You Lease the Building. CBPS Can Still Reach Your Bottom Line.

If you lease your commercial space, your first reaction to Washington’s Clean Buildings Performance Standard may be simple: “I do not own the building, so this does not affect me.” Legally, the building owner is responsible for compliance. Practically, however, tenants are often closely connected to the building’s energy use, utility accounts, operating decisions, and expenses. That means a requirement addressed to the owner can still affect the business operating inside the building.

The Clean Buildings Performance Standard, commonly called CBPS, is a Washington law designed to improve how covered buildings manage energy. The Washington State Department of Commerce administers the program. Tier 2 generally covers commercial buildings with more than 20,000 and no more than 50,000 square feet, excluding parking, as well as certain multifamily buildings over 20,000 square feet. Covered Tier 2 building owners must submit their compliance documentation by July 1, 2027, and generally report again every five years.

For Tier 2 buildings, compliance is primarily about creating an organized energy-management system. Benchmarking means collecting utility information and tracking how much energy the building uses over time. An energy management plan identifies who is responsible for reviewing performance and improving operations. An operations and maintenance program documents how major building systems are inspected, maintained, and operated. Tier 2 owners must also identify an energy use intensity target, which compares annual energy use with the building’s size, but they are not currently required to meet that target.

The building owner holds the legal responsibility for completing this work. If an owner fails to submit the required Tier 2 documentation, Commerce may assess an administrative penalty of up to 30 cents per square foot. Washington law also states that this penalty may not be passed directly to tenants who cooperate by providing utility data, allowing reasonable access to the building, and responding to the owner’s compliance needs. That protection is important, but it does not mean the tenant is financially insulated from every consequence of noncompliance.

Commercial building costs rarely stop with the owner. Depending on the lease, expenses may reach tenants through operating-cost adjustments, common-area charges, maintenance expenses, rent increases, or future lease-renewal terms. If a building becomes more expensive to operate because compliance started late, energy waste continued, or outside help became more costly, the tenant may ultimately feel that pressure. The charge may not arrive with “CBPS penalty” written on it, but it can still affect the cost of occupying the space.

Tenants may also control information the owner needs to comply. In many leased buildings, the tenant holds the utility account, receives the energy bills, manages daily operations, and controls access to occupied areas. At the same time, the owner has the legal authority to approve the work, submit the compliance package, and receive an Early Adopter Incentive through a participating utility. Neither party has everything needed to move forward alone. Waiting does not remove the cost. It removes your voice from the conversation.

Student Energy Managers helps bring both sides together. SEM can help collect and review utility information, establish an energy baseline, benchmark the building, document major equipment, organize maintenance records, develop the required energy management and operations programs, and prepare the final compliance package. The program also coordinates the questions, approvals, access, and signatures needed from both the tenant and owner. For eligible buildings, SEM offers a turnkey compliance solution designed to be covered by the Tier 2 Early Adopter Incentive, creating a potential path to compliance with no out-of-pocket project cost.

The best place to begin is the Student Energy Managers Open Webinar. The webinar explains CBPS in plain language, reviews the Tier 2 requirements and timeline, and shows what information the owner and tenant may need to provide. You can attend on your own or invite your building owner, property manager, or facility contact so everyone hears the same information. Reserve your webinar seat and begin the conversation before the building’s compliance decisions are made.