What is Local Law 33
Starting in 2020, Local Law 33 mandates buildings to publicly display the letter grade reflecting their benchmarking results. The letters must be displayed in a conspicuous location near the building’s public entrances – similar in practice to restaurants presenting their sanitary inspection letters.
Why it Matters
The goal of the program is to create transparency to potential tenants about the performance of the building.
The grades are assigned based on Energy Star scores:
• A: 90 or above
• B: 50 - 89
• C: 20 - 49
• D: 0 - 19
• F: buildings that fail to submit required benchmarking information
• N: buildings exempted from benchmarking
The specific grades are important because companies that are Energy Star Certified (with a score of 75 or higher) may still receive a “B” grade.
It’s unclear how much of an effect the letter grades will have on tenant’s expectations, but it’s clear that owners and operators who want an “A” grade will need to adopt advanced submetering solutions to ensure their performance remains optimized.