New York City is driving a climate-conscious future with bold regulatory frameworks that make sustainability a top priority in the built environment. One of the most visible and impactful mandates is Local Law 33, which requires large buildings to publicly display energy efficiency grades—similar to restaurant letter grades. This initiative, aimed at promoting transparency and performance, directly affects thousands of property owners and managers across the five boroughs.
With NYC committing to reducing carbon emissions by 80% by 2050 under the OneNYC plan, laws like LL33 not only enforce compliance—they actively shape the behavior of developers, engineers, and building operators.
Cutting Through the Regulation
Local Law 33 and Its Amendments Explained
Local Law 33, originally passed in 2018 and later updated by Local Law 95 of 2019, requires the following from building owners:
- Annual Benchmarking Using Energy Star Portfolio Manager
Owners of buildings larger than 25,000 square feet must report annual energy and water usage through the U.S. EPA’s Energy Star tool. This creates a standardized performance baseline that allows fair comparison among similar building types. - Letter Grade Based on Energy Score
Each building is issued a grade from A to D (or F for non-compliance and N for exemptions) derived from the building’s 1–100 Energy Star score:- A (85–100): Top-tier performance. Your building is in the highest percentile of energy efficiency.
- B (70–84): Above-average performance. Room for improvement, but generally efficient.
- C (55–69): Below average. Indicates significant opportunities for upgrades.
- D (<55): Poor energy performance. Immediate intervention likely needed.
- F: Failure to submit benchmarking information results in automatic lowest grade.
- N: Buildings that are exempt or cannot be scored (e.g., unique building types without EPA baselines).
- Mandatory Posting by October 31
The grade must be printed on an official DOB-issued label and posted clearly near every building entrance. Failure to post results in a $1,250 fine.
Related Laws You Should Know
Local Law 33 doesn’t stand alone. It’s part of a larger package of sustainability legislation that includes:
- Local Law 84
Requires annual benchmarking for buildings, forming the backbone of the data LL33 uses. Non-compliance here affects your energy grade. - Local Law 87
Demands periodic energy audits and retro-commissioning for buildings over 50,000 square feet. It ensures systems are performing optimally and efficiently. - Local Law 97
Sets strict carbon emission caps starting in 2024 for buildings over 25,000 square feet, with significant financial penalties for non-compliance.
Together, these laws increase accountability while pushing owners toward sustainable building practices.
What Building Owners and Engineers Struggle With
Common Pitfalls in LL33 Compliance
- Incomplete or Inaccurate Data Submissions
Many owners underestimate how critical detailed utility data is. Inaccurate tenant submeters, missing water usage reports, or errors in Portfolio Manager can drastically lower your building’s score. - Poor Understanding of the Energy Star Score
The 1–100 score is based on normalized metrics considering occupancy, usage type, and square footage. Without expert analysis, many owners don’t understand why their efficient-looking building scored a ‘C’. - Outdated Building Systems
Even when owners think they’re operating efficiently, older HVAC units, poor insulation, or lack of automation can significantly drag scores down. - Lack of Clear Accountability
In multi-tenant or mixed-use buildings, no one person may be fully responsible for tracking energy use and reporting. This leads to oversights and possible fines.
How to Comply and Succeed
Best Practices to Boost Your Building Energy Score
- Establish Reliable Benchmarking Systems
Set calendar reminders and designate responsibility to a building manager or consultant to handle Energy Star submissions before the May 1st deadline every year. Use utility APIs or automation platforms to streamline data collection. - Schedule Proactive Energy Audits
Even if not yet required under Local Law 87, audits can help identify low-cost improvements like LED lighting upgrades, thermostat programming, or operational tweaks that significantly improve your energy score. - Retro-Commission Building Systems
Periodically inspect and fine-tune HVAC systems, BMS software, and insulation to ensure everything operates at peak efficiency. Retro-commissioning often uncovers invisible inefficiencies. - Involve Tenants in Energy Goals
Share building energy reports with tenants and create incentives for low usage. For instance, offer common area display dashboards or promote eco-friendly behaviors. - Post Grades Promptly and Correctly
Make sure to download the official energy label from the DOB Energy Grade Portal and display it at every entrance by October 31 to avoid fines and negative public perception.
How VetraCheck Simplifies LL33 Compliance
At VetraCheck, we understand that LL33 and other compliance requirements can be burdensome—especially when you’re managing multiple properties or navigating technical systems.
Here’s how we help:
- Turnkey Benchmarking Services
We handle every step of the benchmarking process—from collecting data to submitting it in Portfolio Manager—ensuring 100% accuracy and on-time compliance. - Comprehensive Energy Audits
Our engineers conduct in-depth inspections that go beyond code requirements. We identify actionable items to help you move from a ‘C’ to an ‘A’. - Compliance Documentation and Label Management
We track key deadlines and ensure your LL33 label is correctly formatted, printed, and posted—on time, every time. - Customized Upgrade Roadmaps
Our energy experts design strategic upgrade plans based on ROI and LL97 readiness. We prioritize improvements that boost your grade and lower emissions. - Tenant-Facing Sustainability Programs
We create engagement plans that help building residents and tenants understand how their actions impact building performance—supporting you in long-term energy savings.
With VetraCheck, compliance doesn’t have to be a headache. We give you the confidence and tools to stay ahead of regulations—and the competition.
Real-World Success Stories
Case Example: Office Building in Downtown Brooklyn
A 32,000-square-foot office building was stuck with a low ‘C’ grade despite relatively new HVAC systems. VetraCheck identified that poor occupancy settings in the BMS and old fluorescent lighting were draining efficiency. After implementing targeted retrofits and controls optimization, the building improved to a ‘B’ within one reporting cycle.
Case Example: Mixed-Use Residential in Upper Manhattan
A multi-use building struggled to compile whole-building energy data due to residential and commercial tenant complexity. VetraCheck installed cost-effective submeters and worked with each tenant on data-sharing agreements. As a result, the building achieved full LL33 compliance and improved its transparency with a new ‘A’ rating proudly posted at every entrance.
Frequently Asked Questions
What buildings must comply with LL33?
All NYC buildings over 25,000 square feet, including commercial, residential, and institutional properties, must benchmark and display energy grades.
When do I need to display my energy label?
Each year, building owners must download and post the new energy efficiency grade by October 31.
What if my building receives an ‘F’?
An ‘F’ means you failed to submit benchmarking data and can be fined. VetraCheck can help you gather the required data and appeal or correct submissions if necessary.
Can my grade improve over time?
Yes! Your score is recalculated annually based on new usage data. Smart upgrades and better data accuracy can result in higher grades within a year.
What if my building is exempt?
Some buildings (e.g., very unique types not modeled by Energy Star) may receive an ‘N’ grade. VetraCheck helps determine your eligibility and handles exemption filings if needed.
Local Law 33: Know What To Do
Local Law 33 is more than just a display requirement—it’s a public-facing indicator of your building’s environmental performance and operational excellence. Understanding how your energy grade is calculated and taking strategic action to improve it is crucial for maintaining property value, reducing emissions, and avoiding penalties.
VetraCheck is here to be your partner in achieving compliance, boosting efficiency, and earning top energy scores. Our team of experts is just a consultation away.
Don’t wait for your next grade to cost you—reach out to VetraCheck today and take control of your building’s energy performance.
