EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0256*
SENATE BILL 256
M3 5lr0289
(PRE–FILED) CF HB 49
By: Chair, Education, Energy, and the Environment Committee (By Request –
Departmental – Environment)
Requested: October 9, 2024
Introduced and read first time: January 8, 2025
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Environment – Building Energy Performance Standards – Compliance and 2
Reporting 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. 10
BY repealing and reacting, with amendments, 11
Article – Environment 12
Section 2–1602(c) 13
Annotated Code of Maryland 14
(2013 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Environment 17
Section 2–1602(c) 18
Annotated Code of Maryland 19
(2013 Replacement Volume and 2024 Supplement) 20
(As enacted by Chapter 38 of the Acts of the General Assembly of 2022) 21
BY repealing and reenacting, without amendments, 22
Article – State Government 23
Section 9–20B–05(a) and (b) 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2024 Supplement) 26 2 SENATE BILL 256
BY repealing and reenacting, with amendments, 1
Article – State Government 2
Section 9–20B–05(e) 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2024 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Environment 8
2–1602. 9
(c) (1) On or before June 1, 2023, the Department shall adopt regulations to 10
implement this section. 11
(2) Regulations adopted under this section shall: 12
(i) Subject to items (ii) and (iii) of this paragraph, include energy 13
use intensity targets by building type; 14
(ii) As necessary, include special provisions or exceptions to account 15
for: 16
1. Building age; 17
2. Regional differences; 18
3. The unique needs of particular building or occupancy 19
types, including health care facilities, laboratories, assisted living and nursing facilities, 20
military buildings, critical infrastructure, and buildings used in life sciences as defined in 21
§ 3–201 of the Economic Development Article; and 22
4. The use of district energy systems and biofuels by covered 23
buildings; 24
(iii) Consider the needs of the owners of covered buildings who: 25
1. Are not responsible for the design, modification, fixtures, 26
or equipment of commercial tenants; 27
2. Do not have access to or control over building energy 28
systems that are used or controlled by commercial tenants; or 29
3. Own buildings occupied by commercial tenants who are 30
responsible for all maintenance of and repairs to the buildings; 31 SENATE BILL 256 3
(iv) Provide maximum flexibility to the owners of covered buildings 1
to comply with building energy performance standards; 2
(v) Subject to paragraph (3) of this subsection, include an alternative 3
compliance pathway allowing the owner of a covered building to pay a fee for [greenhouse]: 4
1. GREENHOUSE gas emissions attributable to the 5
building’s failure to meet direct greenhouse gas emissions reduction targets; and 6
2. ENERGY USE ATTRIBUTAB LE TO THE BUILDING ’S 7
FAILURE TO MEET ENER GY USE INTENSITY TAR GETS; 8
(vi) To the extent authorized by law, include financial incentives 9
recommended by the Building Energy Transition Implementation Task Force; AND 10
(VII) INCLUDE AN ANNUAL REP ORTING FEE TO COVER THE 11
ADMINISTRATIVE COSTS UNDER THIS SECTION . 12
(3) The Department may not set an alternative compliance fee that is less 13
than the social cost of greenhouse gases adopted by the Department or the U.S. 14
Environmental Protection Agency. 15
(4) THE DEPARTMENT SHALL DEPO SIT AN ALTERNATIVE 16
COMPLIANCE FEE COLLECTED UNDER THIS SUBSECTIO N INTO THE MARYLAND 17
STRATEGIC ENERGY INVESTMENT FUND UNDER § 9–20B–05 OF THE STATE 18
GOVERNMENT ARTICLE. 19
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 20
as follows: 21
Article – Environment 22
2–1602. 23
(c) (1) On or before June 1, 2023, the Department shall adopt regulations to 24
implement this section. 25
(2) Regulations adopted under this section shall: 26
(i) Subject to items (ii) and (iii) of this paragraph, include energy 27
use intensity targets by building type; 28
(ii) As necessary, include special provisions or exceptions to account 29
for: 30
4 SENATE BILL 256
1. Building age; 1
2. Regional differences; 2
3. The unique needs of particular building or occupancy 3
types, including health care facilities, laboratories, assisted living and nursing facilities, 4
military buildings, critical infrastructure, and buildings used in life sciences as defined in 5
§ 3–201 of the Economic Development Article; and 6
4. The use of district energy systems and biofuels by covered 7
buildings; 8
(iii) Consider the needs of the owners of covered buildings who: 9
1. Are not responsible for the design, modification, fixtures, 10
or equipment of commercial tenants; 11
2. Do not have access to or control over building energy 12
systems that are used or controlled by commercial tenants; or 13
3. Own buildings occupied by commercial tenants who are 14
responsible for all maintenance of and repairs to the buildings; 15
(iv) Provide maximum flexibility to the owners of covered buildings 16
to comply with building energy performance standards; 17
(v) Subject to paragraph (3) of this subsection, include an alternative 18
compliance pathway allowing 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 TARGETS ; 23
(vi) To the extent authorized by law, include financial incentives 24
recommended by the Building Energy Transition Implementation Task Force; AND 25
(VII) INCLUDE AN ANNUAL REP ORTING FEE TO COVER THE 26
ADMINISTRATIVE COSTS UNDER THIS SECTION. 27
(3) The Department may not set an alternative compliance fee that is less 28
than the social cost of greenhouse gases adopted by the Department or the U.S. 29
Environmental Protection Agency. 30
SENATE BILL 256 5
(4) THE DEPARTMENT SHALL DEPO SIT AN ALTERNATIVE 1
COMPLIAN CE FEE COLLECTED UNDER THIS SUBSECTIO N INTO THE MARYLAND 2
STRATEGIC ENERGY INVESTMENT FUND UNDER § 9–20B–05 OF THE STATE 3
GOVERNMENT ARTICLE. 4
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 5
as follows: 6
Article – State Government 7
9–20B–05. 8
(a) There is a Maryland Strategic Energy Investment Fund. 9
(b) The purpose of the Fund is to implement the Strategic Energy Investment 10
Program. 11
(e) The Fund consists of: 12
(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 13
Environment Article; 14
(2) money appropriated in the State budget to the Program; 15
(3) repayments and prepayments of principal and interest on loans made 16
from the Fund; 17
(4) interest and investment earnings on the Fund; 18
(5) compliance fees paid under § 7–705 of the Public Utilities Article; 19
(6) money received from any public or private source for the benefit of the 20
Fund; 21
(7) money transferred from the Public Service Commission under § 22
7–207.2(c)(3) of the Public Utilities Article; [and] 23
(8) money distributed under § 2–614.1 of the Tax – General Article; AND 24
(9) ALTERNATIVE COMPLIAN CE FEES PAID UNDER § 2–1602(C)(2)(V) 25
OF THE ENVIRONMENT ARTICLE. 26
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 27
effect on the taking effect of the termination provision specified in Section 17 of Chapter 38 28
of the Acts of the General Assembly of 2022. If that termination provision takes effect, 29
Section 1 of this Act, with no further action required by the General Assembly, shall be 30 6 SENATE BILL 256
abrogated and of no further force and effect. This Act may not be interpreted to have any 1
effect on that termination provision. 2
SECTION 5. AND BE IT FURTHER ENACTED, That , subject to the provisions of 3
Section 4 of this Act, this Act shall take effect October 1, 2025. 4