NYC Local Laws - Kohler Ronan, LLC Consulting Engineers by Kohler Ronan

NYC LOCAL LAWS A Greener NYC: How Local Laws Can Help Your Building Operate More Efficiently In May of 2019, New York City enacted the Climate Mobilization Act in order to mitigate the substantial effects of greenhouse gas emissions from buildings. Climate change and its negative effects on the world’s oceans and atmosphere are primarily driven by greenhouse gas emissions. Reducing emissions from all existing and future buildings is the most significant action NYC can take as buildings contribute nearly three quarters of all citywide emissions. Local laws have been implemented by government officials to amend the administrative code of the City of New York in order to achieve certain reductions in building emissions by 2050. In 2014, Local Law 66 committed the City and its buildings to the goal of reducing citywide emissions 80% by the year 2050, relative to such emissions for the calendar year 2005. The first achievement benchmark of this goal is a 40% reduction in aggregate building emissions from covered buildings by 2030. These emissionsreducing policies aim to decrease greenhouse gases, which contribute to global warming, in a practical and proactive way. Carbon dioxide equivalent (CO2e) is the metric used to compare the emissions of various greenhouse gases based upon their global warming potential as defined in the Intergovernmental Panel on Climate Change, Fifth Assessment Report (2014). Greenhouse gases measured as part of building emissions include the following: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride.

Buildup to Local Law 97 Although implemented in 2019, Local Law 97 (LL97) has been preceded by numerous City code amendments requiring that building owners be better prepared for the newly effected energy efficiency guidelines. These code amendments come in the form of local laws and are highlighted by LL95, LL84, LL87, and LL88. Local Law 95 (Local Law 33 of 2018) requires buildings larger than 25,000 square feet to receive and publicly display Building Energy Efficiency Ratings beginning in 2020. Building Energy Efficiency Ratings are based on energy performance instead of emissions and are provided via the Environmental Protection Agency’s (EPA) Portfolio Manager Tool. While reducing energy consumption will typically result in reduced building emissions, obtaining a high grade does not necessarily translate to Local Law 97 compliance. Ratings include a 1-100 Energy Star score and a corresponding A-D letter grade, including an F for noncompliance. In 2020, and in each calendar year thereafter, an owner of a covered building shall use the Portfolio Manager Tool to provide the NYC Department of Buildings (DOB) an energy efficiency score for their building; unless the building is a type for which it is not feasible to obtain an energy efficiency score. Every year, the DOB shall issue an energy efficiency grade to the owner, and, within 30 days, the owner shall post the grade and score in a conspicuous location near each public entrance.

Image: New York City DOB

Local Law 84 ties directly into Local Law 95 by requiring buildings greater than 25,000 square feet to benchmark their energy and water usage. These benchmarking requirements include collecting data about the energy consumption rates from various vendors, providing a building’s energy consumption data in the City website, producing the energy usage document with all required details, and utilizing the EPA’s Portfolio Manager website. These requirements help to satisfy both Local Law 95 and 84. The EPA’s Portfolio Manager reviews several building characteristics, along with building energy and water data, and provides an energy efficiency rating in addition to recording benchmarking data every year. All benchmarking data is in the public domain. After being received by the US EPA, these reports are published on the New York City Energy and Water Performance Map.

Local Law 88 targets large buildings, requiring them to install or modify all lighting systems to meet the latest New York City Energy Conservation Code (NYCECC). The legislative council responsible for creating these local laws pursuant to energy efficiency found that non-residential lighting is responsible for almost 18% of the energy and carbon emissions from NYC buildings. Rapid improvements in lighting technology in the past decades have made it feasible to dramatically reduce energy consumption by installing more efficient lighting systems; any investments made to install such systems will typically be realized through operational savings. The lighting systems of covered buildings must be upgraded to comply with the standards for new systems as set forth in section 805 of the New York City Energy Conservation Code and/or applicable standards referenced in such energy code on or prior to January 1, 2025. Essentially, the lighting systems must be upgraded to meet new system standards for maximum interior lighting power distribution, controls, wiring, exit signs, and exterior lighting. This law also requires that sub-meters be installed for covered tenant spaces (larger than 10,000 gross square feet) to monitor electrical consumption of each space. The owner of a covered building would need to ensure that the upgrade of the lighting systems and sub-meters installation are completed on or prior to such date and, further, must file a report with the department. Local Law 92 and 94 require that new construction and major renovation projects will demand either solar PV systems or green roofs. Any new building or construction project that requires replacement of the entire roof assembly or decking will need to comply with the requirements of this law. The law makes provisions for shaded areas to be provided with green roofs instead of solar panels.

LL87 as the Perfect Precursor to LL97 Understanding the current operating efficiency of a building covered by LL97 is an obvious first step as the date for emissions limits and penalties moves closer. Local Law 87 (LL87), implemented in 2009, requires energy audits and retro-commissioning of base building systems for buildings over 50,000 gross square feet and retrofitting of certain City-owned buildings. The intent of this law is to inform building owners of their energy consumption through energy audits and retro-commissioning. The results of these tests are recorded in an Energy Efficiency Report (EER) that is submitted to the Department of Buildings once every ten years. Under this law, owners of a covered building shall file an EER for such building on the calendar year having a final digit matching the last digit of the building’s tax block number. Similarly, they would need to do the same on every tenth calendar year thereafter. The following table depicts the first year a building’s EER is due, based on its tax block number. Last digit of tax block number First year EER is due

2020

2021

2022

2013

2014

2015

2016

2017

2018

2019

Within each EER are professional certification forms and data collection tools used to provide the required information, such as, building and team information, equipment inventory, energy conservation methods, and end-use breakdowns. Energy auditing is a process used to identify and develop modification and improvements of the base building systems including, but not limited to, the following: alterations of building systems, installation of new equipment, and insulation or other generally recognized energy efficiency technologies to optimize energy performance and achieve energy savings. Retro-commissioning is another process for optimizing the efficiency of existing systems through the identification and correction of deficiencies in those systems. Retro-commissioning might include repairing defects, updating controls or programmed settings, and implementing changes in operational practices. Energy audits and retro-commissioning give building owners a more thorough understanding of their buildings’ performance and allow for a confirmation of correct equipment and usage.

Local Law 97: The Most Ambitious Climate Legislation Local Law 97 is a key piece of legislation passed as part of New York City’s Climate Mobilization Act. LL97 establishes and enforces stringent carbon emissions limits for both new and existing buildings. This law utilizes the Office of Building Energy and Emissions to perform a variety of duties that include, but are not limited to, the following: overseeing implementation of building energy and emissions performance laws and policies, establishing or administering protocols for assessing annual energy use, receiving and validating annual building emissions assessments, and determining recommended penalties for buildings that are noncompliant with applicable emissions limits. LL97 affects all buildings over 25,000 gross square feet or two or more buildings on the same tax lot that together exceed 50,000 gross square feet. About 60% of the City’s building area falls under these guidelines. If 60% of the building area in NYC reduces Carbon Limit (kgCO2e/sf) carbon emissions by the expected 80% by Space Use 2024-2029 2030-2034 Occupancy Group the year 2050, that will result in an overall 11.93 23.81 Medical Office B - Ambulatory Health carbon cut of 48%. M - Mercantile

Retail

11.81

4.30

A - Assembly

Assembly

10.74

4.20

Beginning on January 1, 2024, a covered building shall not have annual building 5.26 9.87 Hotel R1 - Hotel emissions higher than the emissions limit 4.53 8.46 Office B - Business for such buildings, as determined by the 3.44 7.58 School E - Educational applicable building occupancy group. 4.07 6.75 Multifamily Housing R2 - Residential Buildings are classified by occupancy type and, every 5 years, the Building Emissions 1.67 5.74 Factory F - Factory Department shall declare the building 1.10 4.26 Storage/Warehouse S - Storage emissions intensity limit for occupancy groups expressed in kilograms of carbon dioxide equivalent per square foot (kgCO2e/sf ). For example, spaces classified as occupancy group “A” will have an annual emissions intensity limit of 10.74 kgCO2e/sf between 2024 and 2029, and an emissions limit of 4.20 kgCO2e/sf between 2030 and 2034. A future, lower limit is expected. The EPA’s Energy Star Portfolio Manager Tool, which should already be up to date to comply with Local Laws 95 and 84, is able to convert a building’s energy use into kilograms of carbon dioxide emissions (KgCO2e). Divide this kgCO2e by the building’s gross square footage and compare the result to the carbon limit to verify compliance. Penalties for Noncompliance There are strict penalties for building owners who are either noncompliant in the annual building emissions limit or are proven to have falsified submitted data. An owner who has submitted a report which indicates that a building has exceeded its annual building emissions limit shall be liable for a civic penalty equal to the difference between the report emissions and emissions limit, multiplied by $268. Numerous factors are considered in determining the penalty including the respondent’s good faith efforts to comply, the respondent’s history of compliance, or any unexpected and unforeseeable events or conditions. The 2024 and 2030 emissions intensity limits were set to impact the worst 20% and worst 75% of carbon emitters respectively, meaning an average building should meet the initial 2024 requirements but will need to reduce emissions to meet the more stringent 2030 limits.

Requirements at a Glance LL33

LL84

Building Energy Energy and Water Efficiency Score Usage Data Submission and Submission and Display Benchmark

LL87 Energy Audit & Retro Commissioning

LL88

LL97

Upgrade of Lighting Carbon Emissions Systems to Code; Intensity Report Installation of Tenant Sub-Meters

LL92 & 94 Solar or Green Roofs

Applicable Buildings

25,000 sf or more

50,000 sf or more

25,000 sf or more

Any that require replacement of entire roof assembly

Frequency of Requirements

Annually

Every 10 years

Once

Annually

Once

Due Date

May 1st

December 31st

January 1st

N/A

First Year Required

2020

Dependent on Tax Lot Number

2025

2024

2019

What Can Kohler Ronan Do to Assist?

In light of the complexities associated with local law compliance and the severity of penalties for noncompliance, what would be the best way for owners of existing buildings to ensure that their buildings are running efficiently and within the guidelines defined by LL97? Energy audits and retro-commissioning guidelines outlined by LL87 are in place to achieve a baseline for future energy savings and to begin collecting the information required by LL97. The benchmarks outlined by Local Laws 95, 84, 87, and the subsequent EER, will allow the kilograms of carbon dioxide equivalent to be determined and a plan to be developed in order to comply with all requirements of LL97. These local laws are the first step towards building a more efficient and carbon-free NYC. Kohler Ronan can help building owners complete every requirement outlined in this piece in order to ensure that owners are not only following the laws but are in possession of a building that operates at its maximum efficiency. Our Energy Analytics and Commissioning teams will help to collect and interpret all data necessary for the annual benchmarking and building efficiency score submissions, as well as assist in predicting future grades as Local Law 97’s emissions limits drop. In order to avoid the penalties outlined in each law, it is recommended that building owners utilize experienced companies that are knowledgeable in both the requirements and the benchmarking tools used to comply. Local Law 87 and 97 also require that approved agency energy auditors and commissioning agents, such as Kohler Ronan, perform and submit the necessary processes and documents to comply with these laws. As each requirement stated in these laws incorporates exhaustive details, utilizing Kohler Ronan in the data collection, auditing, commissioning, and submission processes can prevent unnecessary fines and excessive work for the ownership team. Author Credits Madhav Munshi, LEED AP, BEMP, Associate John Himelrick, Commissioning & Energy Analysis Engineer