The Oregon Department of Energy (ODOE) has launched a new Building Performance Standard (BPS) program aimed at improving energy efficiency in existing large commercial buildings across the state. This initiative, established through the passage of House Bill 3409 by the Oregon Legislature in 2023, marks Oregon as the fourth state in the nation to require existing buildings to meet such standards. The program is a significant step in Oregon’s broader strategy to reduce greenhouse gas emissions, lower energy consumption, and advance toward its climate goals.
The BPS program targets existing large commercial buildings, which collectively account for nearly 20% of Oregon’s total energy use. By setting energy performance standards for these buildings, the program aims to reduce energy consumption, lower carbon emissions, cut long-term operating costs for building owners, and improve indoor air quality and occupant health.
The program divides covered buildings into two main tiers, each with specific requirements and compliance deadlines:
Tier 1: Hotel, motel, or nonresidential buildings ≥ 35,000 sq ft (excluding parking garages). Must identify an energy use intensity (EUI) target, develop and implement plans to meet the target, and install cost-effective energy efficiency measures (e.g., efficient lighting, windows, HVAC).
Tier 2: Multifamily residential, hospitals, schools, dormitories, university buildings, or hotel/motel/nonresidential buildings 20,000–34,999 sq ft (excluding parking garages). Must report energy use data and identify their building’s EUI target. Energy reporting and benchmarking are mandatory.
Single-family homes and buildings below the square footage thresholds are not covered and do not have to report energy use data. Compliance deadlines begin in 2028, with a phased approach based on building size and type. Building owners will receive official notifications from ODOE outlining the program, compliance requirements, and deadlines. Owners are encouraged to begin gathering energy use data and preparing for compliance as soon as possible. By July 2026, building owners can start reporting their compliance status to ODOE ahead of their respective deadlines.
The energy performance targets are based on the concept of energy use intensity (EUI), which measures a building’s total annual energy consumption per square foot. The standards are modeled after the ANSI/ASHRAE/IES Standard 100, a nationally recognized benchmark for energy efficiency in existing buildings. Building owners are given flexibility in choosing the most cost-effective measures to meet these targets, such as upgrading lighting, windows, or HVAC systems.
The BPS program is designed to help Oregon meet its greenhouse gas reduction targets while improving energy efficiency, grid resilience, and public health. ODOE is now responsible for administering and implementing the BPS program.
ODOE is actively reaching out to building owners and providing resources to help them understand and comply with the new standards. Early engagement and data collection are encouraged to ensure a smooth transition and timely compliance. Owners who believe their buildings should be covered but do not receive a notification are advised to contact ODOE directly.
Oregon’s new Building Performance Standard program represents a major policy advancement in the state’s efforts to reduce energy use and emissions from the commercial building sector. By mandating energy performance improvements and providing a clear framework for compliance, the program is expected to deliver substantial environmental, economic, and public health benefits statewide.
More information is available here.
Image: energyinfo.oregon.gov
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