New York City has implemented stringent energy efficiency regulations to reduce greenhouse gas emissions and promote sustainable building practices. Two pivotal laws in this initiative are Local Law 84 (LL84) and Local Law 87 (LL87), which mandate energy benchmarking and periodic energy audits with retro-commissioning, respectively. These laws are integral components of the city’s Greener, Greater Buildings Plan (GGBP), targeting the city’s largest buildings to enhance energy performance and transparency.
Overview of Local Law 84 and Local Law 87
Local Law 84 NYC – Energy Benchmarking
Enacted in 2009, LL84 requires owners of large buildings to annually measure and report their energy and water consumption. This benchmarking process uses the U.S. Environmental Protection Agency’s Energy Star Portfolio Manager® to provide a consistent, comparative framework. The law aims to promote data-driven decision-making and long-term sustainability upgrades by offering public visibility into building performance.
Local Law 87 NYC – Energy Audits and Retro-Commissioning
Local Law 87, also part of the GGBP, mandates that buildings over 50,000 square feet undergo energy audits and retro-commissioning once every ten years. An energy audit identifies where energy is being wasted, while retro-commissioning ensures existing equipment and systems are operating efficiently. Compliance is demonstrated through an Energy Efficiency Report (EER) submitted to the NYC DOB.
Regulatory Requirements and Compliance
LL84 Compliance Details
- Covered Buildings
Buildings over 25,000 gross square feet, or groups of buildings on the same tax lot exceeding 100,000 gross square feet, must comply with LL84. This includes both commercial and residential properties, such as co-ops and condos. Owners must verify if their property is listed in the NYC Covered Buildings List published annually. - Reporting Deadline
Energy and water usage data must be submitted by May 1 each year to avoid penalties. Missing this deadline results in automatic fines and could affect a building’s reputation and valuation. - Reporting Tool
The Energy Star Portfolio Manager® is the official tool designated for benchmarking. Owners must input data such as square footage, occupancy rates, utility usage, and fuel sources to generate a 1–100 energy performance score. - Public Disclosure
Benchmarking scores are made public through NYC Open Data. Poor energy scores can affect tenant perception, leasing competitiveness, and compliance credibility, while high scores can help attract environmentally conscious tenants and investors.
LL87 Compliance Details
- Covered Buildings
LL87 applies to buildings greater than 50,000 gross square feet. The compliance year is determined by the last digit of the building’s tax block number (e.g., buildings with a tax block ending in 5 were due in 2015, and again in 2025). - Compliance Cycle
Once every ten years, building owners must complete both an energy audit and a retro-commissioning process. The goal is to identify inefficiencies and ensure all systems — from HVAC to lighting controls — are functioning optimally. - Energy Efficiency Report (EER)
The EER is submitted to the NYC DOB and must include:- The results of the ASHRAE Level II energy audit
- Documentation of completed retro-commissioning measures
- Certification by a qualified energy professional
- Exemptions
Buildings with a LEED® certification or those that have conducted equivalent retro-commissioning within the last four years may qualify for exemptions. However, these require formal documentation and DOB approval.
Common Challenges in Compliance
- Data Collection Difficulties
Obtaining full energy and water usage data can be complex, especially in multi-tenant buildings. Tenant utility accounts are often separate, requiring consent and coordination that many owners underestimate in scope and time. - Technical Expertise
LL87’s requirements demand professionals with deep knowledge of building systems, ASHRAE protocols, and NYC DOB documentation. DIY approaches often result in errors or rejected reports. - Regulatory Understanding
Keeping up with DOB updates, interpretation bulletins, and shifting requirements can overwhelm property teams. Misunderstanding even one clause can lead to unnecessary fines or missed exemptions. - Resource Allocation
Energy audits and retro-commissioning can incur upfront costs, especially for older buildings with deferred maintenance. Budgeting and scheduling these activities early can prevent financial strain close to compliance deadlines.
Best Practices for Achieving Compliance
- Engage Qualified Professionals
Work with DOB-approved providers who specialize in NYC compliance. Qualified Energy Auditors and Retro-Commissioning Agents ensure all requirements are met and documented accurately to avoid DOB rejections. - Implement Robust Data Management Systems
Adopt utility tracking tools that integrate with Portfolio Manager and automate data feeds. This minimizes manual errors and supports long-term energy performance monitoring. - Conduct Regular Maintenance
Ongoing maintenance not only extends equipment life but ensures LL87 retro-commissioning tasks are less intensive and costly when the compliance year arrives. - Stay Informed
Subscribe to DOB service updates, attend local energy compliance workshops, and partner with compliance advisors like VetraCheck to stay ahead of changing requirements and deadlines.
How VetraCheck Ensures Compliance and Efficiency
VetraCheck specializes in guiding NYC building owners through the complexities of LL84 and LL87 compliance. Our all-in-one support includes:
- Expert Auditing and Retro-Commissioning
Our certified energy professionals conduct ASHRAE Level II audits and develop custom retro-commissioning plans. From boiler optimization to lighting controls, we identify practical, cost-effective upgrades. - Data Management Support
VetraCheck handles everything from utility data gathering to Portfolio Manager uploads and submission tracking, ensuring nothing is missed come May 1 or December 31. - Regulatory Guidance
We offer full-spectrum compliance advice and ongoing support. We also review exemption opportunities and handle DOB communications on your behalf. - Customized Solutions
Whether your building is a mid-rise residential or a Class A commercial tower, we tailor strategies to improve energy scores, reduce carbon emissions, and prepare for upcoming regulations like Local Law 97.
Real-World Application: A Case Study
A 60,000-square-foot commercial building in Midtown Manhattan was due for LL87 compliance in 2024. The building’s management hired VetraCheck to lead the energy audit and retro-commissioning process. We discovered inefficiencies in the HVAC scheduling and a lack of demand-control ventilation. After implementing low-cost improvements and controls upgrades, the building’s energy use intensity (EUI) dropped by 18%, significantly reducing energy bills and ensuring full DOB compliance without penalties.
Frequently Asked Questions
What is the penalty for non-compliance with LL84 or LL87?
Fines for LL84 start at $500 per quarter for each missed submission. For LL87, owners may face fines of $3,000 for the first missed filing and $5,000 for subsequent years of non-compliance.
Are residential buildings required to comply with LL84 and LL87?
Yes, residential buildings over the square footage thresholds are required to comply unless specifically exempted. This includes co-op and condo buildings, which are often unaware they fall under the covered buildings list.
Do I need to hire a licensed professional to file the reports?
Yes. For LL87, the Energy Efficiency Report must be certified by a Qualified Energy Professional listed with the DOB. For LL84, while the owner is responsible, many use third-party consultants like VetraCheck to ensure accurate benchmarking.
What systems are reviewed during an energy audit and retro-commissioning?
Audits and RCx evaluate HVAC, domestic hot water systems, lighting, electrical distribution, envelope insulation, ventilation, and building automation controls — essentially all energy-using systems.
Partner with VetraCheck for Compliance Success
Compliance with Local Law 84 and Local Law 87 is not only mandatory but also an opportunity to reduce operating costs, improve tenant satisfaction, and prepare for stricter regulations like Local Law 97. With VetraCheck, you gain a partner who simplifies the entire process — from utility data to DOB filings — with unmatched expertise in NYC’s energy compliance landscape. Contact us today to secure your building’s compliance and future-proof its performance.
