Local Law 97: The Implications and Challenges for Building Owners in New York City

Posted on 21 March, 2023 by The Cotcon Group

Local Law 97, also known as the Climate Mobilization Act, is a landmark piece of legislation passed in New York City in 2019. It requires buildings larger than 25,000 square feet to reduce their carbon emissions by 40% by 2030 and 80% by 2050. This law has significant implications and challenges for building owners in New York City, including the following:

1. Compliance: Building owners will need to implement significant changes to their buildings to comply with the emissions reduction targets set by Local Law 97. This may include upgrading heating, cooling, and ventilation systems, improving insulation, and installing renewable energy systems such as solar panels.
2. Cost: Compliance with Local Law 97 will require significant capital investment, and building owners may face substantial costs to upgrade their buildings. However, failure to comply with the law can result in substantial penalties, so building owners will need to weigh the costs of compliance against the potential penalties.
3. Technology: Meeting the emissions reduction targets set by Local Law 97 will require the use of advanced building technology and systems. Building owners will need to stay abreast of new technologies and developments in the industry to ensure that they are using the most efficient and effective systems.
4. Retrofitting: Many existing buildings in New York City were not designed to meet the emissions reduction targets set by Local Law 97. Retrofitting these buildings can be a significant challenge, and building owners will need to work closely with architects, engineers, and contractors to ensure that the necessary changes are made in a cost-effective and timely manner.
5. Tenant impact: Building owners will also need to consider the impact of Local Law 97 on their tenants. Tenants may experience disruptions during the retrofitting process, and building owners will need to communicate effectively with tenants to minimize any inconvenience. Additionally, tenants may face increased costs associated with the upgrades needed to comply with the law, which could affect their decisions to renew leases or sign new ones.

In conclusion, Local Law 97 represents a significant challenge for building owners in New York City. Compliance with the law will require significant investment and technological innovation, and building owners will need to work closely with stakeholders to ensure that the necessary changes are made in a cost-effective and timely manner.