Navigating New York’s Energy Transition:  Proactive Compliance Strategies for Building Owners & Property Managers

Key Takeaway: With NYC energy regulations looming, building owners and property managers must act now. Partnering with experts to assess compliance gaps and implement efficiencies can help avoid penalties while cutting operating costs.

Back in 2019, when the New York City Council passed the Climate Mobilization Act and Mayor de Blasio signed it into law, no one seemed too eager to get their buildings in compliance. Owners of buildings larger than 25,000 square feet had five full years to comply with Local Law 97, which set greenhouse gas emission targets for different types of buildings.

Now we are in 2024 and compliance concerns have suddenly gotten very real, and the time for procrastination is over. New York City’s energy transition has become an urgent issue for building owners and property managers, as the requirements — and penalties — of Local Law 97 are starting to go into effect.

While certain building categories like affordable housing have gotten a temporary reprieve, other types of residential and commercial buildings must reduce their carbon emissions immediately if they haven’t already done so. Enforcement of carbon emission thresholds is already taking place, with fines expected to start in 2025.

Get Started with a Building Assessment

Building owners and property managers have a variety of ways to learn how far out of compliance their buildings might be. NYC Accelerator, for example, a city agency offering resources, training, and guidance about the energy transition, lets you enter your building address on their website to quickly get information about your energy usage and Local Law 97 compliance status.

Service providers like Approved, a leading boiler installation and maintenance company and a premier energy supplier of electricity, natural gas, and fuel oil, including Bioheat® fuels, also offer free assessments and advice that can help New York City building owners and property managers prioritize energy transition initiatives for the biggest impact.

At Approved, we conduct free and thorough assessments to determine the most effective carbon emission reduction strategies, based primarily on:

  • The age and condition of the heating system
  • The fuel type used by the heating system
  • Permit expiration dates, which will impact the types of fuels allowed

Fuel Switching—A Quick Win

For many buildings in New York, the biggest culprit when it comes to high carbon emissions are the heating systems. So, one of the first things you can do to achieve or get closer to compliance is to change the type of heating oil you’re using.

As you may know, the use of grade No. 6 heating oil was prohibited throughout the State of New York in 2015, moving building owners and property managers to cleaner-burning fuels like No. 4 oil, No. 2 oil, Bioheat fuels, and natural gas.

No. 4 heating oil will be prohibited for use in city-owned buildings after July 1, 2025 — and for all other buildings in the city after July 1, 2027. Furthermore, as of June 30, 2024, building owners and property managers won’t be able to get a new permit, or renew an existing permit, that involves No. 4 oil.

The good news is that moving to No. 2 oil, Bioheat fuels, or natural gas can dramatically impact your emissions and lower your operating costs at the same time. What’s even more amazing is that it can happen in as little as two days. Changing to a lower carbon fuel is the first step, improving efficiency is the next step!

Improve Efficiency through Heating System Upgrades

After changing your heating oil, you can start to think about other changes you can make to your heating system to make it more efficient and bring your buildings into compliance.

For most heating systems, building owners and property managers can take the following measures to significantly reduce energy usage and cost:

  • Add pipe insulation
    Many older buildings don’t have insulated pipes, and this is a relatively easy and inexpensive way to cut down on your emissions.

  • Deploy a more advanced energy management system
    Advanced systems can automatically modulate your heating system based on the outside temperature. It’s like having a brain inside your burner, allowing it to run as little as possible to satisfy pre-determined temperature settings. For example, if it’s a 40-degree day, your system will know that it only has to run the boiler at 65% to keep everyone comfortable.
  • Upgrade or replace your boiler
    For boilers under 30–35 years old, a little maintenance can usually help them run more efficiently. Boilers older than that should be replaced. If you need a new boiler, know that modern units are incredibly efficient and less expensive than the fines and penalties you’ll have to pay if you’re not in compliance.

For steam-based systems, additional measures like steam trap upgrades, thermostatic air valves, and radiator covers can go a long way towards reducing your fuel usage and your carbon emissions. Keep in mind that if you do have a steam-based system it’s next to impossible to convert it to a hot water-based system.

For hot water based systems, there are numerous high efficiency options available, including on demand, direct vent heating plants, as well as fire tube boilers that operate at 97 % efficiency.  These types of systems can cut your annual expenses in half.

Find One Source for All Your Needs

At Approved, we offer several advantages over other service providers. Not only can we upgrade, repair, install, and maintain your entire heating system, we can also provide you with the most environmentally friendly fuels available at incredibly affordable rates.

To maximize your savings and eliminate unpleasant surprises, we offer long-term price guarantees and pricing bundles for customers with multiple properties. Why go to several different providers when you can get all your heating system compliance needs met by a single company?

As compliance deadlines loom ever closer, Approved offers yet another advantage that can help you avoid fines and penalties. Because we have one of the largest truck fleets — and one of the largest rosters of expert technicians — in the Tri-State Area, there’s a good chance we can take care of your energy transition needs in a timely manner.

The Financial Upside

We know from talking to many building owners and property managers in the city that no one’s happy about making changes to meet compliance requirements. But in point of fact, making the energy transition will likely have a positive impact on your cash flow in the long run.

The local agency NYC Accelerator provides attractive financing opportunities through the Property Assessed Clean Energy (PACE) program. These incentives enable retrofits through long-term financing at relatively low interest rates.

At Approved, we work with Willdan Group for energy equipment rebates and Verdant Commercial Capital for financing. These partners make projects more feasible by reducing or eliminating upfront costs and keeping monthly costs low.

In addition to looking at your expenses, you’ll also want to consider the long-term savings associated with your energy transition initiatives, as well as reducing or eliminating your carbon emission penalties.

Start your compliance journey with Approved today

As New York City’s energy transition progresses, building owners and property managers must take action to achieve compliance.

By partnering with New York City-recommended contractors like Approved, building owners and property managers can transform a compliance burden into a long-term financial opportunity by achieving emission goals, avoiding fines and penalties, and reducing operating costs for years to come.

To learn more and schedule a free building assessment, contact Approved today. If you’re a building owner or property manager who’s not already an Approved customer, you can also submit a commercial customer application and we’ll get back to you as soon as possible.