Local Law 97 for Hotels: Limits, 2030 and Penalties
Short answer: Hotels have a Local Law 97 limit of 0.00987 tCO2e per square foot a year now and 0.00526 from 2030, about 47% lower. Every ton over the limit costs $268 a year.
Figures for 2030 and later are projections at today's energy use, not a bill or a forecast of what the city will charge.
The limit for hotels
Hotels are in the transient residential group, R-1. A hotel's limit is its gross floor area times the figure below.
| Group | 2024–2029 | 2030–2034 | Drop |
|---|---|---|---|
| R-1 (hotels) | 0.00987 | 0.00526 | 47% |
Example: a 200,000 square foot hotel
Hotels run around the clock and use a lot of hot water, so heating and hot water plants matter most.
| Period | Emitted (tCO2e) | Limit (tCO2e) | Over (tCO2e) | Penalty a year |
|---|---|---|---|---|
| 2024–2029 | 1,664 | 1,974 | 0 | $0 |
| 2030–2034 | 1,232 | 1,052 | 180 | $48,146 |
The hotel is under its limit now and over it from 2030, on the same energy use. Each ton over costs $268 a year.
What the data shows
We have estimated 501 hotels. About 22% would owe a penalty from 2030 at current energy use, with a middle estimate of $30,280 a year. Hotel estimates on this site are marked for review while we confirm how DOB maps hotels to a limit group.
Where hotels usually look first
- Hot water and laundry, often the biggest gas load.
- Heating and cooling plant controls and schedules.
- Guest-room controls, so empty rooms are not conditioned.
See the cheapest fixes first and the 2030 penalty.
Frequently asked questions
What is the Local Law 97 limit for hotels?
Hotels fall in the transient residential group (R-1). Its limit is 0.00987 tCO2e per square foot a year for 2024 to 2029 and 0.00526 from 2030, a drop of about 47%.
How is a hotel's penalty calculated?
Emissions minus the limit, times $268 per ton. Emissions come from the hotel's yearly electricity, gas, oil and steam use. The limit is floor area times the limit per square foot.
What about a hotel with a restaurant, a ballroom or shops?
Mixed-use buildings add up a limit for each use, so the other uses are counted at their own limit per square foot.
When do hotels face stricter limits?
From January 1, 2030, when the second set of limits starts.
Sources
More Local Law 97 guides
- What is the NYC Local Law 97 penalty?
- How much will my building owe in 2030?
- Local Law 97 penalties by building type
- How to reduce Local Law 97 emissions
- Local Law 97 deadlines and reporting dates
- The biggest Local Law 97 penalties in NYC
- Local Law 97 for co-ops and condos
- Can renewable energy credits cut your Local Law 97 penalty?
- Local Law 97 Article 321: the pathway for affordable and rent-regulated buildings
- How to file your Local Law 97 report
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