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.
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