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CONFIDENTIAL

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Int. No.

By Council Member Constantinides

A LOCAL LAW

To amend the New York city charter and the administrative code of the city of New York, in
relation to the commitment to achieve certain reductions in greenhouse gas emissions by 2050

Be it enacted by the Council as follows:

1 Section 1. Chapter 26 of the New York city charter is amended by adding a new section

2 651 to read as follows:

3 § 651. Office of building energy performance. a. There shall be in the department an

4 office of building energy performance. The office shall be headed by a director who shall report

5 to the commissioner. The duties of the office shall include, but not be limited to:

6 1. Overseeing development, implementation and coordination of building energy

7 performance legislation and policies for existing buildings, new construction and major

8 renovations;

9 2. Creating annual building energy assessment protocols and requiring building owners to

10 submit annual building energy assessments to illustrate compliance with energy limits

11 established by the office pursuant to section 26-2303 of the administrative code;

12 3. Creating an online portal for submission of annual building energy assessments;

13 4. Receiving and validating annual building energy assessment submissions;

14 5. Determining penalties for buildings that are noncompliant with applicable energy

15 limits;

16 6. Overseeing the review and revision of any building energy performance assessment

17 methodology, building energy limits, goals and timeframes to meet any limits or goals;

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18 7. Establishing alternative methods of compliance for building energy limits, including

19 any requests for hardship waivers, green power purchasing, trading efficiencies, credit for

20 beneficial electrification, and alternative compliance for covered buildings with rent regulated

21 housing accommodations; and

22 8. Working with and utilizing recommendations from the advisory board established

23 pursuant to section 26-2302 of the administrative code to:

24 (a) Establish building emissions intensity limits for individual buildings plus any

25 additional limits on the use of fossil fuels in individual buildings where applicable. Such limits

26 shall include technical, financial and implementation tools and standards of building energy

27 performance, and deadlines to achieve building sector energy savings; and

28 (b) Establish and implement a building use energy metric pursuant to paragraph 1 of

29 subdivision b of section 26-2302 of the administrative code.

30 b. City agencies, including but not limited to the mayor’s office of long-term planning

31 and sustainability, the department of environmental protection, the department of housing

32 preservation and development and the department of citywide administrative services shall

33 cooperate with the office as requested by the director. Such cooperation shall include, but not be

34 limited to, detailing agency staff to assist office staff consistent with agency and office functions

35 and reporting to the office on building energy performance issues and related enforcement

36 efforts.

37 § 2. Title 26 of the administrative code of the city of New York is amended by adding a

38 new chapter 23 to read as follows:

39 CHAPTER 23

40 BUILDING ENERGY EFFICIENCY

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41 § 26-2301 Definitions. As used in this section:

42 Administering agency. The term “administering agency” means the office of building

43 energy performance established by section 651 of the New York city charter.

44 Building emissions. The term “building emissions” means greenhouse gas emissions as

45 expressed in metric tons of carbon dioxide equivalent emitted as a result of operating a covered

46 building and calculated in accordance with rules promulgated by the administering agency.

47 Building emissions intensity. The term “building emissions intensity” means, for a covered

48 building, the number obtained by dividing the building emissions by such building’s gross floor

49 area, expressed in metric tons of carbon dioxide equivalent per square foot per year.

50 Covered building. The term “covered building” means (i) a building that exceeds 25,000

51 gross square feet or (ii) a city-owned building.

52 Department. The term “department” means the department of buildings.

53 Fossil fuel. The term “fossil fuel” means a fuel consumed through a combustion process

54 that is associated with the creation of a heating and/or cooling byproduct that includes, but is not

55 limited to steam, hot water, or chilled water, that is consumed on the premises of a covered

56 building.

57 Green energy source. The term “green energy source” means a source of energy that is:

58 1. A qualified energy resource, as such term is defined in section 45 of title 26 of the United

59 States code in effect on January 1, 2017; and

60 2. A source that is determined to be renewable by the head of the administering agency or

61 by the head of another agency or office designated by the mayor.

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62 Metric tons of carbon dioxide equivalent. The term “metric tons of carbon dioxide

63 equivalent” means the global standard unit in carbon accounting to quantify greenhouse gas

64 emissions, also expressed as tCO2e.

65 Occupancy group. The term “occupancy group” means the classification assigned to a

66 building or a space within a building in accordance with the New York city building code or the

67 1968 building code, as applicable.

68 Registered design professional. The term “registered design professional” has the same

69 meaning as in section 28-101.5.

70 Rent regulated accommodation. The term “rent regulated accommodation” means a

71 housing accommodation with a legal regulated rent pursuant to the rent stabilization law of 1969

72 or the local emergency housing rent control act of 1962.

73 § 26-2302 Advisory Board. There shall be an advisory board convened by the

74 administering agency upon the effective date of this section, in January of 2029, and in January of

75 2039 to provide advice and recommendations to the administering agency pursuant to meet the

76 goals of section 26-2303. The director of the administering agency, or the designee of such

77 director, shall serve as chairperson of such advisory board.

78 a. Such advisory board shall be composed of a minimum of 24 members in addition to the

79 chairperson, 12 of the members of such advisory board shall be appointed by the mayor or the

80 mayor’s designee, and 12 of the members of such advisory board shall be appointed by the speaker

81 of the council. To the extent practicable, the advisory board shall include representatives of (i)

82 engineers; (ii) architects; (iii) building owners and managers; (iv) the construction trades; (v) the

83 energy industry; (vi) the public utilities industry; (vii) the green energy industry; (viii) residential

84 and commercial tenants; (ix) the business sector; (x) environmental advocacy organizations; (xi)

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85 environmental justice organizations; (xii) academic research institutions; and (xiii) other persons

86 with experience or expertise deemed relevant by the administering agency.

87 b. The advisory board shall convene smaller working groups, as necessary, to issue

88 recommendations to the administering agency. Such working groups shall meet at least quarterly

89 until the completion of each report. If there is a vacancy on the working group, the vacancy shall

90 be replaced by an appointment in the same manner the position was originally filled. Such

91 recommendations shall include, but not be limited to:

92 1. A report and recommendations for updating building emissions intensity limits,

93 including, but not limited to, the use of a different metric beginning in 2024 or change in

94 calculation of such limits based on specific building use within an occupancy group. Such report

95 may also include proposed requirements for fossil fuel reductions for buildings using a

96 disproportionate amount of fossil fuels and methods for rewarding energy savings during peak

97 energy demand periods. Such report shall include recommendations to ensure staggered

98 compliance of the energy use reductions, including but not limited to a phased timeline for

99 compliance. This report shall be submitted to the administering agency no later than December 31,

100 2019.

101 2. A report and recommendations reviewing the feasibility of methods for alternative

102 compliance, including but not limited to waivers, purchasing of green power, issuing credit for

103 beneficial electrification, and alternative compliance for covered buildings containing one or more

104 rent regulated accommodations for the purpose of maintaining affordable housing. This report

105 shall be submitted to the department no later than December 31, 2019.

106 § 26-2303 Building emissions intensity limits. a. On and after January 1, 2022 a covered

107 building shall not have a building emission intensity higher than the annual building emission

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108 intensity limit for such building as determined in accordance with this section based on the

109 occupancy group of the building.

110 1. For calendar years 2022 and 2023 the building emissions intensity limit shall be

111 calculated as follows:

112 (a) For occupancy groups A, E, H, U: multiply 0.008886 by the corresponding gross floor

113 area (sf);

114 (b) For occupancy groups B, I, M: multiply 0.008552 by the corresponding gross floor area

115 (sf);

116 (c) For occupancy groups F, S: multiply 0.005170 by the corresponding gross floor area

117 (sf);

118 (d) For occupancy group R: multiply 0.007010 by the corresponding gross floor area (sf);

119 and

120 (e) For buildings with spaces classified in more than one occupancy group the sum of the

121 calculated values from subparagraphs (a) through (d) of this paragraph, as applicable for each

122 space.

123 2. For calendar years 2024 through 2029 the building emissions intensity limit shall be

124 calculated as follows, or determined in consultation with the advisory board and the office of long

125 term planning and sustainability and set by rule by the department, provided that such limits shall

126 not be less restrictive than the limit for the calendar year preceding the establishment of such limits

127 pursuant to this paragraph:

128 (a) For occupancy groups A, E, H, U: multiply 0.004439 by the corresponding gross floor

129 area (sf);

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130 (b) For occupancy groups B, I, M: multiply 0.004850 by the corresponding gross floor area

131 (sf);

132 (c) For occupancy groups F, S: multiply 0.001374 by the corresponding gross floor area

133 (sf);

134 (d) For occupancy group R: multiply 0.004339 by the corresponding gross floor area (sf);

135 and

136 (e) For buildings with spaces classified in more than one occupancy group the sum of the

137 calculated values from sub-paragraphs (a) through (d) of this paragraph as applicable for each

138 space.

139 3. No later than January 1, 2021 the department, in consultation with the advisory board,

140 shall establish building emission intensity limits applicable for calendar years 2030 through 2039

141 and building emission intensity limits applicable for calendar years 2040 through 2049. Such limits

142 established shall not be less restrictive than the limit for the calendar year preceding the

143 establishment of such limits pursuant to this paragraph. Such limits shall be set to achieve an

144 average building emission intensity for all covered buildings of no more than 0.0014 tCO2e/sf/yr

145 by 2050.

146 4. No later than January 1, 2025 the department, in consultation with the advisory board,

147 shall establish building emissions intensity limits applicable for calendar years commencing on

148 and after January 1, 2050. Such limits shall not be less restrictive than the limits established for

149 the calendar year commencing January 1, 2049 and shall achieve an average building emissions

150 intensity for all covered buildings of no more than 0.0014 tCO2e/sf/yr.

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151 b. By May 1, 2023, and by May 1 of every year thereafter, the owner of a covered building

152 shall file with the department a report, certified by a registered design professional, that for the

153 previous calendar year such building is either:

154 1. In compliance with the applicable building emissions intensity limits established

155 pursuant to subdivision a of this section; or

156 2. Not in compliance with such applicable building emissions intensity limits and the

157 amount by which such building exceeds such limits.

158 c. In 2055, the administering agency shall prepare and submit to the mayor and the speaker

159 of the council recommendations whether to continue any of the requirements of this section.

160 § 26-2304 Rules. The department may amend, adopt or promulgate any such rules,

161 regulations, fees, penalties or procedures as may be necessary to effectuate compliance with any

162 reporting requirements of this chapter.

163 § 26-2305 Assistance. The administering agency shall establish and maintain a program

164 for assisting owners of covered buildings in complying with this section, as well as expand existing

165 programs established to assist owners in making energy efficiency improvements and purchasing

166 energy derived from green energy sources.

167 § 26-2306 Buildings containing rent regulated accommodations. If the report submitted

168 pursuant to subdivision b of section 26-2303 by the owner of a covered building that contains one

169 or more rent regulated accommodations indicates that such building exceeds the building

170 emissions intensity limits established by this section for the previous calendar year, within 120

171 days of the submission of such report, a minimum of 40 percent of energy used by such building

172 shall be derived from green energy sources. By May 1 of the following year and every year

173 thereafter until such building is in compliance with § 26-2303, the owner shall, in addition to the

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174 report required by § 26-2303, submit to the department a second report certifying that a minimum

175 of 40 percent of energy used by such building is derived from green energy sources. Such report

176 shall be submitted in a form and manner established by the administering agency and shall be

177 certified by a registered design professional.

178 § 26-2307 Penalties. The owner of a covered building that does not meet the requirements

179 of section 26-2303 or section 26-2306, as applicable, shall be subject to a civil penalty for each

180 year until such building meets such requirements. The civil penalty for each such year shall be

181 calculated as follows:

182 a. An owner of a covered building that does not contain one or more rent regulated

183 accommodations who has submitted a report pursuant to section 26-2303 which indicates that such

184 building has exceeded its building emission intensity limit shall be liable for a civil penalty of not

185 more than an amount equal to the difference between the building emissions intensity limit and

186 the reported building energy use, multiplied by the building’s gross floor area, multiplied by $268

187 b. An owner of a covered building containing one or more rent regulated units who has (i)

188 submitted a report pursuant to section 26-2303 which indicates that such building has exceeded its

189 building emission intensity limit and (ii) submitted a report pursuant to section 26-2306 which

190 indicates that less than 40 percent of energy used by such building is derived from green energy

191 sources shall be liable for a civil penalty of not more than an amount equal to the difference

192 between the building emissions intensity limit and the reported building energy use, multiplied by

193 the building’s gross floor area, multiplied by $268.

194 c. An owner of a covered building who does not submit a report required by section 26-

195 2303 or section 26-2306, as applicable, shall be liable for a civil penalty of not more than an

196 amount equal to the building emissions intensity limit of such building multiplied by 10, multiplied

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197 by such building’s gross floor area, multiplied by $268; provided, however, that no civil penalty

198 shall accrue for a report demonstrating compliance with the requirements of this section if such

199 report is filed within 60 days of the date such report is due.

200 d. It shall be unlawful to knowingly make a material false statement in a report or other

201 submission filed with the administering agency or the department, pursuant to this section. A

202 violation of this paragraph shall be a misdemeanor and subject to a fine of not more than $500,000

203 or imprisonment of not more than 30 days or both such fine and imprisonment. A person who

204 violates this subdivision shall also be liable for a civil penalty of not more than $500,000.

205 e. Civil penalties provided for by this section may be recovered in a proceeding before the

206 environmental control board. Administrative summonses returnable to the environmental control

207 board for violations of this section may be issued by the department or by an agency designated

208 by the department.

209 f. Civil penalties provided for by this section may also be recovered in an action by the

210 corporation counsel in any court of competent jurisdiction.

211 g. The administering agency may establish by rule a schedule of fees that shall be paid

212 upon the filing of a report or an application for a variance pursuant to this section. Such schedule

213 may also include a fee for the late filing such report.

214 § 26-2307 Carbon Trading Study. The administering agency shall conduct a study on the

215 feasibility of a citywide carbon trading scheme and submit a report with the findings of such study

216 to the mayor and the speaker of the council within one year of the effective date of this section.

217 Such study shall include methods to encourage investment in environmental justice communities.

218 § 3. This local law takes effect immediately.

NKA/APB
10/19/2018
3:02pm

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