Bill
SB 807
Allows Maryland counties to adopt local building energy standards at least as stringent as state BEPS, with MDE approval and local enforcement.
Status
- Introduced: February 21, 2025 (Sen. Kramer)
- Hearing scheduled: February 27, 2025 at 1:00 p.m.
- Effective date (if enacted): October 1, 2025
- Companion: HB 272
Purpose
SB 807 authorizes Maryland counties to develop and adopt local building energy performance standards (LBEPS) that are equal to or more stringent than the statewide Building Energy Performance Standards (BEPS) developed by the Maryland Department of the Environment (MDE), subject to MDE approval. It clarifies enforcement authority for counties, allows counties to use alternative compliance pathways (ACPs) and collect associated fees/penalties, and exempts buildings subject to approved LBEPS from the statewide BEPS.
Key provisions
- County authority: A county may adopt LBEPS that are at least as stringent as MDE’s BEPS if the LBEPS are approved by MDE.
- MDE approval criteria: MDE may approve LBEPS that are either (a) inclusive of or more stringent than statewide BEPS, or (b) designed to achieve greater aggregate energy and greenhouse gas (GHG) reductions by 2040 than the statewide BEPS.
- Enforcement and compliance: A county administering approved LBEPS may enforce them and establish ACPs for meeting energy use intensity (EUI) and direct GHG emissions requirements.
- Fees and penalties: Counties may impose and collect ACP fees and penalties in the same amount and manner permitted to MDE under current law.
- Data sharing: Counties administering LBEPS must submit to MDE any emissions data reported to the county under the local standards.
- Single standard per building: A covered building that is subject to approved county LBEPS is not required to comply with the statewide BEPS.
Context and related rules
- SB 807 operates within the framework of the Climate Solutions Now Act (CSNA) requirements: statewide BEPS are designed to achieve a 20% reduction in net direct GHG emissions by Jan 1, 2030 (vs. 2025) and net-zero direct GHG emissions by Jan 1, 2040 for “covered buildings.”
- “Covered building” under CSNA: commercial or multifamily (or State‑owned) buildings ≥35,000 gross sq ft, excluding historic buildings, K–12 schools, manufacturing, and agricultural buildings.
- MDE finalized BEPS-related regulations effective Dec 23, 2024; those regulations currently do not include EUI targets.
Fiscal and practical impacts
- State: MDE can review/approve LBEPS within existing resources. State-owned buildings located in counties adopting LBEPS could face increased costs to comply with local standards. Special fund revenues for the Maryland Clean Air Fund may decrease beginning ~FY2031 if ACP fee revenue flows to counties instead of the State.
- Local: Counties adopting LBEPS may see potentially significant increases in local revenues from ACP fees/penalties and will incur costs to develop, implement, and enforce LBEPS. Locally owned buildings may face compliance costs.
- Small businesses and building owners: Potential meaningful effects depending on local requirements and whether owners control energy systems; ACPs offer a fee-based compliance option.
Example note
- Montgomery County adopted its own BEPS in February 2025 and is cited in the fiscal note as likely to seek MDE approval under this bill.
What to watch
- Which counties apply for and receive MDE approval
- Design of local ACPs and fee levels (must be comparable to MDE’s authority)
- Treatment of state‑owned buildings and the timing of revenue shifts from state to local funds (possible impact beginning FY2031)
Compiled from official sources — confirm details with the bill’s official record.
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