What's Happening?
The Energy Star program, a key tool for energy tracking in commercial and residential real estate, is reportedly set for discontinuation. This program, managed by the Environmental Protection Agency (EPA), includes the Energy Star Portfolio Manager, a software platform used by property owners to track energy usage across their portfolios. The tool connects utilities to landlords and is integral to state and municipal governments for enforcing energy and climate policies, which often include tax incentives and financial subsidies. The program was utilized by over 330,000 buildings last year, representing nearly 25% of all commercial building floorspace in the U.S. The EPA's recent announcement of significant job cuts and restructuring has led to reports that the termination of Energy Star is part of these changes.
Why It's Important?
The potential discontinuation of the Energy Star program could have significant implications for the real estate industry and environmental policy enforcement. Property owners rely on the Portfolio Manager for compliance with energy regulations and to benchmark building performance, which informs decisions on necessary upgrades like HVAC and lighting systems. The program's data is crucial for maintaining transparency and accountability in energy usage, supporting policies in seven states, 48 local governments, and two Canadian provinces. Without this tool, landlords may face challenges in adhering to energy standards, potentially affecting their eligibility for tax breaks and subsidies, and hindering efforts to improve energy efficiency across the sector.
What's Next?
If the Energy Star program is discontinued, stakeholders in the real estate industry may need to seek alternative methods for energy tracking and compliance. This could involve developing new software solutions or adapting existing systems to fill the gap left by Energy Star. State and local governments might also need to revise their energy policies and incentives to accommodate the absence of this program. The restructuring within the EPA could lead to further changes in environmental policy enforcement, prompting reactions from industry leaders and policymakers.
