New York City’s Local Law 97 (LL97) has set ambitious targets for reducing greenhouse gas emissions from buildings, presenting both challenges and opportunities for building owners and managers. Among the most promising developments is the Beneficial Electrification (BE) Credit, a game-changing incentive designed to accelerate the transition from fossil fuel systems to efficient electric alternatives. This credit offers substantial financial benefits, potentially reducing or even eliminating LL97 fines for buildings that act strategically and swiftly.

TL;DR of the BE Credit

Pros:

• Provides a huge incentive for early movers that dramatically reduces LL97 compliance costs
• Allows for pragmatic, real estate-friendly approaches such as partially electrifying a building rather than requiring full electrification

Cons:

• Understanding and optimally leveraging the BE credit is complicated, making it difficult to compare compliance options

Basics of the Credit

• Purpose: Encourages building owners to replace fossil fuel systems with efficient electric equipment
• Eligibility: Applies to installations of electric heat pumps for heating, cooling, and hot water
• Double Credit: Equipment installed before 2027 qualifies for double the credit
• Compliance Periods: Can be used for both 2024-2029 and 2030-2034 LL97 compliance periods
• Fine Reduction: Can significantly reduce or potentially eliminate LL97 fines
• Requirements: Electric equipment must meet specific efficiency standards
• Strategic Value: Offers flexibility in long-term compliance planning and decarbonization strategies

How Momentum^TM Helps

Momentum^TM software stands out as a crucial tool in this landscape, providing the insights and capabilities needed to navigate LL97 compliance and optimize the use of BE Credits. With features like energy usage assessment, compliance forecasting, and electrification planning, Momentum^TM enables building owners to accurately calculate potential savings, identify the most impactful electrification opportunities, and develop comprehensive, long-term decarbonization strategies. For instance, one Momentum^TM customer just identified an opportunity to reduce the cost of construction to comply with LL97 requirements by 10x from taking full advantage of the Beneficial Electrification credit.

The benefits of using Momentum^TM for LL97 compliance and BE Credit optimization extend beyond mere calculations. The software offers time and cost savings through streamlined project management and facilitates data-driven decision-making. Moreover, by enabling building owners to stay ahead of regulatory requirements and improve their properties’ energy efficiency, Momentum^TM helps enhance asset value and appeal to environmentally-conscious investors and tenants.

Time to act is now!

As the 2027 deadline for double BE Credits approaches, the time to act is now. By leveraging Momentum^TM software to guide your decisions, you can confidently move forward with a strategy that maximizes BE Credits, minimizes fines, and positions your building for a sustainable, compliant future. Don’t wait to start planning your electrification strategy – with MomentumTM</sup>, you have the power to turn LL97's challenges into opportunities for innovation, efficiency, and long-term value creation.