EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0973* HOUSE BILL 973 E4 5lr1534 CF SB 804 By: Delegates Boafo, Charkoudian , Addison, Allen, Davis, Embry, Fair, Foley, Guyton, Harris, Holmes, Kaufman, Lehman, R. Lewis, Ruth, Smith, Solomon, Stein, Stewart, Terrasa, Vogel, and Young Introduced and read first time: January 31, 2025 Assigned to: Environment and Transportation A BILL ENTITLED AN ACT concerning 1 Maryland Building Performance Standards – Fossil Fuel Use, Energy 2 Conservation, and Electric– and Solar–Ready Standards 3 (Better Buildings Act of 2025) 4 FOR the purpose of requiring the Maryland Department of Labor, on or before certain dates 5 and as part of the Maryland Building Performance Standards, to adopt a 6 requirement that new buildings and significant improvements meet all laundry, 7 water, and space heating demands of the building without the use of fossil fuels, 8 energy conservation requirements, and an electric– and solar–ready standard for 9 certain buildings; and generally relating to the Maryland Building Performance 10 Standards. 11 BY repealing and reenacting, with amendments, 12 Article – Public Safety 13 Section 12–503 14 Annotated Code of Maryland 15 (2022 Replacement Volume and 2024 Supplement) 16 BY adding to 17 Article – Public Safety 18 Section 12–503.1 19 Annotated Code of Maryland 20 (2022 Replacement Volume and 2024 Supplement) 21 SECTION 1. BE IT ENACTED BY THE GENERAL A SSEMBLY OF MARYLAND, 22 That the Laws of Maryland read as follows: 23 Article – Public Safety 24 2 HOUSE BILL 973 12–503. 1 (a) (1) The Department shall adopt by regulation, as the Maryland Building 2 Performance Standards, the International Building Code, including the International 3 Energy Conservation Code, with the modifications incorporated by the Department under 4 subsection (b) of this section. 5 (2) The Department shall adopt each subsequent version of the Standards 6 within 18 months after it is issued. 7 (b) (1) Before adopting each version of the Standards, the Department shall: 8 (i) review the International Building Code to determine whether 9 modifications should be incorporated in the Standards; 10 (ii) consider changes to the International Building Code to enhance 11 energy conservation and efficiency; 12 (iii) subject to the provisions of paragraph (2)(ii) of this subsection, 13 adopt modifications to the Standards that allow any innovative approach, design, 14 equipment, or method of construction that can be demonstrated to offer performance that 15 is at least the equivalent to the requirements of: 16 1. the International Energy Conservation Code; 17 2. Chapter 13, “Energy Efficiency”, of the International 18 Building Code; or 19 3. Chapter 11, “Energy Efficiency”, of the International 20 Residential Code; 21 (iv) accept written comments; 22 (v) consider any comments received; and 23 (vi) hold a public hearing on each proposed modification. 24 (2) (i) Except as provided in subparagraph (ii) of this paragraph and [§ 25 12–510] §§ 12–503.1 AND 12–510 of this subtitle, the Department may not adopt, as part 26 of the Standards, a modification of a building code requirement that is more stringent than 27 the requirement in the International Building Code. 28 (ii) The Department may adopt energy conservation requirements 29 that are more stringent than the requirements in the International Energy Conservation 30 Code, but may not adopt energy conservation requirements that are less stringent than the 31 requirements in the International Energy Conservation Code. 32 HOUSE BILL 973 3 (c) The Standards apply to each building or structure in the State for which a 1 building permit application is received by a local jurisdiction on or after August 1, 1995. 2 (d) In addition to the Standards, the Department shall: 3 (1) on or before January 1, 2023, adopt by regulation the 2018 4 International Green Construction Code; and 5 (2) adopt each subsequent version of the Code within 18 months after it is 6 issued. 7 12–503.1. 8 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 9 INDICATED. 10 (2) “ELECTRIC–READY” MEANS THE MORE STRIN GENT OF: 11 (I) ELECTRIC–READY REQUIREMENTS I N THE INTERNATIONAL 12 ENERGY CONSERVATION CODE, INCLUDING RELEVANT A PPENDICES; OR 13 (II) HAVING ADEQUATE PANE L CAPACITY , DEDICATED 14 ELECTRIC PANEL SPACE, ELECTRICAL WIRE , ELECTRICAL RECEPTACL ES, AND 15 ADEQUATE PHYSICAL SP ACE TO ACCOMMODATE F UTURE INSTALLATION O F 16 HIGH–EFFICIENCY ELECTRIC APPLIANCES, INCLUDING HEATING , LAUNDRY, WATER 17 HEATING, COOKING, AND DRYING. 18 (3) “ENERGY EFFICIENCY ” MEANS PERCENT AGE ENERGY USE 19 REDUCTION WITH REFER ENCE TO THE 2006 INTERNATIONAL ENERGY 20 CONSERVATION CODE, AS CALCULATED FOR MARYLAND CLIMATE ZONE S AND 21 PUBLISHED BY THE U.S. DEPARTMENT OF ENERGY BUILDING ENERGY CODES 22 PROGRAM AS OF OCTOBER 1, 2025, EXCLUSIVE OF: 23 (I) RENEWABLE ENERGY PROD UCED AND ELECTRIC VE HICLE 24 CHARGING PROVIDED AT THE BUILDING’S PREMISES; 25 (II) UNCONDITIONED FLOOR AREA; AND 26 (III) PARKING. 27 (4) “FUEL TYPE” MEANS THE COMBINATIO N OF ENERGY SOURCES 28 PLANNED FOR A USE IN A BUILDING, INCLUDING ELE CTRICITY AND MIXED F UEL. 29 (5) (I) “SIGNIFICANT IMPROVEME NT” MEANS ANY REPAIR , 30 4 HOUSE BILL 973 RECONSTRUCTION , REHABILITATION , ALTERATION, ADDITION, OR OTHER 1 IMPROVEMENT OF A BUI LDING OR STRUCTURE , THE COST OF WHICH EQ UALS OR 2 EXCEEDS 50% OF THE REPLACEMENT C OST OF THE ST RUCTURE BEFORE THE 3 IMPROVEMENT OR REPAI R IS STARTED. 4 (II) “SIGNIFICANT IMPROVEME NT” DOES NOT INCLUDE THE 5 IMPROVEMENT OF A BUI LDING: 6 1. REQUIRED TO CORRECT EXISTING HEALTH , 7 SANITARY, OR SAFETY CODE VIOLA TIONS IDENTIFIED BY A BUILDING OFFICIAL OR 8 THAT ARE THE MINIMUM NECESSARY TO ENSURE SAFE LIVING CONDITIO NS; OR 9 2. BY ALTERATION OF A H ISTORIC STRUCTURE 10 PROVIDED THAT THE AL TERATION WI LL NOT PRECLUDE THE STRUCTURE’S 11 CONTINUED DESIGNATIO N AS A HISTORIC STRU CTURE. 12 (6) “SOLAR–READY” MEANS THE MORE STRIN GENT OF: 13 (I) SOLAR–READY REQUIREMENTS I N THE INTERNATIONAL 14 BUILDING CODE OR INTERNATIONAL ENERGY CONSERVATION CODE, INCLUDING 15 RELEVANT APPENDICES ; AND 16 (II) DESIGN, ENGINEERING , AND CONSTRUCTION SO THAT AT 17 LEAST 40% OF THE ROOF AREA IS : 18 1. FREE FROM OBSTRUCTIO NS; AND 19 2. CAPABLE OF ACCEPTING THE INSTALLATION OF 20 SOLAR PANELS . 21 (B) (1) ON OR BEFORE OCTOBER 1, 2025, AS PART OF THE STANDARDS, 22 THE DEPARTMENT SHALL ADOP T: 23 (I) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A 24 REQUIREMENT THAT NEW BUILDINGS AND SIGNIF ICANT IMPROVEMENTS M EET ALL 25 LAUNDRY, WATER, AND SPACE HEATING DE MANDS OF THE BUILDIN G WITHOUT THE 26 USE OF FOSSIL FUE LS; 27 (II) AN ELECTRIC–READY STANDARD FOR N EW BUILDINGS AND 28 SIGNIFICANT IMPROVEM ENTS THAT RECEIVE A WAIVER UNDER PARAGRA PH (2) OF 29 THIS SUBSECTION ; AND 30 (III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A 31 HOUSE BILL 973 5 REQUIREMENT THAT NEW BUILDINGS OR SIGNIFI CANT IMPROVEMENTS BE 1 SOLAR–READY IF THE BUILDIN G: 2 1. WILL HAVE 20,000 SQUARE FEET OR MORE OF 3 CONTINUOUS ROOF SPAC E, EXCLUDING THE PARKIN G AREA; AND 4 2. WILL BE 20 STORIES OR LESS IN H EIGHT ABOVE 5 GRADE PLANE . 6 (2) (I) SUBJECT TO SUBPARAGRA PHS (II) AND (III) OF THIS 7 PARAGRAPH , A LOCAL JURISDICTION MAY GRANT A WAIVER F ROM THE 8 REQUIREMENT UNDER PA RAGRAPH (1)(I) OF THIS SUBSECTION F OR: 9 1. EMERGENCY BACK –UP POWER SYSTEMS FOR NEW 10 BUILDINGS AND SIGNIF ICANT IMPROVEMENTS ; AND 11 2. NEW BUILDINGS , SIGNIFICANT IMPROVEMENTS , AND 12 ADDITIONS SPECIFICAL LY DESIGNATED FOR OC CUPANCY BY A COMMERC IAL FOOD 13 ESTABLISHMENT , LABORATORY , LAUNDROMAT , HOSPITAL, OR CREMATORIUM . 14 (II) 1. A WAIVER GRANTED UNDER SUBPARAGRAPH (I) OF 15 THIS PARAGRAPH SHALL BE LIMITED TO BUILDI NG SYSTEMS AND AREAS THAT 16 CANNOT FEASIBLY USE ENERGY GENERATED FRO M A SOURCE OTHER THA N FOSSIL 17 FUELS. 18 2. FINANCIAL CONSIDERATI ONS ARE NOT A SUFFIC IENT 19 BASIS FOR DETERMININ G FEASIBILITY UNDER SUBSUBPARAGRAPH 1 OF THIS 20 SUBPARAGRAPH . 21 (III) A BUILDING OR SIGNIFICANT IMPRO VEMENT THAT IS 22 GRANTED A WAIVER UND ER SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL: 23 1. SEEK TO MINIMIZE EMI SSIONS FROM ITS FOSS IL FUEL 24 USE; 25 2. MAXIMIZE HEALTH , SAFETY, AND FIRE PROTECTION ; 26 AND 27 3. BE REQUIRED TO COMPL Y WITH T HE 28 ELECTRIC–READY STANDARDS ADOP TED UNDER PARAGRAPH (1)(II) OF THIS 29 SUBSECTION. 30 (IV) TO ENSURE A WAIVER GR ANTED UNDER SUBPARAG RAPH (I) 31 6 HOUSE BILL 973 OF THIS PARAGRAPH IS STILL NECESSARY , THE WAIVER SHALL BE REVIEWED: 1 1. EACH TIME THE STANDARDS ARE MODIFIE D BY THE 2 DEPARTMENT ; AND 3 2. BY THE LOCAL JURISDI CTION THAT GRANTED T HE 4 WAIVER EACH TIME THE LOCAL JURISDICTION M ODIFIES ITS LOCAL AM ENDMENTS 5 UNDER § 12–504 OF THIS SUBTITLE. 6 (3) REGULATIONS ADOPTED U NDER THIS SUBSECTION MAY 7 AUTHORIZE A LOCAL JURISDICTION TO WAIV E THE SOLAR–READY REQUIREMENTS 8 FOR A BUILDING ON A SPECIFIC FINDING THA T: 9 (I) INCIDENT SOLAR RADIA TION AT THE BUILDING SITE IS LESS 10 THAN 75% OF INCIDENT SOLAR RA DIATION AT AN OPEN S ITE; OR 11 (II) SHADOW STUDIES INDIC ATE THAT 25% OF A BUILDING ’S 12 ROOF AREA WILL BE IN SHADOW. 13 (4) NOTHING IN THIS SUBSE CTION MAY BE CONSTRU ED TO PROHIBIT 14 A LOCAL JURISDICTION FROM PROHIBITING THE USE OF FOSSIL FUELS IN 15 BUILDINGS OR SIGNIFI CANT IMPROVEMENTS OR ADOPTING ENERGY 16 CONSERVATION AND SOL AR ENE RGY REQUIREMENTS FOR BUILDINGS OR 17 SIGNIFICANT IMPROVEM ENTS THAT ARE MORE S TRINGENT THAN THE 18 REQUIREMENTS ESTABLI SHED BY THE DEPARTMENT UNDER THIS SECTION. 19 (C) (1) IN THIS SUBSECTION , “COVERED BUILDING ” MEANS A 20 COMMERCIAL OR RESIDE NTIAL BUILDING WITH A GROSS FLOOR AREA OF LESS THAN 21 35,000 SQUARE FEET OR MORE , EXCLUDING THE PARKIN G GARAGE AREA . 22 (2) THIS SUBSECTION APPLI ES ONLY TO NEW CONST RUCTION. 23 (3) (I) THE DEPARTMENT SHALL ADOP T, AS PART OF THE 24 STANDARDS, REGULATIONS ESTABLIS HING ENERGY CONSERVA TION 25 REQUIREMENTS FOR COV ERED BUILDINGS IN AC CORDANCE WITH THIS 26 SUBSECTION. 27 (II) IN DEVELOPING THE REG ULATIONS, THE DEPARTMENT : 28 1. A. SUBJECT TO ITEM B OF THIS ITEM , SHALL 29 ESTIMATE ENERGY EFFI CIENCY OUTCOMES OF T HE STANDARDS ACCORDING T O 30 PUBLICATIONS AND METHODS FROM THE U.S. DEPARTMENT OF ENERGY OR ITS 31 CONTRACTORS ; AND 32 HOUSE BILL 973 7 B. MAY SEEK ADVICE FROM THE U.S. DEPARTMENT OF 1 ENERGY, ITS CONTRACTORS , OR SIMILARLY QUALIFI ED PARTIES TO MAKE T HESE 2 ESTIMATES; AND 3 2. SUBJECT TO PARAGRAPH (4) OF THIS SUBSEC TION, 4 FOR THE PURPOSES OF THE STANDARDS AUTHORIZING COMPLIANCE VIA THE 5 ATTAINMENT OF ENERGY EFFICIENCY CREDITS O R ACHIEVEMENT OF 6 PERFORMANCE THRESHOL DS, SHALL CALCULATE AND ADOPT CREDITS AND 7 PERFORMANCE THRESHOL DS IN A MANNER THAT COMPARES SITE ENERGY USE 8 INTENSITY CHANGES FR OM ENERGY EFFICIENCY MEASURES TO A 9 MARYLAND–SPECIFIC BASELINE MO DEL THAT DOES NOT VA RY ACCORDING TO FUEL 10 TYPE OF THE PROPOSED BUILDING FOR RELEVAN T BUILDING TYPES . 11 (4) CREDITS OR PERFORMANC E THRESHOLDS MAY NOT BE 12 CALCULATED IN A MAN NER THAT AUTHORIZES BUILDINGS OF A CERTA IN FUEL TYPE 13 TO COMPLY WITH THE STANDARDS WHILE ACHIE VING A LOWER ENERGY 14 EFFICIENCY ON AVERAG E THAN BUILDINGS OF A DIFFERENT FUEL TYP E. 15 (5) SUBJECT TO PARAGRAPH (7) OF THIS SUBSECTION , THE 16 REGULATIONS SHALL RE QUIRE NEW RESIDENTIAL BU ILDINGS LESS THAN FO UR 17 STORIES ABOVE GRADE PLANE TO ACHIEVE , ON AVERAGE , ENERGY EFFICIENCY 18 EQUAL TO OR GREATER THAN: 19 (I) 35% FOR BUILDING PERMIT APPLICATIONS RECEIVE D 20 FROM MARCH 1, 2027, THROUGH FEBRUARY 28, 2030, BOTH INCLUSIVE ; 21 (II) 50% FOR BUILDING PERMIT APPLICATIONS RECEIVE D 22 FROM MARCH 1, 2030, THROUGH FEBRUARY 28, 2033, BOTH INCLUSIVE ; AND 23 (III) 65% FOR BUILDING PERMIT APPLICATIONS RECEIVE D ON 24 OR AFTER MARCH 1, 2033. 25 (6) SUBJECT TO PARAGRAPH (7) OF THIS SUBSECTION AND EXCEPT 26 AS PROVIDED IN PARAG RAPH (5) OF THIS SUBSECTION , THE REGULATIONS SHAL L 27 REQUIRE ALL BUILDING S, REGARDLESS OF FUEL T YPE, TO ACHIEVE ON AVERAG E 28 ENERGY EFFICIENCY EQ UAL TO OR GREATER TH AN: 29 (I) 45% FOR BUILDING PERMIT APPLICATIONS RECEIVE D 30 FROM MARCH 1, 2027, THROUGH FEBRUARY 28, 2030, BOTH INCLUSIVE ; 31 (II) 55% FOR BUILDING PERMIT APPLICATIONS RECEIVE D 32 FROM MARCH 1, 2030, THROUGH FEBRUARY 28, 2033, BOTH INCLUSIVE ; AND 33 8 HOUSE BILL 973 (III) 65% FOR BUILDING PERMIT APPLICATIONS RECEIVE D ON 1 OR AFTER MARCH 1, 2033. 2 (7) (I) A LOCAL JURISDICTION M AY ADOPT ENERGY 3 CONSERVATION REQUIRE MENTS FOR BUILDINGS THAT ARE MORE STRING ENT THAN 4 THE REQUIREMENTS EST ABLISHED BY THE DEPARTMENT UNDER THIS SECTION. 5 (II) IF THE LOCAL JURISDIC TION WHERE A COVERED BUILDING 6 WILL BE LOCATED HAS ADOPT ED ENERGY CONSERVATI ON REQUIREMENTS MORE 7 STRINGENT THAN THE R EQUIREMENTS ESTABLIS HED UNDER THIS SUBSE CTION, 8 THE BUILDING SHALL B E REQUIRED TO MEET T HE MORE STRINGENT 9 REQUIREMENTS . 10 (8) IF THE VERSION OF THE STANDARDS IN EFFECT A T THE TIME A 11 BUILDING PERMIT APPL ICATION IS RECEIVED REQUIRES THE BUILDIN G TO MEET 12 ENERGY CONSERVATION REQUIREMENTS THAT AR E MORE STRINGENT THA N THE 13 REQUIREMENTS ESTABLI SHED UNDER THIS SUBS ECTION, THE BUILDING SHALL B E 14 REQUIRED TO MEET THE MORE STRINGENT REQUI REMENTS. 15 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16 October 1, 2025. 17