What Is Oregon's Building Performance Standard? A Complete Guide for Building Owners

Oregon’s Building Performance Standard (BPS) under ORS 330-300 represents one of the most significant policy changes affecting commercial buildings in the state since energy codes were first established. Under this statute, administered by the Oregon Department of Energy, building owners face a compliance mandate that will reshape how properties are managed, monitored, and improved over the coming years. Understanding what the BPS is and how it affects your building is the critical first step in meeting these requirements and avoiding penalties.

What Is the Oregon Building Performance Standard?

The Building Performance Standard is a regulatory framework that requires large commercial and multifamily buildings to meet specific energy performance targets. Rather than dictating how buildings should be constructed or what systems they must install (like traditional energy codes do), the BPS sets benchmarks based on each building’s actual energy performance and size. Buildings that exceed these benchmarks face financial penalties; those that comply gain regulatory certainty and may access substantial incentive programs.

The program is overseen by the Oregon Department of Energy (ODOE) and represents Oregon’s commitment to reducing statewide greenhouse gas emissions from the built environment while maintaining economic competitiveness in commercial real estate. The BPS applies a science-based, data-driven approach rooted in ASHRAE Standard 100, which is the industry’s recognized standard for energy auditing and building performance improvement.

The Legal Basis: ORS 330-300

Oregon’s Building Performance Standard is codified in ORS 330-300 and corresponding Oregon Administrative Rules (OAR 330-015). The statute establishes:

• The covered building threshold (35,000 square feet and larger)
• The tier structure (Tier 1 with 2028 deadline, Tier 2 with 2030 deadline)
• Required energy benchmarking procedures
• Audit and life-cycle cost assessment requirements
• Form Q compliance reporting requirements
• Penalty provisions (up to $1,000/day, capped at $25,000/year)

The statute is enforceable through ODOE with civil penalties for non-compliance and potential legal action for persistent violations.

Who Must Comply?

The BPS applies to buildings that meet specific size thresholds under ORS 330-300. The primary requirement affects buildings of 35,000 square feet or larger. This includes:

Definitely covered:

• Office buildings (all sizes above threshold)
• Retail centers and shopping centers
• Hotels and motels
• Multifamily apartment buildings
• Hospitals and healthcare facilities
• Schools and universities
• Libraries and government buildings (except state-owned buildings, which follow a separate track)
• Warehouses and distribution centers above threshold
• Industrial buildings and manufacturing support buildings

Potentially covered (requires verification):

• Mixed-use buildings (covered if commercial portion exceeds 35,000 sq ft)
• Multi-building campuses (per-building threshold, not portfolio)
• Buildings with process loads (building systems portion is covered; pure process equipment may be exempt)

Not covered:

• Single-family residential (exempt)
• Buildings under 35,000 sq ft (exempt)
• Federal buildings (follow federal rules)
• State-owned buildings (follow state compliance track)

The BPS does not distinguish between public and private ownership. Government buildings, nonprofit facilities, and private commercial properties all face identical compliance requirements under ORS 330-300. Similarly, both newly constructed buildings and older existing structures are subject to the same standards, though buildings constructed after the BPS effective date may have different benchmarks.

Key Requirements: What Does Compliance Involve?

Meeting Oregon BPS compliance under ORS 330-300 involves three fundamental components:

1. Benchmarking

Building owners must track and report actual energy consumption data using ENERGY STAR Portfolio Manager. This benchmarking process began in January 2025 and is an ongoing annual requirement, creating a baseline of your building’s current performance and tracking performance over time.

Annual benchmarking submission is required by specified deadlines. Accurate benchmarking data is essential for:

• Determining whether your building meets the required energy performance level
• Establishing your building’s baseline for improvement tracking
• Creating the record that ODOE uses for compliance verification
• Qualifying for Energy Trust of Oregon incentives

Benchmarking is not optional. Buildings that fail to submit benchmarking data are in non-compliance as of the submission deadline.

2. ASHRAE Level 2 Energy Audits

For most buildings, compliance requires a comprehensive energy audit conducted to ASHRAE Standard 100 with Oregon-specific amendments. This Level 2 audit goes far beyond basic energy consumption analysis. It requires:

• Physical on-site inspection of major building systems (HVAC, lighting, controls, envelope, hot water, process loads)
• Building system characterization and inventory of equipment and controls
• Energy consumption analysis based on actual utility data
• Energy modeling with calibration to actual consumption
• Comprehensive life-cycle cost assessment on every recommended energy conservation measure (ECM)
• Compliance-ready Form Q documentation for submission to ODOE
• Professional audit completion by a qualified energy auditor (QEA) meeting specific education and certification requirements

The audit timeline is typically:

• 4-6 weeks for most office and commercial buildings
• 8-12 weeks for hospitals or complex industrial facilities
• 2-4 weeks for small buildings under 50,000 sq ft

Audit costs are typically flat fees based on building size:

• 35,000-50,000 sq ft: $7,500
• 50,000-75,000 sq ft: $10,000
• 75,000-100,000 sq ft: $13,500
• 100,000-150,000 sq ft: $17,500
• 150,000+ sq ft: custom quote

3. Form Q Compliance Reporting

The Form Q is the final compliance deliverable submitted to ODOE. It certifies that:

• The building has completed benchmarking
• An ASHRAE Level 2 audit has been conducted
• Life-cycle cost assessments have been completed on all recommended measures
• The building has identified energy conservation measures for implementation
• The building either meets the energy performance standard or has a documented path to compliance

Filing Form Q is mandatory by the applicable deadline (January 1, 2028 for Tier 1; January 1, 2030 for Tier 2).

Energy Performance Standards: What’s the Target?

Oregon’s BPS requires buildings to achieve energy use intensity (EUI) targets based on building type and size. EUI is measured in kBtu per square foot per year (kBtu/sq ft/yr).

Typical EUI targets for common building types:

• Office buildings: 50-70 kBtu/sq ft/yr
• Retail buildings: 60-80 kBtu/sq ft/yr
• Hotels: 70-100 kBtu/sq ft/yr
• Multifamily apartment: 40-60 kBtu/sq ft/yr
• Hospitals: 100-150 kBtu/sq ft/yr (higher due to 24/7 medical operations)

These targets are challenging but achievable through the energy conservation measures the audit typically identifies.

Compliance Timeline: What’s the Schedule?

The BPS operates on a tiered timeline established by statute, with details covered in Oregon BPS compliance deadlines:

Benchmarking Phase (Ongoing):

• 2024-2025: Initial benchmarking submission (2024 energy data due by spring 2025)
• 2025 onwards: Annual benchmarking submission (prior year data due each spring)

Tier 1 Buildings (typically 100,000+ sq ft or specific high-energy use categories):

• Deadline: January 1, 2028
• Recommended audit completion: 2026-2027
• Recommended improvement implementation: 2027-2028

Tier 2 Buildings (typically 35,000-100,000 sq ft or lower-energy categories):

• Deadline: January 1, 2030
• Recommended audit completion: 2027-2029
• Recommended improvement implementation: 2028-2030

This timeline may seem distant but requires immediate action. Qualified energy auditors will become increasingly booked as deadlines approach. Energy Trust of Oregon’s incentive rates are highest for early movers and decline over time. Buildings that wait until 2027-2028 face higher auditor costs, lower incentive rates, and compressed implementation timelines.

Financial Implications and Incentives

Non-compliance carries financial penalties under ORS 330-300. Buildings that fail to meet their energy performance target by the compliance deadline face fines and ongoing financial consequences. However, buildings that achieve early compliance can access substantial incentive funding through Energy Trust of Oregon, worth up to $0.85 per square foot.

For a 50,000-square-foot building, this represents potential incentive funding of $42,500—a meaningful reduction in improvement costs. For larger buildings, the incentive potential can exceed $100,000, often covering the entire audit cost and a substantial portion of measure implementation.

How to Determine If Your Building Is Covered

The most important initial action is determining whether your building is covered by ORS 330-300. We’ve detailed this in Does my building need an audit:

1. Measure your building’s square footage — Is it 35,000+ sq ft? (Threshold applies per-building, not per-portfolio)
2. Verify primary use category — What is the building’s dominant use (office, retail, residential, industrial, etc.)?
3. Check mixed-use treatment — If mixed-use, does the commercial portion exceed 35,000 sq ft?
4. Understand process loads — If industrial, is it pure manufacturing process or does it include building systems and commercial space?
5. Contact ODOE or an energy auditor — If uncertain, get verification before assuming exemption

Misclassifying your building as exempt when it’s actually covered creates compliance risk. Misclassifying as covered when it’s actually exempt creates unnecessary cost. Take time to verify.

Next Steps for Building Owners

If your building is 35,000 square feet or larger, Oregon BPS compliance under ORS 330-300 is mandatory. The most important immediate action is to:

1. Verify your building’s benchmarking status — Confirm that 2024 energy data was submitted to ODOE
2. Determine your compliance tier and deadline — Tier 1 (2028) or Tier 2 (2030)?
3. Engage a qualified energy auditor — Get flat quotes for the ASHRAE Level 2 audit
4. Apply for Energy Trust of Oregon incentives — Lock in maximum incentive rates by applying in 2026
5. Schedule your audit for 2026 — Beat the market rush of 2027-2028
6. Plan measure implementation — Use the timeline between audit and compliance deadline to execute improvements

The BPS is not optional and avoiding it is not an alternative strategy. Buildings that fail to comply will face penalties that only increase over time. However, buildings that engage proactively with the process can minimize costs, access incentives, and potentially discover improvement opportunities that enhance property value and operational efficiency.

Key Takeaways

• ORS 330-300 applies to buildings 35,000+ sq ft — Verify your building is covered
• Tier 1 deadline is January 1, 2028; Tier 2 is January 1, 2030 — Deadlines are real and have financial penalties
• Benchmarking is ongoing — Annual submission required
• ASHRAE Level 2 audits are required for most buildings — Audit cost is typically $7,500-$20,000
• Energy Trust of Oregon offers up to $0.85/sq ft in incentives — Higher rates for early movers
• Penalties for non-compliance are substantial — Up to $1,000/day, capped at $25,000/year
• Early action saves money — 2026 start means 18-24 months for implementation and full incentive access

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About the Author

Mike VanVickle is a commercial building energy compliance specialist based in Oregon. He has guided dozens of property owners through Oregon’s Building Performance Standards process, from initial audit scoping through ASHRAE Level 2 completion and ODOE submission. He holds expertise in ORS 330-300 compliance timelines and has worked with Energy Trust of Oregon incentive programs to reduce compliance costs for building owners.

Sources & References

• Oregon Department of Energy — Building Performance Standards
• ORS 330-300 — Oregon Building Performance Standard
• ORS 330.135 — Energy Performance Standards
• OAR 330-015-0020 — Administrative Rules for Building Performance Standards
• ASHRAE Standard 100-2018 — Energy Conservation in Existing Buildings
• ASHRAE Standard 211-2018 — Commercial Building Energy Audits
• Energy Trust of Oregon — Commercial Building Performance Standards Incentives
• ODOE Form Q Compliance Requirements and Guidance