SB 5514 — Increasing compliance pathways for the clean buildings performance standard.

S-1686.1Z-0211.2 SUBSTITUTE SENATE BILL 5514 State of Washington 69th Legislature 2025 Regular Session By Senate Environment, Energy & Technology (originally sponsored by Senators Shewmake, Krishnadasan, and Nobles;

by request of Department of Commerce)Commerce READRead FIRSTfirst TIMEtime 02/19/25.01/27/25.

Referred to Committee on Environment, Energy & Technology.

1 SSBSB 5514 RCW, a cooperative formed under chapter 23.86 RCW, a mutual corporation or association formed under chapter 24.06 RCW, a port district formed under Title 53 RCW, or a water-sewer district formed under Title 57 RCW, that is engaged in the business of distributing electricity to one or more retail electric customers in the state.

2 SSBSB 5514 RCW 80.04.010 and is engaged in distributing either electricity or natural gas, or both, to more than one retail electric customer in the state.

3 SSBSB 5514 Sec.

4 SSBSB 5514 States environmental protection agency's energy star portfolio manager benchmarking data and ratings for the most recent twelve- month period for the building that is being sold, leased, financed, or refinanced.

5 SSBSB 5514 (2) "Baseline energy use intensity" means a building's energy use intensity that is representative of energy use in a normal weather year.

6 SSBSB 5514 (14) "Energy use intensity target" means the target for net energy use intensity of a covered building.

7 SSBSB 5514 (23) "Standard" means the state energy performance standard for covered buildings established under RCW 19.27A.210.

8 SSBSB 5514 (a) Must develop energy use intensity targets that are no greater than the average energy use intensity for the covered ((commercial)) building occupancy type with adjustments for unique energy using features.

9 SSBSB 5514 implementation plan may exclude measures that do not pay for themselves over the useful life of the measure and measures excluded under (d)(ii) of this subsection.

10 SSBSB 5514 (3) Based on records obtained from each county assessor and other available information sources, the department must create a database of covered ((commercial)) buildings and building owners required to comply with the standard established in accordance with this section.

11 SSBSB 5514 (((iv))) (D) The primary use of the building is manufacturing or other industrial purposes, as defined under the following use designations of the international building code:

(VI)or the(((F))) building(VI) isother aconditions K-12of school building that has financial hardshipshardship relatedidentified toby capitalthe constructiondepartment orby improvementsrule; including, but not limited to, a failed bond and/or levy;

or (((F))) (VII) other conditions of financial hardship identified by the department by rule;

(b) The covered building owner may apply to the department for an extension to its compliance date.

An(8) extensionA grantedbuilding pursuantowner toof thisa subsection is valid for two years beyond the covered building's((commercial)) compliancebuilding datemust aftermeet which the coveredfollowing buildingreporting ownerschedule mayfor applycomplying towith the departmentstandard forestablished anunder extensionthis renewalsection: or file for an exemption.

(8) A building owner of a tier 1 covered ((commercial)) building must meet the following reporting schedule for complying with the standard established under this section:

p.(b) For a building with more than 90,000 gross square feet but less than 220,001 gross square feet, June 1, 2027;

12 SSB 5514 (b) For a building with more than 90,000 gross square feet but less than 220,001 gross square feet, June 1, 2027;

(9)(a) The department may issue a notice of violation to a building owner for noncompliance with the requirements of this section.p.

12 SB 5514 section.

Penalties incurred from noncompliance may not be passed along to tenants.

p.(b) Rules necessary to enforce the standard established under this section;

13 SSB 5514 (b) Rules necessary to enforce the standard established under this section;

(14)p. By January 15, 2022, and each year thereafter through 2029, the department must submit a report to the governor and the appropriate committees of the legislature on the implementation of the state energy performance standard established under this section.

13 SB 5514 (14) By January 15, 2022, and each year thereafter through 2029, the department must submit a report to the governor and the appropriate committees of the legislature on the implementation of the state energy performance standard established under this section.

The department may authorize any participating utility, regardless of p.fuel specific savings, serving a tier 2 building to administer the incentive payment.

14 SSB 5514 fuel specific savings, serving a tier 2 building to administer the incentive payment.

(i) A tier 1 covered ((commercial)) building subject to the requirements of the standard established under RCW 19.27A.210;

or (ii) a multifamily residential building where the floorp. area exceeds 50,000 gross square feet, excluding the parking garage area;

14 SB 5514 floor area exceeds 50,000 gross square feet, excluding the parking garage area;

(c) At least one electric utility, gas company, or thermal energy company providing or delivering energy to the tier 1 covered ((commercial)) building or multifamily residential building is participating in the incentive program by administering incentive payments as provided in RCW 19.27A.240;

p.(b) An eligible tier 2 covered building owner may submit an application beginning July 1, 2025, through June 1, 2030.

15 SSB 5514 (b) An eligible tier 2 covered building owner may submit an application beginning July 1, 2025, through June 1, 2030.

(8)(a)p. An eligible owner of a tier 1 covered building or an eligible owner of a multifamily residential building greater than 50,000 gross square feet, excluding the parking area, that demonstrates early compliance with the applicable energy use intensity target under the standard established under RCW 19.27A.210 may receive a base incentive payment of 85 cents per gross square foot of floor area, excluding parking, unconditioned, or semiconditioned spaces.

15 SB 5514 (8)(a) An eligible owner of a tier 1 covered building or an eligible owner of a multifamily residential building greater than 50,000 gross square feet, excluding the parking area, that demonstrates early compliance with the applicable energy use intensity target under the standard established under RCW 19.27A.210 may receive a base incentive payment of 85 cents per gross square foot of floor area, excluding parking, unconditioned, or semiconditioned spaces.

(12) By September 30, 2025, and every two years thereafter, the department must report to the appropriate committees of the p.legislature on the results of the incentive program under this section and may provide recommendations to improve the effectiveness of the program.

16 SSB 5514 legislature on the results of the incentive program under this section and may provide recommendations to improve the effectiveness of the program.