ODOE Now Accepting Applications for New Building Performance Standard Incentive
Building Energy Reduction Incentive Program Supports Tiers 1 and 2, and Tribal Building Owners
The Oregon Department of Energy is now accepting applications for the new Building Energy Reduction Incentive Program. This early compliance incentive program encourages building owners to meet Oregon Building Performance Standard compliance requirements ahead of schedule.
In 2023, the Oregon Legislature passed House Bill 3409, establishing a Building Performance Standard for commercial buildings. The bill requires covered commercial buildings to enhance energy management practices and implement efficiency measures to meet energy use targets. While the earliest compliance date for certain buildings is 2028, this program will support early compliance actions.
ODOE was awarded $12 million in federal funding for incentives as part of the Oregon Department of Environmental Quality’s Climate Equity and Resilience Through Action program. Incentives help building owners offset the cost of energy efficiency measures, reduce greenhouse gas emissions, and help lower energy costs.
Oregon’s Building Performance Standard sorts eligible buildings into Tier 1 and Tier 2 buildings. The Building Energy Reduction Incentive program’s first round of funding will offer approximately $4 million in incentives for Tier 1 buildings, approximately $1.5 million for Tier 2 buildings, and approximately $450,000 in incentives for Tribal buildings.
"Enhancing energy efficiency in Oregon’s largest commercial buildings can reduce energy use and costs for building owners, and help move Oregon toward an affordable, reliable, clean energy future in alignment with the Oregon Energy Strategy,” said ODOE Director Janine Benner. “I’m pleased that the Oregon Department of Energy can continue to support building owners’ compliance with the Building Performance Standard with the latest incentive program.”
Incentives must be used for energy efficiency measures, such as heating, ventilation, and cooling or lighting, that reduce the energy use intensity and greenhouse gas emissions of buildings. The maximum incentive per building is $50,000 for Tier 2 buildings and $100,000 for Tier 1 buildings.
ODOE is hosting an informational webinar with a walkthrough of the application requirements from 11 a.m. to 12:30 p.m. on February 20, 2026.
Applications from eligible building owners are due by 5 p.m. April 10, 2026.
Additional information, including application materials, program details, and webinar information, is available on ODOE’s website.
