One Bryant Park, also known as the Bank of America Tower, in Manhattan faces an estimated $2.4 million in annual fines when New York City’s York’s Local Law 97 goes into effect.
The potential hefty levy on this property is ironic given that it was certified LEED Platinum after it opened in 2010. An in-depth article at Bloomberg.com about this predicament illustrates the complexities owners face in addressing the law, which imposes carbon caps that are backed up by fines for non-compliance.
Passed in 2019, the law is a sweeping measure establishing emissions limits for almost 50,000 of the city’s largest buildings. The owners of an estimated 20% of these office buildings, hotels, and multifamily properties will likely face fines in 2024 when the law goes into effect. Many more buildings would face fines in 2030, when the caps will be lowered by 40%.
Part of the issue for the Bank of America Tower is a density of employees with heavy computer usage—at least on some floors—that use a lot of electricity. The owner says Local Law 97 is deeply flawed because it doesn’t distinguish between different densities and usages of properties and points out that the terms of the lease with the bank preclude him from limiting their power usage.
The Bank of America Tower had some impressive green features when it was built: a natural gas-fueled cogeneration plant for electricity that uses heat from the combustion process for additional power to operate HVAC systems, a cooling system that uses ice made overnight when power demand is lower, and a green roof. Today, when the ultimate goal is carbon neutrality, though, these features do not create the desired impact.
The details of the law are still being worked out, though, and that may bode well for the owner. There is support from some city officials to make allowances for buildings such as the Bank of America Tower that time their energy use.
Related Stories
| Jan 8, 2013
Congress passes Drywall Safety Act
Congress recently passed the Drywall Safety Act; President Barack Obama is expected to sign it soon.
| Jan 4, 2013
AGC economist says "fiscal cliff" deal will give construction a boost
The deal in Congress to avoid going over the so-called fiscal cliff "should encourage many businesses to go ahead with projects they have held in reserve," said Ken Simonson, chief economist of the Associated General Contractors of America.
| Dec 27, 2012
New York City law tracking building energy use yields surprises
A legally mandated report that tracks the energy use of New York City's largest buildings provides details about which buildings are achieving higher-than-expected energy efficiency, such as the Chrysler and Empire State buildings, as well as those that are performing poorly.
| Dec 27, 2012
New Jersey considers green roof mandate for state buildings
The New Jersey legislature is considering a bill that would require installation of green or blue roofs on state buildings that are at least 15,000 sf.
| Dec 13, 2012
So-called fiscal cliff is already affecting construction jobs, AGC finds
In November, the construction industry shed 20,000 jobs and its unemployment rate reached 12.2%, according to an analysis by the Associated General Contractors of America.
| Dec 13, 2012
New York City poised to enact recycling mandate for multi-family dwellings
New York City lags behind other large cities in recycling with only 15% of residential trash being recycled. A new bill passed by the City Council aims to improve the rate by changing how new apartment buildings are constructed.
| Nov 29, 2012
New York contractors say they will pay tax despite a court ruling that the tax is unconstitutional
The New York Building Congress says it will voluntarily pay a tax declared unconstitutional by the courts because, it says, the money is vital to maintaining the city’s transportation infrastructure.
| Nov 26, 2012
Minnesota law to spur development, job creation produced few jobs
Legislation that allowed local governments to direct excess property tax dollars from tax-increment financing districts into other private developments was supposed to kick-start construction hiring in Minnesota.
| Nov 16, 2012
Voters approve fewer construction ballot measures in 2012 than in 2008
Voters passed fewer ballot measures related to construction projects this year than they did in 2008, according to an analysis by the Associated General Contractors of America.
