Research Paper
I. Introduction
1. Background:Local Law 97
2. Thesis statement: Buildings generate nearly 70% of annual global CO2 emissions. Local law 97 can help limit GHG, aid in a net-zero carbon economy by 2050 and build a better city.
Results: examine the history of the law, public and political support for its enactment, its amendments over the years, and its details. What does it require? What are its enforcement mechanisms? What has been its impact on public health and environmental quality? How have we measured progress? What obstacles have arisen in its enforcement? From where has the opposition arisen? What are its shortcomings? What is the state of the contemporary debate on the law? And how has the law impacted the urban environment in particular?
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Local Law 97
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LOCAL LAW 97
Rahsaan Browne
May 9, 2022
Environmental Activism and Urban Sustainability - Special Topics in Real Estate
Professor William Hewitt-Spring 2022
2. 1
Local law 97
Commercial and Residential buildings generate nearly 40% of annual global CO2
emissions. Local law 97 can help limit Green House Gas emissions, aid in a net-zero
carbon economy, and build a better New York City. All buildings greater than 25,000
square feet are required to satisfy aggressive carbon reduction objectives by the year
2050.
Climate Mobilization Act 2019 (CMA).
New York City produces over 50 million tons of carbon dioxide a year, more than
half of which is a by-product from its commercial buildings which are the leading carbon
emissions sources in the city. New York City’s legislation is seeking to address this with
laws aimed to convert a change in the commercial real estate building space.
The Climate Mobilization Act, 2019 is a series of 5 laws aiming to help buildings
become more efficient. This research paper will focus on Local Law 97, the centerpiece
of “The Climate Mobilization Act” and where we are today.
What is NYC doing to prevent climate change?
As one of the country’s largest cities and financial centers, New York City has
been a pioneer for climate change for over a decade. Our city's administration has always
had a sense of what needs to be done to benefit future generations. Dating back to the
Bloomberg administration.
“A Greener Greater New York” was an NYC plan to address land, water,
transportation and congestion, energy air, and climate change issues. Reduction of energy
usage in buildings was also included in this plan. The goal was to:
Reduce energy consumption in buildings by 16.4 million metric tons. Improve the
efficiency of existing commercial buildings, require newly constructed buildings
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to have energy-efficient appliances, and increase energy awareness through
education and local training. (Bloomberg)
One interesting piece of the legislation included “Implementing climate adaptation
strategies into the NYC Building Codes”. This innovative initiative would’ve been
astounding as many feel the NYC Building code system is antiquated. (Bloomberg)
During the previous administration, Mayor de Blasio’s plans are discussed below
along with further details concerning the current Local Law 97. Currently, New York
City's new mayor, Eric Adams is adhering to the plan and has also established a “climate
czar”, Rohit T. Aggarwala as his chief climate officer and commissioner of the New York
City Department of Environmental Protection (DEP). Mayor Adam’s plans include:
Installing 100 megawatts of solar panels on NYC schools, libraries, community
centers, and other public buildings to expand citywide resiliency initiatives and
infrastructure. Breaking construction on a massive clean energy complex and
completing New York City's first comprehensive research on environmental justice at
the Wards Island Water Resource Recovery Facility. (Office of the Mayor)
The Climate Mobilization Act, of 2019
The Climate Mobilization Act, 2019 is a series of 5 progressive New York City laws
aiming to help buildings become more efficient. It covers local Laws 92 and 94 which
pertain to Green Roofs requiring solar panels, green roofs, or a combination of the two to
be installed on all new buildings and those undergoing substantial roof remediation
rehabilitation or modifications. All buildings must also comply with the legislation to
prevent urban heat concerns. Local Law 95 which amends Local Law 33 of 2018,
modifies the ranges for how energy efficiency grades are determined. Local Law 33 of
2018 mandated that energy efficiency scores and grades be shown for all buildings that
are required to benchmark their energy and water use yearly. The energy label would be
placed at a public entrance and would include a letter grade as well as a score for energy
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efficiency. Local Law 96 offers long-term, low-interest Property-Assessed Clean Energy
(PACE) financing to support buildings' energy and water efficiency improvements. And
finally, “The Building’s Mandate” Local Law 97. This research paper will focus on Local
Law 97 “The centerpiece of the Climate Mobilization Act” (NYC.GOV Local Law 97
Legislation)
Important deadlines for the New York City Climate Mobilization Act, of 2019
NYC has set different deadlines to assist with the ongoing process of bringing
these buildings up to code and compliance. The current timeline began in April 2019:
April 2019
The Mayor's Office of Climate and Environmental Justice, in collaboration with the New
York City Energy Efficiency Corporation (NYCEEC), offers NYC Accelerator PACE
Financing. PACE (Property Assessed Clean Energy) is an innovative financing method
that assists commercial and multifamily property owners in funding energy efficiency
and renewable energy projects. It provides long-term, fixed-rate financing that can cover
up to 100% of a project's expenditures with no financial outlay from the owner. (NYC
Accelerator Pace Financing.)
October 2020
All buildings over 25,000 square feet and numerous structures on a single property
totaling at least 100,000 square feet must display energy rating signs at each public entry
by October 31st, according to this New York City law. (LaRocca)
2021
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All regulated entities are expected to acquire or obtain enough carbon credits to cover
their yearly emissions under carbon allowance-based trading systems. Auctions would
commonly be used to distribute allowances. (Urban Green Council)
June 30, 2021
Some buildings may be eligible for a modification to their emissions limitations if they
have specific conditions that cause them to use more energy. Special conditions may
include but are not limited to, 24-hour operations, operations important to human health
and safety, high-density occupancy, energy-intensive communications technology, or
activities, and so on. Under the Energy Code, energy-intensive industrial activities are
usually classified as an unregulated load. (NYC.GOV Adjustments)
2023
Rules to establish NYC emissions limits and consider factors for 2030 and beyond.
Jan 1, 2024
Emissions limitations under NYC Local Law 97 go into effect immediately on this date.
May 1, 2025
Compliance reports for NYC buildings are due on May 1st, with the following reporting
due on May 1st each subsequent year.
Dec 31, 2026
Prescriptive path implementation deadline.
2030
Emission regulations grow more restrictive in this second compliance period benchmark.
2050
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Over time, the measures and restrictions for emissions will be fine-tuned. (First Service
Residential Consulting)
NYC Local Law 97
Climate science has taught us that Buildings account for approximately two-thirds
of greenhouse gas emissions in New York City and the former Mayor de Blasio had
pledged to address these emissions as part of his plan to make the city carbon neutral by
2050. The current NYC mayor, Eric Adams is also following suit continuing with these
same benchmarked initiatives.
Societal benefits included in Local Law 97 are limiting the usage of fossil fuels
and the CO2 emissions that come with them. This minimizes our climate's influence and
the necessity for resource extraction. The palpable health benefits are lowering the
systemic health concerns produced by continued exposure to poor air quality. As a
national leader, New York City can set nationwide standards to ensure the path of every
city to cleaner emissions.
The benefits to building owners will be enhanced real estate values resulting in
the ability to charge premium pricing per square foot for retrofitted and updated
buildings. This in turn will increase value and property tax revenue for the city and the
state.
Local Law 97 provides guidance, finance, and strict compliance timelines to
building owners of 25,000 square feet or larger structures. Emissions limitations under
NYC Local Law 97 begins on Jan 1st
, 2024, and go into effect immediately on this date.
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Building owners were notified in 2019 and given a variety of options, choices, and dates
to comply with the impending regulations. Building owners would have to modernize and
upgrade their energy systems to comply with the new requirements. By 2030, the target is
to reduce emissions by 40%, and by 80% by 2050.
According to this New York City rule, all buildings over 25,000 square feet and
several structures on a single site totaling at least 100,000 square feet must show energy
rating signs at each public access by October 31, 2020. In NYC, many buildings post
these signs at entranceways similar to the NYC Dept. Of Health restaurant rating notices.
Under a carbon allowance-based trading system, all regulated buildings are
intended to purchase or obtain enough carbon credits to offset their annual emissions by
2021. Allowances will be distributed through auctions. Simply put, buildings that are
unable to meet emission requirements may be able to receive auctioned credits from other
buildings to offset their emissions.
By June 30th,
2021, if a building had special factors that lead it to require more
energy, it may be eligible for a change to its emissions limits. Special circumstances may
include, but are not limited to, 24-hour operations, operations critical to human health and
safety, high-density occupancy, energy-intensive communications technology, or
activities, among others. Industrial operations that use a lot of energy are normally
classified as uncontrolled load under the current Energy Codes. (NYC.GOV Local Law
97 of 2019))
New York City emission limits will be established in 2023, with variables for
2030 and beyond considered. Complying with Local Law 97 may seem difficult, and the
tasks ahead may seem daunting. But New York City has pledged 100% financing options
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to building owners through the “PACE” program. Additionally, there is a multitude of
consulting and sustainability firms assisting owners to come into compliance. Local Law
97 will be enforced by the NYC Office of Building Energy and Emissions Performance.
This newly created agency will begin to assess and monitor building energy usage and
protocols as well as work collectively with other New York City agencies such as; the
Department of Environmental Protection, the Department of Housing Preservation and
Development, and the Department of Citywide Administrative Services. This intra-
agency collaboration would give the city the necessary resources and tools to enforce and
administrate collectively. In addition, a new online portal will be built to assist owners.
(NYC. Gov. “Local Law 97 of 2019)
The overall impact on public health and environmental quality has not yet been
measured as there are over 30 years of compliance assessing remaining in the initiative.
However, the goal is to continue NYC’s long-term commitment to clean air and reduce
emissions that affect us nationally and globally.
Building performance standards require structures bigger than a specific size to fulfill
an energy efficiency requirement depending on how much carbon they release or how
much energy they consume. Heating, ventilation, and air conditioning are the three
largest sources of energy used in buildings. Local Law 97 helps to mitigate this by
providing the infrastructure and tools for every owner as no one solution may fit all. In
my interaction with commercial building owners, there hasn’t been a lot of push-back
from those who are educated and aware of the financing and compliance assistance
available through the city and other agencies.
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In conclusion, buildings generate nearly 40% of annual global CO2 emissions. NYC’s
Local Law 97 can help limit Green House Gas, aid in a net-zero carbon economy by 2050
and build a better city. With a compliance timeline and benchmarked dates, the
contemporary reception of the program has been received well. The data has always
shown that coal, oil, and natural gas, cause higher death rates and higher levels of
greenhouse gas emissions with a negative impact on the urban environment. Bringing
these large structures into compliance will aid in decreasing the production of associated
air pollution and greenhouse gas emissions. New York City serves as a leader and
example with this progressive legislation. Other cities are beginning to emulate this same
behavior and process. Cities all along the east coast from “South Carolina to New
Hampshire have followed suit”. All these cities have committed to 100 percent clean,
renewable energy. (U.S. News)
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Works Cited
Bloomberg, Michael R. “Welcome to Nyc.gov | City of New York.” A Greener Greater New
York. Plan NYC. 2007
http://www.nyc.gov/html/planyc/downloads/pdf/publications/full_report_2007.pdf.
First Service Residential Consulting. “New York's Climate Mobilization Act: Frequently Asked
Questions.” FSR, July 14, 2021. https://www.fsresidential.com/new-york/news-
events/articles-and-news/new-york%E2%80%99s-climate-mobilization-act-frequently-
ask/.
La Rocca, Melanie E. “New Energy Letter Grades Out Today!” Buildings news update - October
1, 2021. Melanie E. La Rocca Commissioner, October 1, 2021.
https://www1.nyc.gov/assets/buildings/newsletters/DOB_BN_100121.html.
NYC Accelerator Pace Financing.” NYC Accelerator PACE Financing | NYC Accelerator.
Mayor’s Office of Climate and Environmental Justice. 2019
https://accelerator.nyc/resources/finance/pace.
NYC. Gov. “Adjustments.” Adjustments - Sustainable Buildings, 2021.
https://www1.nyc.gov/site/sustainablebuildings/requirements/adjustments.page.
NYC. Gov. “Local Law 97 of 2019 - New York City.” Local laws Of the City Of New York For
The Year 2019. NYC.Gov, 2019.
https://www1.nyc.gov/assets/buildings/local_laws/ll97of2019.pdf.
NYC.Gov. “Local Law 97 Legislation.” Legislation - Sustainability. NYC.Gov, 2019.
https://www1.nyc.gov/site/sustainability/legislation/legislation.page.
“Office of the Mayor: Overview: City of New York.” Office of the Mayor | Overview | City of
New York, January 31, 2022. https://www1.nyc.gov/office-of-the-mayor/index.page.
U.S. News. 10 Cities Leading the Fight Against Climate Change. U.S. News, December 6, 2018.
https://www.usnews.com/news/cities/slideshows/10-cities-leading-the-fight-for-clean-
energy?slide=6.
Urban Green Council. A New Climate Solution For Buildings. Urban Green Council, June 2020.
https://www.urbangreencouncil.org/sites/default/files/trading_report_urban_green_2020.
pdf.