Step-by-step walkthrough for setting up properties, adding utility meters, and submitting LL84 benchmarking.
If you own or manage a covered NYC building, you may have seen an A, B, C, D, F, or N energy grade posted near the building entrance. But what does that letter actually tell you?
One important clarification comes first: LL84 is NYC's benchmarking law, while the building energy grade is assigned under Local Law 33, as amended by Local Law 95. LL84 requires covered buildings to report annual energy and water consumption through the EPA's ENERGY STAR Portfolio Manager. The resulting ENERGY STAR score is then used for the building's energy efficiency grade.
So, your energy grade is essentially a benchmark of how your building's energy performance compares with similar buildings, not a direct rating of your HVAC equipment, windows, or individual building systems.
An NYC energy grade is a comparative score based on whole-building energy consumption across 12 months. It provides a standardized high-level snapshot of performance relative to peer properties nationwide, rather than an isolated assessment of mechanical or architectural components.
The energy grade is based on a building's 1–100 ENERGY STAR score generated through ENERGY STAR Portfolio Manager.
The score compares the building's energy performance with similar buildings, taking into account the property's type and relevant operating characteristics. NYC uses that score to assign a letter grade.
The current grading scale is:
| NYC Grade | ENERGY STAR Score | Performance & Compliance Status |
|---|---|---|
| A | 85 – 100 | Top Tier Energy Efficiency (Exemplary Performance) |
| B | 70 – 84 | Above Average Building Performance |
| C | 55 – 69 | Moderate / Average Building Efficiency |
| D | Below 55 | Below Average Performance (Action Recommended) |
| F | N/A (Missing Submission) | Required annual benchmarking was not submitted |
| N | N/A (Exempt Property) | Property type is exempt or not eligible for a 1–100 score |
At its core, the grade reflects whole-building energy performance relative to comparable properties.
The benchmarking process uses annual energy consumption data submitted to ENERGY STAR Portfolio Manager. NYC requires covered buildings to benchmark annually, generally by May 1.
The underlying benchmarking data can include energy consumed from sources such as electricity and natural gas, along with information about the building and its operations.
The resulting score is therefore influenced by much more than the efficiency of a single piece of equipment.
For example, your score can be affected by:
An A grade does not mean every system in the building is efficient.
Likewise, a D grade does not automatically mean that the building needs to replace its HVAC system.
The grade is a high-level performance indicator. It does not provide a detailed diagnosis of individual building systems.
For example, a building could have relatively efficient HVAC equipment but still perform poorly because of excessive operating hours, poor controls, high plug loads, envelope problems, or other factors.
That is why owners should use the grade as a starting point for investigation rather than treating it as an engineering assessment.
These laws are often confused because they are closely connected.
| Regulatory Framework | Core Purpose & Compliance Role |
|---|---|
| LL84 Benchmarking | Requires covered buildings (25,000+ sq ft) to collect and report whole-building annual energy and water consumption through EPA ENERGY STAR Portfolio Manager by May 1 each year. |
| LL33 / LL95 Energy Grading | Translates the annual ENERGY STAR 1–100 score into a public letter grade (A, B, C, D, F, or N) and mandates printing and displaying the official DOB decal near all public building entrances by October 31. |
LL84 provides the benchmarking data, while the energy-grading requirement uses the resulting score to produce the A–F/N rating.
This distinction matters when evaluating your building's compliance strategy.
A building's energy grade is not necessarily permanent.
Changes in energy consumption or building operations can affect the underlying ENERGY STAR score from one reporting year to another.
But the opposite can also happen.
Increased occupancy, longer operating hours, inefficient equipment, or unusually high energy consumption can reduce performance.
A change in grade therefore does not automatically prove that a particular piece of equipment caused the change.
Because the energy grade is based on benchmarking, data quality matters.
NYC expects owners to report the building's energy consumption accurately. Whole-building benchmarking may require obtaining tenant energy-use information in addition to base-building consumption when the property is not master-metered.
Incorrect floor area, incomplete utility data, missing meters, or inaccurate property information can affect the reliability of the benchmark.
Owners should therefore review their benchmarking inputs rather than focusing only on the final letter grade.
A low grade can be a useful signal that a building's energy performance deserves further investigation.
It does not, by itself, identify the exact cause.
A building receiving a D might investigate:
This approach turns the grade from a passive label into a useful starting point for building-performance improvements.
Potentially, yes.
Energy-efficiency measures that reduce unnecessary consumption may improve a building's future benchmarking performance.
Examples can include:
However, improvements should be selected based on the building's actual operating conditions rather than trying to achieve a particular grade through one generic upgrade.
No.
This is one of the most important distinctions for building owners.
An energy grade is not a substitute for compliance with other NYC building requirements. A building can have a good energy grade and still have separate obligations under laws or regulations governing benchmarking, emissions, energy audits, gas piping, facades, or other requirements.
Similarly, a lower grade does not automatically mean the owner has violated every energy-related requirement.
The grade should be viewed as one part of the property's overall building-performance and compliance picture.
Your NYC energy grade is best understood as a whole-building energy-performance benchmark, not a detailed inspection report.
LL84 requires covered buildings to benchmark their annual energy and water use, while the resulting ENERGY STAR score feeds into the energy grade assigned under NYC's energy-grading requirements.
An A grade indicates a high ENERGY STAR score, while a lower grade can signal that the building's energy performance deserves closer attention. But the letter alone cannot tell you which system is responsible or what upgrade will provide the best return.
For owners, the most useful approach is to look beyond the letter: review the underlying energy data, understand the building's performance, identify inefficiencies, and use that information to prioritize improvements.