Tag: ENERGY STAR

Multi-Industry Coalition Urges ENERGY STAR Support

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Today, The Real Estate Roundtable (RER) joined a broad coalition of manufacturing, consumer technology, retail, and real estate allies in a letter to Congress urging continued federal support for the overwhelmingly bipartisan ENERGY STAR program. (Letter, June 6)

Cross-Sector Advocacy Push

  • The coalition letter emphasized that ENERGY STAR has delivered hundreds of billions of dollars in energy savings since its inception—approximately $40 billion in annual savings alone for American consumers, families, and businesses. 
  • More than 30 leading organizations signed today’s letter including RER, many real estate partners, and manufacturing, consumer products, and retail groups. They include the Air-Conditioning, Heating and Refrigeration Institute (AHRI); American Chemistry Council (ACC); Consumer Technology Association (CTA); National Association of Manufacturers (NAM); National Retail Federation (NRF); National Electrical Manufacturers Association (NEMA); and the Retail Industry Leaders Association (RILA).
  • The multi-industry letter also highlights ENERGY STAR’s brand as a highly successful, non-regulatory, and bipartisan public-private partnership that promotes energy efficiency and consumer trust across industries that drive the U.S. economy.
  • The industry letter stated that ENERGY STAR is fundamental to an “all of the above” energy strategy, crucial for accommodating growing electricity demands from artificial intelligence, crypto assets, and advanced manufacturing. (Letter, June 6)

Real Estate Sector Support

  • The real estate industry previously sent letters to Congress, the Department of Energy (DOE), and the Environmental Protection Agency (EPA) explaining the importance of ENERGY STAR focusing on U.S. commercial and residential buildings. (Roundtable Weekly, May 23) (Letters: May 23, May 14, and April 4)

  • In response to indications that the Trump Administration might eliminate ENERGY STAR as federally managed, RER President and CEO Jeffrey DeBoer commented the 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,” DeBoer continued. “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.” (Roundtable Weekly, May 9)

Press Coverage

  • A recent op-ed in The Hill made the economic case for ENERGY STAR, arguing that its elimination would raise operational costs, disrupt performance standards, and weaken a public-private partnership that delivers measurable benefits to businesses, consumers, and the environment. (The Hill, May 31)
  • A former Republican EPA Administrator who helped create ENERGY STAR in the 1990s commented that the energy efficiency and waste avoidance goals of the program “should make a DOGE bro swoon.” (Washington Post, May 14). 

RER will continue to advocate with aligned groups in the real estate sector and across industry lines to preserve ENERGY STAR as a voluntary, federal public-private partnership.

ENERGY STAR and IRA Tax Credits Remain Front and Center

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Lawmakers put energy policy under a microscope this week, as Environmental Protection Agency (EPA) Administrator Lee Zeldin appeared before Congress regarding the agency’s FY2026 budget request and addressed concerns over the future of the ENERGY STAR program. Additionally, significant changes to the Inflation Reduction Act’s (IRA) energy tax credits were included in the One Big Beautiful Bill that passed in the House on Thursday morning.

Roundtable Advocacy

  • This week, The Real Estate Roundtable (RER) joined a coalition of real estate organizations in writing to key members of the House and Senate committees to urge continued funding for the ENERGY STAR program. (Letter)
  • As House appropriators begin drafting FY2026 spending bills, the letter urged committees to maintain funding for ENERGY STAR—highlighting the program’s bipartisan value and pro-business message. (PoliticoPro, May 21)
  • The letter emphasized ENERGY STAR’s value as a voluntary, market-based public-private partnership that helps building owners and managers benchmark building performance, reduce utility costs, and bolster grid reliability. (Roundtable Weekly, May 16)
  • The coalition letter built upon earlier communications RER and partner organizations sent to the EPA and Department of Energy (DOE) opposing a potential phaseout of the program’s foundational benchmarking platform, Portfolio Manager. (Letters: May 14 and April 4)

Hearings This Week

  • EPA Administrator Zeldin appeared before the House and Senate panels this week to defend the EPA’s FY2026 budget request. (E&E News, May 21)
  • Lawmakers voiced concerns about EPA plans to wind down or defund ENERGY STAR. (Rep. Paul Tonko (D-NY) Press Release, May 20)
  • Rep. Darren Soto (D-FL) questioned Zeldin directly about the administration’s plans. In response, Zeldin claimed that ENERGY STAR is not a statutory obligation. (E&E News, May 21). However, the real estate coalition’s letter to Congress this week, cites multiple examples of bipartisan legislation that authorizes ENERGY STAR as a federal program.
  • On Thursday, Senators Peter Welch (D-VT) and Jeanne Shaheen (D-NH) led 20 colleagues in a letter to EPA Administrator Lee Zeldin and Energy Secretary Christ Wright, urging the Trump administration to reverse its plan to eliminate the ENERGY STAR program—citing its bipartisan support, billions in consumer energy savings, and nearly 800,000 U.S. jobs it helps sustain. (Sen. Welch Press Release, May 21)

IRA Clean Energy Tax Credits

  • The One Big Beautiful Bill Act passed by the House Thursday would end IRA tax incentives for clean energy projects (like solar and storage) earlier than initially proposed. (Bloomberg, May 21)
  • Late-night modifications to the bill, accelerate the repeal of the clean energy production (45Y) and investment (48E) tech-neutral credits, limiting their eligibility to only projects that have started construction within 60 days of the bill’s enactment and which are put into service before January 1, 2029. (Utility Dive, May 22) 
  • The initial version of the bill proposed by House Republicans had a longer phase-out time, which would have allowed many of the IRA’s energy tax credits to remain until 2032. (Bloomberg, May 21)
  • The Senate may take a more measured approach. Several Senate Republicans have voiced support for maintaining IRA incentives that bolster U.S. manufacturing, enhance grid reliability, and support domestic clean energy production. (Roundtable Weekly, April 25; Semafor, May 22)

RER supports an “all of the above” energy efficiency, generation, and storage agenda and will continue to engage lawmakers and share member perspectives on effective energy policies that strengthen industry and economic growth.

Policymakers and Industry Advocates Focus on ENERGY STAR Support, Clean Energy Tax Credits

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As Republican lawmakers released a sweeping tax package this week and considered federal spending for the next fiscal year, The Real Estate Roundtable (RER) and industry allies continued to advocate for the ENERGY STAR program amid efforts to cut Inflation Reduction Act (IRA) clean energy credits.

Roundtable Advocacy

  • This week, RER along with eleven industry partners submitted a letter to U.S. Department of Energy (DOE) Secretary Wright reiterating the message of support for ENERGY STAR, and the benefits of the program driving down utility costs, bolstering grid reliability, and supporting U.S. economic competitiveness by helping building owners and managers benchmark performance and cut waste (Letter, May 14) (RW, May 9)
  • In April, RER and 17 industry organizations sent a letter to EPA Administrator Lee Zeldin expressing strong support for the program. (Roundtable Weekly, April 4)
  • In a Washington Post op-ed this week, former EPA Administrator William K. Reilly (1989-1993) described the program as “government at its best,” noting it was never intended as a climate policy tool but rather a cost-saving initiative embraced by businesses, developers, and consumers alike. (Washington Post, May 14)

Hearings This Week

  • EPA Administrator Lee Zeldin testified at Appropriation Committee House and Senate hearings this week regarding the president’s budget, but offered no clarity on ENERGY STAR’s future.
  • Lawmakers on both committees voiced concern over the scope of proposed EPA spending cuts.
  • The chair of the House’s Interior-EPA spending subcommittee Mike Simpson (R-ID) told Zeldin during the hearing, the administration’s proposed 55% EPA budget cut was unlikely to be accepted. (PoliticoPro, May 15)
  • In the Senate, Appropriations Subcommittee on Interior, Environment, and Related Agencies Chair Lisa Murkowski (R-AK) called the FY2026 EPA budget proposal “unserious” and “problematic.” (Sen. Murkowski Remarks, May 15)

IRA Clean Energy Tax Credits

  • The House Ways and Means Committee advanced its reconciliation bill that proposes sweeping changes to the IRA.

  • The bill terminates or phases out most of the clean energy tax credits that were expanded or created in the IRA.
  • Over past few weeks, several Senate and House Republicans have written to leadership expressing their support for maintaining energy incentives that benefit both traditional and renewable energy sectors, and urging a more selective approach to scaling back the IRA’s tax provisions. (RW, April 25)
  • Ways and Means vice chair Rep. Vern Buchanan (R-FL), a defender of IRA clean energy credits, said in an interview Wednesday he hopes Senate Republicans will make changes to the committee’s rollback of incentives. (Politico, May 14)

The Roundtable continues to engage lawmakers to ensure balanced, effective energy policies that support industry and economic growth.

Trump Administration Proposes Possible Elimination of ENERGY STAR Program

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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 organizations sent 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.

Roundtable Statement on the Reorganization of the ENERGY STAR Program

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Statement by Real Estate Roundtable President and CEO Jeffrey D. DeBoer

(WASHINGTON, D.C.) — In response to reports regarding the federal government’s budget and reorganization of the ENERGY STAR program, Jeffrey D. DeBoer, President and CEO of The Real Estate Roundtable, stated:

“The highly successful ENERGY STAR program is an integral, voluntary participation program critical to residential and commercial, private and public sector U.S. buildings. The program drives efficiency, helps create greater capacity on energy grids to boost economic growth, and enhances profitability for owners and investors in U.S. real estate.

“ENERGY STAR 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, businesses, and owners of schools, hospitals, government, and many other types of buildings to save money on their utility bills with no heavy-handed federal mandates. Owners and developers rely on ENERGY STAR to attract equity and debt 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.

“Only the federal government has the data, talent, lab research, and other expertise necessary to run all facets of ENERGY STAR efficiently and impartially,” DeBoer continued. “Over the course of 35 years, Congress has authorized ENERGY STAR through bipartisan legislation on multiple occasions. The Real Estate Roundtable looks forward to collaborating with the Trump Administration, Congress, the Environmental Protection Agency, 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.”

About The Real Estate Roundtable

The Real Estate Roundtable brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending, and management firms with leaders of major national real estate trade organizations to jointly address key national policy issues relating to real estate and its important role in the global economy.

The collective value of assets held by Roundtable members exceeds $4 trillion. The Roundtable’s membership represents more than 3 million people working in real estate; 12 billion square feet of office, retail, and industrial space; over 4 million apartments; and more than 5 million hotel rooms. It also includes the owners, managers, developers, and financiers of senior, student, and manufactured housing—as well as medical offices, life science campuses, data centers, cell towers, and self-storage properties.

The Roundtable’s policy news and more are available on The Roundtable website.

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Trump Executive Orders Push Energy Dominance Agenda

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

Grid Reliability Executive Order (EO)

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

State Overreach EO

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

Tariffs and Energy

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

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

Real Estate Coalition Urges Support for ENERGY STAR Program

Posted on by Trey Jackson

The Real Estate Roundtable (RER) and industry partners voiced strong support for Environmental Protection Agency’s (EPA) ENERGY STAR program in a letter to Administrator Lee Zeldin this week—urging continued support for the voluntary, market-driven platform that underpins building efficiency, grid reliability, and energy cost savings. (Letter)

Why It Matters

  • Commercial real estate relies more on ENERGY STAR than any other voluntary federal public-private partnership. It provides CRE’s standard tool to track and reduce building energy use—supporting lower utility bills, smart cap ex investments, and reduced regulatory red tape. (Letter)
  • “Real estate assets that do more with less energy – as quantified, monetized, and recognized though Portfolio Manager and other ENERGY STAR offerings – are critical to achieve EPA’s pillars to “power the great American comeback,” the letter stated.

Facts and Stats

  • More than 330,000 buildings—representing nearly 25% of U.S. commercial building floor space—utilized EPA’s Portfolio Manager software last year.
  • ENERGY STAR-certified buildings achieve an average of 35% less energy usage compared to similar non-certified buildings.
  • The program has saved businesses and families nearly $200 billion in utility bills since 1992, including $14 billion in 2024 alone.

Driving the Energy Comeback

The real estate industry letter how ENERGY STAR supports EPA goals to:

  • Restore Energy Dominance and Competitiveness: Helps reduce operating costs, ease grid strain, and boost building global competitiveness.
  • Support Cooperative Federalism: Serves as a unifying national platform across varied state and city energy rules.
  • Lead in AI Innovation: Electricity savings supported by ENERGY STAR, combined with American-made energy of all types, are requisite to meet the massive demands for power we need to lead the world in AI innovation.

Energy Hearings on Capitol Hill

  • Congressional committees held a series of energy-related hearings over the past two weeks, zeroing in on grid reliability, domestic supply, and the mounting electricity demands from artificial intelligence and data infrastructure.

RER remains committed to continued collaboration with EPA to advance the ENERGY STAR program as part of the administration’s ‘all of the above’ energy strategy, and goals to make the grid more resilient and reliable.

Global Trade Tensions Escalate, Real Estate Industry Sees Mixed Outcomes

Posted on by Trey Jackson

A major escalation in the White House’s trade agenda this week introduced new tariffs on imports from major global partners—while sparing Canada and Mexico in a move important for construction and development.

Recap

  • On Wednesday, President Trump announced a minimum 10 percent tariff on imports from most countries, set to take effect Saturday. In addition, individualized, “reciprocal” tariffs that apply to specific countries will take effect next Wednesday, including raising overall tariffs on China to 54 percent. (White House, April 2)

  • While Canada and Mexico did not receive any new tariffs, other key trading partners were affected. The European Union was hit with a new 20 percent tariff, along with Japan (24 percent) and South Korea (25 percent), spurring a statement from the European Commission President indicating that plans for countermeasures are in motion. (Reuters, April 3)
  • The tariff exceptions for Canada and Mexico are positive for the real estate industry. Canada supplies about 85% of all U.S. softwood lumber imports—nearly a quarter of the total domestic supply in the U.S. Further exempting Mexican products is also a win given major construction cost drivers such as gypsum, concrete and near-shored appliances. (NAHB, April 3)
  • National Association of Home Builders Chairman Buddy Hughes said, “While the complexity of these reciprocal tariffs makes it hard to estimate the overall impact on housing, they will undoubtedly raise some construction costs. However, NAHB is pleased President Trump recognized the importance of critical construction inputs for housing and chose to continue current exemptions for Canadian and Mexican products, with a specific exemption for lumber from any new tariffs at this time.” (NAHB, April 3)

  • In TV interviews after the announcement, Treasury Secretary Scott Bessent called for patience to not immediately retaliate and “asking to let’s see where this goes.” (Politico, April 3)

  • Markets and financial experts remain concerned about the ultimate endgame of the tariffs—whether they are meant to be permanent or represent negotiating leverage for the Trump administration to garner better deals with trading partners.
  • Speaking with reporters on Thursday, Trump seemed to indicate the latter, saying that “the rest of the world wants to see if they can make a deal.” (NBC News, April 3; Forbes, April 3)

Implications for CRE

  • Tariffs may present several challenges for commercial real estate, including increased construction costs, potential project delays, and heightened uncertainty among investors. (CBRE, March 19 | Roundtable Weekly, Feb. 14)
  • Higher tariffs on imported Chinese steel and aluminum will raise structural material costs, increasing expenses for developers and complicating efforts to address the housing shortage. (Roundtable Weekly, Jan. 24 | Nov. 27)
  • New tariffs also threaten to escalate energy costs by disrupting supply chains and raising prices for essential clean-tech components, underscoring the need to prioritize energy conservation strategies in commercial buildings. (E&E News, April 3 | NYT, April 3 | Forbes, March 20)
  • Embracing efficiency measures such as EPA’s ENERGY STAR program is now more important than ever—ensuring grid reliability, controlling operational costs, and unleashing American energy dominance amid growing economic pressures. [See ENERGY POLICY story below]

For now, deep uncertainties around trade and the administration’s tariff strategy leave long-term planning for investment and development in limbo. This latest round of tariffs is unlikely to be the last. RER will continue to track coverage on tariffs, and the implications for commercial real estate.

Roundtable Requests Voluntary U.S. Guidelines for Climate-Resilient Buildings to Fend Off EU-Based Rules

Posted on by Trey Jackson

This week, The Roundtable urged the Departments of Treasury, Energy, and the Environmental Protection Agency to develop voluntary, science-based guidelines to help U.S. real estate companies align their climate-related programs with global targets. (July 16 letter)

U.S.-Specific Climate Investment Principles

  • Treasury’s principles can guide net-zero corporate commitments in the United States.
  • However, foreign organizations aim to exert significant influence over capital decisions in America’s real estate – which can leave buildings “stranded” in the eyes of some overseas investors because they do not meet “energy requirements being rolled out in Europe.” Bloomberg (June 18)
  • These market risks prompted the Roundtable’s letter requesting voluntary building “decarbonization curves” designed by the U.S. government reflecting climatic, market, and data conditions in our country.
  • Investment principles for America’s real estate “should not be the creation of the European Union,” The Roundtable states.
  • “This is a matter of global economic competitiveness for capital access,” said the Chair of The Roundtable’s Sustainability Policy Advisory Committee, Anthony Malkin (Chairman and CEO, Empire State Realty Trust, Inc.). “America’s buildings should not be expected to meet standards that speak to assets, laws, power grids, and regulatory environments in Europe or elsewhere.”

U.S. Energy Programs and Recommendations

Tony Malkin (Chairman and CEO, Empire State Realty Trust, Inc.), chair of The Roundtable’s Sustainability Policy Advisory (SPAC) Committee.
Anthony Malkin (Chairman and CEO, Empire State Realty Trust, Inc.)
  • Malkin continued, “The United States leads the world in government developed, voluntary guidelines for all types of buildings’ energy use and emissions. Agencies like US-EPA and US-DOE know the conditions of our markets, climate zones, and power grids and can help make it easier for capital to come into real estate and grow jobs and tax revenue in the United States.”
  • The Roundtable urged the U.S. government to develop building “pathways” through a robust public input process that considers the experiences of companies that own, develop, manage and finance America’s real estate.

The Sustainability Policy Advisory Committee (SPAC) will continue to work with the agencies and Congress to shape policies that promote cost-effective investments to optimize building energy efficiency and help the real estate sector mitigate the effects of climate change.

Federal Initiatives on Buildings, Climate Gaining Momentum Ahead of 2024 Elections

Posted on by Trey Jackson
The White House

The Biden-Harris administration is accelerating actions at the intersection of climate and real estate policy in the lead-up to November’s elections to implement its signature clean energy legislation passed during its first years in office. RER’s Sustainability Policy Advisory Committee (SPAC) remains engaged with policymakers on a variety of initiatives coalescing in 2024 that include the following:

Climate-Related Financial Risk

  • The U.S. Securities and Exchange Commission (SEC) is expected to issue a final rule this spring for registered companies to disclose financial risks from climate change.(RER fact sheet and Roundtable Weekly, March 10, 2023).
  • Scope 3 “indirect” emissions from sources in a company’s supply chain are controversial elements of the anticipated SEC rule. RER’s 2022 comments urged the Commission to drop its “back door mandate” for Scope 3 disclosures. (Roundtable Weekly, June 10, 2022)
  • Litigation against the SEC’s imminent rule is widely expected. A recent lawsuit filed by industry groups against a California disclosure package passed last summer (modeled after the SEC’s proposal) signals similar claims that the federal government might face in court. (Wall Street Journal, Jan. 30 and RER fact sheet)

Voluntary Frameworks

EPA's NextGen Building Label
  • NextGen certification may serve as an “intermediate step” for buildings that strive for a voluntary Zero Emissions Building (“ZEB”) definition coming from the U.S. Energy Department. Recent comments from RER and Nareit maintain that the federal ZEB definition can lend consistency to the confusing state-local regulatory patchwork of building performance standards. (Roundtable Weekly, Feb 2.)
  • EPA is acting on requests to update Portfolio Manager, CRE’s standard tool to measure metrics for building efficiency and emissions. Portfolio Manager upgrades announced at last month’s SPAC meeting will help real estate companies strive for NextGen or ZEB status. (Coalition letter, Sept. 14, 2023)
  • This spring, the influential GHG Protocol—an international framework heavily relied upon by the SEC, EPA, DOE, and institutional investors—will undertake its first revisions since 2015 to its guidance for companies to account for emissions from electricity use. RER will participate in the upcoming Scope 2 guidance public comment process.

Tax Incentives

Ben Myers, left, and Tony Malkin, right -- SPAC leadership
Roundtable Sustainability Policy Advisory Committee Chair Tony Malkin, right, and
Vice Chair Ben Myers
  • The Internal Revenue Service (IRS) has issued dozens of proposed rules and notices to implement clean energy tax incentives available to real estate and other sectors since Congress passed the Inflation Reduction Act (IRA) in 2022. (RER fact sheet)
  • The IRS is expected to release final rules before November on topics such as the ability of REITs to transfer certain tax credits, proposed rules on non-urban census tracts eligible for EV charging station credits, and the 179D deduction for building retrofits.
  • RER has submitted comments on these and other topics in response to initial IRS notices and will continue to provide feedback as opportunities arise. (RER letters Oct. 30 and July 28, 2023;  Nov. 4 and Dec. 2, 2022)

The Roundtable’s SPAC—led by Chair Tony Malkin (Chairman, President, and CEO, Empire State Realty Trust) and Vice Chair Ben Myers (Senior Vice President of Sustainability, BXP)—will press forward with RER’s climate and energy priorities for the remainder of the current administration and into the next.

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