NYC Local Law 97 Fines in 2026: What a 25,000 Sq Ft Building Owes
A worked Local Law 97 example for a 25,000 sq ft NYC apartment building: the emissions caps, the $268-per-ton fine and the late-filing penalty.
By Seayora Editorial Team · Published · Facts checked · 3 min read
Short answer: Under Local Law 97, a 25,000 square foot apartment building in New York City has an emissions cap of 168.75 metric tons of CO2e a year through 2029, falling to about 83.67 tons from 2030. Every ton over the cap costs $268. A typical gas-heated walk-up of that size emits about 140 tons a year: no fine today, and about $15,000 a year from 2030 unless it cuts emissions.
Key takeaways
- Most NYC buildings over 25,000 gross square feet are covered.
- The multifamily cap roughly halves in 2030.
- Each ton over the cap costs $268 a year; a missing report costs $0.50 per square foot per month.
- Buildings more than 35% rent-regulated follow a list of required measures instead of a cap through 2034.
Which buildings does Local Law 97 cover?
Local Law 97 of 2019 covers most New York City buildings over 25,000 gross square feet, and two or more buildings on one tax lot that together exceed 50,000 square feet. Buildings where more than 35% of the apartments are rent-regulated follow Article 321 instead: a defined list of energy measures rather than an emissions cap through 2034. The Department of Buildings’ Local Law 97 page is the authority on coverage.
How is a building’s emissions cap calculated?
The cap is the building’s floor area multiplied by a limit for each occupancy group. For multifamily housing (Group R-2) the limit is 0.00675 metric tons of CO2e per square foot per year from 2024 through 2029, and 0.00334664 from 2030 through 2034. A mixed-use building adds up a cap for each use.
| Compliance period | Limit per sq ft | Cap for 25,000 sq ft |
|---|---|---|
| 2024–2029 | 0.00675 tCO2e | 168.75 tCO2e |
| 2030–2034 | 0.00334664 tCO2e | 83.67 tCO2e |
How are a building’s emissions calculated?
Each fuel the building uses in a year is multiplied by a coefficient in the law: 0.000288962 tons per kWh of grid electricity and 0.00005311 tons per kBtu of natural gas, for example. Electricity is counted in kWh and every other fuel in kBtu; mixing the two up is the most common error in a home-made estimate, and it overstates emissions about 3.4 times.
What does a 25,000 sq ft walk-up actually owe?
Take a gas-heated building of 25,000 square feet that used 16,000 therms of natural gas (1,600,000 kBtu) and 190,000 kWh of electricity in a year.
| Fuel | Used in a year | Emissions |
|---|---|---|
| Natural gas | 1,600,000 kBtu | 84.98 tCO2e |
| Grid electricity | 190,000 kWh | 54.90 tCO2e |
| Total | 139.88 tCO2e |
| 2026 (2024–2029 cap) | 2030 (2030–2034 cap) | |
|---|---|---|
| Cap | 168.75 tCO2e | 83.67 tCO2e |
| Over the cap | None (28.87 tons under) | 56.21 tCO2e |
| Annual fine | $0 | $15,065 |
Heated with No. 2 oil instead (2,400,000 kBtu), the same building emits about 233 tons: $17,221 a year now and $40,023 a year from 2030. These figures hold today’s coefficients constant; the electricity coefficient for 2030 has not been set, and a cleaner grid would lower the electric share.
What other penalties apply?
- Not filing the annual emissions report: $0.50 per gross square foot for each month it is outstanding, or $12,500 a month for a 25,000 square foot building.
- A knowingly false statement in a report: up to $500,000.
- Each year’s report is due May 1 of the following year. The Department of Buildings has offered filing extensions, so check its site for the current deadline.
How do owners cut emissions before 2030?
- Tune the heating plant first: repair steam traps and leaks, insulate pipes, and add controls and thermostatic radiator valves.
- Electrify heat and hot water with heat pumps. Equipment that is energized can also earn a beneficial electrification credit; planned equipment earns nothing until it runs.
- Upgrade lighting, motors and ventilation fans.
- Buy renewable energy credits only from generation delivered into New York City (NYISO Zone J); credits from elsewhere do not count.
Benchmarking data reaches the city through ENERGY STAR Portfolio Manager, and owners on Seayora can connect Portfolio Manager and track each building’s position beside its violations and filings with NYC compliance.
Frequently asked questions
Does Local Law 97 apply to my building?
It applies to most NYC buildings over 25,000 gross square feet and to groups of buildings on one tax lot over 50,000 square feet. The Department of Buildings publishes the covered buildings list each year.
Is the $268 fine charged once or every year?
Every year. It is assessed on the tons a building is over its cap in each reporting year, so an unchanged building over the 2030 cap owes again each year.
What if more than 35% of my apartments are rent-stabilized?
The building generally follows Article 321: it must complete a defined list of energy measures instead of meeting an emissions cap through 2034. Confirm your building’s pathway with the Department of Buildings.
Sources
- Local Law 97: Greenhouse Gas Emissions Reductions, NYC Department of Buildings
- 1 RCNY § 103-14, Building Emissions Limits, NYC Department of Buildings
How Seayora helps
The free Local Law 97 penalty calculator: Enter an NYC address and see the building’s cap, how far over it is and what it owes.
This article is general information, not legal or engineering advice. Local Law 97 is amended by local law and by Department of Buildings rule, so confirm a building’s obligations with the Department of Buildings or a registered design professional before you file.
How we write and check these guides: editorial standards.
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