Montgomery County Building Energy Performance Standards: What Businesses Must Know

Montgomery County, Maryland, is leading the charge in energy efficiency and carbon reduction with its updated Building Energy Use Benchmarking and Performance Standards (BEPS). These new regulations aim to reduce greenhouse gas emissions from commercial and multifamily buildings while encouraging a shift toward energy-efficient and electrified building systems.

If you own or manage a building in Montgomery County, you must understand these new requirements and ensure compliance with the county’s performance targets and reporting deadlines.

Who Must Comply With Montgomery County’s BEPS?

The BEPS expands the number of buildings required to benchmark and meet energy efficiency targets. The law applies to:

• County-owned buildings over 25,000 square feet.
• Privately owned commercial buildings over 25,000 square feet.
• Multifamily residential buildings over 25,000 square feet.

Building owners must track energy performance, meet interim and final energy efficiency targets, and comply with electrification mandates.

Key Energy Performance Requirements

Montgomery County’s BEPS focus on reducing energy use and carbon emissions by implementing:

1. Energy Benchmarking & Performance Tracking

All covered buildings must track energy use and report it to the county.

• Benchmarking reports must be submitted annually using ENERGY STAR Portfolio Manager.
• Reports include energy performance scores, site energy use intensity (EUI), and annual greenhouse gas emissions.

2. Performance Standards For Energy Reduction

Buildings must meet interim energy performance standards every four years and final energy targets by 2033-2037, depending on building size.

• Energy use intensity (EUI) must decrease progressively through upgrades and operational improvements.
• Failure to meet targets may require owners to submit a Building Performance Improvement Plan (BPIP) to demonstrate corrective actions.

3. Electrification & Fossil Fuel Phase-Out

Montgomery County is pushing for a transition away from natural gas and other fossil fuels in buildings.

• Heating, cooling, and water heating systems must be electrified over time.
• Buildings must integrate high-efficiency electric heat pumps and induction cooktops.
• Gas-fired equipment replacements must shift to energy-efficient electric alternatives.

4. Renewable Energy & Grid Resilience

The county encourages the adoption of on-site and off-site renewable energy sources to support carbon neutrality goals.

• Installing solar panels and battery storage can help offset electricity costs.
• Participation in demand response programs can improve energy efficiency and grid reliability.

5. Water Efficiency Measures

Water conservation is a critical part of the BEPS program.

• Buildings must implement low-flow plumbing fixtures and smart irrigation systems.
• Owners are encouraged to use graywater and rainwater harvesting systems.

Compliance Deadlines & Phased Rollout

The county has structured the compliance timeline in phases, with buildings grouped by size. Buildings must track their progress and report compliance updates every four years leading up to the final deadline.

Compliance Deadlines By Building Type

Group 1 (250,000+ sq. ft.)

1. First Benchmarking Deadline: June 1, 2023
2. Interim Target Deadline: Dec 31, 2028
3. Final Compliance Deadline: Dec 31, 2033

Group 2 (50,000 - 250,000 sq. ft.)

1. First Benchmarking Deadline: June 1, 2023
2. Interim Target Deadline: Dec 31, 2028
3. Final Compliance Deadline: Dec 31, 2033

Group 3 (25,000 - 50,000 sq. ft.)

1. First Benchmarking Deadline: June 1, 2024
2. Interim Target Deadline: Dec 31, 2030
3. Final Compliance Deadline: Dec 31, 2035

Group 4 (Multifamily, 250,000+ sq. ft.)

1. First Benchmarking Deadline: June 1, 2023
2. Interim Target Deadline: Dec 31, 2028
3. Final Compliance Deadline: Dec 31, 2033

Group 5 (Multifamily, 25,000 - 250,000 sq. ft.)

1. First Benchmarking Deadline: June 1, 2024
2. Interim Target Deadline: Dec 31, 2031
3. Final Compliance Deadline: Dec 31, 2036

Steps to Ensure Compliance

1. Benchmark Your Energy and Emissions Data

• Use ENERGY STAR Portfolio Manager to track energy consumption, EUI, and emissions.
• Submit annual reports to Montgomery County’s benchmarking platform.

2. Evaluate Energy Performance and Plan Upgrades

• Conduct an energy audit to determine where efficiency upgrades are needed.
• Upgrade to high-performance HVAC systems, lighting, and insulation.

3. Implement Energy Efficiency and Electrification Upgrades

• Transition from gas heating and cooking to electric heat pumps and induction stoves.
• Adopt smart building controls to optimize HVAC and lighting performance.
• Integrate solar and battery storage solutions to enhance energy independence.

4. Apply for Incentives and Rebates

Montgomery County and Maryland offer financial assistance to offset the cost of building upgrades:

• Rebates for high-efficiency HVAC, lighting, and water heating systems.
• Tax credits for renewable energy installations and electrification projects.
• Financing options for energy retrofits through green building programs.

5. Stay Ahead of Deadlines and Monitor Performance

• Regularly track energy efficiency progress and make adjustments as needed.
• Stay updated on new county policies and potential amendments to BEPS requirements.
• Engage with energy consultants or sustainability experts to ensure compliance.

The Benefits of Compliance

By meeting Montgomery County’s Building Energy Performance Standards, businesses and property owners can:

• Reduce operating costs by lowering energy and water consumption.
• Increase building value with energy-efficient upgrades that attract tenants and investors.
• Stay ahead of regulations and avoid potential penalties or compliance issues.
• Contribute to sustainability goals by lowering carbon emissions and improving air quality.

What Businesses Should Do Now

To prepare for compliance with Montgomery County’s BEPS, building owners should:

1. Start tracking energy performance and benchmarking data now.
2. Assess retrofit needs and prioritize energy efficiency projects.
3. Explore financial incentives to help fund building upgrades.
4. Develop an energy transition plan to meet interim and final targets.
5. Stay engaged with county updates and evolving sustainability regulations.

Taking action now will help ensure compliance, optimize energy performance, and future-proof your building operations for years to come.