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SB 804

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2026 Regular Session Introduced by Keith Truenow

MD Labor must upgrade MBPS to ban fossil-fuel heating in new/major renovations, require electric-ready and solar-ready, and sharply raise energy-efficiency for small buildings.

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Bill Summary · SB 804

SB 804 — Maryland Building Performance Standards (Better Buildings Act of 2025)

Status: Introduced Jan 28, 2025. Assigned to MD Department of Labor rulemaking; MD Labor must adopt required MBPS provisions by Oct 1, 2025. Fiscal note and committee action completed; hearings underway.

Main purpose

Require the Maryland Department of Labor (MD Labor) to strengthen the Maryland Building Performance Standards (MBPS) to: (1) phase new construction and major renovations away from fossil‑fuel heating for laundry, water, and space heating; (2) set electric‑ready and solar‑ready requirements; and (3) establish stricter energy‑conservation (efficiency) standards for smaller “covered buildings.” The goal is to reduce building fossil‑fuel use and improve energy efficiency statewide while allowing limited, tightly scoped waivers.

Key provisions / requirements

  • Deadlines: MD Labor must adopt the new MBPS provisions by October 1, 2025.
  • Fossil‑fuel prohibition (new buildings & “significant improvements”): require all laundry, water, and space heating demands to be met without fossil fuels (subject to limited waivers).
    • “Significant improvement” = remodel/repair/addition costing ≥50% of the building’s pre‑improvement replacement cost.
  • Electric‑ready standard: MD Labor must adopt electric‑ready requirements for buildings that receive a waiver. “Electric‑ready” = either IECC electric‑ready requirements or provisions ensuring adequate panel capacity, dedicated panel space, wiring, receptacles and physical space to accommodate future high‑efficiency electric appliances (heating, laundry, water heating, cooking, drying).
  • Solar‑ready requirement: New buildings/significant improvements must be “solar‑ready” if they have ≥20,000 sq ft continuous roof area (excluding parking) and are ≤20 stories. “Solar‑ready” = the more stringent of model code solar‑ready rules or roof design/engineering that keeps ≥40% of roof area free of obstructions and capable of accepting solar panels. Local waiver allowed if incident solar radiation <75% of an open site or shadow studies show ≥25% roof shadow.
  • Energy conservation (covered buildings): MD Labor must adopt energy‑efficiency regulations for “covered buildings” (commercial/residential buildings <35,000 sq ft gross floor area, parking excluded). “Energy efficiency” is measured as percent energy‑use reduction vs. the 2006 IECC baseline (Maryland climate zones), excluding on‑site renewables, EV charging, unconditioned area and parking.
    • Targets for new construction (permit application date rules):
    • Residential buildings <4 stories:
      • 35% reduction for permits (3/1/2027–2/28/2030)
      • 50% reduction for permits (3/1/2030–2/28/2033)
      • 65% reduction for permits on/after 3/1/2033
    • All covered buildings (regardless of fuel type):
      • 45% (3/1/2027–2/28/2030)
      • 55% (3/1/2030–2/28/2033)
      • 65% (on/after 3/1/2033)
    • MD Labor must estimate outcomes, allow credits/performance thresholds, and may consult DOE or qualified contractors.
  • Waivers: Local jurisdictions may grant waivers limited to emergency back‑up power and specified occupancies (commercial kitchens, labs, laundromats, hospitals, crematoria) only where non‑fossil alternatives are not feasible. Financial hardship alone is not sufficient. Waivers must be reviewed whenever MBPS or local amendments are updated.
  • Local authority: Jurisdictions may adopt more stringent rules than the state MBPS.

Who is affected

  • New building owners, designers and developers in Maryland and owners undertaking “significant improvements.”
  • Local permitting authorities and jurisdictions (must implement MBPS and can grant limited waivers).
  • Construction industry, HVAC/plumbing/electrical contractors, solar installers, and manufacturers of electric equipment.
  • Small businesses and local government capital projects may face higher upfront costs; impacts on contractors and building owners are expected to be meaningful.

Fiscal and implementation impacts

  • State: Fiscal note estimates MD Labor needs contractual staff — ~$161,000 (FY2026) and ~$93,300 (FY2027) — for rulemaking and implementation. No direct revenue effect.
  • Local governments: Potentially significant increases in capital and operating costs for public building projects; local jurisdictions may incur administrative costs to review waivers and implement changes.
  • Small businesses: Meaningful impacts (higher compliance costs / equipment choices).
  • Broader project effects: If project costs rise materially, fewer capital projects may be funded in a given year.

Definitions / notable technical points

  • Energy efficiency baseline: 2006 IECC, Maryland climate zones, DOE Building Energy Codes Program calculations as of Oct 1, 2025.
  • Solar‑ready: roof condition ensuring at least 40% usable area free of obstructions.
  • Electric‑ready: tangible electrical capacity and space to install electric appliances later.
  • Waiver review: required at MBPS modification and when local amendments change.

Procedural/timeline summary

  • MD Labor to incorporate changes into MBPS by Oct 1, 2025.
  • Efficiency performance thresholds apply by building‑permit application dates beginning March 1, 2027 (phased increases through 2033).
  • Local jurisdictions implement MBPS and may set stricter standards or manage waivers.

This bill centralizes and accelerates Maryland’s move toward building electrification and higher energy‑efficiency standards while preserving limited local flexibility and narrowly defined exemptions.

Compiled from official sources — confirm details with the bill’s official record.

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