Oregon Building Energy Performance Standards (BPS) Compliance

Oregon’s Building Energy Performance Standard was created through House Bill 3409 (2023) and implemented through administrative rules adopted by the Oregon Department of Energy. The regulation applies to owners of covered commercial and multifamily buildings and establishes requirements for benchmarking, energy management planning, and performance improvements.

Buildings subject to the program must track energy use, calculate Energy Use Intensity (EUI), and compare their performance to state-defined Energy Use Intensity Targets (EUIt).

Who Must Comply?

The Oregon BPS applies to covered buildings, divided into two tiers based on building size and occupancy.

Tier 1 Covered Buildings

Tier 1 includes:

• Nonresidential buildings, hotels, and motels with 35,000 square feet or more of gross floor area (excluding parking garages).

Tier 2 Covered Buildings

Tier 2 includes:

• Multifamily residential buildings, hospitals, schools, dormitories, and other residential facilities 35,000 square feet or larger

• Nonresidential buildings, hotels, or motels between 20,000 and 35,000 square feet.

Buildings smaller than these thresholds are not covered under Oregon’s Building Energy Performance Standards.

What’s Required?

Energy Benchmarking

Covered buildings must track their annual energy use and calculate Energy Use Intensity (EUI) using ENERGY STAR Portfolio Manager.

This benchmarking process requires:

• At least 12 consecutive months of building energy data

• Calculation of EUI for the building

• Comparison of building performance to an Energy Use Intensity Target (EUIt).

Energy Management Plan & Operations Plan (Tier 1)

Tier 1 buildings must develop and maintain:

• An Energy Management Plan

• An Operations and Maintenance (O&M) Plan

These documents outline how building systems are operated and maintained to reduce energy use and improve building performance.

Meeting Energy Targets

Tier 1 buildings must either:

• Meet their assigned Energy Use Intensity Target, or

• Demonstrate efforts to reduce energy use through energy efficiency improvements.

If a Tier 1 building expects to exceed its energy target, the owner must notify the program in advance and complete additional steps such as conducting an energy audit and identifying efficiency improvements.

Energy Audits and Efficiency Improvements

Buildings that exceed their energy target may be required to:

• Perform energy audits

• Conduct life-cycle cost analysis

• Implement cost-effective energy efficiency measures (EEMs) to reduce energy consumption.

Tier 2 Requirements

Tier 2 buildings have simplified requirements.

Owners must:

• Benchmark energy use

• Calculate EUI

• Identify the building’s energy use intensity target.

Tier 2 buildings are not required to meet the energy target, but must report energy performance data to ODOE.

Compliance Timeline

Compliance deadlines begin in 2028, with earlier deadlines for the largest buildings.

Examples include:

• Buildings 200,000 sq ft or larger — compliance by June 1, 2028

• Buildings 90,000–200,000 sq ft — compliance by June 1, 2029

• Buildings 35,000–90,000 sq ft — compliance by June 1, 2030.

These phased deadlines give building owners time to plan and implement improvements.

Incentives and Early Compliance

Oregon offers financial incentives for early compliance to encourage building owners to begin improving building performance ahead of required deadlines.

Funding may be available to help offset the costs of planning, audits, and efficiency improvements associated with BPS compliance.

Exemptions

Certain buildings may qualify for exemptions, including:

• Industrial or manufacturing facilities

• Agricultural buildings

• Buildings with high vacancy rates

• Buildings experiencing financial hardship

• Buildings without a certificate of occupancy.

Exemption requests must typically be submitted at least 180 days before the building’s compliance date.