Local Law 87: Energy Audits & Retro-Commissioning

Updated for 2025 — Local Law 87 (LL87) requires large buildings in New York City to undergo periodic energy audits and retro-commissioning to evaluate and improve the performance of base building systems. Passed as part of the Greener, Greater Buildings Plan, LL87 is a foundational policy for reducing energy waste and aligning older properties with NYC’s long-term climate goals.

In 2025, buildings with tax block numbers ending in “5” are required to file their Energy Efficiency Report. Here’s what property owners need to know.

What Is Benchmarking?

LL87 requires qualifying buildings to conduct a comprehensive energy audit and perform retro-commissioning on core mechanical systems every ten years. The goal is to ensure that energy-consuming systems are operating efficiently—and to help owners identify low-cost upgrades that improve performance.

The results of both processes must be documented in an Energy Efficiency Report (EER) submitted to the Department of Buildings.

Who Must Comply with LL87?

Local Law 87 applies to:

Individual buildings in NYC that are 50,000 square feet or larger
Two or more buildings on the same lot that together exceed 100,000 square feet
Condo/co-op associations with over 100,000 square feet of combined floor area

LL87 applies to commercial, residential, institutional, and mixed-use buildings within the five boroughs.

Compliance Timeline for 2025

January 1 – December 31, 2025 – Buildings with tax block numbers ending in “5” must complete and file their LL87 Energy Efficiency Report
Filing Deadline: December 31, 2025
Extensions: Available if requested before the deadline through DOB’s formal process

The compliance cycle repeats every 10 years based on the last digit of the building’s tax block number.

Key Requirements of LL87

To remain compliant, building owners must complete the following steps:

Perform an Energy Audit
A detailed assessment of how the building uses energy, covering:

Heating and cooling systems
Lighting and electrical systems
Hot water and envelope performance
Operational load schedules and equipment usage

The audit must be conducted by a qualified energy auditor and must identify cost-effective energy conservation measures.

Conduct Retro-Commissioning
A hands-on inspection and fine-tuning of base building systems to ensure optimal performance. This includes:

Adjusting control sequences and calibrating equipment
Verifying ventilation and airflow
Identifying and resolving operational inefficiencies
Ensuring schedules, sensors, and thermostats are functioning properly

Submit an Energy Efficiency Report
The completed audit and retro-commissioning results must be compiled into an EER and submitted to the DOB. This report must be signed by a registered design professional or certified retro-commissioning agent.

Why LL87 Matters

LL87 provides a critical check-up on building performance—and a roadmap for operational improvements. When executed correctly, LL87 can:

Reduce utility costs and equipment wear
Extend the life of major building systems
Improve comfort and air quality for tenants
Uncover opportunities for capital planning and carbon reduction
Prepare buildings for emissions compliance under Local Law 97

Failure to comply may result in DOB violations and penalties, including a $3,000 fine for the first year and $5,000 for each additional year the report is missing.