Maryland’s Building Energy Performance Standards (BEPS) require owners of large commercial and multifamily buildings (35,000+ sq ft) to benchmark energy use annually via ENERGY STAR Portfolio Manager, have data verified by a credentialed third party, and reduce direct greenhouse gas emissions to net zero by 2040. Only onsite fossil fuel combustion counts — not grid electricity
Threshold: 35,000+ sq ft
Verification: Every 5 years
Penalties: ACF + case-by-case enforcement
Threshold: 25,000+ sq ft
Verification: Every 3 years
Penalties: Up to $500/day ($182,500/yr)
Threshold: 35,000+ sq ft (state program)
Penalties: Up to $7,500 for non-compliance
| When | Requirement |
|---|---|
|
2025 |
First Benchmarking Report — Submit your building’s energy use to MDE by June 1 using ENERGY STAR Portfolio Manager. Requires utility data for all fuel types. |
|
2026 |
⚠ Third-Party Verification — A credentialed verifier must independently confirm your CY2025 benchmarking data. Required every 5 years (state) or 3 years (Montgomery County). Deadline: June 1, 2026. $100 annual reporting fee per building also begins. |
|
Ongoing |
Annual Benchmarking + Emissions Reporting — Report energy use and direct GHG emissions (natural gas, fuel oil, propane, diesel) to MDE each June 1. Grid electricity does not count. |
|
2030 |
Interim Emissions Standards Begin — Property-type-specific limits take effect. Buildings exceeding their limit pay an Alternative Compliance Fee starting at $230/metric ton of excess CO₂e (increasing $4/ton each year, in 2020 dollars adjusted for inflation). |
|
2035 |
Stricter Standards — Tighter emissions limits for 2035–2039. Buildings without electrification upgrades face significantly higher fees. |
|
2040 |
Net Zero Direct Emissions — All covered buildings must achieve zero net direct emissions. Any remaining onsite fossil fuel use is subject to the full compliance fee. |
A 100,000 sq ft office building using natural gas for heating Current emissions: 1.33 kg CO₂e/sq ft │ 2030 target: 0.22 kg CO₂e/sq ft
This building is 6× over the limit — estimated fee: $25,000+/year (rising annually until net zero)
An energy audit is the essential first step. Without one, you’re guessing at costs and timelines.
An audit pays for itself. The cost of an energy audit is a fraction of even one year’s compliance fee — and it gives you the roadmap to eliminate those fees entirely.
Starting in 2026, self-reported benchmarking data must be reviewed and signed off by a credentialed third party to ensure accuracy. Both State and Montgomery County programs require this for calendar year 2025 data. We recommend starting the verification process by March or April to allow time to correct any utility data errors before the June 1 submission deadline.
It depends on your location. If in Montgomery County: you must report to the County — their threshold is stricter at 25,000 sq ft. If elsewhere in Maryland: the State threshold is 35,000 sq ft, so a 30,000 sq ft building outside Montgomery County is currently exempt from statewide benchmarking requirements.
The State charges an alternative compliance fee starting at $230 per metric ton of excess CO₂e (in 2020 dollars, adjusted for inflation), increasing $4 per metric ton each year. Montgomery County can impose fines of up to $500 per day for non-compliance — and they are actively enforcing. A $100 annual reporting fee also begins statewide in 2026.
Yes, but criteria differ by jurisdiction and exemptions are not automatic — you must apply. State exemptions cover historic buildings, manufacturing, agricultural, federal buildings, and demolished buildings. Montgomery County also offers waivers for low occupancy (<50%), financial distress, new construction, and pending demolition. Contact us if you believe you qualify — we can assess eligibility and file the paperwork on your behalf.
Benchmarking is the first step — measuring and reporting your building’s energy use annually via ENERGY STAR Portfolio Manager. BEPS compliance goes further: starting in 2030, buildings must meet actual greenhouse gas emissions reduction targets, with interim standards through 2039 and net-zero by 2040. Think of benchmarking as the measurement, and BEPS as the standard your building must meet. Starting early on energy improvements gives you a head start.
No. Grid electricity emissions are not counted toward the direct emissions performance metric in BEPS. The regulation only covers emissions from onsite fuel combustion — such as natural gas and fuel oil. The only rare exception is buildings connected to a district energy system. This means reductions in electricity usage alone do not help meet emissions targets; the focus is on eliminating or reducing onsite fossil fuel use.
All owners share responsibility. MDE will not delegate responsibilities to specific owners. It is the responsibility of all owners to determine the most effective way to meet BEPS requirements. Non-compliance is attributed to all owners of the covered building, regardless of who was supposed to handle the reporting. We recommend formalizing who handles compliance in your ownership or operating agreements.
Submit a data request to your utility provider(s). If your building has fewer than 5 tenants, you’ll need written authorization from each tenant — either through a data release consent form or a lease provision — before the utility company will provide whole-building consumption data. For guidance, see section A.3 of MDE’s Benchmarking Guide. If you have trouble accessing data, contact MDE at 410-537-3183 or [email protected].
Yes. Failure to submit puts you in violation of the BEPS regulation. Violations are reviewed and enforced on a case-by-case basis by the MDE Air and Radiation Administration Compliance Program. Enforcement may range from warnings to fees. If you have concerns about meeting a deadline, contact MDE proactively at [email protected] — early communication can make a significant difference.
Yes. Building owners can apply for exemption from both benchmarking and performance standards for: financial distress, unoccupied buildings, or buildings demolished during the reporting year. “Financial distress” specifically means properties subject to a tax lien sale or public auction, controlled by a court-appointed receiver, or acquired by deed in lieu of foreclosure in the past year. Exemption requests must be submitted via the BEPS Portal before the June 1 deadline, and hardship exemptions are limited to the year for which they are requested.
Yes. The Clean Buildings Hub, an initiative of the Maryland Energy Administration (MEA), connects building owners with available incentives, resources, and technical assistance. The Hub is compiling state, federal, local, and utility incentives. Federal programs include the Energy Efficient Commercial Building Deduction (up to $5/sq ft for projects that reduce energy use intensity) through the Inflation Reduction Act. Sign up for the Hub newsletter at [email protected] to be alerted of new funding opportunities.
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