What is New York City's Carbon Emissions Bill?
The New York City Council is focused on green, and that doesn't mean money. On May 18th, 2019, they passed into law what is called the "Green New Deal", which is a number of initiatives that aim to steer New York City into a more environmentally friendly direction. Not surprisingly, this deal will impact commercial real estate building owners, the details of which can be found in Intro 1253.
Intro 1253 is a complicated law that limits carbon emissions for typical buildings over 25,000 square feet. It also includes alternatives for certain buildings to be compliant if they meet certain criteria. The goal is to reduce emissions from buildings by 40% by the year 2030, using 2005 emissions level as the baseline. It is considered the most aggressive and ground-breaking plan to deal with the problem of emission from existing buildings in the world.
The Bill & Its Purpose
Intro 1253 was passed into Local Law 97, which includes compliance time periods, 2024-2029 and 2030-2034. There will be adjustments as time goes on to clarify requirements for compliance and for the periods after 2035 to 2050. Essentially, any building over 25,000 square feet is required to adhere to whole-building carbon intensity limits based on the type of building. If the building type is hospital, house of worship, affordable housing, or owned by the city, it may qualify for alternative compliance options that may be more lenient than regular limits.
Why this is important to you: Building owners must submit an emissions intensity report that is stamped by a Registered Design Professional annually from 2025 and thereafter.
Who Does It Affect?
This affects business owners as they will first need to do an appraisal of what their level of their emissions are, then consult with specialists to compile a list of the changes they will need to make to be compliant on time. Once the building owners understand what to change, they will also need to hire developers to execute the proposed changes and then audit their building again to make sure the changes were effective in making them compliant. This also affects the tenants of commercial property, depending on what party is responsible for energy usage, as defined by the lease of the building with its tenants.
Why Is It Important?
It's important for the environment for the biggest emitters of carbon to do their part to help the environment. In addition, with the passing of Intro 1253, commercial businesses could suffer and lose profit significantly if the owner does not comply. There are expensive consequences for those who do not comply or are late to comply.
The fine is $268 per metric ton that carbon emissions exceed the new legal limit, per annum. For those that fail to submit a report at all or those that falsify one, there are additional fines. Owners do well to get a head start, especially if they are not prepared to meet 2024 regulations. In the coming months, the City will issue additional rules to clarify its goal and intent. While the finalized rules will be issued in 2023, if the building management waits till then to get started on making changes, they run the risk of not meeting the limits by 2024.
To read the full Carbon Emissions Bill, click here!
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