The Washington State Department of Commerce has filed the final rule implementing HB 1543 changes to the Clean Buildings Performance Standard (CBPS). The rule was filed July 21, 2026, and takes effect 31 days later, around August 21, 2026. Here’s what long-term care providers need to know. 

What changed in the final rule 

HB 1543 directed Commerce to add compliance pathways, expand exemption criteria, and allow more extensions. The final rule: 

• Expands the “significant loss in assessed value” exemption 
• Adds specificity to the national security exemption 
• Tightens the change-of-ownership extension 
• Lowers the new-construction extension threshold from 25% to 10% of floor area, which helps larger facilities qualify 
• Adds new Tier 1 compliance pathways 

Our advocacy on long-term care exemptions was not granted 

Over the last year, LeadingAge Washington and the Washington Health Care Association submitted joint comments on multiple occasions to the proposed rule. We asked Commerce to: 

• Exclude individual resident living units from the square footage calculation, which would move most Tier 1 long-term care communities into Tier 2 
• Create a dedicated exemption for skilled nursing and assisted living facilities in recognition of the extensive existing federal and state regulatory environment governing our buildings 
• Expand the “Financial Restrictions” hardship criterion to account for Medicaid/Medicare-dependent reimbursement 

None of these requests were incorporated into the final rule. Long-term care communities remain subject to the same square-footage thresholds, deadlines, and general exemption categories as other covered building types, with no sector-specific accommodations. 

Exemptions and extensions may still be worth pursuing individually 

While Commerce did not adopt a sector-wide exemption for long-term care, the general exemption and extension pathways in the final rule remain available, and we believe some long-term care providers may qualify. If your community is facing significant financial constraints, you may be able to apply for an exemption under the financial hardship criteria. One of the qualifying conditions is “heavy and immediate financial need” where the building owner has an immediate and heavy financial need that cannot be satisfied from other reasonable available resources and that is caused by events beyond their control. And if you need more time to come into compliance, an extension may be available even if you don’t qualify for a full exemption. 

If you are interested in applying for one of the newly proposed compliance pathways or exemptions, Commerce will announce when applications open for exemptions or alternative compliance pathways in the Clean Buildings Bulletin. To receive updates, visit www.commerce.wa.gov/cbps to subscribe or complete the interest form to be notified directly. 

Does CBPS apply to your community? 

Skilled nursing and assisted living facilities are classified as institutional occupancies under Washington building code, which makes them Tier 1 covered buildings under CBPS whenever total floor area exceeds 50,000 square feet. Independent-living-only communities are generally treated as multifamily and fall under Tier 2. 

In mixed communities, Commerce has stated the requirements are for each individual building on a campus, and common spaces can be split between IL and licensed care depending on use. Please confirm your community’s classification directly with Commerce if you have not done so already. 

Compliance deadlines (Tier 1) 

• June 1, 2026 — buildings over 220,000 sq ft 
• June 1, 2027 — buildings 90,001–220,000 sq ft
• June 1, 2028 — buildings 50,001–90,000 sq ft 

Tier 2 buildings (20,001–50,000 sq ft, and all multifamily over 20,000 sq ft) must report by July 1, 2027, though they aren’t required to meet a specific energy performance target. 

Resources 

Commerce has published a webinar that walks through compliance, exemption, and extension process: Clean Buildings Performance Standard webinar. 

You can also submit questions and request support online using the  CBPS Customer Support Forms Portal 

If you have not already begun work to understand your community’s requirements, we encourage you to do so.