Energy Audits Under NYC Local Law 87: What You Need to Know
Posted On
October 12, 2023
BY
VertPro® Marketing Team
Introduction
New York City’s iconic skyline represents its thriving urban life and bustling economy. However, beneath the towering structures lies an often-overlooked aspect of the city – its substantial energy consumption. To address the pressing need for improved energy efficiency and sustainability, NYC introduced Local Law 87. This article delves into the intricacies of Local Law 87, its energy audit requirements, and why it matters.
Understanding Local Law 87
Background and History of Local Law 87
Enacted in 2009, Local Law 87 is a part of NYC’s broader sustainability initiatives. It aims to reduce energy consumption and greenhouse gas emissions from buildings, which constitute a significant portion of the city’s energy use. This law mandates energy audits and retro-commissioning for existing buildings, making it pivotal in NYC’s sustainability strategy.
Objectives and Goals of the Law
Local Law 87 strives to enhance energy efficiency, thereby curbing the environmental impact of the city’s building environment. Through energy audits and retro-commissioning, building owners can identify opportunities to improve energy performance and reduce costs.
Applicability and Compliance Requirements
The law applies to buildings in NYC with a floor area exceeding 50,000 square feet. These buildings must undergo energy audits and retro-commissioning at specified intervals (once every 10 years depending on the last digit of the building ID number), ensuring building owners take proactive steps to assess and enhance their energy use.
The Basics of Energy Audits
What is an Energy Audit?
An energy audit is a comprehensive assessment of a building’s energy consumption and performance. It involves a systematic review of energy systems, equipment, and operational practices to identify inefficiencies and areas for improvement.
Different Types of Energy Audits
Energy audits are categorized into three levels:
1. Preliminary Energy Audit: Offers an initial overview of energy consumption and identifies potential improvements.
2. Detailed Energy Audit: Involves a thorough examination of building systems, equipment, and operations.
3. Investment-Grade Energy Audit: The most detailed audit, often used for large-scale projects, includes precise calculations, cost estimates, and performance projections.
Why are Energy Audits Important?
Energy audits are crucial for several reasons:
– Cost Savings: Identify cost-effective energy-saving measures, resulting in significant utility bill reductions.
– Environmental Impact: Reduce greenhouse gas emissions and contribute to a greener, more sustainable city.
– Building Performance: Enhance building performance, improving occupant comfort and satisfaction.
– Regulatory Compliance: Ensure compliance with Local Law 87 and other energy regulations, avoiding penalties and maintaining a positive image.
Benefits of Energy Audits
Cost Savings Through Energy Efficiency
Energy audits lead to immediate and tangible benefits through cost savings. By identifying and implementing energy-saving measures, building owners can substantially reduce utility expenses. Over time, these savings offset audit and improvement costs, providing a positive return on investment.
Reduced Environmental Impact
NYC has ambitious sustainability goals, and energy audits play a pivotal role in achieving them. By reducing energy consumption and greenhouse gas emissions, building owners contribute to a cleaner and greener city, aligning with NYC’s commitment to combat climate change.
Improved Building Performance and Occupant Comfort
Energy audits uncover issues affecting occupant comfort related to building systems and equipment. Addressing these issues creates a more pleasant and productive indoor environment, enhancing tenant satisfaction and retention.
Compliance with Energy Regulations and Certifications
Compliance with Local Law 87 is not just a legal requirement; it’s an opportunity to earn certifications like ENERGY STAR or LEED (Leadership in Energy and Environmental Design). These certifications enhance a building’s marketability and demonstrate a commitment to sustainability.
Who Needs to Comply with Local Law 87?
Types of Buildings Covered by Local Law 87
Local Law 87 applies to various buildings, including commercial, multi-family, and institutional structures. To determine if your building falls under its purview, consider its floor area, which must exceed 50,000 square feet. Multi-building campuses may also be subject to the law if their combined floor area meets this threshold.
Exemptions and Exceptions
While Local Law 87 has broad coverage, there are exemptions and exceptions. Buildings that have undergone an energy audit and retro-commissioning within the past decade may have temporary relief from compliance. Certain religious buildings, low-income housing, and city-owned facilities may be eligible for exemptions.
Deadlines for Compliance
Building owners must adhere to specific compliance deadlines based on the last digit of the tax block number, typically staggered over a ten-year cycle. Missing deadlines can result in penalties, so it’s crucial to stay informed about your building’s compliance schedule.
The Energy Audit Process
Selecting a Qualified Energy Auditor
Choosing the right energy auditor is a critical first step. Auditors should be certified professionals with expertise in building systems and energy efficiency. Building owners can select auditors based on their qualifications, experience, and track record.
Data Collection and Analysis
During the energy audit, data collection is crucial. It involves gathering information about the building’s energy systems, equipment, and operations. Data is analyzed to identify areas for improvement and potential energy-saving measures.
Identifying Energy-Saving Opportunities
Energy auditors work closely with building owners and managers to identify energy-saving opportunities. These may include upgrading HVAC systems, improving insulation, retrofitting lighting, and optimizing building controls.
Recommendations for Improvements
Based on their findings, energy auditors provide detailed recommendations for energy-saving improvements. These recommendations are prioritized based on their potential impact and cost-effectiveness. Building owners can then decide which measures to implement.
Energy Audit Reporting Requirements
Components of the Energy Audit Report
The energy audit report is a comprehensive document outlining the audit process, findings, and recommendations. Typically, it includes:
– Building and energy system descriptions.
– Energy consumption and cost summaries.
– Energy Use Intensity (EUI) analysis.
– Findings from on-site inspections and data collection.
– A list of recommended energy-saving measures.
– Cost estimates and projected savings.
– Implementation timelines.
– Compliance documentation.
Submission and Approval Process
Building owners must submit their energy audit reports to the NYC Department of Buildings (DOB) for approval. Once approved, they must implement the recommended improvements within a specified timeframe.
Documentation and Record-Keeping
Compliance with Local Law 87 also requires meticulous record-keeping. Building owners must retain copies of energy audit reports, compliance documentation, and records related to the implementation of energy-saving measures. These records may be subject to inspection by city authorities.
Cost of Energy Audits
Factors Influencing the Cost
The cost of an energy audit varies based on factors such as building size, complexity, the type of audit, and the auditor’s qualifications. More detailed audits are generally more expensive but can yield higher potential savings.
Potential Financial Incentives and Rebates
NYC offers various financial incentives and rebates to encourage building owners to invest in energy audits and efficiency improvements. These incentives help offset upfront costs, making Local Law 87 compliance more affordable.
Long-Term Cost Savings
While initial audit and improvement costs can be substantial, long-term savings far outweigh these expenses. Building owners can expect reduced energy bills, increased property value, and enhanced marketability, resulting in a favorable return on investment.
Common Challenges and Solutions
Obstacles Faced by Building Owners/Managers
Local Law 87 compliance can present challenges, including audit and improvement costs, tenant coordination, and navigating complex regulations.
Strategies for Overcoming Challenges
Building owners can explore financing options, engage tenants to promote energy-saving behaviors, and seek assistance from qualified professionals and energy service companies (ESCOs) specializing in energy efficiency projects.
Case Studies Illustrating Successful Compliance
Several NYC buildings have successfully complied with Local Law 87, realizing significant energy efficiency improvements and cost savings. These case studies provide practical insights and inspiration for other building owners.
Preparing for Energy Audits
Steps to Take Before the Audit
Pre-audit steps include:
– Gathering historical energy consumption data.
– Assembling building documentation.
– Engaging tenants and staff.
– Identifying energy performance goals.
Engaging Building Occupants and Staff
Tenant and staff cooperation is crucial for energy efficiency initiatives’ success. Educating them about energy conservation benefits and involving them in the process can lead to better outcomes.
Gathering Necessary Documentation and Data
Access to accurate building documentation and energy data is vital for auditors. Building owners should ensure this information is readily available to expedite the audit.
Leveraging Energy Audit Findings
Implementing Recommended Energy-Saving Measures
After the audit, implementing recommendations is where real energy savings occur. Building owners should prioritize and plan for cost-effective measures aligned with energy efficiency goals.
Tracking and Monitoring Energy Usage
Ongoing tracking and monitoring of energy usage are essential. Building management systems and energy management software help measure and report energy performance, ensuring efficiency gains are sustained.
Maximizing the Return on Investment
Energy audits and efficiency improvements are long-term investments. Continual optimization of building performance maximizes return on investment, resulting in sustained cost savings and environmental benefits.
Staying Compliant with Local Law 87
Ongoing Reporting and Compliance Requirements
Compliance is an ongoing process. Building owners must stay informed about compliance obligations and submit subsequent audits and reports as required by the law.
Re-auditing and Re-compliance
Covered buildings must undergo re-auditing and retro-commissioning at specified intervals to maintain energy performance improvements and regulatory compliance.
Staying Informed About Regulatory Updates
Energy efficiency regulations are continually evolving. Building owners should stay informed about changes to Local Law 87 and other relevant regulations to ensure compliance and leverage new opportunities.
Conclusion
Local Law 87 is pivotal in promoting energy efficiency and sustainability in NYC. Energy audits are not just a legal requirement; they offer cost savings, reduced environmental impact, improved building performance, and compliance with evolving energy regulations. As NYC strives for a greener future, building owners have a crucial role in creating a more sustainable and resilient cityscape. Embracing energy audits and complying with Local Law 87 is not merely compliance; it’s a commitment to a brighter, more sustainable future for the city that never sleeps.
Elevate your property’s energy efficiency with VertPro.com, your one-stop solution for Commercial Energy Audits, Benchmark Compliance consultancy, and our cutting-edge Construction Marketplace. As industry pioneers, VertPro® empowers Building Owners and Property Managers nationwide with innovative SaaS technology-based solutions. From Energy Benchmarking to Energy Audits/RCx Plus, we ensure compliance with over 50 Energy Benchmarking and Energy Efficiency Laws.
Don’t miss out on maximizing your property’s energy potential and value. Explore VertPro.com’s comprehensive solutions today, and let us help you unlock the transformation your property deserves.
Get Help With Planning Your 2024 Building Upgrades!
Learn About How Our Free Easy To Use Platform Can Simplify Energy Compliance And Building Upgrades For You
VertPro® is a one-stop shop SaaS platform for building owners & managers to comply with every Energy Benchmark law across the United States, in 30 minutes or less. Beyond energy compliance, use VertPro to simplify your energy upgrades and building improvements. From obtaining multiple pre-screened bids for various energy projects (like Angie’s List, for CRE), to searching for Utility Rebates, to getting professional help identifying which upgrades are best for your specific building, VertPro® simplifies energy efficiency and compliance across your portfolio. Sign up for a free consultation above on our calendar. For any questions, you may reach me at Kevin.Sullivan@VertEnergyGroup.com or give me a call at (949) 200-7728.
Los Angeles Seismic Retrofitting Compliance Assistance
LA Seismic Retrofitting Deadline: May 2, 2024
ORDINANCE 183893 Ordinance 183893 is concerned with the definition and compliance of buildings identified for the seismic retrofit program. Specifically, Ordinance 183893 applies the retrofit requirement to:
Buildings that have a wood frame and were permitted or built before January 1, 1978.
Buildings whose ground floor contain a parking space or other similar open /semi-open spaces.
Buildings that contain four or more dwelling units.
Ordinance 183893 also prioritizes the identification and selection of buildings in the following manner:
Priority I (Highest) - Buildings with 16 or more dwelling units. This priority has two sub-categories:
3 stories and above – the orders were sent out to these buildings on May 2nd, 2016. o 2 story – the orders were sent out to these buildings on July 22nd, 2016.
Priority II - Buildings with 3 or more stories and contain less than 16 units. – The orders were sent out to these buildings on October 17th, 2016.
Priority III - All buildings not falling within Priority I or Priority II
Buildings with 9-15 units – the orders were sent out to these buildings on July 24th, 2017. o Buildings with 7-8 units – the orders were sent out to these buildings on August 21st, 2017. o Buildings with 4-6 units – the orders were sent out to these buildings on September 25th, 2017. o Condos and Commercial units – the orders were sent out to these buildings on November 6th, 2017. ORDINANCE 184081 Ordinance 184081 is concerned with the Time Limits for Compliance for the seismic retrofit program. Specifically, Ordinance 184081 applies the time limits compliance in the following manner:
The owner is expected to submit the structural analysis to demonstrate existing compliance within 2 years of receiving the order.
The owner is expected to submit a structural analysis to demonstrate a proposed structural alteration to meet seismic retrofit requirements within 2 years of receiving the order.
The owner is expected to submit the plans for demolition of the building within 2 years of receiving the order.
The owner is expected to obtain all necessary permits for rehabilitation or demolition within three and a half (3.5) years after the service of the order.
The owner is expected to complete construction or demolition work under all necessary permits within seven (7) years after service of the order.
You Need to Retrofit if: While this can all be quite confusing and if you feel like you might not need to consider a retrofit because it doesn’t match the criteria mentioned above, wait up! The ordinances only apply to wooden structures and non-ductile concrete structures for now. However, it is always wise to check if your building is earthquake ready and if a retrofit may be required. The Department of Building and Safety has already identified the buildings that require a seismic retrofit in the state of California and has sent out notices to each of the property owners requiring them to start work on their properties. Sign up for a free consultation above on our calendar. For any questions, you may reach me at Kevin.Sullivan@VertEnergyGroup.com or give me a call at (949) 200-7728.
Last Chance to Comply Is Approaching! Learn Why:
New York City's Local Law 97 is a subset of the Climate Mobilization act. LL97 is a green energy policy that mandates the reduction of greenhouse gas emissions for buildings over 25,000 sq.ft.
1st Deadline: 2024 (+ additional 40% reduction required by 2030)
Penalties: $268 per metric ton over the limit
Not in compliance with Local Law 97? Time is running out to avoid substantial penalties.
Here's why:
2022 = Plan & Implement Energy Upgrades
2023 = Plan & Implement Energy Upgrades (Last chance to make upgrades)
2024 = 1 full year of proven energy reduction
2025 = Will determine if you are in compliance based on 2024 Benchmark Report
Schedule a consultation to learn about new Seismic Retrofit projects in Los Angeles you may be qualified to bid on:
Difference Between Ordinances:
There are a few key differences between the two ordinances under the LA Mandatory Seismic Retrofit Program. The highlights of each ordinance are detailed below: ORDINANCE 183893 Ordinance 183893 is concerned with the definition and compliance of buildings identified for the seismic retrofit program. Specifically, Ordinance 183893 applies the retrofit requirement to:
Buildings that have a wood frame and were permitted or built before January 1, 1978.
Buildings whose ground floor contain a parking space or other similar open /semi-open spaces.
Buildings that contain four or more dwelling units.
Ordinance 183893 also prioritizes the identification and selection of buildings in the following manner:
Priority I (Highest) - Buildings with 16 or more dwelling units. This priority has two sub-categories:
3 stories and above – the orders were sent out to these buildings on May 2nd, 2016. o 2 story – the orders were sent out to these buildings on July 22nd, 2016.
Priority II - Buildings with 3 or more stories and contain less than 16 units. – The orders were sent out to these buildings on October 17th, 2016.
Priority III - All buildings not falling within Priority I or Priority II
Buildings with 9-15 units – the orders were sent out to these buildings on July 24th, 2017. o Buildings with 7-8 units – the orders were sent out to these buildings on August 21st, 2017. o Buildings with 4-6 units – the orders were sent out to these buildings on September 25th, 2017. o Condos and Commercial units – the orders were sent out to these buildings on November 6th, 2017. ORDINANCE 184081 Ordinance 184081 is concerned with the Time Limits for Compliance for the seismic retrofit program. Specifically, Ordinance 184081 applies the time limits compliance in the following manner:
The owner is expected to submit the structural analysis to demonstrate existing compliance within 2 years of receiving the order.
The owner is expected to submit a structural analysis to demonstrate a proposed structural alteration to meet seismic retrofit requirements within 2 years of receiving the order.
The owner is expected to submit the plans for demolition of the building within 2 years of receiving the order.
The owner is expected to obtain all necessary permits for rehabilitation or demolition within three and a half (3.5) years after the service of the order.
The owner is expected to complete construction or demolition work under all necessary permits within seven (7) years after service of the order.
Use VertPro® to find new customers, simplify the bidding process, and grow your business.
VertPro® is a SaaS platform for building owners & managers to comply with local building codes and get bids for capital improvements (e.g. HVAC, lighting, seismic retrofits, plumbing, etc.). We simply the bidding process by connecting our clients to qualified, pre-screened contractors who specialize in their project type(s). For contractors, we provide a marketplace that helps you win more projects and reduce your cost of customer acquisition. You never pay for leads, only for projects you win. VertPro® also provides a safe and secure project management platform for better communication and project updates. Apply to be a vendor today and start winning more projects!
VertPro®, a Marketplace for Contractors to Win More Projects
Schedule a consultation to learn about new LL87 Energy Audit & RCx projects in NYC you may be qualified to bid on:
NYC Local Law 87 (LL87) requires buildings over 50,000 sq.ft. submit an Energy Efficiency Report (EER) once every ten years. Building owners are required to submit their EER in the calendar year in which the last digit of the year coincides with the last digit of the building’s tax block number. The EER must contain:
Energy Audit Report
Retro-Commissioning (RCx) Report
Building owners face penalties of $3,000 for failing to comply the first year, and then $5,000 every year thereafter until the EER is submitted. The annual deadline is December 31st. Vert Energy Group advises all clients to get started at least 12 months in advance to ensure sufficient time to complete the RCx corrections. Vert Energy Group is seeking partnerships with qualified NYC engineers to offer services for LL87 Request for Proposals (RFPs) through our VertPro® marketplace. Learn more:
Use VertPro® to find new customers, simplify the bidding process, and grow your business.
VertPro® is a SaaS platform for building owners & managers to comply with local building codes and get bids for capital improvements (e.g. HVAC, lighting, seismic retrofits, plumbing, etc.). We simply the bidding process by connecting our clients to qualified, pre-screened contractors who specialize in their project type(s). For contractors, we provide a marketplace that helps you win more projects and reduce your cost of customer acquisition. You never pay for leads, only for projects you win. VertPro® also provides a safe and secure project management platform for better communication and project updates. Apply to be a vendor today and start winning more projects!
VertPro®, a Marketplace for Contractors to Win More Projects
Schedule a consultation with our Contractor Relations Manager to learn about new projects your company may be qualified to bid on:
Use VertPro® to find new customers, simplify the bidding process, and grow your business.
VertPro® is a SaaS platform for building owners & managers to comply with local building codes and get bids for capital improvements (e.g. HVAC, lighting, seismic retrofits, plumbing, etc.). We simply the bidding process by connecting our clients to qualified, pre-screened contractors who specialize in their project type(s). For contractors, we provide a marketplace that helps you win more projects and reduce your cost of customer acquisition. You never pay for leads, only for projects you win. VertPro® also provides a safe and secure project management platform for better communication and project updates. Apply to be a vendor today and start winning more projects!