Local Law · Energy & carbon
Local Law 97: NYC’s building carbon caps
Local Law 97 puts an annual limit on the carbon your building can emit — and fines every ton over the line at $268. It’s the largest new compliance cost most large NYC buildings have ever faced, and the limits get much tougher in 2030.
See your building’s cap and potential penalty in seconds.
Open the LL97 calculator →What Local Law 97 requires
Local Law 97, the centerpiece of NYC’s Climate Mobilization Act, sets a carbon-emissions cap on most buildings over 25,000 square feet. The cap is an intensity limit — a number of metric tons of CO₂e allowed per square foot per year — that depends on how the building is used. Multiply that intensity by your gross floor area and you get your building’s allowed tons for the year. Emit more, and you owe $268 for every metric ton over the limit.
Separately, every covered building must file an annual emissions report, prepared by a registered design professional, by May 1. Missing the report carries its own penalty of $0.50 per square foot per month.
Which buildings are covered
- Any building over 25,000 gross square feet;
- Two or more buildings on the same tax lot together exceeding 50,000 sq ft;
- Two or more condominium buildings governed by the same board together exceeding 50,000 sq ft.
That’s roughly 50,000 buildings — about 60% of the city’s built floor area. Certain rent-regulated, affordable, and religious buildings follow an alternate compliance path rather than the standard caps.
The 2030 cliff
The first compliance period (2024–2029) is based on 2024 emissions. The 2030–2034 limits are roughly 40–60% lower for most building types. A building comfortably under its cap today can face six or seven figures in annual penalties in 2030. The Empire State Building, for example, is under its current office cap — but at today’s emissions would owe roughly $1 million a year once the 2030 limits take effect. Plan for 2030 now, not in 2029.
How to comply
- Benchmark accurately. Your Local Law 84 benchmarking data feeds your LL97 number — clean it up first.
- Know your cap. Use the calculator to see your 2024–2029 and 2030–2034 limits and any gap.
- File the annual report by May 1, prepared by a registered design professional.
- Cut emissions where the gap is: electrification, controls, envelope, and — for electricity — renewable energy credits (RECs) that can offset grid emissions.
- Document good-faith efforts. A filed decarbonization plan and demonstrated progress can reduce or defer 2024–2029 penalties.
Common mistakes
- Assuming you’re fine because you pass the 2024–2029 cap — and ignoring 2030.
- Letting benchmarking data drift, which inflates your reported emissions and your penalty.
- Missing the May 1 report even when emissions are under the cap — the late-filing penalty applies regardless.
- Treating RECs and offsets as unlimited; the law caps how much they can cover.
Reviewed against current NYC agency guidance by the NYC Building Compliance editorial team. Found something out of date? Tell us. Informational only — not legal or engineering advice.
Frequently asked questions
How much is the Local Law 97 penalty?
$268 for every metric ton of CO₂e your building emits above its annual limit, assessed each year. Failing to file the annual emissions report adds $0.50 per square foot per month.
When is the Local Law 97 report due?
May 1 each year, prepared by a registered design professional. The first compliance period covers 2024–2029, based on calendar-year 2024 emissions.
How do I lower my Local Law 97 penalty?
Reduce actual emissions (electrification, controls, envelope work), buy renewable energy credits to offset electricity emissions within the allowed cap, and file a decarbonization plan documenting good-faith efforts, which can reduce or defer early-period penalties.
Does Local Law 97 apply to co-ops and condos?
Yes. Individual buildings over 25,000 sq ft are covered, and condo buildings under one board can be aggregated over 50,000 sq ft. Some affordable and rent-regulated buildings use an alternate path.
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NYC Building Compliance is an independent resource, not the City of New York. Rules and dollar amounts change — always confirm against the official pages above or a licensed professional before acting.