Clean Buildings Performance Standard Annual Legislative Report (Washington State Department of Commerce, June 2026)

Summary

Clean Buildings Performance Standard Annual Legislative Report, pursuant to RCW 19.27A.210 and RCW 19.27A.220, dated June 2026, a report to the Legislature from the Clean Buildings Program of the Washington State Department of Commerce. The report states that Commerce administers the Clean Buildings Performance Standard and that the first Tier 1 compliance deadline is June 1, 2026. It states that Commerce mailed more than 24,000 Tier 2 notification letters and that more than 510 compliance and exemption applications have been submitted. It also states that Commerce administered four major incentive programs, totaling $284.5 million, including $45 million in Clean Buildings Performance Grants.

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Issuer: Congressional materials
Document type: Annual Report
Case: 2026 Cbps Annual Legislative Report Final 811Ec026 7A0F 4A72 95D5 4755Fff83

Cite this document

“Clean Buildings Performance Standard Annual Legislative Report (Washington State Department of Commerce, June 2026).” Original at app.leg.wa.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-cbps-annual-legislative-report-final-811ec026-7a0f-4a72-95d5-4755fff83/, SHA-256 a98735f20da07bec57c404606a32f0179411d0206abde3392f418b479e92255a.

Full text

Clean Buildings Performance Standard
Annual Legislative Report

Pursuant to RCW 19.27A.210 and RCW 19.27A.220

June 2026

Report to the Legislature
CLEAN BUILDINGS PROGRAM
Interim Director Sarah Clifthorne

v4
Acknowledgments
Washington State Department of Commerce
Jennifer Grove, Assistant Director, Energy Division

Building Unit
Emily Salzberg, Managing Director

Annalyn Bergin, Compliance Lead

Luke Howard, Technical Support Lead

Josette Gates, Incentive Program Lead

Kyoung-Jin Lee, Data Lead

Dillon Ackerman, Technical Support Specialist

Isabel Baird, Workforce Development Program Manager

Jeff Rasmussen, Outreach and Education Program Manager

1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525

www.commerce.wa.gov

For people with disabilities, this report is available on request in other formats. Please call 360-725-4000 with your request.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 2
Table of contents
Executive summary .............................................................................................................................................4

Introduction ........................................................................................................................................................7

Progress to date .................................................................................................................................................8

Reflections of 2025 ........................................................................................................................................... 22

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 3
Executive summary
Legislative mandate
The Washington state Legislature established the Clean Buildings Act, outlined in RCW 19.27A.210-260, 1 to
improve the energy efficiency of large existing buildings and to put the state on a path to meet our greenhouse gas
(GHG) reduction limits as outlined in RCW 70A.45.020. 2

The purpose of this report is to satisfy the requirements in section 3(14) of RCW 19.27A.210:

By January 15, 2022, and each year thereafter through 2029, the department must submit a report to the governor and the
appropriate committees of the Legislature on the implementation of the State Energy Performance Standard established
under this section. The report must include information regarding the adoption of the ANSI/ASHRAE/IES standard 100-
2018 as an initial model, the financial impact to building owners required to comply with the standard, the amount of
incentives provided under sections 4 and 5 of this act, and any other significant information associated with the
implementation of this section.

Overview
This report describes Washington’s progress in implementing the Clean Buildings Performance Standard (CBPS).
Our state is leading the nation in policies and programs to reduce greenhouse gas emissions from the built
environment. We were the first state in the nation to pass a statewide building performance standard for existing
large buildings. We are also the first state to require district energy system decarbonization planning. Several
states are now following our lead.

Washington state has made significant progress in reducing greenhouse gas emissions from existing buildings
through the Clean Buildings Performance Standard (CBPS). Established by the Legislature in 2019 and expanded in
2022, the CBPS requires energy management planning (EMP), operations and maintenance programs (O&M) and
benchmarking for all Tier 1 and Tier 2 buildings. Larger Tier 1 buildings must meet performance-based compliance.
In 2023, new requirements were adopted to further address the decarbonization of district energy systems. The
Department of Commerce (Commerce) administers the CBPS, implements rulemaking, supports compliance and
delivers incentives to building owners.

There are significant long-term cost reduction benefits to compliance, including reduced operating costs, extended
useful life of buildings and systems and improved indoor environments. The Standard requires implementing cost-
effective efficiency measures and developing and implementing an EMP and O&M. These requirements can lead to
reductions in annual energy use of 10 to 30% and lower maintenance and operating costs.

In 2025, Commerce achieved key milestones to advance statewide compliance readiness and support building
owners. The Legislature passed House Bill 1543, an agency-requested bill that gives owners more flexibility by
creating alternative compliance pathways, allowing timeline extensions for good-faith efforts hindered by
workforce or supply-chain issues and establishing new exemption categories. Commerce held five public
workshops, gathered stakeholder input and began developing rules that will be finalized in 2026.

Outreach and education efforts continued to scale up the last program year. Commerce mailed more than 24,000
Tier 2 notification letters, a major outreach effort that significantly increased the number of requests for guidance.
The program responded to over 4,200 customer inquiries, nearly three times as many as last year. Furthermore,
Commerce engaged with more than 6,000 stakeholders through training, webinars, events and targeted outreach.

1 Washington Legislature, "RCW 19.27A.210-260 State energy performance standard,"
2 Washington Legislature, "RCW 70A.45.020 Greenhouse gas emissions reductions—Reporting requirements,"

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 4
Commerce also improved resource availability through expanded customer support, new technical tools and timely
application reviews.

Building owner compliance activity is accelerating as deadlines approach. More than 510 compliance and
exemption applications have been submitted, with many Tier 1 buildings already meeting their energy targets. For
the state’s largest buildings, the first major deadline arrives in June 2026. Commerce will continue processing
applications, improve its online Clean Buildings Portal and support owners through this transition.

To reduce financial and technical barriers to compliance, Commerce expanded financial and technical support.
Commerce administered four major incentive programs, totaling $284.5 million. These included the Tier 1 and Tier
2 Early Adopter Incentives, $45 million in Clean Buildings Performance Grants and $14.5 million for energy audits
of publicly owned buildings. The demand for CBPS grants exceeded available funding. This shows the need and
momentum for energy efficiency upgrades across Washington as we head towards mandatory compliance dates
starting in 2026. Commerce also advanced database and portal development to streamline compliance and ensure
accurate energy performance reporting.

Additional support was also provided through the new Building Efficiency and Clean Operations Network (BEACON)
Fellowship Project, which trains fellows to offer free support to building owners, as well as Qualified Energy
Manager (QEM) training, expanding workforce development partnerships. Together, these programs strengthen
technical capacity statewide and are especially valuable for rural, small and under-resourced building owners who
often lack in-house expertise.

Reflections from 2025
Looking ahead to 2026, Commerce will finalize Chapter 264, Laws of 2025 (HB 1543) rulemaking, update the
integrated CBPS document, continue improvements to the Clean Buildings Portal and prepare for the first Tier 1
compliance deadline on June 1, 2026. Supporting over 27,000 covered buildings will require ongoing investment in
incentives, technical assistance and workforce development. These steps promote equitable and timely
compliance, reduce energy costs, cut emissions and advance Washington’s climate and economic goals.

The following reflections surfaced during this year’s review of the program to more effectively implement the
CBPS:

Administrative complexity can limit access: We observed that the weight of administrative requirements —
particularly navigating multiple funding applications — can discourage building owners from engaging with the
program. Consolidating application processes and reducing paperwork burdens would go a long way toward
making compliance more accessible, especially for small businesses, rural communities, and underserved
populations.
Industry education on financing tools may increase compliance: As Commerce continues to monitor
implementation progress, it may be helpful to further assess and raise awareness of available financing tools for
industry. While CBPS compliance may require upfront investment, it also offers long-term benefits, including
reduced operating costs, extended equipment lifespans, and healthier indoor environments.
Building owners may benefit from increased access to Clean Buildings Portal: Ongoing investment in the Clean
Buildings Portal can further improve compliance tracking, program administration, and user experience. In
addition, enhanced portal functionality can also reduce administrative burden for staff by automating application
intake, completeness checks, notifications, and data management. These improvements would support greater
efficiency, transparency, and scalability as the program expands and more building owners engage with the
CBPS.
Expanding education and training programs helps build the Clean Building workforce and supports building
owners: Expanding the Clean Buildings workforce increases the availability of trained professionals who can help

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 5
building owners evaluate building performance, identify improvements, and navigate CBPS compliance
requirements. A larger workforce can reduce service costs, shorten wait times, and improve access to technical
expertise, especially for small businesses, rural communities, and owners without in-house energy management
staff. Workforce training programs such as Qualified Energy Manager (QEM) and Building Operator Certification
(BOC) also help ensure buildings are operated efficiently, supporting long-term energy savings and easier
compliance.
Strengthening partnerships increases the availability of technical assistance: Building owners often lack in-
house capacity for operations, maintenance and energy management planning. By strengthening collaboration
with organizations that provide technical support, we will be able to extend the reach of resources and funding,
especially for Tier 2 building owners.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 6
Introduction
Background
In 2019, the Legislature found that to meet the statewide greenhouse gas emissions limits in RCW 70A.45.020, the
state must require performance standards for existing large buildings. Residential and commercial buildings are
Washington's second-largest source of greenhouse gas emissions, accounting for 25% statewide emissions. 3 With
a building's life spanning 50 to 100 years or more, retrofitting existing buildings to reduce energy use is one of the
most cost-efficient methods to significantly cut greenhouse gas emissions.

To improve energy efficiency in existing buildings and to maximize reductions of greenhouse gas emissions from
the building sector, The Washington State Legislature enacted the Clean Buildings Act (Chapter 285, Laws of 2019),
becoming the first in the nation to establish a statewide performance standard for buildings. Commonly referred to
as the Clean Buildings law. The Legislature enacted this law to enhance the energy performance of existing large
buildings and to meet Washington's greenhouse gas (GHG) reduction targets, as outlined in RCW 70A.45.020. This
statute applies to:

Tier 1 covered commercial buildings that are larger than 50,000 square feet
Tier 2 covered buildings that are larger than 20,000 square feet and multifamily residential buildings 4

As the first statewide building performance standard in the nation, the Clean Buildings Performance Standard
(CBPS, or the Standard) consists of American Society of Heating, Refrigerating and Air-Conditioning Engineers
(ASHRAE) Standard 100-2018, Energy Efficiency in Existing Buildings, with state amendments WAC194-50. The
standard applies to Tier 1 and Tier 2 covered buildings, as well as buildings connected to a participating district
energy system.

Table 1: Tier 1 versus Tier 2 covered buildings

Category Tier 1 covered buildings Tier 2 covered buildings
Between 20,001 and 50,000 square feet and
Building size Greater than 50,000 square feet all multifamily buildings over 20,000 square
feet

Benchmark
Energy management plan
Benchmark
Operations and maintenance program
Energy management plan
Requirements • Meet the energy use Intensity target or
Operations and maintenance program
• Meet the investment criteria or
• Minimum energy use reduction or
Space heating electrification

June 1, 2026 – More than 220,000 square feet
June 1, 2027 – More than 90,000 square feet but
Reporting deadlines less than 220,001 square feet July 1, 2027
June 1, 2028 – More than 50,000 square feet but
less than 90,001 square feet

Table 1 compares Tier 1 and Tier 2 covered buildings by outlining their size thresholds, compliance requirements and reporting deadlines.

3 Department of Ecology Greenhouse Gas Inventories
4 In 2022, the law was expanded to include buildings Tier 2 covered buildings

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 7
Owners of both Tier 1 and Tier 2 covered buildings are required to benchmark. Benchmarking is the practice of
tracking and comparing a building's annual energy use to energy use targets developed by the state. Additionally,
they will need to develop and implement an energy management plan, including an operations and maintenance
(O&M) program, in accordance with the Standard. However, only Tier 1 buildings are required to meet a
performance metric in one of the following ways:

By achieving the energy use intensity target set by the state.
By meeting the investment criteria, which involves conducting an energy audit, life cycle cost analysis and
implementing all cost-effective energy efficiency measures.
By applying for an exemption.

The investment criteria pathway requires an audit of the building, followed by the installation of cost-effective
measures. This means that the cost savings from the measure over its service life must exceed the cost of
implementation. These upgrades yield significant operating budget savings by reducing utility costs, extending the
life of building systems and equipment and improving indoor environments to be healthier and more productive.

The dates for Tier 1 compliance reporting, based on building size, range from 2026 to 2028. The Tier 2 reporting
deadline is July 1, 2027. Building owners must submit compliance documentation to the Department of Commerce
in accordance with the reporting schedule in WAC 194-50-080 and every five years thereafter.

Commerce was tasked with conducting rulemaking, creating a database of covered buildings, notifying building
owners of requirements, establishing an early adopter incentive program and providing industry support.

Since 2019, the CBPS statute and rules have been updated. On May 4, 2023, House Bill (HB) 1390 (Chapter 291,
Laws of 2023) was signed into law, amending the Clean Buildings law to add a new section on compliance for
buildings connected to district energy systems. 5 The amendment requires owners of campus district energy
systems to submit a decarbonization plan to Commerce by June 30, 2025, and to resubmit it every five years
thereafter, including a progress report on the plan's implementation. The bill acknowledges that decarbonizing
buildings is essential to meeting the state's climate goals and highlights the benefits of upgrading existing district
energy systems, while accounting for the timeline for implementing these upgrades. The bill allows plans to be
implemented over a 15-year timeline and provides Commerce with the authority to approve plans beyond this
timeline where necessary.

In 2025, House Bill 1543 was signed into law (Chapter 264, Laws of 2025). This agency request legislation
implements key recommendations from the Clean Buildings workgroup to aid building owners in compliance.
Commerce would be allowed to set alternative compliance pathways beyond existing energy‑use‑intensity targets,
grant extensions to owners facing issues such as workforce shortages or supply‑chain delays when they
demonstrate a good‑faith effort, and create new exemption categories for circumstances including national
security concerns. These updates are designed to make compliance easier for building owners. Rulemaking is
ongoing and expected to be completed in 2026.

Progress to date
Accomplishments and next steps
In 2025, the Clean Buildings team deepened their efforts in workforce development, increasing customer support
and technical assistance and processing compliance and incentive applications. The program gained significant

5 Washington State Legislature, "HB 1390 Campus District Energy Systems — Decarbonization Plans,"

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 8
momentum by successfully passing agency-request legislation, advancing rulemaking and implementing key
initiatives, including launching incentives and training, investing in audits and CBPS projects and enhancing
outreach and customer support to prepare building owners for compliance. In 2025, we accomplished the
following:

Introduced agency-request legislation, HB 1543, which passed in May 2025.
Conducted HB 1543 rulemaking, including five public workshops.
Launched the Tier 2 Early Adopter Incentive Program on July 1, 2025.
Identified Tier 2 buildings and mailed over 24,000 Tier 2 notification letters to building owners.
Launched the Clean Buildings Performance Grants and awarded $45 million, supporting 71 building owners.
Launched the BEACON Fellowship Project, placing the first cohort of 10 fellows in local communities around the
state.
Launched the Qualified Energy Auditor list and awarded over $14 million to support investment-grade energy
audits in 299 publicly owned buildings.
Launched the Qualified Energy Manager Training program, hosted live and in-person training.
Responded to 4,228 customer support inquiries.
Reviewed over 510 Tier 1 and Tier 2 early compliance applications.
Received and reviewed 27 District Energy System Decarbonization Plans.
Expanded the customer support process.
Hosted eight compliance training webinars.
Utilities paid the first incentives in the Tier 1 and Tier 2 Early Adopter Incentive Program.

Although we have made significant progress, more work remains to be done. There are an estimated 27,622 Tier 1
and Tier 2 buildings, and 17,398 building owners. The compliance deadline for the first cohort of Tier 1 buildings
with more than 220,000 square feet is June 1, 2026. There are 1,439 buildings required to comply by 2026. Our goal
is that all building owners and their representatives are informed about the standard, are aware of the different
compliance pathways and can confidently comply by their respective deadlines.

Commerce priorities for 2026
Complete the rulemaking process by filing the CR 103, codifying the rules on exemption, alternative compliance
pathways and extensions.
Update and publish a new version of the Clean Buildings Performance Standard Integrated Document.
Improve the Clean Buildings Portal user experience and support the new rules that are codified.
Launch a communication campaign to ensure building owners are aware of the new rules.
Update existing guidance documents, webpages and training materials.
Send reminder letters to building owners about the upcoming compliance deadlines.
Process compliance applications for size cohort 1 buildings, which are buildings exceeding 220,000 square feet.
Identify the building owners of size cohort 1 who did not comply and send them a notice of compliance options.
Continue to review incentive, exemption and early compliance applications.
Enhance customer support capacity to better serve the increasing volume of building owners and industry
professionals requiring assistance.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 9
Tier 1 and Tier 2 Compliance Applications
Building owners are able to submit for early compliance three years prior to their compliance date. In 2025, Tier 1
early compliance continued, and the Tier 2 early compliance period opened. Figure 3.1 shows that the number of
compliance applications received has increased from three in December 2023 to a cumulative total of 510 as of
September 30, 2025, representing a 79% increase compared to the same period last year. To date, approximately
80% of the applications received have been for Tier 1 compliance, and most have met the energy use intensity
target. So far, received applications originate primarily from manufacturing/industrial buildings seeking exemption,
and office and education buildings meeting their energy use intensity targets.

Figure 3.1: Cumulative applications

Figure 3.2 shows the total applications received by type. There were 219 Tier 1 compliance applications, 183 Tier 1
exemption applications, 59 Tier 2 compliance applications, and Tier 2 exemption applications. This year,
Commerce reviewed 232 exemption applications and 278 early compliance applications. These application reviews
have allowed us to better understand and plan for staff review capacity needs, inform the creation of helpful tools
& templates for compliance planning and lead Commerce in developing systems for efficient, insightful reviews. In
addition, Commerce has identified gaps in the Clean Buildings Portal, and the team has begun working to resolve
them.

Figure 3.2: Application type

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 10
Of the exemption applications received by Commerce, many initial applications come from
manufacturing/industrial buildings. Figure 3.3 shows the quantity of exemption applications received by type.
Commerce also received exemption applications for unconditioned space, agricultural buildings, buildings that
were not physically occupied, financial hardship and demolition.

Figure 3.3: Exemption applications by type

Commerce still has much work to do to achieve statewide compliance. The table below highlights total estimated
covered buildings, broken down by building tier, cohort and approval status. The building counts are continuing to
change based on quality assurance reviews of the covered buildings list.

Table 2: Total estimated covered buildings

Compliance Number of covered Number of buildings in compliance or pre-
Building size and tier category
Deadline buildings approved for exemption

Tier 1: 220,001+ sq. ft. June 2026 1,380 131

Tier 1: 90,001 – 220,000 sq. ft. June 2027 3,659 111

Tier 1: 50,001 – 90,000 sq. ft. June 2028 5,121 81

Tier 2: 20,001 – 50,000 sq. ft. and
multifamily residential 20,001+ July 2027 17,398 70
sq. ft.

Table 2 highlights total estimated covered buildings, broken down by building tier, cohort and approved status.

District Energy Systems
Submittal of 15-year decarbonization plans to Commerce is mandatory for state campus district energy systems
and optional for campus district energy systems. A total of 32 state campus district energy systems were
registered, while five privately owned campus district energy systems opted in. Three privately owned campuses
later opted out after determining their plans were not feasible to pursue. Not all agencies/organizations that
registered or opted in submitted a plan. Seven campuses were unable to submit their plans; however, they intend to
do so pending a state funding request.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 11
A total of 27 plans were submitted. Commerce and a team of nationally recognized consultants reviewed the
decarbonization plans. The plans were summarized in the District Energy System Decarbonization Plans Summary
Legislative Report.

Financial impact on building owners
The overall cost of complying with the CBPS varies significantly by building type and ownership. This variation is
influenced by differences in existing energy performance, whether upgrades are required and operational
readiness. One of the most significant cost drivers is the building’s current Energy Use Intensity (EUI) in relation to
its compliance target. Buildings that already operate efficiently may require only modest operational
improvements, while those with outdated or poorly performing equipment and systems may need substantial
upgrades to meet compliance thresholds.

Commerce estimates that over 50% of Tier 1 covered buildings may already comply with the performance targets.
Of those buildings exceeding their targets, a significant number can achieve them through “light touch upgrades,”
such as fine-tuning Operations and Maintenance (O&M) Programs or performing retro-commissioning. A portion of
the buildings will file for an exemption or extension at little cost. The remaining portion of buildings will require
significant capital upgrades to achieve compliance. The standard requires that only cost-effective measures be
implemented, resulting in savings that exceed the capital installation cost over the measure's life.

Another cost driver is the level of diagnostic work needed to assess a building’s performance. Tier 1 building
owners pursuing the investment criteria pathway may invest in a detailed energy audit and life cycle cost analysis
to identify cost-effective improvements. These analytical efforts help in developing the required Energy
Management Plan and O&M Program, both of which incur additional staffing, training and documentation costs.
Public buildings, such as K–12 schools, colleges and hospitals, may offset costs by taking advantage of the Energy
Audit Incentive Program, while privately owned building owners can take advantage of the Clean Buildings
Performance Grants.

Capital improvements represent a significant and variable expense in some Tier 1 buildings, exceeding their target.
For those buildings, compliance may require upgrades such as enhancing building automation systems,
modernizing lighting, optimizing controls, or replacing aging, inefficient mechanical systems. In some cases,
buildings may also require improvements to the thermal envelope or electrification measures, further complicating
projects and increasing costs. Building specific conditions, such as age, historic status, occupancy type and
existing systems infrastructure, also influence both the scope of work and overall costs. Facilities with high-
intensity uses, such as hospitals, laboratories, prisons/jails and campuses, tend to face higher compliance costs
due to their complex operating conditions and energy-intensive operations.

Incentives play a critical role in reducing net costs. State programs, such as the Clean Buildings Performance
Grants and the Early Adopter Incentive Programs, along with federal incentives like the 179D tax deduction and
utility rebates, can offset a substantial portion of expenses when strategically combined. Based on currently
available Tier 2 incentive program application data, Commerce estimates that Tier 2 buildings can achieve
compliance through investments totaling $0.30/square foot. The Tier 2 incentive program is available and allows
building owners to receive $0.30/square foot for compliance, covering, on average, the full cost of compliance.
Support for financing mechanisms to address high upfront retrofit costs, such as low-interest loans or Green Bank
funding, is recommended.

A building owner’s chosen compliance pathway affects the total cost. Building owners can focus on achieving a
specific EUI, which may require capital improvements or none at all, while the investment criteria emphasize cost-
effective measures. Together, these factors shape the financial landscape of CBPS compliance across
Washington’s commercial and multifamily buildings.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 12
There are significant operating cost savings from complying with the law. Buildings implementing only the CBPS
operations and maintenance program requirements can save, on average, 10 to 15% in annual utility costs, in
addition to extending the useful life of equipment. This results in reduced operating costs for the building owners
and lower carbon emissions for the state for many years to come.

Finally, the recently enacted Chapter 264, Laws of 2025 (HB 1543) legislation can relieve some of the financial
pressure by providing building owners with alternative compliance pathways, time extensions and exemptions from
CBPS requirements. The 2027 CBPS Annual Report will include additional cost data, as the first compliance
deadline for Tier 1 buildings greater than 220,000 square feet is on June 1, 2026.

Legislative activities
Over the past six years, the CBPS has evolved through various legislative and rulemaking activities since 2019.

2019
HB1257: Clean Buildings Act for Tier 1 buildings

2020
Clean Buildings Performance Standard Rulemaking

2022
SB5722: Clean Buildings Expansion for Tier 2 buildings

2023
Tier 2 Rulemaking;
Exemption Emergency Rulemaking;
HB1390 Decarbonization of District Energy System

2024
HB1976: Enhance Incentive Payments for tier 1 and 2 buildings;
Decarbonization of District Energy System Rulemaking

2025
HB1543 and Rulemaking: Exemption, extensions and alternative compliance applications
Agency request legislation, HB1543-2025-26
Initiating the rulemaking process by filing the CR-101 on June 3, 2025, and completing five rulemaking
workshops

Chapter 264, Laws of 2025: Increasing compliance pathways for the Clean Buildings Performance Standard.
House Bill 1543 was signed into law on May 13, 2025 (Chapter 264, Laws of 2025). This was agency request
legislation that resulted from the Clean Buildings workgroup’s legislative report, which included recommended
changes to meet compliance standards. Agency requested legislation had three critical changes to help building
owners comply, authorizing Commerce to:

Create and adopt alternate compliance pathways with the CBPS. Developing alternative compliance pathways
beyond meeting the energy use intensity targets and investment criteria will expand compliance options for
buildings adhering to the standard.
Grant timeline extensions to building owners working toward compliance. Building owners who make a good-
faith effort to comply with the standard but are unable to do so due to workforce shortages, supply chain delays,
or other external factors will be eligible to apply to Commerce for an extension.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 13
Introduce additional exemption categories into the standard — for example, in cases that would compromise
national security.

Before filing the CR 101, Commerce conducted a survey seeking suggestions on alternative compliance pathways,
extensions and exemptions. A total of 69 individuals from various industries participated in the survey, including
real estate, education, low-income housing, schools, utility providers and small businesses.

To educate the public about the rulemaking process and present the proposed rules, Commerce organized an
informational session along with four rulemaking workshops. These workshops included educational components,
statements of intention regarding the proposed rules and policies, questions and answers and solicitation of public
comments and feedback on the proposed rules. Each workshop lasted for two hours, with an average of 294
registered participants and 195 attendees. The information session had 466 registered attendees, with 306 in
attendance.

Stakeholders were given the opportunity to submit comments after each workshop, which were reviewed and
considered in the development of the draft rules. Commerce received 34 written comments from various
industries, including small school districts, building contractors, schools and nonprofit organizations.

Commerce conducted outreach and engagement efforts through several avenues to reach potentially impacted
businesses and public entities. Commerce regularly communicated about rulemaking activities and workshops
through the Clean Buildings webpage, bulletins sent to over 8,000 subscribers, presentations at multiple
conferences, workgroup meetings and community partners that have large networks. Stakeholders had access to
presentation materials, recordings and draft proposed rules.

The filing of the CR 102 and the public hearing are scheduled for the last quarter of 2025, with the rulemaking
process concluding in 2026.

Table 3: Dates of public workshops

Date Rulemaking Activities
Survey seeking suggestions on alternative compliance pathways, extensions and
6/02/2025
exemptions

6/03/2025 CR 101 filed

6/18/2025 HB 1543 Informational session

7/2/2025 HB 1543 Workshop proposed extensions and exemption rules

7/23/2025 HB 1543 Workshop proposed alternative compliance pathways

8/13/2025 HB 1543 Workshop clarifying language in various sections

9/3/2025 HB 1543 Workshop comprehensive review

Table 3 lists the dates of public workshops held during the rulemaking process that were open to all interested parties.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 14
Database development
The Clean Buildings Team closely aligned database development in 2025 with the expansion of portal features to
address increasingly complex compliance requirements and more diverse application processes. In the last quarter
of 2024, the Groups menu was developed and deployed, allowing users to create building sets under categories
such as Connected, Campus-Level, Campus District Energy System and State Campus District Energy System. This
functionality supports group-level compliance applications in addition to individual building-level submissions. To
facilitate these processes, existing application steps were upgraded to handle both group-level and individual
compliance.

In early 2025, development shifted to support new application types, including Tier 2 Compliance/Incentive
Applications, Tier 2 Exemption Applications and the District Energy Decarbonization Plans. Concurrently, the data
team finalized the list of potential Tier 2 buildings, initially identifying 17,871 buildings and adding them to the
Clean Buildings Portal. After confirmation with building owners, this number was adjusted to 17,398 as of Sep 30,
2025. Efforts to improve data quality through research, investigation and owner verification will continue. The total
number of covered buildings is presented in the web-based Clean Buildings Dashboard.

On July 1, 2025, a new version of the portal was released, delivering these features while also improving
performance and stability. For the third quarter of 2025, development efforts are focused on system improvements
and portal stabilization. Enhancements include expanding shared access for groups and developing new reporting
features to facilitate the collection of metrics, enabling a deeper understanding of compliance rates, trends and
energy use data.

Looking ahead, new features are scheduled for design and development in the last quarter of 2025. In the first half
of 2026, provisions from the new administrative rules, including additional exemptions, extensions and new
compliance pathways, will be implemented. Planned upgrades will also extend to compliance and decarbonization
applications, while improving administrative functions such as account pages, workflows and application
checklists. The Home menu for internal users will be upgraded to enhance efficiency and performance and
additional reporting will be developed for key stakeholders, including utility providers, the Department of Revenue,
building owners, representatives and qualified persons.

Further improvements will be made to track the penalties process. The program must notify building owners when
they are out of compliance and determine the penalties to be assessed. The portal must also track penalties
applied, paid and outstanding. Additionally, the system should automatically trigger status changes without
requiring manual intervention.

In the second half of 2026, the focus will be on completing outstanding items from the first half of the year and
integrating advanced data visualization features, such as charts and trend analyses, for managers, supervisors and
external stakeholders. Geographic Information Systems (GIS) integration will also be implemented following data
cleanup, the addition of Tier 2 building records and the migration of existing maps and applications to a newer
version.

These database development efforts directly advance legislative goals of transparency, data reliability and
operational efficiency for regulated buildings. The enhancements reduce administrative burden, streamline user
access and improve the accuracy of building performance reporting, thereby strengthening the state’s capacity to
monitor and enforce compliance.

CBPS Grants and Incentive Programs
Commerce administers four incentive programs with a total of $284.5 million in incentive funding to support
building owners and their representatives in complying with the CBPS:

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 15
Early Adopter Incentive Programs funded by utility tax credits include:

Tier 1 Early Adopter Incentive Program, $75 million, Existing program

• The program has allocated 15% of funding to building owners

Tier 2 Early Adopter Incentive Program, $150 million, New program

• The program has allocated less than 1% of funding to building owners

Additional state incentive programs funded by the Climate Commitment Act (CCA) include:

Clean Buildings Performance Grants, New program

• 2023 to 2025 Biennium: $45 million. Fully allocated.
• 2025 to 2027 Biennium: $5 million. Not yet allocated.

Energy Audits for Public Buildings Program, New program

• 2023-2025 Biennium: $14.5 million, Fully allocated.
• 2025-2027 Biennium: $12.6 million. Not yet allocated.

Energy Efficiency Retrofits for Public Buildings, $22.5 million, Existing program

Commerce has recently expanded its capacity to successfully administer both existing and new incentive
programs. Demand for the incentives continues to exceed available funding, especially in the Clean Buildings
Performance Grants program, where demand was twice the available funding. Commerce will launch a combined
request for applications for all clean building funding for the 2025-2027 biennium to reduce the administrative
burden on building owners submitting proposals across multiple fund sources.

Commerce is required to submit a report on the results of the early adopter incentive programs in 2025 and every
two years thereafter in accordance with RCW 19.27a.220. For further details on these incentive programs, please
review the 2025 Early Adopter Incentive Program Legislative Report.

Outreach, education and customer support
One of our largest outreach efforts took place on July 1, 2025. Commerce mailed over 24,000 notification letters to
Tier 2 building owners. The notification letter contained:

An explanation of the CBPS and Tier 2 reporting requirements
How to access the Clean Building Portal
The Tier 2 Incentive Program
Next Steps for Building Owners
Support and Resources

Since mailing the Tier 2 notifications, Commerce has received over 3,000 customer support, portal access and
technical assistance requests since July. Three months prior to this outreach effort, a significant amount of
planning and preparation was made, including:

Portal development, building and building owner identification and data quality checks.
Drafting a letter with sufficient information, ensuring accessibility and understandable language.
Identify additional staff to support existing staff in the expected large volume of responses.
Develop an efficient process to respond to the large volume of emails, customer support tickets, technical
assistance and portal access requests.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 16
Create and implement a communication plan to educate building owners, consultants and utility providers.

Commerce has experienced continuous customer support engagement over the last year, particularly among
building owners and contractors who have initiated access to the Clean Buildings portal and begun asking
questions about compliance requirements and steps. Stakeholders also submitted nearly three times as many
requests for support resources as in the previous year.

While navigating travel restrictions currently in place for state employees, Commerce has remained committed to
connecting with communities by meeting them where they are, as best as possible. During the last year, Commerce
staff attended or participated in over 45 in-person or virtual events. We engaged with over 6000 individuals in
events such as:

AHRAE Puget Sound Chapter Meeting
Washington Housing Consortium
2025 Washington Association of Maintenance and Operation Administrators (WAMOA) Fall Conference
WA Climate Action Peer Network
Puget Sound Energy Commercial Strategic Energy Management (CSEM) Annual Conference
Northwest Consumer Construction Council (NWCCC) Meeting
Infrastructure Assistance Coordinating Council (IACC) Conference

We developed partnerships and collaborations with local governments, state agencies, industry associations and
utility providers to extend our reach. This year, we continued our outreach efforts in rural communities, multifamily
building owners, small businesses and underserved communities.

Efforts include:

Presenting at the Western Washington BPA Utility Roundtable to rural utility providers
Participating in the Yakima Clean Buildings Act Open House
Presenting at the Energy/Climate Change Community of Practice
Partnered with community-based organizations located across the state

We have expanded our virtual training and office hours to provide additional support. On July 23, 2024, Commerce
launched the monthly CBPS Office Hours. This is a regular standing virtual meeting where building owners and
their representatives, utility providers, energy consultants and anyone related to the CBPS can connect with
members of our Clean Buildings team to ask specific questions, discuss a scenario, or listen to others and learn
about how they are meeting compliance. Attendance has steadily grown to 76 participants.

The Clean Buildings Team also launched the CBPS Educational Series, which hosts at least one webinar each
month. These webinars included:

Developing the EUIt for Tier 1 and Tier 2 buildings
Tier 2 Compliance: Benchmarking
Decarbonization of the District Energy Systems
Connect Building and Campus Level Compliance

In addition to our technical-focused training courses, we also offered monthly training that includes a high-level
overview of the CBPS. These webinars included:

CBPS Exemptions
Clean Buildings 101
CBPS for Utility Providers

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 17
Figure 3.4: Customer Support Assistance over the years
The buildings unit fielded 4,228 support requests, up from 1,664 last year (a 254% year-over-year increase). This
significant growth in support engagement stems from the training series, outreach events, and, most notably, the
delivery of Tier 2 notification letters.

Oct. 2022 Through Sept. 2023 Oct. 2023 Through Sept. 2024 Oct. 2024 Through Sept. 2025

Building Owner Notification Request
1205

Compliance/Technical Assistance
1065

Clean Buildings Portal
653

Data
408

Energy Audit Incentive Program
389

Policy
104

Website/ Resources
94

Early Adopter Incentive Program
94

Other
216

0 200 400 600 800 1000 1200 1400

Technical assistance
The Clean Buildings Program's technical team works closely with our outreach and education team to provide
technical support to stakeholders, utilizing several formats, including webinars/workshops, guidance documents,
one-on-one virtual meetings, Q&A sessions, emails and phone calls. This resource development and delivery
requires continual maintenance of technical expertise to keep up with developing legislation, standards, technology
and economic indices. In 2025, the technical team collaborated with several national and regional experts to
develop and maintain a range of tools and resources.

In 2024 and 2025, the technical team collaborated with a national laboratory to further refine the Washington State
Audit Template, which supports funding opportunity applications and CBPS investment criteria pathway
compliance applications. These refinements aim to enhance the data entry process, capture more relevant data for
building performance and energy efficiency measures and streamline the grant and incentive application process
for potential applicants.

In early 2025, Commerce was invited to participate in a Strategic Energy Management and Building Performance
Standards (SEM – BPS) Collaborative workgroup. This working group comprises members from across the country
and various backgrounds in energy management and building performance standards. The goal of this workgroup
is to evaluate how national SEM efforts can support the various BPS policies that are being developed and
implemented across the country. Additionally, this working group is actively evaluating tools and offerings from
various sources to determine whether additional tools or supporting resources could further enhance SEM and BPS
efforts.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 18
In May 2025, national experts delivered the Operation and Maintenance (O&M) Development Tool to Commerce in
support of Tier 2 buildings that needed to comply with the Washington State Clean Buildings Performance
Standard (CBPS). This tool was developed as a resource for building owners who do not have a building
automation program in place to support tracking equipment inventories, maintenance task requirements for their
equipment and tracking maintenance frequencies. Commerce partnered with Avid Solutions in June of 2025 to
develop a set of instructional videos that provide a detailed walkthrough to help users operate the tool. The O&M
Development Tool was made available to the public in July of 2025.

In 2025, the technical team continued its partnership with the American Society of Heating Refrigeration and Air
Conditioning Engineers (ASHRAE) in updating and publishing the Integrated Clean Building Standard. ASHRAE has
published a version of Standard 100 that incorporates our Clean Buildings Performance Standard rules into a
single, cohesive document, available for free download from Commerce's website. This year's collaboration will
incorporate rulemaking changes resulting from Chapter 264, Laws of 2025. The Clean Buildings Team participated
in several ASHRAE Standard 100 and Standard 211 committee and subcommittee meetings in 2025 to provide an
evidence-based perspective essential to future refinement of the standard.

Workforce development
A well-trained, readily available workforce is a key component to meeting both current and future building needs in
Washington state. As more buildings are required to come into compliance with the CBPS, workforce demands will
continue to increase. Building owners are increasingly seeking support throughout the CBPS compliance process,
including requests for general CBPS information, compliance materials, financial assistance, energy efficiency
upgrades and operations and maintenance to support energy efficiency and system longevity.

The 2024 Clean Buildings Workgroup Report identified several barriers to CBPS compliance, including a lack of
internal resources for building owners to understand CBPS and work towards compliance, the ability of building
owners to retain qualified staff and difficulties with accessing affordable services for CBPS compliance. Investing
in the clean buildings workforce is an effective and long-lasting solution to help reduce these barriers and ensure
that building owners have access to qualified professionals specializing in clean buildings and the CBPS, while
simultaneously creating quality jobs throughout the state. Furthermore, a strong, clean buildings workforce is key
to reducing energy usage and emissions in buildings across the state, in turn advancing Washington’s climate
goals.

Currently, there are numerous programs focused on training and growing the clean buildings workforce in
Washington state. State and local governments, utilities, higher education and nonprofits have all formed various
partnerships and developed program models to provide clean buildings support. For instance, the Building
Efficiency and Clean Operations Network (BEACON) Fellowship Project, managed by Commerce, places fellows in
local communities across the state to provide free CBPS compliance support to building owners. Puget Sound
Energy’s Commercial Strategic Energy Management Program and the Snohomish County PUD host fellows who
provide energy-related services, including CBPS support, directly to larger utility clients, such as school districts.
Advanced Energy Management trains and employs high school students to provide support. Higher education
institutions, such as Western Washington University, connect college students with hands-on energy-related
experience in local communities. These programs all share the goal of growing a workforce that can excel in the
clean buildings and energy sectors, driven by the demand for skilled professionals across the state.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 19
The Building Efficiency and Clean Operations Network (BEACON) Fellowship Project
The BEACON Project is a collaborative effort by Commerce, the Smart Building Center (SBC), Strategic Energy
Innovations (SEI) and San Timoteo Energy Associates (STEA) to provide free CBPS compliance support to building
owners and to accelerate the clean buildings workforce in Washington. After receiving feedback from building
owners about the need for more support to comply with the CBPS, a pilot program was created in Lewis County to
test the efficacy of training a fellow and having the fellow provide no-cost assistance to building owners
throughout the county. Building upon this successful pilot, Commerce, in collaboration with SBC, SEI and STEA,
applied for and was awarded a $10 million grant from the U.S. Department of Energy for the BEACON Project.

Together, these partners aim to train 60 fellows over three years to provide free technical assistance to a collective
of 2,000 buildings across Washington, helping them comply with the CBPS. Fellows receive robust technical
training, including the Qualified Energy Manager (QEM) and Buildings Operations Certification (BOC) courses, to
prepare them to provide tailored, no-cost support to Tier 1 and Tier 2 building owners. There is a specific focus on
outreach to and support for building owners who lack resources and staff capacity to comply with the CBPS.

The first cohort of BEACON fellows launched in June 2025, with 10 fellows placed in seven counties across the
state — King, Pierce, Lewis, Snohomish, Whatcom, Chelan and Spokane. Fellows received training for the first two
months of the fellowship and began conducting outreach to building owners in August 2025. Since then, the
following accomplishments include:

60 building owners from 16 counties requested BEACON services.
Services have been provided to 320 buildings. Services include providing CBPS education and resources, setting
up Energy Star Portfolio Manager and the Clean Buildings Portal and providing templates and feedback on EMPs
and O&Ms and submitting exemption applications.
Fellows have conducted 23 site visits and provided in-person 1:1 services to 21 building owners.
Fellows have provided services to 104 unique building owners and served a total of 320 buildings.
Fellows have conducted outreach to 270 entities, which include utilities, local governments, nonprofits, school
districts, small businesses and individual building owners.

The BEACON Project has filled a workforce gap and addressed a need for building owners, spurring a broader
conversation about the benefits of workforce development programs for building owners, utilities, communities
and workers.

Advance Energy Management Internship
The partnership between the Wenatchee School District, Wenatchee Valley College and Chelan County PUD is
developing a new workforce that directly supports Wenatchee’s local commercial buildings in meeting the new
Clean Buildings Performance Standard. High school and college students are enrolled in the paid internship
program Advanced Energy Management (AEM), working as active participants on an outsourced professional
energy management team. The growing list of commercial buildings contracted with the AEM interns includes
Wenatchee School District’s 13 schools, NCW Education Service District’s headquarters, Chelan-Douglas Regional
Port Authority’s headquarters, the Confluence Technology Center, the regional civic event center, the Town Toyota
Center, three JCPenney stores, NCW Libraries Distribution Center and Wenatchee Library.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 20
AEM is a proven high-performance business model that uses building energy data to identify and eliminate
avoidable energy waste in commercial buildings. AEM focuses on low-cost conservation measures that align
energy use with building activity, resulting in significant (15 to 40%) energy savings and long-term sustainability.
AEM is creating widespread value throughout Chelan County by delivering benefits to students, businesses, utilities
and the broader community. Benefits include:

Student Benefits: Beyond the pay and earning Career and Technical Education credit, these students are
receiving on-the-job training and learning professional business skills that are changing the trajectory of their
future.
Business Benefits: Wenatchee’s commercial buildings are generating energy savings through conservative
actions and preventative maintenance practices that generate more savings than the expense of implementing
the new Clean Buildings Performance Standard.
Utility Benefits: Chelan County PUD is reducing unnecessary consumption in its local commercial buildings,
freeing up capacity that helps meet the needs of its local market and is sold wholesale to other utilities.
Community Benefits: With now over 20 commercial buildings as their clients, the AEM Interns are not just
growing conservation cultures within the operations of each client; they are now demonstrating to the entire
community a better business model through the simple approach of conservation, which keeps more money
circulating in the local economy.

Qualified Energy Manager (QEM)
In June 2025, the Qualified Energy Manager Training course launched. It is sponsored by Commerce and
delivered by the Smart Buildings Center. We offered free live virtual, in-person and on-demand options. Over 500
registrants have enrolled since the training course launched. The course is designed for building operators,
facility managers, energy managers and other professionals responsible for building performance. It addresses
the Tier 2 requirements of the Clean Buildings Performance Standard (CBPS). Graduates of the QEM course will
receive certification if they meet the experience and training prerequisites. This course not only reduces
compliance costs but can also expand expertise and the workforce throughout the state.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 21
Reflections of 2025
After a year of implementation and stakeholder engagement, Commerce gained valuable insights into how the
CBPS is functioning in practice. Outreach with building owners, industry partners, and program administrators
revealed consistent themes around accessibility, efficiency, and long-term program success. The observations
below reflect those conversations and identify opportunities to strengthen the program as CBPS participation
continues to grow.

Administrative complexity may limit access: We observed that the weight of administrative requirements,
particularly navigating multiple funding applications, can discourage building owners from engaging with the
program. Consolidating application processes and reducing paperwork burdens would go a long way toward
making compliance more accessible, especially for small businesses, rural communities, and underserved
populations.

Industry education on financing tools may increase compliance: There is a cost to comply with the CBPS. There
are also significant benefits such as reduced operating costs, extending the useful life of building equipment and
systems and healthier indoor environments. Some financing mechanisms exist and could be further utilized.
Through our engagement, it became clear that awareness of financing options remains a gap. Upfront compliance
costs can feel daunting, but when building owners understand the long-term value such as reduced operating
costs, longer equipment lifespans, and healthier indoor environments; the path to compliance becomes more
attainable.

Building owners may benefit from increased access to Clean Buildings Portal: Ongoing investment in the Clean
Buildings Portal can further improve compliance tracking, program administration, and user experience. In addition,
enhanced portal functionality can reduce staff administrative burden by automating application intake,
completeness checks, notifications, and data management. These improvements would support greater efficiency,
transparency, and scalability as the program expands and more building owners engage with the CBPS.

Expanding education and training programs expands the Clean Building workforce and supports building owners:
The workforce needs to grow alongside the program: As CBPS expands, it has become evident that the pipeline of
qualified professionals must keep pace. Expanding access to training and credentialing opportunities — such as
the Qualified Energy Manager (QEM) and Building Operator Certification (BOC) — will be critical to ensuring building
owners have the skilled support they need to achieve compliance.

Increasing partnerships may be able to expand technical assistance: We heard consistently that building owners,
particularly Tier 2 owners, often lack the in-house capacity to manage operations, maintenance, and energy
planning on their own. Deepening partnerships with organizations that provide technical support offers a
meaningful way to extend our reach and ensure resources and funding get to where they are needed most.

2026 CLEAN BUILDINGS PERFORMANCE STANDARD ANNUAL LEGISLATIVE REPORT 22

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