With Local Law 97 (LL97) enforcement officially beginning in 2025, the time for planning is over—building owners and developers must take action now. The regulation, part of New York City’s Climate Mobilization Act, sets strict carbon emissions caps for buildings over 25,000 square feet, making it one of the most ambitious building decarbonization laws in the country.
Failure to comply could result in significant financial penalties, but beyond the fines, the law presents an opportunity to enhance energy efficiency, reduce long-term operating costs and future-proof properties against evolving climate policies.
Starting this year LL97 requires buildings to begin tracking and reporting their emissions, with annual reporting due every May 1st. Here’s a breakdown of what building owners should be preparing for:
Buildings that exceed their carbon caps will face steep fines, calculated at $268 per metric ton of CO₂ over the limit—a number that could result in millions of dollars in penalties for non-compliant properties.
The law applies to:
Certain property types, such as affordable housing, hospitals and houses of worship, may qualify for modified emissions limits or compliance pathways. Many building owners focus on avoiding fines, but the financial impact of failing to meet LL97’s emissions caps extends beyond penalties:
Achieving compliance requires a proactive, strategic approach. Luckily, solutions exist today that can help buildings reach emissions targets without disrupting operations. For most buildings, compliance with LL97 starts with two key strategies: electrification and energy efficiency retrofits. These solutions not only reduce emissions but also lower operating costs and future-proof assets against tightening regulations.
One of the fastest ways to drive down emissions is by electrifying heating and cooling systems. Traditional gas and oil boilers contribute heavily to a building’s carbon footprint, and under LL97’s emissions caps, continuing to rely on fossil fuel-based systems could result in steep financial penalties.
Heat pumps and geothermal heating and cooling are leading the transition. These systems deliver higher efficiency, lower operating costs and long-term sustainability—all while cutting direct building emissions to near zero. New York State offers a range of incentives to ease the transition, making electrification an increasingly viable and cost-effective solution.
Even partial electrification—such as replacing inefficient boilers with hybrid systems or integrating ground source heat pumps in targeted areas—can help lower emissions and move buildings toward full compliance.
Before overhauling major systems, optimizing what already exists can yield significant energy and cost savings. Energy efficiency retrofits help reduce total demand, making electrification more effective while ensuring buildings remain compliant with LL97.
Key upgrades include:
These improvements don’t just help meet initial LL97 thresholds—they set buildings up for success in 2030 and beyond, when emissions limits become even stricter.
With LL97 reporting officially taking effect, waiting is no longer an option. The path to compliance requires planning, investment and the right expert partner to guide the process. The question isn’t whether LL97 will affect your property—it’s how you’ll adapt, lead and take advantage of the opportunities ahead.
Brightcore Energy specializes in turnkey energy solutions to help building owners meet LL97 requirements without disruption. From geothermal heating and cooling to energy-efficient lighting, on-site renewables and demand management, our team provides the expertise needed to transform buildings into low-carbon, high-performance assets.
Stay informed and get ahead of compliance.
Contact Brightcore Energy to learn how we can help.