What Is the NYC Local Law 97 Penalty and How Is It Calculated?
By FeeWarden. Updated 2026-10-10. Figures come from the Local Law 97 text and the method we use.
Short answer: Local Law 97 charges $268 for each metric ton of CO2 equivalent a building emits above its annual limit. Penalty = (emissions − limit) × $268, and it is zero when emissions are at or below the limit.
What the penalty is
Local Law 97 of 2019 sets a yearly cap on the greenhouse gas emissions of most New York City buildings over 25,000 gross square feet. If a building emits more than its cap, the owner pays $268 for each metric ton of CO2 equivalent (tCO2e) over the cap, every year.
Two buildings can be the same size and owe very different amounts. The cap depends on what the building is used for, and the emissions depend on how much gas, oil, steam and electricity it burns or buys.
How the penalty is calculated, step by step
- Emissions. For each energy source, multiply the year's use by its emissions factor, then add the results. Emissions factors for 2024–2029: electricity 0.000289 tCO2e per kWh, natural gas 0.0000531 tCO2e per kBtu.
- Limit. Multiply the building's gross floor area by the limit per square foot for its occupancy group. Mixed-use buildings add up each use separately.
- Overage. Subtract the limit from emissions. If the answer is zero or negative, the penalty is zero.
- Penalty. Multiply the overage in tons by $268.
The Department of Buildings (DOB) publishes this example: a building that emitted 1,371.53 tCO2e against a limit of 1,148.68 tCO2e was 222.85 tCO2e over, so the penalty was 222.85 × $268 = $59,723.80.
A worked example with round numbers
Take an apartment building (occupancy group R-2) of 100,000 square feet. The building's energy use is the same in both periods. Only the rules change.
| Period | Emitted (tCO2e) | Limit (tCO2e) | Over (tCO2e) | Penalty a year |
|---|---|---|---|---|
| 2024–2029 | 665 | 675 | 0 | $0 |
| 2030–2034 | 493 | 407 | 86 | $22,957 |
The building is under its cap now and over it from 2030, with no change in energy use. That is why 2030 matters. See how much your building could owe in 2030.
Who has to follow the cap
Most buildings over 25,000 gross square feet are covered. So are some groups of buildings on one tax lot, or condo buildings under one board, that together exceed 50,000 square feet. Some buildings, including many rent-regulated buildings and houses of worship, follow a separate pathway of required measures instead of an emissions cap. DOB decides which pathway applies to a building.
What the penalty does not include
The $268 figure covers only emissions over the limit. Failing to file the annual report, or filing false information, carries separate penalties. Owners who show a good faith effort to comply may qualify for relief under DOB rules, so check with DOB or a registered design professional before treating an estimate as a bill.
Estimates on this site assume the energy use in a building's latest benchmarking filing stays the same. They are planning figures, not determinations by the city.
Frequently asked questions
How much is the Local Law 97 penalty?
$268 for every metric ton of carbon dioxide equivalent (tCO2e) a building emits above its annual limit. There is no penalty when emissions are at or under the limit.
Is the penalty charged every year?
Yes. It is assessed each year a building is over its limit, so a building that stays over pays again every year.
Is there a separate penalty for filing late?
Yes. Missing the annual report is penalized separately, at $0.50 per square foot for each month it is late, even if the building is under its limit. See the deadlines guide for the dates.
Does every large building pay the same limit?
No. The limit is the building's floor area times a limit per square foot, and that number depends on the occupancy group, such as apartments, offices or hospitals.
Sources
Calculate your own penalty or look up a building by address.