New York City building emissions law

Local Law 97: limits, penalties and deadlines

A plain reference for New York City building owners, asset managers and their lenders. Each rule below is cited to the Administrative Code or the Department of Buildings, and the sources are listed at the end.

Checked against the primary sources on October 31, 2026. General information, not legal advice.

Look up your building See the limits

25,000 sf

Size threshold

A single building, in gross square feet

$268

Maximum penalty rate

Per tCO2e over the annual limit

May 1

Annual report date

Next report: May 1, 2027

2030

Next limit step

Compliance period 2030 to 2034

Section 1

What Local Law 97 is

Local Law 97 of 2019 puts a yearly cap on the greenhouse gas emissions of most large buildings in New York City. Each covered building gets a limit based on its floor area and how it is used. Every year the owner reports the building's emissions for the year before. If the report shows more than the limit, the owner can owe a civil penalty of up to $268 for each metric ton over. §28-320.3, §28-320.3.7, §28-320.6

Local Law 97 was enacted in 2019 as part of the Climate Mobilization Act and later changed, including by Local Law 147 of 2019. It is now Articles 320 and 321 of Chapter 3 of Title 28 of the Administrative Code. The Department of Buildings (DOB) carries it out through rules in 1 RCNY Chapter 100: §103-14 for Article 320, §103-17 for Article 321 and §103-12 for adjustments. The most recent amendment to §103-14 took effect January 19, 2025. DOB LL97 page, §103-14 promulgation record

Over two thirds of the City's greenhouse gas emissions come from buildings. The limits are designed to cut emissions from the largest buildings 40 percent by 2030 and to net zero by 2050. DOB compliance report

Why it matters now

The first results are in. Of 19,963 properties required to report on 2024, about 95 percent filed, and 95 percent of the Article 320 properties that filed met their limits. DOB has issued Notices of Deficiency to owners that did not file or that exceeded their limits. DOB compliance report, Mayor's Office, September 2026
The limits tighten in 2030. NYC Accelerator reports that based on 2024 data about 57 percent of properties are projected to exceed the limits for 2030 to 2034. NYC Accelerator
The next report brings changes. The report due May 1, 2027 is the first in which every owner must use the Portfolio Manager property type factors, and the first for buildings with a small share of rent regulated units. DOB limits page, 1 RCNY §103-14(b)(8)
An electrification credit halves. Equipment installed and operating before January 1, 2027 earns twice the coefficient of equipment installed after that date. 1 RCNY §103-14(d)(3)(vii)
The law survived its main court test. In May 2025 the New York Court of Appeals held that the state Climate Act does not preempt the field and so did not displace Local Law 97. Glen Oaks Vil. Owners, Inc. v City of New York

Section 2

Who is covered

Coverage turns on size, as it appears in Department of Finance records, and then on what kind of building it is. §28-320.1

The size test

A building that exceeds 25,000 gross square feet.
Two or more buildings on the same tax lot that together exceed 50,000 gross square feet.
Two or more buildings in the condominium form of ownership, governed by the same board of managers, that together exceed 50,000 gross square feet.

Tax lots and buildings

The Department of Finance reports at the tax lot level (a BBL). Compliance and any penalty are at the level of each building (a BIN), and each building has its own compliance pathway. Covered Buildings List FAQs

If one building on a lot is over 25,000 square feet but the lot totals 50,000 or less, the lot appears on the Covered Buildings List and the other buildings may not be covered. If the lot totals more than 50,000 square feet, every building on it is covered, however small. DOB enforcement presentation

Buildings on one lot that do not share energy service report separately. For 2024 to 2029, covered buildings that share energy service may report together, even across lots. 1 RCNY §103-14(b)(3), (b)(4)

A new building with a certificate of occupancy issued on or after January 1, 2023 begins reporting for the first full calendar year after that. 1 RCNY §103-14(b)(5)

Compliance pathways

DOB puts each building in one pathway on the Covered Buildings List, updated for 2026 on March 23. It is the owner's job to correct it, using Ticket #1 in the BEAM reporting portal. A building that fits more than one pathway follows the highest tier. March 2026 notice, Covered Buildings List FAQs

Table 1. Local Law 97 compliance pathways

Swipe the table sideways to see every column.

Pathway	Who	Requirement starts	First report
CP0, Article 320	Covered buildings not in another pathway	Calendar year 2024	May 1, 2025
CP1, Article 320	At least one rent regulated unit, but not a rent regulated accommodation (over 35 percent). §28-320.3.10.1	January 1, 2026	May 1, 2027
CP2, Article 320	Mitchell-Lama buildings, and buildings with at least one income-restricted unit through a DOF tax exemption or an HPD regulatory agreement. §28-320.3.9, CBL Matrix	January 1, 2035	May 1, 2036
CP3, Article 321	Buildings over 35 percent rent regulated, in a project-based federal housing program, owned by a housing development fund company, or with a main use as an A-3 religious house of worship. §28-321.1	Work by December 31, 2024	One-time report, May 1, 2025
CP4	City buildings and NYCHA. These fall under portfolio-wide requirements that DOB does not enforce. DOB enforcement presentation	Portfolio caps from 2025, NYCHA from 2030	Outside this page

HPD says HDFC co-ops are always in Article 321, while HDFC rentals depend on their units and programs. It also says any number of units in a federal project-based program places a building in Article 321, and that tenant-based vouchers do not count. HPD FAQs

Article 320 and Article 321 compared

Article 320

What it is: Annual emissions limits that tighten over time.
What the owner does: Keeps annual building emissions at or below the limit, with any allowed deductions.
Reporting: Every year by May 1, for the previous calendar year.
Certified by: A registered design professional.
Penalty: Up to $268 per tCO2e over the limit, each year.
Rule: 1 RCNY §103-14

Article 321

What it is: A one-time requirement for certain affordable housing and houses of worship.
What the owner does: Either shows 2024 emissions were within what the building’s 2030 limit would be, or completes the 13 prescriptive energy conservation measures that apply, such as repairing heating leaks, insulating pipes, repairing steam traps and upgrading lighting.
Reporting: One report, due May 1, 2025. A building moved into this pathway in 2026 reports in 2027.
Certified by: A registered design professional for the limit, a qualified retro-commissioning agent for the measures.
Penalty: $10,000 per covered building for not filing, and $10,000 for not demonstrating compliance.
Rule: 1 RCNY §103-17

Not covered by Article 320

An industrial facility used primarily to generate electric power or steam.
Real property of not more than three stories made up of a series of attached, detached or semi-detached dwellings, where each dwelling unit owner holds ownership and responsibility for maintaining the HVAC and hot water systems, and no such system serves more than 25,000 gross square feet, as certified by a registered design professional.
A city building, which does not include a senior college of the City University of New York.
A housing development or building on land owned by the New York City Housing Authority.
A rent regulated accommodation, a building whose main use is a religious house of worship, real property owned by a housing development fund company, and a building in a project-based federal housing program. If they meet the size test, these fall under Article 321 instead.

§28-320.1, §28-321.1

Section 3

Limits by compliance period

A limit is not one number for a building. It is built up from floor area and use, then compared with emissions calculated from energy use.

How a limit is calculated

Multiply the floor area of each use by the emissions factor for that use, and add the results. That is the building's annual limit, in metric tons of CO2 equivalent (tCO2e). Annual emissions are the energy consumed from each source multiplied by that source's coefficient. 1 RCNY §103-14(d)(2), (d)(4)

The registered design professional preparing the report picks the Portfolio Manager property type that best describes each space. "Other" and "Mixed Use" may not be assigned. 1 RCNY §103-14(c)(2)

Which table applies

Reports for 2024 and 2025. Table 3, or the occupancy group limit in Table 2 where that is higher. An owner must use one or the other, not a combination. 1 RCNY §103-14(c)(3)(ii)
Reports for 2026 and later. Table 3, for every owner. DOB limits page
The 2030 to 2034 period. The law lets DOB set different limits by rule, and DOB has done so. Table 2 shows the statute's own figures for reference, and Table 3 shows the factors in the rule. §28-320.3.2, 1 RCNY §103-14(c)(3)(iii)
2035 and on. The rule sets factors for 2035 to 2039 and 2040 to 2049, then 0.00 for every property type from 2050. The Administrative Code requires later limits to reach an average of no more than 0.0014 tCO2e per square foot by 2050. 1 RCNY §103-14(c)(3)(iv) to (vi), §28-320.3.4, §28-320.3.5

Table 2. Limits by occupancy group in the Administrative Code, tCO2e per square foot

Occupancy group	2024 to 2029	2030 to 2034
A	0.01074	0.00420
B, other than the B uses listed below	0.00846	0.00453
E and I-4	0.00758	0.00344
I-1	0.01138	0.00598
F	0.00574	0.00167
B civic administrative facility for emergency response services, B nonproduction laboratory, Group B ambulatory health care facility, H, I-2 and I-3	0.02381	0.01330
M	0.01181	0.00403
R-1	0.00987	0.00526
R-2	0.00675	0.00407
S and U	0.00426	0.00110

Occupancy groups as published in §28-320.3.1 and §28-320.3.2.

Table 3. Emissions factors by Portfolio Manager property type in the DOB rule, tCO2e per square foot

Swipe the table sideways to see every column.

Property type	2024 to 2029	2030 to 2034	2035 to 2039	2040 to 2049
Adult Education	0.00758	0.003565528	0.002674146	0.001782764
Ambulatory Surgical Center	0.01181	0.008980612	0.006735459	0.004490306
Automobile Dealership	0.00675	0.002824097	0.002118072	0.001412048
Bank Branch	0.00987	0.004036172	0.003027129	0.002018086
Bowling Alley	0.00574	0.003103815	0.002327861	0.001551907
College/University	0.00987	0.002099748	0.001236322	0.000180818
Convenience Store without Gas Station	0.00675	0.003540032	0.002655024	0.001770016
Courthouse	0.00426	0.001480533	0.001110400	0.000740266
Data Center	0.02381	0.014791131	0.011093348	0.007395565
Distribution Center	0.00574	0.000991600	0.000549637	0.000123568
Enclosed Mall	0.01074	0.003983803	0.002987852	0.001991901
Financial Office	0.00846	0.003697004	0.002772753	0.001848502
Fitness Center/Health Club/Gym	0.00987	0.003946728	0.002960046	0.001973364
Food Sales	0.01181	0.005208880	0.003906660	0.002604440
Food Service	0.01181	0.007749414	0.005812060	0.003874707
Hospital (General Medical & Surgical)	0.02381	0.007335204	0.004654044	0.002997851
Hotel	0.00987	0.003850668	0.002640017	0.001465772
K-12 School	0.00675	0.002230588	0.001488109	0.000809607
Laboratory	0.02381	0.026029868	0.019522401	0.013014934
Library	0.00675	0.002218412	0.001663809	0.001109206
Lifestyle Center	0.00846	0.004705850	0.003529387	0.002352925
Mailing Center/Post Office	0.00426	0.001980440	0.001485330	0.000990220
Manufacturing/Industrial Plant	0.00758	0.001417030	0.000975993	0.000508346
Medical Office	0.01074	0.002912778	0.001683565	0.000407851
Movie Theater	0.01181	0.005395268	0.004046451	0.002697634
Multifamily Housing	0.00675	0.003346640	0.002692183	0.002052731
Museum	0.01181	0.005395800	0.004046850	0.002697900
Non-Refrigerated Warehouse	0.00426	0.000883187	0.000568051	0.000163152
Office	0.00758	0.002690852	0.001652340	0.000581893
Other - Education	0.00846	0.002934006	0.001867699	0.000839571
Other - Entertainment/Public Assembly	0.00987	0.002956738	0.002250122	0.001355610
Other - Lodging/Residential	0.00758	0.001901982	0.001329089	0.000762093
Other - Mall	0.01074	0.001928226	0.001006426	0.000067983
Other - Public Services	0.00758	0.003808033	0.002856025	0.001904017
Other - Recreation	0.00987	0.004479570	0.003359678	0.002239785
Other - Restaurant/Bar	0.02381	0.008505075	0.006378806	0.004252537
Other - Services	0.01074	0.001823381	0.001367536	0.000911691
Other - Specialty Hospital	0.02381	0.006321819	0.004741365	0.003160910
Other - Technology/Science	0.02381	0.010446456	0.007834842	0.005223228
Outpatient Rehabilitation/Physical Therapy	0.01181	0.006018323	0.004513742	0.003009161
Parking	0.00426	0.000214421	0.000104943	0
Performing Arts	0.00846	0.002472539	0.001399345	0
Personal Services (Health/Beauty, Dry Cleaning, etc.)	0.00574	0.004843037	0.003632278	0.002421519
Pre-school/Daycare	0.00675	0.002362874	0.001772155	0.001181437
Refrigerated Warehouse	0.00987	0.002852131	0.002139098	0.001426066
Repair Services (Vehicle, Shoe, Locksmith, etc.)	0.00426	0.002210699	0.001658024	0.001105349
Residence Hall/Dormitory	0.00758	0.002464089	0.001332459	0.000528616
Residential Care Facility	0.01138	0.004893124	0.004027812	0.002272629
Restaurant	0.01181	0.004038374	0.003028780	0.002019187
Retail Store	0.00758	0.002104490	0.001216050	0.000176040
Self-Storage Facility	0.00426	0.000611830	0.000404901	0.000132282
Senior Care Community	0.01138	0.004410123	0.003336443	0.002277912
Social/Meeting Hall	0.00987	0.003833108	0.002874831	0.001916554
Strip Mall	0.01181	0.001361842	0.000600493	0.000038512
Supermarket/Grocery Store	0.02381	0.006755190	0.004256103	0.002030027
Transportation Terminal/Station	0.00426	0.000571669	0.000428752	0.000285834
Urgent Care/Clinic/Other Outpatient	0.01181	0.005772375	0.004329281	0.002886187
Vocational School	0.00574	0.004613122	0.003459842	0.002306561
Wholesale Club/Supercenter	0.01138	0.004264962	0.003198721	0.002132481
Worship Facility	0.00574	0.001230602	0.000866921	0.000549306

Figures exactly as published in 1 RCNY §103-14(c)(3)(i), (iii), (iv), (v) and (vi). The rule's Laboratory factor for 2030 to 2034 is higher than for 2024 to 2029, and its Parking and Performing Arts factors for 2040 to 2049 are 0. We show them as published.

Table 4. Greenhouse gas coefficients for the common energy sources

Energy source	2024 to 2029	2030 to 2034
Utility electricity tCO2e per kWh	0.000288962	0.000145
Natural gas tCO2e per kBtu	0.00005311	0.00005311
No. 2 fuel oil tCO2e per kBtu	0.00007421	0.00007421
No. 4 fuel oil tCO2e per kBtu	0.00007529	0.00007529
District steam tCO2e per kBtu	0.00004493	0.0000432

2024 to 2029: §28-320.3.1.1. 2030 to 2034: 1 RCNY §103-14(d)(3)(i), (ii). An owner may instead use time of use coefficients for electricity. The rule text we read sets no coefficients for 2035 and later.

Section 4

How the penalty is calculated

The formula

(reported annual emissions minus annual limit, in tCO2e) × $268

The Administrative Code sets this as a maximum, "not more than" that amount. The rate is the same in every compliance period; what changes is the limit. A tribunal weighs good faith efforts, compliance history, unforeseeable events, financial resources and critical facility operations. §28-320.6, §28-320.6.1, 1 RCNY §103-14(h)

Illustrative example: not a real building

This is a made-up office with round numbers, to show the arithmetic. It is not a real building, a typical building or a prediction. It uses a floor area of 100,000 square feet, all of it Office, and uses 1,500,000 kWh of electricity and 8,000,000 kBtu of natural gas in both periods, with no deductions.

Table 5. Illustrative example, not a real building

Step	2024 to 2029	2030 to 2034
Office factor (Table 3)	0.00758	0.002690852
Annual limit, tCO2e	758.00	269.09
Electricity emissions, tCO2e	433.44	217.50
Natural gas emissions, tCO2e	424.88	424.88
Total emissions, tCO2e	858.32	642.38
Over the limit, tCO2e	100.32	373.29
Maximum penalty for one year at $268	$26,887	$100,043

Electricity emissions fall in the second column because the coefficient in Table 4 falls, not because the building changed. Tons are shown to two decimal places and penalties to the nearest dollar. If this same building did not file, the late penalty could reach $50,000 a month (100,000 square feet at $0.50).

Table 6. Penalties in the law and the rules

Violation	Amount
Exceeding the annual limit §28-320.6, 1 RCNY §103-14(h)	Up to the reported emissions above the limit multiplied by $268, for each calendar year.
Not filing the annual report §28-320.6.2, 1 RCNY §103-14(g), DOB enforcement presentation	Up to the gross floor area multiplied by $0.50, for each month the report is not submitted within the 12 months following May 1. The code spares a report demonstrating compliance filed within 60 days of the due date. The DOB enforcement presentation says more broadly that no penalties will be issued if the report is filed within 60 days of May 1. For a report filed after June 30, the DOB guide counts each month since May 1.
Knowingly making a material false statement §28-320.6.3	A misdemeanor, with a fine of up to $500,000, imprisonment of up to 30 days, or both, plus a civil penalty of up to $500,000.
Article 321: not filing the report 1 RCNY §103-17(d)	$10,000 per covered building.
Article 321: not demonstrating the measures or the limit 1 RCNY §103-17(e)	$10,000 per covered building.

DOB violations page, Article 320 guide

Mitigated penalties in 2024 to 2029

An unexpected or unforeseeable event outside the owner's control, such as a hurricane, severe flooding or fire that damaged the building, may result in a penalty of zero for that year. Good faith efforts may result in a mitigated penalty. Both must be filed with the building emissions report. 1 RCNY §103-14(i)

To show good faith efforts, an owner must do all of the following:

File the annual report and comply with any adjustment granted.
Upload benchmarking information for the previous calendar year.
Attest that lighting upgrades under Article 310 and tenant sub-meters under Article 311 are done.
Submit one of the four electives below.

A previously submitted annual report that demonstrated compliance.
Work underway: DOB-approved plans, or paid invoices and signed contracts where no permit is needed, with a completion timeline, projected reductions and a signed contract with a provider.
Waiting on the utility for more power: a DOB-approved electrical filing, certification that the utility accepted the increased load request, and a timeline.
A critical facility: a description of how paying a penalty would harm its ability to provide services.

The rule lists six items. DOB's April 2026 guide says one of five electives must be submitted and only four are eligible for calendar year 2025, and it lists the four above. It does not offer the rule's §28-320.7 attestation. Check the current guide before filing for a later year. DOB says an owner who submitted a mitigation report in 2025 does not need to submit it again in 2026. 1 RCNY §103-14(i)(2), Penalty mitigation guide

The decarbonization plan path has closed for new filers: the rule date was May 1, 2025, and DOB's February 2026 timeline shows December 31, 2025 after the first-year extension. Owners on it must finish the work for the 2024 limit within 24 months, show an approved application for the 2030 limit by May 1, 2028, and cannot claim RECs for 2024 to 2029. 1 RCNY §103-14(i)(2), DOB enforcement presentation

Mediated resolution and enforcement

DOB may offer a mediated resolution where the owner has filed a report, has shown good faith efforts, and the agreement would help the building reach its limit. It is an agreement not to bring an enforcement proceeding, with terms such as a compliance plan. If the owner does not keep to it, enforcement can follow for each year covered, and it can transfer to a later owner who consents. 1 RCNY §103-14(j)(3)

DOB's February 2026 presentation describes a Notice of Deficiency that gives the owner a set time to correct, pay or challenge: 60 days from the notice date for failure to file, and 30 days for exceeding the limit. The presentation says a failure to file notice can be resolved at zero penalty by submitting an extension request and the report within that time. A matter not resolved can go to the Office of Administrative Trials and Hearings, and penalties can also be recovered by the Corporation Counsel in court. DOB enforcement presentation, §28-320.6.4

Section 5

Deadlines and filing

The law sets May 1 each year. The service notices below show how DOB applied it in 2025 and 2026. The February 2026 notice says the extensions issued by service notice in 2025 do not apply to filing year 2026. February 2026 notice

Table 7. Dates coming up

Date	What happens
December 31, 2026	Last day for qualifying electrification equipment to count as installed and operating before January 1, 2027, the cutoff for the larger coefficient. 1 RCNY §103-14(d)(3)(vii)
February 1, 2027	Extension documentation, not a filing deadline. Where the design professional could not finish on time, the acceptable documentation the rule lists includes a contract executed no later than February 1 of the filing year, with an affidavit. DOB says professional attestation is not required to apply for an extension. 1 RCNY §103-14(g)(2)(i), February 2026 notice
May 1, 2027	Article 320 report for calendar year 2026. First report for Compliance Pathway 1 buildings. First report in which every owner must use the Portfolio Manager property type factors. §28-320.3.7, 1 RCNY §103-14(b)(8), (c)(3), DOB limits page
60 days after May 1	Each year, the end of the grace period for late filing (see Table 6), and the last day to apply for an extension. Applications open 30 days before May 1. In 2026 this date was June 30. DOB had not published 2027 dates when we checked. 1 RCNY §103-14(g), February 2026 notice
120 days after May 1	Each year, the filing date for an extension on the ground that the design professional could not finish. In 2026 this date was August 29. On a square footage challenge the 120 days instead run from the first Department of Finance determination after the challenge began. 1 RCNY §103-14(g)(2), February 2026 notice
May 1, 2028	Owners who filed a decarbonization plan must show that DOB has approved a complete application for the work needed to meet the 2030 to 2034 limit. 1 RCNY §103-14(i)(2)
December 31, 2029	Last calendar year of the 2024 to 2029 compliance period, and the last year of equipment operation that earns a beneficial electrification coefficient. 1 RCNY §103-14(d)(3)(vii), Article 320 guide
January 1, 2030	The 2030 to 2034 compliance period begins. Reports on calendar year 2030 are due by May 1, 2031. 1 RCNY §103-14(b), (c)(3)(iii)
January 1, 2035	The 2035 to 2039 compliance period begins, and limits begin for Compliance Pathway 2 buildings. §28-320.3.9
May 1, 2036	First report for Compliance Pathway 2 buildings. 1 RCNY §103-14(b)(8)
January 1, 2050	A factor of 0.00 applies to every property type for reports on 2050 and later. 1 RCNY §103-14(c)(3)(vi)

Table 8. Dates already passed

Date	What happened
December 31, 2024	Article 321 buildings had to complete the prescriptive measures, unless they met the performance test. §28-321.2.2
January 1, 2025	Adjustment applications under §28-320.8 and §28-320.9 closed. DOB LL97 page
May 1, 2025	First Article 320 report, covering 2024, and the one-time Article 321 report. §28-320.3.7, §28-321.3
December 31, 2025	Final date for first-year reports for owners who requested an extension by August 29, 2025. That relief was for 2025 only. June 2025 notice, February 2026 notice
May 1 and June 30, 2026	Reports covering 2025 were due May 1 and no later than June 30, which was also the last day to request an extension. February 2026 notice
August 29, 2026	Extended filing date for reports covering 2025. February 2026 notice

Who must certify

Article 320 annual report: a registered design professional. §28-320.3.7
Article 321, limit path: a registered design professional. §28-321.3.1
Article 321, prescriptive path: a qualified retro-commissioning agent, not on the staff of the building. 1 RCNY §103-17(a), (b)(2)
Condominiums: the board of managers submits one report that includes all units. 1 RCNY §103-14(b)(2)
Adjustments: filed by a registered design professional. Financial applications include documentation from a certified public accountant. 1 RCNY §103-12
Extension requests: DOB says no professional attestation is required. February 2026 notice

How filing works

The owner pays the fee in DOB NOW: Safety, the energy data is shared through ENERGY STAR Portfolio Manager, and the report is submitted in the BEAM reporting portal. NYC Accelerator, Extension guide

Filing fees are $210 for a simple report, $615 for a complex report, $60 for an extension request and $950 for a good faith efforts report. 1 RCNY §101-03

An extension may be granted where the design professional could not finish on time or the owner has a pending square footage challenge with the Department of Finance. It does not change the obligation to meet the limit for that year. Owners must keep their documentation for at least six years. 1 RCNY §103-14(b)(1), (g)(2), §28-320.3.7.1

A new owner who is a subsequent bona fide purchaser does not need to report for the calendar year title transfers. An owner with a full demolition permit may be excused for the year demolition begins, with a design professional's certification. 1 RCNY §103-14(b)(6), (b)(7)

Section 6

Ways to comply

Work in the building lowers the energy that counts. Credits and deductions then reduce what is reported, each with its own limit.

Efficiency and operations

Reducing energy use lowers emissions directly under the formula in Section 3. Of the 470 Article 320 properties DOB reports over their limits for 2024, 149 were over by less than 10 percent and 124 by more than 50 percent. DOB compliance report

Limits. None in the rule. All energy consumed counts, including fuel for normal testing of emergency generators. 1 RCNY §103-14(d)(4)(ii)

Beneficial electrification

Efficient electric heating, cooling and hot water equipment that displaces fossil fuel, steam or less efficient electric heat earns a negative coefficient: -0.0013 tCO2e per kWh for equipment installed and operating before January 1, 2027, and -0.00065 for January 1, 2027 through December 31, 2029. 1 RCNY §103-14(d)(3)(vii)

Equipment outside the rule's list needs a coefficient of performance above 1.5 at 5°F or lower. Use can be metered, or deemed for equipment under 1,200,000 Btu/h. Savings from equipment operated in 2024 and prior may be used in any six calendar years between 2024 and 2036, with fewer years for later equipment. 1 RCNY §103-14(a), (d)(4)(iii)

Limits. Savings can only be earned from equipment operated through 2029, and in any reporting year from 2024 to 2036 in which the building is over its limit they must be applied. One year's savings apply whole, to one year, and cannot be combined. New buildings that LL154 requires to be all-electric may not take it. 1 RCNY §103-14(d)(4)(iii)(c), Article 320 guide

Solar and energy storage

Electricity exported by on-site solar can be deducted from utility electricity. On-site storage earns a deduction based on its rated capacity. Off-site solar purchased by the owner can carry a coefficient of 0.0. Bulletin 2025-014 sets a simpler method for off-site storage deductions. 1 RCNY §103-14(d)(3)(vi), (e)(2), Bulletin 2025-014

Limits. The on-site deductions are written for calendar years 2024 to 2029. An owner who registers RECs from an on-site system may not also take the deduction for that energy. Off-site solar counts only if it sinks into Zone J. 1 RCNY §103-14(d)(3)(vi), (e)(1), (e)(2)

Renewable energy credits

A REC must come from a capacity resource located in, or sinking directly into, Zone J, be from the reporting year, and be owned and retired by or for the owner. §28-320.3.6.1

DOB said in 2023 that only Tier 4 RECs were permissible and in its June 2025 guide that they have one approved source. REC FAQs, Article 320 guide

NYSERDA's voluntary sale of vintage 2027 Tier 4 RECs ran from August 19 to September 2, 2026, at $35.52 with a 1,000 REC minimum order, and 16,376 of 50,000 were sold. That sale has closed. Because a REC must be from the same year as the reporting year, a 2027 vintage can only serve calendar year 2027, so it does not help the report due May 1, 2027. Confirm with DOB before relying on any purchase. NYSERDA, §28-320.3.6.1

Limits. RECs reduce only emissions from utility electricity, so they cannot offset on-site fossil fuel. An owner on the decarbonization plan path cannot use them for 2024 to 2029. 1 RCNY §103-14(e)(1), (i)(2), REC policy

Greenhouse gas offsets

The only eligible offsets are from the NYC Affordable Housing Reinvestment Fund, which finances electrification at affordable housing. The June 2026 program sheet sets the price at $268 per offset, equal to one metric ton of CO2e. AHRF program sheet, DOB LL97 page

Limits. Up to 10 percent of the building's annual emissions limit. For a multi-building report the cap uses the aggregated limit, and for Article 321 buildings it uses the 2030 limit. 1 RCNY §103-14(e)(3)(vii), AHRF program sheet

Other calculation methods

DOB lists time of use electricity coefficients, campus-style and shared energy systems, biofuels, qualified cogeneration, certain fuel cells, and deductions for separately metered electric vehicle charging. Energy used during a declared state of emergency that affected emissions may be excluded.

Limits. Each has its own metering and documentation requirements. DOB LL97 page, 1 RCNY §103-14(d)

Adjustments under §28-320.7

DOB can adjust a limit where a legal or physical constraint, such as landmark status or lack of access to energy infrastructure, makes the capital work not reasonably possible, or where the cost of financing would prevent a reasonable financial return or the building is in financial hardship. The owner must also show it sought offsets and used the incentive programs it reasonably could. §28-320.7

Applications go in with the annual report, and generally require the maximum offset purchase. Filing fees are $3,540 for external constraints and $690 or $300 for financial constraints. 1 RCNY §103-12, AHRF program sheet, 1 RCNY §101-03

Limits. A §28-320.7(1) adjustment lasts up to three calendar years, and a §28-320.7(2) adjustment up to one. The building must have existed, or had its permit, before November 15, 2019. The applications for §28-320.8 and §28-320.9 closed January 1, 2025. 1 RCNY §103-12, DOB LL97 page

Section 7

How incentives and financing help

Incentives and financing do not change a limit, but they can change what the work costs. They also matter to the law itself: a §28-320.7 adjustment requires the owner to have used the programs it reasonably could.

C-PACE financing

NYC C-PACE is financing, not a grant. It can pay for efficiency, electrification and renewable energy work on most buildings other than one and two family homes. Repayments are collected by the City on the property tax bill. NYCEEC is the City's designated administrator. NYCEEC

Lenders should note that the program requires the consent of any mortgage holder. Rates and terms come from the program lender.

NYC Accelerator

The City's free technical assistance program. It offers building owners and property managers support with upgrades and local law compliance, including help finding incentives and financing. It is advice, not a cash incentive. NYC Accelerator

Con Edison programs

Our catalog carries Con Edison multifamily and commercial efficiency and electrification programs, each with its own rates, caps and installation dates that change by program year.

AMEEP-E is for regulated affordable buildings and HDFC co-ops converting to full-load heat pumps. Its conditions include oil-only heating, and it excludes projects that receive REDi or IRA funding. Neither its fact sheet nor its manual defines IRA funding, so confirm with Con Edison before counting on it. New York incentives

Federal changes

The 2025 federal tax law changed what owners can count on. The Section 179D deduction is not allowed for property whose construction begins after June 30, 2026. IRS FAQs, our 179D note

The Section 48E investment credit now ends for wind and solar placed in service after December 31, 2027, unless construction began by July 4, 2026. Storage has different rules. Confirm your position with a tax advisor. 26 U.S.C. §48E, our ITC page

Program rules change, and whether any program applies depends on the building, so we quote no amounts here and no stacked totals. See New York incentives on IncentEdge, each with its source.

Section 8

What to do next

Find each building on the Covered Buildings List. Confirm the pathway, floor area and BIN, and dispute anything wrong with Ticket #1 in BEAM.
Confirm that the reports for 2024 and 2025 were filed, and pull any Notice of Deficiency.
Compare your emissions with the limits for 2030 to 2034 in Table 3, not only today's, using the right property type for each space.
Engage a registered design professional early. For an extension on the ground that the professional could not finish, the rule lists a contract executed by February 1 of the filing year as acceptable documentation.
Decide whether any electrification can be installed and operating before January 1, 2027.
Ask NYC Accelerator for free help, and list the incentives and financing that fit your work.
Talk to your mortgage lender early if C-PACE or other new debt is part of the plan.
If your pathway reports in 2027, file by May 1, and keep your documentation for at least six years.

See what this means for your building

CityLens has a free Local Law 97 fine lookup for any NYC building. IncentEdge shows the incentives a project may qualify for, each with its source. Both give estimates from public records and published program rules, not a DOB determination.

Look up your building on CityLens See incentives on IncentEdge

Section 9

Frequently asked questions

Does Local Law 97 apply to my building?

It generally applies to a building over 25,000 gross square feet, two or more buildings on one tax lot that together exceed 50,000 gross square feet, or two or more condominium buildings under the same board of managers that together exceed 50,000 gross square feet, using Department of Finance records. Check the Covered Buildings List on the DOB website. It shows your compliance pathway, and you can dispute it with Ticket #1 in the BEAM reporting portal if it is wrong.

How much is the penalty, and does paying it end the obligation?

The civil penalty for exceeding the limit is up to $268 for each metric ton of CO2e over the limit, for each calendar year. Paying does not end the obligation. The limit applies again the next year, and DOB says in its REC policy that penalties do not excuse non-compliance.

When is the next report due?

For Article 320 buildings already reporting, the next report is due by May 1, 2027, and covers calendar year 2026. That is also the first report for buildings on Compliance Pathway 1, which have at least one rent regulated unit but are not over 35 percent rent regulated. Buildings on Compliance Pathway 2 file their first report by May 1, 2036.

Who has to certify the report?

An Article 320 report must be certified by a registered design professional. An Article 321 report showing the building met its limit is also certified by a registered design professional. An Article 321 prescriptive measures report is certified by a qualified retro-commissioning agent. DOB says no professional attestation is needed to apply for an extension.

What happens if we file late?

The Administrative Code spares a report demonstrating compliance filed within 60 days of the deadline, and DOB says more broadly that no penalties will be issued if the report is filed within 60 days of May 1. After that the penalty can reach the gross floor area multiplied by $0.50 for each month the report is not submitted within the 12 months following May 1, and DOB counts the months from May 1. An owner may apply for an extension no earlier than 30 days before and no later than 60 days after May 1. In 2026 an extension moved the filing date to August 29. A late report that also shows emissions over the limit can face both penalties.

We are a co-op or condominium. What is different?

A condominium files one report covering every unit, and the board of managers submits it. Co-ops and condominiums meet the same limits as other buildings unless another pathway applies, and HPD says HDFC co-ops are always covered by Article 321. For a financial adjustment, a co-op or condominium shows through a certified public accountant a three year average increase in annual carrying charges per unit of 5 percent above inflation, along with the other conditions in 1 RCNY §103-12(c).

My building has rent stabilized units. Which rules apply?

It depends on the share of units. A building over 35 percent rent regulated falls under Article 321. A building with at least one rent regulated unit that is not over that share falls under Article 320 on Compliance Pathway 1, with limits from 2026 and a first report by May 1, 2027. A building in a project-based federal housing program falls under Article 321 with any number of participating units, and tenant-based vouchers do not count. The Covered Buildings List shows the pathway DOB has on record.

Can we meet the limit with credits or offsets alone?

Generally not. Offsets from the Affordable Housing Reinvestment Fund, the only ones eligible, are capped at 10 percent of the annual emissions limit and are priced at $268 each. Renewable energy credits can only be deducted from emissions tied to utility electricity, must meet the Zone J requirements in the law, and cannot be used for 2024 to 2029 by an owner who took the decarbonization plan path.

What is the deadline for the larger electrification credit?

The rule gives qualifying equipment installed and operating before January 1, 2027 a beneficial electrification coefficient of negative 0.0013 tCO2e per kWh. Equipment installed and operating from January 1, 2027 through December 31, 2029 gets negative 0.00065, half as much. Savings can be used or banked for later years within limits set by the rule, and must be applied in a year the building is over its limit.

I am buying or lending on a building. What should I check?

Confirm the compliance pathway on the Covered Buildings List, then ask for the filed reports, any Notice of Deficiency, any adjustment and any mediated resolution. The rule lets a subsequent bona fide purchaser skip the report for the calendar year in which title transfers, and lets a mediated resolution transfer to a new owner who consents. If C-PACE is part of the plan, the program requires the consent of the mortgage holder.

Section 10

Sources

Every source below was read on October 31, 2026. We list the document or page, not a summary of it.

Greenhouse Gas Emissions Reduction (LL97). NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/site/buildings/codes/ll97-greenhouse-gas-emissions-reductions.page
NYC Administrative Code, Title 28, Chapter 3, Articles 320 and 321. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/codes-pdf/cons_codes_2022/2022GAP_Chapter3_MaintenanceWBwm.pdf
Local Law 97 of 2019. New York City Council. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/local_laws/ll97of2019.pdf
Local Law 147 of 2019. New York City Council. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/local_laws/ll147of2019.pdf
1 RCNY §103-14, Requirements for Reporting Annual Greenhouse Gas Emissions for Covered Buildings. NYC Department of Buildings. Most recent amendment effective January 19, 2025, per the promulgation record. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/rules/1_RCNY_103-14.pdf
Promulgation Details for 1 RCNY §103-14. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/rules/1_RCNY_103-14_prom_details_date.pdf
1 RCNY §103-17, Energy Conservation Measure Requirements for Certain Buildings. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/rules/1_RCNY_103-17.pdf
1 RCNY §103-12, Applications for an Adjustment of Annual Greenhouse Gas Emission Limits. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/rules/1_RCNY_103-12.pdf
1 RCNY §101-03, Fees. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/rules/1_RCNY_101-03.pdf
Service Notice, February 27, 2026: Deadlines for Sustainability Laws in 2026. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/sustain_dead-sn.pdf
Service Notice, March 30, 2026: 2026 Covered Buildings List for Local Law 97. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/cov_build-sn.pdf
Service Notice, June 16, 2025: Additional Support Available for Covered Buildings. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/ll97compliance-ext-sn.pdf
DOB's Enforcement of Article 320 of LL97, February 2026 presentation. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/ll97_enforce-web.pdf
LL97 GHG Emissions Violations. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/site/buildings/codes/greenhouse-gas-emissions-reductions-violations.page
Buildings Emissions Limits Under Local Law 97 of 2019. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/site/buildings/codes/ll97-buildings-emissions-limits.page
LL97 Covered Buildings List FAQs. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/site/buildings/codes/ll97-cbl-faq.page
Covered Buildings List Matrix. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/cbl_matrix.pdf
Article 320 Information Guide, Version 1.4, June 30, 2025. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/article_320_guide.pdf
User Guide, Article 320 Penalty Mitigation, Version 3, April 15, 2026. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/pen_mit_article320.pdf
User Guide, Local Law 97 Extension Requests, Version 4, April 15, 2026. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/extension_req.pdf
RECs Frequently Asked Questions, September 2023. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/recs_faqs.pdf
Renewable Energy Certificate Policy for Local Law 97, September 2023. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/ll97_recs_policy.pdf
NYC Affordable Housing Reinvestment Fund Offset Program, June 2026. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/ahrf_offsets.pdf
Buildings Bulletin 2025-014, Off-site Energy Storage, December 8, 2025. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/bldgs_bulletins/bb_2025-014.pdf
Local Law 97: 2024 Compliance and Reporting Rates. NYC Department of Buildings. Checked October 31, 2026.
https://www.nyc.gov/assets/buildings/pdf/ll97yr1.pdf
95% of Large Buildings Meet Climate Emissions Limits, September 25, 2026. NYC Mayor's Office. Checked October 31, 2026.
https://www.nyc.gov/mayors-office/news/2026/09/95--of-large-buildings-meet-climate-emissions-limits-as-mamdani-
FAQs: Local Law 97 Guidance for Affordable Housing, June 2026. NYC Department of Housing Preservation and Development. Checked October 31, 2026.
https://www.nyc.gov/assets/hpd/downloads/pdfs/services/ll97-faqs.pdf
Local Law 97. NYC Accelerator. Checked October 31, 2026.
https://accelerator.nyc/building-laws/ll97
Technical Assistance. NYC Accelerator. Checked October 31, 2026.
https://accelerator.nyc/technical-assistance
Glen Oaks Vil. Owners, Inc. v City of New York, 2025 NY Slip Op 03101. New York Court of Appeals. Checked October 31, 2026.
https://nycourts.gov/reporter/3dseries/2025/2025_03101.htm
FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D under Public Law 119-21. Internal Revenue Service. Checked October 31, 2026.
https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb
26 U.S.C. §48E, Clean electricity investment credit. Legal Information Institute, Cornell Law School. Checked October 31, 2026.
https://www.law.cornell.edu/uscode/text/26/48E
Tier 4 REC Voluntary Sales, Vintage 2027. New York State Energy Research and Development Authority. Checked October 31, 2026.
https://www.nyserda.ny.gov/All-Programs/Clean-Energy-Standard/Voluntary-REC-Sales/Tier-4-REC-Voluntary-Sales/2027-Voluntary-Sales
NYC C-PACE. NYC Energy Efficiency Corporation, program administrator. Checked October 31, 2026.
https://nyceec.com/nyc-c-pace/

General information, not legal advice

This page is general information. It is not legal, tax or engineering advice, and it does not determine how the law applies to your building. Confirm your obligations with DOB, at [email protected], or with a registered design professional. IncentEdge is not part of the City of New York. We do not guarantee compliance, savings or any penalty outcome.