NYC Landlords Bracing for Millions in Fines With New Climate Law (msn.com)
NYC Landlords Bracing for Millions in Fines With New Climate Law
Story by Natalie Wong • January 19, 2023
(Bloomberg) — Landlords for thousands of New York City properties are bracing for fines from a new emissions law that will come into effect next year.
Under the new rules, up to 3,700 properties could face total penalties exceeding $200 million a year, a study by engineering consulting firm Level Infrastructure showed. By 2030, up to 13,500 buildings could face fines totaling more than $900 million a year, according to the study, commissioned by the Real Estate Board of New York, an industry trade group.
The measure, dubbed Local Law 97, was implemented in 2019 with an aim to help New York cut its greenhouse gas emissions by 40% by 2030 and 80% by 2050. The law establishes emissions caps for tens of thousands of New York’s largest buildings including giant bank headquarters, hotels and apartments.
While advocates of the measure insist that cities should use stricter methods to encourage the transition to cleaner energy sources, critics have argued that the law is too harsh. Under the rules, landlords would be dinged for how their power is generated, which for New York City buildings is largely by fossil fuels.
And owners could still get face hefty fines even after improvements to their buildings. According to the study commissioned by the real estate trade group, if every building were to cut its energy consumption 30% by 2030, more than 8,000 properties would still face $300 million in penalties a year.