Local Law 97 establishes carbon emissions limits for New York City’s largest buildings and drives the deep carbon emission cuts that we can expect to see replicated across America’s largest cities.
LL97 requires all buildings larger than 25,000 square feet to meet carbon emissions caps. Most buildings that exceed emissions limits will face annual fines beginning in 2025. The penalties will be assessed against the building owner at a rate of $268 per metric ton of carbon that exceeds the limit. Failing to report emissions will cost the owner $0.50 per building square foot, per month. On top of that, providing a false statement can land you a fine of $500,000, and in some circumstances misdemeanor imprisonment.
Building owners are strongly advised to submit an accurate report on time each year. There is a minor penalty for going over the emissions limit by a small amount, compared with the penalty for a missed report. Also, a false report is penalized much more severely than a missed report. Accurate emissions data that captures time of use (TOU) is of #1 importance to avoid costly penalties, ensure compliance across jurisdictions, and make informed decisions for effective carbon reduction and cost reduction strategies.
NZero is the only platform natively built to provide time of use data, collecting hourly consumption data directly from the energy source, giving real estate operations the automated insights needed to prepare for additional regulations and make data-driven decisions to reduce emissions and maximize ROI. Our quality of data and insights are exactly why Fifth Wall, the largest venture capital firm focused on technology for the global real estate industry, partnered with us. We’re also working with policy makers and mayors, to educate on and advocate for time-of-use factors, to improve data accuracy and understanding to save you millions.
Other carbon accounting and management platforms rely on third-party and outdated averages to calculate and lower your buildings footprint- which can lead to underreporting and over-reporting your impact by as much as 30%. Worse yet, not providing you the granular data and insights needed to actually lower your emissions. Competitors instead rely on offsets to decrease your reported footprint; offsets do not help you understand how to make more sustainable and cost effective decisions - and relying on them solely to reduce your emissions is a form of greenwashing.
Local Law 97 is not the first regulation to address buildings' carbon emission output, and it won’t be the last. Accurate emissions data and granular insights are absolutely critical for organizations to make confident decisions to reduce their emissions, reduce risk, and cut costs.
With federal funding available, now is the time for municipalities to advance their sustainability efforts and make a real impact on energy efficiency and emissions reduction.
