As New York City commercial building owners prepare for Local Law 97 compliance, many are seeking clear guidance on how to move forward. Gabe Phillips, CEO and Founder of Catalyst Power, an independent integrated provider of retail power and cleaner energy solutions for the commercial and industrial sector, shares insights on practical solutions and opportunities for
businesses in this changing landscape. New York building owners can check if they are covered here.
Q: With Local Law 97 compliance deadlines approaching and mixed signals from different authorities, what immediate steps should NYC commercial building owners be taking?
The most urgent priority for building owners is to get a clear understanding of their current emissions baseline and potential exposure to penalties. Despite some inconsistent guidance from different city entities, the fundamental requirements of Local Law 97 remain unchanged. Building owners should start by conducting a thorough energy audit and emissions assessment.
This baseline will help identify the most impactful areas for improvement and guide investment
decisions.
The Article 320 guide outlines several compliance pathways, including direct emissions reductions, renewable energy credits, and carbon offsets. However, building owners shouldn’t wait for perfect clarity from the City before taking action because penalties start getting implemented in 2025. Start by exploring no-regret measures like energy efficiency upgrades, combined heat and power systems (co-generation), and evaluating on-site renewable energy potential. These investments will pay off regardless of how specific compliance details evolve.
Q: Many businesses are concerned about the costs of compliance. How can companies balance the financial impact of Local Law 97 while turning it into a business opportunity?
While compliance does require investment, we’re seeing many businesses successfully turn these requirements into opportunities for long-term cost savings and business improvement. The key is to approach compliance strategically, looking beyond just meeting the minimum requirements. Smart investments in energy efficiency, co-generation, and clean energy can significantly reduce operational costs while increasing property values.
For example, many of our clients are finding that combining energy efficiency measures with on-site renewable energy not only ensures compliance but also provides long-term protection against rising energy costs. There’s real value to removing yourself from the volatility of the energy market. Some are generating additional revenue by leasing their roof space for solar Installations or offering EV charging services to tenants and customers. The businesses that act early have more options and can often secure better financing terms and incentives. They’re
also better positioned to attract and retain tenants who increasingly prioritize sustainability.
Q: Given the potential changes in federal clean energy incentives, how can businesses best leverage current city and state programs to support their transition to clean energy?
The changing federal landscape makes state and local support even more crucial. New York State and City offer various programs that businesses should take advantage of – while available. These include NYSERDA incentives for co-generation and energy storage systems, property tax abatements for renewable energy installations, and financing options through the C-PACE program.
The key is to act now while these incentives are still available. We’re advising our clients to lock in current incentives and begin implementing their compliance strategies rather than waiting for potential new programs. Remember, these programs often have limited funding or sunset dates, so early movers have significant advantages.
Q: What specific solutions does Catalyst Power offer to help businesses navigate Local Law 97 compliance while improving their bottom line?
At Catalyst Power, as a retail energy provider, we understand that small and mid-sized business owners are incredibly busy and don’t have time to become energy experts. That’s why we’ve positioned ourselves as a one-stop shop for all their energy needs–we specialize in integrating retail electricity with complementary cleaner energy solutions designed to help commercial and industrial companies reduce costs and generate revenue with no upfront investment. We handle the complexity so they can focus on running their businesses.
We start by conducting a comprehensive assessment of a business’s energy usage and costs, then develop tailored strategies that align with their specific needs and goals. Our team manages the entire process – from navigating incentives and permits to installation and ongoing optimization.
Our solutions include revenue-generating and concrete savings options such as co-generation systems, on-site solar installations, energy storage solutions, and community solar subscriptions. We’re also helping businesses future-proof their properties by installing EV charging infrastructure to meet growing tenant and customer demand.
Most importantly, we simplify the entire process. Our team handles the paperwork, coordinates with utilities, manages contractors, and ensures businesses maximize available incentives and financing options. We’ve built our business around making clean energy solutions accessible and straightforward for busy business owners who need clear, actionable solutions that make
economic sense.
Q: What are other trends to watch in 2025 for New York City commercial business owners?
We’re seeing increased focus on building electrification and innovative new efficiency solutions. Co-generation technology is becoming increasingly sophisticated, offering better efficiency and reliability for buildings that have aging boilers that need replacing. The expansion of the city’s power grid infrastructure and the growing adoption of energy storage systems will create new opportunities for businesses to optimize their energy usage and costs.
Another opportunity to monitor is EV charging, where the market is rapidly evolving, with new opportunities for property owners to generate revenue while providing an increasingly essential service. Community solar projects offer businesses new ways to access renewable energy without on-site installation–and expand the options for roof and land leasing.
I expect tenant demand for sustainable buildings to continue to grow, making green building certifications and strong environmental performance increasingly important for property values and competitiveness in the market–beyond LL97. Business owners should be preparing for these trends now to stay ahead of both regulatory requirements and market expectations.
