The California Institute for Energy and Environment (CIEE) is partnering with the Maryland Department of the Environment (MDE) to evaluate how building energy policies affect emissions, energy use, and costs across Maryland’s existing building stock. Through detailed modeling and cost-benefit analysis, CIEE Associate Director and Program Director of Enabling Technology Development Dr. Therese Peffer, along with Josh Kace, Dr. Travis Walter, and Haley Tong, are helping inform the implementation of Building Energy Performance Standards (BEPS), a key policy mechanism created under the state’s Climate Solutions Now Act of 2022.
Under the law, large commercial and multifamily buildings must reduce their direct greenhouse gas emissions by 20 percent by 2030 and reach net-zero direct emissions by 2040. Achieving these targets requires policies that are both environmentally effective and economically practical for building owners and occupants. CIEE’s role is to help MDE evaluate how different policy pathways could affect building performance, costs, and emissions outcomes across the state.
Maryland’s efforts reflect a growing national trend toward decarbonizing the built environment. While traditional building codes primarily target new construction, BEPS addresses the energy use of existing structures. Washington state led the way in 2019 by passing the first statewide BEPS in the country, and since then, a National BEPS Coalition of over 30 state and local governments—including Colorado, Oregon, and major cities like New York and Seattle—has formed to accelerate these policies nationwide.
Modeling Policy for Building Decarbonization
The core of CIEE’s new project for MDE is an analysis that will provide regulators with clearer insight into the potential economic and climate impacts of different BEPS compliance approaches. Using real building benchmarking data and scenario-based modeling, CIEE researchers will compare the effects of emissions-based targets, energy use intensity (EUI) targets, and hybrid frameworks on emissions reductions, energy savings, peak demand, and estimated retrofit costs.
The work is structured into two main efforts. In the first phase, CIEE’s researchers will test how factors such as building age, region, and building type influence performance and cost-effectiveness across different compliance pathways. The results will inform updated statewide energy and emissions estimates and provide the analytical foundation for BEPS policy decisions.
The second phase focuses on improving how BEPS policies account for energy uses in specialized buildings. Some buildings, such as hospitals, laboratories, and assisted living facilities, often rely on energy-intensive equipment such as steam sterilization systems that are essential to their operations. CIEE’s team will develop standardized energy and emissions deduction frameworks for these unique needs, along with methods to exclude energy consumption from manufacturing activities or secure government facilities located within these specialized buildings. These adjustments will help ensure that building performance standards measure energy use accurately while avoiding unintended penalties for necessary operational energy demand.
Together, these efforts will produce scenario modeling results, cost-benefit analyses, and a final technical report to help Maryland refine its building energy standards. Ultimately, the goal is to advance long-term decarbonization while keeping the state’s building stock functional and affordable. Reflecting on the collaboration, Peffer stated: “I am thrilled to be working with and learning from Travis, Josh, Haley and others on this project, and look forward to seeing BPS expand here in California!”