Building Energy Performance Standards (BEPS) are no longer a distant concept; they are rapidly becoming a reality for building owners across the United States. As energy managers, we understand that navigating these evolving regulations can feel like deciphering a new language. This article aims to decode BEPS, specifically focusing on Maryland's BEPS, and equip you with the knowledge to prepare your buildings and avoid potential penalties.

What Exactly are Building Energy Performance Standards (BEPS)?

Simply put, BEPS are regulations that set minimum energy performance levels for existing buildings. They are designed to drive down energy consumption and greenhouse gas emissions from the building sector, a significant contributor to climate change. Think of it as an energy efficiency "report card" for your building, with increasingly higher grades expected over time.

Maryland has joined a growing number of jurisdictions implementing BEPS as a key strategy to meet ambitious climate goals. The Climate Solutions Now Act of 2022 established Maryland's statewide BEPS, impacting large commercial, multifamily residential, and state-owned buildings.

Maryland BEPS: Key Details for Building Owners

Let's delve into the specifics of Maryland's BEPS to understand how it affects you:

• Which Buildings are Covered? Maryland BEPS applies to existing commercial, multifamily, and state-owned buildings exceeding 35,000 square feet, excluding parking garage areas. New buildings put into operation after 2024 are also required to benchmark and report after their first full year of occupancy.
• The Benchmarking Baseline: The first step is benchmarking your building's energy performance using the ENERGY STAR Portfolio Manager. You'll need to report your 2024 energy consumption and building details starting in 2025. Think of benchmarking as establishing your building's current energy performance baseline.
• Performance Targets and Timelines: Maryland's BEPS aims for significant reductions in net direct greenhouse gas (GHG) emissions. The goal is a 20% reduction by January 1, 2030, compared to 2025 levels, and achieving net-zero direct GHG emissions by 2040. These targets are implemented through interim performance standards that become increasingly stringent over time, starting in 2030.
• Compliance Periods: Buildings that meet the performance standards won't need to take further action immediately. However, buildings that don't meet the standards will enter a five-year compliance period to make necessary improvements.
• Exemptions: Limited exemptions are available and must be applied for through the BEPS Portal. These include exemptions for:
  • Financial distress
  • Buildings unoccupied for the entire year
  • Buildings slated for demolition
  • Historic buildings
  • Public and nonpublic elementary and secondary schools
  • Manufacturing and agricultural buildings
  • Federal buildings
• Verification is Key: To ensure data accuracy, third-party verification of your benchmarking and energy usage data is required every five years, starting June 1, 2026. For newly constructed covered buildings, the first benchmarking report must be third-party verified regardless of the calendar year.
• Deadlines to Remember:
  • Benchmarking Data Reporting Begins: 2025 (for 2024 data)
  • Initial Benchmarking Reports (considered timely): If submitted by September 1, 2025.
  • Data for 2025 Calendar Year Due: June 1, 2026
  • First Third-Party Verification Deadline: June 1, 2026 (and every 5 years thereafter)
  • First Interim Standard Year for BEPS: 2030

Don't Wait to Prepare – Penalties for Non-Compliance

The covered buildings' reporting will be evaluated each year for compliance with net direct emis-sion standards. If a building exceeds its standards, the owner is subject to an alternative compli-ance fee (ACP) for every excess metric ton of emissions. The compliance fee is initially $230 per met-ric ton of excess CO2e in 2030, and it will increase by $4 per metric ton each following year.

The baseline year for a building—the year of energy performance for which buildings will be measured under BEPS—will be the 2025 calendar year data, including the weather-normalized values of net direct emissions and site EUI of all covered buildings. The final, most stringent standard will be enacted in 2040 and beyond, while there are increasingly robust interim standards in the periods of 2030-2034 and 2035-2039.

Regarding benchmarking, building owners must submit an initial report for the calendar year 2024 by June 1, 2025, and the baseline calendar year 2025 data by June 1, 2026. In addition, the benchmarking data must be verified by a third party every five years, beginning on June 1, 2026, to ensure data quality and accuracy.

Preparing Your Building for Maryland BEPS: A Step-by-Step Guide

Proactive preparation is crucial to ensure compliance and avoid potential penalties. Here’s a step-by-step guide to get you started:

1. Understand if Your Building is Covered: Verify if your building meets the size and building type criteria for Maryland BEPS. Use the Maryland Department of the Environment (MDE) BEPS portal to search for your building by address and confirm its status.
2. Establish an ENERGY STAR Portfolio Manager Account: If you don't already have one, create an account and enter your building's information. This is the platform for benchmarking and reporting.
3. Gather and Input Energy Data: Collect your building's energy consumption data for the 2024 calendar year (and subsequent years). This includes electricity, natural gas, and other fuel sources.
4. Benchmark Your Building’s Performance: Use Portfolio Manager to benchmark your building against similar buildings. This will give you a clear picture of your building's current energy performance and identify areas for improvement.
5. Conduct an Energy Audit: A professional energy audit is highly recommended. It will pinpoint energy inefficiencies in your building and identify cost-effective energy efficiency measures. Consider this your building's "annual physical." Your local utility company may offer energy audit incentives.
6. Develop and Implement an Energy Improvement Plan: Based on the energy audit findings, create a plan to implement energy efficiency upgrades. Common measures include:
   • LED Lighting Retrofits: "More lighting for less energy."
   • ENERGY STAR Certified Equipment: "Go on a Watt diet" by replacing old equipment with energy-efficient models.
   • Building Envelope Improvements: Improve insulation and air sealing – "a sweater for your building" - to reduce heating and cooling loads.
   • Retro-commissioning Building Systems: "Bring your building to the mechanic for a systems tune-up" to optimize existing HVAC and other systems.
   • Smart Controls: Install control systems for lighting, plug loads, and HVAC – "turn off the lights when you leave the room, meets the 21st Century" - to automate energy savings.
   • Electrification: Explore efficient electrification options like heat pumps for heating, cooling, and water heating, and induction cooking to reduce reliance on fossil fuels.
7. Explore Incentives and Financing: Maryland offers various incentives and financing programs to support energy efficiency upgrades. The Maryland Clean Buildings Hub is a valuable resource to find and leverage these opportunities.

Take Action Today:

• Visit the Maryland Department of the Environment BEPS website to access resources and the BEPS Portal.
• Explore the Maryland Clean Buildings Hub for incentives and technical assistance.
• Contact a qualified energy manager or auditor to assess your building and develop an energy improvement plan.

Conclusion: Embrace BEPS and a Sustainable Future

Maryland's Building Energy Performance Standards are a significant step towards a more sustainable future. While compliance may seem daunting, it also presents an opportunity to enhance your building's value, reduce operating costs, improve occupant comfort, and contribute to a healthier environment.

By understanding the requirements of Maryland BEPS and taking proactive steps to improve your building's energy performance, you can navigate these standards successfully and position your property for long-term success in a greener economy.