Montgomery County BEPS: Who Is Actually Covered
Short answer. Montgomery County’s Building Energy Performance Standards (BEPS) apply to most public and privately owned buildings of 25,000 gross square feet and larger. If you own a single-family house, a townhouse or a small building under that size, BEPS does not apply to you. Property managers of covered office, retail and multifamily buildings are the audience here, along with the heat pump installers and mechanical contractors they hire to meet the standard.
Everything on this page comes from the county Department of Environmental Protection (DEP), which runs the program, and the county code it enforces. Where DEP’s pages and older secondary summaries disagree, we follow DEP.
The law and who runs it
BEPS sits in Chapter 18A, Article 6 of the Montgomery County Code, the Building Energy Use Benchmarking and Performance Standards law. The county adopted implementing regulations, transmitted to the County Council as Executive Regulation 17-23, which set how targets are calculated and how improvement plans work. DEP’s BEPS page and its Covered Buildings and Deadlines page are the operational sources of record.
Is my building covered?
DEP’s rule of thumb: most public and privately owned buildings of 25,000 gross square feet and larger must benchmark their energy use every year and meet a performance standard. For this law, a “building” is either a single structure, or two or more structures that share an energy meter, a common heating or cooling system or interior common areas.
DEP keeps a public inventory of covered buildings, as a list and a map. It also says each owner must confirm their own square footage and metering to determine coverage. If you think your building belongs on the list and it is not there, DEP asks you to email [email protected].
Exemptions
An owner can apply for an exemption when:
- The building is under 25,000 gross square feet.
- It is a single structure of two or more units, each under 25,000 square feet, where every unit has its own meters for all energy, its own heating, cooling and hot water systems, and no shared or connected interior space, not even a hallway or stairwell.
- More than half of the floor area is used for public assembly in a building without walls, for industrial uses where most energy goes to manufacturing or process loads, or for transportation, communications or utility infrastructure.
Exemptions are requested from DEP. They are not automatic.
Groups and deadlines
Every covered building falls into a group by size and use. The group sets the baseline years and the two evaluation years. These are DEP’s published dates:
| Group | Buildings | Baseline years | Interim evaluation year | Final evaluation year |
|---|---|---|---|---|
| County | County-owned, 50,000+ sq ft | 2018 to 2022 | 2028 | 2033 |
| Group 1 | Non-residential, 250,000+ sq ft | 2018 to 2022 | 2028 | 2033 |
| Group 2 | Non-residential, 50,000 to 250,000 sq ft | 2018 to 2022 | 2028 | 2033 |
| Group 3 | Non-residential, 25,000 to 50,000 sq ft | 2022 to 2024 | 2030 | 2035 |
| Group 4 | Multifamily, 250,000+ sq ft | 2022 to 2024 | 2030 | 2035 |
| Group 5 | Multifamily, 25,000 to 250,000 sq ft | 2023 to 2025 | 2031 | 2036 |
Each evaluation looks at the full calendar year, reported by June 1 of the following year. DEP’s example: Group 1’s interim evaluation covers 2028 energy use and is reported by June 1, 2029.
New buildings follow the same groups. They start benchmarking after their first full calendar year of occupancy, set their baseline from their first three years of reported data, and then share the interim and final years of their group. The clock does not reset because a building is new.
What a covered building has to do
Benchmark every year. Covered buildings report energy use to DEP by June 1 each year. DEP uses that data to compute the building’s normalized net site energy use intensity (NN EUI): weather-adjusted energy use per square foot, with parking, EV charging and on-site renewable energy credited out.
Meet a target or file a plan. DEP sets three points for each building:
- Baseline: the average of the two highest-energy years in the baseline period.
- Final target: the standard for the building’s property type, blended by floor area for mixed-use buildings. No building’s final target requires more than a 30 percent cut from its baseline.
- Interim target: exactly halfway between the baseline and the final target.
From there, owners choose one of two paths:
| Performance path | Improvement plan (BPIP) path | |
|---|---|---|
| What it involves | Cut energy use, or add on-site renewables, until the building hits its EUI target | Get an ASHRAE Level 2 audit, file a retrofit plan with measures and a timeline, then carry it out |
| What counts as compliant | Actual energy use at or below target in the evaluation year | Carrying out the filed plan on schedule, regardless of the building’s EUI |
| Ongoing | Annual benchmarking | Annual benchmarking plus a June 1 report that scheduled measures were done |
A plan must be prepared by a qualified auditor: a professional engineer, or someone holding a credential DEP lists, such as ASHRAE BEAP or AEE CEA or CEM. The audit must be less than four years old when the plan is filed. Plans are due 90 days before the June 1 report that follows an evaluation year. For specially designated buildings, such as affordable housing, common ownership communities and rent-stabilized multifamily, “cost-effective” measures are those that pay back within 10 years.
DEP’s practical warning is worth repeating: compliance is judged on the evaluation year’s actual energy use. If your deadline year is 2028, upgrades should be finished in 2027 so the savings show up in time.
Penalties
DEP’s enforcement page is explicit. Any violation of the law, including failing to benchmark, missing an interim or final standard, or failing to file a plan, is a civil Class A violation:
- $500 for an initial offense.
- $750 for a repeat offense.
- Each day a violation continues is a separate offense.
Citations can also carry a request for an Order of Abatement, and a court can impose further sanctions if a building still does not comply. DEP notes that state legislation, HB 49, now lets the county impose penalties up to the amounts MDE may impose, but says the County Council has not yet written that change into the county code.
County BEPS versus state BEPS
Maryland also runs a statewide building energy performance standard. DEP states that buildings in Montgomery County are exempt from the state program and follow only the county requirements, because HB 49 exempts counties that run their own programs.
For owners elsewhere in Maryland, the Maryland Department of the Environment’s state BEPS page sets a different threshold: commercial and multifamily buildings of 35,000 square feet or larger must submit an annual benchmarking report and may need improvements to meet performance standards in the 2030s. MDE lists building types that can apply for an exemption, including agricultural, hospital, K-12 school, manufacturing, federally owned and individually designated historic buildings, and buildings smaller than 35,000 square feet. The state program sits within MDE’s broader clean buildings work under the 2022 Climate Solutions Now Act.
What this means for property managers
- Confirm your group in writing. Use DEP’s look-up tool and inventory, and email DEP if your square footage or metering differs from what the inventory shows.
- Work backward from the evaluation year. A 2028 interim year means projects done by 2027.
- Decide early which path fits. If the target is out of reach because of leases, financing or building age, the BPIP path is legitimate, but it needs a qualifying audit first.
- Use the free help. DEP offers a free on-site consultation with a DEP engineer, and the Montgomery County Green Bank’s technical assistance program can support audits and electrification studies.
What this means for contractors
BEPS does not create a new HVAC license. Maryland’s licensing rules still decide who may do the work; see contractor licensing. What BEPS creates is a customer with a fixed deadline and a measured target. A property manager will judge a heat pump proposal by what it does to the building’s NN EUI by the evaluation year, and whether it fits a filed plan, not only by equipment specifications. Proposals that show the expected energy reduction and the schedule against the group’s deadline speak that language.
How to verify this yourself
- DEP: Covered Buildings and Deadlines
- DEP: Building Energy Performance Standards
- DEP: Enforcement
- County Code Chapter 18A, Article 6, on the county code library
If a DEP page changes after this page’s publication date, DEP wins. Tell us and we will correct it. To find mechanical and heat pump contractors near your building, start with Rockville, Silver Spring or Bethesda.
Sources
- https://www.montgomerycountymd.gov/department-environmental-protection/energy/energy-commercial-multifamily/covered-buildings-deadlines
- https://www.montgomerycountymd.gov/green/energy/beps.html
- https://www.montgomerycountymd.gov/department-environmental-protection/energy/energy-commercial-multifamily/enforcement
- https://assets.montgomerycountymd.gov/files/Council_Packet_Building_Energy_Performance_Standards_Regulations.pdf
- https://codelibrary.amlegal.com/codes/montgomerycounty/latest/montgomeryco_md/0-0-0-126820
- https://mde.maryland.gov/programs/air/ClimateChange/Clean-Buildings/Pages/BEPS.aspx
- https://mde.maryland.gov/programs/air/ClimateChange/Clean-Buildings/Pages/Clean-Buildings.aspx