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MarylandHB 00492025 Regular SessionHouseWALLET

Environment - Building Energy Performance Standards - Alterations and Analysis

Sponsored By: Sponsor information unavailable

Became Law

EnvironmentAir PollutionAuditors and AuditsClean Energy Credits -see also- Envir.Incent; Renew.EnergyCommunity CollegesCounties -see also- Chartered Counties; Code Counties; etc.Energy Matters -see also- Fuel; NuclearMatt; PwrPlnts; etc.Environment, Department of theEnvironmental IncentivesEnvironmental Matters -see also- Conserv; Nat Resrce; PollutEquipment -see also- Charging; Med. Equip.; MV Equip; etc.Fees -see also- Attys' Fees; Devt Fees & TaxesFormsGrantsIndustry and TechnologyInflationJob Training -see also- Continuing Ed; Vocational RehabLegislation -see also- Correct Leg; Cur Leg; Emerg BillsLoans -see also- Credit; Mortgages; Scholarships&SFAPenalties and Sentences -see also- Death PenaltyPublic Buildings and Facilities -see also- Stadiums; St HseRenewable Energy Sources -see also- Geotherm; Solar; etc.ReportsResidential Property -see also- Apartments; CondominiumsRevenue and Taxes -see also- (specific tax)Rules and RegulationsSignaturesStandards and Best PracticesStudies -see also- Commitees & Commissions; ReportsSunsetTimeWaiversWeights and Measures

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 5 benefits, 2 costs, 3 mixed.

Building energy targets account for differences

Maryland's rules account for building type, age, location, operating hours, district energy, and owners' limited control over tenants' energy systems. They also account for on-site renewable energy and biomethane. Rules exclude sterilization-steam energy and emissions for health care, laboratory, assisted living, nursing, military, and life sciences buildings. Emergency backup power receives exclusions for listed facilities, but not the critical infrastructure category specifically excepted by law.

Building performance charges wait until 2032

Maryland cannot impose or collect alternative compliance fees or penalties for missing building performance targets before 2032. Certified county programs must follow the same timing limit. This delay does not cover penalties for failing to report or the annual reporting fee.

Compliance payments fund building upgrade help

Alternative compliance payments go into the Maryland Strategic Energy Investment Fund. That money must support grants and loans helping covered-building owners meet energy rules. No more than 10% of these payments can fund administration of the grant and loan assistance. The law does not set individual award amounts.

Secure buildings get energy rule exemptions

Buildings containing a permanent sensitive compartmented information facility are exempt from energy-use targets when a listed government operator runs it. Operators include General Services, Defense, NSA, Homeland Security, another U.S. intelligence agency, or Maryland, including through agency contractors. These buildings also receive an energy-use reporting exemption when tenant approval is required but withheld over secure-area confidentiality concerns. The exemptions do not create a general waiver of all building standards.

Some buildings stay outside energy rules

Maryland excludes hospitals from the statewide building energy standards program. Buildings also qualify for exclusion when manufacturing uses at least 50% of their gross floor area. Historic properties, public and private K–12 schools, and agricultural buildings remain excluded. The statewide program otherwise covers commercial, multifamily, and State-owned buildings of at least 35,000 square feet, excluding parking.

Building owners face reporting and energy fees

Covered-building owners pay an annual reporting fee of $100 per building, adjusted for inflation, to fund program administration. Owners can use fee payments instead of meeting energy-use or direct greenhouse gas targets. The energy fee is 5 cents per 1,000 British thermal units above target. The emissions fee is at least $190 per excess metric ton of carbon dioxide equivalent; both rates use 2020 inflation baselines. When owners use both payment options, the state collects only the higher fee.

Waiver applicants must hire trained auditors

Owners seeking older-equipment or hardship fee waivers must hire an auditor who completed Maryland's training. Maryland must offer training on energy rules, compliance plans, and engineering studies to auditors with recognized credentials in good standing. The state publishes a list of auditors who finish training and charges them a fee covering training costs.

Counties can run local energy programs

Maryland must certify county programs adopted by March 1, 2025, that are at least as strict as statewide rules. Certification replaces statewide program requirements for covered buildings in that county. Counties must send yearly building lists, energy-use data, direct emissions, and compliance status to the state. Certified counties can enforce standards and collect compliance fees and penalties within state amounts and collection rules. They can also change local programs and set standards for buildings outside statewide coverage.

Older equipment gets conditional fee relief

Owners can request a one-time, whole-building fee waiver for energy use or emissions from equipment installed before 2025. Requests are allowed through 2039; coverage is limited to the equipment's expected remaining life, using a state-selected public database. At least one year before the start, owners must submit an equipment inventory and a trained auditor's plan. The plan must show final-target compliance before 2040 with minimal fee payments, and owners must pay review costs. Owners must certify that projects finish on schedule or pay the waived fees.

Owners can seek hardship fee waivers

Owners can request fee waivers for energy or emissions measures Maryland finds impractical or not financially feasible. At least one year before the requested start, owners must submit a trained auditor's engineering study. The study must assess feasibility and show the energy use or emissions that remain above target without those measures. Owners pay review costs; Maryland considers available capital and the higher applicable compliance payment when reviewing requests. Approved waivers last five years and can be renewed.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 314 • No: 276

House vote • 4/7/2025

Third Reading Passed

Yes: 101 • No: 38 • Other: 1

Senate vote • 4/5/2025

Third Reading Passed

Yes: 38 • No: 4

House vote • 3/17/2025

Third Reading Passed

Yes: 101 • No: 35 • Other: 2

House vote • 3/14/2025

Floor Amendment {833528/1 (Delegate Hartman) Rejected

Yes: 35 • No: 101 • Other: 4

House vote • 3/14/2025

Floor Amendment {293820/1 (Delegate Chisholm) Rejected

Yes: 39 • No: 98 • Other: 3

Actions Timeline

  1. Enacted under Article II, Section 17(c) of the Maryland Constitution - Chapter 844

    5/25/2025

  2. Passed Enrolled

    4/7/2025House

  3. Third Reading Passed (101-38)

    4/7/2025House

  4. House Concurs Senate Amendments

    4/7/2025House

  5. Third Reading Passed (38-4)

    4/5/2025Senate

  6. Second Reading Passed with Amendments

    4/5/2025Senate

  7. Floor Amendment {163826/1 (Senator Watson) Adopted

    4/5/2025Senate

  8. Favorable with Amendments {103324/1 Adopted

    4/5/2025Senate

  9. Favorable with Amendments Report by Education, Energy, and the Environment

    4/5/2025Senate

  10. Referred Education, Energy, and the Environment

    3/17/2025Senate

  11. Third Reading Passed (101-35)

    3/17/2025House

  12. Second Reading Passed with Amendments

    3/14/2025House

  13. Floor Amendment {163225/1 (Delegate Chisholm) Adopted

    3/14/2025House

  14. Floor Amendment {293820/1 (Delegate Chisholm) Rejected (39-98)

    3/14/2025House

  15. Floor Amendment {833528/1 (Delegate Hartman) Rejected (35-101)

    3/14/2025House

  16. Motion Special Order until 03/14 (Delegate Korman) Adopted

    3/13/2025House

  17. Favorable with Amendments {273526/1 Adopted

    3/13/2025House

  18. Favorable with Amendments Report by Environment and Transportation

    3/12/2025House

  19. Hearing 2/12 at 1:00 p.m.

    1/27/2025House

  20. First Reading Environment and Transportation

    1/8/2025House

  21. Pre-filed

    10/9/2024House

Bill Text

  • Enacted

    5/25/2025

    PDF

  • Enrolled

    4/7/2025

    PDF

  • Third Reading

    3/14/2025

    PDF

  • First Reading

    1/8/2025

    PDF

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