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NYC Council looks for carveouts to building emissions law as owners face costly upgrades
By
Rosemary Misdary
Published Jun 12, 2024
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By
Rosemary Misdary
Published Jun 12, 2024
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Co-op and condo owners say New York City's landmark climate law is saddling them with bills worth tens of thousands of dollars to fund environmentally friendly upgrades, which is fueling a push to soften restrictions on building emissions.
A new bill in the City Council would ease penalties for some owners whose buildings don’t meet emission goals set out in Local Law 97, which is part of a plan to make the city carbon neutral by 2050. The climate law sets aggressive emissions restrictions on buildings, which account for nearly 70% of the city’s carbon pollution.
Environmental advocates say the legislation would undermine the law's fundamental purpose of forcing building owners to go green. But owners of low- and middle-income households are welcoming the ease in requirements, and they argue that under the current law, it makes more economic sense to pay the fines — even at their current rates — rather than the steep costs of upgrading their buildings.
Owners at the Queensview co-ops in Astoria, Queens say the law will cost each resident $51,000 on average to shift to electric heat and ovens, among other renovations. Fully electrifying the building would cost $60 million. The cost is so high that residents, who are mostly retirees, say it's more feasible to pay the $1,000 yearly fine set out in the buildings law.
“There's no possible way that we could raise the $60 million,” said Alicia Fernandez, the treasurer of Queensview, which has 726 co-op apartments.
“It’s really promoting paying the fines,” she said. “The easy way out for all these buildings is … just pay the fine and let’s kick the can down the road.”
The proposed change to Local Law 97 would ease penalties and emissions requirements for 10% of the buildings covered under the climate rule. Buildings like Queensview would be able to factor in greenspace when calculating the property’s emissions. Such a measure would benefit the co-op complex, which sits on 10 acres of greenspace.
But advocates and elected officials such as Comptroller Brad Lander say modifying the regulations would undermine the law.
“The stakes are very high here,” said Pete Sikora, a campaign director at New York Communities for Change. “It would gut the world's most important city-level project.”
Local Law 97 went into effect at the beginning of this year. It requires buildings larger than 25,000 square feet to reduce carbon pollution by 40% by 2030, and become emissions-free by 2050. Property owners who can’t comply could potentially face millions of dollars in fines per year.
City Councilmember Linda Lee, who represents eastern Queens, is the lead sponsor of the proposed amendment to Local Law 97. She’s secured 24 other sponsors – just one shy of a majority in the Council.
“A lot of the folks who live in the co-ops and condos are already working-class, middle-income folks,” Lee said. “It's people that are teachers, labor union workers, seniors who are downsizing and on fixed incomes, as well as a lot of young families that are just starting off.”
The Real Estate Board of New York, which supports the bill, said it had not conducted a comprehensive analysis of costs associated with compliance of Local Law 97. But a spokesperson said that Queensview’s experience was representative of complaints the group has heard from other co-op owners.
The amendment, which was reintroduced by Lee last month, would radically change the fines Queensview faces. Currently, the fines kick in next year. Once the law’s emissions requirements are fully in effect by 2050, the building could face fines of more than $1 million per year.
Fernandez said navigating compliance and financing for Local Law 97 is daunting for co-op and condo boards.
A city-funded loan program called PACE – Property Assessed Clean Energy – is meant to help building owners finance the upgrades.
But Queensview can only take out a maximum of $40 million in loans, and half of that amount has already been used for other upgrades to comply with Local Law 97. The co-op needs an additional $40 million – double what it is eligible to receive from the loan program in order to electrify heat, hot water and stoves. The project would require removing the existing gas infrastructure and running electrical conduits to each home.
Advocates are concerned that softening the law would undermine its central goal of averting the worst effects of climate change. Queensview currently emits 4,400 tons of carbon, which is roughly equivalent to the yearly emissions of 880 automobiles.
“The bill eliminates penalties for a large number of co-ops and condos and garden apartments, so it makes the law effectively voluntary because there's no penalty,” Sikora said. “If there's no penalty, there's no need to follow it.”
The bill, Intro 772, has yet to be debated in committee.
Tagged
buildings
Health and Science
new york city
queens
Politics
Rosemary Misdary
Rosemary is health & science reporter. Got a tip? Email [email protected] or Signal 646-544-9524.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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