Large Building Owners Must Post Updated Energy Grades by Dec. 31

If you own a large building, you may be required to post your Building Energy Efficient Rating Label by Dec. 31 [originally Oct. 31]. The label, which displays your building’s energy efficiency rating in the past year, must be publicly displayed as a part of a larger effort to reduce carbon emissions in NYC under Local Law 95 of 2019. This law’s aim is to increase transparency between owners and tenants, and provide incentives for owners to invest in green energy. Low grades may discourage tenants, whereas high grades prove a building’s dedication to sustainability and the city’s long-term goals.

The grade is derived from data gathered from the NYC Benchmarking Law, which requires owners of large buildings to measure their energy and water consumption annually. The law requires building owners to enter their annual energy and water use in the U.S. Environmental Protection Agency’s (EPA) online tool, ENERGY STAR Portfolio Manager and use the tool to submit data to the city.

The Portfolio Manager is used across the country to benchmark building energy consumption. This online tool generates an ENERGY STAR score ranging from zero to 100 that compares energy use in similar buildings in similar climates.

In New York City, this score is converted to a letter grade, ranging from A to D. Energy grades are based on a building’s aggregate energy consumption data. These statistics include energy consumption from individual apartment units, mechanical equipment required to operate the building, lighting throughout all common areas of the property, as well as any additional components within the property such as ground-floor retail, medical centers, community facilities, etc.

Posting Deadline

No later than Dec. 31, 2025 [Oct. 31 for all other years], owners of buildings over 25,000 square feet or owners of multiple buildings on a lot that totals 100,000 square feet or more that appear on the NYC Benchmarking Covered Building List must post a building energy efficiency rating label in a conspicuous location near each public entrance to their buildings. The list of covered buildings can be found at www.nyc.gov/assets/buildings/pdf/benchmarking_cbl_compliance_2025.pdf.

The building energy efficiency rating label will include the energy efficiency score of the building, which is calculated through the Portfolio Manager, and an energy efficiency rating of A through F, as required by Local Law 33 of 2018 and Local Law 95 of 2019. Failure to post the label within 30 days after Dec. 31 may result in the imposition of a civil penalty of $1,250.

Accessing and Printing the Label

The energy efficiency grade is made available in the DOB Now public portal through the Building Energy Efficiency Rating label on Oct. 1. Owners can access and print an updated label by clicking the Building Energy Efficiency Rating option under “additional tools” at www.nyc.gov/dobnow. The label may be printed in color or in gray scale. DOB suggests framing or laminating the label, but this isn’t required as long as all information included in the label is clearly visible for the entire year.

Once printed, the label must be displayed either externally or internally in a conspicuous location near each public entrance, so it’s visible to the public. The label must be at a vertical height no less than 4 feet and no more than 6 feet from the ground or floor. The label must not be defaced, marred, camouflaged, or hidden from public view. The label must be displayed year-round and replaced each year with the latest issued version.

The energy label will include both a letter grade and the building’s energy efficiency score. An energy efficiency score is the ENERGY STAR Rating that a building earns using Portfolio Manager to compare building energy performance to similar buildings in similar climates. As per Local Law 95, grades based on ENERGY STAR energy efficiency scores are assigned as follows:

• A—score is equal to or greater than 85;
• B—score is equal to or greater than 70 but less than 85;
• C—score is equal to or greater than 55 but less than 70;
• D—score is less than 55;
• F—no data submitted;
• N—building exempted from benchmarking or not covered by the ENERGY STAR program.

Exemptions from Benchmarking

Buildings exempted from benchmarking or not covered by the ENERGY STAR program include:

• Multifamily buildings with fewer than 20 units, enclosed parking, or other property types that aren’t eligible to receive a 1 to 100 ENERGY STAR score;
• Some mixed-use buildings—a multi-use property can receive the ENERGY STAR score, but these two conditions apply: (1) 75 percent of the gross floor area of the property must be comprised of property types that are eligible for an ENERGY STAR score; and (2) more than 50 percent of the gross floor area must be comprised of one eligible property type (excluding parking); and
• Buildings that contain a data center, television studio, and/or trading floor that together exceed 10 percent of the gross floor area.