Local Law 97 is the centerpiece of NYC's Climate Mobilization Act. It sets annual greenhouse gas (GHG) emissions caps for most buildings over 25,000 square feet, with progressively stricter limits through 2050. Buildings that exceed their cap pay $268 per metric ton of CO₂ equivalent over the limit.
LL97 does not directly regulate small business tenants — it applies to building owners. However, landlords may pass compliance costs through leases, and tenants in large buildings should understand the law because it affects their building's energy decisions.
Each building is assigned an emissions intensity limit based on its occupancy type, measured in kilograms of CO₂e per square foot per year. The limits tighten in 2030 and again in 2035. Buildings with lower limits face higher compliance costs if they don't reduce energy use.
LL97 is a building owner obligation, not a direct tenant obligation. But tenants should be aware of it for several reasons:
- Green lease clauses: Landlords may add clauses requiring tenants to share energy data, restrict equipment, or contribute to compliance costs.
- Rent impact: Buildings facing large LL97 fines may pass costs to tenants through operating expense charges.
- Capital improvements: Landlords pursuing compliance may request access for HVAC upgrades, window replacements, or electrical work that disrupts your operation.
- LL88 submetering: If your space is over 5,000 sq ft, your landlord may be required to install a submeter to bill you based on actual usage.