Local Law 33 and Energy Grades NYC: What They Mean for You
Understanding NYC's Local Law 33 energy efficiency requirements and building energy grades, and how they impact your building's compliance and value.
Key Takeaway
Local Law 33 requires buildings over 25,000 sq ft to publicly display energy efficiency grades, promoting transparency and encouraging energy improvements.
What is Local Law 33?
Local Law 33, enacted as part of NYC's Climate Mobilization Act, requires buildings over 25,000 square feet to publicly display their energy efficiency grades. This law works in conjunction with Local Law 97's emissions limits to create a comprehensive approach to building energy performance.
The law aims to increase transparency about building energy performance and encourage property owners to invest in energy efficiency improvements.
Understanding Energy Grades
NYC's energy grading system assigns letter grades (A through F) based on a building's Energy Use Intensity (EUI) compared to similar buildings. The grades are calculated using data from Local Law 97 benchmarking reports.
Grade A
Excellent Energy Performance
Buildings in the top 10% for energy efficiency in their category. These buildings use significantly less energy than similar properties.
Grade F
Poor Energy Performance
Buildings in the bottom 20% for energy efficiency. These properties use significantly more energy than similar buildings.
Grade Distribution
Top 10%
Next 15%
Next 20%
Next 35%
Bottom 20%
No Grade
Display Requirements
Who Must Display Grades
- Buildings over 25,000 square feet
- Buildings required to benchmark under Local Law 97
- Mixed-use buildings where the covered building area exceeds 25,000 sq ft
Display Specifications
Sign Requirements:
- • Minimum 12" x 9" size
- • Must be visible from the public right-of-way
- • Posted within 10 feet of the primary entrance
- • Updated annually by October 1st
- • Must include the building's energy grade and year
Impact on Building Value and Marketability
Positive Impacts
- • Higher grades can increase property value
- • Attract environmentally conscious tenants
- • Demonstrate commitment to sustainability
- • Potential for lower operating costs
Challenges
- • Poor grades may deter potential tenants
- • Public display of energy inefficiency
- • Pressure to invest in improvements
- • Potential impact on refinancing
Improving Your Energy Grade
Common Improvement Strategies
HVAC System Upgrades
Modernizing heating, ventilation, and air conditioning systems can significantly reduce energy consumption.
Building Envelope Improvements
Upgrading windows, insulation, and facade elements can reduce energy loss and improve efficiency.
Lighting and Controls
LED lighting and smart building controls can reduce energy usage while improving occupant comfort.
Renewable Energy
Solar panels and other renewable energy sources can offset building energy consumption.
Compliance and Penalties
Penalty Structure
- • Failure to post grade: $1,250 per quarter
- • Posting incorrect information: $1,250 per quarter
- • Late posting: $1,250 per quarter until corrected
How VetraCheck Can Help
While VetraCheck specializes in facade inspections and Local Law 126 compliance, we understand that building performance is interconnected. Our facade improvements can contribute to better energy efficiency by:
- Improving building envelope performance through proper facade maintenance
- Identifying and addressing air leakage issues during inspections
- Recommending facade upgrades that enhance energy efficiency
- Coordinating with energy consultants for comprehensive building improvements
Improve Your Building's Performance
Start with a comprehensive facade inspection to identify opportunities for energy efficiency improvements.
Looking Ahead
As NYC continues to implement its climate goals, energy efficiency will become increasingly important for building owners. Understanding and complying with Local Law 33 is just the beginning of a broader shift toward sustainable building operations.
By taking proactive steps to improve energy performance, building owners can not only comply with current regulations but also position their properties for future requirements and market demands.