If you own or manage a building such as a warehouse, office, apartment complex, or retail store that is 35,000 square feet or larger, a new energy-reporting requirement is now in effect as of September 2025. Maryland is implementing Building Energy Performance Standards (BEPS) as required under the Climate Solutions Now Act of 2022. The goal is for covered buildings to efficiently ​achieve net-zero direct greenhouse gas emissions by 2040. With more than 9,000 buildings impacted across the state, now is the time to understand what’s required.  

What is BEPS? 

Even if a building is primarily electric, it can still produce emissions if it has on-site combustion equipment. Direct emissions typically come from fossil fuel-powered systems such as boilers, furnaces, or backup generators. To reduce these direct, on-site emissions and lower greenhouse gas production, Maryland passed new BEPS regulations to help protect the environment. 

BEPS requires building owners to report their 2024 benchmarking data—including electricity, natural gas, and other energy sources your building consumes—to the Maryland Department of the Environment (MDE) using a free online tool, ENERGY STAR® Portfolio Manager. This interactive platform allows business owners to record the baseline energy use for any type of building, helping track and optimize energy usage. 

From 2025 to 2030, building owners must submit annual energy benchmarking reports—but that’s not all. In 2030, BEPS rules will introduce phased emissions targets: 

• By 2030, a 20% reduction in net direct greenhouse gas emissions
• By 2035, a 40% reduction
• By 2040, net-zero emissions 

If a building exceeds these limits, owners will need to either implement upgrades or pay a compliance fee. Benchmarking now gives you a head start—helping you understand your building’s energy use and make cost-effective improvements before the stricter targets take effect.  

NOTE: Additional details can be found at the BEPS homepage which includes exemptions, such as historic buildings, elementary schools, and hospitals. Additionally, MDE provides instructions for how to apply if your building qualifies.  

Why It Matters

Benchmarking is more than compliance—it’s a strategic tool for building owners to make data-driven decisions that improve operations, reduce costs, and enhance asset value. It also boosts occupant comfort and reveals how spaces are used. 

• Track Total Energy Use: The Portfolio Manager tool can be used to collect comprehensive energy data across systems and operations. 

  Example:   A seafood exporter can monitor energy use in refrigeration and processing equipment, identify inefficiencies, and pursue incentivized upgrades.

  
   

• View and Manage Your Portfolio: Benchmarking across buildings helps spot waste and prioritize upgrades. 

  Example: A property developer can identify outdated HVAC or lighting systems, invest in improvements, and attract tenants.

• Ensure Complete Data Coverage: Accurately match utility meters to building units for a full energy profile.

  Example: A building owner can link each office to its meter, revealing high-consumption areas and guiding smarter energy decisions.

• Assess Whole-Building Performance: Compare your facility’s energy use to similar buildings to uncover savings opportunities. 

  Example: A retail chain can benchmark stores to identify top and bottom performers, directing efficiency upgrades across locations.

How Your Business Will Benefit 

Benchmarking energy use and planning upgrades ahead of the 2030 BEPS targets can yield significant operational and financial returns. These improvements support goals like reducing overhead, boosting sustainability, and enhancing brand reputation. Many industries also qualify for utility incentives, rebates, and technical support. Industry examples include: 

• Hospitality: Hotels can upgrade HVAC systems, windows, and insulation.
• Office-Based Companies: Large offices can install occupancy-based lighting to cut energy waste.
• Higher Education: Colleges can retrofit older buildings with electric heat, improved air systems, and automation. 

The Cost of Avoidance 

Noncompliance with BEPS risks financial penalties and forfeits opportunities to cut energy costs and improve operations. Programs such as EmPOWER Maryland, offered through utilities such as Delmarva Power, have supported energy-saving efforts for businesses statewide since 2008. 

The Bigger Picture 

The BEPS regulation is part of Maryland’s broader effort to improve energy efficiency in buildings and reduce harmful greenhouse gas emissions. By meeting these standards, building owners can reduce harmful greenhouse gas emissions, improve indoor comfort, and lower long-term energy costs. Now is the time to assess your building’s performance, explore upgrade opportunities, and take advantage of available resources. Don’t wait—start planning today to meet the 2040 net-zero emissions target and be part of Maryland’s energy transformation. 

*To ease the transition and give building owners time to adapt, MDE will consider all initial benchmarking reports submitted by Sept. 1, 2025, to be compliant with the deadline.*