In April 2019, the New York City Council passed the Climate Mobilization Act, which limits greenhouse gas emissions for building over 25,000 square feet. Pursuant to the Act, by the years 2030 and 2050, the emissions from NYC buildings are requested to be reduced by 40% and 80%, accordingly, with respect to 2005 level. For for city-owned buildings the Act sets forth even more ambitious target: 40% by 2025 and 50% by 2030. Hefty fines are declared to be imposed on building owners for any emissions exceeding the limits. Around 50,000 residential and commercial building are to be affected by the Act.

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Mark Chambers, the director of the Mayor’s Office of Sustainability, said that the cumulative cost to building owners to make the upgrades needed to meet the caps would exceed $4 billion. Accordingly, each of aforementioned 60,000 buildings is expected to invest an average of [$4 bn/50,000], i.e. around $80,000.

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Also, “Real estate industry executives say that while they support reducing emissions, they believe too many types of buildings were given exemptions, placing an undue burden for reducing the city’s greenhouse gas output on the remaining buildings. Ed Ermler is the board president of a group of four co-op apartment buildings with a total of 437 units in Jackson Heights, Queens. He said that in recent years he has invested hundreds of thousands of dollars to install computerized boiler controls and other systems to make the 1950s-era buildings, called Roosevelt Terrace, more energy efficient, and yet the target that the city has set is still “totally unattainable”. To get down to even 20 percent from where I am today, with the technology that exists, there’s nothing more that I can do,” Mr. Ermler said. “It’s not like there’s this magic wand.””

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For all 50,000 building owners in NYC who are expected to spend on average $80,000 to comply with the Act, AG-Burners is in all aspects the best solution available, and for many it is the only one solution practicable. Reducing building’s  itheating associated emission by 60% will make fully compliant with emission limits set out in the Act at a fraction cost of any known alternative option. Moreover, Capex associated with AG-Burner retrofitting will in worst case scenario recoup in around one years, the magnitude unimaginable for other options. After this short payback period the owners of a building will have their heating costs reduced by around 60%.