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Article 321: 1-year Return on the Cost of Compliance

David Chen • April 29, 2024

Article 321: 1-year Return on the Cost of Compliance

Looking up at a tall building with lots of windows

Local Law 97’s Article 321 track applies to rent-regulated multifamily buildings and houses of worship. It requires that buildings either comply with the 2030 LL97 limit in 2024 or buildings sufficiently satisfy / implement 13 prescriptive energy measures.

These common energy measures include such items as ensuring heating systems are operating & controlled properly, heating piping and tanks are insulated, no system leaks exist, steam traps are sound, exhaust fans operate appropriately, and the building envelope is tight. Some of these measures require attestations by a (licensed) technical professional and others required detailed inspection reports which if completed accurately, serve as useful records for the building to track the condition and proactive maintenance needs of the building.

The process can be cumbersome for building owners, but with a sound approach to compliance, the benefits far outweigh the costs in the form of:

Uncovering of system deficiencies that can be wasting energy and operating cost, that may have otherwise been overlooked.
Identifying upgrade opportunities and projects that qualify for new Article 321-related incentives.
Increased energy efficiency from improvements to equipment controls and operations.
Avoiding the $10,000 penalty.
Improvement of building energy grade.

The RKB team has been hard at work walking buildings, recording data on the systems and presenting findings to ownership, and registering buildings’ Article 321 reports. What we continue to see with this compliance track is that the overall cost savings realized from the efforts, easily outweighs the cost of the compliance report within 1 year.

There is an optimal way to address or implement each of the measures and as is often the case, choosing the right provider can significantly affect the overall result of this required compliance work.

Useful link - Covered Buildings Lists: https://www.nyc.gov/site/buildings/codes/sustainability.page

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Unlocking the “Good Faith” Exception to LL97 Compliance

By David Chen • June 1, 2024

Flexibility: NYC implemented a “good faith” exception since lawmakers recognize how complicated decarbonizing a city can be. This law gives owners more time to make the required changes.

Lightning strikes over the empire state building in new york city

Colombia to New York City - Local Law 97

March 30, 2024

The tools available to building owners for implementing capital improvements are as strong as ever. As an Engineer with experience in Energy Management & Intelligence Consulting for Real Estate companies across Colombia, it has been intriguing to dive into the world of Local Law 97 and building decarbonization in New York City. Whereas private organizations in South America implement sustainability practices for the primary objective of energy cost savings, as seems to be the tradition throughout the US, New York City looks to have many more tools and resources at their disposal. The opportunities for buildings to get a competitive edge in quality and operation are better than ever. Past projects I have worked on that have reduced operating costs, include optimizing a 29-MW cogeneration plant, implementation of variable-speed controls for process pumps, and load shifting from gas boilers to heat pump system for a hospital campus. These projects provided the owners with GHG reductions of over 200 tCO2/year. In the Northeast U.S., these projects seem like they would also be attractive capital improvements on the basis of energy cost savings alone. In my short time in NYC, I’ve supported the design and implementation of HVAC system optimizations, steam trap & heating system improvements, and lighting projects in my short time in NYC to date. These projects have become especially viable in 2024 when you stack the benefits of: Cost savings from upgrades to offset rising energy costs . Avoided Local Law 97 penalties and/or Beneficial Electrification credit. Accurate quantification of maintenance improvements from reduced loads or run hours. Incorporating all available utility incentives and grants . Optimizing equipment selections for Demand Response which has growing enrollment rates. Utilizing 0% financing programs currently available to owners. It seems like the challenges for buildings in NYC are no longer as much about about how to make the projects viable, but which to prioritize to get the strongest benefits. I’m thrilled to be able to bring another perspective to real estate owners in NYC and help them leverage all the tools available to make otherwise overlooked projects, viable. -Arnold Merino

a man in a hard hat is looking at a clipboard in a factory .

Article 321: 1-year Return on the Cost of Compliance