Compliance High on NYC Emission Rules So Far, With Much Tougher Goals to Come

New York City's first compliance period for Local Law 97 shows broad initial adherence, according to a Department of Buildings report submitted to the City Council. Of nearly 30,000 buildings required to file reports, about 95% did so, showing how they complied with the law or are taking steps to get there. The law, passed in 2019, mandates that buildings over 25,000 square feet keep emissions below a cap or face financial penalties. Buildings are the biggest source of emissions in the city.

The DOB analysis separates buildings into two groups: one including mostly market-rate properties, schools, offices, and hotels subject to emissions caps, and another including affordable housing and houses of worship. For the first group, about 95% of the more than 10,437 properties that filed emissions reports are in compliance. Of the rest, more than half are over the limit by less than 50%, about a quarter are over by more than 50%, and about a third submitted good faith plans. Sixteen properties over the limits are in the process of paying about $270,150 in penalties. Fines are $268 for every ton of carbon-based emissions above the limit per year. Less than 1% of properties purchased carbon offsets, sending about $1.7 million into a fund to help decarbonize affordable housing.

The strong early compliance was expected: when the law passed, the DOB figured 80% of buildings would already be under the caps in the first period. The harder test comes in 2030, when emission limits become stricter and more expensive projects may be needed, such as adding solar, sealing and insulating older buildings, replacing oil boilers, or switching to more efficient electric appliances. Deputy Commissioner of Sustainability Laura Popa said some owners have made a financial decision to pay penalties instead of doing the work, while emphasizing a "supportive approach to enforcement."

What remains unknown is how compliance will hold as limits tighten and whether the law itself will change. The DOB is conducting studies that may alter enforcement and compliance approaches, including whether to add energy efficiency measurements, how to account for resident density, and how to better support landlords of apartment buildings. The DOB also did not yet determine compliance rates for the affordable housing and houses of worship group.