Launched on July 1, 2025, the Tier 2 Early Adopter Incentive Program supports buildings between 20,000-50,001 square feet, including multifamily residential buildings over 20,000 square feet. Through a partnership with Washington state utilities, Commerce is providing $150 million in incentives to help building owners make energy-efficient upgrades.
Commerce will review and approve compliance and incentive applications, while building owners will receive incentive payments directly from their utility provider on a first-come, first-served basis. See the list of participating utilities. You can find the application process on the Clean Buildings Portal, so apply early to comply and ensure funding is available.
Program guidelines
The program offers a base incentive of $0.30 per square foot to building owners who benchmark their buildings’ energy use, identify an energy use intensity target (EUIt), and develop and implement an energy management plan and operations and maintenance program. Multifamily building owners who are willing to sign an Anti-Displacement Agreement may be eligible for an enhanced incentive amount of $.75 per square foot. The enhanced incentives qualifications may be expanding within the next few months. You can receive the latest incentive updates by subscribing to Clean Buildings updates on the right side of this page.
Tier 2 Incentive Guidebook
The Tier 2 Early Adopter Incentive Guidebook is essential reading as it provides all processes and requirements for applying to the Tier 2 Incentive Program. This guidebook does not cover all elements of the Clean Buildings Performance Standard that are otherwise covered by law or rule. Download the Tier 2 Early Adopter Incentive program guidebook (PDF).
Legislation and additional compliance details
Please refer to RCW 19.27A.220 for the legislation that established this program and visit the CBPS Tier 2 compliance webpage for additional compliance information. You can request access to the Clean Buildings Performance Standard integrated document, which includes the full glossary of terms, along with forms and templates from the Clean Buildings Performance Standard. Mandatory compliance is detailed in RCW 19.27A.210, which establishes the Clean Buildings Performance Standard, and ASHRAE Standard 100-2018 with Washington state amendments (WAC 194-50). Please note that Tier 2 buildings are only required to identify a EUIt at this time. They aren’t required to meet a performance metric.
Utilities that participate in the Early Adopter Incentive program and supply energy to buildings issue incentive payments. Incentives are funded by state public utility tax credits. Commerce manages this program in coordination with participating utilities and the Washington State Department of Revenue (DOR), which refers to it as the public utility tax credit for energy efficiency incentive payments.
RCW 19.27A.240 requires qualifying utilities with over 25,000 customers to participate in the program. For utilities with less than 25,000 customers, participation is voluntary. View the full list of participating utilities.
When a building is served by multiple participating utilities, incentive payments are allocated based on each utility’s share of the building’s energy use. When a Tier 2 building is served by one participating utility and one non-participating utility, Commerce can authorize the participating utility to administer the total incentive payment for a Tier 2 covered building.
What if my utility is not participating?
If your utility is not participating, please reach out to them and express your desire to apply for incentives through the Clean Buildings Early Adopter Incentive Program, and request that they opt into the program.
W9 Requirement: Building owners may need to provide a completed W9 form to their utility providers in order to receive incentive payments.
The payment process
- Commerce calculates the incentive for each participating utility, by fuel type.
- The base incentive payment is calculated at 30 cents per square foot of gross floor area, excluding parking, unconditioned, or semi-conditioned spaces.
- Enhanced incentive payments are calculated at 75 cents per square foot or the listed cost of compliance, whichever is lower.
- Commerce will notify each utility administering incentive payments and the DOR regarding verified applications for incentive funds reservation. Utilities and the DOR will determine if tax credits are available and approve the incentive calculation. Incentive payments calculations may be reduced or delayed to match the utility’s ability to make the payment.
- Incentive calculations and payments are made based upon the proportion of energy use by fuel type. All incentive payments will come directly from participating utilities to the building owners.
Review the Department of Revenue factsheet (PDF) for additional information.
In 2024, House Bill 1976 allowed for a financial “enhancement” in addition to the Tier 2 Early Adopter Incentive Program. This enhancement increases the incentive amount to 75 cents per square foot for multifamily building owners who commit to anti-displacement measures. Details:
- Building owners who rent or lease to residential tenants and are willing to commit to an Anti-Displacement Agreement (signed Exhibit A) are eligible for the enhanced incentive regardless of their building’s location within Washington state.
- This attestation needs to be uploaded as an attachment to a compliance/incentive application. Download the Anti-Displacement Agreement (PDF).
Resources
On November 14, 2024, the Tier 2 Incentive Team held a Utility Provider Focus workshop that included a Department of Revenue presentation, portal application processes, data uploads, barriers, responsibilities, payment timing, and funding allocation needs. Access these resources:
For more information, please review the Department of Revenue fact sheet (PDF) and the process for claiming credits (PDF). Utilities that don’t pay public utility taxes are ineligible to participate in the Early Adopter Incentive Program. Commerce will compile and submit a report of all incentives allocated, by utility, to the DOR. For inquiries related to claiming tax credits, please contact the Taxpay Account Administration at 360-705-3218.
- Participation Requirement: If a utility decides to voluntarily engage in the incentive programs, no contract with Commerce is necessary. Instead, the utility should email CBPSIncentives@commerce.wa.gov to inform Commerce of their participation and provide relevant contact details. Reports of approved applicants are available to utilities upon request.
- Providing approver information: Commerce requests that utilities participating in the incentive program send contact information for the individual who will approve incentive payment amounts in the Clean Buildings portal. Please email this information to CBPSIncentives@commerce.wa.gov with any updates.
Note: A person who is a building owner or acting on behalf of a building owner in the Clean Buildings Portal cannot simultaneously serve as a utility approver in the portal.
- W9 requirement: Building owners must submit a completed W9 form to their utility to receive incentive payments.
- Access the Clean Building Performance Standard (CBPS) integrated document (on Smartsheet).
- 19.27A.200 – Definitions
- 19.27A.210 – State energy performance standard
- 19.27A.220 – Early adoption incentive program
- 19.27A.230 – Limit on early adoption incentive payments
- 19.27A.240 – Early adoption incentive payment administration
- ASHRAE Standard 100-2018
- ASHRAE Standard 211-2018 (PDF)
- Building Owners and Managers Association (BOMA) Preventative Maintenance Guidebook Building Systems Useful Life Table (PDF)
- Chapter 194-50 WAC
- Commercial building incentives and efficiency information from Washington state utilities (PDF)
- Database of State Incentives for Renewables & Efficiency (DSIRE)
- Department of Revenue (DOR) factsheet (PDF)
- DOR process for claiming credits (PDF)
- Energy Star Portfolio Manager
- HB 1257 2019 session law (PDF)
Learn what funding distributions are, what “enhanced amounts” are, and additional items:
- Aug. 15, 2024, Funding Distribution workshop slide deck (PDF)
- Aug. 15, 2024, Funding Distribution workshop recording (YouTube)
- Aug 15., 2024, Funding Distribution workshop questions and answers (PDF)
December 12, 2024, workshop: – Finalizing the program
Office hours
Join the Clean Buildings staff outside of our scheduled trainings and workshops to ask questions, talk through scenarios, and more. We host office hours on the fourth Tuesday of every month from 10-11a.m.