For property managers, co-op boards, and commercial building owners across Brooklyn, Manhattan, Queens, the Bronx, and Staten Island, understanding how NYC building energy grades are calculated is no longer optional.
It affects public perception, compliance standing, and relies on the same benchmarking data used to evaluate emissions under Local Law 97.
Let’s break down exactly how these grades are determined — and why they matter.
What Is an NYC Building Energy Grade?
NYC building energy grades are required under Local Law 95. The law mandates that most buildings over 25,000 square feet post an annual energy efficiency grade at or near the main entrance.
The grade is assigned by the NYC Department of Buildings (DOB) and reflects the building’s energy performance compared to similar buildings nationwide.
The grading scale is simple:
- A – High energy performance
- B – Above average
- C – Average
- D – Below average
- F – Failing performance or failure to comply
The grade is updated annually and is based on benchmarking data submitted through NYC Local Law 84.
If benchmarking is not filed properly or on time, a building may receive an “F” regardless of how efficient it actually is.
How Are NYC Building Energy Grades Calculated?
NYC building energy grades are calculated using performance metrics derived from ENERGY STAR Portfolio Manager — the same federal benchmarking platform required under Local Law 84.
Several core factors determine the final grade.
1. ENERGY STAR Score
For many building types, the primary determinant is the ENERGY STAR score.
This score ranges from 1 to 100 and compares your building’s energy performance against similar buildings nationwide.
- A score of 75 or higher generally qualifies for an “A.”
- Scores between 60 and 74 typically result in a “B.”
- Scores between 50 and 59 often result in a “C.”
- Scores below 50 may lead to a “D.”
If no score is generated due to building type limitations, other metrics such as Energy Use Intensity are used.
2. Site Energy Use Intensity (EUI)
Energy Use Intensity measures how much energy a building uses per square foot annually.
It is calculated by dividing total annual energy consumption by gross floor area.
Lower EUI typically indicates better performance.
For building types without a national ENERGY STAR comparison score, EUI becomes a more significant grading factor.
3. Weather Normalization
Portfolio Manager adjusts performance metrics to account for seasonal heating and cooling demands.
A harsh winter in Manhattan or a hot summer in Queens will not automatically penalize your building. The system normalizes energy usage to account for climate variability.
4. Data Accuracy from Local Law 84 Benchmarking
All grading calculations depend on the accuracy of data submitted through Local Law 84 benchmarking.
Under Local Law 84 in 2026, covered buildings must complete the following by May 1 each year:
- Enter whole-building energy consumption data
- Verify building size and occupancy information
- Submit the report through Portfolio Manager
- Confirm submission through NYC’s BEAM portal
If this data is incomplete, incorrect, or not submitted at all, the building’s grade can suffer — regardless of actual performance.
This is why accurate Local Law 84 compliance directly affects your NYC building energy grade.
What Law Requires Energy Grades to Be Posted?
Local Law 95 requires NYC building energy grades to be printed and posted in a visible location near the main entrance.
The grade must be:
- At least 8.5 inches by 11 inches
- Clearly visible to the public
- Updated annually
Failure to post the grade can result in violations and penalties from the Department of Buildings.
For co-ops, condos, and commercial buildings, the grade is not optional or internal. It is a public-facing compliance requirement.
What Does Each NYC Energy Grade Really Mean?
Understanding the implications of each grade helps clarify risk.
Grade A
An A signals strong energy performance compared to similar buildings nationwide. It often indicates efficient HVAC systems, optimized lighting, and careful monitoring of usage.
Grade B
A B reflects above-average performance. While solid, there may still be opportunities for energy optimization.
Grade C
A C indicates average energy performance. Many buildings in NYC fall into this range.
Grade D
A D suggests below-average efficiency. It may signal outdated mechanical systems, inconsistent benchmarking data, or high fuel consumption.
Grade F
An F can mean one of two things:
- The building performed extremely poorly.
- The building failed to comply with Local Law 84 benchmarking.
In many cases, an F is not about inefficiency — it’s about missed or incorrect filings.
Why NYC Building Energy Grades Matter
Some owners treat the posted grade as cosmetic. It is not.
1. Public Transparency
Tenants, investors, and prospective buyers can see your building’s grade immediately. In competitive boroughs like Brooklyn and Manhattan, public perception matters.
2. Financing and Investment Scrutiny
Lenders and investors increasingly review environmental performance data. A poor grade may trigger questions about future capital expenditures or compliance risk.
3. Connection to Local Law 97 Emissions Limits
Local Law 97 imposes emissions caps on large buildings.
The benchmarking data used to calculate energy grades also feeds emissions reporting. While an energy grade is not the same as an emissions compliance score, both rely on accurate Local Law 84 submissions.
Inaccurate benchmarking can create downstream compliance issues.
How to Improve Your NYC Building Energy Grade
Improving your building’s grade requires both operational upgrades and administrative accuracy.
Start with benchmarking precision.
Verify Your Local Law 84 Submission
- Confirm square footage is accurate
- Ensure all utility meters are included
- Check occupancy classifications
- Validate shared property data
Even minor data errors can lower an ENERGY STAR score.
Evaluate Mechanical Systems
Older boilers, inefficient HVAC systems, and inconsistent controls can increase energy usage. Upgrading to high-efficiency equipment or optimizing existing systems often improves performance metrics.
Improve Lighting Efficiency
LED retrofits and lighting controls reduce electricity consumption significantly.
Monitor Fuel Consumption
Buildings using heating oil or natural gas should evaluate consumption trends annually. Sudden usage spikes may indicate mechanical inefficiencies.
Consider Building Automation
Real-time monitoring systems can help regulate temperature, ventilation, and lighting based on occupancy and usage patterns. The most important step, however, is ensuring that Local Law 84 benchmarking is accurate and submitted correctly every year.
Frequently Asked Questions About NYC Building Energy Grades
Is Local Law 84 the same as Local Law 95?
No.
Local Law 84 requires annual benchmarking.
Local Law 95 requires posting the energy grade based on that benchmarking data.
What happens if I miss the Local Law 84 deadline?
Failure to file benchmarking by May 1 can result in quarterly penalties up to $2,000 annually and may lead to an F grade.
Do all buildings receive an ENERGY STAR score?
No. Some building types do not qualify for a national comparison score. In those cases, other metrics like EUI determine grading.
Can I improve my grade mid-year?
Grades are assigned annually based on submitted data. Operational improvements will reflect in the next reporting cycle.
Does this apply to co-ops and condos?
Yes. Most co-op and condo buildings over 25,000 square feet must comply.
Reviewing Your Building’s Energy Grade
NYC building energy grades are more than a letter on a wall. They reflect your benchmarking accuracy, energy performance, and compliance standing.
For property managers and building owners across the five boroughs, understanding how grades are calculated is the first step toward protecting asset value and maintaining compliance.
Because grades are derived directly from Local Law 84 benchmarking submissions, accuracy matters.
If you’d like a second review of your Local Law 84 submission, our compliance team can help.
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