How Local Law 84 Helps Building Owners Save on Energy Costs
Learn how NYC Local Law 84 helps building owners reduce energy bills, avoid penalties, and improve efficiency through annual benchmarking. Discover benefits, compliance tips, and expert guidance.
New York City is known for its towering skyscrapers, bustling business districts, and a deep commitment to environmental sustainability. One of the key regulations driving energy efficiency in the city is Local Law 84 (LL84). If you’re a building owner in NYC, understanding LL84 can be the first step in saving big on energy bills while complying with city law.
This article explains what Local Law 84 is, how it works, and—most importantly—how it helps you reduce energy costs and increase your property’s value.
What Is Local Law 84?
Local Law 84, part of New York City’s Greener, Greater Buildings Plan (GGBP), requires large buildings to track and report their yearly energy and water consumption. The goal is to improve building performance and reduce the city’s greenhouse gas emissions.
Who Needs to Comply?
As of 2024, the law applies to:
- Residential and commercial buildings over 25,000 square feet
- Multiple buildings on the same tax lot that total over 100,000 square feet
- Condos with combined square footage of over 100,000 square feet
Building owners must submit benchmarking reports each year through ENERGY STAR Portfolio Manager, a free online tool from the U.S. EPA.
How Benchmarking Leads to Energy Savings
You might wonder—how does simply reporting energy use actually save you money?
The answer lies in awareness and action. LL84 forces building owners to examine their energy habits and identify inefficiencies. Once building performance is measured, owners can take action to improve it.
Here are the specific ways LL84 helps reduce energy costs:
1. Provides a Clear Energy Use Baseline
Benchmarking gives you a clear snapshot of your building’s energy consumption over time. By comparing your usage year over year or with similar buildings in your area, you can:
- Identify unexpected spikes in energy use
- Pinpoint inefficient systems
- Track improvements after upgrades
Example: If your energy bill suddenly rises in the winter months, LL84 data may reveal outdated heating systems or poor insulation causing heat loss.
2. Encourages Cost-Effective Upgrades
Once inefficiencies are found, you can invest in energy-saving improvements. Many of these upgrades—like LED lighting, smart thermostats, or insulation improvements—pay for themselves quickly through reduced energy bills.
Data-backed decisions also make it easier to prioritize which upgrades offer the highest return on investment.
3. Increases Access to Incentives and Rebates
Benchmarking data can make your building eligible for energy efficiency programs offered by:
- Con Edison
- NYSERDA (New York State Energy Research and Development Authority)
- Federal tax incentives
These rebates often cover a large portion of upgrade costs—sometimes up to 70%—making your path to savings even easier.
4. Improves Tenant Satisfaction and Retention
Today’s tenants want eco-friendly and energy-efficient buildings. A well-benchmarked, energy-optimized building leads to:
- Lower utility bills for tenants
- Better indoor air quality
- Consistent heating and cooling performance
This makes tenants more likely to renew leases, reducing costly vacancies.
5. Boosts Property Value and Marketability
Properties that comply with LL84—and take energy performance seriously—stand out in NYC’s competitive real estate market. Energy-efficient buildings:
- Sell faster
- Attract higher rents
- Retain value longer
Having solid benchmarking reports and a high ENERGY STAR score can be a selling point for buyers and investors.
6. Avoids Costly Fines
Compliance with LL84 is mandatory, and failing to file benchmarking reports can lead to fines of $500 per quarter, up to $2,000 per year. Staying compliant saves you from unnecessary penalties that eat into your operating budget.
7. Supports Long-Term Local Law 97 Goals
LL84 is more than just a standalone regulation—it’s a foundational step for complying with Local Law 97, which sets strict greenhouse gas emissions limits starting in 2024. Benchmarking helps building owners:
- Track emissions
- Set reduction goals
- Avoid future carbon penalties under LL97 NYC
In short, LL84 prepares you for the future of sustainable building management.
Key Deadlines and Steps to Stay Compliant
Here’s what building owners should keep in mind:
Annual Benchmarking Deadline:
May 1st every year
How to Comply:
- Collect whole-building energy and water data
- Use ENERGY STAR Portfolio Manager
- Submit benchmarking report to NYC’s Department of Buildings (DOB)
Need help? Many owners choose to work with a Local Law 84 Consultant Service to ensure error-free and timely compliance.
The Role of a Local Law 84 Consultant Service
Working with a consultant can save you time, stress, and even money. A qualified LL84 consultant can:
- Gather and validate your utility data
- Set up and manage your ENERGY STAR Portfolio Manager account
- Submit reports on your behalf
- Provide actionable insights for reducing energy usage
Hiring an expert is especially helpful if you manage multiple properties or complex building systems.
Common NYC Local Law 84 FAQs
What happens if I miss the LL84 deadline?
You’ll receive a violation and a $500 fine for each quarter you're late. You may still be required to submit the report after the deadline.
Do I need to benchmark water usage too?
Yes. LL84 requires water benchmarking for covered buildings that are equipped with automatic meter readers.
Is benchmarking a one-time task?
No. LL84 requires annual submission of benchmarking data to track changes and improvements.
Final Thoughts: LL84 Is a Path to Profit, Not Just a Regulation
Local Law 84 is not just another compliance requirement—it’s a tool that empowers building owners to understand their energy use and reduce operating costs.
By benchmarking annually, identifying inefficiencies, and taking action to optimize building systems, you can unlock significant savings and long-term value. Whether you're looking to cut your utility bills, improve tenant satisfaction, or boost your property’s marketability, LL84 gives you the data you need to succeed.
Don't wait for fines or rising utility costs to force your hand. Start benchmarking today and turn your energy data into dollars.
