Montgomery County Expands Scope of Energy Benchmarking Performance Reporting Requirement, Imposes New Information Disclosure Requirement to Prospective Buyers

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Under recent amendments to Montgomery County’s Energy Benchmarking and Performance Standards Law, residential and non-residential buildings in the County - including buildings in Rockville and Gaithersburg - that are 25,000 gross square feet (GSF) and greater must now benchmark and report building profile and energy data to the Montgomery County Department of Environmental Protection.

Effective Aug. 1, 2022, these building types must begin reporting to the County per the following schedule:

  • Non-Residential Buildings 25,000 to 50,000 GSF and previously exempted buildings such as warehouses and manufacturing facilities
  • Benchmarking report deadline is June 1, 2023
  • Multifamily Residential and Mixed-Use Buildings 250,000 GSF and greater
  • Benchmarking report deadline is June 1, 2023
  • Multifamily Residential and Mixed-Use Buildings 25,000 to 250,000 GSF
  • Benchmarking report deadline is June 1, 2024

Prior to the amendments, only non-residential buildings 50,000 GSF or greater were required to submit a report on energy benchmarking performance.

The amendments also require a seller of a building subject to the reporting requirement to disclose to the prospective buyer that the building is subject to energy performance standards and provide the following information to prospective buyers before execution of a sales contract:

  • the benchmarking property record from the benchmarking tool
  • documentation of data verification
  • performance baseline
  • interim and final performance standards
  • the building performance improvement plan

Failure to provide the requested information to a prospective buyer can result in issuance of a civil citation to the seller.

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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