According to the National Renewable Energy Laboratory, buildings make up about 40% of energy use in the U.S.

In Washington state, public buildings account for a significant portion of total energy consumption. The state Clean Buildings Performance Standard, enacted in 2019, mandates energy performance targets for public buildings, including those owned by state agencies, K-12 schools, higher education institutions, and local governments. Municipalities across the state are concerned with the costs of compliance.

Although energy-efficient systems save money in the long term, cash-strapped agencies are looking for ways to reach and remain in compliance with the performance standards and still have funds available to provide services to their communities.

The state Department of Commerce has created the Clean Buildings Audit Incentive Program to address those concerns. Many agencies are stymied in their efforts toward compliance by the high cost of the first step, which is to secure an American Society of Heating Refrigerating & Air-Conditioning Engineers Level 2 energy audit. By providing $20 million in grants to fund these audits for public-owned buildings, Commerce helps remove this barrier.

Each ASHRAE Level 2 audit provides a comprehensive assessment of a building's energy use and follows a systematic approach to evaluating the actual performance of its relevant systems. The focus of the audit incentive program, Level 2 audits, includes quantitative and qualitative evaluations of current efficiency and areas of improvement for the owner to consider. The evaluations include heating, ventilation, and air-conditioning systems; building envelopes; electrical plug loads; lighting; and domestic hot water.

These energy audits delve deeper than simple walk-through inspections. Qualified professionals, typically engineers with certifications like ASHRAE’s Building Energy Assessment Professional designation, have the expertise to analyze a building’s energy consumption in a comprehensive way. With tools including energy modeling, the auditors identify areas for improvement. The audit report may recommend cost-effective upgrades and include life cycle cost analyses and payback periods for a variety of ways to optimize efficiency and generate significant cost savings.

The audit incentive program is targeted to nonresidential, public-owned buildings of at least 50,000 square feet. The building owners can be state agencies, cities, counties, special districts, K-12 school districts, community colleges, universities, and tribal governments. The application period currently is open until June 2025, with funds available on a first-come, first-served basis. At least 20% of the total fund is earmarked for projects in cities or towns with populations of 5,000 or less.

The program reimburses the building owners for the cost of qualifying audits at rates of up to 50 cents per square foot. There is additional funding for rural communities like Lincoln, Stevens, Adams, and Whitman counties, or the towns of Newport, Ritzville, Dayton, and Pomeroy. Extra funds are also available for buildings greater than 220,000 square feet.

While Clean Buildings Performance Standard compliance is a key driver for this program, the benefits can extend beyond meeting regulatory requirements. The audits will look for low- and no-cost options for cost savings, as well as improvements that could involve larger investment. Taking the steps outlined in the audit reports should lead to significant cost savings on utility bills, funds that can be redirected toward other critical needs. In addition to cost savings, the audits analyze the comfort for building occupants by evaluating indoor air and environmental quality, with the result of better spaces for agency staff and clients.

With the incentive program, Commerce is promoting a collaborative approach to regulatory compliance. By providing financial assistance, Commerce helps remove a significant barrier for public agencies looking to optimize their buildings. Commerce also provides a registry of qualified firms and professionals to conduct the audits, ensuring thorough and reliable assessments. This program empowers public and tribal entities to save taxpayer dollars and use the savings to serve the residents of Washington state more effectively.

This is just one program among a number that serve to ease the cost burden of upgrading building performance. Some public entities, such as small school districts, may have access to dedicated grant programs that support audits and upgrades. Private enterprises can access low interest loans to upgrade their commercial or multifamily facilities through the Commercial Property Assessed Clean Energy + Resiliency loans available in counties across the state. Knowledgeable professionals may help public and private organizations identify sources of funding to help cover costs.

By leveraging the audit rebate program and other available resources, Washington's public and tribal agencies are well-positioned to meet the performance requirements. Every public agency that takes advantage of efficiencies leaves more energy available for commercial purposes that will aid the economic stability of the state, an outcome that benefits all Washington residents.

Ro Fonder Reeve is a freelance writer and works in marketing communications at Seattle-based FSi Engineers, which has a Spokane office.