IREON Insights: How multifamily owners can avoid emissions penalties ahead of Local Law 97 and earn revenue through grid services - by Jeff Hendler
This year, New York building owners are grappling with the emergence of the city’s groundbreaking energy emissions ruling, Local Law 97. An estimated 20% of the city’s buildings larger than 25,000 s/f are expected to be fined for their energy usage come January 2024. These numbers will only continue to grow, with more than 80% of New York’s buildings slated to be fined in 2030.
New York buildings account for 70% of the city’s carbon emissions, yet while the new regulation will impact all local buildings, residential properties will face the strictest rulings as they are the largest contributors of energy consumption. With less than a year before Local Law 97 begins penalizing multi-family buildings for these carbon emissions, owners must begin understanding ways they can better manage their buildings’ energy usage and how they can incentivize and encourage their tenants to lower their individual consumption. Building owners are solely responsible for each of their properties’ carbon emissions, along with each of the residents that occupy them and the fines that accompany the emissions they produce.
How can owners reduce carbon penalty risk and earn revenue from grid services?
Fortunately, there have been recent grid service upgrades and technological advances throughout the city to help owners lower their emissions. In fact, Con Edison just completed a multi-billion infrastructure upgrade to install new smart meters in every building in New York City and Westchester, enabling owners with the ability to see real-time energy usage data that allows them to track each buildings’ carbon footprint. Thanks to these improvements, owners can lower their carbon emissions penalty risk in the common areas they manage and engage their residents to lower their energy consumption, thus reducing owner exposure to financial penalties.
How can owners incentivize residents to use less energy?
Owners can incentivize their residents to enroll in utility sponsored grid service programs that pay users to use less energy when energy consumption is highest. The strategy allows residents and tenants enrolled to receive notice before upcoming energy peak times so they can take steps to reduce energy use, such as switching off unnecessary lights or adjusting a thermostat. This process can be even more streamlined in apartments, condos, and co-ops that have smart home devices, which can be adjusted automatically in response to a grid event. By taking action during these peak times, residents and tenants earn cash back based on their conservation.
Owners can also take advantage of rebates within the Inflation Reduction Act (IRA), to invest in energy efficiency capital improvements with smart load management technology to earn more cash. Integrating grid service revenue programs with utility, state, and federal rebate programs provides building owners the path to lower energy costs and carbon emissions building wide for owners and their residents. Owner and residents interests are now aligned with little or no cost to use less energy and carbon.
Where can you get started?
Local multifamily residents can now voluntarily participate in grid service cash paying program events by turning to energy management applications, such as smart building software developer, Logical Buildings’ first-of-its-kind app, GridRewards. GridRewards is an easy-to-use, free tool that users can download and instantly implement with their utility company. The app notifies users when utility-wide usage is high and informs them to reduce the amount of energy they are consuming. Compared to firing up a fuel-intensive Peaker Plant that seeps carbon dioxide and other pollutants into the environment with normal utility management, GridRewards users create a clean virtual power plant that can perform the duties of a Peaker Plant without the added waste.
As local orders continue to roll out, sustainability within multifamily buildings will only continue to be reinforced with larger penalties, with achievement only being reached through consistent lifestyle changes and adoption of smart technology. Those wishing to receive the full benefits of participating in GridRewards this year will need to enroll by April 1, 2023. The app is free to download and there’s no cost to enroll or participate.
Want to learn more? Join our webinar on March 7th at 11am EST to get enrolled in DR programs ahead of summer 2023 or email us at [email protected].
Jeff Hendler, CEO and founder of Logical Buildings, Livingston, N.J. and a member of IREON.