Environment - Building Energy Performance Standards - Repeal

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0988*

HOUSE BILL 988
M5, M3 6lr1868

By: Delegates Hartman, Adams, Anderson, Arentz, Baker, Beauchamp, Buckel,
Chisholm, Ciliberti, Ghrist, Griffith, Hinebaugh, Hutchinson, Jacobs,
Kipke, R. Long, Mangione, McComas, Metzgar, Miller, T. Morgan, Nkongolo,
Pippy, Reilly, Rose, Schmidt, Stonko, Tomlinson, Valentine, and Wivell
Introduced and read first time: February 6, 2026
Assigned to: Environment and Transportation and Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Environment – Building Energy Performance Standards – Repeal 2

FOR the purpose of repealing certain provisions of law establishing and governing building 3
energy performance standards ; and generally relating to building energy 4
performance standards. 5

BY repealing 6
Article – Environment 7
Section 2 –1601 and the subtitle “Subtitle 16. Building Energy Performance 8
Standards” 9
Annotated Code of Maryland 10
(2013 Replacement Volume and 2025 Supplement) 11

BY repealing 12
Article – Environment 13
Section 2–1602 14
Annotated Code of Maryland 15
(2013 Replacement Volume and 2025 Supplement) 16
(As enacted by Chapter 844 of the Acts of the General Assembly of 2025) 17

BY repealing and reenacting, with amendments, 18
Article – Housing and Community Development 19
Section 4–211(d)(1) and (2) 20
Annotated Code of Maryland 21
(2019 Replacement Volume and 2025 Supplement) 22

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
2 HOUSE BILL 988

Article – Environment 1

[Subtitle 16. Building Energy Performance Standards.] 2

[2–1601. 3

(a) In this subtitle the following words have the meanings indicated. 4

(b) (1) “Agricultural building” means a structure that is used primarily to 5
cultivate, manufacture, process, or produce agricultural crops, raw materials, products, or 6
commodities. 7

(2) “Agricultural building” includes a greenhouse. 8

(c) “Building” has the meaning stated in the International Building Code. 9

(d) “Commercial bui lding” means a building that is subject to the commercial 10
provisions of the International Energy Conservation Code. 11

(e) (1) “Covered building” means a building that: 12

(i) 1. Is a commercial or multifamily residential building in the 13
State; or 14

2. Is owned by the State; and 15

(ii) Has a gross floor area of 35,000 square feet or more, excluding 16
the parking garage area. 17

(2) “Covered building” does not include: 18

(i) A building designated as a historic property under federal, State, 19
or local law; 20

(ii) A public or nonpublic elementary or secondary school building; 21

(iii) A hospital; 22

(iv) A manufacturing building; or 23

(v) An agricultural building. 24

(f) “Critical infrastructure” has the meaning stated in § 1 –101 of the Public 25
Utilities Article. 26

HOUSE BILL 988 3

(g) “Direct greenhouse gas emissions” means greenhouse gas emissions produced 1
on–site by covered buildings. 2

(h) “District energy” means thermal energy generated at one or more central 3
facilities that produce hot water, steam, or chilled water that then flows through a network 4
of insulated underground pipes to provide hot water, space heating, air conditioning, or 5
chilled water to nearby buildings. 6

(i) “Manufacturing building” means a facility in which manufacturing, as defined 7
in § 2–1202 of this article, takes place.] 8

[2–1602. 9

(a) The Department shall develop building energy performance standards for 10
covered buildings that achieve: 11

(1) A 20% reduction in net direct greenhouse gas emissions on or before 12
January 1, 2030, as compared with 2025 levels for average buildings of similar construction; 13
and 14

(2) Net–zero direct greenhouse gas emissions on or before January 1, 2040. 15

(b) To facilitate the development of building energy performance standards under 16
this section, the Department shall require the owners of covered buildings to measure and 17
report direct emissions data to the Department annually beginning in 2025. 18

(c) (1) On or before June 1, 2023, the Department shall adopt regulations to 19
implement this section. 20

(2) Regulations adopted under this section shall: 21

(i) Subject to items (ii), (iii), (iv), and (v) of this paragraph, include 22
energy use intensity targets by building type; 23

(ii) As necessary, include special provisions or exceptions to account 24
for: 25

1. Building age; 26

2. Regional differences; 27

3. The unique needs of particular building or occupancy 28
types, including health care facilities, laboratories, assisted living and nursing facilities, 29
military buildings, critical infrastructure, and buildings used in life sciences as defined in 30
§ 3–201 of the Economic Development Article; 31

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4. The use of district energy systems and biofuels by covered 1
buildings; 2

5. Crediting the generation of on –site renewable energy by 3
covered buildings toward their energy use intensity targets; 4

6. Crediting the greenhouse gas reduction impact of the 5
on–site use of biomethane; 6

7. Excluding the energy use and greenhouse gas emissions 7
related to the production of steam for sterilization in a health care facility, laboratory, 8
assisted living and nursing facility, military building, or building used in life sciences; and 9

8. Excluding the energy use and greenhouse gas emissions 10
related to the generation of emergency backup power at a health care facili ty, laboratory, 11
assisted living and nursing facility, military building, critical infrastructure, or building 12
used in life sciences; 13

(iii) Consider the needs of the owners of covered buildings who: 14

1. Are not responsible for the design, modificati on, fixtures, 15
or equipment of commercial tenants; 16

2. Do not have access to or control over building energy 17
systems that are used or controlled by commercial tenants; or 18

3. Own buildings occupied by commercial tenants who are 19
responsible for all maintenance of and repairs to the buildings; 20

(iv) Subject to paragraph (3) of this subsection, exempt from energy 21
use intensity targets a covered building that contains an area designed, built, and operated 22
as a permanent sensitive compartmented information facility and is operated by an agency 23
or contractor of: 24

1. The U.S. General Services Administration; 25

2. A. The U.S. Department of Defense; 26

B. The National Security Agency; 27

C. The U.S. Department of Homeland Security; or 28

D. Any other U.S. intelligence agency; or 29

3. The State; 30

HOUSE BILL 988 5

(v) Exempt an owner of a covered building from energy use intensity 1
reporting requirements if: 2

1. The covered building meets the criteria under item (iv) of 3
this paragraph; and 4

2. In circumstances where tenant authorization is required, 5
the tenant or occupant does not provide energy use information to the owner of the covered 6
building due to concerns about the confidentiality of the building’s secure area; 7

(vi) Provide maximum f lexibility to the owners of covered buildings 8
to comply with building energy performance standards; 9

(vii) Subject to paragraph (3) of this subsection, include an alternative 10
compliance pathway allowing the owner of a covered building to pay a fee for g reenhouse 11
gas emissions attributable to the building’s failure to meet direct greenhouse gas emissions 12
reduction targets; 13

(viii) To the extent authorized by law, include financial incentives 14
recommended by the Building Energy Transition Implementation Task Force; and 15

(ix) Include an annual reporting fee of $100 per covered building, 16
adjusted for inflation, to cover the administrative costs of the program. 17

(3) The Department may not set an alternative compliance fee that is less 18
than the social cost of greenhouse gases adopted by the Department or the U.S. 19
Environmental Protection Agency. 20

(4) (i) Subject to subparagraph (ii) of this paragraph, the Department 21
shall certify a building energy performance standards program adopted by a county 22
administering a building energy performance standards program on or before March 1, 23
2025, and waive the requirement for covered buildings in the county to comply with the 24
statewide program adopted under this section. 25

(ii) A county administering a building energy performance 26
standards program certified by the Department under subparagraph (i) of this paragraph 27
may take appropriate actions to enforce the standards, including: 28

1. Establishing alternative compliance pathways for 29
complying with energy use i ntensity and direct greenhouse gas emissions requirements 30
established in the standards; 31

2. Imposing and collecting alternative compliance fees up to 32
the same amount and in the same manner allowed by the Department under this section; 33
and 34

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3. Imposing and collecting penalties up to the same amount 1
and in the same manner allowed by the Department under § 2–610 of this title. 2

(5) Nothing in this section shall preclude a county administering a building 3
energy performance standards program certified by the Department under paragraph (4)(i) 4
of this subsection from: 5

(i) Adopting building energy performance standards for buildings 6
that are not covered buildings under the statewide program adopted under this section; or 7

(ii) Modifying an adopted building performance standards program. 8

(d) Electric companies and gas companies shall provide energy data, including 9
whole–building and aggregate data, to the owners of covered buildings for benchmarking 10
purposes. 11

(e) In calculating the statewide stand ards developed by the Department under 12
this section, an owner of a covered building may not consider greenhouse gas emissions or 13
energy use by a commercial tenant of the covered building that: 14

(1) Is a food service facility as defined in COMAR 10.15.03.02; and 15

(2) Engages in commercial cooking and water heating.] 16

Article – Housing and Community Development 17

4–211. 18

(d) (1) (i) In this subsection the following words have the meanings 19
indicated. 20

(ii) 1. “Covered building” [has the meaning stated in § 2–1601 of 21
the Environment Article] MEANS A BUILDING THAT: 22

A. IS OWNED BY THE STATE OR IS A COMMERCIAL OR 23
MULTIFAMILY RESIDENTIAL BUILDING IN THE STATE; AND 24

B. HAS A GROSS FLOOR ARE A OF 35,000 SQUARE FEET 25
OR MORE, EXCLUDING THE PARKING GARAGE AREA. 26

2. “COVERED BUILDING” DOES NOT INCLUDE: 27

A. A BUILDING DESIGNATED AS A HISTORIC PROPER TY 28
UNDER FEDERAL, STATE, OR LOCAL LAW; 29

HOUSE BILL 988 7

B. A PUBLIC OR NONPUBLIC ELEMENTARY OR 1
SECONDARY SCHOOL BUILDING; 2

C. A MANUFACTURING BUILDING; OR 3

D. AN AGRICULTURAL BUILDING. 4

(iii) “Energy conservation project” means a project that qualifies 5
under § 4–218 of this subtitle. 6

(2) For the purpose of reducing direct greenhouse gas emissions from 7
multifamily residential buildings [in accordance with the standards adopted under § 8
2–1602 of the Environment Article ], the Administration shall develop and implement a 9
program to provide grants and loans for energy conservation projects and projects to install 10
renewable energy generating systems in covered buildings that house primarily low – to 11
moderate–income households. 12

SECTION 2. AND BE IT FURTHER ENACTED, That the publisher of the 13
Annotated Code of Maryland, in consultation with and subject to the approval of the 14
Department of Legislative Services, shall correct, with no further action required by the 15
General Assembly, cross –references and terminology rendered incorrect by this Act. The 16
publisher shall adequately describe any correction that is made in an editor’s note following 17
the section affected. 18

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2026. 20