New York City’s aggressive push toward sustainability has led to sweeping legislation for the building sector, with Local Law 87 (LL87) playing a pivotal role. LL87 is a cornerstone of NYC’s Greener, Greater Buildings Plan, mandating energy audits and retro-commissioning for large buildings to ensure optimal energy efficiency. As part of the broader effort to reduce the city’s carbon footprint, this law targets inefficient building systems and pushes property owners toward better operational performance.
For property managers, engineers, owners, and developers, understanding and complying with Local Law 87 NYC is not just a legal requirement—it’s a financial and environmental imperative. This comprehensive guide explains the core requirements, regulatory background, common challenges, and how VetraCheck can help you stay compliant and save energy costs.
Making Sense of Local Law 87 and What It Requires
Local Law 87 applies to buildings in New York City that are:
- 50,000 gross square feet or larger, or
- Multiple buildings on a single lot that together exceed 100,000 gross square feet
The law requires an Energy Efficiency Report (EER) to be submitted once every ten years. This report must contain:
- Energy Audit:
A professional assessment of your building’s energy-consuming systems—including HVAC, lighting, elevators, and domestic hot water. The goal is to uncover inefficiencies and recommend specific upgrades or operational improvements. These audits are conducted in accordance with ASHRAE Level II standards, ensuring a high level of technical scrutiny. - Retro-Commissioning (RCx):
Unlike energy audits, which focus on identifying potential upgrades, retro-commissioning verifies that your existing systems are functioning as designed. This includes testing and calibrating HVAC systems, checking control sequences, verifying setpoints, and fixing faulty equipment. It’s a hands-on performance optimization process. - Energy Efficiency Report (EER):
A consolidated document that includes the audit findings, RCx results, and a signed statement of compliance by a registered professional (either a Professional Engineer or a Registered Architect). This report must be filed electronically with the NYC Department of Buildings (DOB).
The due date is based on the last digit of the building’s tax block number. For instance, if the number ends in “3”, the EER must be submitted by December 31, 2023.
Understanding How LL87 Fits into the NYC Compliance Puzzle
Local Law 87 NYC doesn’t stand alone. It works in concert with other key local laws to elevate the energy performance of NYC’s building stock:
- Local Law 84 (Benchmarking):
Requires annual submission of building energy and water usage data to the city. LL84 serves as the baseline data for determining where improvements are needed. - Local Law 33 (Energy Grades):
Publicly discloses a building’s energy efficiency performance by assigning an energy letter grade (A–F), derived from LL84 benchmarking data. Poor grades can negatively impact tenant perceptions and marketability. - Local Law 97 (Carbon Emissions Cap):
Sets carbon caps for buildings over 25,000 square feet, beginning in 2024. LL87 plays a supporting role by helping buildings optimize energy usage and reduce emissions to stay within the LL97 thresholds.
Each of these laws has different reporting schedules, metrics, and scopes, but LL87 directly contributes to achieving compliance with the rest by reducing energy waste at the system level.
Common Hurdles in Complying with Local Law 87 NYC
Many property owners underestimate what’s involved in complying with LL87. Here are some challenges commonly faced:
- Determining Applicability:
Understanding whether your building is subject to LL87 requires careful examination of property records, zoning classifications, and lot configurations. Misinterpretation can lead to missed deadlines and violations. - Coordinating Multiple Contractors and Schedules:
Energy audits and retro-commissioning can take months. It often involves mechanical contractors, HVAC specialists, lighting consultants, and data analysts working in sync. Coordinating all these moving parts while keeping tenants undisturbed is a logistical challenge. - Gathering Historical and Operational Data:
The EER process demands historical energy bills, maintenance logs, equipment specs, and control system documentation. Many buildings don’t have proper documentation in place, delaying the process. - Interpreting the Audit Results:
Audit reports contain technical recommendations that may require major capital investments. Without expert guidance, building owners may struggle to prioritize improvements or estimate ROI. - Managing Retro-Commissioning Tasks:
RCx isn’t just paperwork—it involves physically testing systems, calibrating controls, and resolving issues. These activities may reveal deficiencies that require quick fixes to avoid compliance issues. - Meeting Submission Deadlines:
Failure to submit your EER by the due date will result in a Class 2 violation and a fine of $3,000 for the first year, and $5,000 for each subsequent year of non-compliance.
Smart Strategies to Ensure LL87 Compliance and Maximize ROI
Compliance doesn’t have to be a headache. Here’s how to stay ahead of the curve:
- Start Early—12 to 18 Months in Advance:
The energy audit and RCx process can take several months, especially for complex buildings. Starting early gives you time to resolve issues and make low-cost improvements before the filing deadline. - Hire Qualified Professionals:
Only licensed engineers or architects can sign off on EERs. Work with certified energy professionals familiar with the NYC DOB portal, filing protocols, and technical documentation standards. - Prioritize “Low-Hanging Fruit”:
Audit reports often identify no- or low-cost savings opportunities like optimizing HVAC schedules, adjusting thermostat setpoints, or upgrading lighting to LEDs. Implementing these can yield fast returns and boost your Energy Grade. - Maintain Thorough Documentation:
Keep digital and physical records of equipment tune-ups, BMS calibration, and control updates. These documents support RCx and are vital for future audits and compliance inspections. - Integrate with Your Capital Plan:
Align LL87 compliance efforts with planned capital improvements or Local Law 97 emissions reductions to avoid redundant work and maximize cost-effectiveness.
How VetraCheck Delivers LL87 Compliance with Confidence
VetraCheck provides a turnkey compliance solution for Local Law 87 NYC. We handle the full lifecycle of compliance so you can focus on operating your building. Our services include:
- Site Analysis and Compliance Scheduling:
We begin by confirming whether your property is on the Covered Buildings List, determine your EER due date, and build a custom timeline to avoid last-minute scrambles. - Comprehensive ASHRAE Level II Energy Audits:
Our licensed engineers conduct in-depth evaluations of your energy-consuming systems and recommend actionable improvements with real payback estimates. - Hands-On Retro-Commissioning:
We verify system functionality and correct inefficiencies in HVAC, controls, and domestic hot water systems. Our technicians document all tasks and generate DOB-compliant RCx reports. - Energy Efficiency Report (EER) Filing:
We prepare, review, and electronically file your EER through the DOB’s online portal, ensuring all documentation is accurate and timely. - Ongoing Monitoring and Future Readiness:
VetraCheck maintains records, advises on LL97 readiness, and ensures your building stays compliant across NYC’s evolving energy code landscape.
Real-World Example of LL87 in Action
Case Study: Bringing a 75,000-Square-Foot Medical Facility into Compliance
A healthcare building in Queens was nearing its LL87 deadline and had never performed a comprehensive energy audit. VetraCheck initiated a full ASHRAE Level II audit, uncovering outdated air handling systems and inefficient lighting. The retro-commissioning revealed setpoint mismatches and uncalibrated controls. After implementing corrections and modest retrofits, the facility reduced energy usage by 18%, avoided over $30,000 in potential fines, and saw immediate utility savings.
Frequently Asked Questions about Local Law 87 NYC
Q: What systems are included in the energy audit requirements under LL87?
A: The audit must assess base building systems such as HVAC, electrical and lighting systems, elevators, and domestic hot water systems. Tenant spaces are not typically included unless they influence the base systems.
Q: Can I combine LL87 compliance with Local Law 97 planning?
A: Yes. Energy audits often highlight carbon-intensive equipment that also affects your LL97 emissions cap. Bundling compliance efforts with emissions planning is both strategic and cost-efficient.
Q: What if I made major upgrades recently—do I still need to do an audit?
A: If your building underwent substantial renovation or system upgrades within a specific look-back period, you may qualify for a prescriptive exemption from certain LL87 requirements. VetraCheck can help evaluate and apply for these exemptions.
Q: Who can perform retro-commissioning under LL87?
A: Only qualified professionals with experience in HVAC testing and building controls should perform RCx tasks. The final report must be signed off by a licensed PE or RA.
Local Law 87: Compliance is a MUST
Compliance with Local Law 87 is more than just a bureaucratic hurdle—it’s an opportunity to improve your building’s operational efficiency, reduce costs, and future-proof against tightening NYC sustainability laws. With the proper planning and the right partner, you can turn LL87 into a competitive advantage.
Ready to meet your LL87 requirements with confidence? Contact VetraCheck today to get started with a free consultation and customized compliance plan. Let’s optimize your energy performance and keep your property on the right side of NYC regulations.
