Don't Miss the Deadline — or the Money: Washington's Clean Buildings Performance Standard
This article focuses on Washington state requirements that are relevant to multifamily rental housing properties.
In 2019, Washington state enacted what is known as the Clean Buildings Performance Standard (CBPS), which was the first statewide building performance standard in the country.
In 2022, SB 5722, also known as the “expansion law,” was enacted, which, relevant to this article, expanded the scope of the CBPS to include any multifamily residential building with a gross floor area that exceeds 20,000 square feet, excluding parking garages and individual dwelling units in condominiums.
As of May, 2026, the Department of Commerce is updating the rules for the CBPS, and some updates may impact multifamily properties. Be sure to check the CBPS website for current information and requirements: commerce.wa.gov/cbps/.
COMPLIANCE REQUIREMENTS
The legal obligations of the CBPS fall to the “building owner,” defined as the individual or entity possessing title. Notice letters from the Department of Commerce were mailed to building owners in 2025.
There are various potential exemptions that building owners can apply for, including (among others) buildings with reduced physical occupancy, buildings that are mainly manufacturing or industrial, agricultural structures, those pending demolition, and buildings that meet various conditions of financial hardship. The burden is on building owners to determine if an exemption may apply and to submit documentation no later than 180 days (approximately six months) prior to the compliance date.
Multifamily buildings that do not qualify for an exemption must complete three key tasks by July 1, 2027:
- Benchmark at least 12 consecutive months of building energy use data (using Energy Star Portfolio Manager).
- Create an energy management plan (EMP).
- Develop and implement an operations and maintenance program (O&M).
Compliance will be on a five-year cycle.
Unlike larger commercial buildings that also fall within the scope of the CBPS, multifamily buildings are not, for this first compliance cycle, required to meet an Energy Use Intensity (EUI) target, though they may be for future compliance cycles. Recent updates to the CBPS allow utilities to provide aggregate energy use for covered buildings.
Failure to comply with CBPS requirements can result in fines of no more than $0.30 per square foot. Commerce has produced numerous support tools and resources, including a penalties calculator, which can be accessed via Commerce’s Document Library: commerce.wa.gov/cbps/cbps-support-and-resources/cbps-documents/. Penalties may not be passed along to tenants, as long as tenants are providing access to utility usage data, physical spaces in the buildings, and being responsive to needs from building owners to facilitate compliance with the standard.
DON’T LEAVE MONEY ON THE TABLE
Tier 2 buildings are eligible for the Early Adopter incentive, which has a base rate of $0.30 per square foot of covered gross floor area. The base rate Early Adopter Incentive only requires early compliance with CBPS requirements – nothing extra. Subsequently, an Enhanced Incentive of up to $0.75 per square foot was added for multifamily building owners who commit to anti-displacement measures (sign an Anti-Displacement Agreement).
Other incentives and grants may be available to eligible properties. Building owners can review the CBPS Grants and Incentives website for more information, including the Tier 2 Incentive Guidebook: commerce.wa.gov/cbps/cbps-grants-incentives/
TENANT ENGAGEMENT AND LEASES ARE KEY TO COMPLIANCE
For multifamily apartment rental units, floor area calculations for purposes of CBPS compliance include the living space in each individual rental unit. This means that compliance with the CBPS presents an opportunity for owners and tenants to work together.
To facilitate compliance, building owners should educate tenants on the legal requirements and how sustainability can produce healthier environments and reduced utility costs. Building owners may also want to consider updating their lease language to include key compliance and sustainability aspects, such as data confidentiality, unit access, updated rules and regulations, etc. Building owners may also want to update their standard processes for turnover of individual rental units to include efficiency upgrades that support current and expected future CBPS requirements.
HOW TO GET STARTED
The first compliance deadline is July 1, 2027 – and it can take time to complete the necessary steps. Don’t delay!
Building owners who did not receive a notification letter from Commerce, or those who are unable to locate their letter, can fill out the appropriate Customer Support Form via this webpage: commerce.wa.gov/cbps/portal. Building owners need the unique code from the letter to access the Clean Buildings Portal, which is where owners can confirm or deny ownership and confirm or correct information regarding their building(s). Given the potential impacts of non-compliance, it is important that owners timely correct any inaccuracies.
Disclaimer: this article is for educational and informational purposes only; it is not legal advice and does not create an attorney-client relationship.
Need support with compliance? At Climate Aligned Law PLLC, we help building owners assess their options, including analysis of whether buildings are in scope and any potentially applicable exemptions; identification of relevant timelines and documentation requirements; and guidance regarding paths to compliance and related strategic decisions.
We also revise and update leases to align with Clean Building Performance Standard requirements.
Find us at www.climate-alignedlaw.com or nicole@climate-alignedlaw.com.
RESOURCES:
Department of Commerce, CBPS Tier 2 compliance website: commerce.wa.gov/cbps/tier-2-compliance/
Smart Buildings Center, Clean Buildings Performance Standard Helpdesk: smartbuildingscenter.org/resources/clean-buildings-performance-standard-2/
The City of Seattle has enacted a Building Emissions Performance Standard, not covered in this article. More information here: seattle.gov/environment/climate-change/buildings-and-energy/building-emissions-performance-standard
Nicole DeNamur, J.D., WELL AP and Faculty, Hon. AIA, LEED Green Associate, LFA. Nicole is the owner of Climate Aligned Law, a climate-focused law firm with a built environment focus — from design and construction through development. Her practice combines deep technical fluency in sustainability with hands-on legal experience, bringing both dimensions into alignment to drive sustainable outcomes while managing risk. Contact Nicole at: nicole@climate-alignedlaw.com and climate-alignedlaw.com