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CBPS Incentives and Penalties

Commerce offers incentives and grants to building owners who are required to comply with the Clean Buildings Performance Standard (CBPS). These funds can help cover some compliance costs, perform energy audits, or pay for the necessary projects and services to meet the CBPS requirements. The initiatives aim to reduce energy consumption, lower operational costs, improve indoor air quality, alleviate community energy burdens, and decrease greenhouse gas emissions in the building sector. Non-compliance can trigger substantial fines, especially for larger properties, and penalties can accumulate quickly. Owners who delay action risk facing enforcement measures that could severely impact their bottom line. Compliance isn’t optional, it’s a requirement.

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    Washington CBPS Early Adopter Incentives

    The Washington State Department of Commerce offers substantial financial incentives to building owners who proactively comply with Clean Buildings Performance Standard requirements.

    Tier 1 Early Adopter Incentive Program:

    The Tier 1 Early Adopter Incentive Program is available and applies to non-residential, hotel, motel and dormitory buildings greater than 50,000 ft2. An eligible building owner that demonstrates early compliance with the Clean Buildings Performance Standard may receive a one-time base incentive payment. Incentive funds are limited to $75 million. Reference RCW 19.27A.220 the state energy performance standard for more information.

    Requirements:

    • Building must be 15+ EUI above target
    • Achieve full CBPS compliance
    • Meet Energy Use Intensity target (EUIt)

    Tier 2 Early Adopter Incentive Program:

    The Tier 2 Early Adopter Incentive Program, covers buildings between 20,000 – 50,001 sq ft, including multifamily residential buildings over 20,000 sq ft. A total of $150 million has been allocated for Tier 2 incentives, with Commerce partnering with Washington State utilities to pay these incentives to building owners. Commerce will review and approve compliance and incentive applications, and the incentive will be paid by the building’s utility provider on a first-come, first-served basis. 

    Requirements:
    Energy benchmarking, Energy Management Plan (EMP), and Operations & Maintenance (O&M) program only. No energy performance target required.

    Washington CBPS Non-Compliance Penalties

    If you do not comply with Washington State CBPS there can be thousands in associated penalties.

    Tier 1 Non-Compliance Penalties:

    Tier 1 Building Penalties Overview: 
    • Maximum penalty per compliance cycle: $5,000 plus $1.50 per square foot.
    • Ongoing violations: $5,000 plus $1.00 per square foot per year, calculated daily for up to 18 months.
    • Deadlines based on Square Footage
    Learn More Here

    Requirements:

    • Building must be 15+ EUI above target
    • Achieve full CBPS compliance
    • Meet Energy Use Intensity target (EUIt)

    Tier 2 Non-Compliance Penalties:

    Tier 2 Building Penalties Overview:
    • Maximum penalty per compliance cycle: $0.30 per square foot (flat fee).
    • To avoid penalties and qualify for incentives, an Energy Management Plan (EMP) and Operations & Maintenance (O&M) program must be fully implemented by July 1, 2026.
    Learn More Here

    Requirements:

    • Building must be 15+ EUI above target
    • Achieve full CBPS compliance
    • Meet Energy Use Intensity target (EUIt)

    Additional Seattle Requirements:

    Seattle Requirements Overview: 
    • Building owners may also be subject to the Seattle Building Emissions Performance Standard, which carries higher penalties.
    • Combined noncompliance with both standards could result in penalties exceeding $20,000 plus $4.50 per square foot. For details and compliance guidance, refer to the Seattle Building Emissions Performance Standard documentation.
    Learn More Here

    Requirements:
    Energy benchmarking, Energy Management Plan (EMP), and Operations & Maintenance (O&M) program only. No energy performance target required.

    Frequently Asked Questions

    Are there additional incentive funds available for Tier 1 and Tier 2 buildings?
    Yes, see the CBPS Incentives & Savings page for more information

    Public Buildings are buildings owned by State Agencies, School and Health Districts, Colleges and Cities, Municipalities and Counties (this does not include buildings owned by a non-profit, even if the non-profit is funded by a public agency).

    The Clean Buildings Portal is a database of all covered buildings. It provides building owners with a secure system to manage their building’s compliance with the Clean Buildings Performance Standard and submit applications to the Early Adopter Incentive Program. Please note: Features for Tier 2 will not be available until after July 2025.

    Compliance with the Clean Buildings Performance Standard is different depending on the size of your building. Tier 1 is buildings greater than 50,000 sf. Tier 2 is buildings greater than 20,000 sf to 50,000 sf and all multifamily buildings greater than 20,000 sf.