Complying with the Washington State Clean Buildings Standard - House Bill 1257

What is the Clean Buildings Standard?

The Clean Building Standard enacted by Washington State Legislative House Bill 1257 in 2019 is a performance-based energy efficiency framework focused on existing buildings greater than 50,000 square feet (Tier 1 buildings). This framework provides each applicable building with an Energy Use Intensity (EUI) target based on use and climate zone. Each facility must meet or beat its EUI target one of the two years prior to reporting. Future reporting is required every five years going forward. Building owners can submit before their mandatory dates, and incentives are available to early adopters of the program.

In 2022 the Clean Buildings Expansion bill was signed into law. The expansion added Tier 2 buildings that must also engage in energy efficiency benchmarking and planning. Tier 2 buildings are defined as buildings between 20,000 square feet and 49,000 square feet. In addition, multi-family buildings larger than 50,000 square feet are also included.

What Types of Buildings are Affected?

The standard applies to all Tier 1 and Tier 2 buildings. Under this standard, building owners are the specific entity responsible for meeting requirements.

How do you comply?

Tier 1 building owners comply with this mandate by ensuring their facility’s EUI is less than their building type EUI target by reporting deadlines. Building EUI must be tracked using the EPA’s ENERGY STAR Portfolio Manager®. Building owners and operators must also develop and document an Energy Management Plan and an Operating and Maintenance (O&M) program. Each facility must implement its O&M plan one year before its compliance date. Buildings may require additional operational and maintenance services or upgrades and possible capital expenditures to achieve the necessary EUI targets. Besides meeting EUI targets and developing O&M and an Energy Management Plan, building owners must complete and submit Commerce forms (Compliance Forms A, B, and C).

Tier 2 building owners must benchmark their facility, implement an energy management plan, and implement an O&M program by their reporting deadline of June 1, 2027.

What Happens if You Do Not Comply?

Commerce will penalize building owners in the case of non-compliance. Penalties of up to $5,000 annually plus a fine of up to $1 per year per square foot will be assessed for Tier 1 buildings. Fines are not to exceed 18 months of accrued penalty. Penalties for Tier 2 buildings could be up to $0.30 per square foot for each five-year compliance period.

Early Adopter and Mandatory Compliance Dates

Facility Square Footage (Excluding Parking)	Early Adopter Incentive Submission Dates	Mandatory Compliance Dates
Tier 1 Buildings 220,000 square feet or greater	July 1, 2021 – June 1, 2025	June 1, 2026
Tier 1 Buildings 90,000 – 199,000 square feet	July 1, 2021 – June 1, 2026	June 1, 2027
Tier 2 Buildings 20,000 – 49,000 square feet	–	June 1, 2027
Tier 1 Buildings 50,000 – 89,000 square feet	July 1, 2021 – June 1, 2027	June 1, 2028

Exceptions for Buildings

The building did not have a certificate of occupancy or a temporary certificate of occupancy for all 12 months prior to the building owner’s compliance schedule.
The building meets at least one of the several specific conditions of financial hardship.
The building was not 50% leased throughout the 12 months prior to the building owner’s compliance schedule.
The primary use of the building is manufacturing or other industrial purposes.
The building is an agricultural facility.

How Can ATS Help?

ATS has the expertise and know-how to be your Clean Buildings Standard partner. We are experts in your building automation equipment and sequencing, and we can assist your team in setting up your Portfolio Manager® account. If you need assistance meeting your building’s EUI target, ATS has low-cost energy and operational efficiency solutions. ATS can also assist with developing and implementing the required facility energy management and O&M plans. If you need to make significant improvements, ATS can help you navigate the incentive program and ensure you make the improvements that significantly impact your facility’s energy use.

Contact an ATS representative at (425) 251-9680 or info@atsinc.org today to discuss your Clean Building Standard needs.

Navigating the Standard – Tier 1 Buildings

The initial step to complying with the Clean Buildings Standard is to ensure your building is registered and your building’s data is up to date with the ENERGY STAR Portfolio Manager® website. Portfolio Manager® is an online energy management and tracking tool used to determine your facility’s EUI. Once you assess your building’s EUI, action will need to be taken regardless of whether your building meets its EUI target. All building owners will need to submit Commerce forms, an Energy Management Plan, and an O&M plan. Depending on how close your building’s EUI is to its target, it may need an energy audit to identify upgrades to improve the facility’s EUI score. If your facility’s EUI is significantly greater than the target (approximately more than 10 points over), you may need to plan for capital expenditures to meet the standard. ATS is well versed in all the available options and incentives available to meet this standard. Often there will be low-cost options to improve your EUI score.