BEPS Benchmarks on the Horizon: Maryland CRE's Roadmap for Preparedness
Maryland's commercial real estate (CRE) sector is facing a pivotal moment with the impending implementation of Building Energy Performance Standards (BEPS). This groundbreaking legislation mandates significant reductions in building energy consumption and greenhouse gas emissions, marking a new era of sustainability for the state’s built environment. As compliance deadlines loom, CRE owners and managers must proactively address the challenges and opportunities presented by the proposed regulations to ensure their properties are well-prepared for the future.
Maryland's Building Energy Performance Standards (BEPS)
Maryland enacted the Climate Solutions Now Act in April 2022, setting an ambitious goal of reducing greenhouse gas emissions by 60% below 2006 levels by 2031 and achieving net-zero by 2045.
To meet these targets, Maryland is proposing the implementation of Building Energy Performance Standards (BEPS) for covered buildings (35,000 square feet or larger) aiming to achieve net-zero direct greenhouse gas emissions from buildings by 2040. Building owners will be required to report energy usage data to the Maryland Department of the Environment (MDE) starting in 2025 which will be used to establish performance benchmarks and track progress toward the 2030 interim target and the ultimate 2040 net-zero goal.
It's important to note that the draft BEPS regulations have faced significant pushback from both the business community and other stakeholders with the ambitious goals outlined, citing a need for further refinement to create a workable and affordable standard.
Despite this opposition, building owners should begin preparing for potential BEPS requirements to ensure they are ready to comply with whatever final regulations are implemented.
The Intrinsic Benefits of Building Performance Enhancement
While impending climate regulations are accelerating the drive towards sustainable buildings, the intrinsic benefits of building performance enhancement offer compelling reasons for early action regardless of external pressures. Beyond cost savings from increased energy efficiency and improved indoor air quality, building upgrades contribute to enhanced occupant health, comfort, and productivity. These factors not only bolster employee satisfaction but can also increase property value and market appeal.
To fully realize these advantages, a proactive approach to building optimization and sustainable practice is essential, encompassing thorough building assessments and the strategic integration of advanced technologies.
A Case Study: Leadership in Sustainability for the Built Environment
Baltimore Gas and Electric's recent installation of Carbon Reform's Carbon Capsule at their Spring Gardens facility is a proactive step towards building optimization that aligns with their own personal Path to Clean initiative. The innovative retrofit technology addresses multiple building challenges simultaneously by capturing carbon dioxide, improving indoor air quality, and reducing energy consumption. The Carbon Capsule’s ability to reduce cooling loads and improve energy efficiency makes it an attractive option for building owners seeking to optimize building performance.
This pilot project not only positions BGE for future compliance with regulations, but also has the potential to significantly reduce operational costs and enhance employee well-being.
Turning Challenges into Opportunities
Maryland's commercial real estate sector stands at a pivotal moment. By embracing the challenges and opportunities presented, the industry can position itself as a leader in sustainable development. Early and strategic planning, coupled with the adoption of innovative technologies like the Carbon Capsule, will be crucial for building owners to not only meet future compliance requirements but also unlock the potential for significant energy cost savings, improved occupant health, and increased property value.
