NYC Building Decarbonization is Here: Your Essential Guide to 2024’s Climate Action Requirements and HVAC Solutions

New York City’s ambitious climate action plan has officially launched, bringing sweeping changes that affect thousands of buildings across the five boroughs. The limits, established by the City Council in 2019, go into effect on Monday, January 1, 2024, and are the centerpiece of the city’s plan to reduce harmful greenhouse gas emissions from our built environment and meet an aggressive target of carbon neutrality by 2050. It goes into effect Jan. 20, applies to all 50,000 city buildings over 25,000 square feet, and includes progressively stricter emissions standards over the next 16 years. For building owners and managers, understanding these requirements isn’t just about compliance—it’s about positioning your property for long-term success in a rapidly changing regulatory landscape.

Understanding Local Law 97: The Heart of NYC’s Decarbonization Strategy

Buildings “account for approximately two-thirds of greenhouse gas emissions in New York City,” making them a critical focus of the city’s climate efforts. Starting next year, buildings greater than 25,000 gross square feet must meet increasingly stringent greenhouse gas emission limits or face penalties. The first annual Local Law 97 compliance reports, which include the total emissions produced in calendar year 2024, are due to the Department of Buildings on May 1, 2025.

The financial stakes are significant. For violators, annual financial penalties are set at $268 per ton of CO2 equivalent over an individual building’s limit, based on 2024 energy usage and emissions. However, the law also provides pathways for compliance through building-specific decarbonization plans, offering flexibility for property owners who demonstrate good faith efforts toward emissions reduction.

The Natural Gas Ban: Local Law 154’s Impact

Complementing LL97, Local Law 154 (LL154), commonly referred to as the natural gas ban, went into effect for buildings less than 7-stories on January 1st, 2024. While this does not affect larger buildings yet, most other buildings will follow by January 2, 2027. This legislation fundamentally changes how new construction projects approach heating and cooling systems, pushing the market toward electrification solutions.

Heat Pumps: The Technology Leading NYC’s Decarbonization Revolution

Perhaps the most common and clear long-term response to the LL97 and LL154 regulations is to consider a variant of heat pump technology as the primary source of space and domestic water heating, whether in new building designs or in renovating existing space. Enormous improvements have been made in this technology and its availability in the US over the last 5+ years and we are now able to confidently design and build systems that heat efficiently in our climate without the use of fossil fuels.

The state is backing this transition with substantial investment. New York is providing $10 million to building owners and HVAC equipment manufacturers to advance heating and cooling technology for use in large buildings across the state, Gov. Kathy Hochul announced Wednesday. The new Clean Heat for All: Packaged Terminal Heat Pump program, administered by the New York State Energy Research and Development Authority, will fund the development and demonstration of cold climate heat pumps in multifamily, senior living and hospitality buildings.

Practical Decarbonization Strategies for Building Owners

Decarbonizing a building can involve insulating and air-sealing it, replacing heating and cooling systems with non-gas alternatives, and installing LED lighting. Some landlords will have to make major improvements, like replacing old boilers with heat pumps and replacing water pipes with ductwork that distributes hot and cold air.

For many properties, a phased approach makes the most economic sense. However, it is not an all-or-nothing proposition, and the reality is that many buildings will take a phased approach. While full electrification is the end goal of decarbonization for most building types, reducing energy use with efficiency improvements and partial electrification can be a cost-effective bridge solution to begin transitioning away from fossil fuels.

The Critical Role of Professional HVAC Consulting

Navigating NYC’s decarbonization requirements requires specialized expertise that goes far beyond traditional HVAC knowledge. However, there are also challenges associated with these systems, particularly in existing buildings where existing mechanical and electrical infrastructure can prove difficult and costly to convert to heat pump ready systems. Additionally, for any heat pump design, product availability and costs have been a challenge, coming on the heels of the Covid-driven supply change issues, inflation and further complicated by the refrigerant regulations that are making it challenging to plan for equipment installations.

This is where experienced professionals like HVAC New York County, NY specialists become invaluable. Brothers Supply Corporation, with over 50 years of experience serving the tri-state area, brings the deep technical knowledge and practical experience needed to navigate these complex transitions successfully.

Brothers Supply: Your Partner in Building Decarbonization

As a locally owned and operated business for over 50 years, we have deep roots in the community, and we’re committed to serving our neighbors with integrity and care. At Brothers Supply, our extensive experience and commitment to customer satisfaction set us apart. We’re not just providers; we’re experts in HVAC installations and repairs.

Brother’s experts will consult with you to produce an in-depth evaluation of your building’s HVAC needs. We have the supplies and experience to tailor and deliver end-to-end HVAC services for your building. Large organizations all over the tri-state area trust Brother’s with their commercial needs. Whether you’re managing a high-rise residential building, commercial complex, or institutional facility, Brothers Supply has the expertise to guide you through the decarbonization process.

Taking Action: Your Next Steps

With “Where it really will begin to bite will be in 2030,” when 40% reductions of greenhouse gas emissions will be required, the time to start planning is now. Not having a plan for building decarbonization will soon become a business liability. Taking stock of building systems and energy performance is a fundamental first step to compare options and prioritize investments.

The regulatory landscape is complex, but the opportunities are significant. “Such a focus will unleash a massive investment in building envelope upgrades and heat pumps, creating thousands of local, high-quality jobs, maximizing uptake of federal incentives, and reducing harmful air pollutants, all while improving comfort and quality of life for residents,” according to leading environmental organizations.

Don’t wait until compliance deadlines approach. Contact Brothers Supply today to begin your building’s decarbonization journey with confidence, backed by decades of experience and a deep understanding of NYC’s unique building challenges and regulatory requirements.