New York City is leading the way in reducing building-related carbon emissions through a series of forward-thinking laws focused on energy efficiency. These laws are designed to make buildings more sustainable, help fight climate change, and reduce energy bills for property owners and tenants alike.

If you own, manage, or operate a building in New York City, understanding these local laws is essential—not just for compliance, but also for long-term cost savings and environmental impact.

Let’s break down what these laws are, what they require, and how they work together to improve building performance across the city.

Why Energy Efficiency Matters in NYC

Buildings are responsible for nearly 70% of New York City’s greenhouse gas emissions. As a result, city officials have enacted a range of local laws aimed at reducing energy usage, improving sustainability, and helping NYC meet its climate goals under the Climate Mobilization Act.

These laws apply primarily to large buildings, which tend to consume the most energy. However, they affect a wide variety of building types—residential, commercial, institutional, and mixed-use.

Local Law 97: The Backbone of NYC’s Climate Strategy

Local Law 97, or LL97 NYC, is one of the most important pieces of legislation in New York City’s Climate Mobilization Act. It applies to most buildings over 25,000 square feet and requires them to meet strict carbon emission limits beginning in 2024, with tougher limits in 2030.

Key requirements of Local Law 97 include:

• Tracking and reporting annual building emissions
• Reducing carbon output over time
• Facing fines if emissions exceed allowed thresholds

The goal of this law is to cut greenhouse gas emissions from buildings by 40% by 2030 and by 80% by 2050. These are ambitious targets that require building owners to think critically about energy systems, building envelopes, and operational practices.

Local Law 84: Benchmarking Energy and Water Usage

Local Law 84 is also known as NYC’s Benchmarking Law. It requires owners of large buildings (generally over 25,000 square feet) to annually measure and report their energy and water consumption to the city.

This information is submitted through the ENERGY STAR Portfolio Manager and helps the city identify which buildings are high performers and which need improvement.

Benefits of benchmarking include:

• Increased transparency
• Better energy management decisions
• Ability to compare your building’s performance with others

Benchmarking is often the first step toward greater efficiency, because it provides a clear picture of how much energy your building is actually using.

Local Law 87: Energy Audits and Retro-Commissioning

Local Law 87 requires buildings larger than 50,000 square feet to undergo periodic energy audits and retro-commissioning every 10 years. The goal is to ensure building systems are operating efficiently and that energy savings opportunities are being identified and implemented.

What’s involved in Local Law 87 compliance?

• Conducting a detailed energy audit by a qualified professional
• Completing retro-commissioning tasks (like fixing HVAC controls or sealing leaks)
• Filing an Energy Efficiency Report (EER) with the Department of Buildings

The audits look at lighting, HVAC, insulation, motors, and more, while retro-commissioning ensures that existing equipment is working properly. Together, these measures can result in significant energy savings and better indoor comfort.

Local Law 88: Lighting and Submetering Upgrades

Under Local Law 88, large non-residential buildings must upgrade their lighting systems to meet current NYC Energy Conservation Code standards. Additionally, buildings must install submeters for each commercial tenant space over 5,000 square feet.

LL88 New York focuses on:

• Replacing outdated lighting with energy-efficient LED systems
• Installing tenant-level electric submeters to track usage
• Providing monthly energy reports to tenants

These changes help reduce electricity use and give tenants more control over their energy consumption. Submetering, in particular, promotes accountability and energy-conscious behavior.

Local Law 95: Building Energy Grades

Local Law 95 builds on the benchmarking law by requiring buildings to display energy efficiency grades in a visible location near the building entrance.

These grades are based on ENERGY STAR scores and range from A to F. They provide a quick visual cue about how well a building is performing in terms of energy use.

Why does this matter?

• Helps prospective tenants and buyers make informed decisions
• Encourages building owners to improve their scores
• Increases public awareness of building energy performance

An “A” grade can be a powerful marketing tool, while a “D” or “F” may prompt questions or even dissuade tenants.

How These Laws Work Together

Each local law plays a unique role, but they are all part of a coordinated effort to reduce building emissions in NYC. Here’s how they connect:

• Local Law 84 (Benchmarking) provides the data.
• Local Law 87 (Audits) identifies issues.
• Local Law 88 (Lighting/Submetering) targets quick upgrades.
• Local Law 95 (Energy Grades) increases visibility.
• Local Law 97 (Carbon Limits) sets enforceable emissions caps.

Together, they create a clear path toward energy efficiency and carbon neutrality.

Challenges for Building Owners

Complying with NYC Local Laws can be complex, especially for older buildings that were not designed with energy efficiency in mind. Challenges include:

• High upfront costs for retrofits
• Difficulty accessing older equipment
• Limited in-house technical knowledge

However, the long-term savings and incentives often outweigh the initial investments. Many building owners also choose to work with a Local Law Consultant Service to navigate requirements and timelines.

Benefits of Compliance

While compliance can be demanding, it comes with significant benefits:

• Reduced energy bills
• Better building performance
• Higher tenant satisfaction
• Avoidance of hefty penalties
• Increased property value

More importantly, by complying with these laws, you are actively contributing to a more sustainable New York City.

Getting Started with Energy Efficiency

Not sure where to begin? Here are some steps to help:

1. Start with Benchmarking – Use LL84 to understand your building’s current energy use.
2. Schedule an Energy Audit – Comply with LL87 and discover efficiency opportunities.
3. Upgrade Lighting – Meet LL88 requirements with LED lighting and smart controls.
4. Install Submeters – Track tenant energy usage and promote accountability.
5. Monitor Carbon Emissions – Prepare for LL97 by understanding your emissions baseline.

Final Thoughts

New York City’s local laws are pushing the building industry toward a cleaner, greener future. They may seem challenging at first, but they offer a unique opportunity to improve building performance, cut costs, and help the environment.

Whether you're a property manager, owner, or developer, staying informed and proactive is the best strategy for long-term success. Investing in energy efficiency today will pay dividends tomorrow—for your building and for the planet.