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Browse the store →Landlords and tenants are increasingly disputing who bears the cost of LL97 compliance. Here are the five lease clauses that determine the outcome—and how documented efficiency improvements can strengthen your position.
For 2024 and 2025, commercial landlords and tenants played a waiting game. Landlords hoped tenants would quietly pay "compliance costs." Tenants hoped the fines would never be collected. Brokers hoped the issue would resolve itself.
In 2026, the stalemate is over.
Per ton fine
LL97 penalty
Annual fine
Large office tower
Class A PSF
Compliant buildings
"With this law in effect, scrutiny of data and due diligence are needed to understand how a building will perform before you enter into any [CRE] transaction. Emissions must be cut by 50% by 2030 and 75% by 2035, which is why it's coming to the forefront in leasing negotiations today."
Who pays? Landlords argue LL97 is a "law" requiring compliance, so costs are operating expenses. Tenants argue fines are "penalties" for owner-controlled inefficiency. The answer depends entirely on lease language.
1
The Question: Does your lease explicitly include "environmental compliance" or "carbon costs"?
Pre-2019 leases rarely mention carbon. That ambiguity is now a battleground.
2
The Question: Does the lease require tenants to pay for landlord's compliance?
Tenants argue this covers their operations, not base building capital.
3
The Question: How are capital improvements amortized and passed through?
Tenants may accept amortized costs with reasonable payback periods.
4
The Question: Are LL97 fines treated like taxes (landlord responsibility)?
Fines are generally not considered "taxes" in standard lease interpretation.
5
The Question: Does your lease exclude "fines" or "penalties" from pass-through?
This single clause can be worth millions.
"LL97 is a law I must comply with to operate the building."
"Compliance costs—including fines while we retrofit—are operating expenses."
"We filed a Good Faith plan; fines are temporary."
"Capital improvements benefit tenants through better buildings."
"A fine is a penalty for YOUR building's inefficiency."
"We didn't design the boiler system. We won't pay your speeding ticket."
"Show us you maintained the equipment before passing costs."
"We'll pay for savings, not for neglect."
The party with the clearest, most specific lease language wins. But documentation matters too.
Organization: Umpqua Bank (regional bank with multiple branches)
Facilities: Banking locations with both heating and cooling needs
Banks operate on strict schedules with zero tolerance for equipment failure. Mineral scale was affecting hot water boilers and cooling towers across multiple branches.
Umpqua Bank installed Vulcan mineral descaling technology across their facilities—targeting both boilers and cooling towers. For banking facilities, the Vulcan S25 or S50 provide ideal capacity.
Boilers operating at design efficiency
Cooling towers protected from scale buildup
Reduced maintenance across multiple locations
Documented efficiency improvements
Umpqua Bank — Boilers and cooling towers protected across multiple branches
In any lease dispute, documentation is power. Here's what Vulcan provides:
Proof of capital invested in equipment preservation—not just promises.
Documented baseline showing existing efficiency (or lack thereof).
Verifiable 12-18% efficiency gain = proof of proactive maintenance.
When DOB or tenants ask "What did you do?", Vulcan is your answer.
"Landlord has installed permanent, non-chemical scale prevention technology on the base building mechanical systems, as documented in Exhibit A. Tenant acknowledges that this proactive maintenance reduces the building's carbon emissions and operating costs, and agrees that documented efficiency improvements shall be considered in any dispute over LL97 cost pass-throughs."
Consult with legal counsel before modifying lease language.
Sample ROI Calculation
Annual fine exposure (300,000 sq ft office, 500 MT excess) | $134,000 |
10-year lease exposure | $1.34 million |
12-18% efficiency gain from scale removal | $16,000 - $24,000 saved/year |
Vulcan commercial model (typical installation) | Login for pricing |
Estimated payback period | 3-12 months* |
For precise pricing tailored to your building's specifications and mechanical systems:
Existing customers: Log in to your account to view model-specific pricing
New users: Create a free account to access detailed pricing and configuration options
Need assistance? Contact our commercial team for a personalized assessment
Account registration takes less than 2 minutes.
* Savings and payback vary based on building size, water conditions, existing scale buildup, and actual equipment selection.
Different building sizes require different Vulcan models. Create an account to view detailed specifications and pricing.
Application | Typical Equipment | Recommended Model | Pipe Size | Flow Rate |
|---|---|---|---|---|
Small commercial | Boilers, DHW systems | Up to 3" | 65 GPM | |
Mid-size commercial | Boilers, heat exchangers | Up to 4" | 130 GPM | |
Large commercial | Cooling towers, central plants | Vulcan S50 or S100 | 5-6" | 300-530 GPM |
Multi-building portfolio | Multiple systems | Mix of models | Varies | Portfolio assessment |
Explicitly addresses carbon costs, fines, and capital improvements
Minimal dispute risk
Outcome depends on documentation and negotiation leverage
Moderate to high dispute risk
No mention of carbon or environmental compliance
Highest dispute risk; litigation likely
If you're in Category 2 or 3, documentation becomes your strongest negotiating tool.
About Vulcan Mineral Descaling Technology
All Vulcan units are secured via our specialized anchor mounting system, providing a permanent, vibration-resistant fit for industrial pipes. As a mineral descaler, Vulcan uses custom-tailored impulse bands to treat water flow electronically, preventing calcium and magnesium from forming hard deposits while leaving the water's chemical composition unchanged.
Pipe diameters from ½ inch to 40 inch
Works on every pipe material: iron, inox, copper, stainless steel, galvanized iron, plastic, PVC, PE-x, hose, compound pipes
Fully cast in acrylic for optimal quality endurance
Do-it-Yourself installation without cutting pipes
Zero salt, zero chemicals, zero maintenance
Review your lease. Identify which of the 5 clauses apply to your situation.
Document your maintenance. Installation dates, efficiency measurements, improvement records.
Calculate your LL97 exposure. Know your numbers before negotiating.
Consider lease amendments. Clear language benefits both parties.
Bring proof to the table. Vulcan documentation shows proactive management.
Create an account to access model specifications and technical documentation.
Contact our commercial team for documentation templates and building assessments.
Whether you're a landlord or tenant, documented efficiency improvements provide negotiating leverage.
Waslix- Clearly Clean Water (Vulcan Mineral Descaler) provides non-chemical, maintenance-free scale prevention solutions that help commercial landlords and tenants document proactive equipment management for LL97 compliance and lease negotiations. Create an account to access detailed model specifications and pricing.
Shop with an expert. We're here to help.
Call us: 412-848-5058
sales@vulcandescaler.com
VulcanDescaler.com is owned and managed by Waslix, LLC. Vulcan and its logos are registered trademarks of CWT (Germany).