What do changes in the Climate Leadership and Community Protection Act mean for NYC co-op and condo buildings?
- A new target date for grid decarbonization sparks debate about LL97 deadlines
- NYC buildings will still need to invest in decarbonization and efficiency measures
Although the new target was paired with a higher reduction target—60 percent instead of 40 percent—it has been met with disappointment by environmental groups.
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Recent changes to the Climate Leadership and Community Protection Act (CLCPA) are expected to slow the timeline for New York State’s transition to a cleaner electric grid. Although this doesn’t affect the city’s emission targets for co-ops and condos under Local Law 97, it has triggered a debate about whether the pace of compliance should be adjusted.
“There will be significant advocacy to reform Local Law 97 to fit in or mirror the CLCPA,” said attorney Geoffrey Mazel, founding member at Hankin & Mazel who was involved in lobbying for changes to the law.
For many co-op and condo buildings, electrification is the long-term strategy for complying with Local Law 97 and it relies on a progressively cleaner electric grid to reduce emissions over time. Changes to the CLCPA raise questions about whether those assumptions should be revisited.
A new timeline for grid decarbonization
When the CLCPA passed in 2019, New York became legally bound to the process of transferring the state’s power grid from fossil fuels to renewable energy. The law required New York to reduce greenhouse gas emissions to 40 percent below 1990 levels by 2030 and at least 85 percent below 1990 levels by 2050. In the recent New York State budget, Governor Kathy Hochul adjusted this goal, imposing a new emission reduction target of 60 percent below 1990 levels by 2040.
“It gives the New York State electricity providers a reprieve for 10 years to convert the grid to renewable sources,” Mazel said.
Although the delay was paired with a higher reduction target—60 percent instead of 40 percent—it has been met with disappointment by environmental groups.
“State leaders weakened the law while missing an opportunity to speed the transition to more affordable, reliable, and clean energy sources,” said Tom Wright, president and CEO of the non-profit Regional Plan Association.
The changes have also angered lawmakers who want to see a commitment to publicly-owned renewable energy projects.
Local Law 97 remains unchanged—for now
Benchmarking data shows the majority of co-op and condo buildings are currently in compliance with Local Law 97, but the emissions limits become more stringent with each compliance period. Co-op and condo buildings that exceed their emission thresholds face penalties based on an emissions coefficient—a number that is adjusted to reflect the grid's changing energy mix.
The coefficient has a direct impact on compliance. Co-op and condo advocates argue a slower grid decarbonization should ease compliance.
"The argument is why would [buildings] convert to electricity if the source of the electricity is fossil fuel burning," Mazel said.
Why engineers still back electrification
However, many engineers who advise buildings on reducing emissions don’t think the changes to the CLCPA targets change the case for electrification. “Where it makes sense, it makes sense, irrespective of the grid,” said Marc Zuluaga, co-founder of climate-tech consultancy firm Cadence OneFive.
An analysis by the Urban Green Council found that replacing most fossil fuel heating systems with electric heat pump technology reduces emissions regardless of the grid’s green credentials.
“You’re going to do heat pumps if you're comfortable with the technology, have an old boiler, have reserves, and believe it will have comfort benefits,” Zuluaga said. Incentives, including the newly revived J-51 tax abatement program, can also help to make the financial case for the switch. “That’s a way bigger deal than some abstract grid coefficient,” he added.
What co-op and condo boards should do now
With Local Law 97 currently unchanged, co-ops and condos still need to invest in measures that reduce energy use and carbon emissions. Heat pump technology is just one of the tools available to achieve this.
“Electrification is an important part of decarbonization, but it cannot be treated as the end-all solution for every building,” said Michael Scorrano, founder and managing director of engineering firm EN-POWER GROUP.
He recommends a strategic and phased approach to upgrades. “The right path starts with understanding a building’s actual emissions, infrastructure, budget, and capital plan, then using a strategic, phased approach to prioritize the most practical and cost-effective measures,” Scorrano said.
For now, there’s no guarantee the CLCPA changes will alter Local Law 97 obligations. The city's emission caps remain in place and delaying efficiency upgrades or electrification projects could leave boards with fewer compliance options as the 2030 targets get closer.
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