Tag: ENERGY STAR

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.

NEWS: Real Estate Roundtable and Coalition Support ENERGY STAR Transition to the Department of Energy

Posted on by abigail_grenadier

(WASHINGTON, D.C.) — The Real Estate Roundtable (RER) joined organizations which represent the consumer products, manufacturing, real estate, and retail sectors in support of 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).

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.

“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.”

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.

“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.”

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.”

The letter noted ENERGY STAR has helped families and businesses save more than $500 billion in energy costs since 1992 and said the coalition stands ready to support a smooth, transparent, and comprehensive transition to DOE.

About The Real Estate Roundtable

The Real Estate Roundtable (RER) 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 RER members exceeds $4 trillion. RER’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. RER’s policy news and more are available on the RER website

DOE Assumes Lead Responsibilities for ENERGY STAR

Posted on by abigail_grenadier

A federal agency Memorandum of Agreement (MOA) signed this week provides that the U.S. Department of Energy (DOE) will assume lead responsibilities to implement the ENERGY STAR program as oversight of the effective, popular, and voluntary public-private partnership shifts from the U.S. Environmental Protection Agency (EPA). (E&E News, March 5)

ENERGY STAR Transition

  • DOE and EPA signed the MOA for an “orderly” transition of ENERGY STAR activities including oversight of partnership agreements, trademarks, and related IT systems and databases. (Memorandum, March 2)
  • The MOA explains that a 90-day plan will provide details regarding the agencies’ transition.
  • The MOA further explains that transition activities will be initially funded by each agency using their own funds appropriated by Congress. Federal law authorizes DOE and EPA to transfer funds “as the transition progresses.”
  • 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. This law maintains funding through Sept. 30 and preserves ENERGY STAR following prior Trump administration reports to privatize the program – or de-fund it altogether. (Roundtable Weekly, Jan. 9) 

Why It Matters

  • The Real Estate Roundtable’s (RER) advocacy, in collaboration with coalition partners in the real estate, manufacturing, and consumer products sectors, has long emphasized that ENERGY STAR is a federal program required by federal law. It cannot be privatized or run outside of the U.S. government by agency decree. (Roundtable Weekly, May 9, 2025)
  • For example, RER joined dozens of industry groups last year in a letter to Congress to “strongly support continuation of the non-regulatory and non-partisan ENERGY STAR program within the federal government.” (Roundtable Weekly, June 6). The multi-industry letter cites 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, as indicated by this week’s Memorandum of Agreement.

RER View

Tony Malkin (Chairman and CEO, Empire State Realty Trust, Inc.), chair of The Roundtable’s Sustainability Policy Advisory (SPAC) Committee.
Tony Malkin (Chairman and CEO, Empire State Realty Trust, Inc.)
  • RER has long urged the “business case” to support the ENERGY STAR program.
  • “We look forward to continuing our longstanding partnership with the federal government’s ENERGY STAR program 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 are ready to roll-up-our-sleeves to evolve ENERGY STAR to support a new generation of cutting-edge buildings, plants, and consumer products.”
  • “DOE has long been a key part of the ENERGY STAR ecosystem and is ideally suited to assume the role as the program’s primary steward,” said RER’s Sustainability Policy Advisory Committee (SPAC) Chair, Anthony E. Malkin (Chairman and CEO, Empire State Realty Trust, Inc.). “ENERGY STAR enhances profitability of buildings and establishes 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.”
  • Malkin continued, “Real estate’s coalition with the manufacturing sector will continue to impress upon Congress and the Trump administration the critical role ENERGY STAR plays to advance America’s energy dominance and global competitiveness.”

In the coming months, RER will partner with DOE, EPA, and aligned stakeholders to accomplish a seamless and productive transition of the ENERGY STAR program.

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

Posted on by abigail_grenadier

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

ENERGY STAR

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

Permitting Reform

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

Winter Storm & Electric Grid

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

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

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.

EPA’s Reorganization Plan Includes ENERGY STAR

Posted on by abigail_grenadier

The U.S. Environmental Protection Agency (EPA) released its long-awaited reorganization of various program offices on Monday. It lists ENERGY STAR–the voluntary federal public-private partnership promoting efficiency in buildings and appliances–as falling under the newly structured Office of Radiation and Indoor Air (“ORIA”). (EPA website | E&E News, Nov. 3)

Agency Restructuring

  • The new ORIA office, which includes ENERGY STAR, is part of EPA’s ongoing “comprehensive restructuring efforts” and staff reduction plans announced this summer. (EPA press release, July 18)
  • For example, EPA reorganized its research office in October–carrying through on Administrator Lee Zeldin’s May testimony to Congress. (E&E News, Oct. 20)
  • EPA’s new structure acts on a Feb. 26 memo of the White House Office of Management and Budget (“OMB”) directing all agencies to implement plans to reorganize, streamline, and reduce federal staff. The OMB memo itself stems from the DOGE Executive Order signed by President Donald Trump on Jan. 20.

Industry Advocacy

  • In May, Zeldin stated to Congress that EPA was considering whether it might be appropriate to privatize ENERGY STAR. This followed a proposed White House budget to eliminate a now-defunct EPA office that previously housed ENERGY STAR. (Roundtable Weekly, May 9)
  • RER and leading real estate organizations responded with letters to EPA (April 4) and the Department of Energy (May 14), highlighting ENERGY STAR’s importance for U.S. buildings and explaining why ENERGY STAR should remain a federal program. (Roundtable Weekly, May 23)
  • A multi-industry coalition followed suit. Trade associations representing real estate, product manufacturers, consumer technology, and retailers took the issue to Congress. Their June 6 letter emphasizes that ENERGY STAR is a statutorily required federal program that cannot be privatized. (Roundtable Weekly, June 6)
  • These efforts resulted in ENERGY STAR funding approved by House and Senate Appropriations Committees. Both chambers have clearly signaled that ample funds for EPA’s buildings and appliance partnership program are available once the government reopens. (Roundtable Weekly July 25; Sept. 5)

ENERGY STAR Continues During Shutdown

  • While EPA’s funding bill for FY ’26 (that started Oct. 1) has yet to pass the full Congress and reach President Trump’s desk, ENERGY STAR has continued to function amid the ongoing shutdown. For example:
  • The open-access federal contracting database shows that the consultant contract to support ENERGY STAR for commercial buildings is paid through at least July 13, 2026.
  • While ENERGY STAR finds a place in EPA’s new indoor air office–with Congress prepared to fund it, and the program continuing during the shutdown–EPA’s overall reorganization continues. An agency spokesperson reportedly stated, “No final decision has been made at this time” regarding ENERGY STAR’s long-term status. (New York Times, Nov. 1)

RER and our industry partners will continue to track these events closely. The coalition will advocate for EPA to operate the bipartisan, highly successful ENERGY STAR program robustly and efficiently once the government reopens.

Government Shutdown Stalemate Deepens, Raising CRE Concerns

Posted on by abigail_grenadier

The federal government remains shut down for a second week as partisan gridlock over spending and health care continues in Washington. (Punchbowl News Oct. 15, 17 | Roll Call Oct. 14)

State of Play

  • Republicans and Democrats remain deadlocked, with no signs of progress toward reopening the government. The Senate on Thursday failed for the 10th time to advance a short-term funding bill passed by the House since the shutdown began Oct. 1. (NPR, Oct. 16)
  • In a 51–44 vote, senators again rejected a GOP-led continuing resolution (CR) that would have funded the government through Nov. 21. (CNBC, Oct. 15)
  • Democrats continue to insist that any funding measure must include an extension of enhanced Affordable Care Act (ACA) subsidies that are set to expire at the end of the year.
  • GOP leaders also remain at a standstill until the government reopens—Speaker Mike Johnson (R-LA) refusing to recall the House without a funding deal, and Senate Majority Leader John Thune (R-SD) said discussions on health care tax credits can begin only after the shutdown ends. (NPR, Oct. 9 | PoliticoPro, Oct. 6)
  • The Trump administration’s plan to lay off more than 10,000 federal employees during the shutdown has been temporarily blocked after a judge ruled the firings likely exceeded executive authority. (Roll Call, Oct. 15 | Bloomberg, Oct. 16)

Path Forward

  • As the shutdown enters its third week, lawmakers are weighing several potential exit paths, including a short-term CR, a handful of Democrats could defect to advance the GOP bill, a Trump–Schumer compromise, or a bipartisan “dual-vote” plan led by Sen. Jeanne Shaheen (D-NH) to reopen the government and extend ACA subsidies for one year. (Punchbowl News, Oct. 16 | Bloomberg, Oct. 14)
  • The White House appears prepared for a prolonged shutdown, redirecting funds to sustain key programs and betting that public pressure will eventually force Democrats to adjust strategy. (Punchbowl News, Oct. 16)
  • Lawmakers on both sides warn the economic fallout will deepen if the impasse stretches into November, threatening programs vital to housing, infrastructure, and financial markets.

CRE Impact

  • Economy: Each week the government remains shut down is projected to cost the U.S. economy roughly $7 billion, according to EY-Parthenon Chief Economist Gregory Daco. (BisNow, Oct. 12)
  • GDP: U.S. gross domestic product could fall by 15 to 20 basis points for each week the shutdown persists, according to Marcus & Millichap, which noted that the immediate impact on CRE remains limited for now. (Marcus & Millichap)
  • Housing: The U.S. Department of Housing and Urban Development (HUD) reportedly has confirmed federal funding for rental voucher assistance is available through the end of 2025, consistent with HUD’s contingency plan for certain programs to continue operations during the shutdown. (NAHRO, Oct. 16 | Roundtable Weekly, July 25)
  • Energy: EPA’s Portfolio Manager building energy benchmarking tool remains up and running. However, the agency’s website explains that ENERGY STAR resources “will not be updated regularly” during the lapse in appropriations and “many services may not be available.”
  • NFIP: The lapse of the National Flood Insurance Program (NFIP) continues to delay property closings and financing in flood-prone regions. While existing claims can still be paid, new policies and renewals cannot be issued, complicating sales and dampening confidence in affected markets. (Roundtable Weekly, Oct. 10)
  • Sen. John Kennedy (R-LA) is urging GOP leaders to hold a stand-alone vote to reopen the NFIP. Speaker Johnson and Majority Leader Steve Scalise (R-LA) have resisted, saying the program will be reauthorized once the government reopens. (PoliticoPro, Oct. 16)
  • RER supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)

RER continues to urge Congress to act responsibly to reopen the government and restore critical housing, insurance, and economic programs essential to real estate investment and growth.

Update: What CRE Needs to Know About Energy Policy

Posted on by abigail_grenadier

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.

Senate Advances FY’26 Spending Bills Preserving Key Transportation, Housing and EPA Programs

Posted on by abigail_grenadier

The Senate Appropriations Committee on Thursday advanced bills to fund rental assistance, transit-oriented development loans, ENERGY STAR, and other key programs important to real estate, for the federal fiscal year that starts Oct. 1. The measures come as congressional leaders rush to complete appropriations work ahead of the Sept. 30 funding deadline to avoid a government shutdown.

HUD Programs        

  • The full Senate Appropriations committee passed the “T-HUD” bill to fund the Departments of Transportation and Housing and Urban Development, on a strong bipartisan vote (27-1). (Senate Press Release, July 24) (PoliticoPro, July 24)
  • The bill allocates $73.3 billion overall to HUD—maintaining or increasing funding for rental assistance, homelessness services, and economic development. (Bill Summary | Text )
  • Project-based rental assistance would receive $17.8 billion, a roughly $900 million increase above FY25 enacted levels. This funding provides a full renewal of housing contracts serving about 1.2 million households.
  • Tenant-based rental assistance would receive $33.9 billion to renew Section 8 vouchers. (THUD bill report, p. 115) The Senate’s funding levels contrast with the Trump Administration’s May 2 proposal to significantly cut both tenant- and project-based assistance.
  • The Community Development Block Grant (CDBG) program would receive $3.1 billion, with $1.2 billion allocated for the HOME Investment Partnership program.
  • Last week, the House Appropriations Committee passed its version of T-HUD funding (Bill Text | Summary). The full House of Representatives has yet to vote on it. (Roundtable Weekly, July 18)

DOT Programs

  • The U.S. Department of Transportation (DOT) would receive $26.5 billion under the Senate T-HUD bill. (Senate press release, July 24).
  • This includes a modest increase (over current FY levels) for the Build America Bureau (BAB), which oversees the TIFIA/RRIF federal loan programs. These programs can provide favorable, long-term, low-interest federal loans for transit-oriented developments, including housing and property conversions near mass transit. (FAQs)
  • The funding bill’s underlying report (p. 22) explains that DOT and HUD shall establish a “task force” to improve the TIFIA/RRIF loan process, with a report due back to the House and Senate on ideas for removing “administrative and statutory barriers” to access financing.

EPA – ENERGY STAR

  • The Senate’s bill text specifies $36 million next fiscal year, for the popular ENERGY STAR program, recognizing leadership in energy-efficient buildings, homes, and products.
  • The underlying report language for the Senate bill states that the Appropriations Committee “recognizes the value of and continues to support ENERGY STAR” – with a directive for EPA to “report back” on its plans for the program’s future implementation.
  • On the House side on Tuesday, the Appropriations Committee likewise showed support for ENERGY STAR. It passed a “manager’s amendment” on voice vote, instructing EPA to fund ENERGY STAR in FY’26. (PoliticoPro, July 22)
  • RER has long urged the “business case” to support the ENERGY STAR program. It is working with 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).  

Agency Reorganizations

  • It is not yet clear how any FY’26 funds appropriated by Congress may interact with particular internal plans from federal agencies to reorganize and eliminate programs.
  • An 8-1 decision in July by the U.S. Supreme Court allows the Trump administration to move forward with large-scale staff reductions and structural overhauls across 19 federal departments. (Politico, July 8)
  • As part of government-wide efforts triggered by the DOGE Executive Order, restructuring plans and layoffs are under consideration at the EPA. (Politico, July 17)

What’s Next

  • Senate Majority Leader John Thune (R-SD) has indicated that he wants to sign as many spending bills into law as possible, then use a short-term stopgap measure to cover the remaining agencies and avert a shutdown before the Sept. 30 deadline. (PoliticoPro, July 23)
  • Any specific agency reorganization and staff layoff plans may be released in the coming weeks.

RER will continue to monitor all developments on matters of appropriations and federal agency reorganizations relevant to real estate.

Appropriations Season Underway on Capitol Hill; Agency Reorganization Plans Expected

Posted on by abigail_grenadier

With the One Big Beautiful Bill Act (OBBBA) now enacted, attention in Washington has turned to appropriations for fiscal year 2026. Programs important to real estate—like HUD’s rental assistance program, and EPA’s ENERGY STAR program—are navigating the annual federal spending process, as Congress must pass legislation by September 30 to avoid a government shutdown.  (Roll Call, July 18)

HUD Programs

  • The House Appropriations Committee passed a bill on Tuesday to fund HUD in FY’26. (Bill text | Summary). The measure will next proceed to the full House of Representatives for a vote. (Press Release, July 17)
  • Under the bill, HUD would get about $67.8 billion in discretionary funds, a $939 million decrease compared to FY 2025.
  • Section 8 project-based rental assistance would receive a $237 million increase over FY 2025 levels, totaling $17.127 billion. According to the committee, the funding would support full renewal of contracts for roughly 1.2 million households.
  • Despite the funding gains for rental assistance, the bill includes a 26% cut to HUD staffing—raising concerns about the agency’s capacity to manage and deliver programs efficiently. (PoliticoPro, July 9)

EPA Programs

  • A separate House appropriations subcommittee also passed a bill on Tuesday to fund EPA for FY’26. (Bill text | Summary). The bill proposes no specific cuts to ENERGY STAR. The program receives strong support from RER in partnership with a broad coalition of national real estate, manufacturing, retail, and technology industry groups. (Roundtable Weekly, June 6).
  • The measure proposes $2.27 billion for EPA’s environmental programs in FY’26, representing a 29% cut compared to current fiscal year funding. (Summary)

Supreme Court Ruling Upholds Agency Reorganizations

  • Ultimate FY’26 spending levels will be impacted by agencies’ internal plans to reorganize and eliminate programs. An 8-1 decision by the U.S. Supreme Court last week allows the Trump administration to move forward with large-scale staff reductions and structural overhauls across 19 federal departments. (Reuters, July 9)
  • The high Court’s ruling states that any specific reorganization effort could be deemed illegal, while confirming the President’s general authority to direct agencies to develop “RIF and Reorganization Plans” by September 30 in accord with a “DOGE” Executive Order and White House memo both issued in February.
  • Moving forward with EPA’s planned restructuring, Administrator Lee Zeldin on Thursday announced further reorganization by consolidating finance and administrative offices, changing enforcement and Superfund offices, and continued workforce reductions through early retirements and layoffs. (PoliticoPro, July 17)
  • Reports thus far of Zeldin’s plans do not identify any planned cuts to ENERGY STAR or the larger division in which it is housed at the agency.
  • Advocacy by RER and coalition partners to the administration and Congress explains that ENERGY STAR’s continued success as a non-regulatory, public-private partnership depends on sufficient staff and budget resources to implement the program.

What’s Next

  • Rescissions: Congress may consider further efforts to rescind unspent prior-year funding, similar to the bill passed this week and now heading to the President’s desk clawing-back $9 billion in previous funds for foreign aid and public media. (POLITICO, July 18). 
  • More Tax Legislation?: According to the House speaker’s top tax aide, Congress may pursue a bipartisan tax package, additional retirement policy changes, and a follow-up reconciliation bill informally dubbed “2 Big 2 Beautiful.” (Tax Notes, July 17)
  • Section 899: Republican tax leaders Rep. Jason Smith (R-MO) and Sen. Mike Crapo (R-ID) have signaled they may reintroduce the Section 899 retaliatory tax if negotiations to exempt U.S. companies from OECD Pillar 2 taxes fail, potentially in a second reconciliation bill (Tax Notes, July 17). However, Germany’s Finance Minister Lars Klingbeil reaffirmed his country’s commitment to implementing Pillar 2 of the global minimum tax, despite widespread uncertainty following recent U.S. tariff announcements and the G7 carveout exempting American companies. (PoliticoPro, July 18)
  • FY’26 Appropriations: Senate Majority Leader John Thune has not yet decided whether to bring a government funding bill to the floor next week but aims to pass at least one funding package before the Senate’s August recess. (PoliticoPro, July 17) If congress does not pass FY’26 spending legislation by September 30, it could default to a stop gap “continuing resolution” and extend FY’25 levels to keep the government running.
  • Agency Restructurings: Reorganizations plans prompted by DOGE efforts will continue to be unveiled before and after Labor Day.

RER will continue to monitor all developments on matters of tax, appropriations, and federal agency reorganizations relevant to real estate.