How the fine is calculated
Local Law 97 sets emissions limits on large NYC buildings. For each ton of CO2 equivalent the building emits over its assigned threshold, the owner owes approximately $268. The threshold varies by building type (office, residential, hotel, retail, etc.) and tightens in phases (2024 to 2029 is the first compliance period, 2030 onward is stricter).
Thresholds are expressed in metric tons of CO2 equivalent per square foot. A 40,000 sf office building with a 2024 to 2029 threshold of 8.46 kg CO2e/sf has an annual limit of about 338 metric tons. If it emits 400 tons, it owes (400 minus 338) × $268 = $16,616 for that year.
Who is directly liable
The building owner, not the tenant. LL97 is a building-level regulation.
Why it may still matter for small business tenants
Commercial leases can include "pass-through" clauses that let landlords recoup LL97 penalties from tenants, typically allocated by square footage. If you lease retail, restaurant, or office space in a building of 25,000 sf or more, request the building's LL97 compliance status and any planned pass-throughs before renewing. Older, less efficient buildings in Midtown, Downtown, and outer-borough commercial corridors are at highest risk.
Filing requirements and deadlines
- Annual emissions compliance report required for calendar year emissions.
- Filing deadline: May 1, with automatic extension available through June 30.
- Must be certified by a Registered Design Professional (architect or engineer).
- DOB publishes the Covered Buildings List each year. Verify your building status at nyc.gov/buildings.
Missing the filing
Failure to file is itself a separate violation, distinct from the per-ton emissions penalty. DOB has discretion to assess late filing penalties and refer enforcement to OATH.