Local Law 87
Local Law 87 (“LL87”) has been a key part of New York City’s energy regulations for over a decade. By now, buildings required to comply have already completed at least one cycle of the law. It is easy for LL87 to be overlooked amid the growing landscape of local energy regulations, so let Aurora Energy Advisors simplify the process and handle compliance for you.
LL87 requires buildings over 50,000 square feet to undergo a comprehensive energy audit every ten years. These audits not only assess existing building systems and identify required retro-commissioning measures but also highlight optional energy efficiency projects that could further reduce costs and improve performance. Once retro-commissioning measures are complete, the engineer conducting the audit submits a final report to the NYC Department of Buildings (“DOB”) by the end of the building’s designated compliance year.
Determining the compliance year is based on the last digit of the building’s DOB-assigned block number. For example, a property with a BBL of 1-12345-6789 would need to submit its report by December 31, 2025. Because the audit process is extensive, it typically takes at least a year to complete. Selecting and contracting with an engineering firm can require board approval, and the audit itself must evaluate equipment performance across both heating and cooling seasons. Following the audit, retro-commissioning measures are implemented before the final report is filed with the DOB.
For many properties, the upcoming compliance deadline on December 31 is fast approaching, making timely action essential. Buildings with deadlines further out can still take advantage of early compliance up to four years in advance, which allows owners to plan efficiently and manage costs. Aurora is available to assist in securing proposals and guiding buildings through the process from start to finish.
Even if a building is at risk of missing its deadline, it is not too late to take corrective action. The DOB offers two one-year extensions for late compliance, provided the property is under contract with an engineering firm in time for the extension application. Non-compliance penalties start at $3,000 for the first year and increase to $5,000 annually thereafter, making timely action critical.
Many owners find it beneficial to engage an engineer early, taking advantage of the option to comply up to four years in advance. Early planning allows ample time to complete retro-commissioning measures and provides additional value: most engineers now include a Local Law 97 carbon study and roadmap within their LL87 audits. With LL97 compliance beginning in 2025 for most buildings, having this roadmap in hand today can be invaluable for long-term planning.
Newly constructed buildings with a Temporary Certificate of Occupancy less than ten years old on their compliance date are exempt from LL87 until the following ten-year cycle.
With deadlines approaching and regulations evolving, proactive planning and Aurora’s expert guidance can simplify compliance, reduce risk, and help building owners make the most of the opportunities that LL87 audits present.
Market Analysis
Natural Gas
For the second month in a row, strong levels of working gas in storage and cooler weather allowed the NYMEX to retreat. This comes as welcome relief for utility customers who have faced elevated natural gas prices since December, when record cold temperatures disrupted the supply-demand balance. The settlement for September closed at $2.87, the lowest since November 2024.
Electricity
Following a similar trend to the natural gas commodity, the NYISO generally stayed at lower levels, especially in the back half of August when cooler temperatures minimized cooling demand. Full-month average for the commodity was about 4 cents per kWh, dipping below 3 cents in the final week of the month. With the shoulder season upon us, we can expect this trend to continue in the near term.
Crude Oil
Crude oil futures showed little volatility in August, trading mostly within the $60–65 per barrel range. With speculation that the Federal Reserve may cut interest rates this fall, oil prices began to edge higher. Lower interest rates typically spur economic activity, which in turn drives increased demand for oil. This trend will be important to watch over the remainder of the year. Prices ended the month at $64 per barrel.
💡 Mitchell’s Tip: Invest in energy efficiency projects.
