After this blog was posted, Maryland published the Notice of Final Action for COMAR 26.28 Building Energy Performance Standards (BEPS). The regulations described below will be final and effective on December 23, 2024. The Notice is available here.

After this was posted, on September 6, 2024, the Maryland Department of the Environment announced the 2023 Building Energy Performance Standards proposed regulation has been withdrawn and new 2024 BEPS action has been proposed. The full text of the proposed regulatory action appears in the Maryland Register and you can read it there. Or faster and easier you can read the post below ..

On July 15, the Maryland Department of the Environment released new draft proposed Building Energy Performance Standards (BEPS) regulations with net direct greenhouse gas emissions standards.

MDE has announced that it will “officially withdraw the December 2023 BEPS” proposed regulations and publish these new draft regulations in September 2024. The Department intends to hold a public hearing on the proposed BEPS regulations in October.

The BEPS regulations require buildings 35,000 square feet and larger to achieve certain greenhouse gas emission reductions by 2030 and achieve net zero greenhouse gas emissions by 2040.

Very importantly this proposed regulatory action must be viewed in the context of the Maryland Governor’s Executive Order on June 4, 2024, that includes as an “immediate action” that MDE will propose a zero emission heating equipment standard regulation that will phase in zero emissions standards for heating equipment having the effect of banning not only natural gas, propane, and also heating oil in public and private buildings, large and small (i.e., not limited to building 35,000 sq ft and larger to regulated under BEPS), but, maybe not including fossil fuel for cooking?

These reproposed regulations are largely unchanged from the first released draft in 2023. We provided a detailed analysis in 2023 that remains relevant in Maryland Building Energy Performance Standards Effective January 1. Key among what is modified, the revised regulations:

Establish requirements for building owners to report energy use and emissions data for the period beginning January 1, 2024, to MDE annually with the first report due June 1, 2025.

Modify the agricultural building definition (.. yes, to answer the question that is often asked, cannabis growing facilities are exempt), manufacturing building definition, exemption procedure, public infrastructure property types, and the consumer price index for clarification.

And delay implementation of the proposed site energy use intensity (EUI) standards. MDE says it “intends to establish site energy use intensity (EUI) standards in 2027” .. “after analyzing 2025 energy use data from covered buildings and submitting a report as required by the Budget Bill (Fiscal Year 2025), SB 360/Chp. 716 of 2024.” MDE further expressly advises, “building owners should refer to the site EUI standards proposed in December 2023 as general directional guidance when they plan improvements to their buildings.”

Note that the draft does not only apply to existing building owners and tenants, but the regulations also mandate new disclosures in real estate contracts so prospective buyers and sellers need to be cognizant of what is proposed.

Be aware that no other state is going as far and as fast as Maryland when these reproposed regulations impacting buildings, from multi family residential to offices and including retail and hospitals, implement the state’s economy wide broader edict for a reduction of greenhouse gas emissions by 60% below 2006 levels by 2031 and reaching net zero emissions by 2045, through decarbonizing privately owned buildings, but exempted the majority of government buildings from this mandate.

The 2024 BEPS draft proposed regulation can be found here.

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We will be offering a webinar entitled, “With ‘new’ proposed Maryland BEPS regulations what does a Building Owner do now?” on Tuesday, August 13 from 9 – 9:30 am EDT. The webinar is complimentary, but you must register here.