LL97 applies a penalty of $268 for every tCO2e above the limit (2538 tCO2e from 2024 and 1359 tCO2e from 2030). Suppose, our example building has an annual emission of 2592 tCO2e. The building would be subject to the following penalties unless its emissions are reduced before each respective period: 2024-2029 penalty = 54 tCO2e x $268/t = $14,472 / year 2030-2034 penalty = 1,233 tCO2e x $268/t = $330,444 / year The penalty for the second period (2030-2034) is around 22 times higher than the penalty for the first period (2024-2029), and this is due to the lower emissions limit. To avoid these penalties, the building owner must reduce emissions below 2538 tCO2e/year by 2024, and below 1,359 tons CO2e/year by 2030.