Summary

President Trump’s executive order on “Unleashing American Energy” calls for policies to: cut energy costs; strengthen the nation’s electric grid by developing “base load” power resources (coal, gas, nuclear) over intermittent sources (solar, wind); streamline federal permitting of energy infrastructure projects; and ensure America wins the global race for AI leadership.

The U.S. commercial real estate industry has a central role to play in achieving the country’s energy and economic goals. With energy demand surging, real estate is a critical partner to support energy investments, increase energy efficiency, and deliver energy savings across the economy.

Key Takeaways

Avoided energy use—or “nega-watts”—represents the most cost-efficient strategy for strengthening U.S. energy security. Building upgrades that reduce power demand save consumers money, support grid reliability, and free up energy use for AI data centers, mining crypto, and the re-shoring of the U.S industrial base.

Grid reliability is essential. It is crucial to expand grid capacity and invest in long-distance transmission. Federal permitting reform is critical to speed up energy infrastructure projects.

RER supports a national “all of the above” energy strategy that invests in building efficiency, grid modernization, faster permitting, and innovation across all energy sources.

See the full fact sheet.

Summary

On July 4, 2025, President Trump signed the One Big Beautiful Bill (OB3) Act into law. It makes significant changes to energy-related tax benefits pre-dating and modified by the Biden-era Inflation Reduction Act (IRA).

This document summarizes how the OB3 Act treats solar, storage, energy efficiency, and similar projects in commercial and multifamily real estate. A detailed fact sheet on RER’s website (here) provides a deeper analysis of the complex rules regarding tax incentives that may accelerate ROI for energy-related cap ex projects.

Key Takeaways

Energy-related building investments that begin construction in 2025 and after should consider:

Tax credits that start to phase out over the next one to five years (e.g., the Section 48E “tech neutral” credit for solar generation; the Section 179D deduction and 45L credit for energy efficiency projects; and the 30C credit for EV charging stations);

Tax credits that remain available well into the 2030s (e.g., Section 48E for energy storage); and

Permanent options for “full expensing” that may accelerate tax write-offs of energy-related building investments, regardless of Section 48E or other tax credit availability.

See the full fact sheet.

Summary

The federal ENERGY STAR program must be preserved as a voluntary, non-regulatory public-private partnership. Proposed budget cuts and agency staff reorganizations from the Trump administration indicate that it may eliminate the program. Commercial, residential, and manufacturing stakeholders all rely on the program heavily and are united in advocating for its preservation.

Meanwhile, a number of progressive cities and states (map) have enacted building performance standards (BPS) mandates—with widely varying rules on emissions, electrification, and compliance timelines. The regulatory specifics vary from jurisdiction to jurisdiction—making compliance exceedingly complex and expensive. To help bring consistency to the nationwide “patchwork” of BPS regulations, RER has developed a peer-reviewed policy guide outlining 20 key considerations for any jurisdiction adopting a BPS law.

In addition, non-governmental organizations (NGOs) have developed their own BPS-type standards and climate accounting frameworks—chief among them the Science Based Targets Initiative (SBTi) and the World Resources Institute’s Greenhouse Gas (GHG) Protocol. These NGO standards increasingly influence both regulatory policy and private capital markets. Many real estate lenders and equity investors have adopted SBTi and GHG Protocol frameworks to align with their ESG investment principles.

Key Takeaways

Voluntary, non-regulatory federal guidelines like ENERGY STAR recognizing “high performance” real estate remain critical. These programs help quantify energy savings, attract capital, place less strain on the grid, and promote innovation in U.S. buildings.

More than 330,000 buildings—representing nearly 25 percent of U.S. commercial building floor space—utilized EPA’s Portfolio Manager software last year.

ENERGY STAR-certified buildings achieve an average of 35 percent less energy usage compared to similar non-certified buildings. The program has saved businesses and families nearly $200 billion in utility bills since 1992, including $14 billion in 2024 alone

States and cities are adopting BPS mandates that often impose rigid electrification or net zero emissions targets. These laws vary significantly and frequently penalize buildings already recognized as high-performance assets under federal programs.

See the full fact sheet.