In New York City, energy efficiency isn’t just a goal—it’s a legal requirement. Local Law 84 (LL84), enacted under the city’s Greener, Greater Buildings Plan, requires owners of large buildings to report their energy and water consumption annually. This law is a cornerstone of NYC’s strategy to reduce greenhouse gas emissions and build a more sustainable urban environment.
For property owners, developers, and building managers, understanding and complying with LL84 is vital—not only to avoid penalties but also to uncover cost-saving opportunities through energy optimization.
Demystifying Energy Benchmarking in NYC
Energy benchmarking refers to the process of measuring and tracking a building’s energy and water usage over time, then comparing it to similar properties. This data-driven approach helps identify inefficiencies, prioritize retrofits, and improve building performance.
In New York City, LL84 mandates annual benchmarking for certain building types, using the EPA’s Energy Star Portfolio Manager®. This platform allows building owners to input utility data, generate performance metrics, and submit benchmarking reports directly to the Department of Buildings (DOB).
Navigating NYC’s Regulatory Landscape
Local Law 84 is supported and enforced by several other laws and regulations, including Local Law 133 (which lowered the reporting threshold), Local Law 87 (energy audits and retro-commissioning), and Local Law 97 (carbon emissions limits). Here’s a breakdown of LL84’s main criteria:
- Buildings exceeding 25,000 gross square feet
Owners of individual buildings that are 25,000 square feet or larger must submit annual energy and water usage reports. - Multiple buildings on the same tax lot totaling 100,000 square feet or more
If multiple buildings share a tax lot and collectively exceed 100,000 square feet, the entire lot is subject to LL84 compliance. - Condominium buildings governed by the same board and exceeding 100,000 square feet collectively
Even if each condo building is under 25,000 square feet, LL84 applies if their combined area exceeds the threshold and they share a managing board. - City-owned buildings over 10,000 square feet
Government buildings also fall under LL84, emphasizing the city’s leadership in sustainability.
All required data must be submitted by May 1st each year through the Energy Star Portfolio Manager. Failing to meet this deadline results in fines that can accumulate up to $2,000 annually per property.
View official benchmarking rules from the NYC DOB
Common Challenges in Compliance
Although LL84 is straightforward in theory, many building owners encounter practical challenges in execution. Common hurdles include:
- Data Collection Difficulties
Gathering accurate utility data across multiple tenants or meters can be difficult. Some tenants may not be cooperative, or meters may not be clearly assigned, complicating the process. - Technical Barriers to Software Use
The Energy Star Portfolio Manager, while robust, can be intimidating for users without a background in data management or energy systems. Mistakes in entry or misaligned data formats are common. - Lack of Awareness or Training
Some property managers may not even be aware of the requirements until they receive a violation notice. Others may lack the training to fulfill requirements correctly and on time. - Limited Internal Resources
Smaller property owners or independent managers may not have the staff or technical expertise to dedicate to energy benchmarking, making compliance seem burdensome. - Changing Regulations
As NYC updates its energy laws to align with Local Law 97’s climate goals, LL84 requirements may evolve, leading to confusion and the need for continuous education.
Best Practices for Ensuring Compliance
Staying ahead of LL84 doesn’t have to be difficult if the right practices are in place:
- Start Early in the Reporting Cycle
Begin gathering utility data as early as possible in Q1. This buffer allows time to resolve missing or inconsistent data and avoid last-minute stress. - Communicate With Tenants
Send early notices to tenants reminding them of their obligation to share utility data. Consider including it in lease agreements to streamline future compliance. - Automate Data Collection When Possible
Many utility companies offer data integration with Portfolio Manager. Enabling this feature can reduce human error and administrative overhead. - Conduct Internal Audits
Before submission, review your data with internal teams or consultants to catch discrepancies. Errors in data reporting can lead to violations even if you submit on time. - Work With Experts in Building Compliance
Professionals like VetraCheck stay up to date on evolving regulations and help ensure that your building’s reports are accurate and timely.
How VetraCheck Simplifies Compliance
VetraCheck is New York City’s trusted partner for building compliance. Our specialized LL84 services remove the guesswork and administrative burden from your team. Here’s how we help:
- Comprehensive Property Assessments
We evaluate your utility infrastructure and metering systems to ensure complete and accurate data collection from every relevant source. - Utility Data Aggregation and Submission
VetraCheck handles the entire data entry and submission process using Energy Star Portfolio Manager, eliminating risk of user error or late filing. - Tenant Engagement Programs
We provide communication templates and outreach strategies to help you secure timely data from commercial or residential tenants. - Staff Training and Onboarding
If you want to manage compliance in-house long-term, we offer training programs to educate your property managers on LL84 requirements and tools. - Ongoing Regulatory Monitoring
Our team keeps track of regulatory updates and notifies you of any changes that may affect your compliance obligations, giving you peace of mind year-round.
Real-World Application: A Case Study
Property Type: 30,000-square-foot mixed-use building in Midtown Manhattan
Problem: Inconsistent tenant energy data, missed prior LL84 deadlines, multiple violations on record
Solution: The property team partnered with VetraCheck for a full compliance reset. We performed an initial utility audit, enrolled the building in automated data feeds from Con Edison, and submitted a corrected benchmarking report through Portfolio Manager. We also trained staff to maintain compliance going forward.
Outcome: No violations in the following two years, energy savings of 7% realized through performance comparisons, and improved tenant cooperation.
Frequently Asked Questions
What is the penalty for not complying with LL84?
A fine of $500 is issued for each quarter a report is late, up to $2,000 per year per building.
What’s the difference between LL84 and LL97?
LL84 is about reporting energy and water usage, while LL97 sets carbon emissions limits for buildings. LL84 data often informs LL97 strategies.
Does my building need to comply if it’s under 25,000 square feet?
Generally no, unless your building is part of a tax lot or condo grouping that exceeds the threshold collectively.
Can VetraCheck assist with multiple buildings under one ownership?
Absolutely. We specialize in portfolio-level compliance strategies and can centralize reporting for all properties under your ownership.
Take the Next Step Toward Energy Compliance
Local Law 84 isn’t just a reporting requirement—it’s an opportunity to improve building performance, reduce utility costs, and prepare for future environmental regulations. VetraCheck’s expert team makes it easy to stay compliant and optimize your building’s operations.
Don’t wait until May 1st—partner with VetraCheck today to streamline your energy benchmarking and secure your building’s compliance.
