NYC Building Owners Could Face Hundreds of Millions in Fines Under Local Law 97

Thousands of properties are on track to be out of compliance with New York City’s buildings emissions law, Local Law 97, by 2030, even with significant investments to improve energy efficiency or purchase renewable energy credits, according to a study commissioned by the Real Estate Board of New York.   

The study found that as soon as next year, 3,700-plus properties could be out of compliance and face more than $200 million in penalties annually. By 2030, this number grows to greater than 13,500 properties that cumulatively could face penalties as high as $900 million annually. 

Although some argue that building owners can achieve compliance with the law relatively easily, the study found that substantial investment in energy efficiency won’t be enough for many buildings to achieve compliance. According to the study, by 2030, if every building reduces its energy consumption by 15%, more than 11,400 buildings will still be out of compliance and owe fines of $576 million each year.   

“While real estate industry leaders continue to work diligently to reduce emissions from their buildings, this study should be a wakeup call that Local Law 97 is not designed to secure the emissions reductions we need,” said REBNY VP of Policy Zachary Steinberg.