Big building owners are suing the state of Maryland after it placed new regulations that aim to reduce carbon emissions.
According to the Baltimore Banner, Maryland is trying to achieve net-zero greenhouse gas emissions by 2045. The goal would not only require the transportation sector and power to largely reduce its emissions, but also significant retrofitting would need to be done by commercial and residential buildings, potentially costing more than $14 billion. Currently, fuel and electricity use in buildings drive a third of all greenhouse gas emissions in the state. Properties covered by the Building Energy Performance standards made up 7 percent of all Maryland greenhouse gas emissions in 2020.
The lawsuit could play a negative role in the state’s sustainability plan as some building owners believe the requirements are an “overreach” by state regulators, the Baltimore Banner reports. Plaintiffs include NAIOP, Maryland Building Industry Association, the Maryland Multi-Housing Association, the Building Owners and Managers Association of Greater Baltimore, the utility Washington Gas Light Company, the Leisure World retirement community in Silver Spring and condo associations in Montgomery County.
While many buildings in the state are currently already in compliance with the new regulations, the lawsuit argues that the standards conflict with a 1970s federal law that already regulates fossil fuel energy use in properties. A statue allows states to preempt only in narrow exceptions. While the state insists that the regulations will save energy and money down the line, building owners believe the requirements are bad for citizens as they restrict consumer choices while creating new demands. The lawsuit also argues that the regulations exacerbate the housing crisis by pushing up home and energy prices while straining the power grid.
The new building emissions standards took effect in December 2024 and apply to buildings of at least 35,000 square feet, the Baltimore Banner reports. Under the rule, buildings would need to reduce greenhouse gas emissions by 20 percent in the next five years. Buildings that don’t meet the requirements would be forced to pay penalties of $230 for every metric ton of carbon dioxide they emit over their limits. According to the Baltimore Banner, building owners will have to report emissions data to MDE starting in 2025.
Mackenna Moralez is the associate editor of the facilities market.
