EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
*hb1415*
HOUSE BILL 1415
M3, M5 5lr3127
By: Delegates Wivell, Adams, Arentz, Baker, Buckel, Hornberger, Mangione,
Miller, Pippy, Reilly, and Valentine
Introduced and read first time: February 7, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Environment – Building Energy Performance Standard s and Energy Use 2
Intensity Targets – Exemptions 3
FOR the purpose of exempting a certain covered building from compliance with certain 4
building energy performance standards and energy use intensity targets until a 5
certain occurrence; and generally relating to building energy performance standards 6
and energy use intensity targets. 7
BY repealing and reenacting, without amendments, 8
Article – Environment 9
Section 2–1601 10
Annotated Code of Maryland 11
(2013 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Environment 14
Section 2–1602 15
Annotated Code of Maryland 16
(2013 Replacement Volume and 2024 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Environment 20
2–1601. 21
(a) In this subtitle the following words have the meanings indicated. 22
2 HOUSE BILL 1415
(b) (1) “Agricultural building” means a structure that is used primarily to 1
cultivate, manufacture, process, or produce agricultural crops, raw materials, products, or 2
commodities. 3
(2) “Agricultural building” includes a greenhouse. 4
(c) “Building” has the meaning stated in the International Building Code. 5
(d) “Commercial building” means a building that is subject to the commercial 6
provisions of the International Energy Conservation Code. 7
(e) (1) “Covered building” means a building that: 8
(i) 1. Is a commercial or multifamily residential building in the 9
State; or 10
2. Is owned by the State; and 11
(ii) Has a gross floor area of 35,000 square feet or more, excluding 12
the parking garage area. 13
(2) “Covered building” does not include: 14
(i) A building designated as a historic property under federal, State, 15
or local law; 16
(ii) A public or nonpublic elementary or secondary school building; 17
(iii) A manufacturing building; or 18
(iv) An agricultural building. 19
(f) “Direct greenhouse gas emissions” means greenhouse gas emissions produced 20
on–site by covered buildings. 21
(g) “District energy” means thermal energy generated at one or more central 22
facilities that produce hot water, steam, or chilled water that then flows through a network 23
of insulated underground pipes to provide hot water, space heating, air conditioning, or 24
chilled water to nearby buildings. 25
2–1602. 26
(a) [The] SUBJECT TO SUBSECTION (F) OF THIS SECTION , THE Department 27
shall develop building energy performance standards for covered buildings that achieve: 28
HOUSE BILL 1415 3
(1) A 20% reduction in net direct greenhouse gas emissions on or before 1
January 1, 2030, as compared with 2025 levels for average buildings of similar construction; 2
and 3
(2) Net–zero direct greenhouse gas emissions on or before January 1, 2040. 4
(b) To facilitate the development of building energy performance standards under 5
this section, the Department shall require the owners of covered buildings to measure and 6
report direct emissions data to the Department annually beginning in 2025. 7
(c) (1) On or before June 1, 2023, the Department shall adopt regulations to 8
implement this section. 9
(2) Regulations adopted under this section shall: 10
(i) Subject to items (ii) and (iii) of this paragraph AND SUBSECTION 11
(F) OF THIS SECTION , include energy use intensity targets by building type; 12
(ii) As necessary, include special provisions or exceptions to account 13
for: 14
1. Building age; 15
2. Regional differences; 16
3. The unique needs of particular building or occupancy 17
types, including health care facilities, laboratories, assisted living and nursing facilities, 18
military buildings, critical infrastructure, and buildings used in life sciences as defined in 19
§ 3–201 of the Economic Development Article; and 20
4. The use of district energy systems and biofuels by covered 21
buildings; 22
(iii) Consider the needs of the owners of covered buildings who: 23
1. Are not responsible for the design, modification, fixtures, 24
or equipment of commercial tenants; 25
2. Do not have access to or control over building energy 26
systems that are used or controlled by commercial tenants; or 27
3. Own buildings occupied by commercial tenants who are 28
responsible for all maintenance of and repairs to the buildings; 29
(iv) Provide maximum flexibility to the owners of covered buildings 30
to comply with building energy performance standards; 31
4 HOUSE BILL 1415
(v) Subject to paragraph (3) of this subsection, include an alternative 1
compliance pathway allowing the owner of a covered building to pay a fee for greenhouse 2
gas emissions attributable to the building’s failure to meet direct greenhouse gas emissions 3
reduction targets; and 4
(vi) To the extent authorized by law, include financial incentives 5
recommended by the Building Energy Transition Implementation Task Force. 6
(3) The Department may not set an alternative compliance fee that is less 7
than the social cost of greenhouse gases adopted by the Department or the U.S. 8
Environmental Protection Agency. 9
(d) Electric companies and gas companies shall provide energy data, including 10
whole–building and aggregate data, to the owners of covered buildings for benchmarking 11
purposes. 12
(e) In calculating the statewide standards developed by the Department under 13
this section, an owner of a covered building may not consider greenhouse gas emissions or 14
energy use by a commercial tenant of the covered building that: 15
(1) Is a food service facility as defined in COMAR 10.15.03.02; and 16
(2) Engages in commercial cooking and water heating. 17
(F) THE DEPARTMENT MAY NOT RE QUIRE A COVERED BUILDING THAT 18
RECEIVED A USE AND OCCUPANCY PERMIT BEFORE JUNE 1, 2022, TO COMPLY WITH 19
BUILDING ENERGY PERF ORMANCE STANDARDS DEVELOPED UNDER OR ENERGY USE 20
INTENSITY TARGETS ADOPTED IN ACCORDANC E WITH THIS SECTION UNTIL IT 21
BECOMES NECESSARY TO REPLACE LIGHTING SYSTEMS, HEATING, VENTILATING, 22
AND AIR CONDITIONING (HVAC) SYSTEMS, OR OTHER MAJOR COMPONENTS OF THE 23
COVERED BUILDING DUE TO THE FAILURE O F THOSE COMPONENTS OR AS A RESULT 24
OF THE END OF LIFE O F THOSE COMPONENTS . 25
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26
October 1, 2025. 27