The Real Estate Roundtable (RER) is pleased to share our 2025 Annual Report, A New Era for America’s Buildings: Policy to meet increased energy demands, new technology, and evolving living and working environments.
Roundtable Leadership
This year’s report highlights how RER’s engagement drove policy wins in tax, capital and credit, housing, energy, and homeland security, amid one of the most intense legislative years in recent memory.
It also underscores commercial real estate’s vital role in powering jobs, growth, and communities nationwide, while ensuring our industry’s trusted voice is heard at the highest levels in Washington.
“The pace and complexity of policy this past year has been unprecedented, requiring rapid and well-coordinated responses,” said Jeffrey DeBoer, RER President and CEO. “Thanks to the engagement and expertise of our members, policy committees and national real estate partners, we have met each legislative challenge with substance, speed and credibility. I believe the past 12 months have been among the most challenging and most successful in our history.”
“In the year ahead, we will continue to evolve how we communicate our mission, align our membership with the future of the industry and focus on the most urgent issues,” said Kathleen McCarthy, RER Chair and Global Co-Head of Blackstone Real Estate. “Real estate anchors our communities and touches every part of American life—from where people live and work to how businesses grow. As the nation faces a housing crisis and urgent energy challenges, public policy must support a strong, resilient real estate sector that drives solutions, fuels economic growth and improves quality of life and opportunity for all.”
Explore the 2025 Report
RER’s FY2025 Annual Report details the organization’s mission and recent activities, and offers potential policy solutions to today’s pressing and far-reaching industry challenges, including:
Major changes to the federal tax code’s clean energy incentives, signed into law on July 4 by the One Big Beautiful Bill (OB3) Act, continue to reshape the future of building-related solar, storage, and energy efficiency investments.
The OB3 Act accelerates the phase-down of certain tax credits, shortens eligibility timelines, and adds stricter foreign content and control rules. Projects beginning construction in 2025 and beyond should consider:
Tax credits that phase out over the next few years (such as the Section 48E “tech neutral” credit for solar, the Section 179D deduction and 45L credit for energy efficiency projects, and the Section 30C credit for EV charging stations);
Tax credits that remain available well into the 2030s (such as Section 48E for energy storage); and
Permanent options for “full expensing” that can accelerate tax write-offs of energy-related and other building investments, regardless of Section 48E or other tax credit availability
Solar “Beginning of Construction”
A July 7 White House executive order directed Treasury to tighten rules around the IRS’s “5% Safe Harbor” test, a key determinant of when solar projects officially “begin construction.” (Roundtable Weekly, July 11)
The timing of when rooftop solar projects are deemed to “begin construction” is crucial for determining tax credit eligibility under the OB3 Act’s accelerated phase-down of the Section 48E credit.
RER, Nareit, NAIOP, and ICSC submitted a joint letter to Treasury on Aug. 8 urging continued reliance on both the Safe Harbor and Physical Work Tests. (Letter, Aug. 8)
On Aug. 15, the IRS issued Notice 2025‑42, preserving the Safe Harbor for rooftop solar projects of 1.5 MW or less, which includes most CRE rooftop solar projects and maintains their eligibility for Section 48E credits (for as long as they remain available). (Clean Energy Council, Aug. 18)
EPA ENERGY STAR
The status of the ENERGY STAR program should become clearer as part of the “phase 2” reorganization plan of the Environmental Protection Agency (EPA), expected to be implemented by the end of September, as per a White House budget office memo. (EPA press release, July 18) (Politico, July 17).
RER and multi-industry coalition partners advocated strongly for Senate and House Appropriations Committee actions this summer, which would provide ample federal spending for ENERGY STAR in FY’2026 starting on Oct. 1. (Roundtable Weekly, July 25).
Meanwhile, ENERGY STAR recently certified 131 buildings nationwide under its voluntary new NextGen program, available for highly energy efficient buildings that also opt to reduce emissions and use renewable energy.
The California Air Resources Board (CARB) released draft guidance this week for companies required to publicly report on climate-related financial risks under state law SB 261.
Quantifying and reporting Scope 1, 2, and 3 emissions will not be mandatory in the initial reporting period under California’s law, which applies to companies with annual worldwide revenue greater than $500 million. (PoliticoPro, Sept. 2 | RER’s fact sheet on SB 261 and SB 253, Sept. 2023)
The new reporting requirements are expected to start in 2026. Final rules from CARB are expected by December. (ESGToday, Sept. 4)
Housing Affordability and Energy Codes
Next Tuesday, Sept. 9, the House subcommittee focused on energy policy will hold a hearing examining the impact of residential building energy codes on housing affordability. (Energy Subcomm. Press release, Sept. 2)
According to the memo prepared for the hearing, construction that aligns with the 2021 version of model residential energy codes can add $31,000 to the price of a new home, “and take up to 90 years for a home buyer to recoup the payback value.”
Witnesses at the hearing include representatives from the National Association of Home Builders (NAHB) and the natural gas utility serving the Washington, D.C. metro area.
RER will continue advocating to the Trump administration and Congress for clear, workable policies that support long-term real estate energy investments.
Congress returned from recess this week to heavy debate over government spending and the looming risk of a shutdown. Meanwhile, a new push for permitting reform gained steam.
Back in Session
With Congress back in session, legislative leaders have less than 30 days to pass a funding bill. Votes from both Democrats and Republicans will be needed to keep the government open.
However, Democratic anger over the White House’s use of “pocket rescissions” has created additional complications. The White House has used these rescissions to impound billions of dollars in congressionally approved funding, sparking opposition from Democrats and even some Senate Republicans. (Punchbowl News | The Hill, Sept. 3)
Senate Majority Leader John Thune (R-SD) is seeking bipartisan support for an FY’26 appropriations package, but it remains uncertain whether Congress will pass all funding bills or a short-term continuing resolution before the Sept. 30 deadline. (Punchbowl News, Sept. 3)
In addition, the National Flood Insurance Program (NFIP) is set to lapse on Sept. 30 unless reauthorized. The importance of the NFIP to the health of commercial real estate markets has grown as the number of billion-dollar natural disasters and the cost of insurance premiums continue to rise. (Fact sheet)
In late July, the House and Senate Appropriations Committees passed provisions preserving funding for the ENERGY STAR program in FY’26.
The Real Estate Roundtable (RER) will continue working with policymakers and a broad coalition of organizations to ensure that these provisions are reflected in the final appropriations package. (Roundtable Weekly, July 25)
Roundtable on the Road
House GOP leaders, are pressing ahead with early talks on another major domestic policy package, though momentum is uncertain as hopes for passage by year’s end fade.
Senate Majority Leader John Thune didn’t definitively rule out a second megabill in a brief interview but acknowledged “there would have to be a reason to do it.” (PoliticoPro, Sept. 4)
RER’s SVP & Counsel Ryan McCormick discussed these dynamics this week at the University of Utah Ivory-Boyer Real Estate Center Fall Board Retreat, where he outlined the OB3 Act’s impact on CRE, RER’s advocacy on tax policy, and what to expect this fall in Washington.
Permitting Reform Push
A bipartisan group of lawmakers, including House Natural Resources Chair Bruce Westerman (R-AR), Rep. Jared Golden (D-ME), and Senate Environment and Public Works Chair Shelley Moore Capito (R-WV), has not given up on efforts to reform the permitting process for energy infrastructure.
While the effort failed last year, Rep. Capito said that she’s seen a “convergence of clean energy folks and people like me who are all-of-the-above meeting together with an urgency.” (Politico, Sept. 2)
For years, energy projects of all kinds have been mired in slow, inefficient, and often years-long environmental reviews—among other issues. These problems have delayed the construction of critical infrastructure and made it more difficult for developers to realize their investments.
RER has strongly advocated for an “all of the above” energy strategy focused on ensuring an abundant supply of energy, advancing programs to avoid energy waste, strengthening the nation’s electric grid, streamlining federal permitting processes, and fostering innovation in artificial intelligence. Permitting reform is a critical part of achieving these objectives. (Fact sheet)
Permitting reform still faces an uphill battle—with policy differences on both sides of the aisle—but the renewed effort is a sign of positive momentum and continued urgency around the need for more energy infrastructure.
Looking Ahead
RER will keep engaging with policymakers on critical and emerging issues for the commercial real estate industry, particularly as momentum for permitting reform grows and congressional negotiations over the appropriations package heat up.
Major changes to the federal tax code’s clean energy incentives, signed into law on July 4 by the One Big Beautiful Bill Act (OB3 Act), continue to generate questions regarding the future of building-related solar, storage, and similar projects.
Why It Matters
The new law accelerates the phase-down of tax credits, shortens eligibility timelines, and adds new foreign content and control rules, creating an urgent planning window for energy-related building investments.
Regarding energy-related building investments, projects that begin construction in 2025 and after should consider:
Tax credits that phase-out over the next few years (such as the Section 48E “tech-neutral” credit for solar, the Section 179D deduction and 45L credit for energy efficiency projects, and the Section 30C credit for EV charging stations);
Tax credits that remain available well into the 2030s (such as Section 48E for energy storage); and
Permanent options for “full expensing” that can accelerate tax write-offs of energy-related and other building investments, regardless of Section 48E or other tax credit availability.
Executive Order Tightens Rules
A July 7 White House executive order directs the U.S. Treasury Department to consider revising the IRS’s longstanding “5% safe harbor” test to determine a project’s “beginning of construction” date, which could further tighten tax credit eligibility for investments such as rooftop solar. (Roundtable Weekly, July 11)
The EO also directs Treasury to strictly enforce the OB3 Act’s scheduled termination of clean energy production and investment tax credits under Sections 45Y and 48E of the Internal Revenue Code. Updated guidance is anticipated in August. (Bloomberg, July 7) (Utility Dive, July 9)
In a similar move, on Tuesday, Interior Secretary Doug Burgum issued a final order requiring high-level departmental scrutiny of solar projects on public lands, and on private property that requires Interior’s approval (such as solar panels on historic buildings, or installed as part of projects impacting federally-listed endangered species habitat). (Politico, July 18).
Market Impact
A new POLITICO analysis estimates that more than 662,000 jobs and $565 billion in investment tied to clean energy projects announced since 2017 could be atrisk under the OB3 Act. (PoliticoPro July 30)
Many of these projects depended on long-term planning horizons and Biden-era tax incentives, now constrained by tighter deadlines and new eligibility rules.
EPA Endangerment Finding
In related news, the Trump administration this week proposed eliminating the 2009 “Endangerment Finding.” This Obama-era decision underpins federal regulations to address climate change and limit greenhouse gas emissions from power plants, vehicles, and other sources. (EPA Press Release, July 30) (Politico, July 29)
The EPA’s proposal only impacts federal-level rules. Governors and officials in California, Colorado, New York, and elsewhere pledged to continue their own climate regulatory efforts, citing the need for science-based action. (BBC News, July 29; The Hill, July 29; Colorado Governor statement; NYS-DEC statement.)
In this regard, efforts by EPA Administrator Lee Zeldin to rescind the Endangerment Finding will likely have minimal impact on state and local Building Performance Standards (BPS) that aim to reduce energy use and emissions from commercial and multifamily properties. (See RER’s 20-Point BPS Guide (Oct. 2024)).
The EPA’s proposal is not yet final and will undergo a 45-day public comment period once published in the Federal Register. (PoliticoPro, July 29)
As regulatory guidance evolves, RER will continue advocating for clear, workable policies that support long-term real estate energy investments.
The Real Estate Roundtable’s (RER) 2025 Annual Meeting this week included discussions with public officials and industry leaders on a range of issues affecting commercial real estate, including market conditions, tax policy, the House’s recent passage of the One Big Beautiful Bill Act, tariffs and trade, affordable housing solutions, energy policy, and evolving security threats.
Roundtable Leadership
RERChair Kathleen McCarthy (Global Co-Head of Blackstone Real Estate, Blackstone) opened the meeting by thanking members for their consistent engagement and highlighting the significance of RER’s collaborative efforts in navigating a rapidly evolving policy landscape. (May 2025 Policy Priorities and Executive Summary)
During the meeting, RER members approved the nominees for its FY26 board of directors and policy advisory committee officers, which were announced by RER Nominating Committee Chair Geordy Johnson (CEO, The Johnson Group).
Addressing the membership, RER President and CEO Jeffrey DeBoer emphasized RER’s ongoing commitment to enhancing member involvement through RER’s policy advisory committees and underscored the value of strategic partnerships with other national real estate organizations for proactive policy advocacy. (Meeting Agenda)
Meeting Speakers
The Honorable Kevin Hassett (Director, National Economic Council) presented the administration’s economic agenda, focusing on housing initiatives, factory expensing, and the outlook for growth.
Geopolitical expert John Sitilides (Principal, Trilogy Advisors LLC; National Security Senior Fellow, Foreign Policy Research Institute) gave a presentation titled “Washington & the World: The New Geopolitics of Great Power Competition.” During the session, he discussed the geopolitical implications of tariffs, NATO relations, and strategic U.S. interests, including maritime security.
(L-R): Hessam Nadji (President and CEO, Marcus & Millichap), Martha Gimble (Executive Director, The Budget Lab at Yale University), and Jonathan Pollack (President, Starwood Capital Group) provided macroeconomic insights, reviewed current and future CRE market trends, and spoke about challenges amidst tariff-induced uncertainty. (Hessam Nadji Presentation | Martha Gimble Presentation)
Anna Palmer (Founder & CEO of Punchbowl News) offered her perspective on legislative developments and negotiations, and the rise of influential figures within both political parties.
Policy Advisory Committee Meetings
Each of RER’s policy advisory committees met this week in conjunction with the Annual Meeting for in-depth policy discussions. The committees hosted several congressional staff and regulatory officials.
SPAC Chair Anthony E. Malkin (Chairman and CEO, Empire State Realty Trust, Inc.), Co-Vice Chairs Ben Myers (Vice President, Sustainability, BXP) and Katie Rothenberg (Vice President, ESG, AvalonBay Communities, Inc.) led discussions on EPA’s ENERGY STAR program, grid reliability, clean energy procurement, and nuclear energy deployment. (Agenda & Speakers)
Tax Policy Advisory Committee (TPAC)
TPAC Chair Josh Parker (Chairman & CEO, Ancora Group Capital), Vice Chair David Friedline (Partner, Deloitte Tax LLP), and the Committee discussed the broad range of tax proposals affecting real estate that are working their way through Congress in the budget reconciliation bill. Panelists included senior staff from the offices of the House Speaker, Ways and Means Committee, Senator Tim Scott (R-SC), and Senator Todd Young (R-IN), as well as the Treasury Department. In addition, tax experts from Baker McKenzie, Sullivan & Cromwell, and Brownstein led or moderated discussions concerning potential new taxes on foreign investors, regulatory initiatives, and Opportunity Zones. (Agenda & Speakers)
Sustainability Policy Advisory Committee (SPAC)
SPAC Chair Anthony E. Malkin (Chairman and CEO, Empire State Realty Trust, Inc.) and Vice Chairs Ben Myers (Vice President, Sustainability, BXP) and Katie Rothenberg (VP, ESG, AvalonBay Communities, Inc.) led discussions on (Agenda & Speakers)
Joint Real Estate Capital Policy Advisory Committee (RECPAC) and Research Committee Meeting
D. Michael Van Konynenburg (President, Eastdil Secured) provided an overview of conditions in real estate credit and capital markets.
Following a national policy update from RER’SRyan McCormick (SVP & Counsel, RER) and Chip Rodgers (SVP, RER), ResearchCommittee ChairSpencer Levy (Global Chief Client Officer & Senior Economic Advisor, CBRE) and Darin Mellot (Vice President of Capital Markets Research, CBRE) led a discussion on the evolving post Liberation Day impact of tariffs on commercial real estate markets.
Robert Rubano (Executive Vice Chairman, Head of Equity, Debt, & Structured Finance, Cushman & Wakefield) moderated a capital market roundtable with David Bouton (Co-Head of U.S. CMBS, Citigroup), Jack Gay (Senior Managing Director, Global Head of Real Estate Debt, Nuveen Real Estate), Kathryn Ogden, (Head U.S. Corporate Banking and Global Head, Real Estate Capital Partners (RECP), RBC Capital Markets), and Matt Salem (Partner, Head of RE Credit, KKR). (Agenda & Speakers)
Homeland Security Task Force (HSTF) Meeting
HSTF Chair Amanda S. Mason (Executive Director, Global Intelligence, Related Companies) facilitated a number of discussions on the current threat picture. These discussions included a review of the risks to commercial facilities from lithium-ion batteries with John Frank (AXA XL Risk Consulting). The meeting also included a series of briefs from the FBI regarding the threats from terrorist and transnational criminal organizations that are directly threatening U.S. citizens and commercial facilities. These discussions included updates on the role of the cartels in violent crime, the deaths of American citizens from synthetic opioids, and the facilitation of nearly three million illegal migrant arrivals in 2024, putting U.S. communities at risk. Also addressed were the range of cyber and intelligence threats from China, targeting our critical infrastructure. (Agenda & Speakers)
RER’s 2025 Annual Report will be distributed in July. Next on RER’s FY 2025 meeting calendar is the Fall Meeting, which will take place on October 27-28 (restricted to Roundtable-level members only).
The Trump administration’s fiscal year 2026 budget released last week proposes to eliminate funding for ENERGY STAR—a voluntary, market-based program currently run by the Environmental Protection Agency (EPA) widely used by commercial real estate to track energy usage and reduce utility costs. (CNN, May 6)
Why It Matters
Reports also emerged this week of staff reorganization plans announced at EPA that would eliminate the agency’s larger department that currently houses ENERGY STAR. (Washington Post, May 6) (The Hill, May 6)
Administration officials say the planned restructuring is part of a broader effort to streamline federal agencies and cut discretionary spending. (LA Times, May 6)
Real estate assets that do more with less energy—as quantified, monetized, and recognized through Portfolio Manager and other ENERGY STAR offerings—are critical to achieving EPA’s pillars to “power the great American comeback.” (Roundtable Weekly, April 4)
ENERGY STAR is commercial real estate’s most relied-upon public-private partnership with the federal government It provides the industry standard for benchmarking energy use, informing smart capital investments, and supporting lower operational costs with less regulatory burden.
Over 330,000 buildings, encompassing nearly 25% of U.S. commercial floor space, have utilized this platform to make informed decisions on energy investments and capital projects. (RER Letter, April 4) (UrbanLand, May 8)
CRE Industry Supports ENERGY STAR
In response to the proposed cuts, RER President and CEO Jeffrey DeBoer commented on Tuesday:
“The highly successful ENERGY STAR program is integral to the U.S. real estate industry. Its software is embedded in the fabric of how profitable, energy efficient buildings are run and managed in all markets across the nation. ENERGY STAR provides the key tools for families and business to save money on their utility bills. Owners and developers rely on ENERGY STAR to attract investment capital so U.S. building infrastructure can compete with the best real estate assets in the world.
“ENERGY STAR also provides the best measure to reduce energy use so buildings put less strain on the grid – to free up the electricity we need to lead the world in artificial intelligence, support innovations in the crypto asset industry, and bring back manufacturing to America.” (UrbanLand, May 8)
“Only the federal government has all the data, talent, lab research, and other expertise necessary to run all of the facets of ENERGY STAR,” DeBoer continued. (RER Statement, May 7)
In April, RER and 17 industry organizationssent a letter to EPA Administrator Lee Zeldin expressing strong support for the program.
The coalition urged the administration to maintain ENERGY STAR’s voluntary framework, which enhances electric grid reliability, supports emissions reductions, and has saved consumers and businesses over $500 billion in energy costs since its inception. (Roundtable Weekly, April 4)
What’s Next
Congressional appropriators will determine the program’s future in the coming months as they review the president’s proposed budget.
ENERGY STAR has long received bipartisan support—including from moderate Republicans who cite its role in lowering energy costs and improving the efficiency of household appliances. (Washington Post, May 6)
RER looks forward to collaborating with the Trump Administration, Congress, the EPA, the Department of Energy, and our allies in the product manufacturing sector to transition the landmark ENERGY STAR public-private partnership as it evolves to support a new generation of cutting-edge buildings, plants, and consumer products.
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)
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 STARin 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 guidefor 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.
Recent legislative hearings and administrative initiatives have highlighted the critical need for a resilient and affordable electricity supply.
The Big Picture
The U.S. electric grid is under increasing strain from surging energy demand, driven by AI-powered data centers, manufacturing growth, and broader electrification efforts. (North American Electric Reliability Corp., Feb. 28) (Wood Mackenzie, Feb. 11)
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
On Wednesday, the House Energy and Commerce Committee’s Subcommittee on Energy convened a hearing titled “Scaling for Growth: Meeting the Demand for Reliable, Affordable Electricity.” Lawmakers and experts debated permitting delays, transmission bottlenecks, and regulatory uncertainty affecting the nation’s ability to meet growing energy needs. (Hearing Memo, March 5)
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.
This week’s confirmation hearings shed light on the Trump Administration’s ambitious energy agenda, including plans to expand American energy production, streamline project approvals, and explore a carbon tariff on imports. (PoliticoPro, Jan. 16)
“All of the Above” Energy Policy
President-elect Trump has prioritized “drill, baby, drill” as a cornerstone of his agenda, emphasizing energy independence and dominance through increased domestic oil and gas production.
Chris Wright, the Energy Secretary nominee, told the Senate Energy Committee on Wednesday that he would use the role to “unleash American energy at home and abroad” if confirmed. (Reuters, Jan. 15)
Wright said in his opening statement that he would focus on three objectives: removing barriers for energy projects, accelerating innovation by the national laboratories, and advancing U.S. energy domestically and abroad. (Roll Call, Jan. 16)
North Dakota Governor Doug Burgum, the Interior Secretary nominee, said at his Thursday confirmation hearing that the U.S. must expand domestic energy production and electricity generation to meet growing demand, particularly from AI technologies. (Politico, Jan. 16 | Roll Call, Jan. 16 )
Burgum supports an “all-of-the-above” approach that would utilize renewables and fossil fuels. Trump has also tapped Burgum to lead a White House-based energy council that would coordinate policy across the federal government. (Politico, Jan. 9)
Former Representative Lee Zeldin, the nominee for EPA Administrator, said at his Thursday hearing he would work in a bipartisan manner with career staff to fulfill the agency’s mission. (PoliticoPro, Jan. 16 | The Hill, Jan. 16)
Zeldin vowed to address climate change without “suffocating the economy,” and committed to private sector collaboration to “promote common sense, smart regulation.” (NBC News, Jan. 16 | Washington Post, Jan. 16)
Carbon Tariff Proposal
During his Thursday confirmation hearing, Treasury Secretary nominee Scott Bessent (see Policy Landscape story above) expressed interest in a carbon tariff on imports, suggesting it could be part of a broader Trump administration strategy to raise revenue, counter unfair trade practices, and boost negotiating leverage.
Bessent indicated the potential for such measures to align with the administration’s broader trade and economic goals. (PoliticoPro, Jan. 16)
Recently, Sen. Bill Cassidy (R-LA) proposed a bill, the “Foreign Pollution Fee Act” that would impose a “foreign pollution fee” on imported carbon-intensive products – including construction materials. (E&E News, Dec. 12)
The bill’s co-sponsor, Sen. Lindsey Graham (R-SC), spoke about the bill at Bessent’s hearing. “If you want to clean up the environment, a carbon fee seems to be a good way to do it, to punish China and India for bad carbon practices,” Graham said. (Politico, Jan. 16)
The Roundtable submitted comments today on the Foreign Pollution Fee Act. The letter raises concerns regarding the impact of a carbon tariff on affordable housing constriction, rebuilding after natural disasters, and technical issues on calculating “indirect emissions” associated with product manufacturing.
Other Energy News This Week
President Biden issues executive order to advance U.S. artificial intelligence (AI) infrastructure: President Biden issued an executive order directing agencies to lease federal land for “gigawatt-scale” to support new data center construction. (AP News, WH Press Release, Jan. 14)
179D energy efficiency tax deduction: The Energy Department (DOE) launched the 179D Portal, offering tools for new commercial construction and retrofits to estimate energy savings and qualify for potential federal tax incentives. (DOE Press Release, Jan. 14)
California wild fires raise electricity costs: The Los Angeles wildfires, which caused over $250 billion in damages and severely impacted the region’s electrical infrastructure, have driven a nearly 50% increase in California’s residential electricity rates since 2019, raising concerns about the fairness of passing these wildfire-related costs onto customers. (Politico, Jan. 15)
Maryland building emissions standards lawsuit: A coalition of trade organizations filed a federal lawsuit arguing that the Maryland Building Energy Performance Standards (BEPS) is illegal because it is “pre-empted” due to its conflict with federal laws. The Maryland law mandates large buildings to reduce greenhouse gas emissions by 20% within five years and achieve net-zero emissions by 2040. The lawsuit claims the rules exacerbate the housing crisis, strain the power grid, and violate consumer choice. (Baltimore Banner, Jan. 14 | (Baltimore Sun, Jan. 16)
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.
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