How to Calculate NYC Local Law 97 Building Emissions
Key Takeaways
NYC landlords will need to quantify carbon emissions to stay compliant with new laws.
Calculating emissions informs future compliance upgrade decisions and the cost of non-compliance.
New York City’s ambitious climate goals are challenging commercial real estate owners to lower carbon emissions. With NYC City Council’s passing of Local Law 97, owners of large buildings may be subject to carbon emissions fines in 2024. If your property is subject to the NYC Benchmarking Law, requiring annual energy and water use reporting, it is subject to the new building emissions law. This means you could be required to pay fines if your building does not meet certain emissions requirements by 2024. In addition, the 2030 limits are significantly lower than 2024, which may lead to even higher fines.
Step 1. Calculate your building’s carbon emissions limit
There are several building categories and associated carbon emissions limits, depending on your building code occupancy type:
To calculate your building’s limit, take your building's square footage and multiply it by the carbon limit factor for its occupancy group. The resulting number is your limit in kilograms of carbon dioxide for the year 2024.
Let’s use The Dominick as an example. The 346,000 square foot hotel has a 2024 carbon emissions limit of 3,415,020 kilograms of carbon, calculated by multiplying 346,000 by 9.87.
Step 2. Determine how much carbon the building emits
To see a building’s annual emissions intensity based on the most recent benchmarking submissions, you can reference your building’s energy benchmarking data in ENERGY STAR Portfolio Manager, or check in with your benchmarking provider.
You can also go to Urban Green Council’s Metered.nyc tool to lookup your building’s energy usage data online. Search by borough-block-lot (BBL) number or type in your street address. Scroll down to the “GHG Emissions / sq.ft.” section highlighted in green. Multiply that GHG emissions intensity number by the building’s total square footage to determine the building’s annual carbon emissions for the applicable year.
In The Dominick’s example, the property, 246 Spring Street, is producing 10.4 kilograms of carbon emissions per square foot, putting the asset at 3,598,400 kilograms of carbon emitted every year.
*Note that the NYC law’s coefficient to calculate carbon emissions differ marginally from the EPA’s carbon coefficients. The coefficients mostly align, with the exception of steam, demonstrated in the graph below:
Step 3. Determine if you are Subject to Building Emissions Fines
Compare the first number, your limit, to your building's annual carbon emissions. If emissions are greater than the limit, you are subject to a fine. Exceeding the limit will result in a $268 fine for each metric ton over the building’s limit every year. Convert kilograms of carbon emissions to metric tons, simply by dividing kilograms by 1,000. Building owners who fail to report their carbon emissions in 2024 can expect a 50 cent fine per square foot per month until emissions are reported.
In The Dominick’s example, the hotel is currently over its allotted 3,415,020 kilograms of carbon; producing 3,598,400 kilograms of carbon every year. if the hotel has the same energy efficiency in 2024 as it does today, it will be 183,380 kilograms of carbon over its limit. Dividing by 1,000 to convert to metric tons, that puts The Dominick 183.38 metric tons of carbon over its limit. Each metric ton over results in a $268 fine, The Dominick would pay a $49,145.84 fine for its failure to comply, assessed annually. In order to avoid fines in 2024, The Dominick will need to make energy efficiency improvements.
Next Steps
Once you determine your carbon emissions, you are now able to move towards reducing your emissions and saving on emissions costs. Reducing energy use is the most effective way to reduce your building’s carbon emissions. This will require a combination of making significant capital improvements and building operational changes.
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