: Energy-efficient buildings cut down utility expenses.
• Environmental Impact: Compliance contributes to NYC’s carbon neutrality goal.
• Competitive Advantage: Buildings that adapt early will avoid penalties and future compliance headaches.

Local Law 97 (LL97), enacted as part of New York City’s Climate Mobilization Act, mandates significant reductions in greenhouse gas (GHG) emissions for buildings over 25,000 square feet. Given that heating, ventilation, and air conditioning (HVAC) systems are major contributors to a building’s energy consumption and carbon footprint, LL97 has direct implications for HVAC operations.
Key HVAC-Related Provisions Under LL97 include:

• 1. Emissions Caps:
  • Starting in 2024, LL97 sets specific GHG emissions limits for buildings, calculated based on occupancy type and square footage. Buildings must assess their current emissions, with HVAC systems being a primary focus due to their substantial energy use. Reference: Welcome to NYC.gov | City of New York

• 2. Energy Audits and Retro-Commissioning:
  • To identify inefficiencies, building owners are encouraged to conduct comprehensive energy audits. Retro-commissioning of HVAC systems ensures they operate as intended, optimizing performance and reducing emissions. Reference: DecarbNY

• 3. Prescriptive Energy Conservation Measures:
  • For certain buildings, especially those with affordable housing units, LL97 outlines specific measures, including:
  • Adjusting temperature set points for heating and hot water to appropriate levels.
  • Repairing all heating system leaks.
  • Installing or upgrading steam system master venting.
  • Insulating all pipes for heating and/or hot water.
  • Installing indoor and outdoor heating system sensors and boiler controls for proper set-points.
  • Replacing or repairing all steam traps to ensure they are in working order.
  • Installing timers on exhaust fans.
  • Installing radiant barriers behind all radiators.
  • Weatherizing and air sealing, including windows and ductwork, focusing on whole-building insulation.
  • Upgrading lighting to comply with the New York City Energy Conservation Code at the time of installation.
  • Reference: Building Energy Exchange –

• 4. Electrification and Renewable Energy Integration:
  • Transitioning from fossil fuel-based HVAC systems to electric alternatives, such as heat pumps, can significantly reduce emissions. Integrating on-site renewable energy sources, like solar panels, further enhances sustainability. Reference: DecarbNY

• 5. Financial Incentives and Support:
  • Programs like the NYC Accelerator offer guidance and resources for building owners to implement energy efficiency measures. Additionally, financing options such as Property Assessed Clean Energy (PACE) can assist in funding HVAC upgrades. Reference: DecarbNY

Action Steps for Building Owners to Take:

• Assess Current HVAC Performance: Conduct energy audits to identify areas for improvement.
• Plan and Implement Upgrades: Prioritize HVAC system enhancements that offer significant emissions reductions.
• Leverage Available Resources: Utilize city programs and financial incentives to support compliance efforts.
• Stay Informed: Regularly consult official NYC resources and updates to ensure adherence to LL97 requirements.

By proactively addressing HVAC-related aspects of LL97, building owners can achieve compliance, reduce operational costs, and contribute to New York City’s sustainability goals.

• NYC Mayor’s Office of Sustainability: www.nyc.gov/LL97
• NYC Accelerator Program: www.nycaccelerator.com
• NYSERDA Energy Programs: www.nyserda.ny.gov
• Ice Air New York Central: https://www.ice-air.com/nycentral/
• Ice Air Ask Glen LL97 AI Bot: https://www.ice-air.com/ll97-ai-bot/

Local Law 97 is here to stay, and early action is key. Whether you’re a building owner, developer, or architect, understanding LL97 and preparing for compliance now will help avoid penalties, reduce costs, and future-proof your property.

Need expert guidance? Connect with Ice Air sales@ice-air.com.