Understanding NYC Local Law 87

The deadline to reach compliance with New York City Local Law 87 is fast approaching, and building owners need to understand what’s expected of them. Ensuring compliance with local laws and ordinances is a top responsibility for property managers. By staying on top of compliance requirements ahead of time, you can avoid expensive fines and penalties.

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What is NYC Local Law 87?

Local Law 87 is a New York City building law that dictates each building over 50,000 square feet must submit to an energy audit and retro-commissioning every 10 years. Even if you have two or more separate buildings on one campus that individually are less than 50,000 square feet, you may still need to comply with this law if the buildings equal more than 100,000 square feet together. Once you have completed the energy audit and retro-commissioning process, you will need to compile an Energy Efficiency Report (EER) and submit it to the NYC Department of Buildings no later than December 31 of your building’s indicated reporting year.

The Energy Audit

This first step analyzes the building’s equipment and reviews its energy expenses for the past two years. HVAC, lighting, and electrical systems are all audited during this process. These audits are designed to identify steps that building owners can take to reduce energy usage and related costs. Not only is this beneficial for the environment, but it also benefits property managers’ bottom line.


Following the energy audit, the retro-commissioning process involves diagnosing and repairing equipment for optimal energy efficiency for the entire building. After your equipment has been repaired and replaced, an EER including the proper certification documentation will be filed electronically with the city.

When is Compliance With NYC Local Law 87 Required?

Compliance with NYC Local Law 87 is determined by the last digits of your building’s block number. The following illustrates when each block number must satisfy compliance guidelines:

Last Digit(s) of Block NumberCompliance Deadline
8December 31, 2019
9December 31, 2020
10December 31, 2021
11December 31, 2022
12December 31, 2023

Failure to meet compliance by these deadlines will result in significant fines and penalties. For the first year of non-compliance, you will be fined $30,000. From there, you’ll incur an additional $6,000 fine for every year you remain non-compliant. In severe instances, you may even have your construction permits rejected.

Filing for Local Law 87 Compliance

Initial filing costs for Local Law 87 compliance start at as little as $375, with $155 in fees added for extension requests and $145 in fees for necessary report amendments. Compared to the costs associated with non-compliance, it’s a small price to pay to remain in good standing with the city, save on energy costs, and avoid having your construction permits rejected.

AFGO Mechanical for Your NYC Local Law 87 Compliance Needs

Are you among the many NYC commercial building owners who need to maintain compliance with Local Law 87? AFGO Mechanical can help provide the retro-commissioning services you need to ensure your systems are up to current industry standards. From your HVAC equipment to commercial refrigeration, our team can help improve energy efficiency through our comprehensive commercial heating, cooling, and refrigeration solutions.

Contact us to get started with your commercial HVAC retrofitting services today!