NYC Local Law 97 & 88: How Real‑Time Data Ensures Compliance

New York City is leading the charge in cutting building emissions and energy waste, with landmark regulations that put sustainability and accountability front and center. Local Law 97 (LL97) and Local Law 88 (LL88) are two pivotal laws every NYC building owner and property manager in commercial real estate must understand. These laws set strict requirements – from carbon emissions caps to lighting upgrades and sub-metering – with deadlines fast approaching and significant penalties for non-compliance. In this post, we’ll break down the key requirements, timelines, and implications of LL97 and LL88, explain who is affected and what data you need to collect, and show how real-time monitoring by Rhino can make compliance a breeze.

Understanding Local Law 97: Carbon Emissions Caps for Large Buildings

Local Law 97 of 2019 is NYC’s ambitious climate law targeting greenhouse gas emissions from buildings, which account for over two-thirds of the city’s GHG emissions. LL97 applies to most buildings over 25,000 square feet, including commercial buildings and large residential co-ops/condos. Under this law, covered buildings must meet new annual carbon emissions limits starting in 2024, with even stricter limits coming in 2030, all aimed at a 40% citywide emissions reduction by 2030 and net-zero by 2050. In practical terms, the law assigns a maximum tons of CO₂-equivalent emissions per square foot for each property type (there are 60 building categories), and these caps tighten over time.

Compliance Timeline: The first compliance period is 2024-2029, meaning a building’s 2024 emissions must fall under the cap or the owner faces penalties. The initial compliance report is due by May 1, 2025, covering the 2024 calendar year’s emissions. Building owners must file a report each year by May 1 thereafter, documenting the previous year’s energy usage and resulting GHG emissions, certified by a Registered Design Professional (PE or RA). The city provides a 60-day grace period (filing by June 30 each year without fines) and even allows an extension to December 31, 2025 for the first year if requested by August 29, 2025. However, missing the deadlines can trigger stiff fines of $0.50 per square foot per month for late filing.

Penalties and Implications: The bite behind LL97 is significant. Buildings that exceed their annual carbon limit will incur an annual fine of $268 per metric ton of CO₂e above the allowed limit. To put that into perspective, even a relatively small overage in emissions can cost tens or hundreds of thousands of dollars in fines. Failure to file the report at all carries its own penalty of $0.50 per sq ft per month, which adds up quickly for large properties. Moreover, knowingly falsifying a report could lead to penalties up to $500,000. Who is responsible? Ultimately, building owners (including boards of condo and coop buildings) are on the hook for compliance, though they will likely work closely with property managers, facility engineers, and sustainability consultants. The law does offer alternative compliance paths for certain special cases: for example, buildings with over 35% rent-regulated units or houses of worship can follow a prescriptive checklist of energy conservation measures instead of meeting numeric caps. Most properties, however, must either reduce emissions or pay up. This means investing in energy efficiency, upgrading equipment (e.g., HVAC, boilers, insulation), switching to cleaner energy, or purchasing renewable energy credits – all strategies encouraged by the city to help buildings hit their targets.

Data Needed for LL97 Compliance: To comply with LL97, owners need a detailed accounting of their building’s energy consumption by fuel type (electricity, natural gas, fuel oil, steam, etc.) for each calendar year. Emissions are calculated from energy use, using specific “carbon coefficients” for each energy type. Practically, this means buildings must collect utility usage data (often through Energy Star Portfolio Manager benchmarking) and ensure it is accurate and up-to-date. Many owners have already been benchmarking under Local Law 84, but LL97 raises the stakes – now that data isn’t just for transparency, it determines compliance and fines. Real-time or monthly tracking of energy use is extremely valuable: it allows building teams to know if they are on pace to exceed their carbon cap long before the annual report is due. In fact, city analysis found that while ~89% of buildings are on track for the 2024 limits, a much larger share (around 63%) are projected to exceed their stricter 2030 limits. This implies that significant upgrades will be needed in the coming years – and continuous monitoring will be key to managing and reducing emissions proactively.

Understanding Local Law 88: Lighting Upgrades and Sub-Metering

Upgrading lighting to energy-efficient standards is a core requirement of Local Law 88, reflecting NYC’s push to reduce building energy consumption.

While LL97 focuses on emissions, Local Law 88 of 2009 (LL88) zeroes in on energy efficiency measures inside buildings – specifically, lighting systems and electrical metering. LL88 was part of the earlier “Greener, Greater Buildings Plan” and was later amended by Local Laws 132 and 134 of 2016 to cover more buildings. Today, LL88 applies to buildings over 25,000 square feet (the same size threshold as LL97 for single buildings) as well as to campus-style properties with multiple buildings on a lot or condo complex totaling over 100,000 square feet. This means many mid-size and large commercial buildings, and even large residential buildings’ common areas, fall under LL88’s scope. There are a few exemptions (for example, 1-3 family homes and low-rise garden apartment complexes are not covered), but if your property has to benchmark energy usage, it likely has to comply with LL88 as well.

Key Requirements and Deadlines: LL88 has two main mandates: lighting upgrades and electrical sub-metering. All lighting systems in covered buildings must be brought up to the standards of the current NYC Energy Conservation Code (NYCECC). In practice, this means older, inefficient lighting (such as old fluorescent or incandescent fixtures) must be replaced or retrofitted with more efficient lighting (like LEDs) and appropriate controls (timers, occupancy sensors, daylight controls) so that the entire building meets modern efficiency code levels. (Notably, if a lighting system was already upgraded to code after July 1, 2010, it may be exempt from further change as it’s presumably already efficient.)

The second part is sub-metering: on and after January 1, 2025, every covered tenant space over 5,000 sq ft must be individually metered with an electric sub-meter, and the tenant must receive monthly energy usage statements. In simple terms, large non-residential tenants can no longer be charged a flat pro-rata share of the electric bill – they need to be billed (or at least informed) based on what they actually consume. A “covered tenant space” is defined as either an individual commercial unit over 5,000 sq ft or an entire floor over 5,000 sq ft if that floor has multiple smaller tenants. For example, a big retail store or office tenant would need its own sub-meter, and even a floor with several offices should be sub-metered at the floor level if the whole floor is 5,000+ sq ft. Residential units themselves are exempt from sub-metering under LL88, so this is mainly a requirement for commercial areas of buildings.

Compliance Reporting: Merely doing the upgrades and installations isn’t the end – owners must submit a compliance report to the NYC Department of Buildings by May 1, 2025, to officially certify that they have met LL88’s requirements. (This roughly lines up with the LL97 reporting schedule; in fact, the DOB has integrated LL88 reporting into the same new BEAM portal used for LL97.) The LL88 report includes an attestation by a registered design professional or licensed electrician confirming that the lighting upgrades have been completed and all required sub-meters are installed. The report must also provide a list of all the covered tenant spaces in the building and a sample monthly energy statement for each sub-metered space, demonstrating what information is being provided to tenants. There is a $115 filing fee for the LL88 report, although if a building is also filing an LL97 emissions report, no additional fee is required for LL88 – it’s combined. Similar to LL97, if you only have an LL88 obligation (and not LL97), you still get a grace period until June 30, 2025, to file without penalty, but no extensions beyond that date (whereas LL97 filers could request an extension to December).

Penalties for Non-Compliance: Failing to comply with LL88 brings its own fines that can mount annually. According to the DOB’s rules, failure to file the required lighting upgrade report by the deadline will result in a fine of $1,500 per year until you submit the report. Likewise, failure to file the sub-metering report is $1,500 per year as well. If you do file the report but haven’t actually finished all required sub-meter installations, there’s an additional fine: $500 per year for each large tenant space that isn’t sub-metered. These fines are cumulative, so a building that ignores LL88 could easily see several thousand dollars in penalties every year – not to mention wasted energy costs from outdated lighting. Beyond direct fines, non-compliance could have other implications: it may impact your building’s sale or refinance value, insurance liabilities, and certainly its Energy Star scores and ESG ratings. In short, failing to comply is a lose-lose: you pay more in fines and energy bills, while your building performs worse.

Who Needs to Act on LL88? The responsibility lies with building owners (or boards, in the case of condos/co-ops) and their property managers to plan and execute the required upgrades. In many cases, that means hiring lighting engineers and electrical contractors to do an initial lighting audit (to see what needs upgrading) and to design new lighting systems. It also means surveying tenant spaces to determine where sub-meters are needed and scheduling qualified electricians to install them. Coordination with tenants is crucial – especially if power needs to be shut down for meter installs, or to educate commercial tenants that they’ll start receiving usage statements. Early engagement can also turn LL88 into a positive, by encouraging tenants to adopt energy-saving practices once they see their own usage. The good news is that many lighting retrofits pay for themselves through energy savings, often relatively quickly. LL88 essentially forces the hand of owners who may have deferred these upgrades. By January 2025, owners should have completed all lighting retrofits and meter installations, so that the required sign-offs and documentation can be obtained for the May 1 report.

The Critical Role of Data Collection and Monitoring

Both Local Law 97 and Local Law 88 hinge on one thing: accurate, ongoing data about your building’s energy usage. Compliance isn’t a one-time effort – it’s continuous. Here’s why data is so critical:

• Tracking Emissions (LL97): You can only manage what you measure. Building carbon emissions under LL97 are directly calculated from how much electricity, gas, steam, etc., you use over the year. Having precise data on those usages is essential. Most buildings use Portfolio Manager for annual benchmarking data submission, but annual aggregate data might not be enough to avoid fines. Real-time or monthly data can alert owners if, for example, a harsh summer or an inefficient piece of equipment is driving up energy use, potentially putting the building over its carbon cap. Rather than discovering this in March 2025 when preparing the report, building managers can course-correct in real time (adjust HVAC settings, reduce lighting usage at night, etc.) to try to stay within limits. Additionally, if you plan to use strategies like Renewable Energy Credits (RECs) or offsets to comply, you need data to know how many credits to buy. In short, compliance with LL97 is a data-driven exercise, and a lack of insight can be costly.

• Sub-metering and Tenant Energy Data (LL88): LL88 essentially creates a new data stream – monthly electricity usage for each big tenant. Collecting this data isn’t just for compliance reporting; it must be an ongoing operational practice. Owners need to install sub-meters that automatically log consumption for each space and then generate monthly statements for tenants. If done manually (e.g., reading meters and typing up statements), it’s prone to error and labor-intensive. Automated data collection makes this feasible and reliable. Moreover, once tenants get their usage data, many will have questions or concerns, so having accurate sub-meter data helps owners build trust and verify any billing. From a building management perspective, that granular data is gold: it can reveal which tenant or which equipment is using unusual amounts of energy, leading to targeted efficiency improvements. And remember, LL88’s outcome isn’t just a one-time report – those monthly statements to tenants are an ongoing requirement. Fumbling the data or failing to provide the statements could potentially result in complaints or DOB enforcement down the line.

• Integration with Benchmarking and Other Local Laws: NYC has a web of related energy laws (e.g., Local Law 84 for benchmarking, Local Law 87 for audits/retro-commissioning). The data collected for one purpose often serves another. For instance, the same energy data underlying LL84 and LL97 can be used to identify efficiency projects for LL87 or for elective retrofits. By centralizing the building’s utility data, owners can efficiently comply with all these laws and also demonstrate improvements over time (which could even be showcased in the building’s required energy grade under Local Law 33). In essence, having a single source of truth for your building’s energy metrics makes life much easier for compliance across the board.

Given the complexity and volume of data involved, many building owners and ESG consultants are turning to smart energy monitoring solutions to automate this data collection and make it “real-time.” This is where a platform like Rhino becomes invaluable.

How Rhino’s Real-Time Monitoring Simplifies Compliance

Rhino’s real-time platform continuously tracks electricity, gas, water, and more – providing New York building owners with instant insights into usage and emissions that can make LL97 and LL88 compliance far more manageable.

Staying compliant with LL97 and LL88 doesn’t have to be an overwhelming burden. Rhino, the global #1 in remote energy and utility monitoring, offers a solution that tackles the data challenges head-on. By deploying Rhino’s technology, commercial real estate owners, property managers, and ESG consultants can automate the collection of all relevant utility data in real time – ensuring nothing falls through the cracks. Here’s how Rhino can help you meet NYC’s requirements:

• Comprehensive Data Collection: Rhino’s platform pulls in utility and sub-meter data from virtually any source – whether it’s direct integration with utility providers, third-party meters, or Rhino’s own hardware that can read over 250 types of legacy and smart meters. Electricity, gas, steam, water – all your consumption info is aggregated in one place with accurate, up-to-the-minute readings. For LL97, this means you’ll always know your building’s current-year usage and can see your carbon emissions trajectory at a glance (no more waiting for the utility bill at month’s end). For LL88, Rhino can interface with your tenant sub-meters, automatically collecting each tenant’s kWh usage data daily. By having all this data centralized, preparing the annual LL97 emissions report or the LL88 compliance submission becomes much simpler – the verified numbers are at your fingertips.

• Real-Time Alerts and Insights: One of the major advantages of Rhino is real-time analytics. You can set custom thresholds and get alerts if consumption spikes or deviates from normal patterns. For example, if a building’s electric use is trending higher than expected in mid-winter, you’ll be alerted and can investigate (maybe a control system malfunction or tenant equipment left on). This proactive approach helps avoid surprises at year-end that could put you over the LL97 carbon cap. As Swift Sensors (a Rhino partner) noted, “with Rhino sensors, submetering becomes even more powerful by enabling remote monitoring and real-time alerts… operators no longer need to rely on periodic utility bills or on-site inspections to understand consumption patterns”. Immediate visibility means you can fix problems in hours or days, not find out about them months later after wasting energy. Real-time data also feeds into peak demand management – shaving down peak loads can reduce strain on the grid and lower costs, which indirectly helps with emissions, too.

• Automated Tenant Reporting: Rhino’s solution makes the LL88 monthly tenant statements effortless. Instead of manually compiling each tenant’s usage, the platform can generate automated, customized reports or even integrate with billing systems to charge tenants based on actual use. Rhino supports automated tenant billing and engagement tools, so commercial tenants in, say, a large office building can log into a portal to see their own energy consumption. This not only fulfills the law’s requirement to provide monthly statements, but it also engages tenants in energy savings (since they can clearly see when they used the most power and perhaps adjust their behavior). By remotely monitoring sub-meters, building staff don’t need to walk around reading meters – it’s all collected and stored securely in the cloud. The data is also there to back up your compliance report; if the city ever audits your submission, you have a detailed log of exactly what was installed and the ongoing readings to prove it.

• Streamlined Compliance Reporting: With Rhino capturing all the necessary data, producing compliance documentation is far less painful. Rhino’s platform can be configured to output the needed metrics for NYC’s BEAM portal or Energy Star Portfolio Manager directly, ensuring your LL97 annual emissions report is populated with accurate numbers. The platform emphasizes data accuracy and integrity – crucial when a mistake in your report could mean a fine. In fact, Rhino’s monitoring is so robust that it helps with broader ESG reporting and certification requirements, too. (For example, you can easily compile data for LEED or GRESB because the historical utility data is all there, audited, and timestamped.) The convenience of “one-stop” data access cannot be overstated – many owners still scramble with spreadsheets and disparate data sources for compliance, but Rhino eliminates that hassle. As a result, your staff or consultants can spend more time optimizing building performance rather than chasing data.

• Ensuring Ongoing Performance: Compliance isn’t just a deadline to meet and then forget. Both LL97 and LL88 essentially require ongoing performance – maintaining emissions below caps every year, and keeping efficient lighting and sub-meters in place permanently. Rhino assists here by continuously verifying performance. For instance, if a building implemented an LED lighting upgrade for LL88, Rhino’s monitoring can quantify the actual reduction in electrical load from lighting and ensure those savings persist. If down the line some lights fail or behavior changes, you’d see energy creeping up and can take action. Similarly, to stay under future LL97 carbon caps (which get stricter in 2030), buildings will likely need to further reduce energy use or carbon intensity – Rhino’s detailed analytics highlight the best opportunities (e.g., it might show that your heating system spikes gas use on cold nights, indicating a retrofit or better controls are needed). Essentially, Rhino provides the actionable intelligence to go beyond basic compliance and towards optimal efficiency. It turns a compliance cost into an operational benefit – many Rhino users find they save money by catching waste and inefficiencies early, often paying for the system in energy cost savings alone.

• Reliable and Verified Data: In the era of data-driven regulation, having auditable, verified data gives peace of mind. Rhino delivers “accurate, reliable, and real-time insights for commercial real estate”. The data is tracked and stored with professional oversight, so it can be confidently used in official filings. If NYC’s Department of Buildings asks for supporting evidence of your emissions calculations or sub-meter installations, you can provide records straight from the Rhino system. This level of data quality and transparency is something that manual collection or after-the-fact consultants’ reports may struggle to match. And reliability isn’t just about accuracy – Rhino’s hardware and software ensure that even if one data source goes down temporarily, the system can fill gaps (for example, by retrieving utility company readings). You won’t have to worry about missing data points when the compliance clock is ticking.

In summary, Rhino acts as an all-in-one compliance ally: by collecting data in real time, automating reporting, and providing actionable analytics, it empowers building owners and managers to not only meet Local Law 97 and 88 requirements but to do so with confidence and efficiency. As one industry resource put it, “submetering provides the granular data necessary for compliance with these regulations. Rhino helps building operators collect, report, and verify energy usage data, making it easier to meet local codes and certifications”. With Rhino’s help, you can transform what might have been a frantic scramble into a smooth, routine process – all while uncovering opportunities to cut energy waste and costs.

Checklist: Steps to LL97 & LL88 Compliance

Achieving compliance involves multiple steps and coordination among your team and service providers. Here’s a handy checklist summarizing what NYC building owners should be doing right now:

• Determine if Your Building Is Covered: Verify if LL97 and/or LL88 apply to your building (generally >25k sq ft). Check the city’s covered building lists or consult a professional.

• Benchmark Your Current Performance: Review your building’s recent energy usage and emissions (from Portfolio Manager or utility bills). This will show if you’re likely to be above the LL97 emissions cap or if lighting systems are outdated.

• Hire Qualified Professionals: Engage a Registered Design Professional (engineer or architect) for LL97 emissions reporting and a design professional or licensed electrician for LL88 upgrades. They will certify your compliance reports.

• Implement Required Upgrades:

  • For LL88: Replace non-compliant lighting with code-compliant, efficient lighting and controls in all required areas. Install electrical sub-meters for all tenant spaces ≥5,000 sq ft. 

  • For LL97: Pursue energy efficiency projects or operational changes to reduce emissions if projections show you’ll exceed the 2024 limit. Consider HVAC upgrades, insulation, lighting improvements (if not already done), and cleaner energy sources.

• Collect Data Continuously: Set up systems (like Rhino’s monitoring) to gather building energy usage data in real time. Ensure you have 2024 data for all fuels organized for the LL97 report, and a mechanism to record monthly tenant usage for LL88 statements.

• Compile Documentation for Reports: By the spring of 2025, prepare your compliance submissions:

  • LL97 report: Calculate 2024 emissions and have your RDP certify the values.

  • LL88 report: Obtain an attestation from the professional that lighting upgrades and sub-meters are complete. Prepare the list of tenant spaces and sample statements.

  • Pay the required filing fee (if applicable) and be ready to upload everything via the DOB’s BEAM portal.

• Meet the Filing Deadlines: Submit your LL97 and LL88 reports by May 1, 2025. If you need a bit more time and are eligible, use the grace period to June 30 (and apply for an extension for LL97 if necessary). Remember, no extension past June 30 for LL88-only buildings, so don’t delay those upgrades!

• Plan for Ongoing Compliance: Compliance isn’t one-and-done. Continue to monitor energy use and maintain efficient systems. Keep records of any improvements or changes. If your building will face tougher carbon caps in 2030, start planning early (e.g., major capital upgrades often take years to finance and complete). Leverage tools like Rhino to set future targets and track progress continuously, so you’re prepared for the next milestones and avoid any surprise penalties.

By following this checklist, you’ll position your building not only to avoid fines but to operate more efficiently and sustainably – which is exactly what these laws intend to accomplish.

Conclusion

New York City’s Local Laws 97 and 88 set a new bar for building performance and accountability. They require action now, but they also offer an opportunity: buildings that get ahead of compliance will reap benefits in energy savings, higher asset value, and reputation. The key is to treat compliance as a component of good building management, rather than a last-minute legal hoop to jump through. And that’s where Rhino comes in as a game-changer. By harnessing real-time energy and utility data, Rhino helps you turn LL97 and LL88 into manageable tasks. You’ll know exactly where you stand against emissions limits, you’ll have proof of every LED installed and every kilowatt-hour used, and you can sleep easier knowing you’re catching issues before they become expensive problems.

Ready to simplify compliance and put your building on the path to sustainability? Rhino’s team is here to help. As the global leader in remote energy monitoring, we have helped countless real estate portfolios stay on top of energy laws and improve their efficiency in the process. Contact our sales team today to learn how Rhino can be tailored to your NYC buildings. We’ll walk you through the platform, show you how to streamline data collection and reporting, and set you up for success with Local Law 97, Local Law 88, and other relevant regulations. Don’t wait until fines arrive or deadlines loom – let’s make your compliance strategy proactive, data-driven, and effortless.

Contact Rhino for a complimentary consultation or demo, and take the first step toward worry-free compliance. Together, we’ll ensure your buildings are not only law-abiding but high-performing and future-ready.