Tag: Energy Policy

Data Centers, Permitting Reform Await Action Post-Midterms

Posted on by Julian Anderson

With affordability of energy prices top of mind for voters heading into the midterms, the Senate failed this week to advance legislation addressing data center growth and broader permitting reform. Both measures could see action during the post-election lame-duck session or the next session of Congress that starts in January, while House Democrats have outlined energy priorities they could pursue if they win the majority in November.

Regulations Versus Voluntary Agreements 

  • The Ratepayer Protection Act (H.R. 9340) stalled in the Senate on Sept. 30, even though it passed the House earlier this month by a wide bipartisan margin (417-3). (Roll Call, Sept. 30) The legislation would pressure state utility regulators to consider, but not compel adoption of, federal standards ensuring 100-MW data centers pay the full cost of grid upgrades needed to serve them. (House Energy Committee Press Release, Sept. 16)
  • Senate Majority Leader John Thune (R-SD) called the bill a “common sense” measure to codify portions of President Trump’s voluntary “Ratepayer Protection Pledge” with utilities and hyperscalers operating global data center networks. (Roll Call, Sept. 30)
  • Senate Minority Leader Charles Schumer (D-NY), meanwhile, criticized the bill as “toothless,” lacking “real guardrails on AI and data centers,” and called for legislation “to make it mandatory for data centers to cover their own costs.” (The Hill, Sept. 29)
  • Also this week, the White House issued an executive order and fact sheet (Sept. 29) “Inaugurating the Era of Super Intelligence.” Amid calls for regulations, frontier companies agreed to a voluntary pact to maintain internal controls, report safety and security incidents, and conduct third-party audits as they develop advanced AI models and agentic systems at the cutting edge of technology. (New York Times, Sept. 29)    

Permitting Reform

  • The package would streamline permitting for energy and infrastructure projects, including transmission, while requiring data centers to pay their associated transmission costs. The Senate is not expected to vote until after the midterm elections, leaving the measure for possible lame-duck action. (Bill Summary, Sept. 30 | Senate EPW Committee, Sept. 30)
  • RER supports permitting reform to improve energy affordability and meet growing electricity demand. Its letter backing the bipartisan SPEED Act (H.R. 4776) urged certainty for approved projects and warned that redundant federal reviews delay affordable, reliable power to homes and commercial buildings. (Letter, Dec. 8, 2025 | Roundtable Weekly, Dec. 12, 2025)

House Democrats’ Energy Blueprint

  • On Sept. 15, House Democrats led by Rep. Kathy Castor (D-FL) released the Thriving Economy Project (TEP), a menu of more than 800 recommendations that could shape the energy agenda if Democrats win the House in November. Democratic leadership has not formally endorsed the proposals. (TEP Report, Sept. 15 | Politico via SEEC, Sept. 16)
  • Building-related recommendations include energy benchmarking for commercial and residential buildings and disclosure of energy costs in sales and leases, as well as high-performance building standards tied to federal housing, infrastructure, disaster recovery, and mortgage programs. (TEP Report, Sept. 15)
  • Data center proposals include energy and water disclosure requirements, siting and efficiency standards, responsibility for associated grid infrastructure costs, and new DOE efficiency metrics, such as an ENERGY STAR-equivalent program for AI tools. (TEP Report, Sept. 15)

RER will continue tracking these developments and advocating for policies that support affordable and reliable electricity and timely energy infrastructure investment.

RER Recommends Clear, Workable Standards for Data Centers and Grid Reliability

Posted on by abigail_grenadier

The Real Estate Roundtable (RER) submitted comments on Thursday to the North American Electric Reliability Corporation (NERC) supporting efforts to address the grid impacts of large computational loads, while urging the organization for clear, workable standards to reflect how data centers are actually owned, leased and operated. (Letter, Sept. 17)

State of Play

  • NERC’s Project 2026-02 would establish new definitions, registration criteria and mandatory reliability standards for certain data centers called, “large computational loads,” connected to the U.S. electric grid.
  • The proposal would require Computational Load Owners (CLOs) and Computational Load Operators (CLOPs) to register with NERC when a site has at least 50 megawatts of total connected load and meets a separate 100-kilovolt connection criterion.
  • The proposed standards address data-center interconnections, grid-impact studies and modeling, operational communications, information sharing, and monitoring of how facilities respond to grid disturbances.

RER Recommendations

  • RER’s comments call for clear responsibilities based on which entity owns or controls the property, equipment, operations, and information covered by each requirement. (Letter, Sept. 17)
  • Distinguish owners from operators. At many leased and colocation facilities, the entity that owns the land and buildings is separate from the tenant that controls the servers, computing equipment, and associated electricity load. NERC’s definitions should account for these distinct roles and assign compliance responsibilities accordingly.
  • Clearly define covered sites. RER recommended that NERC limit the definition of a “Computational Load Site” to properties primarily used by information technology infrastructure to process, store, transmit or manipulate digital information—including cloud services, artificial intelligence and cryptocurrency mining.
  • Clarify the 50-MW threshold. “Total Connected Load” should include computational load as well as electricity used for HVAC, lighting, elevators, security, fire-safety equipment, and other building systems. NERC should also provide examples showing how the threshold applies across different leasing arrangements.
  • Define a “single location.” Objective criteria are needed to determine when electricity use from separate buildings or leased spaces must be combined for registration purposes, particularly at multi-building data-center campuses.
  • Identify the voltage measurement point. RER asked NERC to clarify where the proposal’s 100-kV threshold should be measured, using a point reasonably attributable to the site’s electricity use rather than a remote point farther upstream on the grid.
  • Require two-way information sharing. NERC should establish reciprocal obligations for owners and operators to confidentially and timely exchange the data each needs to comply with the proposed standards.

Why It Matters

  • Data centers often operate under complex ownership and leasing arrangements. A building owner may be responsible for the property and its connection to the grid while having limited control over the tenant-owned equipment and operating decisions that drive computational demand.
  • RER raised concerns about assigning a compliance obligation to one entity when another party controls the information, equipment or operational capability needed to satisfy it.
  • Clear definitions and appropriately assigned responsibilities can support grid reliability while giving data-center owners, operators and tenants a workable framework for compliance.

Data Center Policy Developments

  • The House passed the bipartisan Ratepayer Protection Act (H.R. 9340) on Wednesday by a vote of 417–3, marking Congress’ first major legislative action addressing the potential energy costs associated with the rapid expansion of AI and data centers.
  • The bill would require states to consider standards preventing data centers and other large power users from shifting infrastructure costs onto existing customers. (Utility Dive, Sept. 17)
  • On Thursday, Sen. Martin Heinrich (D-NM) blocked Sen. Jon Husted’s (R-OH) effort to pass companion legislation by unanimous consent, preventing immediate Senate passage. (The Hill, Sept. 17)

House Democrats Release Energy Policy Framework

  • House Democrats and the Sustainable Energy and Environment Coalition (SEEC) Institute released the Thriving Economy Project, a collection of more than 800 energy, environmental and economic policy proposals that may be considered in the next session of Congress. (Report, Sept. 15)
  • The recommendations include an ENERGY STAR-equivalent program for AI tools, data-center energy and water reporting, energy benchmarking for commercial and residential buildings, and disclosure of energy costs in sales and leases. (Roll Call, Sept. 15)
  • Other proposals include high-performance building standards tied to federal housing and infrastructure programs, along with stronger federal siting, design, and efficiency standards for data centers.
  • Data center recommendations also include mandatory NERC reliability standards, requirements to cover the infrastructure costs their electricity demand creates, and waste heat reuse to support heating and cooling nearby buildings.

What’s Next

RER will continue working with NERC and other stakeholders to support reliability standards that protect the electric grid, provide clear regulatory accountability, and reflect the operational realities of data-center ownership and leasing.

Data Centers, Grid Reliability and Building Standards Draw Increased Attention Ahead of Midterms

Posted on by abigail_grenadier

Energy issues are front and center in Washington, D.C., and the states in the weeks leading up to the midterm elections. Rising electricity costs, rapid data center development, and evolving AI technologies are fueling debates over grid reliability, infrastructure investment, tax policy, and job impacts.

State of Play

  • The House is expected to vote next week on the bipartisan Ratepayer Protection Act, which would require technology companies to cover energy infrastructure costs associated with their data centers rather than pass them on to consumers. (Axios | Politico, Sept. 10)
  • The North American Electric Reliability Corporation (NERC) is developing reliability standards for large “computational loads,” including data centers and cryptocurrency facilities. (NERC Project 2026-02)
  • The proposed standards address data-center interconnections, grid-impact studies and modeling, information sharing and records of disturbances such as sudden load losses or voltage drops. (Roundtable Weekly, July 17 | 24 | Aug. 7)

Why It Matters

  • As federal policies evolve, regulators must distinguish between data-center ownership and operations. Requirements should track which parties control facility operations, possess relevant data, and are responsible for managing grid impacts due to intensive “computational loads” from activities like cloud computing, AI modeling, and crypto mining.
  • NERC’s imminent data center owner and operator rules should also respect leasing arrangements at these facilities. Hyperscalers and other AI tenants in leased spaces should have affirmative obligations to share relevant data, such as their electricity usage and water consumption, with facility owners that may have reporting obligations.

Data Center Tax Proposals

  • Senate Finance Committee Ranking Member Ron Wyden (D-OR) recently released a framework that restricts Opportunity Zone (OZ) investments and bonus depreciation for new data centers, changes the treatment of certain data-center rents under the REIT rules, and establishes a federal excise tax on operators’ gross receipts. (Senate Finance Committee, Aug. 6 | Roundtable Weekly, Aug. 7 | GlobeSt. Sept. 8)
  • A recent Bipartisan Policy Center analysis outlined significant questions surrounding proposals to tax AI, including which activities should be taxed, who would ultimately bear the cost, and whether new taxes could discourage investment or innovation. (Bipartisan Policy Center, Aug. 24)
  • A separate Cato Institute analysis warned that an excise tax based on revenue rather than profits could impose especially high effective tax rates on lower-margin data-center operators and discourage new development. (Cato Institute, Sept. 3)
  • RER Advocacy: RER’s Tax Policy Advisory Committee is preparing comments on the Wyden framework. Maintaining the owner-operator distinction is critical to preventing provisions aimed at hyperscalers from penalizing real estate owners that do not control facility operations.

Data Centers & CRE By the Numbers

  • A new National Association of Realtors report found that 50% of surveyed agents with a data center in their market reported higher nearby commercial property values, while 42% cited increased demand for commercial space. Industrial properties saw the strongest gains in interest at 58%. (CoStar | Housing Wire, Sept. 9)
  • Recent reports from JLL and CBRE found that North American data-center demand reached record levels in the first half of 2026, doubling from the previous year and increasing fivefold from the same period in 2024. (BisNow, Sept. 3)

California Building Performance Standards (BPS)

  • On Aug. 18, RER submitted comments to the California Energy Commission on its strategy for developing future statewide building performance standards. (RER Letter, Aug. 18)
  • RER also coordinated with the California Business Properties Association and California Building Industry Association to align its recommendations with a broader coalition letter joined by AHLA, BOMA International, CREDA, ICSC and Nareit. (Coalition Letter, Aug. 18)

What’s Next

RER will continue working with policymakers and industry partners to advance reliable and affordable energy supplies, efficient buildings, and clear rules that recognize the distinct responsibilities of data-center owners and operators.

Senate Proposal Would Impose Tax Penalties on Data Centers

Posted on by abigail_grenadier

Senate Finance Committee Ranking Member Ron Wyden (D-OR) on Thursday unveiled a white paper that proposes the elimination of several federal incentives for new data center investment and a new excise tax on data center operations. (Senate Finance Committee Press Release| Politico, Aug. 6)

Data Center Tax Proposal

  • Sen. Wyden’s proposal would prohibit Opportunity Zone funds from investing in new data centers, subject capital assets used to build and supply data centers to longer cost recovery periods than assets used for other purposes, and effectively deny investors’ ability to participate in new data center investment through REITs. (White Paper, Aug. 6)
  • The proposal would also impose a gross receipts excise tax on U.S. data center operators. (White Paper, Aug. 6)
  • The white paper cites the current construction boom as evidence that the changes are justified, while stating the proposal “will not end data center development or put at risk the U.S. maintaining its status as the global leader in AI and other innovative technologies.” (PoliticoPro, Aug. 7)
  • While Sen. Wyden’s statement describes the tax provisions as removing “existing investment incentives,” in actuality the changes would create discriminatory tax penalties that expressly exclude data centers from general, long-standing rules that apply broadly to other forms of capital investment.
  • U.S. data center construction has quadrupled over the past four years, according to the white paper, which also cites roughly $700 billion in projected spending this year. Revenue from the proposed tax changes would be directed toward workers and communities affected by AI-driven economic disruption (White Paper | NOTUS, Aug. 6)
  • Sen. Wyden is seeking comments on the framework through Aug. 31 and expects to release legislative discussion draft language this fall. (AI Weekly, Aug. 7)

Why It Matters

  • Data center development is increasingly connected to a broader infrastructure ecosystem. A recent Academy Securities report identifies the federal Enhanced Use Lease (EUL) program as an emerging catalyst for digital infrastructure and domestic supply chains, noting that the Army, Air Force, and Department of Energy have increasingly used the program to facilitate data center development on underutilized government land. (July 29)
  • The model also leverages private capital for infrastructure development. The private-sector lessees under EUL arrangements bear the costs of financing, designing, building, operating, and securing facilities—illustrating the role private investment can play in meeting growing infrastructure needs.
  • With energy demand surging, real estate is an important partner in supporting energy investment, increasing efficiency, and delivering energy savings across the economy.
  • Meanwhile, in mid-August, the North American Electric Reliability Corp. (NERC) is expected to issue federal registration requirements and grid reliability standards for owners and operators of data centers. NERC’s imminent proposed standards could result in the first federal-level regulations on data centers. (Roundtable Weekly, July 17 | 24)

Permitting Reform

  • Bipartisan Senate permitting negotiations will continue beyond the August recess, with Sens. Shelley Moore Capito (R-WV), Sheldon Whitehouse (D-RI), Mike Lee (R-UT), and Martin Heinrich (D-NM) now targeting September for a potential agreement. Negotiators report progress, though significant issues remain over transmission, renewable energy projects, and historic preservation reviews. (E&E News, Aug. 5)

The House and Senate are scheduled to return to Washington on Sept. 14, leaving a narrow legislative window to advance permitting reform and other priorities before the midterm elections.

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

Posted on by abigail_grenadier
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.

Affordability, Ratepayer Protections Drive Data Center Policies on Capitol Hill

Posted on by abigail_grenadier

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.

CRE Leaders Gather in Washington to Discuss Housing, Tax Policy, National Security, Energy, and More

Posted on by abigail_grenadier

The Real Estate Roundtable’s (RER) Spring Roundtable Meeting brought commercial real estate leaders to Washington this week for bipartisan discussions on national security, housing, tax policy, energy, and economic growth. The meeting (Roundtable-level members only) came as Congress continued to debate housing legislation, implementation of the One Big Beautiful Bill Act, and broader questions of U.S. competitiveness and leadership. (RER’s Spring 2026 Policy Priorities and Executive Summary)

Across the agenda, speakers echoed similar concerns and priorities, including strengthening the workforce pipeline, expanding career and technical education, permitting reform, reducing regulatory burdens, and ensuring reliable energy infrastructure to support AI, data centers, and long-term economic growth.

Roundtable Leadership

  • RER Board Chair Kathleen McCarthy Baldwin (Former Global Co-Head of Blackstone Real Estate) opened the meeting by highlighting the value of convening industry leaders in Washington and recognizing the strong leadership across the organization, including the nominating committee’s work and the incoming board members’ efforts to position RER for the year ahead.
  • RER President and CEO Jeffrey DeBoer said that RER’s impact in Washington is built on active member involvement, strong committee engagement, and continued support for REALPAC. “Our voice is strongest when members are engaged, our committees are active, and we continue to invest in the advocacy efforts that help advance the industry’s priorities.”

Speakers & Policy Issues

  • Roundtable members engaged in policy discussions with the following guests:
  • (R-L): Rep. Joe Neguse (D-CO) (House Assistant Democratic Leader; Committees: Natural Resources, Rules, and Judiciary), Rep. Ritchie Torres (D-NY) (Committees: Financial Services; Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party), and Rep. George Whitesides (D-CA) (Committees: Science, Space and Technology; Armed Services) joined Monday evening’s dinner conversation on the political landscape, affordability, housing, immigration, and the policy choices shaping the run-up to the midterms. The panel also explored housing supply strategies, bipartisan problem-solving, and what voters are looking for from both parties on economic opportunity and cost-of-living concerns.
  • Sen. Bill Hagerty (R-TN) (Committees: Appropriations; Banking, Housing and Urban Affairs; and Foreign Relations) discussed national security, trade, China, workforce development, and the policy environment needed to strengthen American competitiveness. He also addressed housing supply and his recently introduced Freedom to Build Act, which is intended to incentivize deregulation, expand housing supply, and make homes more affordable by aligning existing federal incentives with communities that reduce barriers to building. (Roundtable Weekly, April 17)
  • Rep. Mike Flood (R-NE) (House Financial Services Committee) weighed in on the housing bills and the path toward bridging House and Senate priorities, with particular focus on concerns that Section 901 of the Senate-passed 21st Century ROAD to Housing Act could reduce housing supply and create new market uncertainty. He also addressed TRIA reauthorization, mortgage market stability, access to credit, and the need for practical housing solutions that expand supply.
  • David Malpass (former President of the World Bank and former Under Secretary for International Affairs at the U.S. Department of the Treasury) offered his perspective on global economic ambiguity, energy policy, domestic production, labor shortages, and U.S. leadership. He also spoke about permitting reform, workforce development, interest rates, and the policy changes needed to support stronger long-term growth.
  • (L-R): Josh Parker (Chairman & CEO, Ancora Group Capital; Chair, RER’s Tax Policy Advisory Committee), Tony Chereso (President & CEO, The Inland Real Estate Group, LLC), and Ryan McCormick (Senior Vice President & Counsel, RER) led a tax policy panel on Treasury implementation of the One Big Beautiful Bill Act, Section 892 regulations, Opportunity Zones implementation, FIRPTA, foreign capital, and other issues affecting real estate investment and capital formation.

Next on RER’s meeting calendar is the all-member Annual Meeting on June 9-10, 2026, in Washington, D.C., which will include policy advisory committee sessions.

Roundtable and Coalition Support ENERGY STAR Transition to the Department of Energy

Posted on by abigail_grenadier

The Real Estate Roundtable (RER) joined a broad coalition of organizations representing the consumer products, manufacturing, real estate, and retail sectors this week to support the Department of Energy’s (DOE) new role as lead federal agency for ENERGY STAR, following the recent Memorandum of Agreement with the Environmental Protection Agency (EPA). (RER News Release, March 31 | Memorandum of Agreement, March 3)

ENERGY STAR Coalition Letter

  • In a coalition letter sent this week to DOE, the groups said they look forward to collaborating with the agency to ensure an effective transition that maintains and evolves the voluntary ENERGY STAR public-private partnership. (Letter, March 30 | PoliticoPro, March 31)
  • The coalition emphasized that DOE is well-positioned to lead a modernized ENERGY STAR program that continues to provide consumers and businesses with access to efficient products and buildings with the performance they have come to expect from the ENERGY STAR brand.
  • The letter also reaffirmed strong support for keeping ENERGY STAR within the federal government. (Letter, March 30)
  • “Our longstanding partnership with the federal government’s ENERGY STAR program remains a top priority as DOE assumes the lead implementation role,” said RER’s President & CEO Jeffrey D. DeBoer. “DOE has the data, talent, lab research, and other resources to run all facets of ENERGY STAR efficiently and effectively. Down the years, ENERGY STAR for buildings has saved families and businesses hundreds of billions of dollars in energy costs, and helps create greater capacity on the grid to boost economic growth. We will continue to partner in the evolution of ENERGY STAR to support the economic growth in our buildings, plants, and consumer products.” (RER News Release, March 31)
  • Congress provided approximately $33 million for ENERGY STAR to EPA in the FY’26 appropriations bill (H.R. 6938), signed into law on Jan. 23, preserving the program through Sept. 30 following earlier reports that it could be privatized or defunded. (Roundtable Weekly, Jan. 9 | Utility Dive, March 10) 
  • Additionally, the letter noted that the program has helped save families and businesses more than $500 billion in energy costs since 1992. (Letter, March 30)

Roundtable View

Tony Malkin (Chairman and CEO, Empire State Realty Trust, Inc.), chair of The Roundtable’s Sustainability Policy Advisory (SPAC) Committee.
RER’s Sustainability Policy Advisory Committee (SPAC) Chair Anthony E. Malkin (Chairman and CEO, Empire State Realty Trust, Inc.)
  • RER has long made the business case for ENERGY STAR and, with coalition partners, emphasized that it is a federal program required by law—not one that can be privatized or operated outside the U.S. government by agency decree. (Roundtable Weekly, Mar. 6)
  • Last year, RER joined dozens of industry groups in a letter to Congress to support the ENERGY STAR. The multi-industry letter cited federal statutes that compel ENERGY STAR to be a program run by federal agencies, with DOE and EPA authorized to assign program responsibilities between themselves. (Roundtable Weekly, Jun. 6, 2025). 
  • “DOE has always been a key part of the ENERGY STAR ecosystem and is ideally suited to assume the role as the program’s primary steward and ensure its vitality and progress forward,” said RER’s Sustainability Policy Advisory Committee (SPAC) Chair Anthony E. Malkin (Chairman and CEO, Empire State Realty Trust, Inc.).
  • “ENERGY STAR has long enhanced the profitability of buildings and established a voluntary reporting structure for real estate assets. It helps our industry attract investors from all over the world to the United States. ENERGY STAR works better than any other building energy ‘label’ on the market because it is grounded in quantifiable metrics and deploys standard software geared to save money on utility bills and avoid wasted energy,” added Malkin.
  • Malkin continued, “Our industry coalition with leading organizations in the real estate, manufacturing, consumer tech, and retail sectors will continue to advocate to Congress and the Executive branch the critical role ENERGY STAR plays to advance America’s energy dominance and global competitiveness.”

RER will continue working with policymakers and aligned stakeholders to help ensure a smooth and productive transition for ENERGY STAR.

Congressional Spending Package Preserves ENERGY STAR Funding

Posted on by abigail_grenadier

A bipartisan, three-bill “minibus” appropriations package advanced by the House on Thursday preserves funding for ENERGY STAR, ensuring continued support through the end of the federal fiscal year for the voluntary public-private partnership focused on energy efficiency in buildings and appliances. (PoliticoPro, Jan. 8)

State of Play

  • The House passed the minibus on a bipartisan 397–28 vote. The package now heads to the Senate, which is expected to take up the measure as early as next week. (The Hill, Jan. 8)
  • The bill funds the Departments of Energy, Commerce, Interior, and Justice, along with water programs, the Environmental Protection Agency (EPA), and certain federal science initiatives through Sept. 30, the end of the current fiscal year.
  • The package reflects weeks of bicameral negotiations following last month’s deal on overall spending levels.
  • House Appropriations Chair Tom Cole (R- OK) defended the bills as the product of “bipartisan, bicameral consensus” and a member-driven process. (Politico, Jan. 9)
  • The final agreement largely rejected dramatic reductions sought by the White House last spring, opting instead for more targeted spending adjustments to energy and environmental programs. (PoliticoPro, Jan. 8)

Why It Matters

  • 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.
  • The outcome builds on bipartisan actions last summer, when both House and Senate appropriators separately advanced bills supporting FY’26 ENERGY STAR funding. (Roundtable Weekly, July 25)
  • RER has long urged the “business case” to support the ENERGY STAR program. It 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).  

What’s Next

  • The minibus is expected to clear Congress before the current stopgap continuing resolution expires on Jan. 31.
  • Appropriators are preparing additional spending packages later this month, though several major funding bills—including Defense, Labor-HHS-Education, and Homeland Security have yet to be finalized.

These developments, alongside issues related to AI-driven power demand, grid reliability, and permitting reform, will be featured at RER’s upcoming Sustainability Policy Advisory Committee (SPAC) meeting on Jan. 21 in Washington, D.C.

Roundtable Urges Congress to Pass Bipartisan SPEED Act to Advance Energy Permitting Reform and Support Grid Demand

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The Real Estate Roundtable (RER) wrote to congressional leadership this week, urging passage of the bipartisan SPEED Act (H.R.4776), calling the bill essential to strengthening grid reliability, lowering energy costs, and keeping pace with surging electricity demand. (Letter, Dec. 8)

Roundtable Advocacy

  • The House is expected to vote next week on the SPEED Act, the centerpiece of a broader GOP push to overhaul NEPA reviews and ease longstanding permitting bottlenecks.  (Letter, Dec. 8)
  • In the letter, RER emphasized that the bill is critical to improving energy affordability, meeting surging electricity demand, and ensuring the grid can support U.S. families, job creators, and long-term economic competitiveness. The current patchwork of federal reviews delays the delivery of affordable, reliable power to homes and commercial buildings.
  • RER noted the U.S. needs “as much electricity as possible, from as many sources as possible, delivered as quickly and cheaply as possible” to lead in artificial intelligence, re-shore manufacturing, and maintain global competitiveness.
  • Duane Desiderio, RER Senior Vice President & Counsel, stated, “Reliable, affordable power is essential to the buildings that support our communities and economy. Modernizing permitting is critical to improving energy affordability, strengthening the grid, and reducing costly project delays. RER supports policies like the SPEED Act to build the infrastructure our country needs for long-term economic growth.”
  • Excessive and redundant reviews under NEPA delay energy and housing projects, drive up costs, and stall critical grid upgrades. The bill would reduce duplicative reviews and frivolous lawsuits, harmonize categorical exclusions, and provide certainty for approved projects.
  • Edison Electric Institute (EEI) and a coalition of energy and utility groups also urged Congress to advance the comprehensive permitting reform bill to accelerate infrastructure deployment and strengthen U.S. energy dominance. (Roundtable Weekly, Dec. 5)

State of Play

  • House and Senate leaders were active this week, advancing and negotiating several permitting reform measures as momentum builds around the SPEED Act. (Axios, Dec. 11)
  • This week, Majority Whip Tom Emmer (R-MN) convened industry leaders to discuss how streamlined permitting can support affordability, data center buildout, and rising power demand, as House leaders move a series of related bills forward.
  • On Thursday, the House passed three GOP-led permitting bills to bolster grid reliability and accelerate energy project reviews, underscoring bipartisan interest in reducing regulatory delays amid rising power demand and affordability pressures. (PoliticoPro, Dec. 11)
  • Natural Resources Chair Bruce Westerman (R-AR) is aiming for a strong bipartisan vote to build momentum for Senate action. (UtilityDive, Dec. 10)
  • Senators Mike Lee (R-UT) and Martin Heinrich (D-NM) expressed optimism about ongoing bipartisan Senate negotiations with Environment and Public Works Chair Shelley Moore Capito (R-WV) and Ranking Member Sheldon Whitehouse (D-RI), noting that any deal should make it easier to permit transmission and other major energy infrastructure. (PoliticoPro. Dec. 10)
  • The Trump administration has expressed support for congressional action on permitting reform, but has not taken a position on the SPEED ACT. (PoliticoPro, Dec. 8)

Permitting reform will be a featured topic at RER’s next all-member State of the Industry Meeting on Jan. 21–22, 2026, in Washington, D.C., as policymakers consider strategies to bolster energy infrastructure and support long-term economic growth.