How to Calculate Local Law 97 Fines
Published on: June 11, 2024

How to Calculate Local Law 97 Fines: A Comprehensive Guide

Local Law 97, part of New York City’s Climate Mobilization Act, mandates that buildings over 25,000 square feet reduce their greenhouse gas (GHG) emissions to meet specific targets by 2024 and even stricter ones by 2030. Failure to comply with these standards results in substantial fines.

 Here's a step-by-step guide to calculating the fines under Local Law 97.

Here is a step by step guide to calculate your LL97 fine

Step 1: Determine Your Building's Emissions Limit

First, identify your building’s emissions limit. This is calculated based on the building’s occupancy group, as defined by the NYC Building Code. Each group has a specific emissions limit measured in kilograms of CO2 equivalent per square foot per year (kgCO2e/sqft/yr). For example, office buildings might have a different limit than residential buildings.

Building Type2024 Emissions Limit (kgCO2e/sqft/yr)
Residential (R-2)4.53
Office (B)8.46
Retail (M)8.46
Hospital (I-2)23.81
Hotel (R-1)9.87
Warehouse (S)2.19
Educational (E)8.46
Other Institutional (I-1, I-3, I-4)8.46
Assembly (A)8.46
Manufacturing (F)8.46
Transportation (H, U)8.46

Step 2: Calculate Your Building's Actual Emissions

Next, calculate your building’s actual emissions. This involves gathering data on the building’s energy consumption, including electricity, natural gas, steam, and other fuels. Convert this energy usage into CO2 equivalents using the emission factors provided by the New York City Department of Buildings (DOB). Sum these values to get the total annual GHG emissions in metric tons.  —- Or give us a call at 212.579.4236 to see if you qualify for NYSREDA flex-tech funding.


NYC Emissions Rates.xlsx

Utility Electricity0.08469
Natural Gas0.05311
#2 Fuel Oil0.0742
#4 Fuel Oil0.07529
District Steam0.04493

Step 3: Compare Actual Emissions to the Limit

Subtract the emissions limit (Step 1) from your building’s actual emissions (Step 2). If the result is positive, your building exceeds the allowed emissions limit and is subject to fines.

IF the result is positive... Then You Owe a Penalty

Step 4: Calculate the Fine

Local Law 97 stipulates that buildings exceeding their emissions limits will be fined $268 per metric ton of CO2 equivalent over the limit. To calculate the fine, multiply the excess emissions (in metric tons) by $268.

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By way of Example

Emissions Limit: 10 kgCO2e/sqft/yr for a 50,000 sqft building = 500 metric tons CO2e/yr
Actual Emissions: 600 metric tons CO2e/yr
Excess Emissions: 600 - 500 = 100 metric tons CO2e/yr
Fine: 100 metric tons CO2e * $268 = $26,800

How to avoid or mitigate Local Law 97 Fines?

Implement Energy Efficiency Measures or Purchase Zone J Sourced Rec's
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