Understanding Maryland’s Building Energy Performance Standard

The Climate Solutions Now Act and Building Energy Performance Standards in Maryland

Introduction

The recently passed Climate Solutions Now Act in Maryland aims to reduce greenhouse gas emissions through various measures, including Building Energy Performance Standards. Facility managers in the state need to be aware of the implications of these standards.

Key Points for Facility Managers

• Facility managers may have emissions reporting requirements under the Statute and Proposed Regulations. They should familiarize themselves with the EPA’s Energy Star Portfolio Manager tool.
• Facility managers should review their leases and consider amending them to allow for the collection of building energy consumption data for reporting purposes.
• If a building is being sold, the owner may have certain disclosure obligations to the purchaser.

Scope of Coverage

According to the Maryland Department of the Environment, it is estimated that over 9,000 buildings in the state will be covered by the Statute and Proposed Regulations.

The Statute

The Statute applies to “covered buildings,” which include commercial facilities with a gross floor area of 35,000 square feet or more (excluding parking garages). The Statute sets targets for reducing greenhouse gas emissions and requires owners of covered buildings to measure and report direct emissions data annually starting in 2025.

The Proposed Regulations

The Proposed Regulations establish specific net direct greenhouse gas emissions and energy use intensity standards for covered building owners. The EPA’s Energy Star Portfolio Manager tool is required for compliance.

Key Definitions

• “Benchmarking information” refers to descriptive information about a building’s energy consumption, efficiency, and performance.
• “Benchmarking tool” refers to the EPA’s Energy Star Portfolio Manager or any approved successor system.
• “Covered Building” generally refers to a commercial or multifamily residential building in Maryland with a gross floor area of 35,000 square feet or more (excluding parking garages).

Reporting Requirements

• Facility managers must collect and enter all required benchmarking information into the benchmarking tool and submit the benchmarking report to the Department annually by June 1.
• Certain energy consumption data can be excluded from the benchmarking report.
• If a building is mixed-use, the gross floor area of all property types must be entered into the benchmarking tool.
• Benchmarking reports require third-party verification starting in 2025 and every five years thereafter.
• Facility managers must maintain records demonstrating compliance with the regulations for at least 5 years and make them available to the Department upon request.

Tenant Reporting Information

• Facility managers can request benchmarking information from tenants or obtain it from electric and gas companies if there are five or more tenants.
• If there are fewer than five tenants, facility managers may need written or electronic consent from tenants to obtain their energy data.

Selling a Covered Building

• Owners must disclose that the building is subject to the Proposed Regulations and provide certain records and performance information to prospective buyers.
• Starting in 2030, the owner of the covered building at the time of closing is responsible for compliance with the Proposed Regulations.

Performance Standards

The Proposed Regulations include performance standards for emissions and energy use intensity, adjusted based on property type. Industry groups have raised concerns about the achievability of these standards.

Alternative Compliance

Building owners can choose to pay a fee for greenhouse gas emissions in excess of the standards instead of meeting the emissions standards.

Conclusion

The Proposed Regulations place responsibility on building owners and facility managers to report and reduce energy use. Facility managers should start considering the impact of these regulations on their buildings and plan accordingly.

About the Authors

Kelly Shubic Weiner is co-chair of Venable LLP’s Commercial Real Estate Practice Group. Alexander M. Belman and Abigail A.F. Rose are associates at Venable LLP focusing on commercial real estate matters.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action

The article discusses the recently passed Climate Solutions Now Act in Maryland, which aims to reduce greenhouse gas emissions. This connects to SDG 13, which focuses on taking urgent action to combat climate change and its impacts. Additionally, the Act includes Building Energy Performance Standards, which relate to SDG 7’s goal of ensuring access to affordable, reliable, sustainable, and modern energy for all. The implementation of these standards also contributes to SDG 11’s objective of making cities and human settlements inclusive, safe, resilient, and sustainable.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 7.3: By 2030, double the global rate of improvement in energy efficiency
• SDG 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
• SDG 13.2: Integrate climate change measures into national policies, strategies, and planning

The article mentions the goal of achieving a 20 percent reduction in net direct greenhouse gas emissions by 2030 and net-zero direct greenhouse gas emissions by 2040 for covered buildings in Maryland. These targets align with SDG 7.3’s aim to improve energy efficiency and SDG 13.2’s objective of integrating climate change measures into policies and planning. The focus on reducing environmental impact and improving air quality in cities also relates to SDG 11.6.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Reduction in net direct greenhouse gas emissions
• Energy consumption data
• Energy cost savings per square foot

The article mentions that covered building owners will be required to measure and report direct emissions data annually starting in 2025. This indicates that the reduction in net direct greenhouse gas emissions can be used as an indicator to measure progress towards the targets. Additionally, the use of energy consumption data, collected through benchmarking, can serve as an indicator of energy efficiency improvements. The article also mentions that covered buildings are expected to save an average of $4.47 per square foot in energy costs, which can be used as an indicator of cost savings resulting from energy efficiency measures.

Table: SDGs, Targets, and Indicators

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Source: facilitiesnet.com

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