Following in the footsteps of Washington, D.C. and many other Jurisdictions, Montgomery County and the State of Maryland are implementing Building Energy Performance Standards (BEPS) aimed at reducing energy use and carbon emissions in buildings. Here, we will examine both jurisdictions’ upcoming BEPS and benchmarking guidelines.
While BEPS and Benchmarking are often cited in the same discussion, note the following distinction. Benchmarking is the annual collection of building data and energy usage whilst BEPS uses buildings’ benchmarking data to set efficiency standards and mandates underperforming buildings improve their efficiency.
Montgomery County BEPS
In Montgomery County, BEPS focuses on reducing energy usage intensity (EUI), requiring annual benchmarking of utility data and building characteristics through the EPA’s ENERGY STAR Portfolio Manager. Residential buildings between 25,000 and 250,000 sq. ft. must comply annually by June 1st, beginning in 2024. Failure to comply with the energy benchmarking requirements results in significant penalties. For an initial offense, the fine is up to $500 per day, and for repeat offenses, the fine increases to $750 per day. Data verification is required every three years, starting with Calendar Year 2023 data, which was submitted this year. Compliance deadlines for larger buildings extend through 2036. Building owners must either meet the required EUI targets or submit a Building Performance Improvement Plan (BPIP) if economic hardships prevent compliance.
Maryland Statewide BEPS
Maryland’s statewide BEPS, enacted through the Climate Solutions Now Act of 2022, focuses on net direct emissions per square foot, with an emphasis on CO2 reductions. Buildings over 35,000 sq. ft. must begin annual benchmarking by June 1st, 2025, with emissions targets set for 2030 and 2035. Buildings exceeding emissions limits will face a fee starting at $230 per metric ton of CO2e in 2030. Data verification is required every five years beginning with Calendar Year 2025 data, which must be submitted by June 1, 2026.
Compliance Example:
The below example outlines the calculation of excess emissions and compliance fees for a multifamily housing building in Maryland. By 2030, the required emissions standard is 0.82 kg CO2e per square foot per year, but the building’s actual emissions are 1.00 kg CO2e per square foot. The excess emissions amount to 0.18 kg CO2e per square foot, and with a total building size of 80,000 square feet, this results in 14.4 metric tons of excess emissions. To comply with regulations, the building must pay an alternative compliance fee of $230 per metric ton of CO2e, which totals $3,312 for the excess emissions.
Ongoing Compliance
Both Montgomery County and Maryland require ongoing benchmarking to track building performance. This continuous monitoring encourages building owners to enhance energy efficiency and reduce carbon emissions, aligning with long-term climate goals. Note that there will be overlap with buildings subject to Montgomery County BEPS and Maryland State BEPS. This means that covered buildings in both Jurisdictions will need to comply with both MoCo DEP’s and MDE’s compliance standards for annual benchmarking and BEPS.
How Honeydew Energy Advisors Can Help
Navigating the new BEPS regulations in Montgomery County and Maryland can be challenging, but Honeydew Energy Advisors can help simplify the process. We assist building owners and managers in meeting compliance requirements by:
- Collecting and managing utility data for benchmarking
- Submitting reports on time and ensuring data accuracy
- Conducting energy assessments and developing strategies for meeting EUI targets
- Preparing and submitting Building Performance Improvement Plans (BPIPs) when necessary
- Providing long-term support to meet ongoing benchmarking and emissions reduction goals
By working with Honeydew Energy Advisors, you can ensure that your building remains in compliance with the BEPS standards while improving energy efficiency and reducing operational costs.
Take Action Now
Don’t wait until the compliance deadlines are approaching—act now to get ahead of the new regulations. Honeydew Energy Advisors can help you stay compliant, reduce energy use, and avoid penalties. Contact us today to schedule a consultation and begin the process of meeting BEPS requirements for your building.