Going Green: NYC’s Building Energy Efficiency Label Law
Building owners in New York City are now required to post an energy efficiency grade at the entrance of their buildings. The A-to-F grades look similar to the health and sanitation grades posted in city restaurants. The Energy Efficiency Label law requires owners of buildings 25,000 square feet or larger to post the grades. The label law affects more than 40,000 buildings now required to post labels which rank each building’s energy efficiency based on energy and water use.
In 2019, New York passed the Climate Mobilization Act, a package of laws that some call New York's Green New Deal. Local laws 95 and 97 target greenhouse gas emissions from buildings and aim to move the city closer to its 80×50 goal to reduce greenhouse gas emissions by 80 percent by 2050. New York's buildings account for 71 percent of the city’s emissions. Proponents argue the laws promote energy conservation in the buildings, and trigger investments in green upgrades.
Building Grades
Building grades are determined by the U.S. Environmental Protection Agency’s online benchmarking tool that compares the energy performance of similar buildings in similar climates. Building Owners use the EPA benchmarking tool to create an energy efficiency report submitted to the city each year. Building owners can access aggregated energy use data for their properties from Con Edison and National Grid. The Department of Environmental Protection manages New York’s water supply and wastewater treatment and provides water usage data to properties that have an automatic meter reader. Help with benchmarking reports is available at the NYC Sustainability Help Center at https://www1.nyc.gov/assets/buildings/pdf/ll33_compliance_steps.pdf
After data is submitted, owners access an annual benchmarking report through the Energy Star Portfolio Manager and submit it to the city. Energy Efficiency grades are generated based on benchmark reports which are aligned with federal energy efficiency standards. Energy Efficiency rating labels are available for building owners to print out in the Department of Buildings’ NOW Public Portal on October 1 of each year. Building owners who fail to post energy grades are subject to a $1,250 fine. There are no fines for low grades, but hefty fees will be assessed starting in 2024.
Detailed instructions on benchmarking are available at https://www1.nyc.gov/assets/buildings/pdf/ll33_compliance_steps.pdf
Results and Reactions
The new labels are up, and according to news reports, more than half of the buildings have posted a grade of D or less. Only buildings that failed to comply with the new regulations received an F.
Building owners have pushed back against the label law and energy efficiency goals which they say are unrealistic and unaffordable. They worry the labels will cause vacancies and financial losses by driving tenants away from buildings. They also fear the public will conclude a building with a low energy grade in the doorway is unsafe . And unlike restaurant grades, which can be improved quickly with follow up Health Department Inspections, Energy Efficiency grades are issued once a year.
And there’s the cost of green upgrades which has been estimated to run around $4 billion. The Climate Mobilization Act included a low-interest energy loan program to help building owners pay for improvements which proponents say should result in a net gain after factoring in savings from energy efficiencies.
Still, Governor Andrew Cuomo’s latest budget proposal includes a provision to allow building owners to buy renewable energy credits from wind and solar plants in upstate New York as an alternative to penalties, fees and actual upgrades. Opponents to Cuomo’s proposed energy credits say the energy efficiency laws and goals will create thousands of jobs in renovation and construction and compel upgrades that will make the city air cleaner and boost public health. But supporters of the credits argue they will provide investment in the state’s green power production and give building owners an option to comply with energy efficiency goals until solar and wind energy are available for delivery to the city.
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