How to Reduce Local Law 97 Emissions: The Cheapest Fixes First

By FeeWarden. Updated 2026-10-10. Figures come from the Local Law 97 text and the method we use.

Short answer: Start with the free and low-cost steps: check your reported data, tune controls and schedules, upgrade lighting, then improve the envelope and heating plant. Electrification cuts the most and gets better in 2030. Each ton you cut saves $268 a year in penalties.

Start with the math: what a ton is worth

Each tCO2e you cut saves $268 a year while the building is over its limit. A 100 tCO2e cut is worth $26,800 a year. Compare that number with a project's cost to see how fast it pays back. Penalty savings are only one benefit. Lower energy bills are usually the other.

The cheapest fixes first

Check your reported data. Errors in the energy filing, such as a wrong floor area or a missing meter, change the estimate. This costs nothing and can move the number. See the filing dates.
Tune operations. Controls, schedules, setpoints and ventilation are the classic low-cost savings. A retro-commissioning study finds them.
Lighting. LED upgrades cut electricity directly and add less cooling load.
Building envelope. Air sealing and roof, window and wall insulation reduce the load every system has to meet.
Heating plant. Replace oil with gas or a more efficient system, add heat recovery, and look at hot water, often a large share of apartment-building use.
Electrify. Heat pumps for heating and hot water give the largest cut for buildings burning gas or oil.
Look at the rules. Renewable energy credits can cover part of electricity emissions within limits, and good faith efforts may help owners with a compliance plan. Confirm details with DOB.

Costs vary a lot by building. Get quotes before choosing, and treat the order above as a starting point, not a rule.

Why electrification gets better in 2030

The emissions factor of electricity per kBtu of delivered energy is 0.0000847 tCO2e in 2024 to 2029 and 0.0000425 tCO2e from 2030, against 0.0000531 for natural gas.

In 2024 to 2029, a unit of electric heat produces about 1.6 times the CO2e of a unit of gas heat, so a heat pump has to deliver more than 1.6 units of heat per unit of electricity just to break even. From 2030, electricity is cleaner than gas per unit, so any heat pump that delivers at least one unit of heat per unit of electricity cuts emissions, and good heat pumps deliver much more.

Where to get help

NYC Accelerator provides free technical advice to owners and managers of large buildings. For an estimate of where your building stands first, start with your 2030 number.

Frequently asked questions

What is the cheapest way to cut Local Law 97 emissions?

Start with no-cost and low-cost work: check the energy data you report, tune building controls and schedules, and fix lighting. Bigger projects like electrification cost more but remove the most emissions.

Does switching from gas to electric reduce penalties?

From 2030, usually yes. Per unit of delivered energy, electricity emits about 1.6 times as much CO2e as gas in 2024 to 2029, and about 0.8 times as much from 2030, before counting heat pump efficiency.

How much is each ton of emissions worth?

$268 a year. Cutting 100 tCO2e a year avoids $26,800 a year in penalties, for as long as the building would have been over its limit.

Is there free help for NYC building owners?

NYC Accelerator offers free advice to owners of large buildings on meeting Local Law 97. Check its site for current programs.

Sources

Calculate your own penalty or look up a building by address.