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
HVAC | Dec 13, 2022
Energy Management Institute launches online tool to connect building owners with HVAC contractors
The National Energy Management Institute Inc. (NEMI) along with the Biden administration’s Better Air in Buildings website have rolled out a resource to help building owners and managers, school districts, and other officials find HVAC contractors.
Green | Dec 9, 2022
Reaching carbon neutrality in building portfolios ranks high for organizations
Reaching carbon neutrality with their building portfolios ranks high in importance among sustainability goals for organizations responding to a Honeywell/Reuters survey of senior executives at 187 large, multinational corporations. Nearly nine in 10 respondents (87%) say that achieving carbon neutrality in their building portfolio is either extremely (58%) or somewhat (29%) important in relation to their overall ESG goals. Only 4% of respondents called it unimportant.
Green | Dec 9, 2022
Newly formed Net Zero Built Environment Council aims to decarbonize the built world
Global management consulting firm McKinsey recently launched the Net Zero Built Environment Council, a cross-sector coalition of industry stakeholders aiming to decarbonize the built world. The council’s chief goal is to collaboratively create new pathways to cut greenhouse gas emissions from buildings.
Energy Efficiency | Dec 6, 2022
Washington state’s Building Code Council mandates heat pumps in all new residential construction
The Washington State Building Code Council has voted to require heat pumps for all new residential construction starting in July 2023. The new mandate has drawn criticism over concerns that it will add costs to housing construction, especially given current supply chain challenges for heat pumps.
Geothermal Technology | Dec 6, 2022
Google spinoff uses pay-as-you-go business model to spur growth in geothermal systems
Dandelion Energy is turning to a pay-as-you-go plan similar to rooftop solar panel leasing to help property owners afford geothermal heat pump systems.
Contractors | Dec 6, 2022
Slow payments cost the construction industry $208 billion in 2022
The cost of floating payments for wages and invoices represents $208 billion in excess cost to the construction industry, a 53% increase from 2021, according to a survey by Rabbet, a provider of construction finance software.
Multifamily Housing | Dec 6, 2022
Miami-Dade County will allow accessory dwelling units
Commissioners in Miami-Dade County, Fla., recently voted to allow many single-family homeowners to rent out accessory dwelling units on their property. Many homeowners will be allowed to rent out garages, separate quarters, or detached backyard apartments if they meet certain standards including for lot size and parking.
Multifamily Housing | Dec 6, 2022
Support for multifamily rent control legislation grows as metros face big rent hikes
Steep rent increases during the pandemic recovery have spurred support for rent control legislation in several areas of the country.
Mass Timber | Dec 1, 2022
Cross laminated timber market forecast to more than triple by end of decade
Cross laminated timber (CLT) is gaining acceptance as an eco-friendly building material, a trend that will propel its growth through the end of the 2020s. The CLT market is projected to more than triple from $1.11 billion in 2021 to $3.72 billion by 2030, according to a report from Polaris Market Research.
Retail Centers | Nov 29, 2022
'Social' tenants play a vital role in the health of the retail center market
After a long Covid-induced period when the public avoided large gatherings, owners of malls and retail lifestyle centers are increasingly focused on attracting tenants that provide opportunities for socialization. Pent-up demand for experiences involving gatherings of people is fueling renovations and redesigns of large retail developments.
