Reducing Your Carbon Emissions: Controls
As the inaugural year of LL97 reporting comes to a close, the industry as a whole has gained valuable lessons from the process. One takeaway stands above the rest. Know your LL97 outlook, understand your potential penalty exposure, and plan ahead.
Many buildings are already over, or nearing, their carbon allowances and face the risk of substantial penalties. Fortunately, the 2024–2029 carbon thresholds remain relatively generous compared to future periods. This means drastic and costly measures, such as full electrification, may not yet be necessary. Instead, targeted efficiency improvements can eliminate five or even ten years of potential LL97 penalties. The added benefit of reduced energy use and lower utility costs only strengthens the return on investment.
The next wave of buildings — those with at least one unit but fewer than 35% affordable units that received a two-year deferral — will fall under LL97 compliance beginning with their 2026 energy data. With 2026 fast approaching, now is the time to act. In this first of a series of upcoming newsletters, we will highlight some of the most cost-effective strategies to reduce your energy consumption and emissions, starting with a focus on heating and cooling controls.
Heating, ventilation, and air conditioning (HVAC) systems are among the largest energy consumers in any building, and a Building Management System (BMS) plays a key role in optimizing their performance. A BMS is an automated control platform that monitors and regulates mechanical and electrical equipment such as chillers, boilers, air handling units, pumps, and fans to maintain comfortable indoor conditions while minimizing energy waste. By collecting data from sensors throughout the building and using programmed logic to adjust system settings in real time, a BMS ensures that heating and cooling are provided efficiently, only where and when they are needed. This level of centralized control not only improves occupant comfort but also extends equipment life and reduces maintenance costs.
Within this framework, boiler controls are a particularly important component. This technology will rely on both indoor and outdoor temperature sensors to continually assess heating demand and adjust system output accordingly. By monitoring variables such as water temperature, pressure, and real-time load, the controls automatically modulate boiler firing rates to match actual conditions rather than running at a constant output.
Payback period for these upgrades is often one year or less. Incentives have long been available through Con Edison, National Grid, and NYSERDA to subsidize the installation cost, though incentive programs are subject to change over time.
This intelligent use of temperature feedback and system optimization technologies ensures steady comfort throughout the building, reduces energy consumption, and lowers greenhouse gas emissions, making advanced boiler controls a vital element in achieving operational, economic, and sustainability goals. In fact, the Department of Buildings (DOB) made this energy efficiency measure a requirement for LL97 compliance for affordable buildings because of its proven ability to cut emissions and costs, as well as modernize older systems.
Contact your Aurora account executive for more information on what options are available for your building and how they can positively impact your bottom line and LL97 outlook.
Market Analysis
Natural Gas
The NYMEX natural gas contract for November settled at $3.376/MMBtu. As the heating season begins, demand for natural gas is increasing, putting upward pressure on prices. After dipping in August and September due to expectations of a warmer fall, futures rebounded sharply in October as temperatures and forecasts turned colder. At the same time, U.S. LNG exports climbed to more than 10 million metric tons for the month, marking the highest volume ever exported by a single country. With winter approaching, continued market volatility is likely.
Electricity
Much like the natural gas market, electricity prices have entered their seasonal upswing. After a brief respite in September, the NYISO Zone J market averaged between $0.04 and $0.06 per kWh throughout October. Because natural gas remains the primary fuel source for electricity generation in New York State, power and gas prices typically move in tandem, reflecting their close market correlation.
Crude Oil
Crude oil futures followed a valley-shaped trajectory in October, dipping to a five-month low mid-month. After starting and ending the month near $60 per barrel, prices bottomed out around $56 on the back of two key developments. First, news of a ceasefire between Israel and Hamas eased concerns over geopolitical risk in the Middle East, a major oil-producing region. Second, renewed threats of tariff retaliation against China by President Trump raised fears of slower global economic growth, further pressuring prices.
💡 Mitchell’s Tip: Invest in energy efficiency projects.
