NYC Building Energy Grade (Local Law 33)
NYC HVAC regulations and compliance guidance for property owners.
NYC HVAC regulations and compliance guidance for property owners.
Local Law 33 of 2018 requires buildings over 25,000 gross square feet in New York City to publicly display an energy efficiency letter grade near their primary entrance, similar to restaurant health inspection grades. The grades are based on Energy Star scores derived from the EPA's Portfolio Manager benchmarking tool, which buildings are already required to use under Local Law 84. Buildings scoring 85 or above receive an A grade, 70-84 receive a B, 55-69 receive a C, and below 55 receive a D. Buildings that fail to submit benchmarking data receive an F. The letter grade must be displayed by October 31 each year and must be posted in a prominent location visible to the public. This transparency measure is designed to motivate building owners to invest in energy efficiency improvements, as a poor grade can affect tenant perception, property values, and marketability. HVAC system performance is typically the most significant factor influencing a building's energy score.
Failure to post the required energy grade results in a civil penalty of $1,250 per quarter the grade is not displayed. Failure to benchmark under LL84 (which feeds into LL33 grades) carries its own penalties of $500 per month. An F grade due to non-reporting is publicly visible and can negatively impact property value and tenant relations.
We help buildings improve their Energy Star scores through targeted HVAC upgrades, system optimization, and building automation improvements. Our team can analyze your benchmarking data, identify the most impactful efficiency measures, and implement changes that move your grade from a C or D to an A or B.
Your building's energy grade is derived from its Energy Star score, which is calculated through EPA's Portfolio Manager based on your building's energy consumption data compared to similar buildings nationally. The score ranges from 1 to 100, with 50 representing median performance. The DOB converts this score to a letter grade: A (85+), B (70-84), C (55-69), or D (below 55).
Yes, some improvements can significantly impact your score within one benchmarking cycle. Optimizing HVAC schedules, fixing steam traps, calibrating sensors, improving boiler combustion efficiency, and upgrading lighting controls are relatively quick wins. Larger improvements like equipment replacement or envelope upgrades yield greater long-term results.
The energy grade must be posted within 10 feet of the primary public entrance to the building, in a location visible to passersby. The grade must be displayed using the official DOB-issued label, which is a standardized format similar in concept to the restaurant health grade cards. The label must remain posted year-round until replaced by the next year's grade.
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