NYC Local Law 87 Compliance
Energy Audits, Retro-Commissioning, and EER Filing
Local Law 87 requires certain New York City buildings to complete an energy audit and retro-commissioning study once every ten years and file an Energy Efficiency Report (EER) with the NYC Department of Buildings.
If your building is subject to LL87, compliance involves more than a one-time inspection. It is a structured evaluation of how your building’s systems operate, where energy is being used inefficiently, and what operational improvements are required before filing.
Local Law 87 at a Glance
- Applies to buildings over 50,000 gross square feet
- Required once every 10 years
- Includes an energy audit and retro-commissioning
- Requires filing an Energy Efficiency Report (EER)
- Penalties start at $3,000 and increase to $5,000 for each additional year until filed
- Filing deadline: December 31 of assigned year
Which Buildings Must Comply
Local Law 87 applies to:
- Buildings over 50,000 gross square feet
- Two or more buildings on the same tax lot with a combined area over 100,000 square feet
- Two or more condominium buildings governed by the same board with a combined area over 100,000 square feet
The filing year is based on the last digit of the building’s tax block number and occurs once every ten years. For example, if your building’s tax block ends in 5, your Local Law 87 report is due in years ending in 5 (such as 2025, 2035, and so on).
What Local Law 87 Requires
To comply with LL87, buildings must complete three components:
Energy Audit
A comprehensive evaluation of building systems and energy use, including identification of energy conservation measures.
Retro-Commissioning (RCx)
An assessment of how systems are currently operating, with testing, adjustments, and corrections to improve performance.
Energy Efficiency Report (EER)
A formal report submitted to the NYC Department of Buildings documenting the audit, retro-commissioning work, and compliance status.
Under DOB rules, Local Law 87 applies to base building systems only, not tenant-owned or exclusively tenant-maintained systems. The energy audit must meet at least the scope of a Level II energy audit, and the Energy Efficiency Report must be prepared and filed by qualified professionals performing the energy audit and retro-commissioning work.
What an Energy Audit Includes
An energy audit evaluates how your building consumes energy and where improvements may be possible. The scope typically includes:
- Heating systems and distribution
- Cooling and ventilation systems
- Domestic hot water systems
- Lighting and controls
- Electrical systems
- Building envelope conditions, including walls, roofs, and windows
The audit identifies energy conservation measures (ECMs), which may include equipment upgrades, control improvements, or operational changes.
What Retro-Commissioning Includes
Retro-commissioning focuses on how existing systems are functioning today, rather than replacing them.
Typical retro-commissioning work includes:
- Testing equipment and system performance
- Verifying controls and sequences of operation
- Identifying and correcting operational deficiencies
- Adjusting systems to improve efficiency and consistency
Unlike capital upgrades, retro-commissioning focuses on optimizing existing systems and addressing issues that can be corrected through calibration, repair, or control changes.
When to Start Local Law 87 Compliance
LL87 compliance is not a last-minute filing. Most buildings should begin the process 12 to 18 months before the filing deadline to allow time for:
- Site inspections and data collection
- Analysis of system performance
- Completion of retro-commissioning corrections
- Preparation and submission of the EER
Many buildings underestimate the level of coordination required for Local Law 87, particularly for retro-commissioning work that involves building staff, controls, and system adjustments. Starting early helps avoid delays and gives owners more time to address required corrections before filing.
What Happens if You Miss the Deadline
Failure to submit an acceptable Energy Efficiency Report (EER) under Local Law 87 is a Major (Class 2) violation and can result in:
- A $3,000 civil penalty for the first year
- A $5,000 civil penalty for each additional year until the report is submitted
- Potential complications with refinancing, insurance, or other building-related transactions
The NYC Department of Buildings also states that it will not accept an outstanding EER submission until outstanding penalties are paid in full.
How Local Law 87 Relates to Other NYC Energy Requirements
Local Law 87 is one part of a broader set of NYC energy requirements.
It is often coordinated with:
- Local Law 84 (annual energy and water benchmarking)
- Local Law 97 (building emissions limits and reporting)
- Local Law 88 (lighting upgrades and submetering)
Findings from LL87 audits are often incorporated into capital improvement planning, helping owners prioritize system upgrades over time.
How RAND Supports LL87 Compliance
RAND provides complete Local Law 87 services, from initial evaluation through filing, with coordination across our MEP and Energy Services teams for broader upgrades and long-term planning.
This includes:
- Energy audits and retro-commissioning studies
- Identification of practical energy conservation measures
- Coordination with building staff and management
- Preparation and submission of the Energy Efficiency Report (EER)
- Integration with broader energy planning, including Local Law 97 compliance
Frequently Asked Questions
How often do buildings need to comply with Local Law 87?
Every ten years, based on the last digit of the building’s tax block.
Do all recommended upgrades need to be completed?
No. Energy conservation measures are recommendations, but retro-commissioning corrections must be completed prior to filing.
How long does the LL87 process take?
The process typically takes several months, depending on building size, complexity, and access.
Is Local Law 87 connected to Local Law 97?
Yes. While separate laws, LL87 audits often inform planning for LL97 compliance and emissions reduction.
If your building is approaching its Local Law 87 filing year, early planning can help avoid delays and allow time to address issues identified during the process.
Contact RAND to discuss your building and compliance timeline.
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