New York City’s Local Law 87 requires owners of buildings larger than 50,000 gross square feet to complete an energy audit and retro-commissioning of base building systems once every ten years and file the results with the Department of Buildings by December 31 of their assigned year. Codified at NYC Administrative Code § 28-308, the law spreads compliance across a rolling schedule tied to each building’s tax block number, so your deadline depends on where your property sits in that rotation.
Which Buildings Are Covered
The law defines a “covered building” by size as recorded by the Department of Finance. Three configurations trigger the requirement:
- Any single building over 50,000 gross square feet.
- Two or more buildings on the same tax lot that together exceed 100,000 gross square feet.
- Two or more condominium buildings governed by the same board of managers that together exceed 100,000 gross square feet.
Properties classified as Class One under the state Real Property Tax Law are excluded. Class One covers one-, two-, and three-family homes, so the mandate effectively reaches commercial, institutional, and large residential buildings rather than small homeowners.1New York City Administrative Code. New York City Administrative Code Title 28 Chapter 3 Article 308 – 28-308.1 Definitions
For condominiums, the board of managers is responsible for compliance, not individual unit owners. The audit and retro-commissioning cover base building systems only, not equipment owned by tenants or unit owners.2NYC Department of Buildings. General Local Law 87 Questions
DOB publishes an annual Sustainability Law Covered Buildings List drawn from Department of Finance records. The 2026 list was published in March 2026.3NYC Department of Buildings. Energy Audits and Retro Commissioning
When Your Report Is Due
The filing year is determined by the last digit of your tax block number. If your tax block ends in 6, your Energy Efficiency Report is due in 2026. If it ends in 7, you file in 2027, and so on. The deadline within your assigned year is December 31.4New York City Administrative Code. New York City Administrative Code 28-308.4 – Energy Efficiency Report Required
The cycle repeats every ten years. A building whose tax block ends in 6 files in 2026 and again in 2036. Cooperative corporations that own multiple covered buildings on different tax blocks may consolidate all their reports into a single filing due in the latest year any individual building would otherwise have been due.3NYC Department of Buildings. Energy Audits and Retro Commissioning
What the Energy Audit Covers
The audit is an ASHRAE Level II assessment of all base building systems, led by a registered design professional — either a Licensed Professional Engineer or a Registered Architect. Its scope reaches heating, cooling, ventilation, lighting, domestic hot water, and the building envelope.5NYC Department of Buildings. Local Law 87/09 Energy Audits and Retro-commissioning Information Session
The auditor documents current energy consumption and identifies energy conservation measures that could reduce waste. Each measure must be quantified so the owner can weigh the potential savings against the cost. The law requires the analysis itself; actually implementing the recommendations is not mandatory.
What Retro-commissioning Covers
Retro-commissioning targets existing equipment and confirms it runs as designed. The agent tests sensors, valves, dampers, steam traps, control panels, and other components in the HVAC and service hot water systems, and verifies that boilers and chillers operate within original design specifications.5NYC Department of Buildings. Local Law 87/09 Energy Audits and Retro-commissioning Information Session
The retro-commissioning agent must be a registered design professional, a certified refrigerating system operating engineer, or a licensed high-pressure boiler operating engineer, and must hold (or work under someone who holds) a recognized commissioning certification.6NYC.gov. Local Law 87 Outreach and Training
Unlike the audit, retro-commissioning requires that deficiencies be corrected, not merely noted. A miscalibrated thermostat or leaking steam trap has to be fixed before the report is filed. The agent records the initial condition, the fault, and the verified repair.
Filing the Report and What It Costs
The audit and retro-commissioning results are combined into a single Energy Efficiency Report filed through DOB NOW: Safety, the Department of Buildings’ online portal. No paper submission is accepted.7NYC Department of Buildings. DOB NOW Safety
Filing requires signatures from the property owner and the registered design professionals involved, certifying that the information is accurate. The initial filing fee is $375. Extension requests cost $155, and amendments cost $145.8NYC Department of Buildings. Energy Audits and Retro Commissioning Violations
The filing fee is the smaller expense. Hiring the professionals is the larger one. A Level II energy audit in New York City typically runs $0.10 to $0.30 per gross square foot, depending on building complexity, system age, and how accessible equipment is for inspection. For a 100,000-square-foot building, that puts the audit alone in the range of $10,000 to $30,000. Retro-commissioning costs vary more, because scope depends on what the agent finds. A well-maintained property may need only minor calibration; a neglected one can require significant repairs before the report can be filed.
After submission, DOB reviews the report and returns either an acceptance or a deficiency notice through the portal. A deficiency notice means corrections are needed before the report counts as compliant.
Deferrals, Extensions, and Performance Exemptions
Two situations let an owner defer the Energy Efficiency Report to the next ten-year cycle:
- New construction: the building is less than 10 years old at the start of its first assigned compliance year and all base building systems comply with the NYC Energy Conservation Code.
- Substantial rehabilitation: a registered design professional certifies that the building underwent a major renovation within the prior ten years and all base building systems meet the Energy Conservation Code as it applied to new buildings on or after July 1, 2010, or on the date of the rehabilitation, whichever is later.
To claim either deferral, owners file Form EER1 with supporting documentation by December 31 of the assigned year. The deferral fee is $375, the same as a standard report.9NYC Department of Buildings. Filing for an Energy Efficiency Report Deferral
The Commissioner can also grant up to two one-year extensions to owners who made a good-faith effort but couldn’t finish on time. Extensions do not push back future filing deadlines. Owners facing financial hardship may apply for annual extensions.4New York City Administrative Code. New York City Administrative Code 28-308.4 – Energy Efficiency Report Required
Strong energy performance can excuse the audit portion. An ENERGY STAR label from the EPA covering at least two of the three years before the filing deadline, or a recent LEED Certification for Existing Buildings, may qualify. Timing and documentation requirements apply, so review current DOB guidance before assuming an exemption applies.
Penalties for Missing the Deadline
Missing December 31 triggers a Major (Class 2) violation. The penalty is $3,000 for the first year the report is overdue, with $5,000 added for each additional year. The fines accumulate. An owner three years past due faces $13,000 in penalties on top of still needing to complete and submit the report.8NYC Department of Buildings. Energy Audits and Retro Commissioning Violations
DOB will not accept an outstanding Energy Efficiency Report until all penalties have been paid. Filing late without resolving the fines first does not clear the obligation.8NYC Department of Buildings. Energy Audits and Retro Commissioning Violations
Contesting a Violation
Owners who receive a violation have the right to a hearing at OATH, the Office of Administrative Trials and Hearings. You may bring an attorney (representation is not required), present witnesses, and submit evidence. If the hearing officer dismisses the violation, no penalty is imposed, though DOB retains the right to re-inspect, reissue the violation, or appeal.10NYC Department of Buildings. OATH Hearings and Penalties
Owners found in violation after the hearing can appeal in writing without another personal appearance. One warning matters more than the rest: failing to appear at a scheduled hearing results in an automatic finding of “in violation” and a default penalty five times the standard amount. On a $3,000 first-year penalty, that pushes the fine to $15,000.10NYC Department of Buildings. OATH Hearings and Penalties
How Local Law 87 Relates to Local Law 97
Local Law 87 does not satisfy Local Law 97, which sets carbon emission caps for large buildings starting in 2024 and phases in stricter limits over time. The two laws reach similar buildings but do different work: LL87 identifies energy waste and forces broken equipment to be repaired, while LL97 penalizes emissions above a set cap regardless of how well systems are maintained.
The audit data does help with LL97 planning. Energy conservation measures identified in an LL87 report often map onto the upgrades a building will need to meet LL97 targets, especially for the stricter 2030 limits. For most owners, LL87 compliance functions best as an early step in a longer decarbonization plan rather than a one-time paperwork exercise.