Author: Trey Jackson

Spending Bill Negotiations at Impasse as Deadline Looms; Senate Democrats Re-Elect Leadership Team

Posted on by Trey Jackson

Capitol at dusk

Congress reached an impasse on a government spending package this week, leaving lawmakers with limited options before Dec. 16 when the expiration of current funding would cause a partial shutdown. Policymakers may opt to pass a short-term Continuing Resolution (CR) to fund the government at current levels while they attempt to reach an agreement by year-end on a massive “omnibus” package—which could include tax, affordable housing, and other measures important to commercial real estate. (Roll Call, Dec. 8 and Roundtable Weekly, Dec. 2)

Funding Logjam

  • Policymakers are reportedly gridlocked over $26 billion in non-defense, domestic spending that would be part of an estimated $1.7 trillion overall funding bill. Both sides have agreed on $858 billion for defense spending. (PoliticoPro, Dec. 7 and CQ, Dec. 8)
  • With the clock ticking, Democrats may introduce their own omnibus proposal next week with measures designed to attract the 60 votes needed to pass the Senate, along with a full-year CR. (Punchbowl, Dec. 8)
  • If an agreement cannot be reached, Democrats may forego new legislation in favor of a one-year CR that would freeze government funding at current levels and allow certain tax policies to expire. Some House Republicans are urging their colleagues to take another course—wait until early next year when they assume majority control and can exert greater influence over funding negotiations with the Senate’s Democratic majority. (Washington Post, Dec. 8)

Other Policy News

Sen. Kyrsten Sinema (I-AZ)

  • Senate Democrats on Tuesday voted unanimously to re-elect their entire leadership team to another term for the 118th Congress, with Majority Leader Chuck Schumer (D-NY), above right, at the helm.
  • Today, Schumer stated that Sen. Kyrsten Sinema (D-AZ), above, will keep her committee assignments after she registered as an independent and published an op-ed in the Arizona Republic about why she is leaving the Democratic Party. (The Hill, Dec. 8 and Dec. 9 | Wall Street Journal, Dec. 9)
  • Sinema suggested her decision would not affect the power balance in the Senate because she will not caucus with Republicans and her voting behavior will not change. (Politico, Dec. 9)

Separately, the Treasury Department’s recently released, initial guidance on labor standards for companies to qualify for increased incentives in the Inflation Reduction Act (IRA) will be the focus of two Department of Labor webinars next week. Register for the Wednesday, December 14 or Thursday, December 15 webinars, both scheduled for 1pm EST. (Roundtable Weekly, Dec. 2)

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White House Announces Federal Building Performance Standards

Posted on by Trey Jackson
The White House

The White House on Wednesday released a new standard to reduce scope 1 “direct” emissions from fossil fuels combusted to heat and cool federal buildings. (CNBC |UPI | PoliticoPro, Dec. 7)

Federal Building Performance Standard (BPS)

  • The Federal BPS from the White House Council on Environmental Quality (CEQ) applies to the 300,000 existing buildings owned by the U.S. government. It sets a 2030 goal for each federal agency to eliminate scope 1 emissions in 30% of its facilities. (White House Fact Sheet)

  • The Federal BPS “prioritiz[es] energy efficiency and the elimination of on-site fossil fuel use.” It is a stepping-stone toward the Biden administration’s ultimate goal of “net zero” emissions by 2045 across all federal facilities. (Exec. Order 14057, Dec. 8, 2021)

  • The Federal BPS’s “performance pathway” would achieve the goal for zero scope 1 emissions “through efficient electrification of all equipment and appliances.”

  • The Federal BPS also offers a “prescriptive pathway” for specific replacement of gas-fired furnaces and boilers. This alternate compliance route recognizes that “full decarbonization may not be practicable today” considering a building’s size and climate zone—and is designed to account for the market availability and cost-effectiveness of electrification equipment.

Relevance to Other GHG Standards

Energy.gov map of BPS
  • While the Federal BPS intends to reduce on-site scope 1 emissions, it will likely increase scope 2 emissions from electricity purchased by the federal government to power electric heat pumps, hot water heaters, and similar equipment.

  • Furthermore, the Federal BPS—and its focus to reduce fossil fuels on-site—might set an easier standard compared to a number of emerging BPS mandates at the state and municipal level.

  • Some local BPS laws may effectively require buildings to reduce overall GHG emissions at their source, which depends on whether local power grids provide “clean” electricity from solar, wind, or other renewable energy. EPA data that profiles “fuel mixes” used to generate electricity, however, indicate that coal, gas and other non-renewables account for 80 percent of the fuels that power electric grids nationally.

  • Also, local BPS laws may not offer a “prescriptive” compliance path similar to the Federal BPS that contemplates cost effectiveness in building electrification retrofits.

  • Notably, the Federal BPS sets no requirements for U.S.-owned buildings to reduce their upstream and downstream “scope 3” emissions outside of an owners’ control. (EPA website)

  • Possible measurement and reporting of scope 3 emissions has been a controversial element of a private sector, corporate GHG disclosure rule proposed by the U.S. Securities and Exchange Commission that has not yet been finalized. (Roundtable Weekly, June 10)

Other Building Policies  

Department of Energy sign

The White House’s announcements touted DOE’s Better Climate Challenge—a voluntary “pledge” that includes Roundtable members as “partners” who have committed to reduce portfolio-wide scopes 1 and 2 emissions by at least 50% within 10 years. The Roundtable is an “ally” supporting DOE’s Challenge. (Roundtable Weekly, March 4)

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Roundtable Responds to EPA’s Inquiry Regarding  Indoor Air Quality

Posted on by Trey Jackson

EPA logoThe Real Estate Roundtable on Dec. 5 responded to a recent Environmental Protection Agency (EPA) Request for Information on Indoor Air Quality (IAQ) management, which posed questions about a possible new building “label” program. (Roundtable comments and EPA’s Federal Register Notice) 

Roundtable Comments 

  • A public-private partnership federal recognition program that commends leadership in IAQ design and management could be a key component of a return to healthy workplaces, The Roundtable stated in its comments.
  • The Roundtable urges policymakers and business leaders to push for the safe return of employees to their physical workspaces to benefit productivity and help reinvigorate small businesses in downtown neighborhoods—an essential contributor to urban communities and their tax bases. (Roundtable Weekly, Dec. 2)
  • Should EPA move forward to propose any criteria for a potential IAQ label, The Roundtable commented that the agency must: 
    • Identify clear statutory authority and adequate federal resources to ensure its long-term viability;
    • Conduct an initial pilot program for testing in actual buildings to reflect real-world experiences of commercial real estate practitioners (including private sector and federal building owners); and
    • Demonstrate support for best practices and procedures that sequentially (I) control emissions and off-gassing from indoor sources, (II) improve ventilation rates, and (III) enhance air filtration and cleaning. (EPA’s IAQ best practices webpage) 

The Roundtable’s Sustainability Policy Advisory Committee (SPAC) has a long, successful track record of collaboration with EPA and the Department of Energy in the development of numerous voluntary recognition programs, which are listed in the comments.

Healthy Return to Office 

Healthy Workplace Coalition logo

Return-to-the-office is a significant industry priority that will be discussed during The Roundtable’s all-member State of the Industry Meeting on January 24-25 in Washington, DC. 

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The Roundtable’s Jeffrey DeBoer Recognized as One of DC’s “Top Lobbyists” for 2022

Posted on by Trey Jackson

Real Estate Roundtable President Jeffrey DeBoer & 2022 Roundtable Annual ReportReal Estate Roundtable President and CEO Jeffrey DeBoer, above, is one of the “Top Lobbyists” in Washington, DC for 2022, according to the prominent policy news publication, The Hill. This is the fifth consecutive year that DeBoer has earned the recognition. (The Hill, Dec. 7)

  • The publication noted their list of individual lobbyists is comprised of those who “played a key role in shaping an avalanche of legislation in 2022, including Democrats’ Inflation Reduction Act and several bipartisan bills that brought sharply divided lawmakers together.”
  • The Hill also notes the list recognizes “advocates won hard-fought battles to secure some of this year’s most significant bipartisan measures” and “demonstrated a track record of success in the halls of Congress and the administration during a critical year for policy.” (pdf of The Hill’s 2022 Top Lobbyists)
  • The Roundtable’s DeBoer commented, “I am honored to be recognized for my advocacy successes on behalf of the commercial real estate industry. However, I’m smart enough to know that they are not individual successes but are actually successes resulting from the hard work of the entire Roundtable team … our membership and staff. It is particularly rewarding to be honored by The Hill knowing that, in leading the team, my approach is grounded by a positive, bipartisan foundation built around overall community betterment and advancement.”

DeBoer added, “We will continue to advocate long-term, sustainable public policy relating to taxation, access to housing and capital, job creation and energy efficient buildings that are safe and secure—and I hope that our efforts will continue to be positively recognized.”

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Washington Leaders Aim for December Funding Deal; Lawmakers Seek to Include Tax Measures

Posted on by Trey Jackson

Capitol with cirrus clouds

President Biden met with congressional leaders on Tuesday to discuss the legislative agenda for the remaining weeks of the lame duck session before the new Congress begins on Jan. 3 with a House Republican majority. 

Omnibus vs CR

  • The meeting between President Biden and Senate Majority Leader Charles Schumer (D-NY), Senate Minority Leader Mitch McConnell (R-KY), House Speaker Nancy Pelosi (D-CA) and House Minority Leader Kevin McCarthy (R-CA) also focused on lawmakers efforts to reach a potential deal on a massive “omnibus” spending bill before current government funding expires on Dec. 16. (Politico, Nov. 29)
  • There is a possibility that Congress could pass a one-week continuing resolution (CR) to extend current funding until Dec. 23 to buy more time to reach an agreement.

  • Sen. McConnell commented on the White House meeting that there is “… widespread agreement that we’d be better off with an omnibus than a CR, but there are some significant hurdles to get over to do that.” (The Hill, Nov. 29)
  • Attempts to attach a wide variety of other policy riders to an omnibus package—including tax extenders affecting commercial real estate—could become more difficult as the holiday break draws closer. (Wall Street Journal, Nov. 29 and Roundtable Weekly, Nov. 18)
  • House Ways and Means Chairman Richard Neal (D-MA) this week expressed optimism about negotiations on tax measures that may be included in an omnibus, including “extenders” of tax incentives that have expired or are set to lapse after 2022. (CQ, Nov. 30) 
  • House Speaker Pelosi said yesterday that if Congress fails to reach a year-end spending bill in the coming weeks, then a “last resort” would be a year-long CR. (Politico video and Politico Pro, Dec. 1) 

Real Estate-Related Tax Measures 

Gavel and books with city in background

  • A bipartisan group of 54 House lawmakers sent a letter this week to House leadership that requested the inclusion of two affordable housing provisions from a bipartisan bill (H.R. 2573) “in any year-end legislative vehicle.” (BGov, Nov. 28 and PoliticoPro, Nov. 29)
  • The Nov. 28 letter led by Reps. Suzan DelBene (D-WA) and Brad Wenstrup (D-OH) urged House Speaker Pelosi and Minority Leader McCarthy to expand and strengthen the Low Income Housing Tax Credit (LIHTC). 

  • The letter recommended extending a temporary increase in credit allocations enacted in 2018—and decreasing the amount of private activity bonds that are needed to access low-income housing credits (in the absence of specific credit allocation from a state housing authority). Studies suggest the latter proposal could increase affordable rental housing production by more than one million units over 10 years. (Novogradac 2020) 
  • Other important tax proposals vying for consideration include bipartisan, real estate-related bills. The first would modify REIT-related party rules to allow REITs to provide additional equity investment in struggling tenants. The second would modernize outdated tax rules that unfairly accelerate the income of condominium developers that pre-sell condo units during the construction process.

The Roundtable strongly supports these efforts and will discuss affordable housing and tax policy developments during our 2023 State of the Industry and Policy Advisory Committee meetings on Jan. 24-25 in Washington, DC.

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Increase in Office Vacancy Rates Threaten Municipalities’ Tax Base; Remote Work Seen as Contributing Factor

Posted on by Trey Jackson

Chicago cityscape sky view

The Roundtable’s Q4 Economic Sentiment Index released this month noted the influence of hybrid work arrangements on the office market. (News Release and Entire Q4 Report, Nov. 18) 

Roundtable View 

  • Roundtable President and CEO Jeffrey DeBoer commented, “We continue to urge policymakers and business leaders to push for the safe return of workers to their shared, physical workspace,” DeBoer said. (Connect CRE, Nov. 22 and CoStar, Nov. 21)
  • He added, “A back-to-the-workplace movement would increase overall economic productivity and competitiveness, help preserve urban small businesses, and lower the threat to the property tax base of municipalities throughout the nation.” (News Release and Entire Q4 Report, Nov. 18) 

National Vacancy Rates 

Vacant office space NYC view

  • Recent industry reports show hybrid work arrangements are contributing to increased office vacancy rates nationwide and threatening the health and well-being of American cities. 
  • A national report issued this month by CommercialEdge shows that large swaths of companies that have embraced remote and hybrid work since the onset of the pandemic have influenced the current decrease in demand for office space in most markets. (Commercial Observer, Nov. 21)
  • CommercialEdge reports U.S. vacancy rates rose over the previous 12 months in 86 of 120 markets, including 22 of the 25 leading office markets. (National Office Report webpage and pdf, Nov. 2022)
  • CommercialEdge Senior Manager Peter Kolaczynski stated in the report, “Work-from-home solidifying itself, plus broader economic uncertainty, are set to continue the stress on the office industry as we enter the new year.” 

Risks to Local Tax Revenue 

DC city view

  • In Washington, DC, office owners alerted city officials this week that a dramatic and persistent decline in commuter activity—exacerbated by remote work—has contributed to deteriorating market conditions. The landlords warned that DC may face a significant loss of tax revenue that could threaten the city’s fiscal health, and that other cities are experiencing similar conditions. (Commercial Observer, Nov. 29 and Bisnow, Nov. 28) 
  • Prominent DC office landlords sent a letter on Monday to the city’s chief financial officer about eroding local market conditions, including increased vacancy rates, lackluster leasing activity, equity flight, and a financing drought—especially for assets with high levels of vacancy. “The pandemic and work from home have further eroded fundamentals and all indicators of the health of the District’s office market point increased systemic risk and distress,” the letter states.
     
  • “For every decline of $100 million in commercial property tax assessments, annual property tax revenue falls by $2 million. It is vitally important for city officials to fully comprehend the difficult environment commercial office buildings are operating under and the risks to the future tax revenue,” the letter noted. 

Signatories to the Nov. 28 letter—including Carr Properties, JBG Smith, Boston Properties, Brookfield, Trammel Crow and Hines—offered to work with DC officials to discuss potential means of addressing “this enormous challenge.” 

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Treasury Issues Labor Guidance on Clean Energy Incentives; Roundtable Comments on EV Charging Station Credit

Posted on by Trey Jackson

The Treasury Department on Wednesday released initial guidance on labor standards for companies to qualify for increased incentives in the Inflation Reduction Act (IRA), passed by Congress in August. (Federal Register, Nov. 30 | CNBC, Nov. 29 | Roundtable Weekly, Aug. 12)

Wage, Apprenticeship Guidance

  • The IRA allows certain clean energy projects to qualify for “bonus” tax incentives (five-times “base” rates) if they meet prevailing wage and apprenticeship requirements.
  • This “bonus” rate structure applies to commercial installations of solar panels and other clean energy technologies (Section 48 credit), EV charging stations (Section 30C credit), and energy efficient building equipment (Section 179D deduction).
  • Treasury’s guidance directs taxpayers and their contractors to the federal government’s sam.gov website to search for geographically-appropriate wage determinations for construction jobs relevant to the IRA’s clean energy projects. If no labor classification for the planned work is available, a prevailing wage determination can be requested from IRAprevailingwage@dol.gov.
  • The guidance also explains that certain percentages of “labor hours” on a qualifying clean energy project must generally be performed by apprentices from registered programs. (Treasury FAQs on prevailing wage and apprenticeships, Nov. 29)
  • The guidance takes effect for qualifying projects that start construction on or after January 29, 2023.  See Treasury Notice and news release.
  • The Real Estate Roundtable addressed labor and other IRA issues in comments submitted Nov. 4 to Treasury and the Internal Revenue Service (IRS). [Roundtable Weekly, Nov. 4 and Oct. 7 | Roundtable IRA Fact Sheet, Sept. 20].

EV Charging Stations 

  • The Real Estate Roundtable submitted separate comments today to Treasury and IRS on the Section 30C tax credit for EV charging stations—or “Alternative Fuel Vehicle Refueling Property” as amended by the Inflation Reduction Act (IRA).
  • The Roundtable comments urge the IRS to issue guidance to clarify the components of EV charging property that qualify for the credit, the geographic areas that are 30C-eligible, and depreciation matters.
  • According to the Wall Street Journal, “Budget estimators expect around $1.7 billion in tax credits for chargers or other alternative-fuel equipment to be claimed over a 10-year period.” (WSJ, Nov. 29)

Treasury’s guidance on the IRA’s clean energy tax incentives and will be among the issues discussed during The Roundtable’s Jan. 24-25, 2023 State of the Industry and Policy Advisory Committee meetings in Washington, DC. 

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House Republicans Win Majority as Democrats Face Leadership Transition; Lame Duck Session May Include Tax Extenders

Posted on by Trey Jackson

Capitol reflective photo

Significant transition came to Washington this week as Republicans officially secured a slim majority in the House of Representatives for the 118th Congress that convenes on Jan. 3. The GOP will control House committees for the final two years of President Biden’s current term, ensuring a clash of policy approaches. (Associated Press, Nov. 17 and Wall Street Journal, Nov. 16)

New House Leadership

Nancy Pelosi steps down as Democratic House Leader

  • Confirmation of the new majority ushered in leadership votes in both chambers. House Speaker Nancy Pelosi (D-CA), above, and Majority Leader Steny Hoyer (D-MD) announced they will step aside while continuing to serve in Congress. (Pelosi’s House floor comments | C-Span video, Nov. 17 | The Hill, Nov. 17)
  • The announcements pave the way for a new generation of House Democratic leadership likely to be filled by Reps. Hakeem Jeffries (NY) as minority leader; Katherine Clark (MA) as House whip; and Pete Aguilar (CA) as caucus chair. (Politico, Reuters and Wall Street Journal, Nov. 18 | Business Insider, Nov. 17)
  • House Republicans voted this week to nominate House Minority Leader Kevin McCarthy (CA) for speaker. (Axios and NBC News, Nov. 15)
  • Other members of the House Republican leadership team include Representatives Steve Scalise (LA), Elyse Stefanik (NY), and Tom Emmer (MN).  (The Hill and Times Union, Nov. 15)
  • Several House races remain too close to call. (NY Times, Nov. 18)
  • In the Senate, Minority Leader Sen. Mitch McConnell (R-KY) defeated a challenge by Sen. Rick Scott (R-FL) for Republican Minority Leader. (Louisville Courier Journal and USA Today, Nov. 16)
  • Democrats retained their control of the upper chamber and Sen. Chuck Schumer (D-NY) will continue in his position as Senate Majority Leader. (BuzzFeed, Nov 16)

Lame Duck Session

Senate Finance Committee Chairman Ron Wyden (D-OR)

  • During the lame duck session, lawmakers will consider which policy riders to attach to must-pass spending legislation. Current government funding expires on Dec. 16.
  • Tax issues of importance to CRE that may be considered include rules related to business interest deductibility and an expired, temporary increase in allocations of low-income housing tax credits (LIHTCs) to states. Additionally, the 100% bonus depreciation benefit starts phasing down at the end of this year. (BGov, Nov. 16 and Roundtable Weekly, Nov. 11)
  • Senate Finance Chair Ron Wyden (D-OR), above, said this week that tax extenders are “obviously” a priority for the panel. “All of the negotiators are committed to getting this done before we wrap up,” Wyden commented. (PoliticoPro, Nov. 15)
  • Wyden added that he is also focused on energy and housing issues, including a new tax break to subsidize housing for average Americans. “There’s room to work on these issues in a bipartisan way as well,” Wyden noted. “Housing tax credits, for example, have long had bipartisan support.” (BGov, Nov. 14)

Rep. Kevin Brady of Texas, the top Republican on the tax-writing House Ways and Means Committee, last week said he is talking with Democrats about a potential lame duck deal on taxes. (PoliticoPro, Nov. 10)

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Rising Interest Rates, Tighter Liquidity, Hybrid Work, and Cost Cutting Reflected in Roundtable’s Q4 Sentiment Index

Posted on by Trey Jackson

Q4 Sentiment Index chart

The Real Estate Roundtable’s Q4 Economic Sentiment Index dropped to an overall score of 39, five points lower than the previous quarter. Commercial real estate executives cited a reduction in available equity and debt capital, changes in post-pandemic office use, general business cost cutting, and employee layoffs among the contributing factors causing market uncertainty and a decrease in transactions. (News Release and Entire Q4 Report, Nov. 18)

Roundtable ViewJeffrey DeBoer Real Estate Roundtable

  • Roundtable President and CEO Jeffrey DeBoer, above, said, “Industry executives report that asset valuation difficulties, coupled with the tightened availability and cost of capital, have caused a slowdown in commercial real estate investment and overall transactions. This situation, magnified by steep inflation and interest rate hikes, is leading to investor hesitancy. Additionally, while some businesses are instituting greater return-to-the-workplace policies, many are not, partially due to employee reluctance. Ultimately, greater clarity on businesses’ future post-pandemic workspace demands is needed to provide a more reliable window into asset valuations, particularly in the office sector.”
  • “As an industry, we’re working with tenants to provide attractive building safety and use amenities—and where possible, converting underutilized property types to other uses, including housing. We continue to urge policymakers and business leaders to push for the safe return of workers to their shared, physical workspace. A back-to-the-workplace movement would increase overall economic productivity and competitiveness, help preserve urban small businesses, and lower the threat to the property tax base of municipalities throughout the nation,” DeBoer added.
  • The Roundtable’s Economic Sentiment Index—a measure of senior executives’ confidence and expectations about the commercial real estate market environment—is scored on a scale of 1 to 100 by averaging the scores of Current and Future Economic Sentiment Indices. Any score over 50 is viewed as positive.
  • Although the Q4 Overall Index registered an Overall score of 39, the Current Index registered 29—a nine-point drop from Q3 2022—and the Future Index posted a score of 48 points, a dip of three points from the previous quarter. (Download Q4 report, Nov. 18)

Market Perspectives

RXR's Scott Rechler on CNBC's Squawk on the Street

  • The return of office workers to buildings in New York, Boston, Atlanta, San Francisco and other cities is languishing well below pre-pandemic levels as hybrid work, layoffs and higher interest rates act as drags on the office market, according to a Nov. 17 New York Times article. Despite the headwinds, office owners believe demand will eventually return.
  • Roundtable Chairman Emeritus (2015-2018) William Rudin (Co-Chairman & CEO, Rudin Management Company, Inc.) noted in the article that occupancy was much higher at buildings occupied by financial companies, many of which have required employees to return to the workplace.
  • The impact of layoffs, macroeconomic trends, and office demand were discussed this week by Roundtable Board Member Scott Rechler (Chairman CEO, RXR), above, in a CNBC Squawk on the Street interview. Rechler, a member of the New York Fed, said he expects the next 12 to 18 months will be “choppy” as the Federal Reserve continues to fight inflation, but that a strong economy will emerge with significant growth potential.

Economic conditions and commercial real estate markets will be discussed during The Roundtable’s Jan. 24-25 State of the Industry in Washington.

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White House Releases Net-Zero “Road Map” as EPA Credits Strides in Building Efficiency

Posted on by Trey Jackson

White House Climate Goals

The Biden administration this month released a “road map” to reach net zero emissions by 2050 by focusing on five key areas for research and development, including efficient buildings and grid decarbonization. (White House Fact Sheet)

Buildings Sector Emissions

  • One of the priorities in the administration’s net zero initiative is to accelerate innovation in “efficient building heating and cooling.” It notes that HVAC is responsible for nearly a fifth of commercial building energy use.
  • “Innovation is required to reduce upfront costs to enable widespread adoption” of retrofits that replace traditional HVAC systems with heat pumps, automated controls that interact with the grid, and the switch to refrigerants with low global warming potential, according to the R&D report.

ENERGY STAR Commercial Buildings

ENERGY STAR - 2 Decades

  • The Environmental Protection Agency (EPA) released a separate report this week marking two decades of ENERGY STAR Commercial Buildings. EPA concluded that the overall stock of U.S. office buildings has become 30 percent more energy efficient since the turn of the century. Top-of-class “certified” office buildings decreased energy use by 30 percent in the last decade alone.
  • EPA’s “Two Decades of ENERGY STAR” study also found that owners and managers cite “operations and maintenance” as the most important factor to optimize building energy performance—more than investments in original design and construction, or to retrofit older buildings with new equipment.

Net-Zero Tracker

MSCI Net-Zero Tracker

  • New data show corporate emissions cuts still lag far behind their pledges. A “Net-Zero Tracker“ by the investment research firm MSCI finds public companies’ emissions are out of step with global targets. (Axios, Oct. 18 and Nov. 3)
  • Additionally, an Accenture report shows that more than 90 percent of large companies that have made net zero emissions pledges will miss their goals at their current pace. (The Hill, Nov. 3)

Clean Energy Incentives

RER comments - image Nov4 2022

  • Various clean energy tax incentives in the Inflation Reduction Act (IRA) passed by Congress in August were the focus of extensive comments submitted by The Real Estate Roundtable to the Treasury Department and the Internal Revenue Service (IRS) earlier this month. [Nov. 4 letter and Roundtable Weekly, Aug. 12]
  • Stacking multiple incentives on the same buildings “must be encouraged for the real estate industry to strive towards net zero emissions,” The Roundtable stated in its comments.

The Roundtable’s Sustainability Policy Advisory Committee (SPAC) will discuss the IRA’s clean energy incentives during its Jan. 25, 2023 meeting, which will be held in conjunction with The Roundtable’s State of The Industry meeting.

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