New York City’s Local Law 97 (LL97) is a groundbreaking initiative to reduce greenhouse gas emissions (GHG) from the city’s largest buildings, which collectively account for more than two-thirds of its total emissions. Covering approximately 50,000 properties larger than 25,000 square feet, the law mandates incremental emissions reductions through compliance periods to achieve net-zero emissions by 2050. While the law provides multiple compliance pathways, such as energy efficiency retrofits and purchasing renewable energy credits, many building owners may face external or financial constraints that inhibit compliance. In these cases, they may qualify for a 320.7 adjustment. This new adjustment was detailed in a guide released by the NYC Accelerator in late March 2025.
What is the 320.7 Adjustment?
The new 320.7 adjustment enables building owners to obtain temporary adjustments to their emissions limits when faced with external or financial constraints that impede their ability to comply with LL97. The adjustments can extend up to three years for external constraints and one year for financial constraints.
Types of Buildings Covered
LL97 applies to most buildings exceeding 25,000 square feet in NYC. Specific building types include:
- Industrial and Manufacturing (I&M) Buildings: These buildings often house specialized equipment that cannot be easily decarbonized due to technological limitations. These include buildings classified noted for the Building Code occupancy groups F or H and NAICS sectors 31, 32, or 33, encompassing manufacturing processes. They also often rely on specialized, fixed equipment that cannot be easily decarbonized with current technologies.
- Hospitals: Facilities subject to health and safety regulations requiring equipment that limits emissions reductions. Institutional Group I-2 hospitals may apply for adjustments if specific health and safety regulations necessitate the use of equipment that impedes compliance with emissions limits.
- Landmark Buildings: Properties protected under historic preservation laws that may face challenges in implementing energy efficiency retrofits. Some landmark buildings may be exempt if they face historic preservation regulations that restrict retrofitting. Owners must demonstrate that they have exhausted all viable alternatives for reducing emissions.
FYI: We’ve previously explored how solar can work for historic buildings—check out that post here.
Qualifications for External Constraints
Buildings may qualify for adjustments due to:
- Infeasibility: If compliance with emissions limits is impractical due to specialized equipment or fixed processes.
- Legal Provisions: Compliance may be impossible due to other legal requirements affecting the building.
Owners must demonstrate that they have taken all reasonable steps to reduce emissions, such as implementing energy efficiency measures.
Qualifications for Financial Constraints
Buildings may qualify if they are facing significant financial challenges, which might include:
- Economic Hardship: Financial metrics, which reflect industry standards, indicate that compliance is financially unfeasible.
- Engagement with Financial Resources: Owners must actively pursue financing opportunities and incentives designed for energy reduction.
Steps to Apply for a 320.7 Adjustment
Building owners should follow these general steps to apply for an adjustment:
- Engage with NYC Accelerator: Owners work with an assigned Account Manager for personalized guidance and technical assistance, including a “Building Needs Assessment.”
- Verify Circumstances:
- For external constraints – business owners should work with a Registered Design Professional (RDP) to document infeasibility.
- For financial constraints – business owners must collaborate with a Certified Public Accountant (CPA) to demonstrate financial hardship.
- The Account Manager will verify both processes once completed.
- Obtain Adjustment Process Attestation (APA): This form, provided by the NYC Accelerator, confirms the owner’s involvement in identifying relevant measures and resources.
- Submit the Adjustment Application: Complete the 320.7 adjustment application, including the APA form and any necessary documentation, to the NYC Department of Buildings (DOB).
For a more detailed explanation of the adjustment and required documentation, please download the NYC Accelerator guide below.
Required Documentation for External and Financial Constraints
Building owners must file their adjustment applications with the annual building emissions report and Professional Attestation form by an RDP. Below is a list of the required documentation:
- Building Eligibility: Confirmation that the building existed or had a construction permit issued before November 15, 2019.
- Annual Emissions Report: Submitted by LL97 requirements.
- APA Form: Verification from NYC Accelerator detailing the owner’s efforts to pursue incentives and financing.
- GHG Offsets and Renewable Energy Credit Purchase (REC): Proof of purchase demonstrating the maximum amount of GHG offsets or RECs allowed under LL97.
- Technical Documentation: A detailed explanation of the external constraints and a decarbonization plan.
Looking Ahead
The 320.7 adjustment offers crucial relief for industrial and manufacturing property owners struggling to comply with LL97 due to external or financial constraints. By understanding the eligibility criteria and application process, building owners can better navigate the challenges posed by emissions regulations and work toward sustainable compliance. Catalyst Power stands ready to support building owners in navigating the complexities of Local Law 97 and the 320.7 adjustment process. Let’s make meaningful progress in reducing your building’s emissions. Contact an Energy Expert today!
