What happens if a building is over its limit

Local Law 97 of 2019 (as amended) sets a greenhouse gas emissions limit for each covered building. A building over its limit owes $268 for every metric ton of CO2e over the cap, every year it continues. That is a yearly penalty, not a one-time fine. Buying offset certificates is one of the deductions the law allows, but it does not make the overage go away, it just moves the bill. Coverage and reporting are explained in our Local Law 97 guide.

There is a second, separate penalty for not filing. Under DOB's rules, an owner who fails to submit the annual building emissions report can be charged the building's gross floor area times $0.50 for each month the report is late. On a large building, a missed report can cost more than the overage itself.

Which buildings are covered

Local Law 97 generally covers:

buildings over 25,000 gross square feet
two or more buildings on the same tax lot that together exceed 50,000 square feet
two or more condominium buildings governed by the same board that together exceed 50,000 square feet

DOB publishes a Covered Buildings List each year. Owners are responsible for checking it, and being left off the list does not take a building out of the law. Our Local Law 97 guide explains how to check the list and dispute an error.

What changes in 2030

The first compliance period ran from 2024 through 2029. Starting with calendar year 2030, the limits drop sharply for most building types, and the 2030 to 2034 period uses new emissions limits and new carbon coefficients for electricity and fuels. The City's stated goal is a 40 percent cut in emissions from its largest buildings by 2030, and net zero by 2050.

In practice, a building that passes comfortably today can be over its limit in 2030 without changing anything. The building did not get worse; the cap came down. That is why owners who are under the limit now still need to run the 2030 numbers.

Two articles, two pathways

Most covered buildings fall under Article 320, which means an annual emissions report showing the building is under its limit, or by how much it is over. Certain rent-regulated and affordable housing and houses of worship fall under Article 321, which had its own one-time report and two options: show that 2024 emissions were already under the 2030 limit, or complete a set of prescriptive energy conservation measures. If a building ever loses its Article 321 eligibility, it moves to annual Article 320 reporting.

Each annual Article 320 report is due May 1 for the prior calendar year, certified by a registered design professional, with a grace period through June 30. Your 2029 emissions are reported in 2030; your 2030 emissions are reported by May 1, 2031, and that is the first report measured against the tighter limits. See our year-end compliance deadlines for how LL97 fits with the other annual filings.

Where owners get burned

A boiler you replace this year will still be running in 2030. Swap it like-for-like and you have locked in your emissions for years. Bigger retrofits, like heat pumps, envelope work, or a larger electrical service, need engineering, utility coordination, permits and equipment lead times. That is not a one-year project.

So the 2027 budget you are setting now is really your 2030 decision. If your building also owes a Local Law 87 energy audit, its findings are a good place to start the plan.

What to do now

Confirm coverage. Check the building against DOB's Covered Buildings List, and confirm which article applies.
Run the 2030 numbers. Ask your registered design professional or energy consultant to compare current emissions with the 2030 limit, not just today's.
Keep benchmarking clean. LL97 reports use the same energy data as Local Law 84 benchmarking, so errors there carry over.
Plan equipment replacements against 2030. Before you sign for a new boiler or other major system, ask what it does to your 2030 emissions.
Line up the permits early. Electrification and heating work usually needs DOB filings, such as electrical permit filings and mechanical or plumbing permits. Filing early keeps the permit from becoming the bottleneck.

The permitting side

You don't have to carry the permitting part yourself. We handle the DOB filings and permits for the work, so your team can focus on the plan. We don't do the energy engineering or certify LL97 reports; a registered design professional does that. We will work with the contractor you have, or if not, we will recommend one from our network.

Call 718-833-2333 or email info@sandmexpediting.com

Local Law 97 in 2030: Why the Retrofit Decision Is Now