NYC’s New Climate Mobilization Act

On April 22nd, 2019 Mayor DeBlasio signed into law the Climate Mobilization Act (CMA), affecting all buildings over 25,000 square feet throughout New York City. This is the City’s third significant piece of legislation designed to reduce Greenhouse Gas Emissions in New York City by 80% by the year 2050. The CMA follows “plaNYC2030” in 2011 which eliminated #6 oil and spurred the oil-to-gas conversions in NYC buildings, and the “oneNYCplan” in 2015, which introduced Local Law 84 (Benchmarking) and Local Law 87 (Energy Audits and Retro-commissioning), both designed to further incentivize buildings to reduce their energy consumption and carbon emissions.

The first year of enforcement is 2025, and will be based on each building’s energy usage in 2024, compared to a citywide baseline of 2005. Most buildings will require significant capital expenditures to become compliant with these new regulations. In an effort to help building boards and owners finance these upgrades, the New York City Energy Efficiency Corporation (NYCEEC) is creating a low interest, long-term funding program that will hopefully be available to all housing sectors.

It’s imperative that all buildings begin now—if they have not already—to learn about their current energy efficiency level and to plan and begin to implement a long-term strategy of compliance in order to avoid paying fines when the enforcement period begins in 2025. Every CMA Plan should begin by reviewing the building’s LL84 Benchmarking report, which will reveal its EnergyStar score and upcoming Letter Grade, which will be issued in 2020. By verifying the parameters used in the Benchmarking report, buildings can be sure that the score is accurate; scores take into account number of units, number of bedrooms, square footage and other facts about the building, so it’s important to be sure the City has the correct information. Each building’s Energy Audit and Retrocommissioning Report also includes a series of Energy Reduction Measures, with projected savings, estimated budget, and payback period. This is a key list of where to begin to reduce energy consumption and improve the building’s score.

We will keep all of our properties apprised of the ongoing developments of the Climate Mobilization Act. The goal of reducing emissions is a worthy one, but it will certainly take time, effort and significant investment. At DEPM, we will work continuously with our building boards and owners to help meet these requirements as they continue to evolve.

For more information on this legislation, visit this link:

Climate Mobilization Act

Multifamily Solar Array

It’s imperative that all buildings begin now—if they have not already—to learn about their current energy efficiency level and to plan and begin to implement a long-term strategy of compliance in order to avoid paying fines when the enforcement period begins in 2025.

 

Local Law 84 Requires “Benchmarking”

Local Law 84 is one of four Local Laws enacted as part of the City’s Greener, Greater Buildings Plan (GGBP), a “comprehensive, mandatory effort to reduce emissions from existing large buildings,” said Mayor Bloomberg in signing the legislative package in 2009. Studies have shown that approximately 75 percent of the City’s greenhouse emissions come from buildings. The City’s ultimate goal is to reduce emissions by 30 percent by 2030.

According to Peter Lampen, Vice President and Architect with Douglas Elliman Property Management (DEPM), “The City hopes that this data will enable building management and owners to better understand the performance of their buildings, and incentivize the undertaking of energy-saving improvements and upgrades.”

For co-ops and condos, the usage data should be collected and reported by their management company. Peter Lampen reports, “We have been through two annual cycles of Benchmarking under Local Law 84, and this May we will be filing to complete the third cycle, submitting each property’s energy and water usage data for 2012.”

This year, for the first time since the Law was enacted, this data will be made public, showing electricity, natural gas, fuel oil and water usage. With the ever-increasing cost of fuel and water, it is expected that co-op and condo buyers and investors will begin to use this data to compare properties. The City hopes that buildings with a higher energy use “score,” indicating better energy efficiency and lower carbon footprint, will become more attractive to buyers, encouraging less efficient properties to initiate energy upgrades, which could result in usage reductions of up to 40 percent.

“We will issue a simple report for each building,” explains Lampen, “listing the major data points as well as comparisons to the rest of the DEPM portfolio, and to a larger profile of multi-family residential buildings in the city.” This report will help managers and board members address shortcomings and plan ways to cut energy and water usage.

The Empire State Building is one of many properties in New York City that have greatly improved their energy efficiency through extensive upgrades of their insulation and mechanical systems. The City hopes that Local Laws 84 and 87 will encourage other buildings to do the same.

The Empire State Building is one of many properties in New York City that have greatly improved their energy efficiency through extensive upgrades of their insulation and mechanical systems. The City hopes that Local Laws 84 and 87 will encourage other buildings to do the same.