As Washington state works to reduce its greenhouse gas emissions, one of its most transformative pieces of legislation is The Washington Clean Buildings Act. Passed in 2019 and expanded in 2022, the Act targets energy efficiency in commercial and multifamily buildings. These sectors contribute 27% of the state’s total emissions. This legislation introduces performance-based energy standards designed to help the state meet its long-term climate goals while reducing operational costs for building owners.

This blog will provide an overview of the Act, explain its impact on commercial buildings, and outline the financial rebates available to encourage compliance.

Overview of The Washington Clean Buildings Act

The Washington Clean Buildings Act was first introduced in 2019 through HB 1257. It established mandatory energy performance standards for non-residential buildings over 50,000 square feet, with compliance beginning in 2026. In 2022, the law was expanded under SB 5722 to include a second tier of covered buildings, those over 20,000 square feet, including multifamily housing.

The Washington State Department of Commerce was tasked with developing the Clean Buildings Performance Standard (CBPS), incorporating ASHRAE Standard 100-2018 as the baseline. Through multiple workshops and stakeholder input, the state developed Energy Use Intensity targets (EUIt) tailored to Washington’s building stock. These targets are based on 15% reductions from the 2009–2018 average energy use for similar building types.

By focusing on existing buildings, which typically have life spans of 50 to 100 years, the Act aims to make a meaningful and cost-effective impact on the state’s overall emissions.

New CBA Mandates

The Clean Buildings Act divides covered buildings into two tiers based on size:

Tier 1 (50,000 sq. ft. and up)
These buildings must:

• Benchmark energy use.
• Implement an Operations & Maintenance (O&M) program.
• Create an Energy Management Plan (EMP).
• Meet performance metrics through:
  1. Achieving the prescribed EUIt for their building type, or
  2. Following the “investment criteria” pathway—completing an energy audit and implementing all cost-effective energy efficiency measures.

Reporting deadlines for Tier 1 buildings:

• June 1, 2026: Over 220,000 sq. ft.
• June 1, 2027: Between 90,001 and 220,000 sq. ft.
• June 1, 2028: Between 50,001 and 90,000 sq. ft.

Tier 2 (20,000–50,000 sq. ft. and multifamily over 20,000 sq. ft.)
Tier 2 buildings are required to:

• Benchmark energy use.
• Implement an O&M program.
• Create an EMP.

However, Tier 2 buildings are not currently required to meet an energy performance target. Their compliance deadline is July 1, 2027.

Additionally, legislation passed in 2023 (HB 1390) adds requirements for decarbonizing district energy systems. Publicly owned systems must submit 15-year decarbonization plans that include central plant upgrades and conservation strategies for connected buildings.

Financial Rebates Through the Act

To ease the financial burden of compliance and promote early action, the state offers several incentive programs.

Tier 1 Early Adopter Incentive Program
Eligible building owners who comply early with the CBPS can receive:

• A base incentive of $2.00 per sq. ft. (excluding parking and unconditioned space).
• An additional $0.05 per kBTU saved beyond a 15 EUI reduction.
• Incentives are capped at 50% of the cost of implementing energy efficiency measures.
• Participating buildings must be above their EUIt by 15 points or more before upgrades and must achieve compliance afterward.

Clean Buildings Performance Grants Program
Over $40 million in funding has been allocated to support:

• Tier 1 privately owned buildings,
• Tier 1 and Tier 2 public buildings.

Grant funds can be used for:

• Energy efficiency retrofits,
• Energy audits,
• Benchmarking services,
• EMP and O&M program development,
• Professional accounting services tied to compliance.

Tier 2 Additional Incentives
The 2022 expansion included an incentive pool of $150 million for Tier 2 buildings, offering payments of $0.30 per sq. ft. to offset the costs of benchmarking and planning. While Tier 2 buildings aren’t yet required to meet performance metrics, this funding encourages proactive energy management.

Final Thoughts

The Washington Clean Buildings Act is a forward-thinking initiative that challenges commercial property owners to reduce their environmental footprint while offering the tools and funding to succeed. With staggered deadlines, flexible compliance pathways, and robust incentives, building owners have every reason to act now.

If you qualify for any of the rebates, reach out to Incentive Rebate360 to maximize your savings on future projects. To speak to one of our rebate recovery specialists, call 480-653-8180, email [email protected], or schedule a call that fits your needs by clicking the button below!