News Type: Roundtable Weekly

RER Recommends Reforms to DOE’s Methods for Cost-Effective Energy Codes

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Workers on sustainable energy project on rooftop of building

The Real Estate Roundtable submitted comments this week in response to the U.S. Department of Energy (DOE) request for information on its methodology for evaluating the consumer costs and benefits of residential and commercial building energy codes. (Letter, July 31)

Building Codes and Affordability

  • Under federal law, DOE is required to assess the cost-effectiveness of recurring updates to “model” building energy codes – such as ASHRAE Standard 90.1 for new commercial construction and major renovations. Each update to the standard brings requirements for more stringent efficiency levels – with higher costs.
  • RER’s comments recognize the important role energy codes play in improving building efficiency, resilience and occupant comfort. (Letter, July 31)
  • The comments also encourage DOE to put more emphasis on consumer “affordability” because its decades-long analysis periods obscure more direct and immediate costs of compliance—borne by families and businesses—with ever more stringent energy codes. 

Why It Matters

  • Commercial owners, developers, and investors pay upfront costs for code compliance when a building is constructed. Yet, projected utility savings may accrue decades later—often to future owners or tenants, not to the businesses making initial investments.
  • RER’s recommendations would provide a more accurate picture of how code requirements affect project feasibility, housing affordability and investment decisions across markets and property types.

RER’s Recommendations

  • Realistic payback periods: DOE’s current 30- and 40-year lifecycle method makes code updates appear cost-effective, because energy savings are stretched over very long periods. RER recommends that DOE also publish results over 3-, 5-, 10-, 15- and 20-year periods—to reflect common practices in commercial ownership duration, loan maturity terms, and building capital expenditure budgeting. (Letter, July 31)
  • Market-based financing assumptions: The letter urges DOE to use multiple discount rates reflecting the different costs of construction loans, permanent mortgages, mezzanine debt and equity—not a single, “one-size-fits-all” rate.
  • Upfront and regional costs: DOE should account for lengthy federal depreciation periods, as well as regional differences in labor, materials, permitting expenses and energy prices that can significantly affect whether a project remains financially viable.
  • Greater transparency: RER recommends a publicly available database detailing the market costs, data sources, electricity-price forecasts and assumptions used in DOE’s analyses. The agency should also test modeled energy savings against actual building data from ENERGY STAR Portfolio Manager and DOE’s Building Performance Database.
  • Cumulative regulatory burdens: DOE should consider how other regulations, including rent restrictions, can limit multifamily owners’ ability to finance and recover the costs of energy-efficiency investments.
  • Consistent treatment of building standards: DOE should apply the same affordability and cost-effectiveness methodology to state, local, and model Building Performance Standards that receive federal funding or technical support.

The Real Estate Roundtable (RER) and its Sustainability Policy Advisory Committee (SPAC) will continue working with DOE and industry stakeholders to ensure building energy code analyses reflect real-world costs, financing practices and affordability impacts for commercial and multifamily buildings.

RER, CIAT Urge Senate to Advance Long-Term TRIA Reauthorization

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The Real Estate Roundtable (RER), the Coalition to Insure Against Terrorism (CIAT), and a broad group of business organizations urged congressional leaders this week to include a seven-year extension of the Terrorism Risk Insurance Program (TRIA) in any must-pass legislation considered this year. (Letter, July 29)

Coalition Letter

  • The coalition called for action on the bipartisan Senate Terrorism Risk Insurance Program Reauthorization Act of 2026 (S. 4395), warning that waiting until the final year of TRIA’s authorization would create uncertainty for insurers and policyholders that are already negotiating policies extending beyond the program’s Dec. 31, 2027 expiration. (Roundtable Weekly, July 17)
  • The letter emphasized that maintaining the current framework is critical to ensuring insurers of all sizes remain in the market, and sufficient capacity is available for businesses seeking terrorism coverage. (Letter, July 29)
  • TRIA remains a critical public-private partnership that helps ensure terrorism insurance coverage remains available and affordable for commercial businesses, educational institutions, nonprofit organizations, and other policyholders. (Letter, July 29)

State of Play

  • Last month, the House voted 373-15 to pass the bipartisan TRIA Program Reauthorization Act of 2026 (H.R. 7128), which would extend the program through 2034. The bill would also raise the minimum loss threshold from $5 million to $10 million beginning in 2029 and establish a 90-day timeframe for Treasury certification decisions. (PoliticoPro, June 29 | Legis1, July 1)
  • The Senate’s seven-year reauthorization bill (S. 4395) has garnered more than 30 bipartisan cosponsors. Both the House and Senate proposals maintain TRIA’s existing structure, which the coalition emphasized is critical to keeping insurers of all sizes in the market and preserving sufficient coverage capacity. (Roundtable Weekly, May 1)

Why It Matters

  • TRIA has provided stability to terrorism insurance markets since its enactment following the Sept. 11 attacks, helping businesses, property owners, lenders, and insurers manage risks that the private market cannot fully absorb. (Roundtable Weekly, Sept. 19)
  • Since 2002, the program has served as a public-private risk-sharing mechanism that helps maintain the availability of terrorism insurance at virtually no cost to taxpayers.
  • A 2026 Treasury Department report warned that allowing TRIA to expire—or even lapse temporarily—could disrupt insurance markets, affect unrelated lines of coverage, and delay projects in critical sectors. (Letter, July 29)
  • The letter also cited federal assessments of evolving threats to critical infrastructure, including real estate.

Roundtable Advocacy

  • RER, which co-chairs CIAT, has consistently urged Congress to act well ahead of TRIA’s Dec. 31, 2027 expiration.

RER and its industry partners will continue to urge Senate leaders to include TRIA on any must-pass legislation this year.

Fed Holds Rates Steady as Inflation Risks Persist

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The Federal Reserve held its benchmark interest rate steady at 3.50-3.75 percent for a fifth consecutive meeting on Wednesday, with three officials dissenting in favor of a quarter-point hike. Chair Kevin Warsh said inflation remains above the Fed’s 2 percent target, partly reflecting energy-related supply shocks, and reaffirmed the Committee’s commitment to restoring price stability.

Fed’s Decision

  • The Federal Open Market Committee (FOMC) voted 9-3 to hold rates steady. Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan preferred a 25-basis-point increase. It was the first time since 2016 that three officials dissented in favor of the same policy action. (Federal Reserve, July 29; CNN, July 29)
  • The policy statement was nearly unchanged from June, citing solid economic growth, strong productivity and investment, stable labor conditions and inflation that remains above the Fed’s 2 percent goal. (Federal Reserve, July 29; Opening Statement, July 29)
  • Chair Warsh said Treasury yields had risen materially since June, with some of the increases ranking among the largest of the past two decades. (Opening Statement, July 29; Watch Press Conference)
  • He described the Committee’s stance as “watchful thinking, not watchful waiting.” He said higher interest rates could be part of the solution if inflation remains elevated, while stopping short of signaling a specific September move. (Federal Reserve Calendar; Wall Street Journal Transcript, July 29)

Housing and CRE

  • The decision provides near-term stability in short-term rates, but many CRE financing costs remain tied to longer-term yields. The 10-year Treasury yield was about 4.66 percent Wednesday afternoon, while the average 30-year fixed mortgage rate was about 6.6 percent for the week ending July 23. (Wall Street Journal, July 29; USA Today, July 29)
  • Chair Warsh said AI-related investment is growing nearly 20 percent, a trend that could support continued demand for data centers and related infrastructure development.(Opening Statement, July 29)
  • Major banks are selectively returning to CRE lending. Bank of America, U.S. Bancorp, PNC and Truist reported year-over-year CRE loan growth ranging from more than 8 percent to about 25 percent, concentrated in multifamily housing, industrial, and data-center projects. While banks see attractive growth opportunities, office exposure continues to be approached cautiously. (Wall Street Journal, July 23)
  • The Fed’s next meeting on Sept. 15-16 will provide updated economic projections and a clearer indication of whether the growing internal divide is moving the Committee closer to a rate increase.

Policy Outlook

  • RER President and CEO Jeffrey DeBoer and SVP and Counsel Duane Desiderio joined Real Estate Executive Council (REEC) CEO Ken McIntyre for REEC’s monthly virtual town hall with members on the policy landscape in Washington, what CRE can expect in the coming months and RER’s advocacy priorities.

The discussion also covered housing affordability, electricity demand and emerging data center legislation, as well as RER’s efforts during negotiations over the 21st Century ROAD to Housing Act to remove the unconstitutional forced-sale provision that could have set a damaging precedent for other property types.

Roundtable Submits Recommendations to Further Improve New Opportunity Zone Transition Relief

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The Real Estate Roundtable (RER) submitted comments this week on IRS Notice 2026-40, welcoming the guidance as an important step in the transition from Opportunity Zones (OZ) 1.0  (TCJA) to the permanent OZ framework enacted under the One Big Beautiful Bill (OB3) Act. RER urged the Treasury Department and IRS to clarify the Notice’s Written Plan and Ordinary Course safe harbors for multiphase investments and allow opportunity funds to continue investing in OZ 1.0 census tracts through their statutory expiration on Dec. 31, 2028. (Letter, July 29)

OZ Transition Recommendations

  • The Notice incorporated several concepts previously recommended by RER and has helped unlock capital that had been delayed by uncertainty surrounding investments in expiring OZ 1.0 census tracts. (Roundtable Weekly, June 26)
  • Post-2026 investments in OZ 1.0 census tracts must comply with either (1) the “Written Plan” exception, which requires compliance with the existing working capital safe harbor rules and related funding requirements; or (2) the “Ordinary Course” exception, which relates to the purposes of the expenditures (e.g., the permissible modernization or continued operations of the trade or business, as opposed to impermissible expansion of the business or starting a new trade or business).
  • RER’s July 29 comments urged Treasury to make both exceptions clear and workable for real estate investors, developers, and entrepreneurs undertaking long-term and multiphase projects. (Letter, July 29)
  • Additional clarifications would provide helpful certainty, reduce regulatory risk, and further unlock capital for greater investment in low-income communities. (Letter, July 29)
  • Under the Written Plan exception, RER asked Treasury to confirm that capital provided after 2026 does not need to come from the same Qualified Opportunity Fund (QOF) that financed the project earlier and that subsequent phases of an existing real estate business may qualify. (Letter, July 29)
  • For the Ordinary Course exception, RER requested administrable rules distinguishing permissible upgrades—such as energy-efficiency measures, accessibility improvements and interior reconfigurations—from business expansions. The letter also seeks clarity for projects involving new floors, conversions of existing space, parking structures, and other improvements that may fall between those categories.
  • RER also asked Treasury to allow new QOF equity to fund qualifying ordinary-course improvements, rather than requiring projects to rely on debt, existing cash, or non-QOF equity.
  • RER further encouraged Treasury to allow QOFs in OZ 1.0 census tracts to continue investing and acquiring property outside the two exceptions through the tracts’ statutory expiration on Dec. 31, 2028—two years longer than contemplated by the Notice. (Letter, July 29)

RER Advocacy

  • RER has consistently urged Treasury and the IRS to provide workable transition rules for OZ 1.0 projects, including through a December 2025 letter, follow-up comments and draft guidance submitted by RER’s Opportunity Zone Working Group in March 2026, and meetings with agency officials. (Roundtable Weekly, March 6) (Roundtable Weekly, Dec. 2025)
  • RER’s Opportunity Zone Working Group developed the recommendations. Principal drafters included Orla O’Connor and Michael McMahon of KPMG; Gary Hecimovich and Adam Wallwork of Deloitte Tax LLP; Sandy Presant and Jim Lang of Greenberg Traurig LLP; Greg Berger of Brownstein Hyatt Farber Schreck LLP; Angeline Rice and David Sobochan of Cohen & Co Advisory, LLC; Andrea Whiteway of Ernst & Young LLP; and Steven Kennedy of PwC US.

RER’s Opportunity Zone Working Group will continue engaging with Treasury and the IRS to support clear, workable implementation of the permanent OZ framework.

Affordability, Ratepayer Protections Drive Data Center Policies on Capitol Hill

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Congress and federal regulators focused this week on how to meet rapidly growing electricity demand from data centers and AI while protecting consumers, strengthening grid reliability, and accelerating new energy infrastructure.

State of Play

  • All five Federal Energy Regulatory Commission (FERC) commissioners testified Wednesday before the Senate Energy and Natural Resources Committee, where lawmakers from both parties focused heavily on ensuring that the costs of serving new data centers and other large loads are not shifted to existing ratepayers. (E&E News, July 23 | Bloomberg Government, July 22)
  • “FERC now sits at the center of some of the most important questions facing our country: reliable electricity, affordable energy, data centers, manufacturing, national security,” said committee chair Sen. Mike Lee (R-UT). “Every one of these issues, in its own way, now runs directly through FERC.” (PoliticoPro, July 22)
  • Commissioners and senators discussed broader strategies to expand grid capacity, including grid-enhancing technologies that can increase the capacity of existing transmission infrastructure, and permitting reform. (Daily Energy Insider, July 22 | New York Times, July 23)
  • FERC is also moving to address the reliability risks associated with large computational loads, directing the North American Electric Reliability Corp. (NERC) to finalize new reliability standards and registration requirements for certain computational loads by the end of 2026. (Roundtable Weekly, July 17)

Data Center Legislation

  • On Tuesday, the House Energy and Commerce Committee unanimously approved the bipartisan Ratepayer Protection Act (H.R. 9340) by a 52-0 vote. The bill would require state utility regulators to consider standards to ensure data centers cover the incremental costs of the energy infrastructure needed to serve them, rather than shifting those costs to other customers. (Energy& Commerce Committee Press Release, July 21)
  • The framework includes the Data Center Tax Accountability and Disclosure Act, which would require large AI data centers to disclose information about energy and water use, emissions, backup generation, and other operational impacts, while conditioning federal bonus depreciation on meeting “LEED Gold” rating standards. (Sen. Warner Press Release, July 21)
  • State policymakers are also reassessing data center development and tax incentives. New York Gov. Kathy Hochul recently imposed a one-year moratorium on new large-scale data centers and said she will pursue legislation to eliminate certain tax incentives for the facilities. (Fortune, July 14 | PoliticoPro, July 20)
  • Arizona has paused new data center sales tax incentives for three years, while leaders in other states are also examining changes to incentive structures. (Fortune, July 14 | PoliticoPro, July 20)

AI and the Regulatory Process

  • The IRS is considering whether AI could help analyze comments while still meeting Administrative Procedure Act requirements, though GAO found the agency does not currently have such tools. (Politico, July 24)
  • For The Real Estate Roundtable (RER), which regularly submits substantive comments to Treasury, the IRS, and other agencies, the potential use of AI in regulatory review could significantly change how stakeholder input is processed and underscores the importance of ensuring meaningful consideration of technical advocacy.

Permitting Push

  • As Senate negotiators work toward a broader permitting reform deal, House Energy and Commerce Committee Chairman Brett Guthrie (R-KY) moved to stake out House priorities by releasing a discussion draft of the Permitting Our Way to an Energy Resurgence (POWER) Act, a 19-bill package aimed at accelerating pipelines, power generation, transmission, and industrial projects. (E&E News | E&C Press Release | Bill Text, July 22)

With energy demand surging, real estate is an important partner in supporting energy investment, increasing efficiency, and delivering energy savings across the economy. The Real Estate Roundtable (RER) and its Sustainability Policy Advisory Committee (SPAC) continue to monitor federal and state actions affecting grid capacity, energy costs, infrastructure permitting, and data center development.

House Passes Main Street Capital Access Act with Bipartisan Support

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The House passed the Main Street Capital Access Act (H.R. 6955) on Tuesday by a bipartisan vote of 270-155-1, with 56 Democrats joining 213 Republicans and one independent in support. The Real Estate Roundtable (RER) endorsed the legislation earlier this year as an important step toward right-sizing bank regulation and expanding access to capital. (HFSC Press Release, July 21)

State of Play

  • Sponsored by House Financial Services Committee Chairman French Hill (R-AR) and Financial Institutions Subcommittee Chairman Andy Barr (R-KY), the package is designed to encourage new bank formation, tailor regulation for community and regional banks, and remove barriers to local lending. (Bill text | Section-by-Section | One-Pager)
  • “Expanding access to capital means entrepreneurs can invest, businesses can grow, and families can build wealth,” Hill said following the vote, adding that he looks forward to the Senate considering the legislation. (Legis1, July 22)
  • Community and regional banks are important sources of financing for housing and commercial real estate, particularly in smaller and underserved markets.
  • RER has consistently advocated for appropriately tailored financial regulation that maintains bank safety and soundness while supporting liquidity, capital formation, housing production, and economic growth. (Roundtable Weekly, Jan. 16)

RER Advocacy

  • RER submitted a letter of support for the Main Street Capital Access Act in January, emphasizing the critical role community and regional banks play in financing commercial and residential real estate. (Roundtable Weekly, Jan. 16)
  • “The Main Street Capital Access Act will help revitalize communities across the nation by encouraging local bank formation and enhancing credit capacity,” said RER President and CEO Jeffrey D. DeBoer. “By easing outdated regulatory burdens for community banks, it will help unlock more capital for housing and small businesses.”

21st Century ROAD to Housing Act Implementation

  • RER is forming a member working group to engage with Treasury, HUD, and other federal agencies as they develop implementing regulations for the recently enacted 21st Century ROAD to Housing Act, with a particular focus on Section 1001 and its implications for single-family rental and build-to-rent investment.
  • Members interested in participating in the working group should contact RER’s SVP, Clifton E. (Chip) Rodgers, Jr. (crodgers@rer.org).

The legislation now moves to the Senate for consideration. RER will continue working with policymakers to advance measures that strengthen credit capacity and expand access to capital for housing, commercial real estate, and communities across the country.

House Passes Seven-Year TRIA Reauthorization

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On June 29, the House voted 373-15 to pass the bipartisan TRIA Program Reauthorization Act of 2026 (H.R. 7128), advancing a long-term extension of the federal terrorism risk insurance program through 2034. (PoliticoPro, June 29 | Legis1, July 1)

State of Play

  • The bill, sponsored by House Financial Services Subcommittee on Housing and Insurance Chairman Mike Flood (R-NE), would extend the Terrorism Risk Insurance Program for seven years beyond its current Dec. 31, 2027 expiration. (Rep. Flood Press Release | PoliticoPro, June 29)
  • The measure would also increase the minimum loss threshold for an event to qualify as an act of terrorism under the program from $5 million to $10 million beginning in 2029 and establish a 90-day timeframe for Treasury certification determinations. (Insurance Journal, June 30)
  • The House Financial Services Committee previously advanced the legislation in January by a 51-2 vote. (Roundtable Weekly, Jan 23)
  • Following the Sept. 11 attacks, terrorism insurance became largely unavailable, disrupting commercial real estate financing and delaying billions of dollars in transactions. TRIA has since provided a public-private mechanism to maintain access to coverage that the private market alone cannot fully provide.

RER Advocacy

  • The coalition emphasized TRIA remains a critical public-private partnership that ensures the continued availability of terrorism insurance coverage and supports the broader economy. (Letter, June 29)
  • “While no insurance program can eliminate terrorism risk, TRIA provides a critical economic backstop that helps businesses, lenders, and insurers manage the financial consequences of an attack,” said RER President and CEO Jeffrey D. DeBoer. “We urge the Senate to act promptly on a long-term reauthorization well in advance of the program’s expiration at the end of 2027.”
  • This week, RER continues to work through CIAT and with other business and insurance organizations to encourage Senate leaders to include TRIA reauthorization in the FY2027 National Defense Authorization Act (NDAA). 
  • However, the Fiscal Year 2027 National Defense Authorization Act (NDAA) (H.R.8800) is currently stalled in the Senate.
  • RER and its coalition support Amendment #5879, offered by Sens. Dave McCormick (R-PA), Tina Smith (D-MN), Thom Tillis (R-NC), and Ruben Gallego (D-AZ), for inclusion in the FY 2027 NDAA. The amendment is identical to the Senate TRIA reauthorization bill, S. 4395, and would extend TRIA for seven years. (Roundtable Weekly, May 1)

What’s Next

  • Amendment #5879 to the FY2027 NDAA could provide a path for sending a seven-year TRIA reauthorization to the president’s desk this year.

RER and its industry partners urge Senate leaders to include the amendment in the NDAA and secure a long-term extension well ahead of the program’s 2027 expiration.

21st Century ROAD to Housing Act Becomes Law

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The landmark, bipartisan, bicameral 21st Century ROAD to Housing Act became law Saturday without President Trump’s signature, culminating months of congressional work and advocacy by The Real Estate Roundtable and its housing coalition partners. (NYT, July 11|  Bill Text  | One-pager | Section-by-Section, June 24)

State of Play

U.S. Capitol - viewing upward from left
  • The Senate approved the final package 85–5 on June 22, followed by a 358–32 vote in the House on June 23.  (Roundtable Weekly, June 26)
  • President Trump canceled a planned June 24 signing ceremony and later declined to sign the measure in protest over the Senate’s failure to pass the unrelated SAVE America Act. (Axios, July 10 | 11)
  • Because he neither signed nor vetoed the housing bill, it became law July 11 under the Constitution’s 10-day provision. (CBS News, July 11)
  • The bill was championed by House Financial Services Committee Chairman French Hill (R-AR), Ranking Member Maxine Waters (D-CA), Senate Banking Committee Chairman Tim Scott (R-SC), and Ranking Member Elizabeth Warren (D-MA).
  • “Homeownership should be within reach for more Americans, and this law moves us closer to that goal,” Chairman Hill said Saturday. (Rep. Hill Press Release, July 11)

Why It Matters

  • The bill is the most consequential housing package in a generation, with reforms aimed at increasing housing supply, boosting homeownership, and improving affordability. (One-pager | Section-by-Section, June 24)
  • The package advances major reforms to modernize federal housing programs, streamline environmental reviews, reduce barriers to construction, support manufactured housing, build more homes in Opportunity Zones, encourage transit-oriented development, and promote local zoning and land-use reforms. (Roundtable Weekly, May 22 | June 18)
  • For RER, a significant achievement is the removal of the Senate bill’s unconstitutional seven-year forced-sale mandate, which would have required certain owners to sell newly constructed build-to-rent homes to individual buyers. (RER Fact Sheet, July 17)
  • RER and other housing stakeholders warned that the mandate would be counterproductive—discouraging new construction and undermining efforts to increase housing supply.

RER Advocacy

  • Over the past several months, RER and its housing partners worked throughout the legislative process to preserve the package’s supply-focused reforms and remove the forced-sale mandate targeting build-to-rent housing through letters to Congress, coalition letters of support, and direct engagement with lawmakers.
  • RER also led efforts to raise constitutional concerns about the Senate’s forced-sale mandate, through a white paper by former U.S. Solicitor General Paul Clement, which characterized the provision as an unprecedented federal market intervention and outlined a “triple threat” to the U.S. Constitution. (RER’s One Pager, May 18 | RER Letter, May 12 | Roundtable Weekly, April 17)
  • “Enactment of the 21st Century ROAD to Housing Act is a historic bipartisan achievement that will help expand housing supply, reduce barriers to construction, and improve affordability nationwide,” said RER President and CEO Jeffrey DeBoer.
  • “This law protects private property rights and preserves the capital needed to build more homes, while advancing practical reforms to reduce regulatory barriers, modernize federal housing programs, and expand rental and homeownership opportunities. We commend Chairman Hill, Ranking Member Waters, Chairman Scott, Ranking Member Warren, and congressional leaders for their persistence in getting this comprehensive package across the finish line.” DeBoer said. (RER Fact Sheet, June 8)
  • DeBoer noted that the reforms will take time to reach the housing marketplace. “These reforms are significant, but they will take time to fully filter into the housing marketplace and begin correcting the supply imbalance caused by years of underbuilding and regulatory barriers,” DeBoer said. (RER Statement, June 18)

What’s Next

  • The institutional investor purchase restrictions are scheduled to take effect six months after enactment and expire after 15 years.
  • HUD, working with the Treasury, the Securities and Exchange Commission, and the Federal Housing Finance Agency, is directed to develop and implement regulations to avoid adverse effects on consumers and communities.

As federal agencies begin implementing the law’s numerous housing and banking provisions, RER will remain engaged throughout the process.

Update: ENERGY STAR, Codes, Building Standards and More

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Federal and other officials continue to weigh a wide range of energy policies affecting commercial real estate. RER’s Sustainability Policy Advisory Committee (SPAC) is coordinating industry input to ensure these measures are practical, cost-effective, and grounded in real-world CRE development, operational, and financing decisions.

ENERGY STAR

  • Senate Appropriations Committee Chair Susan Collins (R-ME) also sent a July 2 letter to EPA Administrator Lee Zeldin requesting information about the transition, funding, and staffing for ENERGY STAR. (Letter, July 2)
  • A short-term continuing resolution to extend current funding is increasingly likely. Congress is not expected to complete FY 2027 appropriations legislation by Sept. 30, the end of the present fiscal year.
  • ENERGY STAR is a critical program for CRE. According to the program’s National Buildings Registry, over 7 billion square feet of U.S. commercial floor space have been ENERGY STAR certified.
  • Why It Matters: CRE relies heavily on Portfolio Manager, ENERGY STAR’s standard energy and water benchmarking tool, for investor reporting, capital expense (capex) planning, building certifications, and compliance with state and local requirements.

Building Codes and Performance Standards

Department of Energy building in Washington, DC
  • RER is preparing comments on DOE’s “cost methodology” to better reflect CRE “hold” periods and loan maturity horizons. Comments are due Aug. 3.

California Building Performance Standard (BPS)

  • The California Energy Commission (CEC) released its draft Building Energy Performance Strategy Report. This report lays the foundation for a future statewide building performance standard in California for large commercial and residential buildings.
  • RER, ICSC, and Nareit are coordinating with the California Business Properties Association (CBPA) to discuss priorities for the real estate industry’s response to California’s pre-regulatory study.
  • The CEC will hold a public workshop July 29 (1 pm – 3 pm ET). Written comments regarding the report are due August 21. (CEC’s filing instructions here.)
  • The CEC study refers to ASHRAE Standard 100 as a “starting point” for a potential statewide building performance standard in California.
  • RER has coordinated with ASHRAE to hold a briefing session (Tuesday, July 28, 2 pm – 3 pm ET) to inform our members on Standard 100’s building energy consumption and emissions targets. (Register here)

Solar Tax Credits

Workers on sustainable energy project on rooftop of building
  • Solar projects that “begin construction” between July 5 –Dec 31, 2026 must be “placed in service” by the end of 2027 to qualify for federal tax credits.
  • The court opinion found the IRS Notice 2025-42 issued last summer illegal. Under that notice, only “low output solar facilities” (1.5 MW or less) may establish the “beginning of construction” date for federal tax credit eligibility by spending at least 5% of total project costs.
  • Bottom line: Projects of 1.5 megawatts or less can rely on the 5% safe harbor under existing IRS guidance. The court ruling currently restores the safe harbor for larger projects as well, although uncertainty remains because Treasury could appeal or issue revised guidance. (RER’s Fact Sheet -Clean Energy Tax Incentives, Aug. 27, 2025)

Quick Hits

  • Data Centers: The North American Electric Reliability Corporation (NERC) is on track with its Large Load Action Plan to eventually register data centers and likely require them to ultimately report their electricity use and other grid impacts. (NERC Primer | 2026 “State of Grid Reliability” Full Report and Snapshot (June 24) | Roundtable Weekly (May 8)
  • California Climate Reporting Rule: The California Energy Commission (CEC) released its anticipated “draft strategy report” to lay the foundation for an eventual statewide BPS law. The deadline for companies’ first public emissions disclosures has been pushed back from this coming August to November 10.  (ESG Today (June 25) | KPMG alert (June 25) | JD Supra (July 3)
  • Permitting Reform: Senate negotiators continue working toward a bipartisan permitting reform package ahead of the August recess, with transmission policy remaining a key sticking point. Lawmakers are also divided over environmental and historic preservation reviews and limits on the administration’s authority to revoke previously approved energy project permits. (E&E News, July 13)

RER’s SPAC will continue engaging federal agencies, Congress, state regulators, and industry partners as these initiatives develop. SPAC is chaired by RER Board MemberTony Malkin (Chairman and CEO, Empire State Realty Trust). SPAC’s Vice Chair is Tamara Chernomordik (Vice President, Kimco Realty).

Roundtable Weekly Will Resume Publication on July 17, 2026

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The Roundtable’s policy news digest will resume publication on Friday, July 17, 2026.

Recent issues of Roundtable Weekly can be searched by keyword here.