NYC’s New LL 97 Climate Change Rule – Part 2

Last month, I wrote an article with a basic summary about New York City’s new Local Law 97, a rule specifically tailored to Climate Change and reaching NYC’s 40% reduction in greenhouse gas (GHG) emissions by 2030 and 80% reduction by 2050 goals by regulating existing building operations, the City’s largest source of GHG emissions. The rule goes into effect in 2024. The penalties for non-compliance (exceeding a limit) are great, likely annual 6-figure or greater fines. This article provides more details on the application of the new GHG emission limits affecting buildings.

LL 97 covers all buildings in NYC with a gross size of 25,000 sf or greater. There are several exceptions, such as power or steam plants, City-owned buildings, certain rent-regulated buildings, religious institutions, and certain low-income housing projects.

The crux of LL 97 is calculating annual GHG emissions and comparing it to allowable emission intensity in metric tons of CO2 equivalent per sf multiplied by square footage.

Different building types are regulated per Dept of Buildings listed classifications. Please note that this does not provide the full definition of a group or list all exceptions. Note the GHG emission intensity limits provided are for 2024 to 2029, more stringent in 2030.

Group A-1 – A-5. Assembly: the use of a building, excluding a dwelling, for gathering for purposes such as civic, social or religious functions, recreation, food or drink consumption, awaiting transportation, or similar group activities; or when occupied by 75 persons or more for educational or instructional purposes. Examples: theaters, banquet halls, museums, lecture halls, houses of worship, tennis courts, stadiums, etc. Building GHG emission intensity limit: 0.01074 tCO2e/sf.

Group B. Business: the use of a building for office, professional, service-type transactions, or for conducting public or civic services, including the storage of records and accounts and limited quantities of goods for office purposes. Examples: health care facilities, banks, laboratories, libraries, offices, professional services, colleges, etc. Building GHG emission intensity limit: 0.00846 tCO2e/sf.

Group E. Educational: the use of a building by 5 or more persons at any one time for educational purposes offered to children through the 12th grade. Examples: academies, day care facilities where no more than two children are under the age of 2, schools, and school libraries. Building GHG emission intensity limit: 0.00758 tCO2e/sf.

Group I-1. Personal care: the use of a building housing persons, on a 24-hour basis, who because of age, mental disability or other reasons, live in a supervised space providing personal care. Examples: adult day care, assisted living facilities, halfway homes, convalescent facilities. Building GHG emission intensity limit: 0.01138 tCO2e/sf.

Group F. Industrial: the use of a building for assembling, disassembling, fabricating, finishing, manufacturing, packaging, repairing, cleaning, or processing operations not classified as Group H hazardous. Examples: industrial, auto repair shops, printing presses, food processing, etc. Building GHG emission intensity limit: 0.00574 tCO2e/sf.

Groups H (High Hazard), I-2, I-3 (Institutional): the use of a building for child or adult care and treatment of those that are ill. Examples: industrial facilities using compounds considered hazardous, child care facilities, adult homes, hospitals, nursing homes, mental health facilities, etc. Building GHG emission intensity limit: 0.02381 tCO2e/sf.

Group M (Mercantile): the use of a building for the display and sale of merchandise, and involves stocks of goods, wares or merchandise incidental to such purposes and accessible to the public. Examples: department stores, retail and wholesale stores, drug stores, sales rooms, etc. Building GHG emission intensity limit: 0.01181 tCO2e/sf.

Group R-1 (Residential, temporary): the use of a building for dwelling or sleeping purposes when not classified as Institutional. Examples: hotels, motels, rooming houses, club houses. Building GHG emission intensity limit: 0.00987 tCO2e/sf.

Group R-2 (Residential, permanent): the use of a building containing sleeping units or more than two dwelling units that are occupied for permanent resident purposes. Example: apartment buildings. Building GHG emission intensity limit: 0.00675 tCO2e/sf.

Groups S (Storage) and U (Utility and Miscellaneous): the use of a building for storage or any other purpose not listed previously. Examples: warehouses, distribution centers (if it does not contain hazardous material), private garages, sheds, greenhouses. Building GHG emission intensity limit: 0.00426 tCO2e/sf.

Each subject building must calculate its GHG emissions for beginning in 2024. Conversion factors:

Electricity from the electric grid: 0.000288962 tCO2e/kilowatt-hour

Natural gas combusted on premises: 0.00005311 tCO2e/kbtu. (0.005311 tCO2e/therm)

#2 fuel oil combusted on premises: 0.00007421 tCO2e/kbtu (0.01039 tCO2e/gal. #2 oil)

#4 fuel oil combusted on premises: 0.00007529 tCO2e/kbtu (0.01090 tCO2e/gal. #4 oil)

District steam used on premises: 0.00004493 tCO2e/kbtu (0.0000466 tCO2e/lb steam)

Future updates will discuss other ways to calculate GHG emissions and the availability of GHG credits to compensate for emissions.

CCES has the experts and knowledge of LL 97 to perform an early assessment of whether your building meets your 2024 GHG emission limit or not. If you comply now, we can advise you how to ensure compliance into 2024. If you do not currently comply, we can advise you on cost-effective steps to comply on time and we can manage implementation to ensure you get the reductions in emissions you need. This is an onerous rule and with potential major upgrades needed to avoid high fines, 2024 is not that far away! Contact us today at 914-584-6720 or at karell@ CCESworld.com.