By Wayne Arden, Vice-Chair, Sierra Club New York City Group
In 2019, New York City enacted the Climate Mobilization Act, which became known as Local Law 97. The law addresses building emissions, which account for nearly 70% of all emissions in NYC. Local Law 97 requires buildings larger than 25,000 square feet to meet greenhouse gas emissions caps, beginning in 2024. The law applies to large buildings, which account for 70% of total building emissions. The aim of the law is to achieve at least a 40% reduction of carbon emissions by 2030 and over 80% by 2050 from the affected buildings. Buildings that include affordable or rent-regulated housing may qualify for prescriptive or delayed compliance. The law is one of the most ambitious building emission laws globally because it applies to existing buildings as well as new buildings.
The Sierra Club strongly supports Local Law 97 and views it as one of three foundational NYC initiatives that lower emissions. In 2023, NYC enacted the ZEV for NYC Act (Local Law 140) and on January 5 of this year finally implemented congestion pricing. These two programs address transportation emissions, the second largest source of emissions in the City.
Local Law 97 gets progressively more stringent over time. There are four compliance periods: The Initial Compliance Period (2024-2029), the Second Compliance Period (2030-2034), the Third Compliance Period (2035-2039), the Fourth Compliance Period (2040-2049). Buildings that exceed emission limits will face penalties—up to $268 per metric ton of CO₂ emissions over an applicable limit. According to a preliminary review by the DOB, 89% of buildings comply for the 2024-2029 period. However, in each compliance period the emission caps are lowered. In 2025, the first emission reports are due, and the City will start issuing fines. Most buildings will be able to meet their emission targets by improving efficiency during the first two compliance periods. More substantial investments may be needed starting in the third compliance period.
As time passes, there will be attempts to water down Local Law 97. We’ve already seen it. In 2022, two Queens cooperatives, Glen Oaks Village and Bay Terrace Cooperative Terrace Section I, filed a lawsuit challenging the law. In May, a panel of state Court of Appeals judges dismissed the lawsuit.
Critically, electrification technologies keep advancing and becoming more common. Per RMI, U.S. heat pump sales exceeded gas furnace sales by 32% in 2022, totaling 4.1 million units. Moreover, heat pump sales have increased by 115% over the last 20 years, while gas furnace sales have declined by 11%. Universities and other organizations that own clusters of buildings are turning to geoexchange systems (also described as ground source heat pumps) to switch from fossil fuels to electricity. As Local Law 97 begins to take hold, NYC will develop an ecosystem comprised of architects, engineers, contractors, construction workers, and real estate developers who are skilled in implementing zero-emission building technologies. Over time, other cities will turn to NYC for expertise, strengthening the local economy. And NYC is one of the world’s leading financial centers, home to hundreds of financial firms that are eager to help building owners finance the transition from heating oil and natural gas to electricity.
The end of the old era and the beginning of the new era are just a few blocks apart. One Vanderbilt opened in 2020 and is a 73-story supertall skyscraper. Although it achieved LEED v3 Platinum and LEED v4 Gold certifications, One Vanderbilt uses turbines fueled by natural gas to generate electricity to power the building. By contrast, JPMorgan’s new 60-story supertall headquarters building at 270 Park Avenue is all-electric, with “net zero operational emissions.” JPMorgan will move in later this year. New York has always been a city that is continuously changing—looking to the future.