Mayor Adams wants to soften enforcement of climate law that aims to reduce building emissions

New York City Mayor Eric Adams announced a new plan, Getting 97 Done, on Tuesday to mobilize building owners who need to comply with Local Law 97 — a measure intended to reduce carbon emissions from buildings that will take effect early next year.

But environmental experts say the new plan will weaken the law’s enforcement powers by giving qualified building owners an extra three years to meet carbon reduction deadlines.

Local Law 97, which passed in 2019, calls for most buildings over 25,000 square feet to meet new energy efficiency and greenhouse gas emissions limits by 2024 before stricter limits go into effect in 2030. The Getting 97 Done plan states that buildings account for 70% of NYC’s carbon emissions, and approximately 50,000 buildings would be affected. But owners are reportedly fretting over the looming arrival of the standards, and environmental advocates have raised concerns that the Adams administration is slow-rolling their implementation.

The loosened enforcement deadlines are one of the plan’s four main points, which includes educating the public on what funding is available through city, state, federal and utility entities; hosting workshops and providing better technical support to navigate the law; and collaborating with Con Edison to decarbonize parts of its energy system potentially through the use of biogas produced from the city’s sewage and food waste.

"The mobilization plan and DOB's rulemaking guidance provide the roadmap and the tools to invest in building improvements, cut emissions, and clean our neighborhoods' air,” wrote Meera Joshi, the deputy mayor for operations, in a press release.

The mayor’s office did not respond to questions on the weakened enforcement.

What’s happening with enforcement?

The Department of Buildings shared details of the enforcement actions in a rule proposal, which was also released on Tuesday.

Under the rule, building owners may be eligible for reduced compliance fines for 2024 deadlines. The Getting 97 Done plan states the easing of enforcement is meant to allow building owners to use their financial resources toward compliance instead of paying out fines.

To be eligible for fine mitigation, owners must show so-called "good-faith efforts" toward decarbonization, and to delay their 2024 carbon targets, owners will have to demonstrate they can achieve goals by 2027. They also must be able to meet the 2030 goals on deadline.

Some local advocacy groups are concerned that softening enforcement and deadlines for 2024 compliance goals will gut the law and give owners a pass on getting compliant on the mandated timelines.

“If his proposed rules are adopted, New Yorkers could lose tens of thousands of jobs, air pollution could increase by millions of tons per year, and energy bills could get even higher because landlords will be allowed to avoid upgrading their dirty, polluting buildings to high energy efficiency,” a coalition of local environmental groups including Food & Water Watch, New York Communities for Change, NYPIRG and TREEage, wrote via an emailed statement.

The coalition is calling on Adams to scrap the Getting 97 Done plan and fully implement and enforce the original law. Its members fear that relaxing the rules will allow the biggest polluters to continue pumping carbon into the air with impunity, while delaying the costs of compliance.

Another concern is that the mayor’s plan does not limit Renewable Energy Credits, or RECs, which could allow building owners to buy their way out of compliance by paying others to reduce emissions. While RECs are used toward subsidizing renewable energy, the credits also legally permit owners to continue polluting without making strides towards reduction.

“This is bad,” said Pete Sikora, climate and inequality campaigns director at New York Communities for Change. “These rules, if adopted, would severely weaken the law.”

The proposal is subject to a 30-day public comment period, as part of the city’s standard rulemaking process. The Department of Buildings will hold a public hearing on the proposed rule online at 11:00 a.m. on Oct. 24, and New Yorkers can also submit comments via email. If approved, the finalized rules will go into effect Jan. 1, 2024 as law.

Affording upgrades

Funding and financing for Local Law 97 retrofits are available through several official sources, including city tax programs and state-backed incentives from the Public Service Commission. The mayor’s proposal states that navigating this web of options can be challenging for building owners. Getting 97 Done aims to identify all those options for owners, so they can more readily take advantage of them and make those upgrades.

One of the larger pots of money available for these upgrades is the federal Inflation Reduction Act. According to the mayor’s office, $625 million in tax credits and subsidies are available through this program.

“New Efficiency: New York” is another financial support mechanism for building owners. Through this program, New York State Energy Research and Development Authority and utility companies will propose $5 billion in statewide support to assist struggling buildings, especially in disadvantaged communities, to comply with Local Law 97, starting in 2025. Con Edison and National Grid are among the program's participants.

“Complying with Local Law 97 will require serious effort, and we can get it done in partnership with the state, utilities, building owners and more,” said Rohit T. Aggarwala, the city's chief climate officer, in the press release.

The Adams administration also hopes to create a J-51 housing incentive program, which helps low- and moderate-income multifamily dwellings cover the costs of compliance through tax breaks. State legislators passed a renewed J-51 tax abatement this spring, and it is awaiting approval from Gov. Kathy Hochul. After signage, an NYC version of the program would still need City Council approval.