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Local Law 97: Good Faith Compliance Pathway 

Eligibility, Plans, Avoidance of Fines, Monitoring, and Flexibility

What is the "Good Faith" Compliance Pathway?

The "Good Faith" Compliance Pathway under New York Local Law 97 (LL97) is a provision introduced by the New York City Department of Buildings (DOB) to help building owners avoid or reduce fines for non-compliance during the initial compliance period (2024-2029). This pathway was included in the finalized rules released in late 2023 to accommodate buildings that are making genuine efforts to reduce their emissions but may not yet fully meet the law's stringent requirements.

Key aspects of the "Good Faith" compliance pathway:

  1. Eligibility: To qualify for the "Good Faith" pathway, building owners must demonstrate that they are actively working towards compliance with LL97. This includes keeping up with existing emissions-related laws, such as submitting required emissions reports and upgrading lighting under Local Law 88.
  2. Compliance Plan: Building owners must submit a decarbonization plan by May 1, 2025, or provide evidence that they have begun work to meet the 2024-2029 emissions limits. This plan should outline the steps the building will take to reduce its emissions and the timeline for implementing these measures.
  3. Avoidance of Fines: Buildings that meet the "Good Faith" criteria can avoid fines up to 2029. This gives building owners additional time to implement necessary retrofits and upgrades without facing immediate penalties.
  4. Monitoring and Enforcement: The DOB retains the authority to assess whether a building is truly making "Good Faith" efforts. If a building is found to be non-compliant or not following through with its decarbonization plan, the DOB can impose fines retroactively for the years the building claimed "Good Faith" efforts.
  5. Flexibility: The pathway was created in recognition of the challenges posed by the COVID-19 pandemic and the significant investments required to meet LL97's emissions limits. It offers some flexibility for buildings that may have faced delays or financial difficulties in starting their decarbonization efforts (Brick Underground) (Cooperator News).

The "Good Faith" Compliance Pathway provides a temporary reprieve for building owners who are committed to reducing their emissions but need more time to achieve full compliance with LL97. However, it is not a permanent exemption, and building owners must still work towards meeting the law's long-term emissions reduction goals.