Tag: Electric Grid

Policymakers Continue Focus on Grid Reliability, Electricity Affordability 

Posted on by abigail_grenadier

Congress and the White House are elevating questions around energy infrastructure, cost allocation, and the ability of the power sector to meet the needs of AI in a rapidly evolving economy.

Hearing Spotlights Grid Strain

  • On March 25, the Senate Energy and Natural Resources (ENR) Committee held a hearing on the state of the U.S. bulk power system. Lawmakers and witnesses pointed to growing strain from rising electricity demand, infrastructure delays, and reliability concerns. (Senate ENR Hearing, Mar. 25)
  • Witnesses agreed the U.S. is entering a new phase of electricity demand growth not seen in decades—driven by a combination of AI applications, domestic manufacturing, and electrification—creating both reliability risks and investment uncertainty. (Senate ENR Hearing, Mar. 25)
  • Lawmakers and witnesses suggested several solution pathways, including permitting reform to accelerate project approvals, expanded transmission buildout to relieve congestion, and improved interconnection processes to bring new generation online faster. (Senate ENR Hearing, Mar. 25)
  • Dr. Liza Reed (Niskanen Center) emphasized the central role of transmission, stating, “We need more energy and transmission to move that energy,” and warning that “a shortage of grid capacity is the primary barrier to the cost-effective and swift deployment of AI in this country.” (Reed Testimony, Mar. 25)
  • As The Real Estate Roundtable’s (RER) Policy Guide on building performance standards states, the transition to a digital economy raises serious concerns about electricity availability, as “[v]ast swaths of the U.S. are at risk of running short of power.” (Roundtable Weekly, Oct. 11, 2024)

Executive Action

  • On March 20, the White House released its National Policy Framework for Artificial Intelligence, accelerating congressional attention on these issues by directly linking data center growth to energy policy. (White House AI Framework, Mar. 20)
  • The framework calls on Congress to “ensure that residential ratepayers do not experience increased electricity costs as a result of new AI data center construction and operation” while also urging policymakers to “streamline federal permitting for AI infrastructure construction and operation.” (White House AI Framework, Mar. 20)
  • The administration’s approach builds on its earlier ratepayer protection pledge, which requires major technology companies to provide or pay for their own power. White House officials have urged Congress to codify that commitment into law. (E&E News, Mar. 23)
  • Congressional leaders quickly signaled alignment with the framework. In a joint statement, House Republican leaders said Congress must “enact a national framework that unleashes the full potential of AI… and provides important protections for American families.” (E&E News, Mar. 23)
  • At the same time, divisions remain, with some lawmakers raising concerns about federal preemption and the broader scope of the proposal. (E&E News, March 23)

State of Play – Permitting Reform

  • Lawmakers have been advancing multiple legislative approaches to address permitting delays, transmission bottlenecks, and the growing energy demands of data centers.
  • Notably, the RER-backed, bipartisan SPEED Act (H.R. 4776,), which passed the House in December 2025, would provide permitting certainty, codify certain NEPA reforms, and streamline environmental reviews for energy infrastructure. (Roundtable Weekly, Dec. 19, 2025)
  • RER believes permitting reform is essential for advancing our economy’s energy transition. The current fragmented system of administrative reviews and approvals hinders the delivery of quick, low-cost, reliable electricity to our nation’s homes and commercial buildings. (Roundtable Weekly, Oct. 10, 2025)
  • Permitting reform talks remain active but unsettled. Bipartisan negotiations continue and some Republicans consider narrower reconciliation options, though procedural constraints and the GOP’s narrow majority leave the path forward uncertain. (E&E News, Mar. 26)

Data Centers

  • Separately, lawmakers have introduced a range of proposals addressing data center energy use and cost allocation.
  • Recently introduced bills would require federal studies on ratepayer impacts (H.R. 6529), expand FERC oversight (H.R. 8033), ensure large-load customers cover their electricity costs (H.R. 7977), and mandate dedicated power sources for new data centers (S. 3852)—reflecting growing congressional focus on preventing cost shifts to consumers. (E&E News, Mar. 23)
  • On March 25, Sen. Dick Durbin (D-IL) introduced the Data Center Water and Energy Transparency Act, which would require data center developers and operators to disclose energy and water use to state and local officials considering new projects. (Sen. Durbin Press Release, Mar. 25)
  • Meanwhile, Senators Elizabeth Warren (D-MA) and Josh Hawley (R-MO) joined in a letter to the Energy Department’s data gathering arm, urging the agency to “establish a mandatory annual reporting requirement for data centers and other large loads.” (Sens. Warren, Hawley press release |  The Verge, Mar. 26)

RER will continue to engage with members of Congress and the administration to advance policies that streamline project approvals, support efficient cost allocation, and enable the energy infrastructure needed to power the real estate sector and the broader economy.

Energy Policy Update: Permitting Push, ENERGY STAR Preserved, Grid Stressed

Posted on by abigail_grenadier

In Washington this week, President Donald Trump signed a bipartisan FY 2026 appropriations bill preserving ENERGY STAR funding, lawmakers refocused on permitting reform, and Winter Storm Fern exposed challenges to electric grid reliability driven by extreme weather.

ENERGY STAR

  • President Trump signed the bipartisan FY 2026 appropriations bill (H.R. 6938) into law on Jan. 23, securing approximately $33 million in funding for EPA’s ENERGY STAR program through Sept. 30. (E&E News, Jan. 29)
  • The agreement preserves the voluntary efficiency labeling initiative after earlier proposals to eliminate it and sets, for the first time, a specific mandatory annual funding level.
  • ENERGY STAR is a long-standing, market-based program that helps lower energy costs and supports “retrofit” investments for all commercial real estate asset classes. (Roundtable Weekly, Jan. 9)
  • The Real Estate Roundtable (RER) has long urged the “business case” to support the ENERGY STAR program. RER is working with a coalition of multi-industry partners in the real estate, manufacturing, consumer tech, and retail sectors to explain to Congress and the administration why ENERGY STAR is critical to the national “energy dominance” agenda. (Roundtable Weekly, June 6; May 23).

Permitting Reform

  • Senate EPW Committee Chair Shelley Moore Capito (R-WV) said permitting reform must be bipartisan, “project neutral,” and provide developers “predictability, consistency and finality” in securing permits in order to be effective. (E&E News, Jan. 29)
  • Abigail Ross Hopper (President and CEO of the Solar Energy Industries Association), testified that permitting reform should rest on three core principles: project certainty for approved projects, reduced timelines through streamlined and coordinated reviews, and a faster transmission buildout supported by stronger planning, permitting authority, and grid modernization. (UtilityDive, Jan. 29)
  • Faster permitting remains central to accelerating the buildout of the generation and transmission needed to meet rising electricity demand and improve reliability.

Winter Storm & Electric Grid

  • Ahead of Winter Storm Fern, the Department of Energy directed grid operators to be prepared to tap backup generation from large facilities—including data centers—to prevent outages and limit price spikes.
  • Energy Secretary Chris Wright framed the directive as part of a response to a “national energy emergency,” reflecting heightened reliability concerns as extreme weather collides with rapidly rising electricity demand from AI and other large loads. (WSJ, Jan. 22)
  • In the wake of this week’s winter storm, the North American Electric Reliability Corp. (NERC) warned that power generation and transmission are not growing fast enough to meet accelerating demand. NERC cautioned that several regions may lack sufficient energy supplies during extreme winter conditions, raising the stakes for grid expansion and resilience planning. (PoliticoPro, Jan. 29 | PoliticoPro, Jan 25)

RER will continue advocating for policies that remove permitting bottlenecks and support cost-effective grid modernization to ensure a robust supply of affordable power and a safe, reliable electric grid.

Record-Level Investments Aim to Enhance Grid Reliability

Posted on by abigail_grenadier

Unprecedented demand for electricity is prompting major private sector investments to shore up the grid’s security and reliability, amid the Trump Administration’s cancellation of Biden era clean energy funds.

Billions in Private Investments

  • Investor-owned electric companies plan to invest an unprecedented record-high $208 billion in capital projects this year — a $30 billion increase from 2024 — to modernize transmission systems, expand capacity, and manage consumer costs, according to new Edison Electric Institute (EEI) data. (Axios, Oct. 7)
  • “Our new data shows how our industry is strengthening the energy grid with real investments—in jobs, critical infrastructure, and communities across the nation,” Edison Electric Institute President and CEO Drew Maloney said in a statement. (Axios, Oct. 7)

Major Energy Policy Shift

  • Meanwhile, the Trump administration is cutting federal support “to get low-cost renewable projects on the grid”—cancelling billions in Biden administration project funding—and “pinning many of its promises of energy affordability on a nuclear moon shot.” (PoliticoPro, Oct. 6).
  • The Department of Energy (DOE) announced millions to “reinvigorate America’s coal industry” (Release, Sept. 25), while the Department of the Interior (DOI) has opened up more federal lands to coal leasing. (Release, Sept. 29)
  • The Environmental Protection Agency (EPA) is pushing for a natural gas pipeline “vital to New England’s grid stability.” (Release, Aug. 6)
  • The sharp policy swing has some members of Congress calling for a fuel-agnostic, all-of-the-above national energy strategy. “We need every electron we can get if we want to be energy dominant. To do that, we should take every electron,” said Sen. John Curtis (R-UT). (PoliticoPro, Oct. 6)

The Drivers

  • Electricity demand is spiking from a “perfect storm” of multiple forces:
  • AI and Data Centers: Expected to account for nearly half of global demand growth through 2030. (IEA 2025)
  • EV Charging: Electric vehicles are expected to raise global power demand 6–8% by 2035 (IEA 2024)
  • Manufacturing Reshoring: New U.S. facilities for semiconductors, batteries, and critical minerals production will significantly increase industrial load (CSIS 2024)
  • Crypto Mining: U.S. Bitcoin mining consumes electricity equal to powering 6 million homes (EIA 2024)
  • Building Electrification: 40% of U.S. buildings now use electric heating, driven by codes, tenant preferences, and investor sustainability demands (BOMA 2023)

Permitting Reform

  • Permitting reform continues to be a top bipartisan priority on Capitol Hill, as lawmakers debate how best to reform the federal approval process for energy infrastructure projects. (Utility Dive, Sept. 18 | Roundtable Weekly, Oct. 2024)
  • Last month, the bipartisan House Problem Solvers Caucus released a framework to speed construction of transmission lines, pipelines, and power projects to meet surging energy demand. (PoliticoPro, Sept. 18)
  • In September, the House Natural Resources Committee held a legislative hearing on a trio of bipartisan permitting reform bills—including Chair Bruce Westerman’s (R-AR) SPEED Act, aimed at streamlining the permitting process. “My goal is to have a big permitting bill sitting over at the Senate for them to consider with some bipartisan support.” (PoliticoPro, Sept. 18)
  • At an event last month, White House National Energy Dominance Council Executive Director Jarrod Agen said, “Probably the top priority for us from an energy perspective” is permitting reform to build transmission lines and pipelines. (E&E News, Sept. 8)
  • RER believes permitting reform is essential for advancing our economy’s energy transition. The current fragmented system of administrative reviews and approvals hinders the delivery of quick, low-cost, reliable electricity to our nation’s homes and commercial buildings. (Roundtable Weekly, March 7)

Energy supply, grid reliability, and infrastructure investment will be a central topic at RER’s Fall Meeting (Roundtable-level members only) on Oct. 27–28 in Washington, D.C.

Trump Executive Orders Push Energy Dominance Agenda

Posted on by abigail_grenadier

President Trump issued executive orders this week for a policy agenda to develop domestic energy supplies, ensure grid reliability, and meet increased electricity demands driven by artificial intelligence (AI).  (AP News, April 8)

Grid Reliability Executive Order (EO)

  • It states that America’s leadership in technological innovation “depends on a reliable supply of energy from all electric generation sources, particularly those secure, redundant fuel supplies that are capable of extended operations.” (Politico, April 8)
  • Building efficiency measures that yield energy savings are also key to relieving electricity grid constraints to accommodate more energy users. RER and a broad coalition of real estate organizations urged heightened focus on efficiency programs by voicing strong support for ENERGY STAR in a recent letter to EPA Administrator Lee Zeldin. (RW, April 4)

State Overreach EO

  • The EO on “Protecting American Energy from State Overreach” reflects the administration’s view that “American energy dominance is threatened when State and local governments seek to regulate energy beyond their constitutional or statutory authorities.”  (Axios, April 9)
  • Governors committed to reducing the use of fossil fuels and combat climate change within their borders said they were not “intimidate[d]” by the Trump order, signaling likely litigation. (E&E News, April 9; Reuters, April 9)
  • In February, RER submitted a letter to Congress requesting oversight of federal DOE grants that induce states and localities to require all-electric buildings and zero emissions “targets,” through onerous Building Performance Standards (BPS). (RW, Feb. 28)
  • RER’s peer reviewed 20-point policy guide for fair BPS mandates emphasizes that states and localities receiving federal grants should not levy fines on buildings that meet US-EPA and US-DOE high performance industry leadership standards. (RW, Oct. 11)

Tariffs and Energy

  • While the administration’s recent executive orders could bolster grid reliability, the potential for broad tariffs may introduce new costs and complexities undermining energy affordability and infrastructure investment. (PoliticoPro, April 8)
  • Tariffs on critical grid components could exacerbate supply chain shortages and drive up electricity prices. (CNet, April 4)
  • On Tuesday, U.S. Senators Bill Cassidy (R-LA) and Lindsey Graham (R-SC) introduced the latest version of the Foreign Pollution Fee Act (FPFA), a carbon tariff aimed at penalizing imported goods manufactured with higher CO2 emissions than domestic alternatives. (E&E News, April 9)  (Press Release, April 8)
  • Prospects for imminent passage of the FPFA are remote. Yet, the bill signals some interest by Republican Senators to tie climate policy to tariff policy where overseas manufacturers produce aluminum, cement, iron, steel, and glass with higher carbon emissions compared to like-kind U.S. manufactured products. (American Action Forum, April 8)  
  • RER submitted comments on the FPFA in January, raising concerns regarding the impact of a carbon tariff on affordable housing construction, rebuilding after natural disasters, and technical issues on calculating “indirect emissions” associated with product manufacturing. (RW, Feb. 7)

RER will continue engaging with policymakers to ensure federal actions promote reliable, affordable energy without unintended economic repercussions.

Policymakers Sharpen Focus on Grid Reliability

Posted on by Trey Jackson

Recent legislative hearings and administrative initiatives have highlighted the critical need for a resilient and affordable electricity supply.​

The Big Picture

  • EPA Administrator Lee Zeldin’s initiative for “Powering the Great American Comeback,” and DOE Secretary Chris Wright’s 9-point plan for US “energy dominance,” outlined agency strategies emphasizing permitting reform, strengthening grid reliability, expanding U.S. energy production to fuel economic growth, and position the U.S. as a global leader in AI and advanced energy technologies.
  • As The Roundtable’s Policy Guide on building performance standards states, the transition to a digital economy raises serious concerns about electricity availability. “AI could soon need as much electricity as an entire country” as “[v]ast swaths of the U.S. are at risk of running short of power.” (Roundtable Weekly, Jan. 25)

Why It Matters

  • Policymakers and industry leaders are debating how to balance investment in renewable energy, transmission infrastructure, and traditional baseload generation sources to ensure stable electricity supply. (E&E News, Feb. 26)
  • During this week’s joint address to Congress, President Trump emphasized the administration’s focus on reducing energy costs: “A major focus of our fight to defeat inflation is rapidly reducing the cost of energy … That’s why, on my first day in office, I declared a national energy emergency… It’s called drill, baby, drill.”
  • In a new report from The Center for Strategic & International Studies warns that while AI is digital, its biggest hurdle is physical infrastructure. The report explores using President Trump’s energy “emergency” declaration to fast-track permitting and urges a stronger DOE role in accelerating nuclear projects. (Axios, March 5)

Congressional Hearing

  • Industry experts argued that regulatory hurdles are slowing energy infrastructure projects, creating a gap between federal energy goals and grid capacity. (Latitude Media, March 5)

Clean Energy & Economic Impact

  • The American Clean Power Association (ACP) reports that while the Inflation Reduction Act (IRA) has boosted clean energy investment, uncertainty over efforts to cut tax credits raises concerns about long-term project financing.
  • In 2024, U.S. developers added 48 gigawatts of new utility-scale solar, storage, and wind capacity—a 33% increase from the previous year. (ACP Report, March 5)
  • The clean energy industry argues that wind and solar projects can be built faster than natural gas and nuclear, making them essential for stabilizing the grid. (E&E News, Feb.26)
  • 79% of operational clean power capacity is now located in Republican-held districts, with GOP districts also home to 77% of new clean energy additions last year. (PoliticoPro, March 5)
  • North America’s data center sector doubled its construction supply in 2024 to a record 6,350.1 megawatts (MW), underscoring the increasing power demands of AI-driven computing, according to CBRE’s latest North American Data Center Trend Report.  (ConnectCRE, March 4)

The Real Estate Roundtable will continue working with the administration to advance policies that streamline energy project approvals, strengthen grid resilience, ensuring a stable, reliable power supply to fuel economic growth and innovation.

Electric Grid Strain: CRE’s Role in Addressing Energy Challenges

Posted on by Trey Jackson

Demands for artificial intelligence (AI), advanced manufacturing, electric vehicles, and building electrification are straining the U.S. electric grid—creating challenges and opportunities for commercial real estate (CRE). (Deloitte, Dec. 9)

Why it Matters

  • The grid is at a “tipping point.” Heightened demands for power by consumers, businesses, and government are posing significant risks to energy reliability and driving data center construction to meet the needs. (PoliticoPro, Dec. 18)
  • The organization authorized by Congress to assess grid capacity highlighted last month the “critical reliability challenges” needed to satisfy “escalating energy growth,” as retiring power plants age-out of service. The report also noted the need to accelerate construction of transmission projects to bring electricity to the nation’s cities and suburbs. (N. American Electric Reliability Corp., 2024 Assessment.)
  • President Joe Biden is expected to issue an executive order as soon as today to boost the construction of data centers on federal land to support AI, while also aiming to increase geothermal and nuclear energy production to power them. (PoliticoPro, Jan. 9)
  • Data center construction is surging to meet demand with site selection largely driven by power availability. Microsoft and Meta recently announced billions of data center investments. (E&E News, Jan. 10 | CBRE, Aug. 2024)
  • The Department of Energy (DOE) estimates data centers could consume up to 12% of U.S. electricity by 2028, largely attributed to demand from cloud and AI providers. (DOE News Release, Dec. 20)
  • As The Roundtable’s Policy Guide on building performance standards states, the transition to a digital economy raises serious concerns about electricity availability. “AI could soon need as much electricity as an entire country” as “[v]ast swaths of the U.S. are at risk of running short of power.” (Roundtable Weekly, Oct. 11)

Bipartisan House Report on AI

  • Policymakers and industry leaders are focusing more than ever on solutions to expand power generation and modernize the grid.
  • The Bipartisan House Task Force on AI released a report last month finding that AI’s critical role in U.S. economic and national security interests hinges on a robust power grid. (House AI Report, December 2024).
  • Recommendations from the Bipartisan House AI Task Force report include:
    • Develop metrics and standards to measure energy use and efficiency.
    • Allocate infrastructure costs to customers who benefit most from upgrades.
    • Use AI to improve energy infrastructure, production, and efficiency.

EPA’s Energy Data Campaign

  • Looking ahead, utilities, policymakers, and data center operators must collaborate to balance priorities such as grid upgrades, renewable energy procurement, water resource management, and equitable cost allocation. (Deloitte, Dec. 9)
  • This week, EPA continued its building energy data campaign to assist real estate owners in coordinating with utilities to access tenant space energy data.
  • To aid both owners, operators, and utility representatives in understanding this issue and potential solutions, EPA has prepared a number of energy data resources that can be found here.

A resilient electric grid is critical to sustaining economic growth. These issues will be featured in discussions at The Roundtable’s State on the Industry meeting on Jan. 22-23.