Clear for Takeoff on Local Law 97

With 2024 in the books, 2025 becomes the year of reckoning for New York City’s most ambitious climate law. If any property owners need a refresher, please refer to our prior Local Law 97 (LL97) summary.

We are excited to present a two-part series to ensure no building is left behind on LL97 or subject to undue penalties:

• In this Part 1 piece, we will update you on the latest developments from the Department of Buildings on achieving successful compliance by May 1st.
• In Part 2 (to be released in the coming weeks), we will provide you with a list of accessible, immediate, action items that your Board can undertake to avoid pitfalls in the compliance process.

NYC’s Energy “Witching Hour”

May 1st, 2025 is the critical date for buildings 25,000 sq. ft. and over. On that day, three simultaneous pieces of energy compliance are due to the Department of Buildings (DOB):

• Local Law 84 (Energy benchmarking). This law has been in effect since 2009, requiring the submission of all energy and water data to the DOB every May 1st. This is completed via the online platform ENERGY STAR Portfolio Manager.
• Local Law 88 (Lighting & submetering). All common area lighting in buildings must adhere to NYC code. Any commercial tenant spaces over 5,000 sq. ft. must also be submetered. An engineer must verify these details in a one-time report.
• Local Law 97 (Building emissions report). Buildings must determine their annual carbon emissions for calendar year 2024, with all data and calculations verified by a Registered Design Professional (RDP). Emissions limits intensify in 5-year increments.

Note that the Department of Buildings recently announced a 60-day “grace period” for buildings to submit their Local Law 97 reports. That means buildings have until June 30th to submit without penalty. Beyond that, they can also apply for an extension until August 29th, so long as that extension request is submitted before June 30th. Some properties may be eligible to extend their Local Law 88 filing deadline as well.

Choosing the Right Compliance Pathway

Not all buildings are created equally in the eyes of the DOB. For Local Law 97, buildings will fall into one of the following categories, each with its own specifications and costs:

• Typical Pathway. Buildings must submit annual emission reports starting on May 1st, 2025 and every year thereafter.
• 2026 Rent Regulated ≤ 35%. Flexibility is granted to buildings where at least one unit (but not more than 35% of all units) is rent regulated. The first annual report is not due until May 1st, 2027.
• 2035 Income Restricted Extension. Buildings with ≤35% of rent regulated units and at least one income-restricted unit are not obligated to submit annual reports until May 1st, 2036.
• Article 321 Compliance. HDFCs and affordable buildings have a unique LL97 path. These properties must complete 13 Prescriptive Energy Conservation Measures (“PECMs”) or prove their emission limits are below the 2030 carbon threshold.

Using the BEAM Platform

The DOB has selected BEAM (Building Energy Analysis Manager) as the centralized platform for gathering and filing all Local Law 97 and Local Law 88 materials. This includes the actual building emissions reports and any supporting documentation (for example, photos of lighting upgrades for LL88 compliance, etc.).

BEAM is already in use nationally as a tool to aggregate energy data and simplify compliance. For NYC buildings, BEAM will integrate with Portfolio Manager, where all Local Law 84 energy benchmarking takes place. Through this connection, energy data will automatically flow into BEAM, which then calculates a building’s emissions limit for the given year. BEAM will also sync with the DOB NOW public portal, where buildings must pay the appropriate filing fees (see below) and any carbon penalty payments (if applicable).

Local Law	Explanation	Amount
Local Law 88 (One-Time Fees)	Report required upgrades to lighting systems, installation of sub-meter1	$115
Local Law 97 (Annual Filing Fees)	Simple Report: No changes needed to LL97 formula2	$210
	“Complex” Report: Custom changes needed for LL97 formula (e.g., multiple buildings on one lot; shared energy service; etc.)	$615
	Request for Extension: File later, under certain circumstance3	$60
	Good Faith Efforts Report: Part of the “Mediated Resolution” process to request mitigated penalties	$950

¹Local Law 88 requires all buildings 25,000 sq. ft. and over to ensure their lighting is up to code, and complete submetering in all commercial spaces over 5,000 sq. ft., with approval from an engineer.
²This should be the most prevalent Local Law 97 report style for market-rate, single-building condos and coops.
³Deadline extension requests are due by June 30th, 2025 and require that a Registered Design Professional (RDP) state that they have been hired to complete the work.

As of March 3, 2025, the BEAM platform is officially live for NYC buildings subject to Local Laws 97 and 88. Buildings won’t be able to access BEAM until the above fees are paid via DOB Now.

Also, if your building is simultaneously completing Local Law 97 and 88 this year, you do not have to pay filing fees for both items; only the filing fee for LL97 will be required.

If May 1st is the Deadline, What Happens on May 2nd?

Once Local Law 97 building reports are submitted, DOB staff will review all submissions in BEAM for completeness using standard review templates, based on the specific pathway and report type. Feedback and comments will be provided to the applicant as needed. Ultimately, there are three potential outcomes from the review:

1. Building is fully compliant with Local Law 97. No further action is required until May 1st, 2026, when the annual process repeats.
2. Building is not compliant with Local Law 97 and will be subject to penalties. These penalties will be assessed based on the extent of carbon emissions over the allowable limit. Once penalties are paid, no further action is required until May 1st, 2026.
3. Building is not compliant with Local Law 97, but successfully demonstrates “Good Faith Efforts” to earn mitigated penalties. Supplementary documentation is required.

How to Ace Compliance

To avoid financial penalties, DOB scrutiny, and compliance headaches, make sure your building has a partner to guide you through the following steps:

• Confirm your property’s Local Law 97 Compliance Pathway
• Register for a DOB Now account, if not already done. Accessibility to the BEAM platform will not be available until all filing fees have been paid via DOB Now.
• Sync your property’s ENERGY STAR Portfolio Manager
• Verify your building’s Gross Floor Area (GFA) via measured drawings, floorplans, engineering study, etc.
• Create a BEAM account and load your property information using the same login information from DOB Now and Portfolio Manager
• Prepare one emissions report per building (or multiple reports for multiple buildings)
• Secure attestation from a Registered Design Professional (RDP), signifying that all calculations within the building report are accurate.

This series is presented in partnership with Logical Buildings, whose tech and services can help building owners (including condo and coop boards) cut utility costs through smart energy behavior. Logical Buildings supports NYC multifamily operators through energy compliance, avoiding carbon penalties, reducing operating expenses, and the potential generation of revenue through energy usage modifications. For LL97, Logical Buildings has built a platform that tracks emissions, stores energy data, and manages the full compliance process. Questions or requests for information regarding the services offered can be directed to Alex Zafran from Logical Buildings at [email protected].

Likewise, attorneys at Borah Goldstein Altschuler Nahins & Goidel, P.C., remain ready and available to assist our clients with LL97 compliance, including representing property owners in energy efficiency improvement projects and financing to fund the cost of such projects. For more information or any questions, please do not hesitate to contact Eric M. Goidel, Esq. at [email protected] or Brandon James, Esq. at [email protected].