The Tier 1 Early Adopter Incentive program offers eligible building owners a one-time incentive payment for demonstrating early compliance with the Clean Buildings Performance Standard. Incentive funds are limited to $75 million. See the state energy performance standard, RCW 19.27A.220, for more information.
Commerce reviews and approves compliance and incentive applications, certifies incentive awards, and communicates award amounts to utilities. After approval, building owners receive incentive payments directly from their utility provider on a first-come, first-served basis. See the list participating utilities.
The application is processed through the Clean Buildings Portal. Comply early and apply to ensure funding is available.
Program guidelines
An eligible Tier 1 building owner who demonstrates early compliance with the Clean Buildings Performance Standard may receive a one-time base incentive payment of $2 per square foot, excluding parking, unconditioned or semi-conditioned spaces, plus 5 cents per kilo British thermal unit (kBtu) of energy saved over 15 energy use intensity (EUI), a method that measures and compares how much energy a building uses relative to its size.
This incentive can cover up to half the cost of the energy-saving measures identified in the energy audit.
Requirements:
- The building must be a Tier 1 covered building or multifamily building over 50,000 square feet.
- The building must be served by at least one participating electric utility, gas company or thermal energy company providing or delivering energy services. See Tier 1 participating utilities.
- This state incentive can be administered in addition to other funding sources.
- Utility providers who don’t pay public utility taxes are not eligible to participate.
- The building must be 15 energy use intensity (EUI) or more above the target..
- The building must be in full compliance with the Clean Buildings Performance Standard and meet its energy use intensity target (EUIt).
- Building energy efficiency measures are identified through an energy audit.
Program application deadlines:
- For a building with more than 90,000 gross sq. ft. but less than 220,001 gross sq. ft. through June 1, 2026.
- For a building with more than 50,000 gross sq. ft. but less than 90,001 gross sq. ft. through June 1, 2027.
- The application deadline for buildings with more than 220,000 gross sq. ft. has passed.
Application instructions
Tier 1 Incentive Guidebook
The Tier 1 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 1 Early Adopter Incentive program guidebook (PDF).
Utilities participating 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 does not participate?
If your utility doesn’t participate, 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 fact sheet (PDF) for additional information.
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:
- Department of Revenue slide deck (PDF)
- Utility Providers: How to participate in the incentive programs (PDF)
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).
- Chapter 194-50 WAC
- 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
- Building Efficiency and Clean Operations Network (BEACON) Fellowship Project
- Building Owners and Managers Association (BOMA) Preventative Maintenance Guidebook Building Systems Useful Life Table (PDF)
- 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)
- Energy Star Portfolio Manager
- Tier 1 Early Adopter Incentive Estimator (Excel)
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.