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.
