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The department may authorize a deduction from the annual building emissions required to be reported by an owner pursuant to section 28-320.3 where the owner demonstrates the purchase of greenhouse gas offsets or renewable energy credits, or the use of clean distributed energy resources, in accordance with this section. For such sections that limit the dates of applicability of such deductions, the department shall promulgate rules to extend such deductions for each future compliance date.

*Section 28-320.3.6 was added by: Local Law 97 of 2019. This law has an effective date of November 15, 2019.

**Section 28-320.3.6 was amended by: Local Law 147 of 2019. This law has an effective date of November 15, 2019.
**§28-320.3.6.1 Deductions From Reported Annual Building Emissions for Renewable Energy Credits
A deduction from the reported annual building emissions shall be authorized equal to the number of renewable energy credits purchased by or on behalf of a building owner, provided (i) the renewable energy resource that is the source of the renewable energy credits is considered by the New York independent system operator to be a capacity resource located in, or whose output directly sinks into, the zone J load zone for the reporting calendar year; (ii) the renewable energy credits are solely owned and retired by, or on behalf of, the building owner; (iii) the renewable energy credits are from the same year as the reporting year; and (iv) the building that hosts the system producing the energy does not receive a deduction under section 28-320.3.6.3. Covered buildings claiming deductions for renewable energy credits under this section must provide the department with the geographic location of the renewable energy resource that created the renewable energy credits. The department, in consultation with the mayor's office of long term planning and sustainability, shall promulgate rules to implement this deduction.

*Section 28-320.3.6.1 was added by: Local Law 97 of 2019. This law has an effective date of November 15, 2019.

**Section 28-320.3.6.1 was amended by: Local Law 147 of 2019. This law has an effective date of November 15, 2019.
**§28-320.3.6.2 Deductions From Reported Annual Building Emissions for Purchased Greenhouse Gas Offsets
For calendar years 2024 through 2029, a deduction shall be authorized for up to 10 percent of the annual building emissions limit. Such a deduction shall be authorized only where within the reporting calendar year, greenhouse gas offsets equivalent to the size of the deduction as measured in metric tons of carbon dioxide equivalent and generated within the reporting calendar year have been (i) purchased by or on behalf of the owner in accordance with an offset standard referenced by rules of the department, (ii) publicly registered in accordance with such offset standard, and (iii) retired or designated to the department for retirement. Such greenhouse gas offsets must exhibit environmental integrity principles, including additionality, in accordance with rules promulgated by the department in consultation with the office of long term planning and sustainability. For the purposes of this section, additionality means a requirement that an offset project is not already required by local, national or international regulations. Prior to the department promulgation of rules pursuant to this section, the department shall consult the advisory board on environmental justice as established by section 3-1006 of the administrative code.

*Section 28-320.3.6.2 was added by: Local Law 97 of 2019. This law has an effective date of November 15, 2019.

**Section 28-320.3.6.2 was amended by: Local Law 147 of 2019. This law has an effective date of November 15, 2019.
**§28-320.3.6.3 Deductions From Reported Annual Building Emissions for Clean Distributed Energy Resources
A deduction from the reported annual building emissions shall be authorized based upon the calculated output of a clean distributed energy resource located at the building subject to the report. The department shall promulgate rules to set forth how such deduction shall be calculated, in accordance with the following:
  1. For a clean distributed energy resource that generates electricity, the department shall establish separate calculations for each type of commercially available clean distributed energy resource, which shall not be revised more frequently than once every three years.
  2. For a clean distributed energy resource that stores electricity, the deduction shall be based on the size of the resource and its ability to reduce greenhouse gas emissions during designated peak periods.
*Section 28-320.3.6.3 was added by: Local Law 97 of 2019. This law has an effective date of November 15, 2019.

**Section 28-320.3.6.3 was amended by: Local Law 147 of 2019. This law has an effective date of November 15, 2019.

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