EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0778*
SENATE BILL 778
M3, M4 5lr3008
By: Senator Gallion
Introduced and read first time: January 27, 2025
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Environment – Building Energy Performance Standards – Agricultural 2
Buildings 3
FOR the purpose of prohibiting the Department of the Environment from requiring an 4
owner, lessor, lessee, or operator of an agricultural building to apply to the 5
Department for an exemption from certain building energy performance standards; 6
and generally relating to building energy performance standards and agricultural 7
buildings. 8
BY repealing and reenacting, without amendments, 9
Article – Environment 10
Section 2–1601(a), (b), and (e) 11
Annotated Code of Maryland 12
(2013 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Environment 15
Section 2–1602 16
Annotated Code of Maryland 17
(2013 Replacement Volume and 2024 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Environment 21
2–1601. 22
(a) In this subtitle the following words have the meanings indicated. 23
2 SENATE BILL 778
(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
(e) (1) “Covered building” means a building that: 5
(i) 1. Is a commercial or multifamily residential building in the 6
State; or 7
2. Is owned by the State; and 8
(ii) Has a gross floor area of 35,000 square feet or more, excluding 9
the parking garage area. 10
(2) “Covered building” does not include: 11
(i) A building designated as a historic property under federal, State, 12
or local law; 13
(ii) A public or nonpublic elementary or secondary school building; 14
(iii) A manufacturing building; or 15
(iv) An agricultural building. 16
2–1602. 17
(a) The Department shall develop building energy performance standards for 18
covered buildings that achieve: 19
(1) A 20% reduction in net direct greenhouse gas emissions on or before 20
January 1, 2030, as compared with 2025 levels for average buildings of similar construction; 21
and 22
(2) Net–zero direct greenhouse gas emissions on or before January 1, 2040. 23
(b) To facilitate the development of building energy performance standards under 24
this section, the Department shall require the owners of covered buildings to measure and 25
report direct emissions data to the Department annually beginning in 2025. 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
SENATE BILL 778 3
(i) Subject to items (ii) and (iii) of this paragraph, include energy 1
use intensity targets by building type; 2
(ii) As necessary, include special provisions or exceptions to account 3
for: 4
1. Building age; 5
2. Regional differences; 6
3. The unique needs of particular building or occupancy 7
types, including health care facilities, laboratories, assisted living and nursing facilities, 8
military buildings, critical infrastructure, and buildings used in life sciences as defined in 9
§ 3–201 of the Economic Development Article; and 10
4. The use of district energy systems and biofuels by covered 11
buildings; 12
(iii) Consider the needs of the owners of covered buildings who: 13
1. Are not responsible for the design, modification, fixtures, 14
or equipment of commercial tenants; 15
2. Do not have access to or control over building energy 16
systems that are used or controlled by commercial tenants; or 17
3. Own buildings occupied by commercial tenants who are 18
responsible for all maintenance of and repairs to the buildings; 19
(iv) Provide maximum flexibility to the owners of covered buildings 20
to comply with building energy performance standards; 21
(v) Subject to paragraph (3) of this subsection, include an alternative 22
compliance pathway allowing the owner of a covered building to pay a fee for greenhouse 23
gas emissions attributable to the building’s failure to meet direct greenhouse gas emissions 24
reduction targets; and 25
(vi) To the extent authorized by law, include financial incentives 26
recommended by the Building Energy Transition Implementation Task Force. 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
(4) THE DEPARTMENT MAY NOT REQUIRE AN OWNER , A LESSOR, A 31
LESSEE, OR AN OPERATOR OF AN AGRICULTURAL B UILDING TO APPLY TO THE 32
DEPARTMENT FOR AN EXE MPTION FROM THE REQU IREMENTS OF THIS SEC TION, 33 4 SENATE BILL 778
INCLUDING BY REQUIRI NG THE SUBMITTAL OF ANY DOCUMENTATION TO THE 1
DEPARTMENT AS PROOF OF ELIGIBIL ITY FOR AN EXEMPTION . 2
(d) Electric companies and gas companies shall provide energy data, including 3
whole–building and aggregate data, to the owners of covered buildings for benchmarking 4
purposes. 5
(e) In calculating the statewide standards developed by the Department under 6
this section, an owner of a covered building may not consider greenhouse gas emissions or 7
energy use by a commercial tenant of the covered building that: 8
(1) Is a food service facility as defined in COMAR 10.15.03.02; and 9
(2) Engages in commercial cooking and water heating. 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 11
1, 2025. 12