What Is Local Law 97?
Local Law 97 is a critical component of New York City’s Climate Mobilization Act. Enacted in 2019, this legislation sets greenhouse gas (GHG) emissions limits for most buildings over 25,000 square feet. The law aims to reduce emissions from NYC’s largest source of pollution — buildings — by 40% by 2030 and 80% by 2050.
What’s New in 2025: Local Law 97 Extension Explained
In early 2025, NYC announced a Local Law 97 extension to address industry concerns and give building owners more time to prepare for compliance. This extension mainly impacts buildings facing hardship, those making good-faith efforts to comply, and properties pursuing long-term retrofits.
Key highlights of the Local Law 97 extension include:
- Compliance Grace Period: Penalties may be waived for buildings that exceed emissions limits from 2024 to 2029 if owners demonstrate documented progress and submit a decarbonization plan by 2026.
- Alternative Compliance Pathways: Expanded flexibility for affordable housing, hospitals, and religious institutions.
- Updated Emissions Limits Guidance: More clarity on how emissions are calculated and which building types qualify for relief.
Who Qualifies for the Local Law 97 Extension?
Not all buildings automatically qualify for the extension. Eligibility is generally reserved for:
- Properties that submit an approved Decarbonization Action Plan (DAP) by the deadline
- Buildings actively implementing energy efficiency retrofits
- Special categories such as NYCHA buildings, nonprofits, and certain mixed-use buildings
What Building Owners Need to Do Now
Even with the Local Law 97 extension, the clock is ticking. Here’s how to prepare:
- Benchmark Your Building: Review your building’s annual energy benchmarking data and emissions profile.
- Conduct an Energy Audit: Identify cost-effective upgrades like HVAC system improvements, LED retrofits, or insulation.
- Work With a Professional: Hire a qualified engineer or energy consultant to develop a compliant action plan.
- Submit Documentation Early: Extensions and penalty relief depend on timely filings and proof of good-faith efforts.
Why the Local Law 97 Extension Matters
The extension doesn’t eliminate the law’s requirements — it offers a path forward for buildings needing more time or resources to comply. It also reflects NYC’s willingness to balance ambitious climate goals with practical realities for owners and developers.
Need Help With Compliance?
Our certified engineering team specializes in Local Law 97 compliance, energy audits, and retrofit planning. Whether you’re preparing your Decarbonization Action Plan or just getting started, we can help you stay on track and avoid fines.
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FAQs About Local Law 97 Extension
Q: Does the extension apply to all buildings?
A: No, it mainly applies to properties that demonstrate progress and submit approved decarbonization plans.
Q: Will fines still apply in 2025 and beyond?
A: Yes — unless your building qualifies for a temporary grace period or exemption.
Q: Can I ignore Local Law 97 if I apply for an extension?
A: No. Extensions delay penalties but do not eliminate your obligation to reduce emissions.
