New York City continues to lead the nation in building energy regulation as part of its broader climate and sustainability goals. For owners of large commercial and residential buildings, two laws are especially important: Local Law 87 (LL87) and Local Law 97 (LL97).

While these laws serve different purposes, they are closely connected. Understanding how they work together is essential for maintaining compliance, reducing operating costs, and avoiding costly fines.

Local Law 87, enacted under the Greener, Greater Buildings Plan, focuses on understanding and improving how buildings use energy.

The law applies to buildings over 50,000 square feet and requires owners to complete the following once every ten years:

• A professional energy audit analyzing how energy is consumed throughout the building
• Retro-commissioning, which verifies that existing building systems (HVAC, lighting, controls, electrical systems) are operating as intended
• Submission of an Energy Efficiency Report (EER) to the NYC Department of Buildings

The goal of LL87 is to identify inefficiencies, operational issues, and cost-effective improvements that can reduce overall energy consumption.

Failure to comply with LL87 can result in recurring financial penalties until the required report is filed.

Local Law 97, part of New York City’s Climate Mobilization Act, takes a different approach. Instead of focusing on audits and system reviews, LL97 sets annual carbon emission limits for buildings.

Key points of LL97 include:

• Applies to buildings over 25,000 square feet
• Establishes greenhouse gas emission caps based on building type and size
• Emissions limits become stricter starting in 2024 and again in 2030
• Buildings that exceed their allowed emissions face annual fines based on excess CO₂ output

LL97 is designed to drive long-term emissions reductions, targeting a 40% reduction by 2030 and 80% by 2050 compared to baseline levels.

Although LL87 and LL97 are separate laws, they are strategically aligned.

Local Law 87 provides the foundation for Local Law 97 compliance.

Here’s how they work together:

• LL87 identifies energy inefficiencies in electrical systems, lighting, HVAC equipment, and controls
• Audit findings help owners prioritize upgrades that reduce energy use and emissions
• Retro-commissioning ensures systems operate efficiently, often delivering immediate energy savings
• Implementing LL87 recommendations early can significantly reduce the risk of exceeding LL97 emissions caps

In short, LL87 is a process-driven law focused on assessment and optimization, while LL97 is a performance-driven law focused on measurable emissions outcomes.

Meeting LL87 and LL97 requirements is not just about avoiding fines—it can create real operational and financial benefits:

• Lower utility and operating costs
• Improved system reliability and tenant comfort
• Reduced risk of future compliance penalties
• Increased long-term property value
• Better planning for capital improvements and electrification

Buildings that delay action may face higher costs later as emission limits tighten and penalties increase.

To stay ahead of NYC energy regulations, building owners should consider the following steps:

1. Plan energy audits well before LL87 deadlines
2. Use audit results to create a phased upgrade strategy aligned with LL97 emissions limits
3. Upgrade inefficient lighting, electrical systems, and controls
4. Track energy use and emissions annually to avoid surprises
5. Work with experienced electrical and energy professionals who understand NYC code requirements

At Bulk Electric, we help building owners and property managers navigate NYC’s complex energy regulations. From supporting energy efficiency upgrades to improving electrical system performance, our team works with compliance in mind—helping you reduce risk, control costs, and prepare for the future.

If your building is subject to Local Law 87 or Local Law 97, proactive planning today can save significant time and money tomorrow.

Contact Bulk Electric to discuss how we ca n support your building’s energy compliance strategy.