Oregon Building Performance Standards: 2026 Guide

Oregon’s Building Performance Standard (BPS) is now active law, and the first wave of compliance deadlines arrives June 1, 2028. If you own or manage a commercial building of 20,000 square feet or more in Oregon, this is the definitive resource — what the law requires, which buildings are covered, how the tiers and deadlines actually work, what an ASHRAE Level 2 audit involves, what penalties look like, and how ODOE and Energy Trust incentives can offset your costs.

Everything here is drawn directly from the Oregon Administrative Rules (OAR 330-300) and verified against ODOE’s published program guidance. Where the regulatory text is dense, we’ve translated it into plain language without softening the requirements.

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Table of Contents

1. What Is Oregon BPS?
2. Which Buildings Are Covered?
3. Tier 1 vs. Tier 2: What Each Requires
4. The Staggered Compliance Deadlines
5. What Is EUI and How Is It Measured?
6. When Is an ASHRAE Level 2 Audit Required?
7. The Compliance Pathway Step by Step
8. Penalties for Non-Compliance
9. Incentives That Offset Your Costs
10. Exemptions
11. BPS by Building Type
12. BPS by Oregon Region
13. How Much Does Compliance Cost?
14. Frequently Asked Questions
15. Next Steps: Schedule Your Compliance Audit

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What Is Oregon BPS?

Oregon’s Building Performance Standard was established by House Bill 3409 in 2023 and took effect January 1, 2025 under OAR 330-300. The program is administered by the Oregon Department of Energy (ODOE) and based on ASHRAE Standard 100 with Oregon Amendments.

The core idea: commercial buildings are responsible for a significant share of Oregon’s energy use and carbon emissions. BPS sets an Energy Use Intensity (EUI) target for each covered building. If your building’s actual EUI exceeds that target, you must take action — benchmark your energy use, engage a qualified energy auditor, and implement cost-effective improvements before your compliance deadline.

BPS is not a one-time certification. It is an ongoing performance obligation. Meeting your first deadline does not end your compliance obligations — the standard is designed to tighten over successive compliance periods.

For context on how Oregon’s approach compares to other programs, see our Oregon BPS vs. Portland Energy Reporting comparison and our Oregon BPS vs. Washington Clean Buildings analysis.

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Which Buildings Are Covered?

Coverage depends on building type and gross floor area. Gross floor area for BPS purposes excludes parking garage area — a detail that matters for mixed-use and office buildings with structured parking.

Building Type	Minimum Size for Coverage	Tier
Nonresidential, hotel, or motel	200,000+ sq ft	Tier 1
Nonresidential, hotel, or motel	90,000–200,000 sq ft	Tier 1
Nonresidential, hotel, or motel	35,000–90,000 sq ft	Tier 1
Nonresidential, hotel, or motel	20,000–35,000 sq ft	Tier 2
Multifamily, hospital, school, university, dormitory, barracks, prison, residential/senior care	35,000+ sq ft	Tier 2
Any building under 20,000 sq ft	—	Not covered

Building types consistently covered under Tier 1 include office buildings, retail centers, hotels and motels, warehouses, industrial facilities, and most government buildings. Tier 2 captures smaller commercial buildings plus all multifamily, healthcare, and educational buildings of 35,000 sq ft and up — regardless of size tier.

Federally and tribally owned buildings are generally not subject to BPS. All other covered buildings must comply regardless of ownership structure, age, or current energy efficiency level.

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Tier 1 vs. Tier 2: What Each Requires

The tier determines your obligations. These are materially different.

Tier 1

Tier 1 buildings (nonresidential/hotel/motel 35,000 sq ft and up) must:

• Benchmark their Energy Use Intensity (EUI) against the ODOE target
• Document an Operations and Maintenance (O&M) program
• Document an Energy Management Plan (EMP)
• Report to ODOE by their compliance date
• If EUI exceeds the target: notify ODOE at least 180 days before the compliance date and complete a Qualified Energy Auditor (QEA) ASHRAE Level 2 audit before the deadline
• Implement cost-effective energy conservation measures identified in the audit

Tier 1 buildings face financial penalties for non-compliance. Tier 1 is where the bulk of the compliance work — and compliance risk — lives.

Tier 2

Tier 2 buildings (nonresidential 20,000–35,000 sq ft, plus multifamily/hospital/school/university 35,000+ sq ft) must:

• Benchmark energy use against the EUI target
• Report by July 1, 2028

Tier 2 has no audit mandate and no financial penalties. The reporting requirement is real, but the stakes are lower. Tier 2 building owners should still establish their EUI baseline now — both to meet the reporting deadline and to understand where they stand if BPS requirements tighten in future compliance periods.

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The Staggered Compliance Deadlines

There is no single “2028 deadline.” Deadlines are staggered by building size for Tier 1, with Tier 2 reporting on a separate track.

Tier	Building Type and Size	Compliance Deadline
Tier 1	Nonresidential/hotel/motel, 200,000+ sq ft	June 1, 2028
Tier 1	Nonresidential/hotel/motel, 90,000–200,000 sq ft	June 1, 2029
Tier 1	Nonresidential/hotel/motel, 35,000–90,000 sq ft	June 1, 2030
Tier 2	Nonresidential 20,000–35,000 sq ft	July 1, 2028
Tier 2	Multifamily/hospital/school/university, 35,000+ sq ft	July 1, 2028

The largest buildings face the earliest deadline. If you own a 250,000-square-foot office tower, you have until June 1, 2028 — less than two years from now. If you own a 50,000-square-foot office building, your Tier 1 deadline is June 1, 2030. But the longer runway does not mean there is extra time to delay starting — a realistic compliance timeline for a building that needs an audit runs 18 to 24 months from engagement to report submitted. For 2028 deadlines, the time to start is now. For 2030 deadlines, starting in 2027 is already cutting it close.

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What Is EUI and How Is It Measured?

Energy Use Intensity is the central metric of Oregon BPS. EUI measures total annual energy consumption — electricity, natural gas, and any other fuel sources — divided by gross floor area, expressed in kBtu per square foot per year (kBtu/sq ft/yr).

ODOE sets an EUI target (EUIt) for each covered building based on building type, climate zone, and occupancy. Your job is to measure your actual EUI and compare it to your target. If your EUI is below the target, your building performs well enough to comply without an audit. If your EUI exceeds the target, you are in audit territory as a Tier 1 building.

Typical Oregon Commercial Building EUI Ranges

Building Type	Typical EUI Range (kBtu/sq ft/yr)	Notes
Office (Class A, modern)	40–65	Well-operated can reach 35
Office (Class B/C, pre-2000)	65–100	Older envelope, original systems common
Hotel/Motel	80–140	High domestic hot water load
Retail (single-story)	55–85	Lighting and HVAC dominant
Grocery/Supermarket	200–350	Refrigeration is the primary load
Warehouse	20–55	Wide range depending on conditioning
Hospital	250–400	Continuous operations, high plug load
School (K–12)	55–90	Gym and kitchen energy-intensive
Multifamily (large)	40–75	Common-area systems plus resident units

EUI is measured using 12 months of utility data entered into the EPA’s ENERGY STAR Portfolio Manager system. Your utility providers — Portland General Electric (PGE), Pacific Power, Eugene Water & Electric Board (EWEB), or other Oregon utilities — supply the interval data needed for the upload. ODOE’s submission process runs through Portfolio Manager.

For a deeper explanation of EUI, see our post: What Is EUI? Energy Use Intensity Explained.

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When Is an ASHRAE Level 2 Audit Required?

This is the most misunderstood part of Oregon BPS, and the source of the most expensive mistakes.

An ASHRAE Level 2 energy audit is NOT required for every covered building. It is conditional: required only for Tier 1 buildings whose actual EUI exceeds their ODOE target.

The audit requirement triggers only after you benchmark and find a gap. If your Tier 1 building’s EUI is at or below the target, you document your O&M program and EMP, report to ODOE, and you are done — no audit required.

If your EUI is over target, the process is:

1. Notify ODOE at least 180 days before your compliance deadline
2. Complete a Qualified Energy Auditor (QEA) ASHRAE Level 2 audit before the deadline
3. Optionally, complete a Life Cycle Cost Assessment (LCCA)
4. Implement cost-effective energy conservation measures identified in the audit
5. Report completion to ODOE

The practical implication: you cannot know whether you need an audit until you benchmark. And if you need an audit, you must notify ODOE 180+ days out — which means you need benchmark results well before that. For a June 2028 deadline, the 180-day notice window closes in late November 2027. That means benchmarking needs to be complete by fall 2027 at the latest, which means starting data collection in early-to-mid 2027 — which is exactly why building owners starting the process in 2026 are making the right call.

What an ASHRAE Level 2 Audit Involves

An ASHRAE Level 2 energy audit, as defined by ASHRAE Standard 100 with Oregon Amendments and conducted by a Qualified Energy Auditor, includes:

• Site visit and building systems walkthrough. The auditor inspects HVAC, lighting, envelope, controls, and plug loads.
• Utility data analysis. Typically 24–36 months of consumption data to identify patterns, anomalies, and load profiles.
• EUI baseline establishment. Formal documentation of the building’s current energy use intensity.
• Gap analysis. Comparison of actual EUI to the ODOE target, with quantification of the gap.
• Energy Conservation Measure (ECM) identification. A detailed menu of improvements with projected energy savings, capital costs, and simple payback periods.
• Prioritized improvement roadmap. The measures ranked by cost-effectiveness, with implementation phasing recommendations.
• Written report. A formal deliverable that meets ODOE’s documentation requirements.

Audit cost ranges from $7,500 to $17,500 for most Oregon commercial buildings, depending on size and complexity. Larger or more complex buildings — hospitals, research facilities, large hotel portfolios — may run higher.

For more detail, see: ASHRAE Level 2 Energy Audit Explained and What Happens During an ASHRAE Level 2 Site Visit.

ASHRAE Level 1 vs. Level 2 vs. Level 3

Audit Level	Scope	Typical Cost	BPS Requirement?
ASHRAE Level 1	Walk-through, high-level opportunities	$1,500–$5,000	No — informational only
ASHRAE Level 2	Full systems analysis, ECM menu, report	$7,500–$17,500	Yes — for over-target Tier 1 buildings
ASHRAE Level 3	Investment-grade, detailed engineering study	$20,000–$60,000+	Not required; sometimes done for large capital projects

Oregon BPS specifies Level 2. A Level 1 walk-through does not satisfy the requirement and cannot substitute for a QEA-conducted Level 2 audit. Our full comparison: ASHRAE Level 1 vs. 2 vs. 3 in Oregon.

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The Compliance Pathway Step by Step

Here is the full compliance sequence for a Tier 1 building owner:

Step 1: Confirm whether your building is covered. Calculate gross floor area excluding parking. Match against the tier table. If you’re Tier 1, everything below applies.

Step 2: Collect utility data. Request 12–24 months of interval data from PGE, Pacific Power, EWEB, or your utility. Multi-meter buildings and buildings with tenant submeters require more data collection time — budget 60 to 90 days for this phase.

Step 3: Set up ENERGY STAR Portfolio Manager and benchmark. Enter your building in EPA’s Portfolio Manager, upload the utility data, and record your EUI. Compare it to the ODOE target for your building type and climate zone.

Step 4: Document your O&M Program and Energy Management Plan. Required for all Tier 1 buildings regardless of EUI outcome. These don’t need to be elaborate, but they must be documented and current.

Step 5A: If your EUI is at or below target — report to ODOE. Submit your compliance documentation before your deadline. You are done for this compliance period.

Step 5B: If your EUI exceeds target — notify ODOE 180+ days before your deadline. This triggers the audit requirement. You must file notification with ODOE that you are in the audit pathway. Missing this 180-day window does not make the requirement go away — it makes compliance harder.

Step 6 (audit path only): Complete an ASHRAE Level 2 audit with a QEA. The auditor must be on ODOE’s Qualified Energy Auditor list. The audit must be completed before your compliance date, not just scheduled.

Step 7 (audit path only): Implement cost-effective measures and report. Execute the improvements identified in the audit and document the results for ODOE submission. “Cost-effective” is defined in the OAR — not everything the auditor finds must be implemented, but a defined subset must be.

For a deeper walk through the process: Does My Building Need a BPS Audit? and How to Find a Qualified Energy Auditor.

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Penalties for Non-Compliance

Penalties apply exclusively to Tier 1 buildings that fail to meet their compliance obligations. Tier 2 buildings face no financial penalties.

The penalty structure under ODOE BPS 010:

• Maximum base penalty: $5,000
• Additional penalty: $1 per square foot of gross floor area per year for the duration of a continuing violation
• New penalties can be assessed each compliance period

The enforcement sequence: ODOE issues a Notice of Violation and Opportunity to Correct (NOVC). If no corrective action within 30 days, ODOE issues a Notice of Violation and Intent to Assess Civil Penalties (NOVI). If a successful mitigation plan is submitted, penalties reduce to no more than 30% of the base ($5,000) plus $0.20 per square foot per year.

Penalty Example

A 75,000-square-foot office building misses its June 1, 2030 deadline and remains non-compliant for 12 months:

Component	Amount
Base penalty	$5,000
Per-sq-ft penalty ($1 × 75,000)	$75,000
Total first-year exposure	$80,000
With successful mitigation plan	$1,500 + $15,000 = $16,500

Even with mitigation, the exposure is substantial — and it continues accruing while the building remains out of compliance. The audit and improvements that eliminate the risk typically cost a fraction of the penalty. See our full Oregon BPS Penalties breakdown for more detail.

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Incentives That Offset Your Costs

Oregon and Energy Trust of Oregon offer meaningful financial incentives for buildings that move early on compliance. The incentives are front-loaded — programs carry more value now than they will as the deadline approaches.

ODOE Early Compliance Assistance and Performance Program (ECAPP)

• Rate: Up to $0.85 per square foot
• Cap: $10,000 to $50,000 per building (varies by size)
• Funding: $2 million in state funds, available now
• Requirement: Work must be completed at least one year before the compliance date
• Applications: Open now at ODOE’s BPS page

A 50,000-square-foot office building completing qualifying work before mid-2027 could capture up to $42,500 through ECAPP — before stacking any Energy Trust or utility incentives.

ODOE Building Efficiency and Resilience Initiative (BERI)

ODOE received a $12 million federal CERTA grant for efficiency implementation. The first application period was expected in early 2026. Check ODOE’s BPS page for current program status.

Energy Trust of Oregon BPS Pathway

• Coaching: Dedicated BPS compliance support
• Incentives: Up to $3,000 in standard coaching incentives for energy-saving projects
• Plus: Standard commercial equipment incentives and custom project incentives on top of the BPS Pathway benefit
• Eligible utilities: PGE and Pacific Power customers

Energy Trust does not cover 50% of audit costs — that claim circulates online and is inaccurate. What Energy Trust provides is coaching support plus its established commercial incentive programs, which can be substantial for specific equipment upgrades. See Energy Trust of Oregon BPS incentives for current program terms.

Stacking Incentives

ECAPP, BERI, Energy Trust, and utility-specific programs are generally stackable. A building that moves in 2026 and captures ECAPP plus Energy Trust incentives plus standard PGE efficiency rebates can offset a meaningful share of both audit and implementation costs. The window for stacking at maximum value closes as deadlines approach. See our detailed post: Energy Trust Oregon BPS Incentives.

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Exemptions

ODOE will consider exemption applications for specific circumstances. Exemption applications must be filed at least 180 days before the compliance deadline.

Grounds for exemption applications include:

• Industrial or agricultural buildings with specialized operational requirements
• Buildings without an occupancy certificate
• High vacancy rate affecting meaningful benchmarking
• Financial hardship

Historic buildings are not automatically exempt. Owners of historic buildings must file an exemption application, and ODOE may grant modified compliance pathways. Historic designation alone does not waive BPS obligations.

ODOE’s exemption forms were estimated for release in June 2026. Check the current ODOE BPS page for form availability.

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BPS by Building Type

Each building type has its own energy profile, EUI baseline, and compliance challenges. We have dedicated posts for the most common types:

• Office buildings: Lighting, HVAC controls, and plug loads dominate. Pre-2000 Class B and C stock often runs 30–50% over EUI target. Oregon Office Buildings BPS →
• Hotels and hospitality: Domestic hot water is the primary challenge. High occupancy variability makes benchmarking complex. Hotel & Hospitality BPS →
• Retail and shopping centers: Big-format retail and grocery are among the highest-EUI property types. Tenant energy use coordination is a complicating factor. Retail BPS Compliance →
• Schools and universities: All 35,000 sq ft and up fall under Tier 2, regardless of size. No penalties, but real reporting requirements. Oregon Schools BPS →
• Government and municipal buildings: County courthouses, city halls, transit centers — all covered if they meet the size threshold. Government Building BPS →
• Mixed-use buildings: Which tier depends on building classification — not always obvious. Mixed-Use BPS →
• Healthcare: Hospitals are Tier 2 — reporting obligation, no penalty exposure. Energy profiles are among the most intensive of any building type. Healthcare BPS →
• Industrial and warehouse: Often lower EUI but still subject to BPS if over the size threshold. Refrigerated warehouses are the exception. Industrial & Warehouse BPS →
• Multifamily: 35,000 sq ft and up, Tier 2. Common-area and shared-system energy use applies. Multifamily BPS →

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BPS by Oregon Region

Coverage and compliance complexity vary by region, driven by climate zone, local utility programs, and building stock.

Willamette Valley (Portland, Salem, Eugene, Corvallis)

The highest concentration of covered buildings in the state. Portland Metro accounts for the largest single share of Tier 1 square footage. Portland buildings face both the state BPS and Portland’s own Energy Reporting and Disclosure Program — a dual obligation that requires careful coordination. Salem, Eugene, and Corvallis have substantial institutional and government stock under Tier 2.

Key cities: Portland · Salem · Eugene · Corvallis · Hillsboro · Beaverton · Gresham · Tigard

Central Oregon (Bend, Redmond, Prineville)

High-desert climate means structurally higher heating loads — and wider gaps between actual EUI and performance targets. Resort and hotel properties, big-format retail along Highway 97, and medical facilities are the primary covered building types. Primary utility: Pacific Power.

Key pages: Central Oregon BPS Hub · Bend · Redmond

Southern Oregon (Medford, Ashland, Grants Pass, Klamath Falls, Roseburg)

The region spans a wide range of climate conditions and building stocks. Medford is the largest market, with healthcare, retail, and office. Ashland’s lodging and tourism commercial base draws significant Rogue Valley coverage. Klamath Falls faces heating loads approaching central Oregon severity.

Key cities: Medford · Ashland · Grants Pass · Klamath Falls · Roseburg

Portland Metro Suburbs (Lake Oswego, Milwaukie, Tualatin-Wilsonville, Oregon City)

Significant commercial and industrial stock surrounds Portland. Clackamas County has a heavy mix of light industrial and big-box retail. Washington County carries the tech-company office and industrial campus concentration.

Key cities: Lake Oswego · Milwaukie · West Linn & Happy Valley · Oregon City · Tualatin & Wilsonville

Mid-Willamette Valley (Albany, Keizer, McMinnville)

Agricultural processing, government, healthcare, and retail dominate the covered building stock. Pacific Power serves most of the mid-valley outside Salem (PGE) and Corvallis (EWEB).

Key cities: Albany · Keizer · McMinnville

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How Much Does Compliance Cost?

Cost varies by building size, EUI gap, and which measures are needed. Here are the ranges that apply to Oregon market conditions.

Audit Cost

Building Size	Typical ASHRAE Level 2 Audit Cost
20,000–35,000 sq ft	$7,500–$10,000
35,000–75,000 sq ft	$10,000–$15,000
75,000–150,000 sq ft	$13,000–$17,500
150,000+ sq ft	$17,500 and up

Benchmarking and Reporting Cost

Annual benchmarking — utility data collection, ENERGY STAR Portfolio Manager entry, ODOE submission, and year-over-year tracking — typically runs $1,500–$4,000 per year depending on building complexity and meter count. This is the recurring cost for Tier 2 buildings and for Tier 1 buildings maintaining compliance after their first deadline.

Common Implementation Measures

Measure	Typical Cost Range	Simple Payback
Building automation system recommissioning	$5,000–$25,000	1–3 years
LED lighting retrofit	$15,000–$80,000	2–5 years
HVAC controls upgrade	$10,000–$50,000	2–4 years
Rooftop unit replacement	$10,000–$30,000 per unit	4–8 years
Envelope improvements	$25,000–$150,000+	7–15 years

Buildings that act early can offset significant implementation costs through ODOE ECAPP and Energy Trust incentives. Buildings that wait face higher contractor rates as qualified auditors and contractors become scarce ahead of the deadline crunch.

For detailed cost analysis, see: How Much Does a BPS Audit Cost in Oregon?

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Frequently Asked Questions

Does every Oregon commercial building need an ASHRAE Level 2 audit?

No. The audit is required only for Tier 1 buildings (nonresidential/hotel/motel 35,000+ sq ft) whose EUI exceeds the ODOE target. If your Tier 1 building benchmarks at or below target, you document your O&M program and EMP, report, and comply — no audit required. If you don’t benchmark, you can’t know whether you need one.

What is the BPS compliance deadline for my Oregon building?

It depends on your tier and size. Tier 1: June 1, 2028 (200,000+ sq ft), June 1, 2029 (90,000–200,000 sq ft), June 1, 2030 (35,000–90,000 sq ft). Tier 2: July 1, 2028 for all sizes and types.

How do I know if my building is Tier 1 or Tier 2?

Calculate your gross floor area excluding parking garage area. Nonresidential, hotel, or motel buildings of 35,000 sq ft and up are Tier 1. Nonresidential buildings between 20,000 and 35,000 sq ft are Tier 2. Multifamily, hospitals, schools, and universities of 35,000 sq ft and up are Tier 2.

What happens if my building’s EUI exceeds the target?

For Tier 1 buildings, exceeding the EUI target triggers the audit requirement — not penalties. Penalties accrue only if you fail to complete the compliance pathway by your deadline. Complete the pathway and you are compliant, regardless of whether your EUI gap was large or small.

Can I apply for an exemption from BPS?

Yes, for specific grounds: industrial/agricultural operations, no occupancy certificate, high vacancy, or financial hardship. The exemption application must be filed at least 180 days before the compliance deadline. Historic designation alone does not exempt a building.

What utilities are involved in Oregon BPS benchmarking?

Your utility provider supplies the 12–24 months of interval data you upload to ENERGY STAR Portfolio Manager. Primary Oregon commercial utilities: Portland General Electric (PGE) for the Portland metro, Pacific Power for Southern and Central Oregon, and Eugene Water & Electric Board (EWEB) for Eugene and surrounding Lane County areas. Eastern Oregon buildings may be served by Idaho Power or Pacific Power.

Does Oregon BPS apply to Portland buildings separately from the Portland program?

Portland has its own Energy Reporting and Disclosure Program (ERDP), which operates independently of state BPS. Buildings in Portland may be subject to both. Meeting one does not satisfy the other. See our comparison: Oregon BPS vs. Portland Energy Reporting.

Where can I find ODOE’s Qualified Energy Auditor list?

ODOE publishes a QEA directory on the BPS program page. Auditors on this list have met the qualifications to conduct the ASHRAE Level 2 audit required for BPS compliance. Our post on how to find a qualified energy auditor in Oregon walks through what to look for.

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Next Steps: Schedule Your Compliance Audit

Oregon BPS is not a future problem. For buildings with June 2028 deadlines, the utility data collection, benchmarking, and 180-day ODOE notification window means the sequence needs to start now. Even 2030 deadlines require realistic lead time — 18 to 24 months from engagement to report submitted is a typical timeline for a building that needs a full audit.

We offer two services built for exactly this situation:

Service 1: One-Time ASHRAE Level 2 Compliance Audit If you don’t know where your building stands against the BPS target, this is where to start. We coordinate a site visit, establish your EUI baseline, run the gap analysis, and deliver a written report with a prioritized improvement roadmap — flat fee, no hourly billing. You leave knowing exactly what your building needs to comply, what it will cost, and what incentives are available to offset it.

Schedule Your Compliance Audit →

Service 2: Annual BPS Benchmarking If you’ve completed an audit or you’re a Tier 2 building that needs to benchmark and report on schedule, our annual benchmarking service handles utility data collection, ENERGY STAR Portfolio Manager entry, ODOE submission, and year-over-year EUI tracking — so you stay current without managing it yourself.

Set Up Annual Benchmarking →

Questions before you’re ready to schedule? Email vanvicklebros@gmail.com or use the contact form. ODOE compliance forms are expected in mid-2026 — if you start now, you’ll have everything in place when they land.

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This guide reflects Oregon BPS requirements under OAR 330-300 as verified against ODOE program documentation. For the most current program details, compliance forms, and QEA listings, visit the Oregon Department of Energy BPS page and the ASHRAE Standard 100 reference.