Tag: Energy Policy

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

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Workers on sustainable energy project on rooftop of building

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

Building Codes and Affordability

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

Why It Matters

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

RER’s Recommendations

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

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

Affordability, Ratepayer Protections Drive Data Center Policies on Capitol Hill

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

State of Play

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

Data Center Legislation

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

AI and the Regulatory Process

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

Permitting Push

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

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

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

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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

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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

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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.

Record-Level Investments Aim to Enhance Grid Reliability

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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.

Government Shutdown: What It Means for CRE

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The federal government shut down on Wednesday—the first lapse since 2019—with no deal in sight. Both chambers are at an impasse after dueling stopgap funding bills failed again this week. (AP News, Oct. 2)

State of Play

  • Senate Democrats blocked Republicans’ “clean” Nov. 21 continuing resolution (CR). Republicans rejected Democrats’ version that included extending enhanced Affordable Care Act subsidies and reversing Medicaid cuts.
  • Senate Majority Leader John Thune (R-SD) and Minority Leader Chuck Schumer (D-NY) may meet Friday in their first one-on-one since the standoff began. Another round of votes is planned for Friday. (Punchbowl News, Oct. 2)
  • If Democrats block the GOP plan again, Majority Leader Thune is expected to adjourn the Senate until Monday, canceling Saturday votes, and force another vote on Monday. (Punchbowl News, Oct. 2)

CRE Impact

  • NFIP: The National Flood Insurance Program (NFIP) cannot issue new policies or renewals during the shutdown, threatening thousands of real estate transactions. The Real Estate Roundtable (RER) supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)
  • Senate Banking Committee Chair Tim Scott (R-SC) “remains committed” to funding the program and is “optimistic” Democrats will join Republicans to prevent a lapse in coverage during peak hurricane season, his spokesperson said. (Politico, Sept. 30)
  • Energy: The ENERGY STAR program has halted partner application processing, product list updates, and specification releases—stalling efficiency certifications important to building owners and tenants. Meanwhile, it remains unclear how the shutdown will affect EPA Administrator Lee Zeldin’s broader reorganization and regulatory timeline. (PoliticoPro, Sept. 30, Oct. 1 | NAHB, Oct. 1)
  • Housing: HUD is unable to access certain funds used to prevent evictions in its Tenant-Based Rental Assistance Program. Affordable housing initiatives also face delays due to the furloughing of program staff. (Politico, Sept. 30)
  • Construction: Fallout from the shutdown is also reverberating through the construction sector, where contractors warn that halting federal projects will ripple into private markets by raising costs and eroding confidence. (UtilityDive, Oct. 1)
  • Tax Policy & Treasury: Despite the shutdown, Treasury has said it will continue implementing President Trump’s tax law and deregulatory agenda, relying on multi-year funding streams. Its tax policy office will remain active, advancing the president’s tax cuts and regulatory rollbacks. Other Treasury operations—including debt management, collections, and oversight of financial markets will also continue. (PoliticoPro, Sept. 29)
  • “Government shutdowns and temporary extensions of essential programs like the NFIP create avoidable uncertainty that disrupts real estate markets and undermines economic confidence,” said RER President & CEO Jeffrey DeBoer. “Congress should act responsibly by providing long-term solutions that protect communities and the American people, encourage investment, and sustain growth.”

As the shutdown continues, mounting strain on real estate transactions, insurance coverage, and investment planning will intensify pressure on Congress to resolve the impasse.

Roundtable Releases 2025 Annual Report

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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:

  • Intro — featuring Q&A with Kathleen McCarthy and Jeffrey DeBoer

Printed copies of the Annual Report are currently being mailed to members. If you would like additional copies, please email agrenadier@rer.org

Update: What CRE Needs to Know About Energy Policy

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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.

Energy Tax Incentives

  • 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”

Workers on sustainable energy project on rooftop of building
  • 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.

California Guidance on Climate Reporting

  • 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.