Funds include $14.5 million for energy audits for public building owners
OLYMPIA – Seventy building owners across Washington received $45 million in Clean Buildings Performance Grant funding from the Washington State Department of Commerce. The awarded building owners, which include private and public entities, will use the funds to make energy-efficient upgrades that support compliance with the state’s Clean Buildings Performance Standard (CBPS).
As part of this initiative, Commerce launched the Energy Audit Incentive Program, allocating an additional $14.5 million from the state budget to help public building owners, such as schools, cities and state agencies, pay for energy audits. The audits assess building energy performance and identify opportunities for efficiency improvements.
“Commerce is eager to help building owners across Washington cut energy costs while advancing our state’s clean energy future,” said Commerce Director Joe Nguyễn. “By improving energy efficiency, we’re reducing emissions, creating jobs, and ensuring that communities — especially those in rural and underserved areas — benefit from a healthier, more sustainably built environment and a stronger local economy.”
The grants will support a wide range of energy-saving building retrofits, including:
Upgrading lighting to efficient LEDs
Modernizing heating and cooling systems
Implementing smart building controls to optimize energy use
Developing compliance documentation, such as energy benchmarking reports, operations and maintenance, and energy management plans
Twenty-one awards were assigned to publicly owned buildings, while 49 awardees are private building owners. More than half of private-sector grant recipients are in rural or heavily impacted areas as designated by the Washington State Department of Health’s Environmental Health Disparities Map, ensuring that communities facing high environmental health risks and historic burdens benefit from these improvements.
Buildings are the second-largest source of greenhouse gas emissions in Washington, accounting for 25% of statewide emissions. These grants will reimburse building owners for energy-saving projects and services, helping to lower emissions, improve energy efficiency, and reduce utility costs. Funding is from the Climate Commitment Act.
Local impact
Director Nguyễn will highlight the Pasco School District (PSD) award at a visit on March 19. The Pasco School District received nearly $2 million to make energy efficiency upgrades to the HVAC system by installing 24 heat pumps and upgrading the hot water recirculation system, in addition to other assessments and optimizations at more than 20 district buildings. There are about 19,000 students across the district, which is majority Hispanic.
“This funding allows us to make meaningful improvements that will enhance the learning environment for our students while also reducing energy costs,” said Raúl Sital, PSD’s Assistant Superintendent of Operations and Supports. “These upgrades will contribute to a long-term energy management plan to increase sustainability across our schools, ensuring our facilities operate efficiently for years to come. We are grateful for this opportunity to invest in both student well-being and responsible energy use.”
In Yakima, Megalodon Properties is making energy-efficient upgrades to the Larsen Building, an 11-story art deco landmark.
"The energy upgrades at the Larsen Building will breathe new life into a historic structure while preserving its architectural charm for future generations,” said Larry Hull of Megalodon Properties. “For tenants — including nonprofits, first responders, and other professionals — these improvements will enhance comfort, quietness and sustainability, reinforcing the building’s role as a vital community hub.”
In southeastern Washington, Walla Walla University is using grant funding for lighting and envelope upgrades, as well as compliance reporting. The building envelope includes the walls, window, roof and foundation.
“We are proud to be among the first organizations taking these steps toward improving our community’s overall energy wellness,” said Alex Bryan, president of Walla Walla University. “Thanks to the dedicated work of our team and partners at Honeywell, we’re excited to meet these energy standards and celebrate the positive impact on both our campus and the environment.”
Matt Kennelly, Executive Director of LOTT (Lacey, Olympia, Tumwater, and Thurston County) Clean Water Alliance, said that this funding underscores the Alliance’s commitment to public safety.
“The LOTT Clean Water Alliance provides our community with the highest level of wastewater treatment on Puget Sound. Thanks to this generous grant, the funding will support our ongoing commitments to environmental protection, carbon reduction and energy efficiency.”
Eligible buildings received an audit incentive of $0.50 per square foot of gross floor area, with additional funding available for rural buildings and those over 220,000 square feet. Buildings that receive audit funding must be Tier 1 and actively working toward compliance with the Clean Buildings Performance Standard.
About the Clean Buildings Performance Standard
In 2019, Washington passed the first statewide building performance standard (BPS) in the nation. The BPS applies to Tier 1 commercial buildings that are 50,000 square feet and larger. In 2022, the law expanded to include buildings larger than 20,000 square feet and multifamily residential buildings, referred to as Tier 2 buildings. Washington buildings are performing at or below their compliance target. Learn more about the Clean Buildings Performance Standard and the Energy Audits for Public Buildings Program at the Commerce website.
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