NYC Local Law 97

Administered by: NYC Department of Buildings, with policy oversight by the NYC Mayor's Office of Climate and Environmental Justice Status: Active in 2026 Verified: May 27, 2026 against Local Law 97 overview, NYC Sustainability Source quality: Primary

What it is

Local Law 97 is a NYC law that caps carbon emissions from buildings over 25,000 square feet. It was enacted as part of the Climate Mobilization Act of 2019. The first compliance period runs 2024 through 2029. The second compliance period begins in 2030 and tightens the emissions limits significantly.

The law does not apply to most 1-3 family homes. If you own a row house, a small townhouse, or a detached single-family in any borough, your building is almost certainly under the 25,000 square-foot floor and is exempt. The most common case where a 1-3 family owner becomes subject to Local Law 97 is when several adjacent properties share a single tax lot above the threshold; that is rare for individual homeowners.

The law does apply to most co-op and condo buildings in Manhattan and the denser parts of Brooklyn and Queens, plus large rental buildings citywide. If you are a shareholder in a co-op or a unit owner in a condo, your building's compliance plan affects the assessments you pay and the timing of capital projects. The board, not the individual unit owner, is the regulated party — but the financial impact passes through.

Who qualifies

The relevant question for Local Law 97 is not "who qualifies" but "who is in scope."

In scope. Buildings over 25,000 gross square feet. Two or more buildings on the same tax lot whose combined area exceeds 50,000 gross square feet. Two or more buildings governed by the same condominium declaration whose combined area exceeds 50,000 gross square feet.
Out of scope. Most 1-3 family homes. Buildings owned by NYCHA. Houses of worship and certain other exempt property classes. Real-property income-and-expense filings determine final classification.
Partially in scope. Buildings with rent-regulated units have separate compliance pathways through 2026 and limited obligations during compliance period one.
The Department of Buildings publishes a covered-buildings list. If your address is on the list, your building is in scope and the compliance clock has started.

What you get

Local Law 97 is not a rebate. It is a regulatory cap with financial penalties for non-compliance. The numbers that matter are the penalty figures and the per-property emissions limits.

Penalty: $268 per metric ton of CO2-equivalent above the building's annual limit, charged annually based on the prior calendar year's emissions.
Compliance period one (2024-2029): the looser emissions threshold, designed so that roughly 20% of covered buildings would face a penalty if no work were done.
Compliance period two (2030-2034): the tighter threshold, designed so that a much larger share of covered buildings would face a penalty without retrofits.
Compliance pathways: direct emissions reductions, building electrification, purchase of a limited quantity of greenhouse-gas-offset RECs (capped by the law), and beneficial-electrification credit for heat pump conversions.
Specific per-building emissions limits are calculated by the Department of Buildings based on occupancy group and square footage. Use the DOB Local Law 97 tool to look up your address.

How to apply

There is no "application." Local Law 97 is a reporting obligation. The annual cycle:

By May 1 of each year, the building owner files an emissions report covering the prior calendar year through the Department of Buildings online portal.
The filing includes calendar-year energy consumption data, occupancy classification, and the resulting emissions calculation.
A registered design professional (a professional engineer or registered architect) must certify the filing.
If the building exceeds its emissions limit, the Department of Buildings issues a penalty notice for the year, calculated at $268 per metric ton over.
If the building is below its limit, the filing closes for the year. Compliance for one year does not waive the obligation to file the next year.
Co-op and condo boards typically engage NYC Accelerator or a private consultant to handle the filing on behalf of the building.

How this stacks with other programs

Local Law 97 compliance is the demand. The supply side is the state and utility rebate stack that funds the retrofits.

NYC Accelerator. The first call for any building newly aware that it is in scope. Accelerator advisors translate the emissions limit into a project list and pair the project list with available rebates.
NYS Clean Heat. Heat pump conversions are the most effective single move for steam- and oil-heated NYC buildings under the emissions cap. Clean Heat rebates flow through Con Edison for buildings in the city and can fund a large share of the equipment cost.
NY-Sun. Rooftop solar reduces a building's grid-electricity emissions footprint and counts toward compliance. NY-Sun rebates pay the upfront capital. Community solar subscriptions do not count toward the building's Local Law 97 emissions in the same way that on-site generation does; confirm the treatment with your engineer before relying on it.
NYC PACE Financing. PACE is the most common financing source for capital-intensive Local Law 97 retrofits in commercial and large multifamily buildings. The PACE assessment stays with the property if it sells.
Location-specific stacking. The boroughs differ in fuel mix and building age. See Manhattan, Brooklyn, Queens, the Bronx, and Staten Island for borough-level notes.

What to ask your contractor

For a co-op or condo board engaging a contractor on a Local Law 97 retrofit:

Have you delivered a Local Law 97-driven retrofit on a building of this size and occupancy class, and what was the measured emissions reduction?
Does your proposal include the modeling work required to defend the projected emissions reduction in the annual DOB filing?
For compliance period two starting in 2030, does the proposed scope put the building under that period's limit, or only under the 2024-2029 limit?
Which rebates are baked into the price, and which are filed separately after the install?
Does the scope require a registered design professional sign-off, and do you carry that capacity in-house or through a named subcontractor?

Common pitfalls

Co-op and condo owners assuming the law does not affect them. A unit owner in a building over the threshold is not personally regulated, but the building is. Assessments, board votes, and capital-project timing are all driven by the law. If you live in a building over 25,000 square feet, ask your board for the Local Law 97 compliance plan.
Designing only to the period-one limit. A retrofit that hits the 2024-2029 limit but not the 2030 limit will trigger a second round of work, and a second round of disruption to residents, at the next step. Period-two limits are tighter for almost every occupancy class.
Treating RECs as a long-run compliance plan. The law caps how much offset can be purchased and is expected to tighten that cap. Buildings that rely on RECs as a primary compliance tool risk a shortfall once the cap binds.
Late filings. Penalty for failing to file the annual report is separate from and additional to the per-ton penalty for exceeding the cap.
Confusing Local Law 97 with Local Law 87 or Local Law 88. Local Law 87 is the energy audit and retro-commissioning rule on a 10-year cycle. Local Law 88 is the lighting and submetering rule. Local Law 97 is the emissions cap. All three apply to many of the same buildings, and the compliance windows do not line up.

Important dates

May 1, annually: Local Law 97 emissions report due to the Department of Buildings for the prior calendar year.
2024-2029: Compliance period one limits in effect.
January 1, 2030: Compliance period two begins; emissions limits step tighter.
2035 and beyond: Further tightening is in the law and is expected to be revised through subsequent rulemaking.

Source

Local Law 97 overview page, NYC Sustainability (retrieved May 27, 2026)
NYC Department of Buildings Local Law 97 compliance information (retrieved May 27, 2026)
Climate Mobilization Act of 2019 text, NYC Council (retrieved May 27, 2026)

NYSERB.com is an independent research site. It is not affiliated with the NYC Department of Buildings, the NYC Mayor's Office of Climate and Environmental Justice, the City of New York, the State of New York, or any utility. Verify all program details and emissions limits directly with the NYC Department of Buildings before making any financial decision.

Verified against www.nyc.gov, accelerator.nyc on May 27, 2026.