Published October 27, 2025
By NZero
Oregon has taken a decisive step toward reducing energy use and emissions in commercial buildings. On October 21, 2025, the Oregon Department of Energy (ODOE) announced that it is accepting applications for its Early Compliance Action and Planning Program. The initiative supports building owners preparing for the state’s new Building Performance Standard (BPS), established under House Bill 3409 (2023). According to the Oregon Department of Energy, the first round of incentives offers up to 750,000 US dollars for Tier 1 buildings and up to 250,000 US dollars for Tier 2 buildings. Applications are now open through the ODOE’s incentive portal. The earliest compliance dates for covered buildings begin in 2028, allowing several years for planning and upgrades.
Building Performance Standards are emerging as a cornerstone of energy and climate policy in the United States. These standards establish minimum energy efficiency or emissions performance levels for existing buildings, creating a pathway to lower operating costs and carbon emissions over time. Several states have introduced similar frameworks, including Washington, Colorado, and New York, each adapting requirements to local building profiles and policy goals.
Buildings contribute roughly 30 to 40 percent of total energy-related emissions in most states, prompting policymakers to focus on this sector for deeper decarbonization. Oregon’s BPS framework, created through House Bill 3409, is designed to complement its broader emission-reduction targets for 2050. The law creates separate tiers based on building size, allowing phased implementation and supporting long-term energy performance improvements. Drivers for these programs include the need to reduce energy demand, enhance building resilience, and align with federal funding opportunities through the U.S. Department of Energy and Inflation Reduction Act.
The ODOE’s Early Compliance Action and Planning Program provides financial support for early energy performance planning and compliance preparation. The program offers up to 750,000 US dollars for Tier 1 buildings and up to 250,000 US dollars for Tier 2 buildings. Funding can be used for energy audits, benchmarking, modeling, retrofit feasibility studies, and technical assistance. The program’s official website emphasizes that applications will be accepted on a rolling basis until funds are fully allocated.
Under House Bill 3409, Tier 1 applies to commercial and public buildings larger than 200,000 square feet, while Tier 2 covers medium-sized buildings between 35,000 and 200,000 square feet. Eligible activities include developing building performance baselines, identifying efficiency upgrades, and establishing data monitoring systems. The program aims to reduce long-term compliance costs by rewarding early action and allowing owners to test reporting and verification processes before the full BPS rollout in 2028.
The incentive applies to a broad range of sectors, including commercial real estate, universities, hospitals, and state-owned facilities. Building owners and operators in Oregon are encouraged to begin early planning to ensure readiness for the BPS. Collecting and analyzing utility data will be essential to establish accurate baselines and model potential energy savings.
Recommended preparatory steps include:
Organizations using data-driven platforms like NZero can streamline this process by automating utility data collection, performing energy modeling, and projecting return on investment for retrofit projects. Establishing performance baselines now will make compliance reporting smoother once standards become enforceable.
The ODOE opened applications for the Early Compliance Action and Planning Program in October 2025. Successful applicants will use 2026 and 2027 to perform benchmarking, analysis, and retrofit planning, positioning their buildings to meet the first performance targets in 2028. Funding availability is limited and may be awarded on a competitive or first-come basis, making early engagement crucial.
Owners who postpone participation could face challenges such as limited technical capacity, rising construction costs, or delays in securing qualified contractors. Early involvement provides greater flexibility to align retrofit projects with existing maintenance schedules and financial planning cycles.
As Oregon’s program progresses, it may serve as a model for other states developing their own compliance pathways. Monitoring application trends and project outcomes will provide valuable insight into how incentive-based programs can accelerate building-sector decarbonization and inform future federal or state support mechanisms.
Oregon’s Early Compliance Action and Planning Program represents a proactive, incentive-driven approach to energy policy. By combining funding support with clear compliance requirements, the state is creating a structured pathway for building owners to achieve long-term performance goals. The program underscores the importance of data, planning, and collaboration between public agencies and private owners in meeting statewide energy objectives.
As more jurisdictions adopt similar standards, Oregon’s experience will help define best practices for integrating incentives with building-performance policy. Early adopters that take advantage of current funding opportunities will not only reduce compliance risk but also realize operational and cost benefits well before the 2028 enforcement date.
