Building Performance Standard Update

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​In 2023, the Oregon Legislature passed House Bill 3409, establishing an Energy Performance Standard policy​ for commercial buildings, often referred to as a Building Performance Standard (BPS).​​ The initiative affects large existing commercial buildings and multifamily residential buildings. If you own or manage a large building in Portland, this may affect you.

All affected building owners should have been sent a letter notifying them that they are required to adhere to the new standard. If you did not receive a letter but believe your building may still be required to meet the standard, reach out to the Oregon Department of Energy to verify your building’s status.

Here is what has been updated

Since our last article, the comment periods for the rulemaking sessions have ended. The requirements have been clarified and finalized. The incentives have been clarified, and penalties for non-compliance were refined in the rulemaking sessions. The final deadlines are shown below.


Deadlines are approaching

Deadlines are coming up fast. You can begin requesting your data from your power company as of January 2026, and you can begin submitting it to ODOE in June.


Incentives and early reporting rules have been finalized

The rulemaking process led to new developments and refinements of items already in place.

You can follow the rulemaking process on Oregon’s government website

Exemptions and Historic Buildings

Exemptions are possible for unoccupied buildings, agricultural buildings, and financial hardship. It is a good idea to read more about these exemptions if you believe your building may qualify. You may also be able to declare your building historic. It must still adhere to the requirements, but there may be more leniency.

Early Compliance and Planning Program 

They are now accepting applications for the Early Compliance Action and Planning Program.

These are competitive grants designed to help the buildings most in need, but you must apply early and make a strong case for how you will use the funding. These grants are intended to support building owners who would otherwise struggle to comply with the new rules. There is a cap on spending for each program and each round, so apply early and keep checking the government website for the most up-to-date information.


Energy Professionals

If your building is required to comply with the new standards, you will need a qualified professional to help you run energy audits, create energy models, and file the required paperwork.

How can Harka help?

Harka supports owners through the full BPS process—benchmarking setup, EUI/EUIt analysis, retrofit strategy, and phasing that aligns with your budget and planned renovations. Our goal is to solve as much as possible with passive strategies and low-cost operational improvements first, then right-size any mechanical and envelope upgrades.

Harka has been designing and retrofitting high-performance and energy-efficient buildings for over 10 years. Unlike most architects, we do our own energy modeling as part of our service. We qualify as both Qualified Persons and Qualified Energy Professionals and can fulfill either role.

So why hire an architect to do this work over someone who specializes in energy modeling? We can help building owners solve building design issues related to potential energy upgrades. We aim to solve the issue with as many passive systems as possible before making envelope improvements or specifying new expensive HVAC systems. We solve problems through better design that uplifts the whole building while bringing it up to compliance. 

New Deadlines From the OBBB on Energy Efficiency Tax Credits

The GOP passed a bill that changes the Deadlines for tax credits on energy efficiency upgrades.

It is important to note these if you are in or will soon be in a project that could take advantage of them! There is still time to use some of these credits but you will have to move fast. Here are the details and resources to get you started.

EV tax credits ended in September of this year (2025). Energy efficient home deadlines are ending at the end of the year (Dec 2025). Energy credits such as solar panels and batteries end next summer (June 2026). Please consult  a tax professional to be sure you qualify.

Here is the breakdown:


Energy Efficient Homes and Energy Tax Credits 


25C Energy efficient home improvement credit -The cutoff is Dec 2025

Applicable in homes built after 2005.

There is a $12,000 cap for most categories.

This credit covers 30% of qualifying upgrade costs, up to the following limits

$600 limit for for exterior windows and skylights

600 limit for Energy property

Home Energy Audits can get you up to a $150 tax break

The upgrades this applies to include

Building Envelope

  • Insulation

  • Air sealing

  • windows

  • doors ($250 per door, with a $500 cap)

  • skylights

HVAC $2,000 (the $1,200 limit may be exceeded for this category)

  • heat pumps

  • heat pump water heaters

  • An electric or natural gas heat pump water heater

  • An electric or natural gas heat pump

  • A central air conditioner

  • A natural gas, propane or oil water heater water heater

Electrical panel upgrades (when installed with a heat pump or HPWH) 

  • panelboards

  • sub-panelboard

  • branch circuits

  • feeders

An ID number must be created by the manufacturer and reported during your tax filing.


25D Residential clean energy credit -The Cutoff is Dec 31 2025 

The credit is worth 30% of the cost to install qualifying systems that use solar, wind, geothermal, biomass, or fuel cell power to produce electricity, heat water, or regulate the temperature in your home.

  • Solar electric property expenditures

  • solar water heating property expenditures

  • fuel cell property expenditures

  • small wind energy property expenditures

  • geothermal heat pump property expenditures

  • and battery storage technology expenditure

Maximum payout for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property


45L New energy efficient home credit -The cutoff is now June 30th 2026

This applies to:

  • Energy Star Residential New Construction Program

  • Energy Star Manufactured New Homes program

  • Energy Star Single-Family New Homes National Program Requirements(3.1, 3.2 or the newest versions depending on the date a dwelling was acquired), 

  • Zero energy ready home program

Multifamily

Must meet Energy Star Multifamily New Construction National Program Requirements and Energy Star Multifamily New Construction Regional Program Requirements

The maximum payout is 

  • (A) $2,500 in the case of a residence which meets the requirements of subparagraph (A) of subsection (c)(1) (and which does not meet the requirements of subparagraph (B) of such subsection), and

  • (B) $5,000 in the case of a residence which meets the requirements of subsection (c)(1)(B).


Alternative Fuel refueling Property Credit - Deadline June 30 2026

30% or the cost of equipment up to $1,000 whichever is less.

This covers:

  • EV charging equipment

  • Bidirectional- can charge an EV and also discharge electricity to the grid


High efficiency electric home rebate - Deadline Sep 30, 2031

With an annual income less than 150% of the median income of your area

  • $840 for a stove, cooktop, range, oven or heat pump clothes dryer;

  • $1,750 for a heat pump water heater; and

  • $8,000 for a heat pump for space heating or cooling.

Rebates for non-appliance upgrades might be available up to the following amounts:

  • $1,600 for insulation, air sealing and ventilation;

  • $2,500 for electric wiring; and

  • $4,000 for an electric load service center upgrade.

There are limits on the amount certain families can receive.

For instance, a rebate can't exceed 50% of the cost of a qualified electrification project if the family's annual income is from 80% to 150% of the area's median income.

Each qualifying family is limited to no more than $14,000 in total rebates under the program.

So far, the GOP has not tried to eliminate this program, however they may shut down Energy Star. Which is currently used to qualify for many of these credits. 


Clean Vehicles and Refueling Property Tax Credits

Expires June 30th 2026

Up to $7,500 for qualifying EVs, known as "clean vehicles," and $4,000 for used models

Income limits for new vehicles

Income limits for Used vehicles 

Price limits

  • Vans and pick-up trucks must have an MSRP of less than $80,000

  • Cars need a MSRP of less than 55,000

  • Used must cost 25,000 or less

  • Model year at least 2 years before you bought it

  • Less than 14000 pounds

  • Eligible for FCV or plug-in EV with a battery capacity of at least 7 Kwh


Incoming Energy Efficiency Upgrade Requirements for Oregon Building Owners

Oregon wrapped up its 2023 legislative session by passing two major climate change bills containing well over a dozen proposals to tackle greenhouse gas emissions across the state. One proposal in House Bill 3409 will mean big changes for commercial building owners in the coming years. The bill outlines the creation and implementation of a building performance standard (BPS) for existing commercial buildings, making Oregon the fourth state to adopt such a standard.

Material Spotlight: Let's Talk Cork Siding

What comes to mind when you think of cork? From wine bottle tops and tack boards to flooring, cork is a popular material for a wide range of products in our daily lives. At Harka, we’re all about exploring the latest in sustainable and non-toxic materials. So, let’s talk about what cork siding can do for you.

Daylighting 101: Controlling Daylight

In this article, we will focus on strategies to control how daylight enters the building. Generally speaking, we want to filter light as it enters a building to maximize bright, ambient light suitable for the function of the space while also considering other factors, from energy efficiency to more subjective qualities such as how light moves throughout the day and interacts with textures and forms.

“Unprecedented” Weather: Is This the New Norm and How Can You Make Your Home Climate-Safe?

To ring the new year, Portland experienced an unprecedented storm resulting in more than a week of wind, snow, ice, and record breaking temperatures. We are seeing extreme rain events causing mudslides and floods, and extreme heat and drought periods causing never before seen wildfires. It is not hard to image that what we call extreme weather now, we will eventually just call weather. How will we adapt? Well, one way will be through changing the way we build and adapt our shelters.

Bar Diane featured in PDX Eater

Bar Diane featured in PDX Eater

We are so excited about our latest interior creation: a super cool wine bar in the Pearl! A huge thank you to the owners of Bar Diane for making this happen. They are amazing people that were TRULY a pleasure to work with. As you can see from the murals, Sami is an extremely talented artist which helped take the space to the next level. Congrats to Joshua Jewett in our office for a job well done. Insider Information: If you peek through the slats in the fence outside, you can still see the parking sign painted on the concrete wall from the long lost Gypsy Lounge. Go check out their amazing wines and food!

See the feature in PDX Eater

Case Study: Iterative Solutions for a Historic Home

Case Study: Iterative Solutions for a Historic Home

When a client comes to us with a new project, they often have an idea in mind of what they want the finished result to look like. While this is always the starting point for our design process, putting pen to paper and developing 3D models can often reveal challenges with the initial ideas, as well as present unique opportunities for alternative solutions. In this case study, we show how we evaluated varied solutions to a complex design problem with 3D modeling to find a clean and elegant option that best met the client’s goals.

​​​​​​​Consumer Activism: Is it possible and what’s the alternative?

​​​​​​​Consumer Activism: Is it possible and what’s the alternative?

You can find endless articles, thinkpieces and blog entries much like this one about the myth of the ethical shopper, whether organic food is really better for the environment, and the effectiveness of boycotting sweatshops. Sifting through to find real, substantive information about how to make tangible change with the things you consume challenging and exhausting, and is it even worth it?

Daylighting 101: Orientation

Daylighting 101: Orientation

When we talk about the orientation of a building, we mean how the building sits on the site relative to its context, the most important of which is typically the sun (other factors being wind, views, topography and surrounding  landscapes, buildings and streets). It is easier to optimize the orientation of a building for solar exposure in new construction, but there are takeaways that can be applied to existing homes as well.

Case Study: Detached Bedrooms

Case Study: Detached Bedrooms

Do you like the values of cohousing and shared community resources? Are you a homeowner hoping to create rent-able space on your property, but searching for a compromise between renting an existing room and building a detached Accessory Dwelling Unit (ADU) in your yard? Or perhaps aging parents are moving in and you'd like to offer more privacy and autonomy for them than a suite within your main home?

If any of these scenarios are appealing, then detached bedrooms may be a solution for your project!