Washington Clean Buildings · Tier 2 guide
Tier 2 deadline, penalties and incentive, explained
The key dates and dollar figures for Washington Clean Buildings Tier 2, in one place, with a link to the official source for each.
The deadline: July 1, 2027
The owner of a Tier 2 covered building must report compliance to Commerce by July 1, 2027, and every five years after that. Commerce is already accepting early compliance (Commerce, Tier 2 compliance).
What has to be done by then
- Benchmark the building's energy use in ENERGY STAR Portfolio Manager, using at least 12 consecutive months of energy data from within the two years before the compliance date (CBPS 030). Utilities must provide the data on request.
- Energy use intensity target (EUIt). The building's Qualified Energy Manager (QEM) develops the target on Form B. Tier 2 buildings must identify a target but are not required to meet it at this time.
- Energy Management Plan (EMP) and an Operations and Maintenance (O&M) program, developed and implemented as the standard requires. Commerce publishes an EMP template and an O&M Program Development Tool; using them is optional.
- Submit through the Clean Buildings Portal, including the EMP and O&M reporting tools and Forms A, B and C.
Tier 2 compliance requires a QEM. Commerce offers free QEM training, and the Smart Buildings Center lists QEMs (Smart Buildings Center, QEM training and directory).
Extensions: two more years, if you qualify
Owners can apply for a two-year extension in the Clean Buildings Portal between six months before and six months after the compliance date. The application needs supporting documentation, the extension reporting tool, and at least one qualifying reason: circumstances beyond your control; a recent change of ownership; financial restrictions; new construction, additions or major remodels; or benchmarking complete but more time needed for the EMP and O&M (Commerce, Tier 2 compliance; CBPS 044, Extension Guidance).
Penalties
- Commerce can impose administrative penalties on owners who fail to submit documentation of compliance, with progressive penalties by legal notice.
- Tier 2 penalties cannot exceed $0.30 per square foot of gross floor area (Commerce, Tier 2 compliance).
- An owner who chooses to pay rather than comply is assessed the maximum $0.30 per sq ft, may lose eligibility for the early adopter incentive, and is assessed for each compliance period (CBPS 047, Compliance Options).
- An owner can request an administrative hearing in writing within 30 days of the date of the notice of violation (CBPS 047).
Worked example (arithmetic only): for a 30,000 sq ft building, the maximum penalty is 30,000 × $0.30 = $9,000 per compliance period. For condos, only the association's common space counts (CBPS 034).
The Tier 2 Early Adopter Incentive
- Base incentive: $0.30 per sq ft of gross floor area, excluding parking, unconditioned or semi-conditioned space, for owners who benchmark, identify an EUIt, and develop and implement an EMP and O&M program.
- Enhanced incentive for multifamily: owners who rent to residential tenants and sign the Anti-Displacement Agreement may receive up to $0.75 per sq ft or the listed cost of compliance, whichever is lower.
- Who pays: participating utilities pay owners directly after Commerce approves the compliance and incentive application. Utilities with more than 25,000 customers must participate; smaller ones may opt in. Owners may need to give the utility a W-9.
- First-come, not guaranteed: payments may be reduced or delayed to match a utility's ability to pay. Commerce launched the program on July 1, 2025 with $150 million; as of September 24, 2026 it reported over $138 million left.
- Apply by July 1, 2027, together with the compliance application.
Source: Commerce, Tier 2 Early Adopter Incentive Program.
Worked example (estimate only): a 30,000 sq ft building at the $0.30 base rate would be about $9,000, if funds remain, the utility participates and Commerce approves the application. Commerce calculates the actual amount.
Why start early
Commerce itself recommends starting early because of long lead times, and the incentive is first-come. Collecting 12 months of utility data, building the equipment inventory and getting your QEM's review all take time. Not sure if your building is covered? Start with Is my building Tier 2?
Quick answers
When is Washington Clean Buildings Tier 2 reporting due?
July 1, 2027, then every five years. Commerce is accepting early compliance now.
What is the maximum Tier 2 penalty?
Commerce says Tier 2 penalties cannot exceed $0.30 per square foot of gross floor area. An owner who pays instead of complying may also lose eligibility for the incentive.
How much is the Tier 2 early adopter incentive?
The base rate is $0.30 per sq ft. Multifamily owners who sign the Anti-Displacement Agreement may get up to $0.75 per sq ft or the listed cost of compliance, whichever is lower. It's first-come, paid by participating utilities, and not guaranteed.
Can I get an extension?
Yes, if you qualify. A two-year extension can be requested in the Clean Buildings Portal between six months before and six months after the compliance date, with documentation of a qualifying reason.
Official sources
Want to know where your building stands?
Send us a building name or address and we'll reply with a free one-page Building Snapshot: our preliminary assessment of likely Tier 2 status from public information (for the owner or QEM to confirm), the deadline, the potential maximum penalty, an incentive estimate and a to‑do list. If you go ahead, we prepare draft documents on Commerce's templates for your QEM to review, revise, approve and submit.