ODOE's New Building Performance Standard Program Addresses Efficiency in Existing Large Commercial Buildings

The Oregon Department of Energy has launched Oregon’s new Building Performance Standard program, which will involve energy efficiency compliance deadlines for commercial buildings beginning in 2028. 

Owners of buildings covered by the program will soon receive a letter from ODOE introducing the Building Performance Standard program. Passed by the Oregon Legislature as part of Oregon House Bill 3409 in 2023, the program establishes energy performance standards for existing large commercial buildings, which account for nearly 20 percent of energy use in the state. Oregon is the fourth state to require existing buildings to meet building performance standards. 

Improving the efficiency of Oregon’s large commercial buildings lowers their energy use, reduces their carbon footprint, can reduce long-term costs for building owners, and can result in additional benefits, such as improving indoor air quality.

“With the Building Performance Standard program, Oregon is continuing to lead on energy efficiency,” said ODOE Director Janine Benner. “Enhancing the efficiency of existing commercial buildings will make a significant difference in Oregon reaching our climate goals.” 

There are two groups of buildings covered under the Building Performance Standards, and each has different requirements and deadlines:

• A Tier 1 Building is a building in which the sum of gross floor area for hotel, motel, or nonresidential use equals or exceeds 35,000 square feet, excluding any parking garage.

• A Tier 2 building is a building with gross floor area, excluding any parking garage, of 35,000 square feet and greater and that is used as a multifamily residential building, a hospital, a school, a dormitory or university building, or a building in which the sum of gross floor area for hotel, motel, or nonresidential use is 20,000 square feet up to 35,000 square feet, excluding any parking garage.

Single-family homes and buildings under the 20,000 or 35,000 square foot minimums for Tier 2 and Tier 1, respectively, are not covered under the Building Performance Standard program and do not have to report energy use data. 

Tier 2 building owners must report energy use data to ODOE and identify their building’s energy use intensity target, which is the maximum amount of anticipated energy consumption for a year. Tier 1 building owners must also identify their building’s energy use intensity target, develop plans and implement cost-effective energy efficiency measures to meet their building’s targets. Efficiency measures could include things such as switching to more efficient lighting, windows, or heating and cooling. 

Building owners will soon receive notices in the mail from ODOE, encouraging early gathering of energy use information to prepare for compliance. The letter outlines compliance deadlines, requirements, and tools. ODOE plans that by July 2026, building owners can begin reporting building compliance to ODOE ahead of their deadline. If owners of buildings that fit the Tier 1 and Tier 2 descriptions do not receive a letter this summer, they should contact the program team at oregonbps@energy.oregon.gov.  

Learn more about the program and view information for business owners on getting started with Building Performance Standards on ODOE’s website.