Building Energy Performance Standards

Summary of Authorizing Law for the Development of Regulations

The Maryland Climate Solutions Now Act of 2022 requires that the Maryland Department of Environment (MDE) develop Building Energy Performance Standards (BEPS). MDE must develop standards for buildings that achieve the following:

20% reduction in net direct Greenhouse Gas (GHG) emissions by January 1, 2030, as compared with 2025 levels for average buildings of similar construction and;
Net-zero direct GHG emissions by January 1, 2040.

Covered buildings are buildings in Maryland that are 35,000 square feet or larger (excluding the parking garage area). Historic properties, public and nonpublic elementary and secondary schools, manufacturing buildings, and agricultural buildings are exempt. Owners of covered buildings will need to report data to MDE each year beginning in 2025.

The regulations must meet several specified requirements, including the following:

Include energy use intensity targets by building type, as specified;
Provide maximum flexibility to the owners of covered buildings;
Include an alternative compliance pathway allowing the owner of a covered building to pay a fee for GHG emissions attributable to the building’s failure to meet direct GHG emissions reduction targets; and
Include considerations for the unique needs of particular building or occupancy types, including healthcare facilities as well as laboratories

Additionally, an owner of a covered building, when calculating the statewide standards developed by MDE pursuant to the bill, may not consider GHG emissions or energy use by a commercial tenant of a covered building that (1) is a food service facility, as specified, and (2) engages in commercial cooking and water heating.

Contact: BEPS.MDE@maryland.gov

Resources on BEPS

The U.S. Environment Protection Agency (EPA) provides an introduction to Building Performance Standards.
Benchmarking Building Data with EPA’s ENERGY STAR Portfolio Manager.
List of available U.S. Department of Energy tools.
The DOE Better Buildings Initiative provides helpful resources relating to funding opportunities, best practices, and webinars for the energy efficiency improvement of homes, commercial buildings, and industrial plants.
National Database of State Incentives for Renewables & Efficiency (DSIRE) DSIRE is managed by the North Carolina Clean Energy Center. It provides information about renewable energy and energy efficiency incentives for states that may include grants, tax credits, and loans.
Maryland Energy Administration - Maryland's state energy office and the administrator of multiple incentive, loan, and technical assistance programs to assist in improving building energy efficiency, adopting clean energy, transitioning to clean transportation fuels, and improving energy affordability.
The ENERGY STAR Licensed Professional Finder provides a list of professional engineers (PE) and registered architects (RA) that can provide ENERGY STAR verifications. This resource allows for the comparison of different quotes and provides an option for a “cost-free verification offered for nonprofit organizations, religious organizations, or other smaller organizations.
Carbon Dioxide (CO2) Emissions Coefficients by Fuel
The Inflation Reduction Act of 2022 has expanded tax credits available under the Energy-Efficient Commercial Buildings Tax Deduction (Section 179D). Eligible entities include owners and lessees of commercial buildings, as well as designers of energy-efficient building property. The federal tax deduction increased from $1.80 a square foot to up to $5.00 a square foot.