LL87 FAQ
Local Law 87 (“LL87”) has been around for over 10 years. Every required building has already been through one cycle of the law. The requirements are fairly straightforward. Still, with all the other local energy laws at the forefront of our minds, it is easy for LL87 to get lost in the shuffle.
For many buildings, the compliance deadline is coming up on December 31, so it is important to act now. For those not due this year, you are allowed to comply up to 4 years in advance. Aurora can assist with securing proposals for this effort.
Below, we answer the most common questions we hear from building owners and managers.
Q: What is LL87?
A: LL87 mandates that, every 10 years, BBLs over 50,000 square feet must perform a comprehensive energy audit. This audit will outline required retro-commissioning measures and analyze additional optional efficiency projects. Upon completion of the retro-commissioning measures, the engineer who completed the audit must submit a report to NYC’s Department of Buildings (“DOB”) by December 31 of the building’s compliance year.
Q: When is my building’s compliance year?
A: Compliance year is determined by the last digit of the property’s DOB-assigned block number. For example, if your BBL (borough-block-lot) is 1-01234-5678, compliance is due by December 31, 2024.
Q: How long does the entire LL87 process take?
A: Because of the vastness of the audit, the entire process takes at least a year. First, you have to obtain proposals from engineering firms and decide which to sign up, which can take time if the decision requires a board vote. Once approved, the engineer must conduct various forms of testing in both the winter and summer to assess building equipment through both the heating and cooling seasons. Lastly, the building will complete the retro-commissioning measures, and the engineer submits a final report to the DOB.
Q: My building is due this year, or was due in a prior year, but my building will miss or already missed its deadline for any number of reasons. What should I do? Are extensions available?
A: It is not too late. Yes, the DOB offers two one-year extensions. If you are contracted with an engineering firm by mid-December, there is still time for them to apply for an extension and avoid a violation.
Q: What are penalties for non-compliance?
A: The penalty is $3,000 for first-year offenses and $5,000 per year thereafter.
Q: Why should I sign up an engineer early?
A: The DOB allows for early compliance 4 years in advance, and we generally recommend taking advantage of this. First, as just outlined, the process A to Z can get drawn out. The more time, the better, to budget for and complete the retro-commissioning measures. Second, most engineers nowadays include a LL97 carbon study and roadmap in their LL87 audit reports. 2025 is the first year of LL97 compliance for most buildings, so having this plan in hand today will prove invaluable.
Q: How can I figure out if the report was filed?
A: If you are not sure whether you contracted with an engineering firm for LL87 and exhausted all efforts to figure out if the final report was filed, you can submit a formal request to the DOB. The DOB will be able tell you if the report was filed and by who.
Q: Does new construction have to comply?
A: If the first Temporary Certificate of Occupancy is less than ten years old on the compliance due date, it is exempt from LL87 until the next 10-year cycle.
Market Analysis
Natural Gas
The NYMEX prompt-month see-sawed throughout the November amid oscillating weather forecasts and storage reports. Beginning the month around $2.70 per MMBtu, the commodity eventually rose to over $3 by Thanksgiving week. Total working gas in storage is 3.7% above the same time last year and 6.4% above the five-year average.
Electricity
Much like the NYMEX which serves as the primary input to electricity generation, NYISO Zone J pricing ran up in the back half of November. Starting the month just under $0.03 per kWh, it nearly touched $0.04 by late November. With winter heating demand on the rise, the commodity could be subject to more volatile price swings as weather fluctuates.
Crude Oil
Tropical storm threats in the Gulf of Mexico caused crude oil to jump back over $70 per barrel in early November because of fears of impact to production. Once those concerns waned, pricing fell as low as $67. More recently, escalating tensions between Russia and Ukraine worried traders to the tune of a 4% jump in just 2 days, though this sort of movement driver is more often short-lived than not.
💡 Mitchell’s Tip: Develop an LL97 carbon roadmap.
