EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W. [Brackets] indicate matter deleted from existing law. *sb0804* SENATE BILL 804 E4 5lr1533 CF HB 973 By: Senators Brooks, Benson, and Lewis Young Introduced and read first time: January 28, 2025 Assigned to: Education, Energy, and the Environment 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 ASSEMBLY OF MARYLAND, 22 That the Laws of Maryland read as follows: 23 Article – Public Safety 24 12–503. 25 2 SENATE BILL 804 (a) (1) The Department shall adopt by regulation, as the Maryland Building 1 Performance Standards, the International Building Code, including the International 2 Energy Conservation Code, with the modifications incorporated by the Department under 3 subsection (b) of this section. 4 (2) The Department shall adopt each subsequent version of the Standards 5 within 18 months after it is issued. 6 (b) (1) Before adopting each version of the Standards, the Department shall: 7 (i) review the International Building Code to determine whether 8 modifications should be incorporated in the Standards; 9 (ii) consider changes to the International Building Code to enhance 10 energy conservation and efficiency; 11 (iii) subject to the provisions of paragraph (2)(ii) of this subsection, 12 adopt modifications to the Standards that allow any innovative approach, design, 13 equipment, or method of construction that can be demonstrated to offer performance that 14 is at least the equivalent to the requirements of: 15 1. the International Energy Conservation Code; 16 2. Chapter 13, “Energy Efficiency”, of the International 17 Building Code; or 18 3. Chapter 11, “Energy Efficiency”, of the International 19 Residential Code; 20 (iv) accept written comments; 21 (v) consider any comments received; and 22 (vi) hold a public hearing on each proposed modification. 23 (2) (i) Except as provided in subparagraph (ii) of this paragraph and [§ 24 12–510] §§ 12–503.1 AND 12–510 of this subtitle, the Department may not adopt, as part 25 of the Standards, a modification of a building code requirement that is more stringent than 26 the requirement in the International Building Code. 27 (ii) The Department may adopt energy conservation requirements 28 that are more stringent than the requirements in the International Energy Conservation 29 Code, but may not adopt energy conservation requirements that are less stringent than the 30 requirements in the International Energy Conservation Code. 31 (c) The Standards apply to each building or structure in the State for which a 32 building permit application is received by a local jurisdiction on or after August 1, 1995. 33 SENATE BILL 804 3 (d) In addition to the Standards, the Department shall: 1 (1) on or before January 1, 2023, adopt by regulation the 2018 2 International Green Construction Code; and 3 (2) adopt each subsequent version of the Code within 18 months after it is 4 issued. 5 12–503.1. 6 (A) (1) IN THIS SECTION THE FOLLOWIN G WORDS HAVE THE MEA NINGS 7 INDICATED. 8 (2) “ELECTRIC–READY” MEANS THE MORE STRIN GENT OF: 9 (I) ELECTRIC–READY REQUIREMENTS I N THE INTERNATIONAL 10 ENERGY CONSERVATION CODE, INCLUDING RELEVANT A PPENDICES; OR 11 (II) HAVING ADEQUATE PAN EL CAPACITY , DEDICATED 12 ELECTRIC PANEL SPACE , ELECTRICAL WIRE , ELECTRICAL RECEPTACL ES, AND 13 ADEQUATE PHYSICAL SP ACE TO ACCOMMODATE F UTURE INSTALLATION O F 14 HIGH–EFFICIENCY ELECTRIC APPLIANCES, INCLUDING HEATING , LAUNDRY, WATER 15 HEATING, COOKING, AND DRYING. 16 (3) “ENERGY EFFICIENCY ” MEANS PERCENT AGE ENERGY USE 17 REDUCTION WITH REFER ENCE TO THE 2006 INTERNATIONAL ENERGY 18 CONSERVATION CODE, AS CALCULATED FOR MARYLAND CLIMATE ZONE S AND 19 PUBLISHED BY THE U.S. DEPARTMENT OF ENERGY BUILDING ENERGY CODES 20 PROGRAM AS OF OCTOBER 1, 2025, EXCLUSIVE OF: 21 (I) RENEWABLE ENERGY PRO DUCED AND ELECTRIC V EHICLE 22 CHARGING PROVIDED AT THE BUILDING’S PREMISES; 23 (II) UNCONDITIONED FLOOR AREA; AND 24 (III) PARKING. 25 (4) “FUEL TYPE” MEANS THE COMBINATIO N OF ENERGY SOURCES 26 PLANNED FOR A USE IN A BU ILDING, INCLUDING ELECTRICIT Y AND MIXED FUEL . 27 (5) (I) “SIGNIFICANT IMPROVEME NT” MEANS ANY REPAIR , 28 RECONSTRUCTION , REHABILITATION , ALTERATION, ADDITION, OR OTHER 29 IMPROVEMENT OF A BUI LDING OR STRUCTURE , THE COST OF WHICH EQ UALS OR 30 4 SENATE BILL 804 EXCEEDS 50% OF THE REPLACEMENT C OST OF THE STRUCTURE BEFORE THE 1 IMPROVEMENT OR REPAI R IS STARTED. 2 (II) “SIGNIFICANT IMPROVEME NT” DOES NOT INCLUDE THE 3 IMPROVEMENT OF A BUI LDING: 4 1. REQUIRED TO CORRECT EXISTING HEALTH , 5 SANITARY, OR SAFETY CODE VIOLA TIONS IDENTIFIED BY A BUILDING OFFICIAL OR 6 THAT ARE THE MINIMUM NECESSARY TO ENSURE SAFE LIVING CONDITIO NS; OR 7 2. BY ALTERATION OF A H ISTORIC STRUCTURE 8 PROVIDED THAT THE AL TERATION WI LL NOT PRECLUDE THE STRUCTURE’S 9 CONTINUED DESIGNATIO N AS A HISTORIC STRU CTURE. 10 (6) “SOLAR–READY” MEANS THE MORE STRIN GENT OF: 11 (I) SOLAR–READY REQUIREMENTS I N THE INTERNATIONAL 12 BUILDING CODE OR INTERNATIONAL ENERGY CONSERVATION CODE, INCLUDING 13 RELEVANT APPENDICES ; AND 14 (II) DESIGN, ENGINEERING , AND CONSTRUCTION SO THAT AT 15 LEAST 40% OF THE ROOF AREA IS : 16 1. FREE FROM OBSTRUCTIO NS; AND 17 2. CAPABLE OF ACCEPTING THE INSTALLATION OF 18 SOLAR PANELS . 19 (B) (1) ON OR BEFORE OCTOBER 1, 2025, AS PART OF THE STANDARDS, 20 THE DEPARTMENT SHALL ADOP T: 21 (I) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A 22 REQUIREMENT THAT NEW BUILDINGS AND SIGNIFICANT IMPR OVEMENTS MEET ALL 23 LAUNDRY, WATER, AND SPACE HEATING DE MANDS OF THE BUILDIN G WITHOUT THE 24 USE OF FOSSIL FU ELS; 25 (II) AN ELECTRIC–READY STANDARD FOR N EW BUILDINGS AND 26 SIGNIFICANT IMPROVEM ENTS THAT RECEIVE A WAIVE R UNDER PARAGRAPH (2) OF 27 THIS SUBSECTION ; AND 28 (III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A 29 REQUIREMENT THAT NEW BUILDINGS OR SIGNIFICANT IMPROVEMENTS BE 30 SOLAR–READY IF THE BUILDIN G: 31 SENATE BILL 804 5 1. WILL HAVE 20,000 SQUARE FEET OR MORE OF 1 CONTINUOUS ROOF SPAC E, EXCLUDING THE PARKIN G AREA; AND 2 2. WILL BE 20 STORIES OR LESS IN H EIGHT ABOVE 3 GRADE PLANE . 4 (2) (I) SUBJECT TO SUBPARAGRA PHS (II) AND (III) OF THIS 5 PARAGRAPH , A LOCAL JURISDICTION MAY GRANT A WAIVER F ROM THE 6 REQUIREMENT UNDER PA RAGRAPH (1)(I) OF THIS SUBSECTION F OR: 7 1. EMERGENCY BACK –UP POWER SYSTEMS FOR NEW 8 BUILDINGS AND SIGNIFICANT IMPR OVEMENTS; AND 9 2. NEW BUILDINGS , SIGNIFICANT IMPROVEMENTS , AND 10 ADDITIONS SPECIFICAL LY DESIGNATED FOR OC CUPANCY BY A COMMERC IAL FOOD 11 ESTABLISHMENT , LABORATORY , LAUNDROMAT , HOSPITAL, OR CREMATORIUM . 12 (II) 1. A WAIVER GRANTED UNDER SUBPARAGRAPH (I) OF 13 THIS PARAGRAPH SHALL BE LIMITED TO BUILDI NG SYSTEMS AND AREAS THAT 14 CANNOT FEASIBLY USE ENERGY GENERATED FRO M A SOURCE OTHER THA N FOSSIL 15 FUELS. 16 2. FINANCIAL CONSIDERATI ONS ARE NOT A SUFFIC IENT 17 BASIS FOR DETERMININ G FEASIBILITY UNDER SUBSUBPARAGRAPH 1 OF THIS 18 SUBPARAGRAPH . 19 (III) A BUILDING OR SIGNIFICANT IMPRO VEMENT THAT IS 20 GRANTED A WAIVER UND ER SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL: 21 1. SEEK TO MINIMIZE EMI SSIONS FROM ITS FOSS IL FUEL 22 USE; 23 2. MAXIMIZE HEALTH , SAFETY, AND FIRE PROTECTION ; 24 AND 25 3. BE REQUIRED TO COMPL Y WITH T HE 26 ELECTRIC–READY STANDARDS ADOP TED UNDER PARAGRAPH (1)(II) OF THIS 27 SUBSECTION. 28 (IV) TO ENSURE A WAIVER GR ANTED UNDER SUBPARAG RAPH (I) 29 OF THIS PARAGRAPH IS STILL NECESSARY , THE WAIVER SHALL BE REVIEWED: 30 6 SENATE BILL 804 1. EACH TIME THE STANDARDS ARE MODIFIE D BY THE 1 DEPARTMENT ; AND 2 2. BY THE LOCAL JURISDI CTION THAT GRANTED T HE 3 WAIVER EACH TIME THE LOCAL JURISDICTION M ODIFIES ITS LOCAL AM ENDMENTS 4 UNDER § 12–504 OF THIS SUBTITLE. 5 (3) REGULATIONS ADOPTED U NDER THIS SUBSECTION MAY 6 AUTHORIZE A LOCAL JU RISDICTION TO WAIVE THE SOLA R–READY REQUIREMENTS 7 FOR A BUILDING ON A SPECIFIC FINDING THA T: 8 (I) INCIDENT SOLAR RADIA TION AT THE BUILDING SITE IS LESS 9 THAN 75% OF INCIDENT SOLAR RA DIATION AT AN OPEN S ITE; OR 10 (II) SHADOW STUDIES INDIC ATE THAT 25% OF A BUILDING’S 11 ROOF AREA WILL BE IN SHADOW. 12 (4) NOTHING IN THIS SUBSE CTION MAY BE CONSTRU ED TO PROHIBIT 13 A LOCAL JURISDICTION FROM PROHIBITING THE USE OF FOSSIL FUELS IN 14 BUILDINGS OR SIGNIFICANT IMPRO VEMENTS OR ADOPTING ENERGY 15 CONSERVATION AND SOL AR ENERGY R EQUIREMENTS FOR BUIL DINGS OR 16 SIGNIFICANT IMPROVEM ENTS THAT ARE MORE STRING ENT THAN THE 17 REQUIREMENTS ESTABLI SHED BY THE DEPARTMENT UNDER THIS SECTION. 18 (C) (1) IN THIS SUBSECTION , “COVERED BUILDING ” MEANS A 19 COMMERCIAL OR RESIDE NTIAL BUILDING WITH A GROSS FLOOR AREA OF LESS THAN 20 35,000 SQUARE FEET, EXCLUDING THE PARKIN G GARAGE AREA . 21 (2) THIS SUBSECTION APPLI ES ONLY TO NEW CONST RUCTION. 22 (3) (I) THE DEPARTMENT SHALL ADOP T, AS PART OF THE 23 STANDARDS, REGULATIONS ESTABLIS HING ENERGY CONSERVA TION 24 REQUIREMENTS FOR COV ERED BUILDINGS IN AC CORDANCE WITH THIS 25 SUBSECTION. 26 (II) IN DEVELOPING THE REG ULATIONS, THE DEPARTMENT : 27 1. A. SUBJECT TO ITEM B OF THIS ITEM , SHALL 28 ESTIMATE ENERGY EFFICIENCY OU TCOMES OF THE STANDARDS ACCORDING TO 29 PUBLICATIONS A ND METHODS FROM THE U.S. DEPARTMENT OF ENERGY OR ITS 30 CONTRACTORS ; AND 31 B. MAY SEEK ADVICE FROM THE U.S. DEPARTMENT OF 32 SENATE BILL 804 7 ENERGY, ITS CONTRACTORS , OR SIMILARLY QUALIFI ED PARTIES TO MAKE T HESE 1 ESTIMATES; AND 2 2. SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTI ON, 3 FOR THE PURPOSES OF THE STANDARDS AUTHORIZING COMPLIANCE VIA THE 4 ATTAINMENT OF ENERGY EFFICIENCY CREDITS O R ACHIEVEMENT OF 5 PERFORMANCE THRESHOL DS, SHALL CALCULATE AND ADOPT CREDITS AND 6 PERFORMANCE THRESHOL DS IN A MANNER THAT COMPARES SITE ENERGY USE 7 INTENSITY CHANGES FROM ENERGY EFFICIENCY ME ASURES TO A 8 MARYLAND–SPECIFIC BASELINE MODEL THAT DOES NOT VARY ACCORD ING TO FUEL 9 TYPE OF THE PROPOSED BUILDING FOR RELEVANT BUILDIN G TYPES. 10 (4) CREDITS OR PERFORMANC E THRESHOLDS MAY NOT BE 11 CALCULATED IN A MANN ER THAT AUTHORIZES BU ILDINGS OF A CERTAIN FUEL TYPE 12 TO COMPLY WITH THE STANDARDS WHILE ACHIE VING A LOWER ENERGY 13 EFFICIENCY ON AVERAGE THAN BUIL DINGS OF A DIFFERENT FUEL TYPE. 14 (5) SUBJECT TO PARAGRAPH (7) OF THIS SUBSECTION , THE 15 REGULATIONS SHALL RE QUIRE NEW RESIDENTIA L BUILDINGS LESS THA N FOUR 16 STORIES ABOVE GRADE PLANE TO ACHIEVE , ON AVERAGE , ENERGY EFFICIENCY 17 EQUAL TO OR GREATER THAN: 18 (I) 35% FOR BUILDING PERMIT APPLICATIONS RECEIVE D 19 FROM MARCH 1, 2027, THROUGH FEBRUARY 28, 2030, BOTH INCLUSIVE ; 20 (II) 50% FOR BUILDING PERMIT APPLICATIONS RECEIVE D 21 FROM MARCH 1, 2030, THROUGH FEBRUARY 28, 2033, BOTH INCLUSIVE ; AND 22 (III) 65% FOR BUILDING PERMIT APPLICATIONS RECEIVE D ON 23 OR AFTER MARCH 1, 2033. 24 (6) SUBJECT TO PARAGRAPH (7) AND EXCEPT AS PROVID ED IN 25 PARAGRAPH (5) OF THIS SUBSECTION , THE REGULATIONS SHAL L REQUIRE ALL 26 BUILDINGS, REGARDLESS OF FUEL T YPE, TO ACHIEVE ON AVERAGE ENERGY 27 EFFICIENCY EQUAL TO OR GREATER THAN: 28 (I) 45% FOR BUILDING PERMIT APPLICATIONS RECEIVE D 29 FROM MARCH 1, 2027, THROUGH FEBRUARY 28, 2030, BOTH INCLUSIVE ; 30 (II) 55% FOR BUILDING PERMIT APPLICATIONS RECEIVE D 31 FROM MARCH 1, 2030, THROUGH FEBRUARY 28, 2033, BOTH INCLUSIVE ; AND 32 (III) 65% FOR BUILDING P ERMIT APPLICATIONS R ECEIVED ON 33 8 SENATE BILL 804 OR AFTER MARCH 1, 2033. 1 (7) (I) A LOCAL JURISDICTION M AY ADOPT ENERGY 2 CONSERVATION REQUIRE MENTS FOR BUILDINGS THAT ARE MORE STRING ENT THAN 3 THE REQUIREMENTS EST ABLISHED BY THE DEPARTMENT UNDER THIS SECTION. 4 (II) IF THE LOCAL JURISDICTION W HERE A COVERED BUILD ING 5 WILL BE LOCATED HAS ADOPTED ENERGY CONSE RVATION REQUIREMENTS MORE 6 STRINGENT THAN THE R EQUIREMENTS ESTABLIS HED UNDER THIS SUBSE CTION, 7 THE BUILDING SHALL B E REQUIRED TO MEET T HE MORE STRINGENT 8 REQUIREMENTS . 9 (8) IF THE VERSION OF THE STANDARDS IN EFFECT A T THE TIME A 10 BUILDING PERMIT APPL ICATION IS RECEIVED REQUIRES THE BUILDING TO MEET 11 ENERGY CONSERVATION REQUIREMENTS THAT AR E MORE STRINGENT THA N THE 12 REQUIREMENTS ESTABLI SHED UNDER THIS SUBS ECTION, THE BUILDING SHA LL BE 13 REQUIRED TO MEET THE MORE STRINGENT REQUI REMENTS. 14 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15 October 1, 2025. 16