Energy Compliance Local Law 97 SmartKit AI NYC Carbon Compliance

LL97 First Year Complete. What Smart Buildings Are Doing Next

LL97 First Year Complete. What Smart Buildings Are Doing Next

LL97 First Year Complete. What Smart Buildings Are Doing Next

Jan 20, 2026

Gowthamram Manohar, Zohra Roy, Angela Wang and Alex Zafran

Energy Compliance Local Law 97 SmartKit AI NYC Carbon Compliance

At Logical Buildings, our mission is to help New York City property owners and managers navigate Local Law compliance with confidence, clarity, and data-driven results that deliver real energy and financial savings.

As we look back on the 2024–2025 compliance cycle, we’re proud to share the measurable impact our team delivered across New York City’s energy and carbon regulations, including Local Laws 84, 87, 88, and 97 — not only through filings, but through carbon tracking, system diagnostics, and targeted energy improvements that materially reduced emissions and penalties.

Compliance at Scale — Built on Data and Action

During the 2024–2025 fiscal year, Logical Buildings submitted more than 1,000 Local Law compliance filings on behalf of building owners across New York City. These submissions helped properties remain in good standing with city regulations and avoid more than $2.33 million in projected penalties for the 2024–2029 period alone.

But filings alone don’t eliminate risk.

Through a portfolio-wide carbon and energy review, powered by SmartKit AI®, our team continuously tracked energy usage, identified high-emissions drivers, and flagged buildings at risk of exceeding emissions limits — often years before penalties would take effect.

As part of this process, we also corrected foundational data issues. In particular, addressing Local Law 84 benchmarking errors and completing Gross Floor Area (GFA) studies resulted in:

  • 1.46 million square feet of misreported building area corrected

  • $2.33M in reduced projected penalties (2024–2029)

  • $6.13M in reduced projected penalties (2030–2034)

  • $8.4M+ total in avoided projected penalties

These outcomes underscore how accurate data combined with early intervention and strategic action can fundamentally change a building’s compliance and financial trajectory.

Delivering Real Financial Savings

Beyond filing submissions, Logical Buildings provides comprehensive compliance support that addresses the root causes of penalties and long-term risk.

Using real-time energy and carbon tracking, our team identifies inefficient systems — such as outdated heating plants, oil-fired boilers, or poorly controlled equipment — and works with owners to prioritize high-ROI efficiency projects that meaningfully reduce emissions and operating costs.

Through detailed energy analysis, benchmarking support, documentation review, and proactive strategy development, we helped multifamily and commercial buildings avoid fines by resolving issues related to:

  • Inefficient heating systems and fuel types

  • Lighting and submetering verification

  • Emissions recalculations

  • Extension filings and corrective reporting

  • Utility data discrepancies that masked true performance

In addition to one-time filings, our clients benefit from ongoing, year-round visibility into compliance performance, including:

  • Real-time energy and emissions tracking through SmartKit AI®, providing continuous insight into annual performance relative to emissions limits and potential fines

  • Portfolio-level compliance accountability, ensuring every building is actively tracked, reviewed, and submitted on time

  • Long-term decarbonization planning, training, and strategic support to help owners stay ahead as emissions limits tighten in future compliance periods

Impact Across NYC Buildings

Our work spans a wide range of property types and use cases across New York City. Recent examples include:

Upper West Side Residential Tower: From $100,000 in Annual Fines to Zero

Utility records incorrectly reported steam usage for a building without steam service, resulting in over $100,000 in projected penalties. Logical Buildings coordinated with the utility to correct the error and remove the inaccurate data.

Result: projected penalties eliminated entirely.

Mid-Rise Commercial Building: Data Verification Saves $15,000 Annually

Utility data initially projected approximately $15,000 in Local Law 97 penalties. Logical Buildings reviewed the benchmarking data, worked directly with the utility to resolve a discrepancy, and updated 2024 records with actual usage, not estimated usage.

Result: projected penalties reduced to $0.

Midtown East Multifamily High-Rise: $100,000+ in Energy Upgrades Avoided

An affordable housing building exceeded its 2030 emissions limit and was initially required to comply through 13 Prescriptive Energy Conservation Measures (PECMs), estimated to cost more than $100,000. Logical Buildings recommended a Gross Floor Area study, which increased the building’s emissions cap by approximately 10% and significantly reduced the exceedance.

Result: The remaining gap was addressed through offsets, allowing the building to proceed under the Performance Pathway and avoid unnecessary capital expenses.

Heating System & Fuel-Switching Interventions — Eliminating Future Risk

In several cases — including large residential and commercial properties with inefficient heating systems or oil-fired boilers — Logical Buildings identified carbon risk years ahead of enforcement and helped owners plan and execute targeted efficiency upgrades.

Result: permanent emissions reductions and elimination of future Local Law 97 penalties.

What Our Clients Say

“It has been a pleasure working with Logical Buildings. Their team provided me with all the guidance I needed as I navigated Local Law 97 and energy filings for the first time. They are friendly and helpful professionals. I highly recommend them to anyone looking for a knowledgeable and supportive team.”
Amanda Peon, Compliance Associate, Rose Associates

Looking Ahead

As New York City’s carbon and energy regulations continue to evolve, compliance is no longer a one-time exercise — it is an ongoing operational, technical, and financial strategy.

Logical Buildings remains committed to helping owners track carbon accurately, identify risk early, and invest in the most cost-effective solutions to reduce emissions and avoid penalties — today and in future compliance cycles.

We look forward to continuing to support NYC property owners through upcoming compliance periods and beyond.

Learn how buildings are staying compliant and avoiding penalties by joining our webinar on
Tuesday, 2/3 at 11am EST.