The Early Adopter Incentive program provides incentives to building owners who demonstrate early compliance with the Clean Buildings Performance Standard (CBPS).
The Tier 1 Early Adopter Incentive Program is available now and applies to non-residential, hotel, motel and dormitory buildings greater than 50,000 ft2. An eligible building owner that demonstrates early compliance with the Clean Buildings Performance Standard may receive a one-time base incentive payment. Incentive funds are limited to $75 million. Reference RCW 19.27A.220 the state energy performance standard for more information.
The Tier 2 Early Adopter Incentive Program is being developed and covers buildings 20,000 – 50,000 ft2, including multifamily residential buildings over 20,000 ft2. The program offers an incentive to owners who benchmark their buildings’ energy usage, develop an energy management plan, and create an operations and maintenance program. $150 million is earmarked for Tier 2 incentives.
Tier 1 Incentive Program
Eligibility
- The building must be a Tier 1 or multifamily building over 50,000 sq. ft.
- The building must be served by at least one electric utility, gas company or thermal energy company providing or delivering energy services. Review the list of participating utilities.
- This is a state incentive and can be administered in addition to utility conservation incentives.
- Utility providers who do not pay public utility taxes are not eligible to participate in the Early Adopter Incentive program.
- The building must be 15 energy use intensity (EUI) or more above the target
- The building must be brought into full compliance with the Clean Buildings Performance Standard, and meet its energy use intensity target (EUIt).
Download the Tier 1 Early Adopter Incentive Guidebook (PDF).
At the start of the program, an eligible building owner who demonstrates early compliance with the Clean Buildings Standard may receive a one-time base incentive payment of $.85 per sq. ft, excluding parking, unconditioned or semi-conditioned spaces. This amount has increased to $2.00 per sq. ft. plus $0.05 per kBTU of energy saved over 15 EUI. The new incentive calculation is limited at 50% of the cost of energy efficiency measures being implemented from the energy audit. Current approved applicants can select the calculation that works best for their project. This table shows a comparison on the calculation of the new incentive amount and old incentive amount.
Sample Tier 1 Incentive program calculations
Original calculation | Enhanced calculation | |
|---|---|---|
| Incentive per square foot | $0.85 | $2.00 |
| Building Square Footage | 150,000 | 150,000 |
| Incentive Sub-total | $127,500 | $300,000 |
| Predicted Savings (kBTU over the 15 EU) | 250,000 | 250,000 |
| $0.05 per kBTU saved over the 15 EUI | 0 | $12,500 |
| Sample Tier 1 Incentive Calculation | $127,500 | $312,500* |
- The incentive is capped at 50% of the total cost of implemented energy efficiency measures. In the example above, the total project cost exceeded $625,000, so the incentive was not reduced.
Tier 2 Incentive Program
The Tier 2 Program covers buildings 20,000 – 50,000 ft2, including multifamily residential buildings over 20,000 ft2. The program offers an incentive of $0.30/ft2 to owners who benchmark their buildings’ energy, develop an energy management plan, and create an operations and maintenance program. $150 million is earmarked for incentives.
The Clean Buildings Team has finished the Tier 2 Incentive Program development workshop series and is currently incorporating public comments and feedback into the Tier 2 Early Adopter Incentive Guidebook.
Those interested can view recordings of the Tier 2 Early Adopter Incentive workshop series below and access the draft Tier 2 Early Adopter Incentive Guidebook.
- June 13, 2024 – Tier 2 Program Overview Kick-off, overview of Tier 2 what qualifies, requirements for complying, July 1, 2023 starting point for Benchmarking, EMP & O&M.
- August 15, 2024 – Funding Distribution – Funding Distribution, what is an “enhanced amount” only for multifamily, graduated level based on the different levels, underserved, low-income, Justice40, equity, HEAL act, etc…
- October 10, 2024, 11 am to 12:30 pm – Building Focus – Canceled
- November 14, 2024, 11 am to 12 pm – Utility Provider Focus – Q&A, DOR presentation, Portal application verification and approval, uploading data, barriers, responsibilities and requirements, timing of payment what works best, how much time does a utility need to earmark the funding?
- December 12, 2024, 11 am to 12 pm – Finalizing the Program – Finalizing the Program, 30 days for comment then finalize the guidebook.
Clean building performance grants
The Clean Building Performance Grants Program provide competitive funding for energy efficiency improvements in private and public buildings. Clean Building Performance Grants cut energy costs, reduce pollution, and create jobs in communities across the state. These grants support Tier 1 covered buildings and Tier 1 and Tier 2 covered Public Buildings with compliance with the Clean Building Performance Standard (CBPS).
Energy audits for publicly owned buildings
The Energy Audit Incentive for Public Buildings program has awarded $14.5 million to help publicly owned buildings cover the costs of energy audits necessary for compliance with the Clean Buildings Performance Standard (CBPS) and the Early Adopter Incentive (EAI) Program. Please note that the program has closed; however, be sure to check back for future funding opportunities.
Resources
The Tier 1 Early Adopter Incentive Guidebook serves to provide guidelines for the process of applying to the Incentive Program. The full glossary of terms, forms and templates are located in the Clean Buildings Standard. The guidebook does not cover elements of the Clean Buildings Standard that are otherwise covered by law or rule.
Mandatory compliance is detailed in RCW 19.27A.210, which establishes the Clean Buildings Standard, and ASHRAE Standard 100-2018 (link) with Washington State amendments (WAC 194-50).
- Download the Early Adopter Incentive Guidebook (PDF)
- Watch the Guidebook Overview video (YouTube)
Commerce manages the incentive program in collaboration with participating utilities and the Department of Revenue (DOR). Utilities that provide incentive payments to building owners receive a tax credit from the DOR, which can be applied against their Public Utility Tax liability. For more information, please review the Department of Revenue fact sheet (PDF) and the process for claiming credits (PDF). Utilities that do not 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: Utilities with more than 25,000 customers are mandated to participate in the program. Participation for utilities with fewer than 25,000 customers is voluntary. 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. Check out the list of Tier 1 incentive participating utilities
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 that 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.
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, requesting that they opt into the program.
W9 Requirement: Building owners must provide a completed W9 form to their utility providers in order to receive incentive payments.
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
- Building Owners and Managers Association (BOMA) Preventative Maintenance Guidebook Building Systems Useful Life Table (PDF)
- Energy Star Portfolio Manager
- DOR factsheet (PDF)
- DOR process for claiming credits (PDF)
- HB 1257 2019 session law (PDF)
- Chapter 194-50 WAC
- ASHRAE Standard 100-2018
- ASHRAE Standard 211-2018
- DSIRE
- Guidebook Overview video
- Commercial building incentives and efficiency information from Washington State utilities (PDF)
Office hours
A dedicated space outside of our scheduled trainings and workshops to connect with our Clean Buildings staff, ask questions, talk through scenarios and more. “Office Hours” are held on the 4th Tuesday of every month from 10:00 a.m. to 11:00 a.m. PT.