Bright Lights, Big Storage: New York City’s New Energy Storage Rules

New York City’s Department of Buildings (the Department) issued notice on September 17, 2025 that it adopted two new rules on stationary electrical energy storage systems (ESS). The rules, listed below, take effect on October 26, 2025:

1. Title 1 of the Rules of the City of New York, Chapter 100, Subchapter A, Section 101-19 (Rule 101-19)
2. Title 1 of the Official Compilation of the Rules of the City of New York, Chapter 3600, Section 3616-07 (Rule 3616-07)

What Are ESS?

ESS collect and set aside energy that can supply electricity at a later time. For example, ESS can store energy from solar and wind systems and release the energy when New York City’s electricity demand increases. ESS provide several benefits:

• They supply backup power to the electrical grid for outages, making the grid more reliable.
• They improve renewable energy sources’ dependability, storing renewables’ excess energy and releasing it as needed.
• They reduce New Yorkers’ energy costs, storing excess energy when energy costs are cheap (i.e., during off-peak times) and releasing the energy during peak periods.

In short, in the Department’s words, “ESS play a crucial role in creating a more flexible, efficient, and sustainable energy grid.”

Why the Department Promulgated the ESS Rules

ESS, which can be inside and on top of New York City buildings, should be designed, installed, operated, and monitored in ways that ensure the systems’ safety. The Department thus promulgated the rules to set safety criteria. For example, the rules “mandate[] adequate separation distances between ESS and other critical infrastructure,” which “reduces the risk of fire spreading to adjacent areas.”

Examples of Rule Requirements

Rule 101-19

• Covers design, filing, construction, installation, commissioning, operation, maintenance, and decommissioning of specified indoor and outdoor ESS.
• Establishes reporting requirements.
• Requires construction applications be filed with the Department.
  • Roof-Mounted ESS: applications must include a roof plan showing no obstruction of firefighter access.
• Mandates that permits must be acquired for both construction and electrical work before ESS projects begin.
• Requires registration with the Department:
  • New ESS: owners/managers must register before operation.
  • Existing ESS: must be registered within three years of rule’s effective date.
  • Exemptions: lead acid and nickel cadmium batteries used for emergency, standby, or uninterruptable power supply.

Rule 3616-07

• Modifies NFPA 855 (national standard for ESS installation) to address New York City’s unique urban environment.
• Flood protection: ESS cannot be installed below the design flood elevation (per Appendix G of the New York City Building Code).
• Safety systems required:
  • Fire detection and suppression
  • Adequate ventilation to prevent overheating and hazardous gas buildup
• Expanded scope applies to:
  • Indoor stationary ESS
  • Mobile/portable ESS installed in stationary settings
  • Storage of lithium metal and lithium-ion batteries

Implications for Pre-Existing and Planned ESS Projects

For planned ESS falling within the rules’ scope, project developers should — among other things — complete and submit construction applications, secure necessary permits for construction and electrical work, ensure that the Rule 3616-07 requirements for elevation, spacing, fire detection, fire suppression, proper ventilation, and more are met, and register ESS with the Department.

For existing ESS projects falling within the rules’ scope, building owners and property managers should register the projects with the Department within three years of Rule 101-19’s effective date.

Rules 101-19 and 3616-07 are further demonstrations that New York City is committed to renewable energy and meeting city and state climate goals. They follow New York City’s Local Law 97, the law imposing greenhouse gas emissions limits on certain New York City buildings. These New York City requirements, combined with new climate-focused New York state regulations, such as those regulating refrigeration and HVAC systems, create complexities for those doing business in New York City.

The Environmental practice group at Arnold & Porter is closely monitoring climate-related rules and developments. For questions or additional information, please reach out to the authors of this Blog or your Arnold & Porter contact.

© Arnold & Porter Kaye Scholer LLP 2025 All Rights Reserved. This Blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.