After years of discussion, Local Law 97 (LL97), which establishes strict greenhouse gas emission limits (and imposes significant penalties for non-compliance) on buildings throughout New York City with a goal of a zero-carbon footprint by 2050, is finally a reality. Building owners and managers were required to file reports with the Department of Buildings on May 1, with many scrambling to meet the deadline.
Fabio Zaniboni, founder and CEO of BubblyNet, a provider of smart building technologies, has launched Reinvent NYC, a modular platform that helps buildings track emissions, automate reporting and cut energy waste through smart HVAC control, lighting and occupancy sensors.
Here, he discusses the challenges of compliance — and the potential opportunities that go far beyond simply reducing energy use. (The conversation has been edited for length and clarity.)
So, LL97 is now a reality. Did it still catch some owners and managers off guard?
Yes. We’ve had Local Laws 87 and 88 as part of the broader push toward going green in New York City, but we still see many buildings that aren’t even complying with Local Law 88.
LL97 started on May 1, requiring the first round of paperwork submissions. While the penalties for non-compliance can be substantial, the fines for greenhouse gas emissions above the baseline are still relatively moderate. They’re not necessarily severe enough to scare building owners into immediate action. People know they need to file, but before making large investments, some may choose to pay the fines because they aren’t yet overwhelming.
However, what many don’t realize is that stricter regulations are coming in 2030, and then from 2030 to 2050, another 40% in emissions reductions will be required. This is a long-term process. It’s not as simple as assigning the task to an engineering firm and having your building upgraded overnight.
Which buildings are easier to upgrade — older or newer ones?
More recent buildings are generally easier to upgrade because they often have the necessary infrastructure in place. In very old buildings, you often don’t have the conduits for electrical systems that newer buildings include.
The challenge is that if you don’t start the process, you don’t know where you stand. Buildings above a certain square footage are required to inform their tenants of their energy usage. A lot of energy consumption comes down to education. You want to educate your tenants on how to use the building efficiently to reduce emissions.
A landlord can’t control a tenant who leaves the lights on, for example. That argument was totally valid until about five to 10 years ago. The first big change came about five to seven years ago when wireless technology became available at reasonable prices. Now, with wireless systems, you can have motion sensors, air quality sensors and temperature sensors installed for a fraction of the cost of older wired systems. These devices can inform a central system — whether on-site or in the cloud — how the building is being used. If a tenant leaves the lights on when no one is in the room, the system can automatically turn them off. If the HVAC is set to 68 degrees in the summer and no one is there, it can automatically adjust to 75 or 80 degrees.
The next significant step, which we’ve seen develop over the past few years, is artificial intelligence (AI). We have an HVAC model that uses what we call agentic AI. This isn’t just an AI that gives you recommendations — it takes control and acts based on real-world conditions. It learns how long it takes to reduce the building temperature by five degrees if there are 50 people in the building versus 500. These evaluations allow the AI to predict optimal settings for energy efficiency.
Are there logistical problems in coordinating this??
The number one logistical challenge is still human — the lack of trust, confidence and familiarity with new technologies. Not everyone is an engineer, and even engineers can find integrating new technology daunting. The first barrier is psychological, overcoming the reluctance to try something new and unfamiliar.
For example, people may worry that a fully wireless system is more vulnerable to breakdowns or hacking. That’s a common misconception. We’ve installed our technology in highly sensitive locations like airports and federal buildings, where security is a top priority.
The second challenge is physical. In older buildings, replacing an entire system can be a massive undertaking. You might need to remove large, outdated equipment from buildings with narrow hallways and cramped mechanical rooms. If your existing building management system is wired, adding more data points can require extensive new cabling, which may be virtually impossible in some cases. Or imagine redoing the entire facade of a 40-story building with double-paned glass.
Then there are the financial considerations. A new façade alone can cost millions of dollars. The current penalties under LL97 are not always enough to justify such significant investments, which is why the mayor and the city are working on tax deductions and grants to make these projects more financially appealing.
How expensive is it to comply?
Costs vary widely. That’s why my company focuses on IoT, software and smart technology. These investments typically range from $2 to $8 per square foot, which is just a fraction of the cost of full structural upgrades. But these systems can lead to significant long-term savings and a completely different operational profile for your building.
How does your company help?
We give building owners the tools they need to understand where they stand. This includes metering and real-time data on the building’s energy and utility usage. Once you have a baseline, you can start making strategic decisions.
There are also “low-hanging fruit” solutions that are relatively inexpensive and easy to implement but still make a significant impact. These early steps not only reduce emissions but also demonstrate to city officials that you’re actively managing your building’s energy footprint.
Are there other, hidden benefits?
Yes. Beyond the energy savings, these technologies can make a building healthier and more comfortable for its occupants. For just a few cents per square foot, you can measure oxygen and CO2 levels, improving air quality. Studies show that people are more productive in well-regulated environments with the right lighting, temperature and air quality.
What is new and exciting?
We’ve been experimenting with a new technology involving melanopic lighting. LEDs can be tuned to different parts of the light spectrum, like the sun early in the morning, which can trigger cortisol release and boost alertness. It’s similar to the way plants respond to different light wavelengths.
So, in a way, LL97 is a launching pad for something that can reinvent a user’s relationship with office buildings?
Yes. I’ve traveled all over the world and lived in 40 countries. New York is unique — it’s a city of firsts. I believe LL97 is just the beginning of a broader movement toward healthier, more efficient buildings. It’s about more than just saving energy or reducing costs. It’s a holistic approach to making our urban environments better places to live and work.
The evolution of metropolis around the world will happen again, first in New York.
