Starting in 2020, under Local Law 33 of 2018, NYC buildings over 25,000 square feet will need to post an energy efficiency letter grade, A-F, in a "conspicuous" location.

A building's grade will be based upon the information reported in its annual Local Law 84/133 benchmarking report to the City. The website through which the benchmarking information is reported, EPA's Portfolio Manager, will calculate an EnergyStar score 1-100 based on the energy usage and building data reported. The higher the EnergyStar score, the higher the letter grade. And vice versa.

In speaking with a lot of my clients, there's a mix of different feelings about these letter grades. Some people care. Some don't. Some think the grade will make a building more or less attractive to potential tenants or buyers. Some think it doesn't make a difference.

What is clear is that the LL84/133 energy benchmarking data which many buildings have been submitting for nearly a decade is no longer going into a black hole. It is being used to make a judgement on your building, one which could potentially have an effect on its value.

No matter how you do your annual benchmarking filings(with us, with another company, or by yourself), it is worth taking the time to understand how your buildings annual benchmarking reporting informs your EnergyStar score which in turn informs your letter grade. Whoever does your benchmarking should understand and be able to articulate to you how the algorithm works, how your grade is determined, and what you can do about it.

Please don't hesitate to call me at 212-650-1591 x 112 to discuss further. We handle NYC energy and environmental compliance for nearly 3000 buildings.