What Building Owners Should Know About The Washington State Clean Building Performance Standard

As energy costs continue to rise, prioritizing sustainability and energy efficiency becomes increasingly important. Washington State’s Clean Buildings Performance Standard (CBPS) reflects a significant change in the management of commercial and multifamily properties. For owners who rent to tenants, it is crucial to understand this standard and effectively communicate with occupants to ensure compliance and protect your investment.

WHAT IS THE CLEAN BUILDINGS PERFORMANCE STANDARD, AND WHO DOES IT IMPACT?

The Clean Building Performance Standard (CBPS) is a law in Washington state aimed at enhancing energy efficiency and decreasing greenhouse gas emissions in large commercial and multifamily buildings. The law applies to Tier 1 covered buildings that are buildings 50,000 square feet and larger. In 2022, the law expanded to include buildings larger than 20,000 square feet and multifamily residential buildings, referred to as Tier 2 covered buildings.

The CBPS requires Tier 1 and Tier 2 covered building owners to benchmark their buildings' energy use and develop an energy management plan, as well as an operations and maintenance program. Tier 1 buildings are required to meet an energy performance metric by either:

• Meeting the energy use intensity target set by the state, or
• Meeting the investment criteria by conducting an ASHRAE level 2 energy audit and implementing all cost-effective energy efficiency measures identified by a life cycle cost analysis

Tier 1 compliance dates are based on the building size and begin in 2026, spanning through 2028. The Tier 2 reporting deadline is July 1, 2027.

You can find more information on the requirements at commerce.wa.gov/cbps.

BENEFITS: LOWER UTILITY COSTS AND MORE

The CBPS is designed to produce measurable benefits. Implementing energy efficiency upgrades isn’t just about compliance. The benefits include:

• Lower operating costs: Energy-efficient buildings can significantly reduce utility bills, which benefits both owners and tenants. Energy-efficient measures such as LED lighting, better controls, heat-pump HVAC, and water heating reduce energy consumption, usually lowering monthly utility bills for both owners and tenants. These savings can offset project costs and improve the property’s net operating income.
• Increase property value and marketability: Efficient buildings are increasingly attractive to investors, lenders, and renters.
• Health, comfort, and resilience co-benefits: Many upgrades improve indoor air quality and thermal comfort, reduce risk from gas leaks, and create job opportunities in the energy efficiency sector.
• Access to incentives: Both Tier 1 and Tier 2 buildings have access to the Early Adopter Incentive Program and other Commerce grants, which can offset compliance costs.

INCENTIVES AND SUPPORT RESOURCES FOR BUILDING OWNERS

Two early adopter incentive programs are available for Tier 1 and Tier 2 building owners. The Tier 1 Early Adopter Incentive (EAI) Program can pay up to $2 per square foot with an enhanced payment to eligible building owners. For Tier 2 building owners, the EAI pays up to $0.30 per square foot with an enhanced payment to eligible building owners. You can find information on the EAI and other funding opportunities at the Clean Buildings Incentive webpage.

Visit the Clean Buildings Performance Standard webpage. The website hosts a robust library of training materials, guidance documents, and various free support, including:

• The BEACON Fellowship Project for building owners who lack staff capacity
• Clean Buildings Office Hours
• Free on-demand qualified energy manager training
• Qualified Person and Qualified Energy Auditor directory
• And much more

TENANT COMMUNICATION BEST PRACTICES

Because many multifamily building owners must make changes that affect tenants, clear communication is critical. Some useful tips to consider include:

• Start early and be transparent. Inform tenants what the CBPS is, why the building is making changes, and the estimated timeline for audits, upgrades, and any temporary disruptions.
• Host a tenant information session.
• Highlight tenant protections and affordability measures. If upgrades shift energy cost or billing approaches, explain how you minimize hardships.
• Offer communication channels for feedback and rapid response.
• Celebrate wins and keep tenants updated.

FINAL THOUGHTS

Washington’s Clean Buildings Performance Standard is a great chance for building owners to update their properties, save on operating costs, and increase the value of their investments. While meeting these standards requires careful planning, proper documentation, and sometimes upgrading equipment or operations, the long-term financial and environmental advantages are worth the initial effort.

Building owners who act quickly can manage upgrades proactively. They can reduce risks and take advantage of state funding that helps cover costs. There are also clear deadlines and many technical support resources available.

For landlords, keeping open communication with tenants is essential. Engaging tenants early, explaining the goals and benefits of the program, and seeking their input can help make the process smoother and build trust. These improvements not only aid in meeting compliance but also increase comfort, improve indoor air quality, and benefit the community by reducing energy waste and lowering greenhouse gas emissions.

For the latest program details, incentive availability, and compliance timelines, connect with the Clean Buildings Team or sign up for the Clean Buildings Bulletin by visiting commerce.wa.gov/cbps.

Formal legal advice and review is recommended prior to selection and use of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific circumstance. The material contained and represented herein, although obtained from reliable sources, is not considered legal advice or to be used as a substitution for legal counsel.