Tag: ENERGY STAR

Update: ENERGY STAR, Codes, Building Standards and More

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Federal and other officials continue to weigh a wide range of energy policies affecting commercial real estate. RER’s Sustainability Policy Advisory Committee (SPAC) is coordinating industry input to ensure these measures are practical, cost-effective, and grounded in real-world CRE development, operational, and financing decisions.

ENERGY STAR

  • Senate Appropriations Committee Chair Susan Collins (R-ME) also sent a July 2 letter to EPA Administrator Lee Zeldin requesting information about the transition, funding, and staffing for ENERGY STAR. (Letter, July 2)
  • A short-term continuing resolution to extend current funding is increasingly likely. Congress is not expected to complete FY 2027 appropriations legislation by Sept. 30, the end of the present fiscal year.
  • ENERGY STAR is a critical program for CRE. According to the program’s National Buildings Registry, over 7 billion square feet of U.S. commercial floor space have been ENERGY STAR certified.
  • Why It Matters: CRE relies heavily on Portfolio Manager, ENERGY STAR’s standard energy and water benchmarking tool, for investor reporting, capital expense (capex) planning, building certifications, and compliance with state and local requirements.

Building Codes and Performance Standards

Department of Energy building in Washington, DC
  • RER is preparing comments on DOE’s “cost methodology” to better reflect CRE “hold” periods and loan maturity horizons. Comments are due Aug. 3.

California Building Performance Standard (BPS)

  • The California Energy Commission (CEC) released its draft Building Energy Performance Strategy Report. This report lays the foundation for a future statewide building performance standard in California for large commercial and residential buildings.
  • RER, ICSC, and Nareit are coordinating with the California Business Properties Association (CBPA) to discuss priorities for the real estate industry’s response to California’s pre-regulatory study.
  • The CEC will hold a public workshop July 29 (1 pm – 3 pm ET). Written comments regarding the report are due August 21. (CEC’s filing instructions here.)
  • The CEC study refers to ASHRAE Standard 100 as a “starting point” for a potential statewide building performance standard in California.
  • RER has coordinated with ASHRAE to hold a briefing session (Tuesday, July 28, 2 pm – 3 pm ET) to inform our members on Standard 100’s building energy consumption and emissions targets. (Register here)

Solar Tax Credits

Workers on sustainable energy project on rooftop of building
  • Solar projects that “begin construction” between July 5 –Dec 31, 2026 must be “placed in service” by the end of 2027 to qualify for federal tax credits.
  • The court opinion found the IRS Notice 2025-42 issued last summer illegal. Under that notice, only “low output solar facilities” (1.5 MW or less) may establish the “beginning of construction” date for federal tax credit eligibility by spending at least 5% of total project costs.
  • Bottom line: Projects of 1.5 megawatts or less can rely on the 5% safe harbor under existing IRS guidance. The court ruling currently restores the safe harbor for larger projects as well, although uncertainty remains because Treasury could appeal or issue revised guidance. (RER’s Fact Sheet -Clean Energy Tax Incentives, Aug. 27, 2025)

Quick Hits

  • Data Centers: The North American Electric Reliability Corporation (NERC) is on track with its Large Load Action Plan to eventually register data centers and likely require them to ultimately report their electricity use and other grid impacts. (NERC Primer | 2026 “State of Grid Reliability” Full Report and Snapshot (June 24) | Roundtable Weekly (May 8)
  • California Climate Reporting Rule: The California Energy Commission (CEC) released its anticipated “draft strategy report” to lay the foundation for an eventual statewide BPS law. The deadline for companies’ first public emissions disclosures has been pushed back from this coming August to November 10.  (ESG Today (June 25) | KPMG alert (June 25) | JD Supra (July 3)
  • Permitting Reform: Senate negotiators continue working toward a bipartisan permitting reform package ahead of the August recess, with transmission policy remaining a key sticking point. Lawmakers are also divided over environmental and historic preservation reviews and limits on the administration’s authority to revoke previously approved energy project permits. (E&E News, July 13)

RER’s SPAC will continue engaging federal agencies, Congress, state regulators, and industry partners as these initiatives develop. SPAC is chaired by RER Board MemberTony Malkin (Chairman and CEO, Empire State Realty Trust). SPAC’s Vice Chair is Tamara Chernomordik (Vice President, Kimco Realty).

RER and Coalition Partners Call on Congress to Ensure Continued ENERGY STAR Funding

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As focus on Capitol Hill shifted to appropriations talks this week, The Real Estate Roundtable (RER) and a broad coalition of organizations representing the real estate, consumer products, manufacturing, and retail sectors sent a letter urging congressional leaders to ensure that the ENERGY STAR program remains amply funded in the 2027 fiscal year (FY’27), starting Oct. 1.

Coalition Advocacy

  • On Tuesday, the multi-industry coalition requested that House and Senate appropriators include explicit funding for ENERGY STAR in the FY’27 spending bill, in line with FY’26 funding levels. (Letter, April 14)
  • The letter also encouraged lawmakers to include strong congressional oversight measures in the legislation, as lead agency responsibilities for the program shift from the Environmental Protection Agency (EPA) to the Department of Energy (DOE). (Letter, April 14)
  • In the letter, the coalition recommended that legislators consolidate past funding for ENERGY STAR expressly given to the EPA, plus amounts used by DOE historically to run its portion of the program. (Letter, April 14)
  • 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, April 3)
  • Though President Trump’s FY’27 budget request, released this month, does not specifically mention ENERGY STAR—as was the case last year—the White House has proposed cutting DOE and EPA’s overall budgets by 11 percent and 52 percent, respectively. (Budget of the U.S. Government, April 3)

DOE Budget Hearings

  • This week, DOE Secretary Chris Wright appeared before the House Committee on Energy and Commerce (E&C) and a subcommittee of the House Committee on Appropriations to discuss the agency’s FY’27 budget request. 
  • Though most of Sec. Wright’s testimony did not focus on ENERGY STAR, Rep. Paul Tonko (D-NY) raised the topic during Thursday’s E&C hearing. (Watch Hearing)
  • Rep. Tonko noted the importance of ENERGY STAR and pointed out that ENERGY STAR has historically required approximately $35 million in annual funding. (Watch Hearing)
  • When asked if DOE would be seeking that funding as part of its budget request, and if he could provide assurance that DOE is already working to put the people and resources in place to transition and manage the program, Sec. Wright said he would follow up on the details. (Watch Hearing)
  • Still, Sec. Wright added that he is “all for” voluntary energy efficiency ratings on appliances as well as data and transparency. (Watch Hearing)
  • The bulk of the two hearings this week focused on a range of other topics, including rising energy prices, permitting reform, and nuclear power. (Politico E&E News, April 16)

Roundtable View

  • In March, RER and coalition partners sent a letter expressing support for DOE assuming its new role as lead federal agency for ENERGY STAR. (Roundtable Weekly, April 3)
  • Additionally, the March letter underscored that DOE is well-positioned to lead a modernized program that continues to provide consumers and businesses with access to efficient products and buildings that uphold the performance they have come to expect from the ENERGY STAR brand. (Roundtable Weekly, April 3)
  • RER and coalition partners have long made the business case for ENERGY STAR and emphasized its status as a federal program required by law—meaning that it cannot be privatized or operated outside the U.S. government by agency decree. (Roundtable Weekly, April 3 | Roundtable Weekly, March 6) 
  • As Tuesday’s coalition letter highlighted, “Since 1992, ENERGY STAR and its partners have helped American families and businesses save more than $500 billion in energy costs.” (Letter, April 14)
  • By driving cost savings through energy efficiency, the program contributes to reducing energy waste and freeing up capacity on the electricity grid, in alignment with President Trump’s goal to “unleash America’s energy dominance.” (RER Policy Priorities Document)

Next week, Sec. Wright is scheduled to appear before Senate appropriators to discuss DOE’s budget request. RER will continue to track developments related to ENERGY STAR funding and support the continuation of the program and its smooth transition to DOE.

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.

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

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(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

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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

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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

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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.

EPA’s Reorganization Plan Includes ENERGY STAR

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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

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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.