NYC's Benchmarking Law Encourages Energy Conservation and Promotes High-Performing Buildings

New York City continues to lead the way in sustainable urban development with regulations designed to reduce energy consumption and promote environmental accountability. At the forefront of this effort is Local Law 84 (LL84), part of the city’s Greener, Greater Buildings Plan (GGBP). This initiative targets energy efficiency in large, existing buildings across the five boroughs.

What Is Local Law 84?

Commonly referred to as the Benchmarking Law, LL84 requires owners of large buildings to annually track and report their energy and water usage. This data must be submitted by May 1 of each year through the Environmental Protection Agency’s (EPA) Portfolio Manager platform. The platform allows for standardized comparisons between buildings based on occupancy type and size.

Who Needs to Comply?

The law applies to:

• Buildings that are 25,000 square feet or larger

• Multiple buildings on a single lot that together exceed 100,000 square feet

To determine if a property falls under LL84, building owners can reference the LL84 Covered Building List published by the City.

What Are the Consequences of Noncompliance?

Failure to submit benchmarking data by the annual deadline may result in financial penalties, reinforcing the city's commitment to transparency and energy accountability.

Local Law 33: Making Energy Efficiency Public

In conjunction with LL84, Local Law 33 (LL33) requires building owners to publicly display Building Energy Efficiency Rating labels. These ratings, which include a 1–100 ENERGY STAR® score and a corresponding letter grade (A–D), are calculated from the data submitted through the EPA Portfolio Manager.

By displaying these grades, the city provides tenants, prospective buyers, and the general public with a clear view of a building's energy performance. This visibility not only fosters accountability but also encourages investment in energy efficiency upgrades, as higher-performing buildings are rewarded with better scores and reputations.

Driving the Market Toward Energy Efficiency

Together, LL84 and LL33 are transforming New York City's real estate landscape by equipping stakeholders with crucial insights into building performance. These laws are paving the way toward a future where energy-efficient, high-performing buildings become the standard—not the exception.

As the market adapts, building owners and managers who prioritize sustainability will benefit the most, positioning their properties for long-term success and regulatory compliance.