Quick answer · as of
What is the Tier 2 early adopter incentive?
A Tier 2 building owner who files the required benchmark, Energy Management Plan and Operations and Maintenance program can apply for an early adopter incentive of $0.30 per square foot of eligible floor area. Your utility pays it, from a $150 million state fund that is paid out first come, first served, so no one can promise the money. As of September 24, 2026, Commerce reported about $11.8 million awarded and over $138 million left (Commerce). How much is left, and how long you can apply: Is Tier 2 incentive money still available?
How much does Tier 2 compliance cost? · 1:14 · Transcript
What does Tier 2 compliance cost? Less than you'd think.
You're paying for your energy data, two plans, and a Qualified Energy Manager's signature.
Some firms charge a flat fee per building, as high as 12,000 dollars.
Tier Two Partners charges 10 to 15 cents per square foot, and that includes the Qualified Energy Manager.
On a 30,000 square foot building, that's about 4,500 dollars, all in.
Now the good part. File early, and the state's incentive pays 30 cents per square foot. That's up to 9,000 dollars.
After our price, that leaves up to about 4,500 dollars.
Your utility pays it after the state approves your filing. First come, first served. So file early.
And we're the fastest. Some firms take six to ten weeks. We usually file in two to four.
Plus, our dashboard comes free, for life. It tracks every deadline, and every dollar of incentive coming your way.
Check yours today. Get a free quote, or book a call with us to learn more, at tiertwopartners.com.
How much is the Tier 2 incentive?
The base incentive is $0.30 per square foot of gross floor area, not counting parking, unconditioned or semi-conditioned space (RCW 19.27A.220, section 8(b)). Commerce's own examples: a 25,000 sq ft building would be eligible for $7,500, and a building with 45,687 sq ft of eligible space for $13,706.10 (CBPS 043).
| Eligible floor area | Incentive at $0.30 per sq ft |
|---|---|
| 25,000 sq ft | $7,500 (Commerce's example) |
| 35,000 sq ft | $10,500 (EST.) |
| 45,687 sq ft | $13,706.10 (Commerce's example) |
These are the most the formula gives; what your utility actually pays can be lower, as explained below.
Which square feet count toward the incentive?
Eligible floor area is the building's gross floor area minus parking, unconditioned and semi-heated space. In the Clean Buildings Portal, you enter the square footage to subtract, including any privately owned condo units, and the Portal works out the "Incentive Eligible GFA" itself (CBPS 043, step 5).
Gross floor area is measured between the outside surfaces of the exterior walls and includes lobbies, restrooms, mechanical rooms, storage and elevator shafts. It does not include outside bays or docks (Tier 2 Incentive Guidebook, glossary).
Who qualifies for the Tier 2 incentive?
A building qualifies if it meets all three of these (Tier 2 Incentive Guidebook):
- It is a Tier 2 covered building: commercial space over 20,000 and up to 50,000 sq ft, or a multifamily building over 20,000 sq ft of any size, not counting parking.
- It is served by at least one participating utility: an electric, gas or thermal energy company in the program. Utilities with more than 25,000 Washington customers must take part; smaller ones can choose to. Commerce publishes the list of participating utilities.
- It meets the Tier 2 compliance requirements: benchmarking, an Energy Management Plan and an Operations and Maintenance program.
Buildings owned and operated on federally recognized tribal land don't have to comply, but they can volunteer and apply for the incentive after signing an agreement with Commerce.
How do you apply for the Tier 2 incentive?
There's no separate form. The incentive application is built into the Tier 2 compliance filing in the Clean Buildings Portal (CBPS 043). After Form C, the Portal asks you to:
- Say whether the building is multifamily (Tier 2 for apartment buildings).
- Enter the square footage that doesn't count (parking, unconditioned space, privately owned condo units).
- Pick every participating utility that serves the building, with the account number and fuel type for each.
- Enter your estimated cost of compliance (benchmarking, Operations and Maintenance program, Energy Management Plan).
- Attach the documents and submit.
A Qualified Energy Manager completes the application, and each owner signs with their own Secure Access Washington login. Applications are accepted from July 1, 2025 through June 1, 2030 (RCW 19.27A.220, section 6(b)), but the $150 million can run out before then.
Every Portal step, how long Commerce's review takes and how the utility pays: How to claim the Tier 2 incentive, step by step.
Who pays the incentive, and can it be less than expected?
Your utility pays it, and yes, it can be partial or zero. The utility funds the payment by claiming a credit against its state public utility tax. If the utility has used up the credit it can take in a period, the payment can shrink or drop to zero (Tier 2 Incentive Guidebook, Incentive Payment).
After Commerce approves your filing, it notifies your utilities. The utility and the Department of Revenue then confirm the amount, and the utility will most likely ask you for a W-9 before paying. If two participating utilities serve the building, each pays in proportion to its share of the energy. If one participating and one non-participating utility serve it, Commerce can let the participating one pay the whole amount.
Why apply early?
Commerce reviews filings in the order they arrive, and the fund is first come, first served. Filing early puts your building ahead of the rush before the July 1, 2027 compliance deadline. Filing on time also avoids the fine of up to $0.30 per square foot described in What Tier 2 owners must file by July 1, 2027.
To see what doing it yourself, hiring a consultant or using a filing service would cost against the incentive, compare the options. Published prices side by side: How much does Tier 2 compliance cost?
Tier Two Partners prepares the benchmark, Energy Management Plan and Operations and Maintenance program from your utility bills and service records. A Qualified Energy Manager reviews and signs, and we file the compliance and incentive application together.