In December 2024, Maryland became the fourth state in the nation (joining Washington, Oregon, and Colorado) to pass Building Energy Performance Standards (HB49.) The goal of this legislation is to reduce direct (on-site) greenhouse gas (GHG) emissions and improve overall energy efficiency in Maryland's building sector- specifically for buildings 35,000 square feet or larger and otherwise non-exempt, for example a federally-owned building.
Buildings are the largest source of greenhouse gas emissions in the United States. In 2022, buildings represented 31% of all emissions. Greenhouse gas emissions from the commercial and residential sector are a result of fossil fuels being burned for heat/generation, the use of gases for refrigeration and cooling, and from imported electricity. Emissions also occur from non-building specific activities such as the handling of waste.
US EPA
The climate crisis is real and business as usual is no longer an option. Decarbonization needs to be a high priority for all businesses. BEPS helps us move the needle to reduce air pollution and grow a more resilient economy.
First things first, your facility may be exempt! SustainabilitE Solutions is offering a FREE exemption assessment for your facility. Visit the website for more information.
https://www.sustainabilitesolutions.com/beps
The implications of this legislation boil down to a few specific actionable items for impacted facility/business owners:
Reporting:
Businesses with facilities that are in scope must report their energy usage and associated greenhouse gas emissions into the Energy STAR Portfolio Manager every year, starting in 2025 (2025 deadline= September 1. 2026 and beyond= June 1).
In 2026 and every five years thereafter, this data will need to be verified by a certified third party for accuracy.
Doing the Work:
With the goal of becoming net-zero by 2040, facilities must meet interim energy usage thresholds in 2030, 2035, and 2040. These thresholds are a function of greenhouse gas emissions per square foot. These thresholds were determined by the state depending on the property type and purpose. Mixed-use buildings will have custom targets.
Building type & Energy Standard snip, MDE
Facilities will meet these interim standards through:
energy efficiency improvements, for example HVAC tune ups, and
decarbonization upgrades, for example replacing natural gas boilers with electric heat pumps or hot water heaters.
Should your facility fail to meet interim standards, the alternative compliance fee will begin in 2030 at $230 per metric ton in 2020 dollars, adjusted for inflation and will increase $4 in 2020 dollars, adjusted for inflation, every year
Facility owners should be thinking NOW about:
Obtaining energy usage data from their utility providers
Assigning or hiring a responsible party to handle reporting in Energy Star Portfolio Manager
Upcoming capital upgrades- how might the interim energy standards impact what investments are needed?
Investigating state funding programs: Maryland has a number of programs designed to help reduce costs for building owners. Whether it be energy efficiency or decarbonization upgrades, funding may be available for your projects
SustainabilitE Solutions can manage your annual reporting for you- and more.
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