Oregon BPS FAQ: 25 Questions Building Owners Ask

Oregon’s Building Performance Standard has been active law since January 1, 2025, and the questions we field from building owners, property managers, and brokers have settled into predictable patterns. Most people know the deadline is coming. Fewer know exactly what applies to their building, what the audit actually involves, or how the penalty structure works.

This page answers the 25 questions we hear most. Every answer is grounded in OAR 330-300 and verified against ODOE’s published guidance. If you want the full regulatory context, read our Complete Guide to Oregon BPS. If you want to know whether your specific building is covered, the fastest path is a compliance audit.

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Coverage and Applicability

1. Does my building need to comply with Oregon BPS?

Coverage depends on building type and gross floor area. Nonresidential buildings, hotels, and motels at 35,000 sq ft or larger are Tier 1 buildings subject to compliance obligations. Nonresidential buildings and hotels between 20,000 and 35,000 sq ft fall under Tier 2. Multifamily buildings, hospitals, schools, universities, dormitories, and certain other residential-use properties at 35,000 sq ft or larger are Tier 2 buildings. Buildings under 20,000 sq ft are not currently covered.

Gross floor area for BPS purposes excludes parking garage area — relevant for buildings with attached structured parking.

2. My building is 22,000 square feet. Do I have to get an energy audit?

No audit requirement applies to Tier 2 buildings. A 22,000 sq ft nonresidential building falls under Tier 2, which requires benchmarking your EUI and reporting to ODOE by July 1, 2028 — but carries no audit mandate and no penalties. Still, benchmarking is not self-executing. You need utility data, an ENERGY STAR Portfolio Manager account, and the EUI comparison to your target. That’s exactly what our Annual BPS Benchmarking service handles.

3. What if my building straddles two classifications — part office, part residential?

Mixed-use buildings use the primary classification based on dominant occupancy type for the purposes of BPS tier placement. If a building’s gross floor area is predominantly residential but includes ground-floor retail, the residential classification may govern the tier. For complex mixed-use situations, an ODOE determination or direct guidance from a Qualified Person is the right step. We walk through this in detail in our Mixed-Use Building BPS post.

4. Are historic buildings exempt from Oregon BPS?

No. Historic designation does not exempt a building. Historic buildings that can demonstrate that specific energy efficiency measures would impair their historic character can apply for a modification, but the baseline obligation to benchmark and demonstrate compliance — or file an audit — still applies. Exemption applications are due at least 180 days before the compliance deadline.

5. Are federally owned buildings subject to Oregon BPS?

Federally and tribally owned buildings are generally not subject to Oregon BPS. State-owned buildings are covered under separate state agency compliance requirements distinct from the private building owner process.

6. Can I be exempt if my building has high vacancy?

High vacancy is one of the ODOE-recognized grounds for an exemption application. Buildings with qualifying vacancy levels, financial hardship situations, industrial or agricultural operations, or no certificate of occupancy may apply. All exemption applications must be submitted at least 180 days before the applicable compliance deadline. ODOE has not yet published the final exemption forms as of mid-2026; forms are expected in the second half of 2026.

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Tiers, Deadlines, and What They Mean

7. What is the actual 2028 deadline for my building?

The deadline depends on your building’s size and tier. There is no single “2028 deadline” that applies to every building — the compliance dates are staggered:

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

Note: gross floor area excludes parking. If your building is 210,000 sq ft with 15,000 sq ft of structured parking, your GFA for BPS purposes is 195,000 sq ft — Tier 1 with a June 1, 2029 deadline.

8. My building is 150,000 sq ft. The 2029 deadline feels far away. Why should I start now?

Because the actual work takes time. An ASHRAE Level 2 audit requires scheduling a Qualified Energy Auditor, conducting a site visit, gathering 12–24 months of utility data, completing the analysis, and producing a written report. That process alone takes 6–12 weeks depending on auditor availability and building complexity.

Then you need to implement measures. For a 150,000 sq ft office building, recommissioning the HVAC system, upgrading lighting controls, and addressing building envelope issues typically takes 6–18 months to procure, schedule, and complete. Add 180 days for the ODOE notification requirement before the deadline, and your true start date for a June 2029 deadline is closer to early 2027.

Starting now also keeps ODOE’s ECAPP early compliance incentive — up to $0.85 per square foot, capped at $50,000 per building — on the table. Work done within a year of the deadline doesn’t qualify.

9. What’s the difference between Tier 1 and Tier 2?

Tier 1 buildings (nonresidential/hotel/motel 35,000+ sq ft) face full compliance obligations: benchmark EUI, maintain an O&M program and Energy Management Plan, report to ODOE by the compliance deadline, and — if EUI exceeds the target — complete an ASHRAE Level 2 audit and implement cost-effective measures. Penalties apply to non-compliant Tier 1 buildings.

Tier 2 buildings (nonresidential 20,000–35,000 sq ft and multifamily/institutional 35,000+ sq ft) must benchmark their EUI and report by July 1, 2028. No audit mandate, no penalties. Think of Tier 2 as the data collection and reporting phase before potential future tightening.

10. What is the BPS program actually based on?

Oregon BPS was established by House Bill 3409 (2023) and operates under OAR 330-300, the Oregon Administrative Rules, chapter 330, division 300. The technical standard underlying it is ASHRAE Standard 100 — Energy Efficiency in Existing Buildings — with Oregon-specific amendments. ODOE administers the program and publishes EUI targets for each covered building type.

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The ASHRAE Level 2 Audit

11. Does every covered building need an ASHRAE Level 2 audit?

No. The audit requirement is conditional. A Tier 1 building that benchmarks its EUI and finds it already meets or beats its ODOE target is not required to get an audit. The audit is triggered when a Tier 1 building’s measured EUI exceeds its target. At that point, the building owner must notify ODOE at least 180 days before the compliance deadline and complete a Qualified Energy Auditor (QEA) ASHRAE Level 2 audit.

That said, starting with an audit before benchmarking is often the smartest sequence. If you suspect the building will miss its target, knowing the audit findings before you submit anything to ODOE gives you a compliant implementation plan rather than a reactive scramble.

12. What does an ASHRAE Level 2 audit actually involve?

An ASHRAE Level 2 audit is a structured, on-site investigation of a building’s energy systems. The auditor reviews 12–24 months of utility data, conducts a thorough site visit covering HVAC systems, building envelope, lighting, controls, plug loads, and process equipment, then produces a written report that includes your current EUI, your EUI target, an analysis of energy conservation measures (ECMs), estimated costs and savings for each measure, and a prioritized implementation roadmap.

The process typically takes 6–10 weeks from kickoff to final report, depending on building size and documentation availability. For more on what to expect, see our ASHRAE Level 2 Energy Audit explained post.

13. Who can perform a BPS-required audit?

Oregon BPS requires audits to be conducted by a Qualified Energy Auditor (QEA) — a designation administered by ODOE. ODOE publishes a listing of QEAs on its website. The auditor submits Form Q to ODOE as part of the compliance record. We coordinate with ODOE-listed energy professionals and can help building owners scope and structure the audit engagement.

14. How long does an ASHRAE Level 2 audit take?

Site visits typically run one to two days for a building in the 50,000–150,000 sq ft range, with additional time for system access scheduling and utility data collection. The full process from contract to written report delivery is usually 6–12 weeks. Larger and more complex buildings — multi-building campuses, high-rise towers, or properties with unusual process loads — may run longer.

15. What’s the difference between an ASHRAE Level 1, Level 2, and Level 3 audit?

Oregon BPS requires Level 2 specifically. Here’s the practical breakdown:

Audit level	Description	Typical cost range
Level 1	Walk-through survey, ballpark savings potential	$5,000–$8,000
Level 2	Detailed systems analysis, specific ECMs with costs and savings	$7,500–$17,500
Level 3	Investment-grade analysis with detailed engineering calculations	$20,000+

Level 2 is the required standard because it produces actionable findings with enough specificity to structure a compliance implementation plan. Level 1 is too general; Level 3 is typically reserved for high-capital retrofit projects. See our full ASHRAE Level comparison guide for more.

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Penalties and Consequences

16. What happens if my building doesn’t comply by the deadline?

For Tier 1 buildings, ODOE issues a Notice of Violation and Opportunity to Correct (NOVC). If the building owner doesn’t respond or come into compliance, ODOE issues a Notice of Violation and Intent to Assess Civil Penalties (NOVI). If there’s no response within 30 days of the NOVI, penalties are assessed.

Penalties are capped at $5,000 plus $1 per square foot of gross floor area per year of continuing violation. A 100,000 sq ft building that ignores its deadline faces up to $105,000 in first-year penalties. A successful mitigation plan reduces this to no more than 30% of $5,000 plus $0.20 per square foot per year. Tier 2 buildings have no penalties.

17. Can I reduce penalties after the fact?

Yes, through a mitigation plan. A building owner who submits and executes an approved mitigation plan after a NOVI caps their penalty at no more than 30% of $5,000 plus $0.20/sq ft/year. This is still expensive for large buildings and carries the reputational weight of a documented violation — making prevention dramatically cheaper than mitigation. Our BPS penalties guide has the full breakdown.

18. Is the penalty $1,000 per day?

No. That figure circulates in some BPS marketing materials and is not accurate. The actual penalty structure is capped at $5,000 plus $1/sq ft/year of continuing violation, per the Oregon BPS enforcement rules under OAR 330-300 and ODOE BPS 010. Do not rely on informal summaries of the penalty structure — consult the actual ODOE guidance or talk to a compliance professional.

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Costs, Incentives, and ROI

19. How much does an ASHRAE Level 2 audit cost in Oregon?

For most commercial buildings subject to Oregon BPS, an ASHRAE Level 2 audit runs $7,500–$17,500. Smaller buildings at the 35,000–50,000 sq ft threshold tend toward the lower end; large buildings above 150,000 sq ft or those with complex systems (chilled water loops, specialized process equipment, multi-tenant metering) run higher. Our audit engagements are flat-fee — the scope and deliverables are defined before you sign, with no hourly billing. See our audit cost post for more context on what drives the price.

20. Are there incentives to offset audit and compliance costs?

Two primary programs are available:

ODOE ECAPP (Early Compliance Action Program): Up to $0.85 per square foot, capped at $10,000–$50,000 per building. Available for compliance work completed at least a year before the compliance deadline, while ECAPP funding lasts. Oregon allocated $2M to this fund, so early applicants have better odds. Apply through ODOE.

Energy Trust of Oregon BPS Pathway: Up to $3,000 in coaching incentives for energy-saving projects, plus standard commercial equipment and custom incentives for qualifying measures. Energy Trust’s commercial program stacks with ECAPP where eligible.

Additionally, the federal ODOE BERI program ($12M in CERTA grant funding) is expected to open its first application window in late 2026 for efficiency implementation projects.

21. What kind of energy savings can I realistically expect?

Buildings that implement the cost-effective measures identified in an ASHRAE Level 2 audit typically achieve 15–25% reduction in energy use. For a 75,000 sq ft office building spending $120,000/year on energy, that’s $18,000–$30,000 in annual savings. Payback periods on audit-identified measures commonly run 3–7 years before incentives; incentives push that to 2–5 years in many cases.

The Oregon office building case study on this site walks through a realistic example of how those savings accumulate.

22. We just renovated. Do we still need to comply?

Probably yes, unless the renovation specifically brought the building into compliance with the BPS EUI target. Renovation does not automatically produce compliance. If the renovation addressed the building systems that drive energy use — HVAC, envelope, lighting — you may already be in good shape. An EUI benchmark will tell you. If the building is still over target post-renovation, the compliance pathway still applies.

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Process and Next Steps

23. What’s the first thing I should do?

Confirm whether your building is covered. Look up your gross floor area (excluding parking), identify your building type classification, and match it to the tier table above. If you’re covered, the next step is benchmarking — entering 12–24 months of utility data into ENERGY STAR Portfolio Manager and computing your current EUI. That number tells you whether you’re ahead of or behind your target, and whether an ASHRAE Level 2 audit is in your future.

Our does my building need an audit post walks through this determination in more detail.

24. My building is in Portland. Is BPS the only thing I need to worry about?

No. Portland has its own Energy Reporting Ordinance that requires annual benchmarking and disclosure for buildings over 20,000 sq ft — a requirement that predates state BPS and operates in parallel. Portland building owners must comply with both the state BPS under OAR 330-300 AND Portland’s local benchmarking program. The two programs share some data infrastructure through Portfolio Manager, but have separate filing requirements and timelines. Our Oregon BPS vs. Portland Energy Reporting comparison lays out exactly what overlaps and what doesn’t.

25. How do I get started with a compliance audit or annual benchmarking?

The fastest path: contact us here. We’ll confirm your building’s coverage and tier, explain what the compliance pathway looks like for your building type and size, and give you a flat-fee quote for the service that fits.

If your building is a Tier 1 property and you haven’t determined whether your EUI meets its target, the One-Time ASHRAE Level 2 Compliance Audit is the right starting point: site visit, EUI baseline, gap analysis, prioritized improvement roadmap, written report. No hourly billing, no scope creep.

If you’ve already benchmarked and need ongoing EUI tracking, ENERGY STAR Portfolio Manager entry, and annual ODOE submission managed for you, Annual BPS Benchmarking is the right fit.

Both services are flat-fee. Both are built around what Oregon BPS actually requires — not a generic energy audit template.

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Still Have Questions?

The regulatory complexity of Oregon BPS is real, and the stakes — penalties of $5,000 plus $1/sq ft/year for non-compliant Tier 1 buildings — make getting this right worth the investment in upfront clarity.

Additional resources on this site:

• What Is EUI? Energy Use Intensity Explained
• What Happens If You Don’t Comply With Oregon BPS?
• How Much Does an ASHRAE Level 2 Audit Cost?
• The Complete Oregon BPS Guide (2026)

External regulatory sources:

• ODOE Oregon Building Performance Standards
• ODOE BPS 010 — Incentives and Penalties
• Energy Trust BPS Pathway

Ready to stop wondering and start knowing? Schedule your compliance audit — flat-fee, no hourly billing, results in weeks not months.