NYC Local Law 97: what it is and who pays
Local Law 97 of 2019 caps the greenhouse gas emissions of most large New York City buildings. A building that emits more than its cap pays a penalty every year.
Who it covers
Most buildings over 25,000 gross square feet, and some groups of smaller buildings on the same tax lot or under shared ownership. Some buildings, such as many rent-stabilized buildings, follow a prescriptive pathway of required measures instead of an emissions cap. The Department of Buildings decides which pathway applies.
The limits
Each building gets a limit in tCO2e (metric tons of carbon dioxide equivalent) per year. It is the building's floor area times a limit per square foot that depends on occupancy group.
| Occupancy group | 2024–29 | 2030–34 | Drop |
|---|---|---|---|
| A (assembly) | 0.01074 | 0.00420 | 61% |
| B (business), other than group 6 uses | 0.00846 | 0.00453 | 46% |
| E (educational) and I-4 | 0.00758 | 0.00344 | 55% |
| I-1 (24-hour residential care) | 0.01138 | 0.00598 | 47% |
| F (factory and industrial) | 0.00574 | 0.00167 | 71% |
| B emergency services, non-production lab, ambulatory health care; H; I-2; I-3 | 0.02381 | 0.01193 | 50% |
| M (mercantile) | 0.01181 | 0.00403 | 66% |
| R-1 (transient residential) | 0.00987 | 0.00526 | 47% |
| R-2 (apartments) | 0.00675 | 0.00407 | 40% |
| S (storage) and U (utility) | 0.00426 | 0.00110 | 74% |
Read from the law text. The law lets the Department of Buildings adjust the later period by rule, so confirm before relying.
The penalty
The penalty is $268 for each tCO2e above the limit, every year. The Department of Buildings' enforcement guide gives this example: 1,371.53 tCO2e emitted minus a 1,148.68 tCO2e limit is 222.85 tCO2e over, and 222.85 × $268 = $59,723.80.
What changes in 2030
The limits fall again in 2030. For the occupancy groups above they drop about 40% to 74%. The electricity emissions factor also changes, from 0.000289 to 0.000145 tCO2e per kWh, which helps electric buildings. Buildings that burn gas or oil feel the tighter limit most.
Ways owners reduce a penalty
- Cut energy use with efficiency upgrades.
- Replace gas or oil heating with electric systems.
- Use renewable energy credits where the rules allow, within limits.
- Apply for an adjustment or a different pathway if the building qualifies.