Annapolis Building Performance Standards: A Compliance Guide for Businesses

Understanding Annapolis’s Commitment to Sustainable Buildings

Annapolis is committed to reducing greenhouse gas emissions and improving building efficiency through its Building Performance Standards (BPS). As part of the city’s Community Action Plan, these regulations set clear energy and emissions benchmarks that commercial and multifamily buildings must meet within defined timeframes.

The goal is to reduce energy waste, cut carbon emissions, encourage electrification, and promote renewable energy adoption. Businesses operating in Annapolis must take action to comply with these regulations or face potential penalties.

If your company owns, operates, or manages a building in Annapolis, understanding and preparing for these requirements is essential.

What Is a Building Performance Standard (BPS)?

A Building Performance Standard (BPS) is a regulatory framework that mandates specific energy and emissions reduction targets for buildings. Unlike voluntary energy efficiency programs, BPS regulations require businesses to take action to improve energy performance.

Annapolis’s BPS Requirements

• Energy efficiency targets that limit energy use per square foot.
• Greenhouse gas (GHG) emissions reductions to lower the city’s carbon footprint.
• Electrification initiatives to transition from fossil fuels to electric-powered systems.
• Renewable energy adoption to increase reliance on clean energy sources.
• Water efficiency improvements to reduce waste and promote conservation.

Compliance deadlines require businesses to gradually meet efficiency goals over time. Failure to comply may result in fines, operational restrictions, or increased costs.

Who Must Comply With Annapolis's BPS?

Annapolis’s BPS applies to commercial and multifamily buildings. Business owners, property managers, and facility operators should prepare for compliance if they own or lease space in:

• Office buildings.
• Retail stores.
• Hotels and lodging facilities.
• Multifamily residential properties.
• Industrial and institutional buildings.

Each property type must report energy usage and make necessary improvements to meet city-mandated performance benchmarks.

Steps To Ensure Compliance With Annapolis’s BPS

1. Benchmark and Track Energy Use

Annapolis requires buildings to benchmark energy performance by tracking consumption, emissions, and efficiency metrics. This data helps businesses:

• Identify inefficiencies.
• Establish compliance baselines.
• Plan necessary upgrades.

Regular benchmarking allows property managers to track progress toward energy reduction goals and adjust strategies as needed.

2. Implement Energy Efficiency Upgrades

Reducing energy consumption is a key compliance requirement. Businesses can improve efficiency by:

• Upgrading to high-efficiency HVAC systems.
• Installing LED lighting and smart controls.
• Improving insulation and window glazing.
• Using automated building management systems.

Efficiency upgrades not only support compliance but also lower utility costs.

3. Electrify Building Systems

Annapolis’s BPS encourages businesses to phase out fossil fuels and adopt electric heating, cooling, and water systems. Businesses can transition by:

• Replacing gas furnaces with electric heat pumps.
• Upgrading to electric water heaters.
• Installing electric cooking and industrial equipment.

Electrification supports the city’s goal of 100% clean energy adoption and improves building efficiency.

4. Integrate Renewable Energy Solutions

To meet emissions reduction targets, businesses must increase on-site renewable energy production or procure clean energy. Options include:

• Installing solar panels to generate power.
• Purchasing renewable energy credits (RECs).
• Participating in community solar programs.

Renewable energy adoption reduces carbon emissions and provides long-term financial benefits.

5. Optimize Demand & Load Management

Demand management strategies help businesses meet BPS energy limits while minimizing costs. Companies can:

• Automate energy use during off-peak hours.
• Adjust operations with real-time load monitoring.
• Participate in Demand Response Programs for financial incentives.

Effective load management ensures buildings consume energy efficiently without exceeding performance targets.

6. Submit Compliance Reports & Meet Deadlines

Annapolis mandates annual energy performance reporting to track BPS compliance. Businesses must provide:

• Energy and emissions data.
• Renewable energy usage reports.
• Documentation of efficiency upgrades.

Accurate reporting is critical to maintaining compliance and avoiding penalties.

Why Businesses Should Comply With Annapolis’s BPS

Cost Savings From Energy Efficiency

Upgrading building systems reduces long-term energy expenses. High-performance buildings cost less to operate and qualify for utility incentives and tax credits.

Avoiding Regulatory Penalties

Failure to comply with BPS regulations can result in financial penalties and increased operating costs. Taking early action prevents last-minute compliance issues.

Strengthening Sustainability Leadership

Complying with Annapolis’s BPS positions businesses as environmental leaders, helping companies:

• Meet ESG (Environmental, Social, and Governance) goals.
• Improve brand reputation.
• Attract eco-conscious customers and tenants.

Sustainability leadership also provides a competitive advantage in attracting investors and business partners.

Overcoming Compliance Challenges

Managing Upfront Costs

While efficiency upgrades require investment, businesses can offset costs through:

• Federal, state, and local incentives and tax credits.
• Utility rebates for efficiency improvements.
• Long-term energy savings from reduced consumption.

Navigating Regulatory Complexity

Energy performance tracking and compliance reporting can be complex. Businesses should:

• Use automated energy monitoring tools.
• Consult with sustainability and compliance experts.
• Develop a long-term energy reduction strategy.

Adopting New Technologies

Shifting from gas-powered to electric building systems takes planning. Businesses can transition by gradually replacing equipment and integrating smart automation tools.

Preparing For Annapolis’s BPS Compliance

Annapolis’s Building Performance Standards will shape how commercial and multifamily buildings operate in the coming years. Businesses must act now to:

• Benchmark energy performance.
• Invest in efficiency upgrades.
• Transition to clean energy sources.
• Meet reporting and compliance deadlines.

Early compliance ensures cost savings, regulatory adherence, and environmental leadership. By proactively managing energy performance, businesses can stay ahead of the city’s evolving sustainability requirements.