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MDE Has Issued An Advisory That Changes Condominium Energy Usage Reporting Requirements

In a recent blog post, I discussed the Maryland Building Energy Performance Standards that have been established through regulations of the Maryland Department of the Environment (“the MDE”).  The MDE regulations require annual “benchmark reporting” by the owners of buildings to which the program is applicable.  Under this program, building owners are required to report whole building energy consumption data for the previous calendar year.  Energy use information for 2024 must be submitted to the MDE by September 1, 2025.   As reported in the prior blog post, among the buildings that are required to submit energy use information to the MDE are “one or more buildings held in the condominium form of ownership with a combined gross floor area of 35,000 square feet or more, excluding the parking garage area, and governed by a single board of managers.”  In other words, for purposes of determining if a condominium meets the 35,000 square foot threshold, all buildings in the condominium were to be combined in the aggregate.  However, yesterday, the MDE issued a compliance advisory that changes this.  The advisory provides as follows:  “An individual building held in the condominium form of ownership with gross floor area less than 35,000 ft, excluding the parking garage area, is not required to submit a benchmarking report. Gross floor area is defined by the area between the principal exterior surfaces of the enclosing fixed walls of the building.”  The effect of this is that condominiums may now calculate their square footage on a per building basis rather than combining the square footage of all buildings in the condominium.  Essentially, an individual condominium building that is less than 35,000 is not covered by the reporting requirements, regardless of the size of other buildings in the complex.

Of course, any condominium building containing 35,000 square feet of more of gross floor area, excluding a parking garage, still must report is energy usage for 2024 by September 1, 2025.  Please see my prior blog post for details on the reporting program.

Maryland Building Energy Performance Standards Now Require Annual Reporting of Energy Usage For Certain Condominiums

[A Compliance Advisory has been issued by the Maryland Department of the Environment that changes condominium energy reporting requirements.  Please see my subsequent blog post] Maryland Building Energy Performance Standards (“BEPS”) have been established through regulations of the Maryland Department of the Environment (“the MDE”).  The BEPS are intended to improve building energy efficiency and reduce greenhouse gas emissions as one means of meeting the State’s legislatively mandated emissions reduction goals.   The MDE regulations require annual “benchmark reporting” by the owners of buildings to which the program is applicable. Benchmarking is the process of tracking and evaluating a building’s energy performance against similar buildings or established performance targets, and establishing a baseline for measuring progress.  Under this program building owners are required to report whole building energy consumption data for the previous calendar year 2024.

The benchmark reporting requirements are applicable to all existing buildings that meet the definition of a “Covered Building.”  This term means a commercial or multifamily building that has a gross floor area of 35,000 square feet or more, excluding the parking garage area.  The 35,000 square feet of gross floor area may be contained in a single building or two or more buildings that are served in whole or in part by the same electrical or gas meter, or the same heating and cooling system.  Significantly, a “Covered Building” expressly includes one or more buildings held in the condominium form of ownership with a combined gross floor area of 35,000 square feet or more, excluding the parking garage area, and governed by a single board of managers.  Condominium’s that meet this criteria are required to submit their energy use information for calendar year 2024 to the MDE by September 1, 2025.

Building owners create an account at the MDE website through the EPA Energy Star Portfolio Manager (“the ESPM”).  The registration of the building must include contact information for the building portfolio manager, the name of the organization, and the primary business type.  The data entered should consist of the building’s 2024 energy bills.  The ESPM account information can then be shared with the MDE.  The required data can also be obtained from the electric and/or gas supplier.  Such providers are required to provide the data within 90 days of receiving a request.  Providers are listed on the website, and can be engaged directly through the website.  The energy supplier can provide the information directly to an ESPM account, or can download the data to a building owner that can be uploaded by the building owner to the ESPM account.

While self-reporting will be accepted for this year for the reporting due on September 1, 2025 for calendar year 2024, beginning with the benchmark report for 2025, which will be due on June 1, 2026 third-party verification will be required, and will be required every five years thereafter.  Building owners will need to have a third-party verify the quality of their benchmarking reports before they submit them to the MDE.

There are exceptions for historic properties, schools, manufacturing buildings, agricultural buildings, hospitals and other lifecare facilities, and buildings containing confidential areas used by national defense agencies or contractors.  It is noteworthy that, during the 2025 session of the Maryland General Assembly, the MDE was directed to make specific recommendations for certain buildings including county-owned buildings, community colleges, emergency facilities, manufacturing buildings, and residential buildings, while giving consideration to tenants and condominium unit owners.  Accordingly, it is possible that changes may be made with regard to whether condominiums are included in “Covered Buildings.”  Presently, however, qualifying condominiums must meet the current reporting requirements.

 

 

 

 

Lower Required Percentage For Approval of Declaration Amendments Is Now In Effect

During the 2024 Session, the Maryland General Assembly passed Senate Bill 665 and House Bill 1496, which changed the amendment process in Section 11-103(c) of the Maryland Condominium Act so, as to lower the percentage required for approval of an amendment from 80 percent to 66 -2/3 percent of the total eligible voters in the condominium.  The legislation was signed by the Governor and took effect on October 1, 2024.  However, the reduced percentage does not apply in the event that any units are still owned by the developer, in which case the 80 percent requirement is still applicable. Additionally, the reduced percentage requirement does not apply to a purely corrective amendment of a typographical error under Section 11-103.1, which can be accomplished by the condominium’s board of directors.  Also remaining unchanged is the provision that the council of unit owners may amend the declaration to add or repeal a suspension of privileges provision by the affirmative vote of at least 60 percent of the total eligible voters of the condominium.

Condominium Electrical Vehicle Charging Requirements Would Include Electric Bicycles

Legislation introduced in the current session of the Maryland General Assembly would include electric bicycles within the requirements for electric charging stations at condominiums.  House
Bill 159 would amend Section 11-111.4 of the Condominium Act to expressly include electric bicycles along with motor vehicles subject to the Section’s requirements.  Section 11-111.4 provides that condominiums cannot prohibit or unreasonably restrict the installation or use of electrical vehicle charging equipment.  If approval is required for the installation or use, the condominium is required to review the application as it would any submission for approval of an architectural modification. It may not willfully avoid or delay review, and, if the condominium does not deny the application in writing within 60 days, it is deemed to have been approved, unless the delay is caused by a reasonable request for additional information.  The Bill is pending before the House Environmental and Transportation Committee.

I Am Now a Member of Gordon Feinblatt

I am pleased to confirm that, as of January 1, 2024, I have moved my practice and become a member or Gordon Feinblatt, LLC.  www.gfrlaw.com.   As you can see, the blog has a fresh new look, and you can expect continuing information and commentary, particularly as issues relevant to condominiums, homeowner associations and real estate development arise during this year’s session of the Maryland General Assembly.