Developers, environmentalists voice thoughts on proposed energy standards

New regulations aim to address county climate goals

December 1, 2023 10:16 p.m.

The time for public input on County Executive Marc Elrich’s proposed Building Energy Performance Standards (BEPS) closed this week, and environmentalists and developers have been vocal about their support of or opposition to the new rules.

“Efficient building electrification will be one of the most effective ways to reduce energy demand and carbon pollution from the built environment as the County tackles its ambitious climate change goals,” Elrich wrote in a press release announcing the standards earlier this month.

BEPS requires buildings to reach a certain level of energy efficiency with the aim of reducing carbon emissions, according to the Montgomery County Department of Environmental Protection.

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The proposed standards were published on Nov. 2 in the county’s register. The regulation comes following legislation passed by the Montgomery County Council in April 2022. The standards were developed in partnership with a community advisory committee, appointed by the council.

The requirements build on a previously existing benchmarking law that applied to county and private-owned nonresidential buildings 50,000 gross square feet and larger. The biggest change is that now residential buildings will have to comply.

Four different types of buildings must comply with BEPS – the buildings previously covered by the benchmarking law, county and privately-owned nonresidential buildings that are 25,000 to 50,000 gross square feet large, residential buildings 250,000 gross square feet and larger and residential buildings 25,000 to 250,000 gross square feet.

Each type of building is subject to a different standard based on the proposed chart, however, the goal is for all buildings to reach the same standard of compliance when it comes to energy efficiency.

This means some buildings may have to upgrade to more energy-efficient infrastructure to remain compliant. If they don’t, they could be fined thousands of dollars.

“This is going to have devastating consequences on the county’s inventory of naturally occurring affordable housing, because of the natural tension there between how much it costs to comply with the standards, and how much of it will have to be borne by the tenants,” said Brian Anleu, the Apartment and Building Association of Greater Washington Vice President of Government Affairs for Maryland.

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But clean energy advocates say these standards are needed to address the county’s climate goals.

“Moving forward on the County’s BEPS regulations is a critical step in addressing our climate emergency,” said Montgomery County Climate Change Officer Sarah Kogel-Smucker said in the release. “Emissions from the built environment make up 50% of our community-wide greenhouse gas inventory.”

Anleu said that he understands that Elrich’s “hands are tied” when it comes to some parts of the legislation, since the council voted to pass the bill.

“It’s important for the council to slow down, consider and have a full understanding of what are the cost implications here. And what are the potential funding sources that are out there to help alleviate some of those costs?” Anleu said. “We need to slow down fully, appreciate how much this is going to cost, what the impact will be dependent on the office size, and the impact it will have on a struggling office market.”

According to DEP, the Montgomery County Green Bank will be offering services to help building owners assess energy performance and connect them to potential financing incentives. Some options include the Commercial PACE financing program, the Maryland Energy Administration, as well as the EmPOWER Maryland program, which all aim to help lessen the financial burden of upgrading to more energy efficient infrastructure.

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The next step for BEPS will be a vote by the County Council, which has not yet been scheduled.

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