Washington building owners still have access to substantial Clean Buildings early-adopter incentives, but eligibility depends on building size, energy performance, utility participation and meeting an approaching application deadline. The Washington State Department of Commerce administers separate Tier 1 and Tier 2 incentive programs through the Clean Buildings Portal.
The most important current dates are June 1, 2027 for the remaining eligible Tier 1 building-size group and July 1, 2027 for Tier 2 compliance and incentive applications. Funding is limited and distributed through participating utilities on a first-come, first-served basis after Commerce reviews and certifies an application.
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What changed in 2026?
The first Clean Buildings Performance Standard deadline arrived on June 1, 2026, for Tier 1 buildings larger than 220,000 gross square feet. Commerce says owners in that group who have not obtained an approved compliance, exemption or extension application may face administrative penalties. However, Commerce has not established a schedule for sending its first violation notices.
Commerce also released the 2026 edition of its integrated Clean Buildings Performance Standard in August 2026. Building owners and their advisers should use that edition rather than relying on older summaries or third-party materials.
The incentive balances have also changed. Commerce reported that, as of July 2026, $16 million of the $75 million Tier 1 incentive allocation had been reserved, leaving $59 million. As of September 24, 2026, nearly $11.8 million in Tier 2 incentives had been awarded and more than $138 million of the $150 million allocation remained. Commerce also reported that utilities had paid more than $6 million in Tier 2 incentives.
Tier 1 Early Adopter Incentive
The Tier 1 program is primarily for covered commercial buildings larger than 50,000 square feet that demonstrate early compliance with the Clean Buildings Performance Standard. Commerce also says multifamily buildings larger than 50,000 square feet may qualify under separate Tier 1 provisions and advises owners to contact its incentive team for details.
An eligible Tier 1 owner may receive a one-time base incentive of $2 per square foot, excluding parking and unconditioned or semi-conditioned space, plus 5 cents per kBtu of energy saved beyond the program’s stated 15-kBtu energy-use-intensity threshold. The award cannot cover more than half the cost of the energy-saving measures identified through the required energy audit.
Commerce lists several requirements, including service from at least one participating energy utility, an energy audit, full compliance with the standard and achievement of the applicable energy-use-intensity target. A utility that does not pay Washington public utility tax cannot participate in this incentive structure.
The remaining Tier 1 application deadline is:
- June 1, 2027: Buildings larger than 50,000 but smaller than 90,001 gross square feet.
Commerce states that the Tier 1 incentive application deadline has already passed for every building larger than 90,000 square feet. Owners should not interpret the reported $59 million balance as reopening those expired application periods.
Tier 2 Early Adopter Incentive
The Tier 2 program launched on July 1, 2025. It generally covers commercial buildings between 20,000 and 50,000 square feet and multifamily residential buildings larger than 20,000 square feet. Commerce’s incentive page describes the supported size range as 20,000 to 50,001 square feet; an owner near a boundary should confirm the building’s classification directly with Commerce before relying on that description.
The base Tier 2 incentive is 30 cents per square foot. To qualify, an owner must benchmark the building’s energy use, identify its energy-use-intensity target, and develop and implement an energy management plan and an operations and maintenance program.
Tier 2 buildings must identify an energy-use-intensity target, but Commerce says they are not currently required to meet an energy performance metric. This is an important distinction from Tier 1 requirements.
Multifamily owners who sign the required Anti-Displacement Agreement may be eligible for an enhanced incentive of up to 75 cents per square foot or the estimated cost of compliance, whichever is lower. Commerce reviews the documentation and calculates the actual incentive.
July 1, 2027 is the deadline for all Tier 2 covered buildings to submit their compliance and incentive applications. Because awards are first-come, first-served, waiting until the deadline could increase the risk that available funding or processing time becomes constrained.
How payments work
Commerce reviews compliance and incentive applications, certifies awards and tells participating utilities the approved amounts. The utility—not Commerce—then pays the building owner. When multiple participating utilities serve a property, payments may be divided according to each utility’s share of the building’s energy use.
Large utilities with more than 25,000 customers are generally required by state law to participate. Participation is voluntary for smaller utilities. Building owners should nevertheless verify their specific electric, gas or thermal-energy provider on Commerce’s current participating-utility list. Owners may also need to give their utility a completed Form W-9 before payment.
An application does not guarantee immediate payment. Commerce explains that the Department of Revenue and utilities must verify available public utility tax credits, and an incentive may be reduced or delayed to match a utility’s ability to issue the payment.
Practical steps for building owners
- Confirm the building’s tier and recorded floor area. Use Commerce’s covered-building resources and resolve any discrepancy in ownership or square-footage records.
- Check the correct deadline. Do not confuse the compliance schedule with an expired incentive deadline. For Tier 1 buildings above 90,000 square feet, the early-adopter incentive application period has passed even when other compliance work remains.
- Verify utility participation. Check every utility serving the building. Contact Commerce if a small utility is not listed or if multiple utilities supply the property.
- Start the required technical work. Depending on the tier, this can include ENERGY STAR Portfolio Manager benchmarking, an energy audit, an energy management plan, an operations and maintenance program, and documentation of the applicable target or compliance pathway.
- Use the Clean Buildings Portal. Submit compliance, exemption, extension and incentive materials through the official system. Keep confirmation records and respond to requests for additional documentation.
- Ask Commerce about unresolved cases. Commerce offers customer-support forms, monthly office hours and a Clean Buildings Helpdesk. Owners of buildings near a tier boundary or with mixed uses should obtain program-specific guidance.
A warning about unofficial outreach
Commerce says some owners have received letters, robocalls or marketing materials that appear to come from the state but may be misleading. Owners can ask the Clean Buildings team to verify suspicious communications. A private consultant’s message is not proof that an application was filed, an extension was approved or an incentive was reserved.
Official sources
- Washington Commerce: Energy Grants and Incentives for Homes and Buildings
- Washington Commerce: Tier 1 Early Adopter Incentive Program
- Washington Commerce: Tier 2 Early Adopter Incentive Program
- Washington Commerce: Clean Buildings Performance Standard
- Washington law: RCW 19.27A.220
Last Verified: October 4, 2026