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.