Building Green: The Impact of Maryland’s Climate Pollution Reduction Plan
By: Anastacia E. Topaltzas, Associate
In June of 2024, the Governor of Maryland signed an Executive Order Implementing Maryland’s Climate Pollution Reduction Plan (the “CPRP”), which sets forth the State’s plan to reduce greenhouse gas emissions 60% by 2031, and achieve net-zero emissions by 2045.[1] The CPRP outlines the State’s current and incoming policies in the following areas: Economywide, Electricity, Transportation, Buildings, Industry, Waste, Agriculture, and Forestry and Land Use.[2] The majority of regulatory implementation falls on the Maryland Department of the Environment and other government entities; however, certain policies in the above mentioned areas will impact individuals, as well as private entities. This Article outlines the notable impacts of the CPRP on buildings in the State of Maryland.
EV and Solar-Ready Standards for New Buildings: As of October 2023, Maryland home builders must include one “EVSE-installed” or “EV-ready”[3] parking space “during the construction of single-family detached houses, duplexes, and townhouses.” Multifamily residential buildings are currently excluded from the legislation, however, the CPRP calls for the General Assembly to extend the EV-Ready requirements to new multifamily buildings. As installation of electric vehicle parking spaces may be time consuming and costly, home builders and multifamily residential building owners should budget accordingly and keep a pulse on the latest electric vehicle charging technologies.
Building Energy Performance Standards (BEPS): The Maryland BEPS will require the owners of Covered Buildings[4] to benchmark their energy use by utilizing the EPA’s Energy Star Portfolio Manager tool, in efforts to achieve a 20% reduction in net GHG emissions on or before January 1, 2030, and net-zero emissions on of before January 1, 2040. A “Covered Building” is a commercial or multifamily residential building located in Maryland that “has a gross floor area of 35,000 square feet or more, excluding the parking garage area.”[5] If the property has multiple building structures, the combined gross floor area of the buildings must be at least 35,000 square feet.[6] However, the following buildings are exempt from the BEPS: “historic properties, public and nonpublic elementary and secondary schools, manufacturing buildings, agricultural buildings, and federal buildings.”[7] All commercial building owners should take a moment to review the complete definition of a “Covered Building”, which is codified under COMAR 26.28.01.02, to determine if the structure falls within the scope of the regulation.
Covered Buildings will be subject to “interim performance standards” before 2040 and to “final performance standards” after 2040. The specific interim and final “Net Direct Emission Standards” (Kg CO2e per square foot) required for each Property Type (e.g., Hotel, Multifamily Housing, Hospital, Restaurant) are codified under COMAR 26.28.03.02. Building owners are required to submit their Initial Benchmarking Report by June 1, 2025, which will include the building’s data from January 1, 2024 through December 31, 2024. Building owners may obtain the necessary data through “electric and gas companies, and fuel distributors, and district energy providers that service the building.”[8] The Maryland Department of the Environment’s (MDE) “TM 24-01 Technical Guidance and Calculation Methodologies to Comply with BEPS” provides helpful resources related to obtaining and reporting the required data, and reports that the MDE will publishing further guidance on how to use the Portfolio Manager portal.[9]
Later this decade, the new Zero-Emission Heating Equipment Standard (ZEHES) will require the installation of new heating systems in Maryland buildings to produce zero on-site emissions, such as electric water heaters and heat pumps for buildings spaces.[10] According to the CPRP, there is currently a federal tax credit that provides up to $2,000 off of installation cost for a heat pump. The Maryland Energy Administration also offers rebates of up to $8,000 off the installation cost for certain low, moderate, and middle income households.
Additional Electricity Policies of Note: The CPRP also calls for the modification of Maryland’s current Renewable Portfolio Standard, which “requires approximately 50% of the electricity consumed in the State to be generated by renewable sources by 2030.”[11] In addition, the CPRP provides details related to the new Clean Power Standard, along with State incentives for renewable energy. The Clean Power Standard, which is currently undergoing development by state agencies, will require “100% of electricity consumed in the State to be generated by clean and renewable sources of energy by 2035”.[12] Maryland intends to achieve this lofty goal through the development of technologies such as grid-scale and rooftop solar panels, hydropower, as well as building updated infrastructure that will enhance the electric grid.[13] These impending advancements are important for building owners to keep an eye on, as enhancements Maryland’s electricity infrastructure will fluctuate costs.
The Maryland Secretary of the Environment, Serena McIlwain, acknowledges the progressive nature of the CPRP, proclaiming that it is a “nation-leading plan [designed] to meet the most ambitious greenhouse gas reduction goals of any state.”[14] The CPRP is pioneering indeed, and Maryland building owners that are impacted by the plan will have to tackle its impending regulations proactively and efficiently, to build Maryland’s “green” future.
