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<section article="gen" article_name="Environment" number="2-1602" future_version_removed="true" title_number="2" title_name="Ambient Air Quality Control" subtitle_number="16" subtitle_name="Building Energy Performance Standards">
  <level label="a">
    <text>The Department shall develop building energy performance standards for covered buildings that achieve:</text>
    <level label="1">
      <text>A 20% reduction in net direct greenhouse gas emissions on or before January 1, 2030, as compared with 2025 levels for average buildings of similar construction; and</text>
    </level>
    <level label="2">
      <text>Net–zero direct greenhouse gas emissions on or before January 1, 2040.</text>
    </level>
  </level>
  <level label="b">
    <text>To facilitate the development of building energy performance standards under this section, the Department shall require the owners of covered buildings to measure and report direct emissions data to the Department annually beginning in 2025.</text>
  </level>
  <level label="c">
    <level label="1">
      <text>On or before June 1, 2023, the Department shall adopt regulations to implement this section.</text>
    </level>
    <level label="2">
      <text>Regulations adopted under this section shall:</text>
      <level label="i">
        <text>Subject to items (ii), (iii), (iv), and (v) of this paragraph, include energy use intensity targets by building type;</text>
      </level>
      <level label="ii">
        <text>As necessary, include special provisions or exceptions to account for:</text>
        <level label="1">
          <text>Building age;</text>
        </level>
        <level label="2">
          <text>Regional differences;</text>
        </level>
        <level label="3">
          <text>The unique needs of particular building or occupancy types, including health care facilities, laboratories, assisted living and nursing facilities, military buildings, critical infrastructure, and buildings used in life sciences as defined in § 3–201 of the Economic Development Article;</text>
        </level>
        <level label="4">
          <text>The use of district energy systems and biofuels by covered buildings;</text>
        </level>
        <level label="5">
          <text>Crediting the generation of on–site renewable energy by covered buildings toward their energy use intensity targets;</text>
        </level>
        <level label="6">
          <text>Crediting the greenhouse gas reduction impact of the on–site use of biomethane;</text>
        </level>
        <level label="7">
          <text>Excluding the energy use and greenhouse gas emissions related to the production of steam for sterilization in a health care facility, laboratory, assisted living and nursing facility, military building, or building used in life sciences; and</text>
        </level>
        <level label="8">
          <text>Excluding the energy use and greenhouse gas emissions related to the generation of emergency backup power at a health care facility, laboratory, assisted living and nursing facility, military building, critical infrastructure, or building used in life sciences;</text>
        </level>
      </level>
      <level label="iii">
        <text>Consider the needs of the owners of covered buildings who:</text>
        <level label="1">
          <text>Are not responsible for the design, modification, fixtures, or equipment of commercial tenants;</text>
        </level>
        <level label="2">
          <text>Do not have access to or control over building energy systems that are used or controlled by commercial tenants; or</text>
        </level>
        <level label="3">
          <text>Own buildings occupied by commercial tenants who are responsible for all maintenance of and repairs to the buildings;</text>
        </level>
      </level>
      <level label="iv">
        <text>Subject to paragraph (3) of this subsection, exempt from energy use intensity targets a covered building that contains an area designed, built, and operated as a permanent sensitive compartmented information facility and is operated by an agency or contractor of:</text>
        <level label="1">
          <text>The U.S. General Services Administration;</text>
        </level>
        <level label="2">
          <level label="A">
            <text>The U.S. Department of Defense;</text>
          </level>
        </level>
        <level label="B">
          <text>The National Security Agency;</text>
        </level>
        <level label="C">
          <text>The U.S. Department of Homeland Security; or</text>
        </level>
        <level label="D">
          <text>Any other U.S. intelligence agency; or</text>
        </level>
        <level label="3">
          <text>The State;</text>
        </level>
      </level>
      <level label="v">
        <text>Exempt an owner of a covered building from energy use intensity reporting requirements if:</text>
        <level label="1">
          <text>The covered building meets the criteria under item (iv) of this paragraph; and</text>
        </level>
        <level label="2">
          <text>In circumstances where tenant authorization is required, the tenant or occupant does not provide energy use information to the owner of the covered building due to concerns about the confidentiality of the building’s secure area;</text>
        </level>
      </level>
      <level label="vi">
        <text>Provide maximum flexibility to the owners of covered buildings to comply with building energy performance standards;</text>
      </level>
      <level label="vii">
        <text>Subject to paragraph (3) of this subsection, include an alternative compliance pathway allowing the owner of a covered building to pay a fee for greenhouse gas emissions attributable to the building’s failure to meet direct greenhouse gas emissions reduction targets;</text>
      </level>
      <level label="viii">
        <text>To the extent authorized by law, include financial incentives recommended by the Building Energy Transition Implementation Task Force; and</text>
      </level>
      <level label="ix">
        <text>Include an annual reporting fee of $100 per covered building, adjusted for inflation, to cover the administrative costs of the program.</text>
      </level>
    </level>
    <level label="3">
      <text>The Department may not set an alternative compliance fee that is less than the social cost of greenhouse gases adopted by the Department or the U.S. Environmental Protection Agency.</text>
    </level>
    <level label="4">
      <level label="i">
        <text>Subject to subparagraph (ii) of this paragraph, the Department shall certify a building energy performance standards program adopted by a county administering a building energy performance standards program on or before March 1, 2025, and waive the requirement for covered buildings in the county to comply with the statewide program adopted under this section.</text>
      </level>
      <level label="ii">
        <text>A county administering a building energy performance standards program certified by the Department under subparagraph (i) of this paragraph may take appropriate actions to enforce the standards, including:</text>
        <level label="1">
          <text>Establishing alternative compliance pathways for complying with energy use intensity and direct greenhouse gas emissions requirements established in the standards;</text>
        </level>
        <level label="2">
          <text>Imposing and collecting alternative compliance fees up to the same amount and in the same manner allowed by the Department under this section; and</text>
        </level>
        <level label="3">
          <text>Imposing and collecting penalties up to the same amount and in the same manner allowed by the Department under § 2–610 of this title.</text>
        </level>
      </level>
    </level>
    <level label="5">
      <text>Nothing in this section shall preclude a county administering a building energy performance standards program certified by the Department under paragraph (4)(i) of this subsection from:</text>
      <level label="i">
        <text>Adopting building energy performance standards for buildings that are not covered buildings under the statewide program adopted under this section; or</text>
      </level>
      <level label="ii">
        <text>Modifying an adopted building performance standards program.</text>
      </level>
    </level>
  </level>
  <level label="d">
    <text>Electric companies and gas companies shall provide energy data, including whole–building and aggregate data, to the owners of covered buildings for benchmarking purposes.</text>
  </level>
  <level label="e">
    <text>In calculating the statewide standards developed by the Department under this section, an owner of a covered building may not consider greenhouse gas emissions or energy use by a commercial tenant of the covered building that:</text>
    <level label="1">
      <text>Is a food service facility as defined in COMAR 10.15.03.02; and</text>
    </level>
    <level label="2">
      <text>Engages in commercial cooking and water heating.</text>
    </level>
  </level>
</section>
