Navigating Maryland’s Climate Solutions Now Act

The Path to Compliance with Fidelity Energy & Sustainability

The State of Maryland is leading the charge in the fight against climate change with its groundbreaking Climate Solutions Now Act. This legislation is setting the stage for a cleaner, greener future by establishing ambitious goals and stringent regulations for building owners across the state. For commercial and multifamily residential buildings 35,000 square feet or larger, understanding and complying with these new regulations is not just necessary—it’s essential.

What is the Climate Solutions Now Act?

The Climate Solutions Now Act is Maryland’s legislative response to the urgent need for climate action. It aims to cut greenhouse gas emissions, with the goal of achieving a 50% reduction by 2030 and reaching net-zero emissions by 2045. The Act also promotes energy efficiency, seeks to emphasize and accelerate the transition to renewable energy sources, and advances environmental justice, ensuring that all communities benefit from the shift towards a more sustainable future.

Maryland’s Building Energy Performance Standards (BEPS)

A key component of this act is the Building Energy Performance Standards (BEPS), which sets out requirements for both new construction and existing buildings to meet energy efficiency targets. BEPS outlines clear guidelines for compliance, along with penalties for those who fail to meet the standards.

Steps to Compliance

To comply with Maryland’s BEPS, building owners are required to begin benchmarking their energy use data by 2025. This data must be reported to the Maryland Department of the Environment (DOE) through the EPA ENERGY STAR Portfolio Manager tool, a critical first step in assessing and improving building performance. Compliance deadlines are set in two key phases: by 2030, buildings must meet interim standards for both direct greenhouse gas (GHG) emissions and site energy use intensity (EUI). The journey towards full compliance continues through 2040 and beyond, by which time buildings must meet the final, more stringent standards.

Failure to meet these benchmarks can lead to significant financial penalties. Starting in 2030, any excess emissions will incur a fee of $230 per metric ton of CO2, with the fee increasing by $4 per metric ton each subsequent year. This escalating penalty underscores the importance of early action and sustained effort in achieving compliance with these new standards.

Why Start Now?

Building owners should take immediate action to prepare for Maryland’s BEPS, as the deadline for submitting benchmarking data for 2024 is fast approaching—June 1, 2025. The energy performance targets set for 2030 are particularly stringent, and older buildings may struggle to meet these standards without significant upgrades or operational changes. Starting the process early is crucial to avoid costly penalties and to ensure a smooth transition to compliance.

The Path to Compliance

To meet the compliance requirements of Maryland’s BEPS, start by analyzing your building’s current carbon emissions and conducting a thorough audit to identify opportunities for reducing fossil fuel use, electrification, and integrating renewable energy solutions. Next, develop an Implementation Plan that evaluates energy conservation opportunities, costs, savings, incentive programs, grants, and return on investment (ROI). Finally, implement the plan incrementally, using technology solutions to streamline benchmarking and monitor progress in real-time, ensuring your building meets Maryland’s energy performance targets.

Partner with Fidelity Energy & Sustainability

At Fidelity Energy & Sustainability, we are committed to helping you navigate the complexities of Maryland’s Climate Solutions Now Act and BEPS. With our expertise, we can help you build a roadmap towards compliance that is both financially responsible and aligned with your sustainability goals. Let us be your partner in transforming your building into a model of energy efficiency and environmental stewardship.

For more information or to start your compliance journey, contact us today.

About Fidelity Energy & Sustainability

Fidelity Energy & Sustainability (FES) is a national energy and sustainability initiative that will revolutionize how energy-intensive facilities are transformed into sustainable environments. Solutions will provide measurable results for energy cost savings and greenhouse gas reduction for buildings in commercial, industrial, and institutional markets.

FES combines technical excellence with energy market knowledge that leads to extraordinary results. We accomplish this through traditional Energy-Efficiency Projects, Retro-Commissioning, HVAC & Controls Optimization, Electrification Initiatives, Decarbonization Planning, Renewable Energy Systems, Environmental, Social, and Governance (ESG) Master Planning, and Energy-as-a-Service (EaaS) Project Development.