LL87 Fines

Property owners and managers that fail to comply with the due dates associated with Local Law 87 energy audits and retro-commissioning will face fines that accumulate over every non-compliant year. Failure to submit an Energy Efficiency Report will be regarded as a Class 2 violation, which may result in a fineof $3,000 for the first year and, will compound with each additional non-compliant year until the Energy Efficiency Report is submitted. Furthermore, the Department of Buildings will not accept a report if outstanding fines have not been paid.

An Example

A property management firm responsible for 5 buildings having borough block lot numbers ending in 3 will have to file the buildings’ energy efficiency report by the end of next year, 2013. If the process is delayed to 2014, the company will be hit with a fine equal to $3000 per building. After the initial year of non-compliance, the firm will accrue a penalty of $5000 for each additional year that the report is delayed.

If the report filing is delayed up to 2 years,
the firm would have to pay fines up to $40,000.

If the report filing is delayed up to 5 years,
the firm would be hit with fines up to $115,000.

As a result, a company managing 5 buildings may be fined up to a total amount of $240,000 for all its buildings, accrued between the initial filing year and the next required compliance year.

The best way to avoid these penalties is to take a proactive approach to compliance and start the auditing and retro-commissioning process at least 12-18 months before the report is due. This guarantees that buildings follow a comprehensive procedure to improve energy efficiency of base systems and also take advantage of grants, rebates and incentives available on a time-restricted basis.