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Client Alert: The Maryland Department of the Environment Publishes New Proposed Building Energy Performance Standards That Would Impact Many Commercial Property Owners and Tenants

Date: September 18, 2024
On September 6th, the Maryland Department of the Environment (“MDE”) officially withdrew the proposed regulations it had previously issued in December 2023, creating statewide Building Energy Performance Standards (“BEPS”) and replaced them with an entire new set of proposed BEPS regulations. The BEPS are required as part of the implementation of the Climate Solutions Now Act of 2022, which mandates that certain buildings (generally 35,000 square feet and larger, with some buildings being exempt) in Maryland achieve net zero greenhouse gas emissions by 2040, with initial reduction standards having to be attained in 2030, and building owners required to report energy data in 2025.

The new proposed regulations were proposed after strong opposition and concern over the legality of certain aspects of the initial proposed regulations. The new proposed regulations do not include the controversial “benchmarking standards” that had previously been advanced, but many other requirements that impose significant costs for building owners and their tenants remain in place. Among them, the proposed regulations call for initial reporting of a building’s 2024 energy use in June 2025.

Comments on the new proposed regulations may be submitted to the MDE at BEPS.MDE@maryland.gov no later than 5:00 p.m. on October 9, 2024. MDE will hold a virtual public hearing on the proposed regulations on October 9, 2024, at 1:00 p.m., during which comments may also be presented. 

Additional information, a copy of the proposed regulations themselves, and supporting documents are available for review at the Maryland Department of the Environment’s website at http://www.mde.state.md.us/programs/regulations/air/Pages/reqcomments.aspx.

Whiteford’s team of real estate attorneys are available to assist with any questions.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.