What NYC Developers Need To Know About Looming Big Energy Code Change

"Now, some projects might be influenced to look at the performance pathway instead of just going prescriptive for existing buildings. Any updates or variances filed with the building department after that specific date have to be in accordance with the new energy code."

Melisa Yepes-Schaefer, an expert at Goldman Copeland, a consulting engineering firm based in NYC, also echoed that the updates to prescriptive pathway will present the biggest shift for developers.

"New requirements will include expanded energy data collection through detailed metering, along with smarter and more intentional controls for building equipment," she told GlobeSt.

"These controls allow systems such as HVAC and ventilation to operate more predictively and efficiently, aligning energy use with actual building demand."

Plus, a blower door test is required under prescriptive pathway now, as is providing documented proof of proper thermal bridging, according to Maggio.

"It's really significant for the architects," Maggio said of the new code.

Navigating Other Headwinds

In the past, a strategy that engineers would use was over-sizing boilers to make sure that heating demands could be met. Now, however, heat pumps are required and the cost to upsize is much higher, according to Maggio.

"You start looking at not only the upfront cost of that equipment, but also what it costs to operate; pound for pound per unit of energy," Maggio explained.

"If you purely match it to what your old boiler system was doing, you're going to be fairly over-sized."

That's why putting more emphasis on tightening building envelopes is more important than ever now, Maggio added. This includes sealing air leaks, evaluating thermal bridges and air infiltration. That helps keep heat inside the building, followed by sizing the "heat pump system to just maintain that equilibrium."

However, there is at least one new plus to the code: Maggio expects developers to save on utility costs as a result of the city's push for a greener community, despite more upfront investment now versus the past.

New Code Doesn't Change Heat Pump Demand

The trend for HIGHMARK over the past decade has been a "wave" toward heat pump technology, designed for space and water heating. According to Maggio, that hasn't changed, nor does he expect a shift even once the NYC energy code updates in the coming days.

"The energy code requirements are really just going to help us make sure that we deploy these heat pump systems in a more thought-out way," he explained.

Maggio again expects more of a focus on tightening building envelopes, hoping that "will mean more properly sized and ultimately more efficient and more affordable building systems."

Additionally, he expects the new energy code to be easier for developers to comply with than Local Law 97, a sweeping green reform in the city that aims to cut building emissions by 40 percent by 2030.

"Compliance will increasingly depend not just on installing efficient equipment, but on how effectively building systems are managed, monitored, and coordinated over time," Yepes-Schaefer added to those thoughts on the update to the city's energy code.

A Bonus to Explore

And lastly, Maggio said that local developers shouldn't sleep on the Ultra Low Energy Buildings program bonus, which grants developers a five percent floor area increase in their buildings if they are fully electric and exceed the energy efficiency code by at least 15 percent.

"That's definitely something to look out for if any developers are considering using that Ultra Low Energy Buildings bonus for their floor area ratio; they definitely need to make sure that anything they're designing is going to be in compliance and then exceeding that energy efficiency requirement, if they want to hang on to that," he noted.