Oregon’s Commercial Building Energy Performance Standard

As part of Oregon’s 2023 legislative climate package, the state advanced a commercial building energy performance standard. The standard would break the commercial sector down into two tiers with varied compliance requirements.

Tier 1 will include several types of commercial buildings larger than 35,000 square feet, which will be required to comply with an actual building performance standard between 2028 and 2030, depending on their specific size. Tier 2 buildings will only have to submit energy benchmarking reports, and will include similar commercial buildings between 20,000 and 35,000 feet, as well as multifamily residential, schools, dormitories, universities, and hospitals larger than 35,000 square feet.

Oregon’s Dept. of Energy will be tasked with rulemaking to establish a program and to set appropriate building energy targets for Tier 1 buildings, and establish a program for energy benchmarking for Tier 2 buildings. The Dept. of Energy will have the authority to impose civil penalties on building owners for non-compliance, as well as a $2 million incentive program for early and voluntary adopters of Tier 1 and Tier 2 building requirements.