Maryland Building Energy Performance Standards: What Businesses Need to Know

Maryland is advancing its climate commitments with the implementation of Building Energy Performance Standards (BEPS), a key initiative under the Climate Solutions Now Act of 2022. These regulations target commercial and multifamily buildings, requiring energy efficiency improvements and emissions reductions to achieve net-zero direct greenhouse gas (GHG) emissions by 2040.

If you own or operate a large building in Maryland, you must take action to track, report, and improve your energy performance to remain compliant and avoid penalties.

What Are Building Energy Performance Standards (BEPS)?

Building Energy Performance Standards (BEPS) COMAR 26.28 are mandatory regulations requiring existing buildings to reduce energy consumption and emissions over time. Unlike energy codes that apply to new construction, BEPS focus on existing buildings, setting specific performance targets that become more stringent over time.

Key Objectives of Maryland’s BEPS

• Reduce Greenhouse Gas Emissions: Establish direct emissions reduction targets for large buildings.
• Improve Energy Efficiency: Require buildings to meet specific energy use intensity (EUI) targets.
• Transition Away from Fossil Fuels: Encourage electrification of heating and cooling systems.
• Integrate Renewable Energy: Promote on-site and off-site renewable energy adoption.

Who Must Comply Maryland's BEPS?

Maryland’s BEPS apply to:

• Commercial and multifamily buildings 35,000 square feet or larger (excluding parking areas).
• Buildings that share energy systems and collectively exceed 35,000 square feet.

Building owners must track energy use, implement energy-saving measures, and submit compliance reports to the Maryland Department of the Environment (MDE).

Compliance Timeline & Key Deadlines

Maryland’s BEPS include phased compliance deadlines:

• 2025: Initial benchmarking reports due by September 1.
• 2030: First interim energy efficiency and emissions reduction targets must be met.
• 2040: Buildings must achieve net-zero direct greenhouse gas emissions.

How To Comply With Maryland’s BEPS

1. Benchmark Energy Performance

• Register your building with ENERGY STAR Portfolio Manager.
• Submit annual benchmarking reports to the Maryland Department of the Environment (MDE).
• Use benchmarking data to compare your energy use to state performance targets.

2. Conduct An Energy Audit

• Identify areas of inefficiency in your building’s energy use.
• Assess potential upgrades to HVAC systems, lighting, insulation, and controls.
• Develop a roadmap to compliance based on current and future energy performance standards.

3. Implement Energy Efficiency Upgrades

• Replace outdated equipment with high-efficiency HVAC, LED lighting, and smart controls.
• Optimize building insulation, window efficiency, and heat recovery systems.
• Install occupancy sensors and automated energy management systems to reduce waste.

4. Transition To Electrification

• Replace gas-powered boilers, furnaces, and cooking appliances with electric alternatives.
• Upgrade electrical infrastructure to support heat pumps and induction systems.
• Adopt high-performance heat pumps for space and water heating.

5. Integrate Renewable Energy Solutions

• Install solar panels, battery storage systems, or connect to a community solar program.
• Participate in Maryland’s Clean Energy Rebate Programs for financial assistance.
• Explore Power Purchase Agreements (PPAs) for off-site renewable energy procurement.

6. Monitor & Report Progress

• Regularly track building energy use and emissions.
• Submit compliance reports to the Maryland Department of the Environment.
• Adjust strategies as necessary to meet future energy reduction targets.

Alternative Compliance Options

Building owners unable to meet performance targets directly may:

• Develop a Building Performance Improvement Plan (BPIP) detailing steps toward compliance.
• Pay Alternative Compliance Fees (ACFs) based on the extent of non-compliance.
• Apply for extensions or variances based on financial hardship or technical limitations.

Early engagement with MDE is recommended to explore alternative compliance pathways.

Benefits of Compliance

Beyond avoiding penalties, aligning with Maryland’s BEPS offers significant financial and operational benefits:

• Lower Operating Costs: Reduced energy use leads to lower utility bills.
• Enhanced Property Value: Energy-efficient buildings attract tenants and investors.
• Regulatory Preparedness: Ensures long-term compliance with future climate policies.
• Environmental Leadership: Supports Maryland’s statewide climate action goals.

What Building Owners Should Do Next

If your building is covered under Maryland’s BEPS COMAR 26.28, take these steps now:

1. Confirm your building’s eligibility under Maryland’s benchmarking and performance requirements.
2. Register with ENERGY STAR Portfolio Manager and start tracking energy use.
3. Request utility data and compare your building’s performance to Maryland’s standards.
4. Develop an energy efficiency strategy to meet upcoming compliance deadlines.
5. Apply for state and federal incentives to fund building upgrades and electrification projects.
6. Stay informed about evolving regulations and performance targets.

Maryland’s BEPS mark a major shift in how buildings are expected to operate. Taking action early will help building owners stay ahead of compliance deadlines while unlocking financial and operational benefits.