Quick answer · as of
Does Tier 2 apply to my type of building?
Tier 2 covers almost every kind of Washington building with more than 20,000 and up to 50,000 gross sq ft of commercial, hotel, motel, dormitory or apartment space, not counting parking: offices, retail, restaurants, medical offices, schools, churches and hotels alike. Apartment buildings over 20,000 sq ft are Tier 2 at any size (RCW 19.27A.200, subsection 26). The law doesn't sort buildings by what they're used for; it counts floor area. Warehouses and factories are the main types that can apply to be exempted. Every covered building files by July 1, 2027, and each can get up to $0.30 per eligible sq ft back for it.
Washington Clean Buildings Tier 2, explained in 60 seconds · 1:05 · Transcript
Did you get a letter from the state about Clean Buildings? Most owners did, in July 2025.
It means your building falls under Washington's Clean Buildings law. That's called Tier 2.
It covers commercial buildings over 20,000 and up to 50,000 square feet, and apartment buildings over 20,000.
By July 1, 2027, you have to file an energy benchmark and two plans with the state Department of Commerce.
Miss it, and the fine can reach 30 cents per square foot.
File early, and the state pays you that same 30 cents. That's up to 9,000 dollars on a 30,000 square foot building.
As of November 2026, only about one in thirteen buildings has filed.
Tier Two Partners files it all for you, usually in two to four weeks.
Check yours today. Get a free quote, or book a call with us to learn more, at tiertwopartners.com.
Which building types are Tier 2?
Here is each common type at a glance, for a building of more than 20,000 and up to 50,000 sq ft not counting parking, unless the row says otherwise.
| Building type | Tier 2? | What to know |
|---|---|---|
| Office, bank, medical office | Yes | Counted as nonresidential space |
| Retail store, restaurant, strip center | Yes | All the shops in one building count together, not unit by unit |
| School, college building | Yes | Public and private alike; K-12 and college campuses can group buildings |
| Church, mosque, synagogue, temple | Yes | Annex Y lists no exemption for religious use |
| Hotel, motel, dormitory | Yes | Named in the law alongside commercial space |
| Apartment building | Yes, at any size over 20,000 sq ft | Six or more units, lived in mainly by permanent residents |
| Warehouse, self-storage | On the list, often exemptible | Unheated space comes off for the exemption test |
| Factory, workshop | On the list, often exemptible | Exempt if more than half is manufacturing or industrial use |
| Condo building | On the list | The owners' association is the building owner |
| Building on tribal land under tribal codes | No | Owned and operated on federally recognized tribal lands; the owner can ask to take part |
Over 50,000 sq ft of commercial, hotel, motel or dormitory space, a building is Tier 1 instead, with its own deadlines (RCW 19.27A.200(25)). Step-by-step size check: Does Tier 2 apply to my building?
Do schools have to comply with Tier 2?
Yes. A school building in the Tier 2 size range files like any other covered building, whether it's a public school district's or a private school's. Schools have one option most owners don't: K-12 and college campuses can group their buildings and comply as a campus, as can buildings that share energy meters on contiguous property or a campus district energy system (Portal user guide, August 2026). Exemptions still apply building by building, never to a whole group (WAC 194-50-160, Annex Y, Y4.1).
Do churches have to comply with Tier 2?
Yes. A church, mosque, synagogue or temple over 20,000 sq ft of floor area, not counting parking, is a Tier 2 building. Annex Y's exemption list has no exemption for religious use, so a house of worship qualifies only through the same general exemptions as any other building (WAC 194-50-160, Annex Y, Y4.1). Fellowship halls, classrooms and offices in the same building all count toward the size. The upside is the same as for everyone: up to $0.30 per eligible sq ft back for filing, up to $9,000 on a 30,000 sq ft building.
Do warehouses and factories have to comply with Tier 2?
They're on Commerce's list if their gross floor area is in range, but many qualify for an exemption. Under Annex Y, section Y4.1, a Tier 2 building can be exempted if:
- Its heated space is under 20,000 sq ft: gross floor area minus unconditioned and semi-heated space, as the Washington State Energy Code defines them. A mostly unheated warehouse often meets this.
- More than 50% of it is manufacturing or industrial use, building code occupancy groups F or H.
An exemption isn't automatic. The owner applies on Commerce's Form H no later than 180 days before the deadline, about January 2, 2027 (Annex Y, Y4.1). A warehouse with heated offices that doesn't qualify still files, and the incentive is figured on the heated space only, because unconditioned and semi-heated areas come off (RCW 19.27A.220(8)(b)). Every exemption, explained: Washington Clean Buildings Tier 2 law, explained
What about apartments, condos and mixed-use buildings?
- Apartments: a multifamily building has sleeping units or more than five dwelling units, lived in mainly by permanent residents (RCW 19.27A.200(19)), and it's Tier 2 at any size over 20,000 sq ft. Who files and who signs: Who files Tier 2 for apartment buildings?
- Condos: the owners' association is the building owner (CBPS 017). Tier Two Partners opens condo buildings soon; add yours and join the waitlist.
- Mixed use: add the apartment, commercial, hotel, motel and dormitory areas together, then leave out parking. 12,000 sq ft of shops under 15,000 sq ft of apartments is 27,000 sq ft, so it's Tier 2 (RCW 19.27A.200(26)).
Does every building type file the same thing?
Yes. Every Tier 2 building files the same three things by July 1, 2027: a 12-month energy benchmark, an Energy Management Plan and an Operations and Maintenance program. What changes by type is the energy target a Qualified Energy Manager calculates: Commerce publishes a target by building activity, so a building with an office, a restaurant and retail space gets a blended target from each part's floor area (CBPS 029). Tier 2 buildings report that target but don't have to meet it yet. The full list: What Tier 2 owners must file by July 1, 2027
How does Tier Two Partners file for my building type?
The same way for every type: your part takes about 10 minutes, and we do the rest. You add the building, connect your utility account, answer a few questions about how each part of it is used, and sign once. We pull the energy data, set the building's activity types so its target comes out right, build the benchmark, Energy Management Plan and Operations and Maintenance program, have a Qualified Energy Manager review and sign, and file your compliance and incentive application together, typically 2 to 4 weeks after your information is in (EST.).
Our price is $0.15 per eligible square foot for one building, down to $0.10 for 20 or more, with the Qualified Energy Manager included: one fee, no separate QEM bill. On a 30,000 sq ft school, church or office, that's $4,500 all in against up to $9,000 in incentive from a $150 million fund that pays first come, first served, with over $138 million left as of September 24, 2026 (Commerce). Every provider's fee, ours included, is owed whether or not the incentive is paid, because the fee pays for the filing itself.