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Q&A
Assessment of Local Law 97 implementation progress
1:58:41
ยท
5 min
Commissioner Aggarwala provides a detailed assessment of the progress in implementing Local Law 97, highlighting both achievements and challenges. He discusses the complexities of the law and its impact on New York City buildings.
- The Department of Buildings is on track for effective implementation of regulations
- The 2030 compliance period is more critical than the 2024 period for achieving significant carbon emission reductions
- Financing challenges for building owners have emerged due to changes in the real estate market and economic conditions since the law's enactment
Lincoln Restler
1:58:41
These were things I thought about last night when we found out we were chairing the hearing.
1:58:43
So we didn't give you any warning and I appreciate the chance to just ask the questions.
1:58:49
I'll shift to local law 97, which I recognize it's it's it's kind of it's the Department of Buildings that's responsible for the implementation, but, you know, I'm pleased that you've been helping to drive the policy and make sure that we're handling this the right way.
1:59:07
I just would like to ask broadly, do you think we are on track for effective implementation of local law 97?
Rohit Aggarwala
1:59:19
Well, thank you council member.
1:59:20
It's so look, I I think we are certainly on track for the effective implementation of the regulations.
1:59:29
Right?
1:59:30
And I think commissioner Otto and deputy commissioner Popa have done a tremendous job.
1:59:37
And Laura's team, really I am am kinda I have weekly updates with them.
1:59:43
I talk to Laura every week.
1:59:46
And the work that they do has been nothing short of herculean in terms of getting this very complex rule implemented.
1:59:55
And while, you know, I think outside observers look at the retrofits and look at the financing and too many of them, I'd argue, look at the question of are there gonna be fines or not.
2:00:07
You know, the actual nuts and bolts of setting up the regulation ensuring that it's defensible because as you know there are lawsuits against it.
2:00:15
And ensuring that it is as smooth as possible a customer service experience.
2:00:20
You you all were asking about some of our permitting processes.
2:00:24
You know, this is going to be a big imposition on thousands of building managers around New York City and and DOB really is trying to make it.
2:00:33
It will be a burden but they are trying to make it only the burden that it absolutely has to be.
2:00:38
So I think in terms of that we are we are on the right track.
2:00:44
I think the bigger question frankly we will see.
2:00:46
You know one of the problems with the law itself is that to a certain extent we're flying blind until the first reports come in.
2:00:55
As you know the department of buildings and MOCEJ have used benchmarking data to estimate how many buildings we think are or are not in compliance.
2:01:06
We have no way of knowing what buildings are doing work at any given time.
2:01:11
Right?
2:01:11
That will all be reported to us.
2:01:13
And even more importantly, and and what I, you know, what we spent a lot of time talking about two years ago when we came out with the with the big set of rules about it, is that the 2024 compliance period is not really the important one.
2:01:28
The important one is the 2030 compliance period.
2:01:31
So the real impact on our carbon emissions will not be decided by how well this year's compliance reports how good this year's compliance reports look or how many buildings are in violation this year.
2:01:44
It really is about how many buildings have plans to meet their twenty thirty targets.
2:01:51
That's the reason that we built in this kind of two year mulligan where we're giving buildings that are out of compliance time.
2:01:59
We were attacked for it, but I think it's the right answer for the planet because in exchange we are gonna be able to require them to have enforceable plans to get to 02/1930.
2:02:08
But that's quite, you know, quite literally and proportionally just the tip of the iceberg because the buildings that are out of compliance in 2024 are a small percentage, and I'd have to refresh the actual percentage, but it's probably in the high teens of the buildings that are likely right now out of compliance with their 02/1930 targets.
2:02:26
And those are the buildings that are gonna have to gear up and do work.
2:02:29
And this is not work you can get done in twelve months.
2:02:31
Right?
2:02:32
This is work you have to plan into a building's capital program.
2:02:35
Ideally it's a five year capital program.
2:02:37
The other thing that has happened, and of course, you know, I I I know pretty much only what's what's in the newspapers.
2:02:44
We've been in touch with some of the green banks that are doing greenhouse gas reduction fund loans.
2:02:52
We have been hoping and we continue to hope that the GGRF money that was dispersed under the Biden administration will be available and that New York property owners of all types will be able to tap into that.
2:03:06
I continue to advocate to the state that the $5,000,000,000 in energy efficiency money that the Public Service Commission is going to program this year, that a lot of it be directed towards local on 97 compliance.
2:03:20
Yes.
2:03:21
And you know I I I don't have a sense of whether they're going to be supportive on that, but where where we will face difficulties still remains the question of whether buildings can find the financing, whether buildings can find the contractors.
2:03:37
I'm really pleased with the work that the New York City Accelerator has done.
2:03:40
We put a lot of effort into outreach.
2:03:43
But this was a law that was enacted at a time when real estate values were only going up, where everybody who owned real estate was doing well, and where if you didn't have the cash on hand you could borrow it for 2%, three %.
2:03:58
We're in a very different world right now and the concern I have about local I 97 compliance is whether the financing is available.