Local Law 97: what NYC building owners need to know about the emissions limits.
NYC's largest buildings now have a carbon cap, a yearly report and a per-ton penalty. Here is who is covered, the deadlines, and what it costs to miss them.
Local Law 97 caps greenhouse gas emissions for NYC buildings over 25,000 gross square feet. Owners file a certified emissions report by May 1 each year, and pay $268 for every metric ton over their limit.
- →Limits started in 2024 and get stricter in 2030.
- →Missing the report costs $0.50 per square foot, per month.
- →Reports must be certified by a registered design professional.
Most New York owners think about their building in three numbers.
Rent roll.
Expenses.
Vacancy.
Local Law 97 adds a fourth. How much carbon the building puts out.
It is the city’s emissions law for large buildings, passed in 2019 as part of the Climate Mobilization Act. The first limits took effect in 2024. Here is what it means, as of October 17, 2026.
Which buildings are covered?
Size decides it. A building is covered if it is:
- Over 25,000 gross square feet. On its own.
- Part of a lot over 50,000. Two or more buildings on the same tax lot that together exceed 50,000 gross square feet.
- Part of a condo group over 50,000. Two or more condo buildings governed by the same board of managers that together exceed 50,000 gross square feet.
The city builds a Covered Buildings List every year from Department of Finance records. If you disagree with your building’s size on that list, the Department of Buildings checks it with Finance.
Does every covered building follow the same rules?
No. There are two main tracks.
- Article 320. Annual emissions limits. This covers most private buildings, about 30,000 of them, according to the Department of Buildings.
- Article 321. A one-time compliance path for affordable housing and houses of worship, about 11,500 buildings.
Some buildings got more time. Buildings with some rent regulated units (under 35%) file their first report in May 2027. Certain income-restricted buildings file their first report in 2036.
What are the compliance periods?
The limits tighten over time.
- 2024 to 2029. The first compliance period.
- 2030 to 2034. The second, with stricter limits.
- 2035 to 2039. The third.
- 2040 to 2049. The fourth.
The goal is net zero by 2050.
When is the report due?
May 1, every year, for the prior calendar year. The first reports were due May 1, 2025.
The report has to be certified by a registered design professional and filed through the city’s online reporting portal.
There is a cushion. The Department of Buildings does not issue late penalties if the report comes in within 60 days of May 1. It can also grant extensions.
What are the penalties?
This is the part every owner should run the numbers on.
- Over the limit. $268 for every metric ton of CO2 equivalent above the building’s annual limit.
- No report. The building’s gross floor area times $0.50, for each month the report is not filed.
- False statements. A separate violation under the law.
The city’s own examples make it real.
A 25,000 square foot building that does not file: 25,000 x $0.50 = $12,500 a month.
A building that emitted 1,371.53 tons against a limit of 1,148.68: 222.85 tons over x $268 = $59,723.80 for the year.
Is there any relief?
For the first period (2024 to 2029), an owner over the limit may qualify for a reduced penalty. The city points to two main reasons: an unexpected event like a fire, flood or hurricane, or documented good-faith efforts, like a decarbonization plan and work underway.
There is also a mediated resolution, a formal agreement with the Department of Buildings where a penalty can be waived in whole or in part, as long as the owner sticks to the terms. Break the agreement, and back penalties can come due.
Here is how I see it
- Know if you are on the list. Check the Covered Buildings List before you assume you are not.
- Hire the professional early. The report needs a registered design professional’s sign-off. Do not start in April.
- Price the tons. Every ton over is $268, every year. Put it in the budget next to taxes and insurance.
- Plan for 2030. The limits get stricter. The work you do now is cheaper than the penalties later.
The limits got real in 2024.
They get tighter in 2030.
The owners who plan for it now will spend less than the ones who wait.
“The carbon cap is a building's new operating cost.”
Frequently asked questions
Which buildings does Local Law 97 cover?
A building over 25,000 gross square feet, two or more buildings on the same tax lot that together exceed 50,000 gross square feet, or two or more condo buildings under the same board of managers that together exceed 50,000 gross square feet.
When is the Local Law 97 report due?
May 1 of each year, for the prior calendar year. The Department of Buildings does not issue late penalties if the report is filed within 60 days of May 1, and it may grant extensions.
What is the Local Law 97 penalty?
$268 for each metric ton of CO2 equivalent over the building's annual limit. Failing to file costs the building's gross floor area times $0.50, for each month the report is missing.
How do I know if my building is covered?
The city publishes a Covered Buildings List each year, built from Department of Finance records. If you think your building's size is wrong, the Department of Buildings confirms it with Finance.
Einhorn, Gabe. “Local Law 97: what NYC building owners need to know about the emissions limits.” Nessoo Report, Nessoo (nessoo.com), Oct 17, 2026.
Co-founder of Nessoo, the verify-first rental marketplace in New York. He writes every Nessoo Report. nessoo.com
Sources
- NYC Department of Buildings, LL97 Greenhouse Gas Emissions Reductions (covered buildings, May 1 reports, design professional certification, Articles 320 and 321, BEAM portal)
- NYC Department of Buildings, "DOB's Enforcement of Article 320 of LL97," February 2026 (compliance periods, $268 per ton, $0.50 per sq ft per month, 60-day grace, mitigation, building counts)
- NYC Administrative Code 28-320.1, 28-320.3, 28-320.6 and 1 RCNY 103-14 (as cited by DOB)