Buildings over 25,000 square feet mandated to reduce carbon footprint

In the face of impending hefty fines, New York developers are working quickly to reduce carbon emissions in the city. A new law aimed at reducing greenhouse gas emissions was enacted in 2019, called Local Law 97. Any building over 25 000 square feet will be required to comply. If covered buildings do not comply with the new laws, they could face hefty fines. 

Local Law 97 is a very ambitious plan to reduce emissions in the city. Lincoln Restler, New York City Councilmember and Environmental Protection committee member, says, “Local Law 97 is the single most consequential piece of legislation in New York City in the last decade, and it has the potential to successfully drive down emissions from our city’s largest polluter: big buildings.” He adds: “New York City can be a model for how to tackle the climate crisis and create green jobs, and we need everyone in City government to do everything we can to fully implement and enforce Local Law97.” 

The first compliance deadline is currently set for May 1, 2025. At this point, the building owners will be required to report compliance with the previous year’s mandates. The goal of Local Law 97 is to reduce emissions from the largest buildings in the city by 40% by 2030 and 80% by 2050. 

Currently, most buildings subject to the law should meet the first compliance targets. However, there are still approximately 2700 buildings across the city where action is needed to avoid fines. This could include taking steps such as installing more efficient lighting, repairing broken windows, and ensuring heating systems are energy efficient. 

The emission thresholds will be significantly lower for the second deadline in 2030, and many more buildings will need to make significant changes to stay on the right side of the law. 

There still seems to be uncertainty over what exactly is required or the potential cost outlay. “We don’t really know what our obligations are and what our penalties are going to be,” said Debbie Fechter, a partner at Digby Management, a family-owned real estate business that has four buildings in Manhattan, subject to Local Law 97. 

Meanwhile, some New York residents are pushing back against this law, and some have taken the matter to court. Nevertheless, as it stands now, building owners are scrambling to ensure they are compliant when the law comes into effect.