Local Law 87
With the end of the year quickly approaching, property owners should confirm whether their buildings are due for Local Law 87 (LL87) compliance in 2025. This law, part of the Greener, Greater Buildings Plan, requires covered properties to undergo a professional energy audit and retro-commissioning every ten years to improve operational efficiency and reduce energy waste.
Who Must Comply
LL87 applies to all buildings over 50,000 square feet, or groups of buildings on a single tax lot that collectively exceed 100,000 square feet. The compliance year is determined by the last digit of the property’s borough-block-lot (BBL) number.
For example, if your block number ends in “5,” your building must comply by December 31, 2025.
What’s Required
Owners must hire a qualified engineer to perform:
An energy audit, identifying cost-effective measures to reduce energy usage; and
A retro-commissioning study, ensuring existing equipment operates as designed and efficiently.
Once both are complete, the engineer submits a LL87 Energy Efficiency Report (EER) to the Department of Buildings (DOB) by the end of the compliance year.
Extensions and Penalties
The DOB allows for two one-year extensions if an engineer has been contracted before the compliance deadline. However, failure to submit by the required date can result in a $3,000 fine for the first year and $5,000 per year thereafter until the report is filed.
Why It Matters
Beyond compliance, LL87 often uncovers valuable opportunities for energy savings. Retro-commissioning projects can improve tenant comfort, extend equipment lifespan, and support broader Local Law 97 (LL97) carbon reduction goals.
Aurora Energy Advisors assists clients with every stage of the LL87 process — from contractor selection to report submission — ensuring compliance while identifying efficiency improvements with strong return on investment.
Market Analysis
Electricity
NYISO Zone J electricity prices averaged $0.04 to $0.05 per kWh in August. While peak-hour pricing remains elevated during heat waves, overall summer rates have been consistent with last year’s levels.
Natural Gas
NYMEX natural gas traded between $2.50 and $2.70 per MMBtu through August. High storage levels and steady production continue to balance seasonal cooling demand.
Crude Oil
Crude oil remained in the $77–$82 per barrel range in August, supported by steady global demand and restrained OPEC+ output heading into the fourth quarter.
💡 Mitchell’s Tip: If your block number ends in “5,” start your LL87 process now — it can take months to complete an audit and report before the December 31 deadline.
