New York City Adopts Laws to Increase Energy Efficiency

Tom Walsh

Posted by Tom Walsh

New York City recently enacted several progressive laws to improve buildings’ energy efficiency. These new requirements are in keeping with the City’s commitment to combat climate change. In June 2017, Mayor de Blasio issued the Climate Action Executive Order stating that New York City would adopt the goals of the Paris Climate Agreement and directing city agencies to develop plans for reducing greenhouse gas ((GHG) emissions. According to the Inventory of New York City Greenhouse Gas Emissions, buildings are responsible for 67 percent of the City’s GHG emissions, and therefore, it is critical to adopt measures to increase their energy efficiency.

pedestrians_crossing_NYC_street_by_arthur-osipyanPhoto by Arthur Osipyan

More Stringent Energy Code

Local Law No. 32, adopted January 8, 2018, requires the Commissioner of the Department of Buildings (DOB) to amend the New York City Energy Conservation Code (Energy Code) in 2019 and 2022 to bring the Energy Code up to date with the most recent version of the New York State Energy Research and Development Authority’s (NYSERDA) model stretch energy code in effect at the time the proposed amendments are submitted (unless the model code was published more than three years before).

NYSERDA developed the NYStretch Code-Energy for 2015 to be voluntarily adopted by local governments. It is projected to achieve greater energy reductions than those mandated by the New York State Energy Conservation Construction Code.

Currently, NYSERDA is working on the NYStretch Code-Energy 2018 that is estimated to be approximately 25 percent more efficient than the International Energy Conservation Code 2018’s residential provisions and 18 percent more efficient than the ASHRAE 90.1-2106’s commercial provisions. The public comment period on the draft of the 2018 model code closed on April 3, 2018.

For amendments to the Energy Code due in 2025 and after, DOB must prepare a report “recommending predicted energy use targets” for new or substantially reconstructed buildings that are more than 25,000 square feet.

Energy Grades

Another law enacted on January 8, 2018, Local Law 33, builds upon the City’s energy benchmarking program. It mandates that a building receive an energy efficiency letter grade based upon the building’s energy benchmarking score generated by the United States Environmental Protection Agency’s ENERGY STAR Portfolio Manager® (Portfolio Manager). The letter grades are assigned based on the Portfolio Manager score as follows:

  • A = 90 or more;
  • B = 50 - 89;
  • C = 20 - 49;
  • D = 0 - 19;
  • F = building has not complied with the benchmarking requirements; and
  • N = building for which obtaining a score is infeasible or falls under one of the program exceptions.

Beginning in 2020, DOB will assign a grade to each building, and the building owner must post the grade and energy efficiency score “in a conspicuous location” near each building entrance within 30 days of receiving the energy efficiency grade.

DOB will also publish the energy efficiency scores and grades online and will annually audit a sample group of buildings’ submitted energy efficiency data.

Chicago adopted similar energy benchmarking disclosure requirements in November 2017. Rather than letter grades, Chicago uses a star rating system based on a building’s Portfolio Manager score. A placard with the assigned number of stars must be posted so it is visible to those entering the building. Also, the ratings must be shared with a prospective tenant or buyer as well as stated in any advertisements for a building lease or sale.

Creation of Energy Plan

A new law requiring the City to adopt a long-term energy plan, Local Law 248, was enacted in December 2017. The energy plan should include: a review of the current supply; a summary of current and projected energy demand; identification of the government entities that regulate the energy supply; an estimate of the City’s renewable energy sources, energy efficiency measures, and distributed generation; and recommendations for developing “additional renewable energy sources and energy efficiency measures.”

The law also requires the creation of an advisory subcommittee to consult with New York City Sustainable Advisory Board regarding the adequacy of the City’s energy supply and a long-term energy plan.

Additional Laws

The City enacted a few other important laws around the new year that promote the use of renewable energy as well as greater energy efficiency. This includes the establishment of an Office of Alternative Energy within DOB to streamline alternative energy projects. Annual reports are now required on the electricity and fossil fuel usage of city buildings as well as the installation of equipment to conduct real-time energy use monitoring of city buildings.

Learn About Our New York Office

Why is New York City focusing so much on building energy efficiency?
Buildings are responsible for 67 percent of the city's greenhouse gas emissions, making them the single biggest piece of the climate puzzle. Following Mayor de Blasio's 2017 Climate Action Executive Order committing NYC to the Paris Climate Agreement goals, the city rolled out several laws specifically targeting building energy performance.
What does Local Law 32 require for New York's Energy Code?
Local Law 32 requires the Department of Buildings to update the city's Energy Conservation Code in 2019 and 2022, aligning it with New York State's model stretch energy code. For larger buildings over 25,000 square feet, DOB also has to prepare reports recommending energy use targets starting with amendments due in 2025.
What are NYC's building energy grades and how do they work?
Under Local Law 33, buildings get a letter grade - A through F - based on their ENERGY STAR Portfolio Manager score, similar to a restaurant health inspection grade. Starting in 2020, building owners have to post their grade near the entrance within 30 days of receiving it, and the city publishes all scores online.
How does Chicago's energy benchmarking system compare to New York's?
Chicago took a similar approach in November 2017, but instead of letter grades, it uses a star rating system based on the same Portfolio Manager score. Chicago also requires that ratings be shared with prospective tenants or buyers and included in lease or sale advertisements, not just posted at the entrance.
What is NYC's Local Law 248 and what does it require?
Local Law 248, enacted in December 2017, requires the city to create a long-term energy plan covering current and projected energy demand, renewable energy sources, and recommendations for future efficiency measures. It also establishes an advisory subcommittee to work with the NYC Sustainable Advisory Board on evaluating the city's energy supply.
OTHER BLOGS

Recent Posts


Connect With Us

Simply Getting it Done

Contact Us