EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb0049*
HOUSE BILL 49
M3 (5lr0290)
ENROLLED BILL
— Environment and Transportation/Education, Energy, and the Environment —
Introduced by Chair, Environment and Transportation Committee (By Request –
Departmental – Environment)
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Environment – Building Energy Performance Standards – Compliance and 2
Reporting Alterations and Analysis 3
FOR the purpose of altering an alternative compliance fee paid by certain owners of covered 4
buildings under certain circumstances to include the energy use attributable to the 5
building’s failure to meet certain energy targets; requiring certain regulations to 6
include a certain annual reporting fee to cover certain costs; requiring the 7
Department of the Environment to deposit alternative compliance fees into the 8
Maryland Strategic Energy Investment Fund; and generally relating to compliance 9
and reporting for Building Energy Performance Standards altering the requirements 10
for certain regulations adopted by the Department of the Environment relating to 11
building energy performance standards to include certain crediting, exclusions, and 12
considerations, a certain alternative compliance pathway fee for energy use 13
attributable to a building’s failure to meet energy use intensity targets, certain 14 2 HOUSE BILL 49
waivers from certain alternative compliance pathway fees, and a certain annual 1
reporting fee to cover certain costs; requiring the Department to offer certain 2
training to help certain energy auditors understand the requirements under the 3
building energy performance standards and publish a list of energy auditors that 4
have completed the training and a certain annual reporting fee to cover certain costs; 5
authorizing requiring the Department to certify a certain building energy 6
performance standards program adopted by a county under certain circumstances; 7
requiring the Department to deposit alternative compliance pathway payments into 8
the Maryland Strategic Energy Investment Fund conduct a certain analysis; and 9
generally relating to building energy performance standards. 10
BY repealing and reacting, with amendments, 11
Article – Environment 12
Section 2–1601 and 2–1602(c) 13
Annotated Code of Maryland 14
(2013 Replacement Volume and 2024 Supplement) 15
BY adding to 16
Article – Environment 17
Section 2–1602(f) 18
Annotated Code of Maryland 19
(2013 Replacement Volume and 2024 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – Environment 22
Section 2–1602(c) 23
Annotated Code of Maryland 24
(2013 Replacement Volume and 2024 Supplement) 25
(As enacted by Chapter 38 of the Acts of the General Assembly of 2022) 26
BY repealing and reenacting, without amendments, 27
Article – Economic Development 28
Section 3–201(a) and (d) 29
Annotated Code of Maryland 30
(2024 Replacement Volume and 2024 Supplement) 31
BY repealing and reenacting, without amendments, 32
Article – Environment 33
Section 2–1202(a) and (h) 34
Annotated Code of Maryland 35
(2013 Replacement Volume and 2024 Supplement) 36
BY repealing and reenacting, without amendments, 37
Article – Public Utilities 38
Section 1–101(a) and (h–1) 39
Annotated Code of Maryland 40
(2020 Replacement Volume and 2024 Supplement) 41 HOUSE BILL 49 3
BY repealing and reenacting, without amendments, 1
Article – State Government 2
Section 9–20B–05(a) and (b) 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2024 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – State Government 7
Section 9–20B–05(e) 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2024 Supplement) 10
BY adding to 11
Article – State Government 12
Section 9–20B–05(g–2) 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2024 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Environment 18
2–1602. 19
(c) (1) On or before June 1, 2023, the Department shall adopt regulations to 20
implement this section. 21
(2) Regulations adopted under this section shall: 22
(i) Subject to items (ii) and (iii), (III), (IV), AND (V) of this 23
paragraph, include energy use intensity targets by building type; 24
(ii) As necessary, include special provisions or exceptions to account 25
for: 26
1. Building age; 27
2. Regional differences; 28
3. The unique needs of particular building or occupancy 29
types, including health care facilities, laboratories, assisted living and nursing facilities, 30
military buildings, critical infrastructure, and buildings used in life sciences AS DEFINED 31
IN § 3–201 OF THE ECONOMIC DEVELOPMENT ARTICLE as defined in § 3–201 of the 32
Economic Development Article; and 33 4 HOUSE BILL 49
4. The use of district energy systems and biofuels by covered 1
buildings; 2
5. CREDITING THE GENERAT ION OF ON –SITE 3
RENEWABLE ENERGY BY COVERED BUILDINGS TO WARD THEIR ENERGY US E 4
INTENSITY TARGETS ; 5
6. CREDITING THE GREENHO USE GAS REDUCTION 6
IMPACT OF THE ON –SITE USE OF BIOMETHA NE; 7
7. EXCLUDING THE ENERGY USE AND GREENHOUSE G AS 8
EMISSIONS RELATED TO THE PRODUCTION OF ST EAM FOR STERILIZATIO N IN A 9
HEALTH CARE FACILITY , LABORATORY , ASSISTED LIVING AND NURSING FACILITY , 10
MILITARY BUILDING , OR BUILDING USED IN LIFE SCIENCES; AND 11
8. EXCLUDING THE ENERGY USE AND GREENHOUSE G AS 12
EMISSIONS RELATED TO THE GENERATION OF EM ERGENCY BACKUP POWER AT A 13
HEALTH CARE FACILITY , LABORATORY , ASSISTED LIVING AND NURSING FACILITY , 14
MILITARY BUILDING , CRITICAL INFRASTRUCT URE, EXCEPT FOR ANY CRITI CAL 15
INFRASTRUCTURE IDENTIFIED UNDER § 1–101(H–1)(2)(II) OF THE PUBLIC 16
UTILITIES ARTICLE, OR BUILDING USED IN LIFE SCIENCES; AND 17
9. OPERATIONAL NEEDS , INCLUDING SCALING FA CTORS 18
TO ADJUST FOR DIFFER ENT OPERATING HOURS ; 19
(iii) Consider the needs of the owners of covered buildings who: 20
1. Are not responsible for the design, modification, fixtures, 21
or equipment of commercial tenants; 22
2. Do not have access to or control over building energy 23
systems that are used or controlled by commercial tenants; or 24
3. Own buildings occupied by commercial tenants who are 25
responsible for all maintenance of and repairs to the buildings; 26
(iv) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , EXEMPT 27
FROM ENERGY USE INTE NSITY TARGETS A COVE RED BUILDING THAT CO NTAINS AN 28
AREA DESIGNED , BUILT, AND OPERATED AS A PE RMANENT SENSITIVE 29
COMPARTMENTED INFORM ATION FACILITY AND I S OPERATED BY AN AGE NCY OR 30
CONTRACTOR OF : 31
1. THE U.S. GENERAL SERVICES ADMINISTRATION ; 32
HOUSE BILL 49 5
2. A. THE U.S. DEPARTMENT OF DEFENSE; 1
B. THE NATIONAL SECURITY AGENCY; 2
C. THE U.S. DEPARTMENT OF HOMELAND SECURITY; 3
OR 4
D. ANY OTHER U.S. INTELLIGENCE AGENCY ; OR 5
3. THE STATE; 6
(V) EXEMPT AN OWNER OF A COVERED BUILDING FRO M 7
ENERGY USE INTENSITY REPORTING REQUIREMEN TS IF: 8
1. THE COVERED BUILDING MEETS THE CRITERIA 9
UNDER ITEM (IV) OF THIS PARAGRAPH ; AND 10
2. THE IN CIRCUMSTANCES WHER E TENANT 11
AUTHORIZATION IS REQ UIRED, THE TENANT OR OCCUPANT D OES NOT PROVIDE 12
ENERGY USE INFORMATI ON TO THE OWNER OF T HE COVERED BUILDING DUE TO 13
CONCERNS ABOUT THE C ONFIDENTIALITY OF TH E BUILDING’S SECURE AREA; 14
(VI) Provide maximum flexibility to the owners of covered buildings 15
to comply with building energy performance standards; 16
(v) (VII) Subject to paragraph (3) (4) (3) of this subsection AND 17
SUBSECTION (F) OF THIS SECTION , include an alternative compliance pathway allowing 18
the owner of a covered building to pay a fee for [greenhouse]: 19
1. GREENHOUSE gas emissions attributable to the 20
building’s failure to meet direct greenhouse gas emissions reduction targets; and 21
2. ENERGY USE ATTRIBUTAB LE TO THE BUILDING ’S 22
FAILURE TO MEET ENER GY USE INTENSITY TAR GETS; 23
(VIII) SUBJECT TO PARAGRAPH (4)(II) OF THIS SUBSECTION AND 24
SUBSECTION (F) OF THIS SECTION , INCLUDE AN ALTERNATI VE COMPLIANCE 25
PATHWAY ALLOWING THE OWNER OF A COVERED B UILDING TO PAY A FEE OF 5 26
CENTS PER THOUSAND BRITISH THERMAL UNITS OF ENERGY, ADJUSTED FOR 27
INFLATION USING 2020 AS THE BASELINE Y EAR FOR CALCULATING THE 28
ADJUSTMENT , FOR ENERGY USE ATTRI BUTABLE TO THE BUILD ING’S FAILURE TO 29
MEET ENERGY USE INTE NSITY TARGETS; 30
6 HOUSE BILL 49
(IX) ALLOW THE OWNER OF A COVERED BUILDING TO REQUEST 1
A ONE–TIME WAIVER, FOR THE ENTIRE BUILD ING, FROM PAYING AN ALTER NATIVE 2
COMPLIANCE PATHWAY F EE UNDER ITEMS (VII) AND (VIII) OF THIS PARAGRAPH 3
THROUGH NOT LATER TH AN 2039 FOR ENERGY OR EMISSI ONS ATTRIBUTABLE TO 4
CONTINUED OPERATION OF EQUIPMENT INSTALL ED BEFORE 2025 FOR THE 5
EXPECTED AVERAGE REM AINING LIFESPAN OF T HAT EQUIPMENT , AS IDENTIFIED BY 6
A PUBLICLY AVAILABLE DATABASE SELECTED BY THE DEPARTMENT , BY: 7
1. SUBMITTING TO THE DEPARTMENT , AT LEAST 1 YEAR 8
BEFORE THE REQUESTED WAIVER WOULD TAKE EF FECT: 9
A. AN INVENTORY OF DESCR IPTIONS, SERIAL NUMBERS , 10
AND INSTALLATION DAT ES OF THE EQUIPMENT T HAT PROVIDES THE BAS IS OF THE 11
WAIVER APPLICATIONS ; AND 12
B. A PLAN PREPARED BY AN ENERGY AUDITOR THAT 13
COMPLETED THE TRAINI NG REQUIRED UNDER PA RAGRAPH (7) OF THIS SUBSECTION 14
DETAILING THE DATES THAT SPECIFIC PROJEC TS WILL BE COMPLETED AND THE 15
ENERGY USE INTENSITY AND GREENHOUSE GAS E MISSIONS SAVINGS THA T WILL 16
RESULT FROM THE PROJ ECTS; 17
2. DEMONSTRATING IN THE PLAN PREPARED UNDER 18
ITEM 1B OF THIS ITEM HOW THE BUILDING WILL COME I NTO COMPLIANCE WITH THE 19
FINAL TARGETS BEFORE 2040 WITH MINIMAL RELIANCE ON ALTERNATIVE 20
COMPLIANCE PATHWAY P AYMENTS; 21
3. CERTIFYING THAT THE P ROJECTS WILL BE 22
COMPLETED BY THE DAT ES DETAILED UNDER IT EM 1B OF THIS ITEM, OR THAT THE 23
EXEMPTED ALTERNATIVE COMPLIANCE PATHWAY F EES WILL BE PAID IF THE 24
PROJECTS ARE NOT COMPLETED BY THO SE DATES; AND 25
4. PAYING A FEE TO COVER THE COST FOR THE 26
DEPARTMENT OR ITS CON TRACTOR TO REVIEW TH E PLAN; 27
(X) SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION , ALLOW 28
THE OWNER OF A COVER ED BUILDING TO REQUE ST A WAIVER FROM PAY ING 29
ALTERNATIVE COMPLIANCE PATHWAY FEES FOR ENE RGY USE OR GREENHOUS E GAS 30
EMISSIONS ASSOCIATED WITH ENERGY OR EMISS IONS REDUCTION MEASU RES THAT 31
THE DEPARTMENT DETERMINES TO BE IMPRACTICABLE OR ECONOMICALLY 32
INFEASIBLE BY: 33
1. SUBMITTING TO THE DEPARTMENT , AT LEAST 1 YEAR 34
BEFORE THE REQUESTED WAIVER WOULD TAKE EF FECT, AN ENGINEERING STUDY 35
PREPARED BY AN ENERG Y AUDITOR THAT COMPL ETED THE TRAINING RE QUIRED 36 HOUSE BILL 49 7
UNDER PARAGRAPH (7) OF THIS SUBSECTION D ETAILING THE PRACTIC ABILITY OR 1
IMPRACTICABILITY OR ECONOMIC FEASIBILIT Y OR INFEASIBILITY O F ENERGY OR 2
EMISSIONS REDUCTION MEASURES THAT WOULD BE NEEDED TO ACHIEVE THE 3
ENERGY USE INTENSITY AND DIRECT GREENHOUS E GAS EMISSIONS REDU CTION 4
TARGETS; 5
2. DETAILING THE ENERGY USE INTENSITY OR DIR ECT 6
GREENHOUSE GAS EMISS IONS ABOVE TARGET LEVELS THAT W OULD OCCUR IF THE 7
OWNER OF THE COVERED BUILDING DOES NOT IM PLEMENT THE IMPRACTI CABLE OR 8
ECONOMICALLY INFEASI BLE MEASURES ; AND 9
3. PAYING A FEE TO COVER THE COST FOR THE 10
DEPARTMENT OR ITS CON TRACTOR TO REVIEW TH E STUDY; 11
(VI) (XI) (VIII) To the extent authorized by law, include financial 12
incentives recommended by the Building Energy Transition Implementation Task Force; 13
AND 14
(VII) (XII) (IX) INCLUDE AN ANNUAL REP ORTING FEE OF $100 15
PER COVERED BUILDING , ADJUSTED FOR INFLATI ON, TO COVER THE 16
ADMINISTRATIVE COSTS UNDER THIS SECTION OF THE PROGRAM . 17
(3) (I) AN OWNER OF A COVERED BUILDING THAT IS EXE MPT FROM 18
ENERGY USE INTENSITY TARGETS UNDER PARAGR APH (2)(IV) OF THIS SUBSECTION 19
SHALL PROVIDE AN AFF IDAVIT SIGNED BY AN OFFICER OR PRINCIPAL 20
CONTROLLING MEMBER , SHAREHOLDER , OR PARTNER OF THE OW NER OF THE 21
COVERED BUILDING THA T PROVIDES: 22
1. THE ADDRESS OF EACH B UILDING FOR WHICH TH E 23
EXEMPTION APPLIES ; AND 24
2. A STATEMENT CONFIRMING THAT AS OF THE DATE OF 25
THE AFFIDAVIT THE BU ILDING MEETS THE STAND ARDS SET FORTH IN PA RAGRAPH 26
(2)(IV) OF THIS SUBSECTION . 27
(II) INFORMATION SUBMITTED TO THE DEPARTMENT UNDER 28
PARAGRAPH (2)(IV) OF THIS SUBSECTION A ND THIS PARAGRAPH IS EXEMPT FROM 29
DISCLOSURE IN ACCORD ANCE WITH § 4–301(A)(2) OF THE GENERAL PROVISIONS 30
ARTICLE. 31
(4) (I) The Department may not set an alternative compliance fee that 32
is less than the social cost of greenhouse gases adopted by the Department or the U.S. 33
Environmental Protection Agency THAT IS IN THE AMOUN T OF $190 PER METRIC TON 34 8 HOUSE BILL 49
OF EXCESS CARBON DIO XIDE EQUIVALENT , ADJUSTED FOR INFLATI ON USING 2020 1
AS THE BASELINE YEAR FOR CALCULATING THE ADJUSTMENT . 2
(II) IF A COVERED BUILDING EXERCISES THE ALTERN ATIVE 3
COMPLIANCE FEE OPTIO N FOR BOTH DIRECT GR EENHOUSE GAS EMISSIO NS 4
TARGETS AND ENERGY USE INT ENSITY TARGETS , THE DEPARTMENT SHALL 5
COLLECT ONLY THE HIG HER OF THE TWO FEES . 6
(5) (I) A WAIVER GRANTED UNDER PARAGRAPH (2)(X) OF THIS 7
SUBSECTION: 8
1. SHALL REMAIN IN EFFEC T FOR A PERIOD OF 5 YEARS; 9
AND 10
2. MAY BE RENEWED . 11
(II) IN MAKING A DETERMINA TION ON A WAIVER REQ UEST 12
SUBMITTED UNDER PARA GRAPH (2)(X) OF THIS SUBSECTION , THE DEPARTMENT 13
SHALL: 14
1. IF A COVERED BUILDING EXERCISES THE 15
ALTERNATIVE COMPLIAN CE FEE OPTION FOR BO TH DIRECT GREENHOUSE GAS 16
EMISSIONS TARGETS AND ENERGY USE INTEN SITY TARGETS, CONSIDER ONLY THE 17
HIGHER OF THE TWO FE ES WHEN CALCULATING AVOIDED COMPLIANCE P ATHWAY 18
PAYMENTS; AND 19
2. CONSIDER THE AVAILABI LITY OF CAPITAL. 20
(4) (6) THE DEPARTMENT SHALL DEPO SIT AN ALTERNATIVE 21
COMPLIANCE FEE COLLE CTED UNDER THIS SUBSE CTION INTO THE MARYLAND 22
STRATEGIC ENERGY INVESTMENT FUND UNDER § 9–20B–05 OF THE STATE 23
GOVERNMENT ARTICLE. 24
(7) (I) THE DEPARTMENT SHALL : 25
1. OFFER TRAINING TO HEL P ENERGY AUDITORS TH AT 26
POSSESS, IN GOOD STANDING , A PROFESSIONAL LICENSE OR CREDENTIA L 27
RECOGNIZED BY THE DEPARTMENT UNDERSTAND THE REGULATIONS ADOP TED 28
UNDER THIS SECTION , INCLUDING REQUIREMEN TS FOR ALTERNATIVE C OMPLIANCE 29
PLANS AND ENGINEERIN G STUDIES; 30
2. PUBLISH A LIST OF ENE RGY AUDITORS THAT HA VE 31
COMPLETED THE TRA INING OFFERED UNDER ITEM 1 OF THIS SUBPARAGRAPH ; AND 32
HOUSE BILL 49 9
3. INCLUDE A FEE TO COVE R THE COST FOR THE 1
DEPARTMENT OR ITS CON TRACTOR TO PROVIDE T HE TRAINING. 2
(II) AN OWNER OF A COVERED BUILDING SHALL CONTR ACT 3
WITH AN ENERGY AUDIT OR THAT COMPLETED TH E TRAINING REQUIRED UNDER 4
SUBPARAGRAPH (I) OF THIS PARAGRAPH TO SUBMIT AN ENGINEERIN G PLAN OR 5
STUDY SEEKING A WAIV ER UNDER PARAGRAPH (2)(IX) AND (X) OF THIS SUBSECTION . 6
(8) (4) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS 7
PARAGRAPH , THE DEPARTMENT MAY SHALL CERTIFY A BUILDING E NERGY 8
PERFORMANCE STANDARD S PROGRAM ADOPTED BY A COUNTY ADMINISTERING A 9
BUILDING ENERGY PERF ORMANCE STANDARDS PR OGRAM ON OR BEFORE MARCH 1, 10
2025, AND WAIVE THE REQUIR EMENT FOR A COVERED BUILDING BUILDINGS IN THE 11
COUNTY TO COMPLY WITH TH E STATEWIDE PROGRAM ADOPTED UNDER THIS 12
SECTION WHEN: 13
1. THE DEPARTMENT DETERMINES , BASED ON A 14
DEMONSTRATION PROVID ED BY THE COUNTY , THAT THE COUNTY HAS ADOPTED A 15
BUILDING ENERGY PERF ORMANCE STANDARDS PR OGRAM THAT IS AT LEA ST AS 16
STRINGENT AS THE STATEWIDE PROGRAM AD OPTED UNDER THIS SEC TION; AND 17
2. THE COUNTY ANNUALLY S UBMITS TO THE 18
DEPARTMENT A COMPLETE LIST OF COVERED BUIL DINGS, INCLUDING THEIR 19
ENERGY USE INTENSITY , DIRECT GREENHOUSE GA S EMISSIONS, AND COMPLIANCE 20
STATUS WITH THE COUN TY PROGRAM. 21
(II) A COUNTY ADMINISTERING A BUILDING ENERGY 22
PERFORMANCE STANDARD S PROGRAM CERTIFIED BY THE DEPARTMENT UNDER 23
SUBPARAGRAPH (I) OF THIS PARAGRAPH MA Y TAKE APPROPRIATE A CTIONS TO 24
ENFORCE THE STANDARD S, INCLUDING: 25
1. ESTABLISHING ALTERNAT IVE COM PLIANCE 26
PATHWAYS FOR COMPLYI NG WITH ENERGY USE I NTENSITY AND DIRECT 27
GREENHOUSE GAS EMISS IONS REQUIREMENTS ES TABLISHED IN THE STA NDARDS; 28
2. IMPOSING AND COLLECTI NG ALTERNATIVE 29
COMPLIANCE FEES IN UP TO THE SAME AMOUNT AND IN THE SAME MANNER 30
ALLOWED BY THE DEPARTMENT UNDER THIS SECTION; AND 31
3. IMPOSING AND COLLECTI NG PENALTIES IN UP TO THE 32
SAME AMOUNT AND IN THE SAME MANNER ALLOWED BY TH E DEPARTMENT UNDER 33
§ 2–610 OF THIS TITLE. 34
10 HOUSE BILL 49
(9) (5) NOTHING IN THIS SECTI ON SHALL PRECLUDE A COUNTY 1
ADMINISTERING A BUILDING ENERGY PE RFORMANCE STANDARDS PROGRAM 2
CERTIFIED BY THE DEPARTMENT UNDER PARA GRAPH (4)(I) OF THIS SUBSECTION 3
FROM ADOPTING: 4
(I) ADOPTING BUILDING ENERGY PERF ORMANCE STANDARDS 5
FOR BUILDINGS THAT A RE NOT COVERED BUILD INGS UNDER THE STATE WIDE 6
PROGRAM ADOPTED UNDER THIS SECTION; OR 7
(II) MODIFYING AN ADOPTED BUILDING PERFORMANCE 8
STANDARDS PROGRAM . 9
(10) THE DEPARTMENT SHALL MAKE THE NECESSARY APPLIC ATION 10
AND FORMS FOR A WAIV ER UNDER THIS SECTIO N AVAILABLE ON THE 11
DEPARTMENT ’S WEBSITE. 12
(F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 13
DEPARTMENT MAY NOT : 14
(I) IMPOSE AND COLLECT AL TERNATIVE COMPLIANCE FEES 15
UNDER THIS SECTION U NTIL 2032; OR 16
(II) IMPOSE AND COLLECT PE NALTIES FOR FAILURE TO 17
ACHIEVE BUILDING ENE RGY PERFORMANCE STAN DARDS UNDER THIS SECT ION 18
UNTIL 2032. 19
(2) THE PROHIBITION UNDER PARAGRAPH (1)(II) OF THIS 20
SUBSECTION DOES NOT APPLY TO THE IMPOSIT ION AND COLLECTION O F PENALTIES 21
FOR FAILURE TO MEET ANY REPORTING REQUIR EMENTS UNDER THIS SE CTION. 22
SECTION 2. AND BE IT FU RTHER ENACTED, That the Laws of Maryland read 23
as follows: 24
Article – Environment 25
2–1602. 26
(c) (1) On or before June 1, 2023, the Department shall adopt regulations to 27
implement this section. 28
(2) Regulations adopted under this section shall: 29
(i) Subject to items (ii) AND (III), (III), (IV), AND (V) of this 30
paragraph, include energy use intensity targets by building type; 31
HOUSE BILL 49 11
(ii) As necessary, include special provisions or exceptions to account 1
for: 2
1. Building age; 3
2. Regional differences; 4
3. The unique needs of particular building or occupancy 5
types, including health care facilities, laboratories, assisted living and nursing facilities, 6
military buildings, critical infrastructure, and buildings used in life sciences AS DEFINED 7
IN § 3–201 OF THE ECONOMIC DEVELOPMENT ARTICLE as defined in § 3–201 of the 8
Economic Development Article; and 9
4. The use of district energy systems and biofuels by covered 10
buildings; 11
5. CREDITING THE GENERAT ION OF ON –SITE 12
RENEWABLE ENERGY BY COVERED BUILDINGS TOWARD THE IR ENERGY USE 13
INTENSITY TARGETS ; 14
6. CREDITING THE GREENHO USE GAS REDUCTION 15
IMPACT OF THE ON –SITE USE OF BIOMETHA NE; 16
7. EXCLUDING THE ENERGY USE AND GREENHOUSE G AS 17
EMISSIONS RELATED TO THE PRODUCTION OF ST EAM FOR STERILIZATIO N IN A 18
HEALTH CARE FACILITY , LABORATORY , ASSISTED LIVING AND NURSING FACILITY , 19
MILITARY BUILDING , OR BUILDING USED IN LIFE SCIENCES; AND 20
8. EXCLUDING THE ENERGY USE AND GREENHOUSE G AS 21
EMISSIONS RELATED TO THE GENERATION OF EM ERGENCY BACKUP POWER AT A 22
HEALTH CARE FACILITY , LABORATORY , ASSISTED LIVING AND NURSING FACILITY , 23
MILITARY BUILDING , CRITICAL INFRASTRUCT URE, EXCEPT FOR ANY CRITI CAL 24
INFRASTRUCTURE IDENT IFIED UNDER § 1–101(H–1)(2)(II) OF THE PUBLIC 25
UTILITIES ARTICLE, OR BUILDING USED IN LIFE SCIENCES; AND 26
9. OPERATIONAL NEEDS , INCLUDING SCALING FA CTORS 27
TO ADJUST FOR DIFFER ENT OPERATING HOURS ; 28
(iii) Consider the needs of the owners of covered buildings who: 29
1. Are not responsible for the design, modification, fixtures, 30
or equipment of commercial tenants; 31
2. Do not have access to or control over building energy 32
systems that are used or controlled by commercial tenants; or 33 12 HOUSE BILL 49
3. Own buildings occupied by commercial tenants who are 1
responsible for all maintenance of and repairs to the buildings; 2
(iv) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , EXEMPT 3
FROM ENERGY USE INTE NSITY TARGETS A COVE RED BUILDING THAT CO NTAINS AN 4
AREA DESIGNED , BUILT, AND OPERATED AS A PE RMANENT SENSITIVE 5
COMPARTMENTED INFORM ATION FACILITY AND I S OPERATED BY AN AGENCY OR 6
CONTRACTOR OF : 7
1. THE U.S. GENERAL SERVICES ADMINISTRATION ; 8
2. A. THE U.S. DEPARTMENT OF DEFENSE; 9
B. THE NATIONAL SECURITY AGENCY; 10
C. THE U.S. DEPARTMENT OF HOMELAND SECURITY; 11
OR 12
D. ANY OTHER U.S. INTELLIGENCE AGENCY; OR 13
3. THE STATE; 14
(V) EXEMPT AN OWNER OF A COVERED BUILDING FRO M 15
ENERGY USE INTENSITY REPORTING REQUIREMEN TS IF: 16
1. THE COVERED BUILDING MEETS THE CRITERIA 17
UNDER ITEM (IV) OF THIS PARAGRAPH ; AND 18
2. THE IN CIRCUMSTANCES WHER E TENANT 19
AUTHORIZATION IS REQ UIRED, THE TENANT OR OCCUPANT D OES NOT PROVIDE 20
ENERGY USE INFORMATI ON TO THE OWNER OF T HE COVERED BUILDING DUE TO 21
CONCERNS ABOUT THE C ONFIDENTIALITY OF TH E BUILDING’S SECURE AREA; 22
(VI) Provide maximum flexibility to the owners of covered buildings 23
to comply with building energy performance standards; 24
(v) (VII) Subject to paragraph (3) (4) (3) of this subsection AND 25
SUBSECTION (F) OF THIS SECTION , include an alternative compliance pathway allowing 26
the owner of a covered building to pay a fee for [greenhouse]: 27
1. GREENHOUSE gas emissions attributable to the 28
building’s failure to meet direct greenhouse gas emissions reduction targets; and 29
HOUSE BILL 49 13
2. ENERGY USE ATTRIBUTAB LE TO THE BUILDING ’S 1
FAILURE TO MEET ENER GY USE INTENSITY TARGETS ; 2
(VIII) SUBJECT TO PARAGRAPH (4)(II) OF THIS SUBSECTION A ND 3
SUBSECTION (F) OF THIS SECTION , INCLUDE AN ALTERNATI VE COMPLIANCE 4
PATHWAY ALLOWING THE OWNER OF A COVERED B UILDING TO PAY A FEE OF 5 5
CENTS PER THOUSAND BRITISH THERMAL UNITS OF ENERGY, ADJUSTED FOR 6
INFLATION USING 2020 AS THE BASELINE YEAR FOR CALCULATING THE 7
ADJUSTMENT , FOR ENERGY USE ATTRI BUTABLE TO THE BUILD ING’S FAILURE TO 8
MEET ENERGY USE INTE NSITY TARGETS; 9
(IX) ALLOW THE OWNER OF A COVERED BUILDING TO REQUEST 10
A ONE–TIME WAIVER, FOR THE ENTIRE BUILD ING, FROM PAYING AN ALTER NATIVE 11
COMPLIANCE PATHWAY F EE UNDER ITEMS (VII) AND (VIII) OF THIS PARAGRAPH 12
THROUGH NOT LATER TH AN 2039 FOR ENERGY OR EMISSI ONS ATTRIBUTABLE TO 13
CONTINUED OPERATION OF EQUIPMENT INSTALL ED BEFORE 2025 FOR THE 14
EXPECTED AVERAGE REM AINING LIFESPAN OF T HAT EQUIPMENT , AS IDENTIFIED BY 15
A PUBLICLY AVAILABLE DATABASE SELECTED BY THE DEPARTMENT , BY: 16
1. SUBMITTING TO THE DEPARTMENT , AT LEAST 1 YEAR 17
BEFORE THE REQUESTED WAIVER WOULD TAKE EF FECT: 18
A. AN INVENTORY OF DESCRIP TIONS, SERIAL NUMBERS , 19
AND INSTALLATION DAT ES OF THE EQUIPMENT THAT PROVIDES THE BA SIS OF THE 20
WAIVER APPLICATIONS ; AND 21
B. A PLAN PREPARED BY AN ENERGY AUDITOR THAT 22
COMPLETED THE TRAINI NG REQUIRED UNDER PA RAGRAPH (7) OF THIS SUBSECT ION 23
DETAILING THE DATES THAT SPECIFIC PROJEC TS WILL BE COMPLETED AND THE 24
ENERGY USE INTENSITY AND GREENHOUSE GAS E MISSIONS SAVINGS THA T WILL 25
RESULT FROM THE PROJ ECTS; 26
2. DEMONSTRATING IN THE PLAN PREPARED UNDER 27
ITEM 1B OF THIS ITEM HOW THE BUILDING WILL COME INTO COMPLIA NCE WITH THE 28
FINAL TARGETS BEFORE 2040 WITH MINIMAL RELIANC E ON ALTERNATIVE 29
COMPLIANCE PATHWAY P AYMENTS; 30
3. CERTIFYING THAT THE P ROJECTS WILL BE 31
COMPLETED BY THE DAT ES DETAILED UNDER IT EM 1B OF THIS ITEM, OR THAT THE 32
EXEMPTED ALTER NATIVE COMPLIANCE PA THWAY FEES WILL BE P AID IF THE 33
PROJECTS ARE NOT COM PLETED BY THOSE DATE S; AND 34
4. PAYING A FEE TO COVER THE COST FOR THE 35
DEPARTMENT OR ITS CON TRACTOR TO REVIEW TH E PLAN; 36 14 HOUSE BILL 49
(X) SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION , ALLOW 1
THE OWNER OF A COVERED B UILDING TO REQUEST A WAIVER FROM PAYING 2
ALTERNATIVE COMPLIAN CE PATHWAY FEES FOR ENERGY USE OR GREENH OUSE GAS 3
EMISSIONS ASSOCIATED WITH ENERGY OR EMISS IONS REDUCTION MEASU RES THAT 4
THE DEPARTMENT DETERMINES TO BE IMPRACTICABLE OR ECONOMI CALLY 5
INFEASIBLE BY: 6
1. SUBMITTING TO THE DEPARTMENT , AT LEAST 1 YEAR 7
BEFORE THE REQUESTED WAIVER WOULD TAKE EF FECT, AN ENGINEERING STUDY 8
PREPARED BY AN ENERG Y AUDITOR THAT COMPL ETED THE TRAINING RE QUIRED 9
UNDER PARAGRAPH (7) OF THIS SUBSECTION D ETAILING THE PRACTICABILIT Y OR 10
IMPRACTICABILITY OR ECONOMIC FEASIBILITY OR INFEASIBILITY OF ENERGY OR 11
EMISSIONS REDUCTION MEASURES THAT WOULD BE NEEDED TO ACHIEVE THE 12
ENERGY USE INTENSITY AND DIRECT GREENHOUS E GAS EMISSIONS REDU CTION 13
TARGETS; 14
2. DETAILING THE ENERGY USE INTEN SITY OR DIRECT 15
GREENHOUSE GAS EMISS IONS ABOVE TARGET LE VELS THAT WOULD OCCU R IF THE 16
OWNER OF THE COVERED BUILDING DOES NOT IM PLEMENT THE IMPRACTI CABLE OR 17
ECONOMICALLY INFEASI BLE MEASURES ; AND 18
3. PAYING A FEE TO COVER THE COST FOR T HE 19
DEPARTMENT OR ITS CON TRACTOR TO REVIEW TH E STUDY; 20
(vi) (XI) (VIII) To the extent authorized by law, include financial 21
incentives recommended by the Building Energy Transition Implementation Task Force; 22
AND 23
(VII) (XII) (IX) INCLUDE AN ANNUAL REP ORTING FEE OF $100 24
PER COVERED BUILDING , ADJUSTED FOR INFLATI ON, TO COVER THE 25
ADMINISTRATIVE COSTS UNDER THIS SECTION OF THE PROGRAM . 26
(3) (I) AN OWNER OF A COVERED BUILDING THAT IS EXE MPT FROM 27
ENERGY USE INTENSITY TARGETS UNDER PARAGRAPH (2)(IV) OF THIS SUBSECTION 28
SHALL PROVIDE AN AFF IDAVIT SIGNED BY AN OFFICER OR PRINCIPAL 29
CONTROLLING MEMBER , SHAREHOLDER , OR PARTNER OF THE OW NER OF THE 30
COVERED BUILDING THA T PROVIDES: 31
1. THE ADDRESS OF EACH B UILDING FOR WHICH TH E 32
EXEMPTION A PPLIES; AND 33
HOUSE BILL 49 15
2. A STATEMENT CONFIRMING THAT AS OF THE DATE OF 1
THE AFFIDAVIT THE BU ILDING MEETS THE STA NDARDS SET FORTH IN PARAGRAPH 2
(2)(IV) OF THIS SUBSECTION . 3
(II) INFORMATION SUBMITTED TO THE DEPARTMENT UNDER 4
PARAGRAPH (2)(IV) OF THIS SUBSECTION AND THIS PARAGRAPH I S EXEMPT FROM 5
DISCLOSURE IN ACCORD ANCE WITH § 4–301(A)(2) OF THE GENERAL PROVISIONS 6
ARTICLE. 7
(4) (I) The Department may not set an alternative compliance fee that 8
is less than the social cost of greenhouse gases adopted by the Department or the U.S. 9
Environmental Protection Agency THAT IS IN THE AMOUN T OF $190 PER METRIC TON 10
OF EXCESS CARBON DIO XIDE EQUIVALENT , ADJUSTED FOR INFLATI ON USING 2020 11
AS THE BASELINE YEAR FOR CALCULATING THE ADJUSTMENT . 12
(II) IF A COVERED BUILDING EXERCISES THE ALTERN ATIVE 13
COMPLIANCE FEE OPTIO N FOR BOTH DIRECT GR EENHOUSE GAS EMISSIO NS 14
TARGETS AND ENERGY U SE INTENSITY TARGETS , THE DEPARTMENT SHALL 15
COLLECT ONLY THE HIG HER OF THE TWO FEES . 16
(5) (I) A WAIVER GRANTED UNDER PARAGRAPH (2)(X) OF THIS 17
SUBSECTION: 18
1. SHALL REMAIN IN EFFEC T FOR A PERIOD OF 5 YEARS; 19
AND 20
2. MAY BE RENEWED . 21
(II) IN MAKING A DETERMINA TION ON A WAIVER REQ UEST 22
SUBMITTED UNDER PARA GRAPH (2)(X) OF THIS SUBSECTION , THE DEPARTMENT 23
SHALL: 24
1. IF A COVERED BUILDING EXERCISES THE 25
ALTERNATIVE COMPLIAN CE FEE OPTION FOR BO TH DIRECT GREENHOUSE GAS 26
EMISSIONS TARGETS AN D ENERGY USE INTENSI TY TARGETS, CONSIDER ONLY THE 27
HIGHER OF THE TWO FE ES WHEN CALCULATING AVOIDED COMPLIANCE P ATHWAY 28
PAYMENTS; AND 29
2. CONSIDER THE AVAIL ABILITY OF CAPITAL . 30
(4) (6) THE DEPARTMENT SHALL DEPO SIT AN ALTERNATIVE 31
COMPLIANCE FEE COLLE CTED UNDER THIS SUBS ECTION INTO THE MARYLAND 32
STRATEGIC ENERGY INVESTMENT FUND UNDER § 9–20B–05 OF THE STATE 33
GOVERNMENT ARTICLE. 34 16 HOUSE BILL 49
(7) (I) THE DEPARTMENT SHALL : 1
1. OFFER TRAINING TO HEL P ENERGY AUDITORS TH AT 2
POSSESS, IN GOOD STANDING , A PROFESSIONAL LICEN SE OR CREDENTIAL 3
RECOGNIZED BY THE DEPARTMENT UNDERSTAND THE REGULATIONS ADOP TED 4
UNDER THIS SECTION , INCLUDING REQUIREMEN TS FOR ALTERNATIVE C OMPLIANCE 5
PLANS AND ENGINEERING STUD IES; 6
2. PUBLISH A LIST OF ENE RGY AUDITORS THAT HA VE 7
COMPLETED THE TRAINI NG OFFERED UNDER ITE M 1 OF THIS SUBPARAGRAPH ; AND 8
3. INCLUDE A FEE TO COVE R THE COST FOR THE 9
DEPARTMENT OR ITS CON TRACTOR TO PROVIDE T HE TRAINING. 10
(II) AN OWNER OF A COVERED BUILDING SHALL CONTR ACT 11
WITH AN ENERGY AUDIT OR THAT COMPLETED TH E TRAINING REQUIRED UNDER 12
SUBPARAGRAPH (I) OF THIS PARAGRAPH TO SUBMIT AN ENGINEERIN G PLAN OR 13
STUDY SEEKING A WAIV ER UNDER PARAGRAPHS (2)(IX) AND (X) OF THIS 14
SUBSECTION. 15
(8) (4) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS 16
PARAGRAPH , THE DEPARTMENT MAY SHALL CERTIFY A BUILDING E NERGY 17
PERFORMANCE STANDARD S PROGRAM ADOPTED BY A COUNTY ADMINISTERING A 18
BUILDING ENERGY PERF ORMANCE STANDARDS PR OGRAM ON OR BEFORE MARCH 1, 19
2025, AND WAIVE THE REQUIR EMENT FOR A COVERED BUILDING BUILDINGS IN THE 20
COUNTY TO COMPLY WITH THE S TATEWIDE PROGRAM ADO PTED UNDER THIS 21
SECTION WHEN: 22
1. THE DEPARTMENT DETERMINES , BASED ON A 23
DEMONSTRATION PROVID ED BY THE COUNTY , THAT THE COUNTY HAS ADOPTED A 24
BUILDING ENERGY PERF ORMANCE STANDARDS PR OGRAM THAT IS AT LEA ST AS 25
STRINGENT AS THE STA TEWIDE PROGRAM ADOPT ED UNDER THIS SECTIO N; AND 26
2. THE COUNTY ANNUALLY S UBMITS TO THE 27
DEPARTMENT A COMPLETE LIST OF COVERED BUIL DINGS, INCLUDING THEIR 28
ENERGY USE INT ENSITY, DIRECT GREENHOUSE GA S EMISSIONS, AND COMPLIANCE 29
STATUS WITH THE COUN TY PROGRAM . 30
(II) A COUNTY ADMINISTERING A BUILDING ENERGY 31
PERFORMANCE STANDARD S PROGRAM CERTIFIED BY THE DEPARTMENT UNDER 32
SUBPARAGRAPH (I) OF THIS PARAGRAPH MA Y TAKE APPROPRIATE A CTIONS TO 33
ENFORCE THE STANDARD S, INCLUDING: 34
HOUSE BILL 49 17
1. ESTABLISHING ALTERNAT IVE COMPLIANCE 1
PATHWAYS FOR COMPLYING WI TH ENERGY USE INTENS ITY AND DIRECT 2
GREENHOUSE GAS EMISS IONS REQUIREMENTS ES TABLISHED IN THE STA NDARDS; 3
2. IMPOSING AND COLLECTI NG ALTERNATIVE 4
COMPLIANCE FEES IN UP TO THE SAME AMOUNT AND IN THE SAME MANNER 5
ALLOWED BY THE DEPARTMENT UNDER THIS SECTION ; AND 6
3. IMPOSING AND COLLECTI NG PENALTIES IN UP TO THE 7
SAME AMOUNT AND IN THE SAME MANNER ALLOWED BY TH E DEPARTMENT UNDER 8
§ 2–610 OF THIS TITLE. 9
(9) (5) NOTHING IN THIS SECTI ON SHALL PRECLUDE A COUNTY 10
ADMINISTERING A BUIL DING ENERGY PERFORMANCE S TANDARDS PROGRAM 11
CERTIFIED BY THE DEPARTMENT UNDER PARA GRAPH (4)(I) OF THIS SUBSECTION 12
FROM ADOPTING: 13
(I) ADOPTING BUILDING ENERGY PERF ORMANCE STANDARDS 14
FOR BUILDINGS THAT A RE NOT COVERED BUILD INGS UNDER THE STATE WIDE 15
PROGRAM ADOPTE D UNDER THIS SECTION ; OR 16
(II) MODIFYING AN ADOPTED BUILDING PERFORMANCE 17
STANDARDS PROGRAM . 18
(10) THE DEPARTMENT SHALL MAKE THE NECESSARY APPLIC ATION 19
AND FORMS FOR A WAIV ER UNDER THIS SECTIO N AVAILABLE ON THE 20
DEPARTMENT ’S WEBSITE. 21
(F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 22
DEPARTMENT MAY NOT : 23
(I) IMPOSE AND COLLECT AL TERNATIVE COMPLIANCE FEES 24
UNDER THIS SECTION U NTIL 2032; OR 25
(II) IMPOSE AND COLLECT PE NALTIES FOR FAILURE TO 26
ACHIEVE BUILDING ENE RGY PERFORMANCE STAN DARDS UNDER THI S SECTION 27
UNTIL 2032. 28
(2) THE PROHIBITION UNDER PARAGRAPH (1)(II) OF THIS 29
SUBSECTION DOES NOT APPLY TO THE IMPOSIT ION AND COLLECTION O F PENALTIES 30
FOR FAILURE TO MEET ANY REPORTING REQUIR EMENTS UNDER THIS SE CTION. 31
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 32
as follows: 33 18 HOUSE BILL 49
Article – Economic Development 1
3–201. 2
(a) In this subtitle the following words have the meanings indicated. 3
(d) “Life sciences” includes the fields of biotechnology, pharmaceuticals, 4
biomedical technologies, life systems technologies, food sciences, environmental sciences, 5
and biomedical devices. 6
Article – Environment 7
2–1202. 8
(a) In this subtitle the following words have the meanings indicated. 9
(h) (1) “Manufacturing” means the process of substantially transforming, or a 10
substantial step in the process of substantially transforming, tangible personal property 11
into a new and different article of tangible personal property by the use of labor or 12
machinery. 13
(2) “Manufacturing”, when performed by companies primarily engaged in 14
the activities described in paragraph (1) of this subsection, includes: 15
(i) The operation of saw mills, grain mills, or feed mills; 16
(ii) The operation of machinery and equipment used to extract and 17
process minerals, metals, or earthen materials or by–products that result from the 18
extracting or processing; and 19
(iii) Research and development activities. 20
(3) “Manufacturing” does not include: 21
(i) Activities that are primarily a service; 22
(ii) Activities that are intellectual, artistic, or clerical in nature; 23
(iii) Public utility services, including gas, electric, water, and steam 24
production services; 25
(iv) The production of cement; or 26
(v) Any other activity that would not commonly be considered as 27
manufacturing. 28
HOUSE BILL 49 19
2–1601. 1
(a) In this subtitle the following words have the meanings indicated. 2
(b) (1) “Agricultural building” means a structure that is used primarily to 3
cultivate, manufacture, process, or produce agricultural crops, raw materials, products, or 4
commodities. 5
(2) “Agricultural building” includes a greenhouse. 6
(c) “Building” has the meaning stated in the International Building Code. 7
(d) “Commercial building” means a building that is subject to the commercial 8
provisions of the International Energy Conservation Code. 9
(e) (1) “Covered building” means a building that: 10
(i) 1. Is a commercial or multifamily residential building in the 11
State; or 12
2. Is owned by the State; and 13
(ii) Has a gross floor area of 35,000 square feet or more, excluding 14
the parking garage area. 15
(2) “Covered building” does not include: 16
(i) A building designated as a historic property under federal, State, 17
or local law; 18
(ii) A public or nonpublic elementary or secondary school building; 19
(iii) A HOSPITAL; 20
(IV) A [manufacturing] building IN WHICH 50% OR MORE OF THE 21
BUILDING’S GROSS FLOOR AREA I S USED FOR MANUFACTU RING, AS DEFINED IN § 22
2–1202 OF THIS ARTICLE ; or 23
[(iv)] (V) An agricultural building. 24
(f) “CRITICAL INFRASTRUCTU RE” HAS THE MEANING STAT ED IN § 1–101 OF 25
THE PUBLIC UTILITIES ARTICLE. 26
(G) “Direct greenhouse gas emissions” means greenhouse gas emissions produced 27
on–site by covered buildings. 28
20 HOUSE BILL 49
[(g)] (H) “District energy” means thermal energy generated at one or more 1
central facilities that produce hot water, steam, or chilled water that then flows through a 2
network of insulated underground pipes to provide hot water, space heating, air 3
conditioning, or chilled water to nearby buildings. 4
(I) “ECONOMICALLY INFEASIB LE” MEANS: 5
(1) FOR A COVERED BUILDIN G THAT IS A MULTIFAM ILY RESIDENTIAL 6
BUILDING, THE EXPECTED PAYBACK PERIOD FOR AN ENERGY OR EMISSIONS 7
REDUCTION MEASURE IS MORE THAN 10 YEARS, AS OF THE DATE OF SU BMITTAL OF 8
A WAIVER REQUEST TO THE DEPARTMENT UNDER § 2–1602(C)(2)(X) OF THIS 9
SUBTITLE, ACCOUNTING FOR ALL A VAILABLE INCENTIVES AND AVOIDED 10
ALTERNATIVE COMPLIAN CE PATHWAY PAYMENTS ; AND 11
(2) FOR A COVERED BUILDIN G THAT IS NOT A MULT IFAMILY 12
RESIDENTIAL BUILDING , THE EXPECTED PAYBACK PERIOD FOR AN ENERGY OR 13
EMISSIONS REDUCTION ME ASURE IS MORE THAN 25 YEARS, AS OF THE DATE OF 14
SUBMITTAL OF A WAIVE R REQUEST TO THE DEPARTMENT UNDER § 2–1602(C)(2)(X) 15
OF THIS SUBTITLE , ACCOUNTING FOR ALL A VAILABLE INCENTIVES AND AVOIDED 16
ALTERNATIVE COMPLIAN CE PATHWAY PAYMENTS . 17
(J) “ENERGY OR EMISSIONS R EDUCTION MEASURE ” MEANS A PHYSICAL 18
CHANGE TO A BUILDING OR A CONNECTION TO A DISTRICT ENERGY SYST EM THAT 19
REDUCES THE BUILDING ’S ENERGY USE OR GREE NHOUSE GAS EMISSIONS AT THE 20
LOWEST PRACTICABLE C OST. 21
(K) “IMPRACTICABLE ” INCLUDES THAT AN ENERGY OR EMISSIO NS 22
REDUCTION MEASURE NE CESSARY TO COMPLY WI TH THIS SUBTITLE CAN NOT BE 23
REASONABLY IMPLEMENT ED, INCLUDING DUE TO LAC K OF EXISTING TECHNO LOGY. 24
(L) “LIFE SCIENCES” HAS THE MEANING STAT ED IN § 3–201 OF THE 25
ECONOMIC DEVELOPMENT ARTICLE. 26
(I) “MANUFACTURING BUILDIN G” MEANS A FACILITY IN WHICH 27
MANUFACTURING , AS DEFINED IN § 2–1202 OF THIS ARTICLE, TAKES PLACE. 28
Article – Public Utilities 29
1–101. 30
(a) In this division the following words have the meanings indicated. 31
(h–1) (1) “Critical infrastructure” means assets, systems, and networks, whether 32
physical or virtual, considered by the U.S. Department of Homeland Security to be so vital 33 HOUSE BILL 49 21
to the United States that their incapacitation or destruction would have a debilitating effect 1
on one or more of the following: 2
(i) security; 3
(ii) national economic security; 4
(iii) national public health; or 5
(iv) safety. 6
(2) “Critical infrastructure” includes: 7
(i) a hospital or health care facility; and 8
(ii) a data center as defined in § 11–239 of the Tax – General Article. 9
Article – State Government 10
9–20B–05. 11
(a) There is a Maryland Strategic Energy Investment Fund. 12
(b) The purpose of the Fund is to implement the Strategic Energy Investment 13
Program. 14
(e) The Fund consists of: 15
(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 16
Environment Article; 17
(2) money appropriated in the State budget to the Program; 18
(3) repayments and prepayments of principal and interest on loans made 19
from the Fund; 20
(4) interest and investment earnings on the Fund; 21
(5) compliance fees paid under § 7–705 of the Public Utilities Article; 22
(6) money received from any public or private source for the benefit of the 23
Fund; 24
(7) money transferred from the Public Service Commission under § 25
7–207.2(c)(3) of the Public Utilities Article; [and] 26
(8) money distributed under § 2–614.1 of the Tax – General Article; AND 27 22 HOUSE BILL 49
(9) ALTERNATIVE COMPLIAN CE FEES PAID PATHWAY PAYMENTS 1
UNDER § 2–1602(C)(2)(V) 2–1602(C)(2)(VII) OF THE ENVIRONMENT ARTICLE. 2
(G–2) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 3
PROCEEDS RECEIVED BY THE FUND FROM ALTERNATIVE COMPLIANCE PATHWAY 4
PAYMENTS UNDER § 2–1602 OF THE ENVIRONMENT ARTICLE SHALL BE USED TO 5
PROVIDE GRANTS AND L OANS TO HELP OWNERS OF COVERED BUILDINGS COMPLY 6
WITH REGULATIONS ADO PTED UNDER § 2–1602 OF THE ENVIRONMENT ARTICLE. 7
(2) UP TO 10% OF ALTERNATIVE COMPL IANCE PATHWAY PAYMEN TS 8
UNDER § 2–1602 OF THE ENVIRONMENT ARTICLE MA Y BE USED FOR 9
ADMINISTRATION OF TH E GRANTS AND LOANS D ESCRIBED UNDER PARAG RAPH (1) 10
OF THIS SUBSECTION . 11
SECTION 4. AND BE IT FURTHER ENACTED, That: 12
(a) The Department of the Environment shall conduct an analysis of the potential 13
costs and benefits of building energy performance standards policy options featuring direct 14
emissions reduction requirements, energy use intensity requirements, and a combination of 15
both requirements that describes, for each scenario: 16
(1) program design considerations; 17
(2) greenhouse gas emissions reduction potential; 18
(3) direct emissions reduction potential; 19
(4) overall energy savings potential; 20
(5) peak energy savings potential; 21
(6) implementation costs to building owners and the Department; 22
(7) lifecycle costs of the building and equipment and cost–effectiveness for 23
building owners; and 24
(8) program implementation cost and complexity. 25
(b) In conducting the analysis required under subsection (a) of this section, the 26
Department shall: 27
(1) identify policy considerations and recommendations, including 28
potential scenarios, including: 29
HOUSE BILL 49 23
(i) a recommendation for calculating an alternative compliance fee 1
for energy use intensity on covered building owners based on a simple payback period that 2
takes into account any financial incentives offered to the building owners; 3
(ii) recommendations on how to address covered buildings that, 4
despite all available incentives including the avoidance of penalties and fees, would not 5
achieve compliance greenhouse gas emissions reductions and targets; and 6
(iii) recommendations on how to consider county–owned buildings, 7
community colleges, emergency facilities, manufacturing buildings, and residential 8
buildings, including considerations of tenants and condominium unit owners; and 9
(2) calculate building benchmarks based on benchmarking data reported to 10
the Department in accordance with § 2–1602(b) of the Environment Article. 11
(c) On or before December 31, 2026, the Department shall submit the analysis and 12
recommendations required under this section to the Governor and, in accordance with § 13
2–1257 of the State Government Article, the General Assembly. 14
SECTION 4. 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall 15
take effect on the taking effect of the termination provision specified in Section 17 of 16
Chapter 38 of the Acts of the General Assembly of 2022. If that termination provision takes 17
effect, Section 1 of this Act, with no further action required by the General Assembly, shall 18
be abrogated and of no further force and effect. This Act may not be interpreted to have any 19
effect on that termination provision. 20
SECTION 5. 6. AND BE IT FURTHER ENACTED, That, subject to the provisions 21
of Section 4 5 of this Act, this Act shall take effect October 1, 2025. 22
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.