Washington State Clean Buildings Act: HB 1257 Compliance Guide for Building Owners

Washington State's Clean Buildings Act is one of the few statewide building performance standards in the country. Originally signed into law in 2019 as HB 1257, then expanded in 2022 and 2023, it covers commercial buildings over 50,000 square feet (Tier 1) and commercial and multifamily buildings over 20,000 square feet (Tier 2). The first compliance deadline is June 1, 2026 for the largest buildings.

If you own a covered building in Washington and you haven't started on compliance, you're running out of time.

What Is the Clean Buildings Act?

The Clean Buildings Act, formally known as the Clean Buildings Performance Standard (CBPS), requires existing buildings to meet energy performance targets based on ASHRAE Standard 100-2018 with Washington State amendments. The Department of Commerce administers the program.

The law targets the biggest energy consumers first: large commercial buildings. It then expands to smaller commercial buildings and multifamily housing. The objective is straightforward. Lower energy costs, reduce fossil fuel consumption, and cut carbon emissions from the state's existing building stock.

Who's Covered?

The standard applies to two tiers of buildings, each with different thresholds and timelines.

Tier 1: Commercial Buildings Over 50,000 Square Feet

Tier 1 was established under the original 2019 law (HB 1257). It covers non-residential buildings with a gross floor area exceeding 50,000 square feet. This includes offices, retail, warehouses, hotels, hospitals, and other commercial property types.

Tier 2: Buildings Over 20,000 Square Feet

Tier 2 was added when the law was expanded in 2022. It covers commercial and multifamily residential buildings with a gross floor area exceeding 20,000 square feet. This brought thousands of additional buildings into scope, including apartment complexes and smaller office buildings.

Exemptions

Agricultural buildings and certain industrial facilities are exempt. Buildings can also apply for an exemption if they can demonstrate that compliance is technically infeasible. But Commerce reviews these on a case-by-case basis, and they aren't handed out freely.

The Compliance Deadlines

Deadlines are staggered by building size. Larger buildings comply first.

Tier 1 Schedule

• June 1, 2026: Buildings over 220,000 square feet
• June 1, 2027: Buildings over 90,000 square feet (up to 220,000)
• June 1, 2028: Buildings over 50,000 square feet (up to 90,000)

Tier 2 Schedule

• July 1, 2027: All Tier 2 buildings over 20,000 square feet, including multifamily residential

What Compliance Looks Like

The standard is based on ASHRAE Standard 100-2018 with state-specific amendments codified in WAC 194-50. Each building type has an Energy Use Intensity target (EUIt) that it must meet.

Compliance Paths

There are two main paths to compliance:

• Meet the EUI target: If your building's Energy Use Intensity is at or below the target for your building type, you're compliant. Submit your benchmarking data and documentation to Commerce.
• Investment criteria path: If your building doesn't meet the EUI target, you can demonstrate compliance by investing in energy efficiency measures that meet specific cost-effectiveness criteria. You don't have to hit the EUI target, but you have to show that you've made reasonable investments to get closer.

Buildings can also apply for an exemption if neither path is feasible. But again, exemptions are reviewed individually and aren't guaranteed.

What You Need to Submit

Compliance documentation includes your building's energy benchmarking data, an energy management plan, and evidence that you've either met the EUI target or completed qualifying efficiency investments. Commerce has a detailed compliance document that outlines the exact requirements.

The Penalty Structure

Non-compliant Tier 1 buildings face penalties of up to $5,000 per year plus up to $1 per square foot per year. Penalties are capped at 18 months of accrued fines.

What That Means in Dollar Terms

A 100,000 square foot building could face $5,000 plus $100,000 in per-square-foot fines, totaling $105,000 per year. Over the 18-month cap period, that's $157,500.

A 250,000 square foot building could owe $5,000 plus $250,000, or $255,000 per year. With the 18-month cap: $382,500.

These aren't NYC-level fines, but they're significant. And unlike a one-time penalty, they accrue until you comply. The cap resets after each compliance cycle.

Incentives and Grants

Washington isn't just penalizing building owners. Commerce offers financial incentives for early compliance and efficiency improvements.

Early Adoption Incentives

Tier 1 and Tier 2 buildings that comply ahead of their deadline can receive incentive payments. The program is designed to reward building owners who take action early rather than waiting until the last minute. Check Commerce's CBPS Grants and Incentives page for current availability.

Utility Programs

Washington's major utilities, including Puget Sound Energy, Seattle City Light, and Pacific Power, all offer rebate programs for energy efficiency improvements. These can cover a meaningful portion of project costs for lighting, HVAC, building envelope, and controls upgrades.

Federal Tax Credits

The Inflation Reduction Act's Section 179D deduction allows building owners to claim up to $5.00 per square foot for qualifying energy efficiency improvements. For a 100,000 square foot building, that's a potential $500,000 tax deduction. Pair this with state incentives and the math on compliance starts looking much better.

What You Should Do Right Now

1. Determine Your Tier and Deadline

Check your building's gross floor area and figure out whether you're Tier 1 or Tier 2. Then look up your compliance deadline based on your building's size. If you're over 220,000 square feet, your deadline is June 1, 2026.

2. Benchmark Your Energy Use

If you haven't already, set up your building in ENERGY STAR Portfolio Manager and enter at least 12 months of utility data. This gives you your current EUI, which is the number that determines whether you meet the target or need the investment criteria path. Use our free compliance checker to see where you stand.

3. Get Your Energy Management Plan

Commerce requires an energy management plan as part of the compliance documentation. This isn't a full ASHRAE audit. It's a documented plan for how your building manages energy, including operations, maintenance, and planned improvements.

4. Hire a Qualified Energy Manager

The law references Qualified Energy Managers (QEMs) who can help with compliance. Commerce offers QEM training programs. Having a qualified professional on your team or under contract simplifies the compliance process significantly.

5. Use Commerce's Free Resources

The Clean Buildings Helpdesk offers free consultation. Commerce also holds monthly office hours on the fourth Tuesday of every month where you can ask questions directly. These resources are free and underused.

How Washington Compares to Other Jurisdictions

Washington is one of only a few states with a statewide building performance standard. Most BPS laws operate at the city level, like NYC's Local Law 97 or DC's BEPS program. A statewide standard means there's no escaping it by choosing a different city in the state.

The penalties are moderate compared to DC's $10 per square foot or NYC's $268 per ton. But the compliance infrastructure is solid: Commerce provides clear guidance, free helpdesk support, financial incentives, and a reasonable investment criteria path for buildings that can't hit the EUI target.

If you own buildings in multiple states or cities, you need to track compliance for each jurisdiction separately. That's what BPS Check is built for: one tool covering every major building performance standard in the country.

The Bottom Line

Washington's Clean Buildings Act is real, it's mandatory, and the first deadlines are imminent. The largest buildings are due June 1, 2026. Penalties accrue at up to $1 per square foot per year plus $5,000 annually.

The building owners who have already benchmarked, identified their compliance path, and started making improvements are in good shape. The ones who haven't need to move now. Commerce has made the compliance process clear and provided free support to help you through it.

Check where your building stands today.