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The NYC Grid System: How You Can Help the City Reduce Electrical Grid Strain and Improve Sustainability

With the passing of Local Law 97, property managers must prioritize environmental initiatives and upgrades by 2024 or risk penalties and fines. Compliance with the new law is part of the state and city’s efforts to reduce greenhouse gas emissions by 80% by 2050.

Without essential changes, the NYC grid system risks significant power strain and inadequate production for all communities. Discover what you need to know to manage your properties and remain compliant with these regulations.

The NYC Grid System and the Necessity of Change

Climate Crises and Fossil Fuel Dependency

Nearly 40% of New York State’s total GHG emissions come from NYC, and about 70% of citywide emissions stem from buildings, including businesses and residential structures. To achieve the goals set out in the 80×50 pledge, the city will need to cut emissions from all sources by 44.5 million metric tons of carbon dioxide equivalent. This is equal to the annual emissions for the state of Connecticut.

GHG emissions stem from various sectors throughout the city, including transportation, waste disposal and removal, electricity, and gas. The primary activities that allow cities to function require fossil fuels. In NYC, the demand is heavy, with over 80% of activities requiring fossil fuel combustion.

Strain on the System Underscores Need for Change

The strain on the NYC grid system is already too much. As the largest urban area in the state, the demands on the system because of climate crises, like heat waves, often result in rolling blackouts and service interruptions. While some power and service interruptions result from strategic planning, others are unexpected and dangerous.

The city requires much from property managers and business owners to protect the most vulnerable communities and ensure grid strain doesn’t become a hazard. While the request for institutional changes may seem unfair and overwhelming, it is a vital step toward countering the effects of climate change and its impact on critical city infrastructure.

Property Owners and LL97 Compliance

LL97 Phases in Caps on Carbon Emissions

In 2019, New York City passed LL97, a local ordinance to ensure the city is on target with the larger state emissions goals and projections. The law will phase in carbon caps through 2050, driving toward a net zero emissions NYC grid system. Failure to comply with the law will provoke hefty fines and penalties for property managers.

The carbon caps will vary based on property type, size, and compliance year. For example, in 2024, a multifamily property must comply with a cap of 6.75 kg per sq ft; an office building must comply with a cap of 7.58 kg per sq ft. Each drops in 2030 to 3.35 kg per sq ft and 2.69 kg per sq ft, respectively.

Tools and Investments To Comply With the New Law

The city is aware of the challenges to property owners. Property managers can use renewable energy generation credits or GHG offsets to help meet targets. Also, some property types, primarily those classified as affordable or income-restricted housing, will have more leeway, allowing for a more gradual transition to compliance.

Besides RECs and GHG offsets, building owners can install solar panels or battery storage systems onsite. The upgrades help relieve pressure on the NYC grid system while helping properties comply with new regulations. Still, even with credits and cost offsets, installing new energy systems is expensive, and the savings provided by such systems take time to accrue.

Sustainability Measures and Reduced Fossil Fuel Dependency

Practical Ways To Improve Property Sustainability

Based on current estimates, 20% of buildings are not on track to meet 2024 benchmarks, and over 70% are not on track to meet caps for 2030. Property managers must work on reassessing energy consumption patterns, finding extra and superfluous expenses, and instituting aggressive energy-saving strategies.

While the cost of solar panels and battery backup systems may raise fears of profit loss, not every change requires extensive spending. Property owners can look for more cost-effective solutions to move closer to compliance with NYC grid system projections and changes.

Benchmarking Current Consumption Patterns Through Energy Audits

Instituting effective change requires understanding how a property uses energy. For example, building tenants and occupants account for up to 60% of a building’s energy use.

Educating tenants about responsible energy practices, such as turning off lights when not in use or powering down appliances, can dramatically affect energy consumption patterns. Property owners can perform energy audits to learn more about building consumption patterns.

An energy audit is a property assessment typically performed by a professional contractor. When done correctly, this provides an accurate measurement of how well a building or portfolio of properties uses energy and can help produce a roadmap to future savings. Property owners can use tools like Energy Star Portfolio Manager to track consumption patterns and the effects of changes.

Maintaining and Retrofitting Critical Systems

Maintaining, optimizing, and retrofitting existing systems is one of the most cost-effective methods to reduce energy consumption and strain on the NYC grid system. Property managers should invest in updating electrical systems and mechanical maintenance to ensure all systems function as intended. Also, they should invest in things like:

• – LED lighting
• – Smart meters
• – HVAC upgrades
• – Waste strategy (recycling, single-use plastics ban, composting, etc.)

Building owners can also optimize the performance of existing systems by making minor adjustments to critical systems like lighting, heating, and ventilation. These systems account for up to 75% of a property’s primary energy use. Adjusting lighting and HVAC use based on occupancy rate can significantly improve energy consumption.

NYC Grid System and Compliance Issues

Contact Bolt Electric for Help

Property owners have a lot to consider regarding compliance with new laws and GHG emission pledges. Electricity is a significant pull on the NYC grid system, and outdated systems require more energy than necessary.

For advice about system upgrades or assessments, call Bolt Electric at 212-434-0098. We will help property managers and building owners find cost-effective solutions to meet upcoming energy caps through maintenance, retrofits, and system upgrades.