Local Law 97 (“LL97”), part of New York City's Climate Mobilization Act, is a landmark regulation aiming to significantly reduce carbon emissions from buildings. It requires large buildings over 25,000 square feet to comply with strict emission caps, with deadlines beginning in 2024. Buildings exceeding their limits face substantial fines, and the financial stakes will increase as thresholds tighten in 2030. Here’s a closer look at the penalties and how to avoid them.

Key deadlines

• First compliance period begins: May 1, 2025 From May 1, 2025, to December 31, 2029, buildings must meet the initial emissions thresholds established by LL97.

• Annual compliance reports begin: May 1, 2025 Building owners are required to submit a compliance report annually, prepared by a registered design professional. This report must detail emissions levels from the previous calendar year.

• Second compliance period begins: January 1, 2030 Stricter emissions limits take effect, covering a larger percentage of buildings through December 31, 2034.

Penalties for non-compliance

Failure to comply with LL97’s requirements can result in significant penalties:

• Excess emissions penalties Buildings emitting more than their allowed greenhouse gas levels are fined $268 per metric ton of excess CO₂ equivalent annually.

• Failure to file annual reports Missing the May 1 submission deadline results in a fine of $0.50 per square foot of gross floor area for each month the report is late.

• Compliance statement failure Not submitting a required compliance statement incurs a $5,000 penalty for the first year, with an additional $500 for each subsequent month of non-compliance.

• False statements and violations Providing false information or violating LL97 regulations can result in penalties of up to $500,000.

Why LL97 matters 

LL97 is central to New York City’s strategy to combat climate change and transition to a low-carbon future. Compliance not only helps avoid financial penalties but also aligns properties with sustainability goals, enhancing long-term value and energy efficiency.

Early action is crucial to meet LL97’s requirements. By investing in energy efficiency measures and renewable energy, building owners can mitigate risks, ensure compliance, and support a greener New York City.

Introducing Secure

Secure, powered by Retransform, is a smart buildings ecosystem that can equip buildings with digital levers, provide holistic building data, and perform analytics, benchmarking, and automation.

Secure integrates compliance with New York City's Local Law 97 with ENERGY STAR Portfolio Manager, a critical tool for meeting LL97 regulations, enabling real estate owners to track, manage, and report on carbon emissions and energy usage. This feature helps ensure buildings meet mandated emission reduction targets, providing actionable insights to support sustainable building management and avoid penalties.

About Retransform

Retransform, an Apex Group company, is a global real estate service provider offering Proptech, Technology Solutions and Business Managed Services to commercial, retail, residential, and corporate real estate customers. Retransform are experts in developing and implementing state-of-the-art technology tailored to their clients’ business requirements. With offices across North America, Europe, the Middle East, India, and Australia, Retransform serves over 300 customers, supporting more than 2 billion sq. ft. of real estate globally.

Ready to take the next step toward a more sustainable future? Learn more and request a demo today!