How to Tackle Local Law 97 Compliance for Your NYC Coop or Condo Building
As a co-op or condo board member, you’re likely feeling the pressure of Local Law 97 (LL97)—one of NYC’s most ambitious climate laws. Designed to reduce carbon emissions from large buildings, LL97 comes with strict emissions limits and potential fines for non-compliance.
But what happens when your building wants to comply but simply doesn’t have enough electrical capacity to fully electrify?
You’re not alone. Many NYC buildings face this exact challenge. The good news? Even if full electrification isn’t immediately possible, you can still take meaningful steps to lower emissions and avoid fines.
Here’s how one NYC co-op tackled this problem by installing a Domestic Hot Water (DHW) Heat Pump—a strategic first step toward compliance and sustainability.
The Problem: Limited Electric Capacity Blocks Full Electrification
A 60-unit co-op in Manhattan came to us with a major challenge. They knew they had to cut emissions to comply with Local Law 97, but their goal of fully electrifying the building seemed impossible after an electrical feasibility study revealed a serious roadblock:
Their existing electrical infrastructure didn’t have enough capacity to support full electrification.
The estimated cost to upgrade their electrical service was substantial. It included:
Upgrades to the electrical main boxes
Replacement of feeder cables
New electrical boxes inside each apartment
The process could take years—time they didn’t have with LL97 deadlines quickly approaching.
The Solution: Installing a Domestic Hot Water Heat Pump
Instead of waiting for costly electrical upgrades, the board took a practical, phased approach by installing a Domestic Hot Water (DHW) Heat Pump System.
Why This Was a Smart Move
Lower Electric Demand: DHW heat pumps require significantly less electricity than full electrification projects.
Immediate Carbon Reduction: Replacing their gas-fired hot water system helped lower emissions immediately.
Financial Incentives: The board leveraged Con Edison rebates and NYSERDA incentives, covering up to 50% of the installation cost.
Local Law 97 Compliance: The upgrade reduced emissions and helped the building avoid potential fines.
How They Made It Work: Step-by-Step Process
1. Understand Local Law 97 Requirements
Local Law 97 requires buildings over 25,000 square feet to meet strict emissions limits. Penalties for non-compliance started in 2024 and get stricter by 2030.
Since electrification is one of the most effective ways to cut emissions, many buildings are rushing to upgrade—but running into electrical capacity issues just like this co-op did.
2. Conduct an Energy Audit
Start by understanding your building’s:
Current energy usage
Existing electric capacity
Work with an experienced energy consultant to identify upgrades that won’t overload your electrical infrastructure.
3. Prioritize High-Impact, Low-Energy Upgrades
Domestic hot water heat pumps are an ideal first step:
They significantly reduce emissions
Require less electricity
Easily integrate with most existing systems
4. Use the Right Portals for Compliance Reporting
You’ll need to file emissions data and pay filing fees through multiple portals:
NYC DOB Portal – Register and pay filing fees
ESPM (EnergyStar Portfolio Manager) – Benchmark your energy use
BEAMS – Submit emissions data
Pro Tip: Use the correct BBL (Borough, Block, Lot) format—a 10-digit number with no spaces or dashes (e.g., 1001677501).
5. Apply for Incentives
New York offers generous programs for energy efficiency upgrades:
Con Edison’s Clean Heat Program – Rebates for heat pump installations
NYSERDA Grants – Financial support for energy-efficient projects
Federal Tax Credits – Inflation Reduction Act benefits
Speak with your CPA about including project costs in owners' annual capital expense letters.
6. Plan for the Future
Electrification is a long-term process. Starting with a DHW heat pump allows your building to:
Reduce emissions today
Prepare for full electrification tomorrow
The Results: Lower Costs, Fewer Emissions, and Compliance
Within six months of installing the DHW heat pump, the building achieved:
📉 35% reduction in gas consumption
🌱 Lower carbon emissions
💰 Over $200,000 in incentives and energy savings
🚀 Future-ready infrastructure for space heating upgrades
Key Takeaways for Your Building
If your building is struggling with limited electric capacity:
You don’t need to wait for a full upgrade to take action
Start with high-impact, low-energy upgrades like DHW heat pumps
Secure incentives and plan your next steps
Next Steps: How We Can Help
Navigating Local Law 97 and electrification can feel overwhelming, but you don’t have to do it alone.
We specialize in helping NYC condo and co-op boards develop practical, cost-effective sustainability strategies.