Local Law 97

Preventing Blackouts: The Brooklyn and Queens Energy Storage Incentive

What is the BQESI?

As the climate changes, summer is becoming more and more energy intensive. When temperatures rise, people turn on their air conditioners, straining the electrical grid, which is already becoming overburdened by the increasing “electrification” of our society—cars, stoves, and more, which once didn’t rely on the electrical grid, now make significant demands of it.

With this reality, the risk of there not being enough electricity available to go around during periods of peak demand is greater than ever. Those times, usually in the afternoons and evenings in the summer, risk seeing rolling blackouts if the grid’s capacity can’t expand enough to accommodate the high demand.

 

To avoid blackouts and an overburdened grid, utilities like New York’s ConEdison are experimenting with a wide variety of programs to encourage people to modulate their electricity use in ways that help the grid stay afloat. The Brooklyn and Queens Energy Storage Incentive (BQESI) is one such program. It encourages the development of battery storage systems that can provide the grid with backup power during times of peak demand.

 

The Specifics

As the name suggests, the BQESI targets large swaths of Brooklyn and Queens that ConEdison has deemed in need of additional storage capacity.

A map, provided by ConEdison, of the Brooklyn Queens Demand Management (BQDM) region, for which the BQESI is applicable.

In these neighborhoods, ConEdison will pay developers to build and dispatch up to 5 MW of capacity in battery storage systems. The systems must be submitted to ConEdison for approval before the end of the year, 2023, and must be operational by May 1st, 2026. The batteries, under the terms of the program, must be available for ConEdison’s use during the Summer Performance Period, from May through September, when electricity is generally in highest demand, for 10 years.

 

While energy developers like Ecogy Energy will be the direct recipients of ConEdison’s funding, any property owner within the parameters of the program can profit from it, because Ecogy will rent available space within the program boundaries at standard commercial real estate rates. The battery storage systems that will be employed all have approval from the FDNY.

 

For more specifics on the program, visit ConEdison’s webpage on the subject

 

Should You Participate in the Program?

For property owners within its boundaries, the program offers an excellent opportunity to monetize otherwise unused space, where, for instance, a couple unused parking spots or a dumpster might currently sit. But some properties within the program area are better contenders for participation in the program than others.

 

Ideal properties already have large energy usage, guaranteeing that the grid connections at the site are strong enough to accommodate the addition of the battery storage system. Additionally, large energy users are well suited for the program because during times of peak demand, the energy supplied by the battery will not have to travel far in order to reduce strain on the grid. 

Ideal contenders to work with Ecogy in taking advantage of the opportunity will not have the background or expertise to develop the battery storage solutions themselves. Ecogy will develop, finance, own, and operate the battery storage systems, and the property owner will be paid for the use of the space.

 

The program will be of additional benefit to some site owners if their facilities are subject to Local Law 97. The emissions reductions mandated by that law can be achieved, at least in part, by hosting battery storage systems on or off site. During times when the energy mix being supplied to the grid is composed of relatively high proportions of renewable energy, the battery can be charged. Then, during periods when fossil fuels predominate the energy supply, the battery can be discharged, averting the use of the difference in proportions of fossil fuels between the two periods. This process can potentially aid in preventing some large facilities, like apartment buildings, from racking up expensive fines.

 

Why Ecogy?

If your property meets the above criteria, then the BQESI is for you. Ecogy will finance, install, own, and operate the battery, and you will reap the benefits in the form of rent payments for your otherwise unused space. 

Brooklyn is Ecogy’s home, so we have the local know-how to be your trusted partner, as we have been for a wide variety of organizations, ranging from affordable housing communities to Fortune 500 corporations. We specialize in the development and operation of distributed energy resources—not just limited to solar—of which battery storage is a major one. We are committed to social impact and to helping organizations meet their sustainability goals.

 

To begin the time sensitive process of utilizing the BQESI to make money, to meet your sustainability goals, and to support grid resiliency, contact us.

Local Law 97: Curbing NYC Building Emissions

host SOLAR ON YOUR ROOFTOP.
SAVE YOUR BUSINESS FROM PENALTIES.

New York City property owners have felt new regulatory pressures in recent months due to a recent Building Emissions Reduction bill passed by the City council. The law, officially titled Local Law 97 (“LL97”) or the Climate Mobilization Act, sets a carbon emissions cap for buildings with a gross area greater than 25,000 sqft.

While the legislation will help reduce the city’s air and climate pollution particularly in industrial areas, it does leave the commercial real estate industry uncertain as to how their businesses will be affected by it.

The team here at Ecogy has compiled a list of answers to your most frequently asked questions.

Clouds of smoke rise from industrial buildings in Queens, NY. If these emissions aren’t curbed in the next four years, property owners will face penalties.

Source: Public Good

What does Local law 97 actually regulate?

The goal of LL97 is to achieve a 40% reduction of citywide emissions by 2030. The City Council found that the most practical way to achieve this is by enforcing a carbon emissions cap on buildings with a gross area greater than 25,000 sq ft.

Emissions will be measured in tons of “Carbon Dioxide Equivalents” (tCO2e). Your tCO2e will be determined from a number of factors including electricity, natural gas, fuel oil, and district steam usage. This will be determined by a yearly energy assessment by the Office of Building Energy and Emissions Performance.

The emissions cap will vary based on two factors: gross area and occupancy zone. This means that larger buildings will have more room to emit.

For more information on your building’s use and occupancy classification, please click here.

What will it cost me?

Business owners could be liable for almost $150,000 in penalties from 2024-2029 and nearly $800,000 from 2030-2034 as penalties ramp up.

This estimate and calculator are strictly for informational purposes only. Ecogy does not hold any claims or responsibilities for the accuracy of this estimate.*

When will the bill take affect?

While property owners are encouraged to begin reducing their emissions as soon as possible, penalties will not begin until January 1, 2024. Starting then, all buildings which have emissions caps will have their energy usage audited.

What Are the penalties for non-compliance?

For every tCO2e that a building emits over their emissions cap, a penalty of no more than $268 will be charged to the property owner.

Thus, buildings in occupancy groups with lower emissions caps will face larger fines. These include manufacturing, retail, business, and residential facilities.

is solar an appropriate alternative for emissions?

Yes! LL97 considers “solar photovoltaics” a clean distributed energy source. A property owner will be able to receive a deduction from their emissions limit requirement when demonstrating the purchase of renewable energy credits or through the consumption of clean distributed energy resources.

how should building owners prepare for the implementation of local law 97?

Ecogy believes that two of the best ways to offset fees are through on-site solar production and energy monitoring.

Solar generation can offset your building’s emissions, helping you avoid penalties while providing you with an additional revenue stream from Ecogy’s site lease payments.

Because Ecogy can fully finance, own, and operate your rooftop system, we have every incentive to use the highest quality technology and equipment in order to maximize the generation from your rooftop.

Additionally, Ecogy is pleased to offer next-generation commercial energy monitoring services through our Econode product.

Using real-time monitoring software, we can help you track your building’s inefficient energy usage and streamline your energy audit experience, leading to increased long-run savings.