The New York City Department of Buildings has just released a crucial set of final rules to further implement Local Law 97, a landmark building performance law aimed at reducing greenhouse gas emissions across the city. This second major rules package is set to incentivize early electrification efforts and clarify what “good faith” decarbonization efforts mean for buildings during the first compliance period.

• Incentives for Electrification: The new rules offer incentives for early electrification in all covered buildings, making it attractive for owners to adopt cleaner energy solutions sooner rather than later.
• Good Faith Decarbonization Efforts: The rules define what constitutes genuine efforts towards decarbonization, helping building owners align their strategies with the law’s requirements.
• Compliance Pathways: Guidance is provided for buildings needing to meet the law’s prescriptive path requirements, ensuring every building can find a way to comply.
• Timeline for Action: Local Law 97’s energy efficiency and greenhouse gas reduction requirements begin January 1, 2024, with more stringent limits set for 2030, aiming for a 40% reduction in emissions by 2030 and an 80% reduction by 2050.

Adopted in April 2019, Local Law 97 mandates stringent emissions reductions for commercial buildings over 25,000 square feet. Currently applied to approximately 50,000 buildings covering half of NYC’s building emissions, the law is a pivotal step toward a greener city.

The new rules introduce a significant credit for building owners who pursue early electrification, addressing previous criticisms of the law’s focus on punitive measures. According to John Mandeck, CEO of the Urban Green Council, these incentives “accelerate carbon savings,” promoting a proactive approach to emissions reduction.

The path to achieving the law’s ambitious goals is complex and must be collaborative and tailored to the unique challenges of each building, as emphasized by Meera Joshi, NYCs deputy mayor for operations.

With these new rules, NYC takes a balanced approach—a mix of “sticks and carrots,” as Buildings Commissioner Jimmy Oddo describes it—encouraging building owners to commit to sustainability while providing tangible benefits for early action.