There are a host of potential benefits that come with decarbonizing buildings in the long run. Reduced energy use helps to save money. But New York City’s building owners are understandably concerned about how the coming implementation of Local Law 97 is going to impact their properties – and their bottom line. On the one hand, it is undeniably daunting to consider all the factors involved in updating a large building’s HVAC system, as well as the other parts of the building that may affect HVAC’s cost and effectiveness. But on the other hand, simply wishing this problem away could result in fines and being left with a shorter runway to ultimately come into compliance. And usually the faster something has to be done, the more expensive it is.
Bringing a building into compliance with Local Law 97 can be an opportunity to learn more about how the building functions day-to-day, and decarbonization may not have to be an all-out retrofit that an owner might be dreading. In some cases, simply changing the process for how a building’s HVAC system is managed can be a big part of the solution, before one gets to installing up-to-date equipment. It’s also important to remember that complying with the law may not be the same in every case to converting a building to all-out electrification – there are a wealth of options that may fit a specific building’s needs and keep costs manageable.
And there comes the crux of the matter: nearly every building is unique. Maybe the building envelope should be a primary focus, because it may be letting too much heat enter or escape. Or maybe adding smart meters can help to reduce electricity waste – changing the calculus for what kind of additional equipment needs to be installed. The bottom line is that owners should take this opportunity to get to know their own buildings, which will prepare them not only for Local Law 97 but for future city, state or federal regulations.
There are two important first steps to take once a building owner has decided to confront the challenges posed by Local Law 97:
1) Empower a decision-maker in the organization to address this issue. It should likely be someone who has information on the broader plans for the building (when there are plans to sell, remodel, shift occupancy, etc).
AND
2) Engage an Energy / Carbon Reduction General Consultant who can provide a comprehensive view of the considerations at stake – not merely a vendor who will fulfill requests as directed.
With this team in place, it is likely that you can proceed to developing a plan for compliance while helping to alleviate fear of making unnecessarily expensive or poorly planned decisions. For instance, a decision-maker in the organization should know the occupancy rate of the building, and the planned/expected occupancy rate going forward. A timeline for decarbonization could potentially be extended if a building owner expected to be more liquid in a few years time.
But what value will an Energy / Carbon Reduction General Consultant bring in this process? While this article has already laid out some of the specific ways each building’s needs can vary, it has only scratched the surface. Engaging an expert may help ensure a plan is developed that best suits the needs of the building while being cognizant of the building owner’s future intentions. Here are some of the key questions any building owner should be asking of their potential consultant:
- What is their experience and presence specifically in the NYC market?
- Do they have a business model for precisely this kind of planned retrofitting work?
- How have the personnel who will execute this project been trained and what comparable projects have they worked on?
- What is the order of operations that need to be undertaken from an initial review of the building all the way through a completed project?
- Does the consultant have creative ideas for how to finance the project that account for the building owner’s specific economic circumstances?
One thing is certainly true: getting it right with respect to Local Law 97 is hugely important for building owners. There is no need to panic – and there is no need to overspend for a result that isn’t mandated by law, or even worse, that could run afoul of new regulations coming down the road. As is often the case, proper planning may present huge benefits in the long run.
This article has been composed by the Decarbonization team at TRANE Technologies. As a world leader in creating comfortable, sustainable, and efficient environments, TRANE will gladly meet with NYC building owners to discuss whether our Energy / Carbon Reduction Consulting Services meet their needs. Click here to reach out.
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