Senate Bill 5854 (SB 5854), also known as the Efficiency First bill, requires owners of large buildings to benchmark their building’s energy usage and report it to the State of Washington. The state will then publish this data online so that owners can see how each building compares to its peers.

This bill, enacted by the Legislature of the State of Washington, is designed to make buildings more energy efficient. More than 30% of Washington’s greenhouse gas emissions come from buildings, and benchmarking energy will raise awareness and improve efficiency across the state. More efficient buildings will lead to big energy savings, more jobs, and less pollution.

Senate Bill 5854 applies to owners or property managers with buildings larger than 20,000 square feet, as well as public and government buildings over 10,000 square feet.

Tier 1 Reporting Schedule:

• June 1, 2026 - More than 220,000 sq. ft.

• June 1, 2027 - More than 90,000 sq. ft. but less than 220,001 sq. ft

• June 1, 2028 - More than 50,000 sq. ft. but less than 90,001 sq. ft

Your building may qualify for an exemption if you meet any of the following:

• New buildings with a Certificate of Occupancy dated 2 years prior to the benchmarking deadline.

• Buildings with less than one full-time occupant.

The deadline for compliance is June 1 for all buildings.

Tier 1 buildings must meet the following reporting schedule:

• June 1, 2026: 220,001+ sq. ft.

• June 1, 2027: 90,001- 220,000 sq. ft.

• June 1, 2028: 50,000- 90,000 sq. ft.

All energy utilities including electricity, natural gas, district energy, and any other purchased fuel type used to operate your building.

For building owners subject to a NOVI who respond within thirty days by submitting a noncompliance mitigation plan (Z5.7), fines shall be assessed on an annual basis or when the building owner achieves compliance or conditional compliance.

• For applicants that submit a noncompliance mitigation plan and who submit documentation demonstrating completion, daily penalties will be assessed from the scheduled compliance date to the date of approval of compliance or conditional compliance. The penalty will be assessed at an amount not to exceed 30% of five thousand dollars plus a daily amount equal to $0.20 per square foot of gross floor area per year.

• For applicants that submit a noncompliance mitigation plan but have not submitted documentation demonstrating completion, if the building does not comply with the standard by the next compliance date, the building owner will be assessed the maximum penalty of five thousand dollars plus a daily amount equal to $1.00 per square foot of gross floor area per year not to exceed a value greater than eighteen months of accrued penalty.

The AHJ may by rule increase the penalty rates to adjust for the effects of inflation.

Z5.4.1.2 Penalties for building owners that choose to pay the fine rather than pursue compliance. Building owners may choose to respond to the NOVI by paying the maximum penalty. The building owner will be assessed the maximum penalty of five thousand dollars plus a daily amount equal to $1.00 per square foot of gross floor area per year not to exceed a value greater than eighteen months of accrued penalty. Penalties are assessed for each compliance period.

The AHJ may by rule increase the penalty rates to adjust for the effects of inflation.

Z5.4.2 When assessed penalties are not paid within one hundred eighty days of the date of a final order assessing penalties, the AHJ may assess further penalties. Total penalties assessed will not exceed five thousand dollars plus a daily amount equal to $1.00 per square foot of gross floor area per year.

Z5.4.3 Interest will accrue on civil penalties pursuant to RCW 43.17.240 if and when the debt becomes past due.

Building owners must report their energy usage data to EPA’s Portfolio Manager, a reporting tool that allows building owners to compare their building’s energy efficiency with similar buildings.

However:

• Touchstone IQ for Buildings is a fast, easy-to-use tool that integrates directly with EPA’s Portfolio Manager

• Touchstone IQ also offers expert-led benchmarking to building owners and managers looking for streamlined compliance and cost-saving recommendations

Many benchmarking ordinances require a Building ID as part of the report submission process. If needed, you may be able to find your Building ID number here.

• Washington’s Clean Buildings Performance Standard

• Washington Energy Benchmarking Senate Bill 5854

Washington properties located in Seattle will also be required to comply with the City of Seattle’s energy benchmarking program. Learn more about Seattle’s requirements here.

Touchstone IQ for Buildings offers expert-led benchmarking and easy DIY tools for Washington’s large properties. Simplify energy benchmarking compliance while gaining the tools to save money and build your energy intelligence with our exclusive software platform. Gain access to the nation's leading energy experts to ensure significant improvements in your energy usage for your commercial, multifamily, or public building. Our team has partnered with entities of all sizes to reduce their carbon footprint, reach ambitious targets, and comply with new regulations. Whether you're looking for comprehensive, step-by-step guidance to craft your energy management plan or a convenient, intuitive benchmarking solution, we've got you covered. Schedule your free personalized demo today or contact us for pricing or questions.