In 2019, the DiBlasio administration passed Local Law 97 under the Climate Mobilization Act. In attempt to drastically reduce carbon emissions in the city, LL97 is designed to place emission limits and benchmarking on buildings greater than 25,000 sf. With the city’s ambitious plans to reduce citywide carbon emissions by 40% by 2030 and 80% by 2050, building owners now must either choose to retrofit their buildings to make them more efficient, trade emission rights to meet caps or pay hefty fines.
New technologies, companies, incentives and costs makeup a whirlwind of complexities that factor into a manager’s current approach. Managers should immediately asses the financial feasibility of less intrusive efficiency procedures, such as green roofs or solar. Any amount of work that can be done to save now can go a long way or even save time as the greater 20% of emitters will be the first subject to penalties if they fail to meet standards or trade in phase 1 of the rollout in 2024.
For a comprehensive breakdown on how this law will directly affect various property types you can visit Urban Green’s FAQ page here. Property managers around the city must insulate and electrify outdated and inefficient heating systems or closely monitor emission trading policy news as it slowly comes out. The city’s carbon trading program has yet to be solidified.
With glaring costs and installation fees, intrusive work like electrifying your buildings HVAC system may simply not be financially feasible for most building owners. Luckily new technologies like cold climate heat pumps are becoming more efficient and affordable, and there is help. Startups at the forefront of this emerging market are supplying intermediary services bundling the entire service from start to finish, taking away the pain of contracting different engineers, installation crews, technologies and financing. While initial costs may seem steep financing these projects most likely will generate savings in the long run.
Both the city and the state recognize the financial hardship LL97 places on property owners and managers. For both insulation and heating and cooling the city and state are providing incentives for buildings hoping to improve their energy envelope. NYSERDA has partnered with energy companies, to make obtaining efficiency projects such as green roofs, on site solar systems and heat pumps more affordable. it is imperative to keep up to date with NYSERDA and their offerings. Neighborhoods and areas around the city are continually subject to different and extra offerings based on collective energy demand in the area.