New York City Councilmembers are setting the stage for a tighter grip on Local Law 97, aiming to prevent building owners from using the purchase of energy credits as an easy out from comprehensive climate upgrades. The law targets the city's larger buildings by mandating energy efficiency improvements and greenhouse gas emission reductions of 40% before 2030, with the ultimate goal of carbon neutrality by 2050. According to Gothamist, a new bill introduced would slash the current allowance of offsetting 50% of pollution caused by electricity with renewable energy certificates (RECs) down to just 10%.
The proposed legislation by Manhattan Councilwoman Carmen De La Rosa and Brooklyn Councilman Lincoln Restler is primarily focused on altering the renewable energy credit system. Having more than five years of contentious discussions, the legislation comes as a concerted effort to retain the integrity of the city's climate objectives, which affect swathes of buildings that make up over two-thirds of the city’s emissions. De la Rosa told Gothamist, "By limiting the use of RECs, we're really ensuring that the intent of Local Law 97 is honored." Yet, the legislation does not sit well with some, such as the Real Estate Board of New York, who predicts dire economic repercussions and a disincentive for decarbonization efforts.
However, advocates for the bill argue that the loophole allows for landlords to avoid significant upgrades by buying RECs, which could potentially be cheaper in the long run. Pete Sikora, campaigns director for the advocacy group New York Communities for Change, told Gothamist, "If future REC prices are low, then yes, it could be a lot cheaper to purchase RECs than to upgrade the building." This change would compel building owners to prioritize more substantive emissions-reducing investments.
Statements from the Real Estate Board of New York show deep concerns over the proposed limitations. Christopher Santarelli, a spokesperson, described to Crain's New York, the plan as "deeply troubling," citing that "Local Law 97 already imposes devastating fees on property owners with limited pathways to compliance." With the Urban Green Council's analysis revealing that a significant portion of buildings could meet emission caps merely by acquiring energy credits, the legislation, if passed, may shift industry compliance strategies markedly.
De la Rosa and Restler’s determination is clear, despite an uphill battle with the real estate lobby and uncertain momentum within the City Council. The Crain's New York report indicates that other Council members have shown interest in backing the bill. Moreover, in a recent climate policy forum, all Democratic mayoral candidates present committed to supporting legislation that enforces strict regulations on the utilization of energy credits according to Local Law 97. De La Rosa, optimistic about the Council's alignment with the legislation, expressed her stance, stating, "What we don't want to see is that the credits are overused in a way that is a buyout for these large corporations."
