New York City’s Local Law 97 (LL97) places limits on greenhouse gas emissions (“GHG”) from the City’s largest buildings. The City estimates that about 2/3 of all city greenhouse gas emissions come from buildings, which makes LL97 a key part of the city’s efforts to combat climate change. Most buildings over 25,000 square feet are required to meet GHG emissions limits beginning in 2024. Stricter limits will come into effect in 2030 and subsequently tighter limits in future years. The limits set for 2030 were designed to achieve a 40% reduction by 2030 ultimately reaching net zero emissions by 2050.
In February, the New York City Department of Buildings issued a guide (the Article 320 Information Guide) that formalizes the annual GHG emissions reporting requirements for in covered buildings.
The Northeast Chapter of the CHP Alliance was highly engaged in the development of these requirements, advocating for changes that would better reflect CHP’s decarbonization benefits. Ultimately, the final regulations allow building owners to receive greater credit for the energy efficiency benefits of cogeneration while still ensuring strict overall emissions limits, essentially incentivizing the use of CHP as a pathway to compliance with LL97’s carbon reduction goals.
To evaluate the ongoing usefulness of CHP within the long-term framework of decarbonization, the Department convened a months-long CHP-focused working group with technical experts and industry stakeholders, resulting in additions to 1 RCNY §103-14 that outline a methodology for the LL97-compliant use of CHP. The revised LL97 allows favorable calculations for CHP systems meeting the definition of a “qualified generation facility,” meaning that a permit was issued by the Department prior to September 1, 2024, and all of the following apply:
- The system operates at a minimum annual average efficiency, which at the time of this Guide is set at 55%;
- The system does not emit levels of Nitrogen Oxides (NOX) greater than or equal to 1.6 lbs./MWh;
- The system is not owned by a utility; and
- The system meets the performance requirements of Title 24 of the NYC Administrative Code, aka the Air Pollution Control Code.
The DOB’s LL97 CHP-focused Working Group
The NE Chapter’s advocacy included participation in a months long CHP focused working group with technical experts and industry stakeholders. Tom Bourgeois the co-chair of the NE Chapter was one of approximately dozen outside experts and stakeholders invited to participate in this group. Working in partnership with the Department and its technical staff, the working group provided critical information yielding changes that now allow building owners to receive greater credit for the benefits of cogeneration. The NE Chapter is grateful to have had this opportunity to make our voices heard as the new methodologies were developed and codified.
While important beneficial concessions were made to LL97’s methodology, the new rules only apply to systems that had a permit issued by the Department, on or before September 1, 2024. Nonetheless, these changes mark a significant step forward in recognizing the carbon reduction benefits of CHP. The NE Chapter commends the Department for the collaborative approach taken over this arduous process. Their willingness to entertain information and perspectives from CHP site operators, experts and stakeholders, including the NE Chapter lead to a much more equitable outcome for the CHP industry.
The NE Chapter looks forward to continuing to advance the interests of the CHP industry throughout 2025.