Quick answer · as of
What happens if you miss the Tier 2 deadline?
You get a notice, then at least 30 days to file before any fine. After July 1, 2027, Commerce can send a Tier 2 owner a "notice of violation, opportunity to correct, and intent to assess penalties". The owner then has at least 30 calendar days to act. File your compliance documents in that time and the fine is waived. Do nothing and the fine is the maximum, up to $0.30 per square foot of gross floor area, the same rate as the early adopter incentive (WAC 194-50-160, Annex Y, Y5).
The easy way to file Tier 2 · 1:03 · Transcript
Tier 2 sounds complicated. Energy data, benchmarks, plans, and a Qualified Energy Manager.
Filing it doesn't have to be. Tier Two Partners is the modern way to file. It works a lot like TurboTax.
Add your building in under a minute. You see your deadline, your incentive, and your price, right away.
Connect your utility account, and we pull your energy data for you. No spreadsheets. No digging for bills.
Answer a few simple questions, and sign once. That's your part done, in about ten minutes. You can even do it from your phone.
Then we do the rest. We build your plans, a Qualified Energy Manager signs them, and we file with the state and track it to approval.
Simple. Intuitive. Usually done in two to four weeks.
Check yours today. Get a free quote, or book a call with us to learn more, at tiertwopartners.com.
What are your options once a notice arrives?
You have four ways to respond within 30 days (WAC 194-50-160, Y5.3.1):
- Submit your compliance documents: the energy benchmark, Energy Management Plan and Operations and Maintenance program, with the Portal forms. This is the one that clears the fine.
- Apply for an extension or an exemption, if your building qualifies.
- Tell Commerce you intend to pay the penalty instead of complying.
- Ask for an administrative hearing to challenge the notice. The written request has to reach the address on the notice within 30 days of the notice date (Y5.7.1).
If you don't respond at all within 30 days, you give up your right to a hearing and Commerce can issue a final penalty order (Y5.3.2).
How much is the Tier 2 fine?
Up to $0.30 per square foot of gross floor area, set by state law (RCW 19.27A.250, (1)(d)(i)) and the state rule (Y5.4.1).
| Building size | Maximum fine |
|---|---|
| 25,000 sq ft | $7,500 |
| 35,000 sq ft | $10,500 |
| 50,000 sq ft | $15,000 |
The table uses the full $0.30 rate on gross floor area. The fine applies for each five-year compliance period, so a building that never files can be fined again the next cycle (Y5.4.1.2, Y3.1). Unpaid penalties also build up interest once they're past due (Y5.4.2), and an owner who doesn't comply may lose eligibility for the early adopter incentive (Y5.4.1.1). Commerce can also raise the rate for inflation by rule.
Can the fine be waived?
Yes, if you file within the 30 days. The rule says fines "shall be waived" when the owner responds in time with the compliance documents, or wins a challenge (Y5.4.1.1). So the notice is a last chance to file, not a bill. Paying the maximum instead of complying is allowed (Y5.4.1.2), but it costs the same as the incentive you'd have earned by filing, and the obligation comes back next cycle.
Can you get an extension?
A two-year extension is possible for set reasons, and you apply between six months before and six months after July 1, 2027 (WAC 194-50-160, Y3.2 Exceptions). The qualifying grounds include:
- Conditions beyond your control, such as a natural disaster or a shortage of goods or services.
- Buying the building in an arm's-length sale within the 12 months before the deadline.
- Financial hardship.
- Active or recent permitted construction that leaves you without 12 months of energy data.
An approved extension moves your date two years past July 1, 2027. It doesn't move you ahead in the incentive line, which pays first come, first served.
Can the fine be passed on to tenants?
No, as long as tenants cooperate. State law says penalties "may not be passed along to tenants" who give the owner utility data, access to their spaces, and reasonable answers to requests (RCW 19.27A.250, (1)(d)(i)). An owner who wants relief because a tenant wouldn't cooperate has to document it (Y5.4.1).
Is a letter about a fine real?
Check it before you pay anyone. A real notice comes from Commerce and gives you at least 30 days to file. A letter that says a fine is already due, or asks you to pay a third party, deserves a second look. How to check one is in Got a Tier 2 letter or call? How to tell if it's misleading.
Why file before the deadline instead?
Filing early earns the incentive and avoids the fine. The early adopter incentive pays $0.30 per eligible square foot from a $150 million fund that pays first come, first served, with over $138 million left as of September 24, 2026 (Is Tier 2 incentive money still available?). On a 35,000 sq ft building, filing on time puts up to $10,500 in your pocket; not filing can cost up to $10,500 in fines (EST.). What to file is in What Tier 2 owners must file by July 1, 2027. How many buildings have filed so far: Tier 2 by the numbers.
How does Tier Two Partners handle a late or rushed filing?
We start as soon as you sign, and build the full filing from your utility bills and service records. We prepare the benchmark, Energy Management Plan and Operations and Maintenance program, a Qualified Energy Manager reviews and signs, and we submit in the Portal with the incentive application. Our fee is $0.15 per eligible square foot for one building, down to $0.10 at 20 or more, with the Qualified Energy Manager included: no separate QEM fee. Every provider's fee, ours included, is owed whether or not the utility pays the incentive, because the fee pays for the filing itself. Prices side by side: How much does Tier 2 compliance cost?