On October 5, 2022, NYC issued proposed clarifications and changes to LL 97, the rigorous greenhouse gas (GHG) emission rule that goes into effect for many covered buildings in 2024. See: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www1.nyc.gov/assets/buildings/pdf/proposed_greenhouse_gas.pdf

The proposed changes are not official yet and must go through public comment. The NYC DOB hopes it will be incorporated into LL 97 soon and the program go into effect January 1, 2024. Some highlights of the proposed changes based on a quick non-legal review of the published changes:

Differentiation of building type. The original LL 97 contained 10 building types and defined GHG emission limits for each. But mixed-use buildings were not addressed. It is certainly known that many subject buildings may have operations that fit more than one type, such as the common multi-family residential building with retail units (supermarket, pharmacy, bank, etc.) at the ground level. LL 97 now requires such a subject building to differentiate the space of different functions (how many square feet is multifamily residential, how many are retail) and apply total energy usage proportionally to the different areas. At the same time, the proposed change raises the number of building types to 61, each with its own GHG emission limit (in metric tons CO2e / sf) for the building owner to assess.

Allowance of Time of Use (TOU) to calculate GHG emissions from electric usage. LL 97 initially required total electric usage no matter when it was being used (peak time during the afternoon vs. preferred time, such as night). The proposed change allows a change in GHG emissions based on TOU. A subject building looking to take advantage of this must be able to meter its electric usage hour by hour for a long period, whether through the utility or with approved meters it operates. The proposed changes contain new GHG factors encouraging off-hour electric usage to develop lower GHG emissions.

Use of RECs and solar panels to lower GHG emissions. The initial version of LL 97 left open policy about being able to deduct GHG emissions if one had registered Renewable Energy Credits (RECs). There was some thought of allowing this, but restricting RECs to those generated within NYC or New York State. This change allows one to deduct one’s GHG emissions from electricity usage only with registered RECs, and does not appear to limit it from where it was generated geographically. A building can also reduce its GHG emissions for LL 97 compliance by implementing solar panels or other renewable source. The proposed change states that one must calculate total power generated by the renewable source (and presumably, put into the grid) and the use of total electricity by that building. A building owner cannot “double dip” and take credit for RECs for a solar panel array on one’s property and deduct GHG emissions based on electricity generated, too.

Further exemptions from reporting.
1. A new building does not have to report GHG emissions per LL 97 until after its first full calendar year of operation.
2. The proposed change exempts a new owner of a building from being responsible for submitting the annual LL 97 report until it is owned for a full calendar year. The change does not appear to state whether the building is thus exempt from submitting a report for the calendar year that the building changed ownership or whether the previous owner is still responsible.
3. An owner of a subject building for which a full demolition permit has been issued is not required to submit a LL 97 report for the calendar year during which demolition work has begun; the owner must submit a written certification by a registered design professional that one or more energy-related systems within the building has been compromised and legal occupancy is not possible.

Public comment is due on November 14, 2022. A public hearing will be held that day. This is only a preliminary review of the changes. Please have experienced, professionals review the changes in detail, including legal counsel, before undergoing any changes in response to it.

CCES is a technical firm that can help you assess your potential compliance with LL 97 GHG emission limits and develop and manage for you smart, cost-saving strategies to reduce potential LL 97 fines or achieve compliance. Contact us today at karell@CCESworld.com or at 914-584-6720.