First Deadline of NYC’s Local Law 154 of 2021 Looms
With the passage of Local Law 154 of 2021 (the “All-Electric New Buildings Law”), New York City became the largest city in the world to require that newly constructed buildings operate solely on electricity. This law means new buildings, with few exceptions, will be all-electric and emit less carbon, with the goal of improving local air quality. The law is a significant milestone in the city’s push to decrease greenhouse gas emissions and sets ambitious targets for reducing the city’s carbon footprint. It is important for all developers, owners, and builders to be aware of the law’s regulations to ensure compliance and plan for similar transitions as this trend continues.
Local Law 154 is inaccurately referred to as an “NYC fossil fuel ban.” In actuality, the law imposes strict carbon dioxide limits on newly constructed buildings by prohibiting the use of any substance that emits over 25 kg of CO2 per million BTUs. This effectively bans the use of:
- propane
- diesel
- home heating fuel
- kerosene
- natural gas
- gasoline
- residual heating fuel in new buildings
The target of Local Law 154 is new construction. New buildings under seven stories must be fully electric by January 2024. Buildings over seven stories must comply by July 2027.
Major renovations that increase a building’s floor surface area by more than 110% are also subject to the law’s provisions. The Department of Buildings will enforce Local Law 154 through its existing construction document review process. Click here to read the law in its entirety.
However, the law also includes exemptions for certain types of buildings. These include:
- facilities requiring fossil fuel combustion for manufacturing
- laboratories
- commercial kitchens
- hospitals
- crematoriums
- buildings used by utilities to generate electricity or steam
- buildings used to treat sewage or food waste
While Local Law 154 does not address retrofitting current buildings, Local Law 97 is forthcoming. Both laws aim to reduce building emissions by 40% by 2030 and 80% by 2050. Local Law 97 requires buildings over 25,000 square feet to meet lower emissions limits over the next decade.
The new emission thresholds starting in 2024 will affect only the top 20% of emitters. By 2030 the law will impact 75% of New York City’s buildings.
Local Law 154 represents a bold initiative in New York City’s efforts to reduce greenhouse gas emissions. Commercial real estate developers, building owners, and construction companies must become familiar with these new regulations to ensure compliance.
For counsel on this historic law and the larger trend it represents, contact Jonathan A. Murphy of Bleakley Platt & Schmidt’s Construction Law Practice Group at (914) 287-6165 or jamurphy@bpslaw.com.
To consult the Real Estate Practice Group on this matter, contact Peter N. Bassano at (914) 287-6102 or pbassano@bpslaw.com.
Read MoreNew York’s Construction Industry Wage Theft Bill: Prime Contractors in New York Now Liable for Unpaid Wages Owed To Subcontractors’ Employees
On September 6, 2021, NY Governor Hochul signed into law the Construction Industry Wage Theft bill (S2766C), imposing joint and several liability on prime contractors for the wage and benefit claims of their subcontractors’ employees. Effective January 4, 2022, the new law covers claims for unpaid wages, benefits and wage supplements as defined by NY Labor Law § 198, and thus covers not only wages but also reimbursable expenses, health and retirement benefits, and vacation, separation and holiday pay.
The law also incorporates and applies to prime contractors all other remedies available to employees under NYLL § 198, including liability for an additional amount, up to 100% of the unpaid wages, as liquidated damages (and up to 300% where a willful violation is shown); attorneys’ fees; prejudgment interest; and other potential penalties. It bears noting that contractors may contract for indemnification by subcontractors and may maintain an action against a subcontractor to recover owed wages that are paid by the contractor. The law applies to all non-union contracts and employees.
The obligations imposed by this new law may already exist for those general contractors who are deemed to be a “joint employer” under applicable federal and NYS wage and hour laws. However it effectively expands “joint employer” liability to include employers beyond those currently recognized under these wage and hour laws, and provides remedies which may not in any event be available under federal law.
In light of the risks of liability created by this new law, prime contractors in New York would be well advised to develop strong indemnification provisions for their subcontracts, as well as auditing and other contract management practices to ensure that their subcontractors’ non-union employees are receiving all wages and benefits to which they are entitled.
Bleakley Platt’s employment and construction law attorneys are continuously monitoring legal developments relevant to their clients’ interests. If you have any questions regarding this alert, please contact Joseph DeGiuseppe at jdegiuseppe@bpslaw.com | 914-287-6144, or Jonathan Murphy at jamurphy@bpslaw.com | 914-287-6165.
Read MoreIndependent Contractor Misclassification (2015)
An Overview of Relevant Legal Issues and Recent Developments
Click here to view the PDF titled ‘Independent Contractor Misclassification’ (2015) by Joseph DeGiuseppe, Jr.
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