Tier 2 deadline, penalties and what compliance really costs
If you own a commercial building of 20,001 to 50,000 square feet, or a multifamily building over 20,000 square feet, in Washington, the Clean Buildings Tier 2 rule applies to you. Here are the dates, the downside of missing them, and the realistic range of costs.
The deadline: 1 July 2027
RCW 19.27A.250 requires Tier 2 owners to submit their reports by 1 July 2027, and every five years after that. Early filing has been open since 1 July 2025. Commerce also says all Tier 2 buildings should submit both the compliance application and the incentive application by 1 July 2027.
If you cannot finish in time, the rule allows an extension request filed between six months before and six months after the deadline, on set grounds. Since the August 2026 rule change, one ground covers owners who have finished benchmarking but need more time for the Energy Management Plan and O&M Program. An extension is a request, not an automatic grant.
Penalties
| Item | What the rule says |
|---|---|
| Maximum penalty | Up to $0.30 per square foot of gross floor area per five-year compliance period (RCW 19.27A.250(3)). A 25,000 sq ft building faces up to $7,500. |
| Process | A Notice of Violation first, then at least 30 calendar days to cure: submit, apply for an extension or exemption, pay, or request a hearing. |
| Curing in time | Owners who comply within the cure window have fines waived and may still be eligible for the incentive. |
| Paying instead | Owners who choose to pay the penalty lose incentive eligibility. |
The "$5,000 plus $1.50 per square foot" figure you may see quoted applies to Tier 1 buildings, not Tier 2.
The incentive usually covers the cost
The Tier 2 Early Adopter Incentive (RCW 19.27A.220) pays $0.30 per square foot of eligible floor area once your filing is accepted, paid through your utility. Multifamily buildings can receive up to $0.75 per square foot by signing Commerce's Anti-Displacement Agreement. The fund is $150 million; Commerce reported about $13.6 million awarded and more than $136 million remaining as of 24 October 2026. Payment is first come, first served and may be reduced or delayed to match what utilities can pay.
Commerce's own March 2026 report to the Legislature said 30 cents per square foot is covering the full cost of compliance for most buildings. A 25,000 sq ft building would receive about $7,500.
What compliance costs
| Route | Typical price | What you still do yourself |
|---|---|---|
| Do it yourself with Commerce's free templates and training | $0 plus your time, often several weeks | Everything |
| Document kit (drafts prepared for you) | $690 (our kit) to $2,250 (Evergreen Compliance's Complete package) | Review, implement the O&M log, QEM sign-off, upload and submit |
| Full-service vendor | About $3,750 to $12,000 for a 20,000 to 50,000 sq ft building (for example Tier Two Partners at $0.15/sq ft, Vert Energy from $12,000) | Provide data and access; the vendor files |
Vendor prices are as published on their sites in October 2026. If no one on your team qualifies as a Qualified Energy Manager, add the cost of an outside QEM's review and signature; this guide explains how to get a flat-fee quote.
What to do this month
- Confirm your tier and estimate your incentive (free, two minutes).
- Find your Commerce letter and set up your Secure Access Washington login.
- Start collecting twelve consecutive months of utility data; benchmarking takes the longest to arrange.
- Decide who your QEM will be. Read the QEM rules.
- Follow the step-by-step filing checklist.