Tag: Energy Policy

Policymakers Considering Energy and Climate Provisions as Part of Infrastructure Package

Posted on by Trey Jackson

Congressional Committee leaders are gearing up energy and climate proposals as the Biden Administration assembles its plan for an infrastructure initiative to bolster the recovery of the pandemic-damaged economy.

What’s at Stake: 

  • The White House is considering including clean energy tax credits in a coronavirus recovery proposal, White House national climate adviser Gina McCarthy said. “You can bet tax credits are a large part of that discussion.” (BGov, March 11.)
  • The scale and scope of energy and climate measures may make it difficult to attract Republican votes in the wake of the nearly $2 trillion pandemic aid package last week that received no GOP support.  
  • Top Democratic tax writers may differ on their approach to clean energy tax incentives that aim to achieve low-and zero-carbon energy targets. (CQ, March 15)
    • Senate Finance Committee Chairman Ron Wyden’s (D-OR) is seeking to consolidate existing tax incentives.  In 2019, he proposed replacing 44 energy-related tax provisions with three credits: one for clean electricity, one for clean fuels, and one to promote greater energy efficiency. 
       
    • House Ways and Means Committee Chairman Richard Neal (D-MA) is a leading cosponsor of House Democrats’ GREEN Act, which would expand and enhance existing tax benefits for clean energy and energy efficiency.  
         
  • The Roundtable is currently working with Democratic and Republican Members of the Ways and Means Committee to update and reintroduce a bipartisan proposal, the E-QUIP Act, to encourage energy efficient retrofits of existing commercial and residential rental buildings. (Roundtable Weekly, Dec. 11, 2020).
     
  • A House Energy and Commerce (E&C) hearing on March 18 focused on the Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act (H.R. 1512).  The CLEAN Act includes provisions affecting building energy codes, energy benchmarking, and Securities and Exchange Commission (SEC) public company reporting on climate risk. The bill is not expected to advance far in the Senate. (Roundtable Weekly, March 5).

Regulation and Federal Funding:

  • A Climate Change Disclosures Request for Information issued by the Securities and Exchange Commission (SEC) on March 15 addresses a broad range of issues and legal considerations relevant to possible mandatory SEC requirements. The RFI has a 90-day comment window. 
  • Acting SEC Chair Allison Lee addressed the RFI this week, stating the agency will commence a number of new initiatives to address “… the risks and opportunities that climate and ESG [Environmental, Social, and Corporate Governance] pose for investors, our financial system, and our economy.”
     
  • A March 17 letter led by Sen. Jeanne Shaheen (D-NH) urges President Biden to include robust federal funding for programs that promote energy efficiency as part of the administration’s upcoming budget proposal for fiscal year 2022.  Sen. Lisa Murkowski (R-AK), a member of the Senate Energy and Natural Resources Committee, is also a signatory on the letter. 
     
  • The letter states, “Increasing investment in energy efficiency programs within the Office of Energy Efficiency and Renewable Energy (EERE) at the U.S. Department of Energy (DOE) can deliver significant emissions reductions, grow jobs in the clean energy sector and provide savings to American consumers.”  The letter also notes that the pandemic and associated economic impacts have hit the energy efficiency sector especially hard, slowing progress and costing jobs, particularly for workers of color.
  • Energy efficiency employment in the United States grew by 20% – nearly three times the rate of growth in the overall economy – in the five years leading up to 2020, and energy efficiency jobs are available in nearly every county in every state, according to the National Association of State Energy Officials.  

The Real Estate Roundtable’s Sustainability Policy Advisory Committee (SPAC) continues to work with congressional policymakers, EPA and DOE on energy and climate issues of importance to commercial real estate. 

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Infrastructure Legislation Next on Biden Agenda; Michael Regan Confirmed as EPA Administrator

Posted on by Trey Jackson

Infrastructure Dallas

The Biden Administration plans to move forward on its “Build Back Better” infrastructure initiative as the next legislative push to spur the economy after he signed the COVID-19 relief package yesterday. (CNBC, March 10 and New York Times, March 3)

Why It Matters

  • A $312 billion bill was introduced yesterday by House Democrats on the Energy & Commerce (E&C) Committee that would invest in clean energy, drinking water, broadband, and health care infrastructure. LIFT America Act (text, section-by-section analysis, press release).
  • House E&C Democrats last week introduced a sprawling climate change bill, the CLEAN Future Act, which includes provisions on building energy codes, energy benchmarking, and SEC public company reporting on climate risks. (Roundtable Weekly, March 5)
  • More bills are forthcoming on matters addressing highways, mass transit and other surface transportation, as well as energy and infrastructure tax-related matters. In the House, these bills are expected from Peter DeFazio (D-OR) and Richard Neal (D-MA), chairs of the Transportation and Infrastructure Committee and the Ways and Means Committee, respectively.
  • How to pay for the price tag of these measures remains an overriding issue. Possible revenue sources for infrastructure investments were discussed by the White House with a bipartisan group of Senate leaders on Feb. 11, and House leaders on March 4.  (Roundtable Weekly, Feb. 12 and Feb. 19, and Reuters, March 4)

Congressional Committees’ Influence

Senate Energy Committee Chairman Joe Manchin (R-WV)

  • Capitol Hill hearings this week focused on various aspects of low-carbon energy, climate-resilient infrastructure and transportation issues. (Axios, March 8, “Energy and climate move closer to center stage on Capitol Hill”)  The House Energy Committee will start hearings next week on its CLEAN Future Act (E&C press release, March 11)
  • Senate Energy Committee Chairman Joe Manchin (R-WV), above, told “Axios on HBO” that he will seek tax increases to pay for Biden’s upcoming proposal, and will use his leadership position to pursue bipartisan solutions to climate realities.
  • Manchin said the budget process called reconciliation should not be pursued to pass the climate and infrastructure package. Reconciliation was used to advance the pandemic relief bill without Republican support in the 50-50 Senate. (Axios, “Manchin’s Next Power Play,” March 8).
  • Senate Environment and Public Works Chairman Tom Carper (D-DE) told Bloomberg this week that a transportation infrastructure package could move through his committee by the end of May and signed into law as part of a broader economic recovery plan by the end of September. (Bloomberg, March 10)

Michael Regan Confirmed as EPA Administrator

EPA Administrator Michael Regan

  • Michael Regan was confirmed this week as Administrator of the Environmental Protection Agency (EPA).  He will apply his experience as North Carolina’s environmental chief to broad federal policies addressing climate change and energy efficiency. (E&E News and Reuters, March 10)

What’s Next

The Real Estate Roundtable, as part of the Build by the 4th coalition, is encouraging Congress to pass a comprehensive infrastructure package by Independence Day 2021. The Roundtable’s Sustainability Policy Advisory Committee (SPAC) is also focused on climate and energy regulations on buildings emerging at the state and local level. 

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House Democrats Introduce Sweeping Climate Legislation Including Building Codes, Benchmarking and SEC Reporting Provisions

Posted on by Trey Jackson

Capitol with evening sky
House Democrats on March 2 introduced a sprawling bill aimed at achieving net-zero greenhouse gas emissions by 2050 with provisions regarding building construction, operations, and ESG reporting. (Politico, March 3 and CQ News, Reuters, March 2)

  • The 981-page Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act– 981-page measure is sponsored by House Energy & Commerce Committee Chairman Frank Pallone (D-NJ); Climate Change Subcommittee Chairman Paul Tonko (D-NY) and Energy Subcommittee Chairman Bobby Rush (D-IL), (BGov, March 3)
  • The House Committee noted provisions that would impact commercial and residential real estate. “The CLEAN Future Act improves the efficiency of new and existing buildings, as well as the equipment and appliances that operate within them. It establishes national energy savings targets for continued improvement of model building energy codes, leading to a requirement of zero-energy-ready buildings by 2030.” (Energy & Commerce Committee news release, March 2)
  • The CLEAN Future Act also proposes mandatory federal-level energy and water “benchmarking” requirements for buildings over 50,000 square feet. These provisions mimic dozens of existing state and local requirements that currently require building owners to track their assets’ energy and water usage and disclose this information to the public.
  • CLEAN Future Act reference:
  • The bill also directs the Securities and Exchange Commission (SEC) to require public companies to disclose in annual reports information about their “direct” and “indirect” GHG emissions, and corporate governance procedures to identify and manage climate-related risks. (Akin Gump Strauss Hauer & Feld LLP, March 3)
  • Acting SEC Chair Allison Herren Lee recently issued a Climate Change Statement explaining, “[n]ow more than ever, investors are considering climate-related issues when making their investment decisions” and that it is the SEC’s “responsibility to ensure that they have access to material information when planning for their financial future.” (SEC statement, Feb. 24  and Gibson Dunn, March 1) 

While the measure will likely face substantial challenges to attract 60 votes in the evenly divided Senate, The Roundtable’s Sustainability Policy Advisory Committee (SPAC) is conducting a detailed analysis of the CLEAN Future Act’s impacts on the real estate sector. 

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Biden Plans Infrastructure Push as Congress, Agencies Prepare to Investigate the Texas Electric Grid Crisis

Posted on by Trey Jackson

The Biden Administration plans to push for a large-scale infrastructure initiative that takes into account the effects of climate change after Congress finishes consideration of the pandemic relief package. Meanwhile, federal regulators and Congress are preparing to examine the threat that climate change poses to the nation’s electric infrastructure in the wake of last week’s deadly freeze in Texas that stranded millions without power. (Wall Street Journal and Reuters, Feb. 22)   

  • The Biden Administration is expected to reveal details of its infrastructure package soon, as part of its “Build Back Better” agenda to spur economic recovery. (Roundtable Weekly, Feb. 19)
  • The rolling power outages across Texas and the Midwest due to severe winter storms prompted the Federal Energy Regulatory Commission (FERC) this week to open a proceeding to examine how electric grid operators prepare for and respond to extreme weather events. (FERC news release and FERC Insight, Feb. 2021)
  • FERC Chairman Richard Glick said, “The effects of climate change are already apparent and we must do everything we can within our statutory authority to ensure that the electric grid is capable of keeping the lights on in the face of extreme weather.” 
  • The Texas power outages have increased scrutiny in Congress on the need for investments in the nation’s electric grid. House Speaker Nancy Pelosi (D-CA) referred to the blackouts when she announced that the House Energy Committee will be investigating the matter. (Axios, Feb. 19)
  • In the Senate, Energy Committee Chairman Joe Manchin (R-WV) told Politico Pro that he is planning his own review of the power grid issue. (Politico, Feb. 19) 
  • The question of how to fund a national infrastructure effort remains the major challenge for Washington policymakers. ( Roundtable Weekly, Feb. 12)  Senate Environment and Public Works Committee Chairman Tom Carper (D-DE) suggested at a hearing yesterday that a national pilot program should explore a “vehicle miles travelled” tax, while Manchin separately stated that the gas tax paid by consumers at the pump “is not going to do what we need” to build and modernize roads, bridges, and mass transit. (NATSO, Feb. 25)   
  • The Roundtable and the Build by the 4th coalition is encouraging Congress to pass a comprehensive infrastructure package by Independence Day 2021. Last December it also provided recommendations to the new Administration that included infrastructure funding and modernization as engines to drive recovery and job growth from the economic fallout of the COVID-19 pandemic. 

Construction Industry’s Role

  • The leadership role that the construction industry could take in sustainable development was the focus of a Feb. 7 op-ed in Crain’s New York Business by Suffolk’s Executive President of Business Development, Ann Klee. (Suffolk’s Chairman and Executive Officer John Fish is the Chair-Elect of The Real Estate Roundtable)
  • “The construction industry can be part of the solution by working with developers and owners to reimagine the entire building lifecycle and ensure sustainability is incorporated at every stage of the process, from planning, design and material selection to building operation and energy efficiency after construction completion,” the op-ed states.
  • Other recommendations include more efficient management of the consumer supply chain; just-in-time delivery of materials to project sites; and minimizing construction waste.

Ms. Klee concludes that sustainable development will require “smart planning, flawless execution and education across the spectrum of stakeholders to ensure these best practices pay significant dividends, both socially and financially, in the long term.”

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Roundtable Advises that Uniform Federal Data and Voluntary Standards are Needed to Avoid State, City “Patchwork” of Carbon Pricing Protocols

Posted on by Trey Jackson

FERC logo

The growing number of state and local mandates to reduce GHG emissions and increase renewable energy supplies are driving the need for uniform and voluntary federal-level practices to measure and price carbon, The Roundtable advised in comments submitted on Tuesday.

  • This is because dozens of state and city laws are setting energy measurement, reduction, and emissions targets on buildings, and imposing renewable energy “portfolio standards” that require greater power supplies from solar, wind, and other carbon-free sources.
  • These state and local mandates have “effectively forced the issue – throughout the United States – that carbon emissions are an economic liability, and carbon reductions are an economic asset,” the letter explains.  Environmental demands from investors, tenants, employee talent, and other audiences also impel real estate owners to voluntarily purchase “clean” power and “offset” carbon emissions.
  • While FERC itself lacks authority from Congress to set a price on carbon, within the Commission’s sphere of regulating bulk electricity sales in “wholesale markets” it can play a “vital role to help facilitate a harmonious nationwide system of standards relating to carbon measurement and pricing,” the comment letter provides.

SPAC Involvement

Leadership - RER's SPAC

  • The Roundtable’s Sustainability Policy Advisory Committee (SPAC) – chaired by Tony Malkin (Chairman, President and CEO, Empire State Realty Trust), above left,  and vice-chaired by Dan Egan (Senior Vice President, Vornado Realty Trust), right, – directed the course of the comments, which also provides:
    • FERC should encourage jurisdictions to rely on federal data provided by power plants and managed by the Environmental Protection Agency (EPA) – known as “eGRID” – as the unifying information source to measure how combustion of various fuels used across the country contribute to GHG emissions;
    • Federal measurement standards can support “the types of long-term price signals that our energy future demands,” and minimize a confusing a “hodgepodge” in emerging state and regional markets that already treat carbon as a commodity (such as through the purchase of renewable energy certificates (RECs));
    • Any government revenue raised by state-level carbon pricing regimes should be returned to commercial, residential, and other consumers to help defray their energy costs. Sums from any such “carbon dividend” should also be channeled to create jobs by modernizing energy infrastructure and electrifying the grid.

“The SPAC has been hard at work for years on real estate related topics around energy production, distribution, consumption, and pricing that now are front and center,” Malkin said.  “Our members can be comfortable that they have excellent representation and access to information, that RER is on its front foot here, and that representation on SPAC by our members is critical to their ability to get the best information and have the opportunity to help inform The Roundtable’s actions.”

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EPA Launches Voluntary “ENERGY STAR Tenant Space” Program to Certify High Performance Leased Office Suites

Posted on by Trey Jackson

EnergyStar Tenant Space

The Environmental Protection Agency (EPA) on Oct. 13 launched its voluntary “ENERGY STAR Tenant Space” labeling program to recognize tenants who collaborate with their landlords on design and construction of high performance leased office spaces. (Download EPA’s Oct. 15 webinar slides – How to Apply for ENERGY STAR Tenant Space Recognition.)

  • EPA’s new certification for office tenants is now a permanent ENERGY STAR program offering, to complement the agency’s popular “whole building” label. The ENERGY STAR label is a key marketplace influence to signal energy efficient assets, impacting nearly 35,000 buildings and plants nationwide that represent more than 5 billion square feet of commercial space. (ENERGY STAR Facts and Stats)
  • “ENERGY STAR Tenant Space” recognition requires office tenants to estimate their suites’ energy use, separately meter their spaces, use efficient office equipment, and share energy usage data with their landlords. (See EPA’s guide, “How to Prepare for Tenant Space Recognition.”)
  • EPA will also offer access to a new online tool for estimating lighting energy usage within its commonly used Portfolio Manager benchmarking platform. Use of this new lighting assessment function, and requiring an office suite to meet a lighting efficiency “target,” will be a prerequisite for the voluntary Tenant Space label.
  • The Tenant Space label is currently available to office tenants. EPA explained to SPAC members that it intends to expand the program to provide recognition opportunities to retail and warehouse tenants in the coming months.
  • ENERGY STAR building ratings and the corollary Tenant Space program were part of a discussion held October 1 at The Real Estate Roundtable’s offices in Washington, D.C., between EPA Administrator Andrew Wheeler and Roundtable President and CEO Jeffrey DeBoer. 
  • In a video of the discussion, Wheeler stated he is a “strong” ENERGY STAR proponent and that the agency’s expansion of the label to cover tenant spaces was “the right thing to do.” Wheeler also emphasized these platforms must remain voluntary to encourage additional private-sector technological innovations in buildings and manufacturing. (See video at 12:40 and Roundtable Weekly, Oct. 2)

EPA’s tenant recognition efforts are authorized by the so-called “Tenant Star” law, passed by Congress in 2015 with The Roundtable’s strong backing. (Commercial Property Executive, May 4, 2015)

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Roundtable Interview with US-EPA Administrator Covers ENERGY STAR, Coronavirus Guidance, and Brownfields Redevelopment in Opportunity Zones

Posted on by Trey Jackson

Jeffrey DeBoer and Andrew Wheeler, EPA Administrator

U.S. Environmental Protection Agency (EPA) Administrator, Andrew Wheeler, above right, met yesterday with Real Estate Roundtable President and CEO, Jeffrey D. DeBoer, above left, to discuss a wide range of energy and environmental policy matters that impact the U.S. real estate sector.  (Video on Roundtable’s YouTube page)

DeBoer interviewed Wheeler at The Roundtable’s offices in Washington, D.C., as part of a series of “listening sessions” between EPA and stakeholders.  Their discussion covered:

  • EPA’s development of a standardized process to systematically calculate the economic costs and environmental benefits of its regulatory programs (video at 3:29);
  • A “science transparency” regulation that makes the scientific studies relied upon by EPA available to the public (video at 4:56);
  • Wheeler’s implementation of a “lean management” system to streamline the agency’s procedures for project permitting and environmental reviews (video at 8:15);

Energy Star Tenant Space logo

  • ENERGY STAR building ratings, and EPA’s corollary Tenant Space program that will launch on October 13.  Wheeler stated he is a “strong” ENERGY STAR proponent, expanding the program to cover tenant spaces was “the right thing to do” – and that these platforms must remain voluntary to spur technological innovations deployed in buildings and manufacturing. ( video at 12:40);
  • EPA’s development of COVID-related guidance to help the economy re-open, such as updated Portfolio Manager benchmarking instructions to account for recent changes in building occupancy and hours of operations, EPA’s approvals of cleaning and disinfecting products to combat COVID-19, and information on flushing pipes and plumbing systems to maintain indoor water quality (see, e.g., Roundtable Weekly, July 31, 2020 and May 22, 2020) (video at 15:45)
  • Public-private partnerships to re-develop Brownfield sites in economically-distressed “opportunity zones” created under the 2017 Tax Cuts and Jobs Act.  Wheeler remarked that every dollar EPA invests in a Brownfields clean-up leverages up to an estimated $20 dollars in private sector investment capital for surrounding low-income neighborhoods. ( video at 18:40)
  • Also yesterday, EPA career staff spoke to The Roundtable’s Sustainability Policy Advisory Committee (SPAC) regarding the imminent launch of the ENERGY STAR Tenant Space program on October 13.  Opportunities to certify high performance design and construction of leased office spaces will become a permanent EPA offering, and stem from the so-called “Tenant Star” law Congress passed in 2015 with the Roundtable’s strong backing.  (Commercial Property Executive, May 4, 2015)

The Roundtable participates in EPA’s Smart Sectors Program, the agency’s platform to collaborate with industry sectors to protect the environment and public health though sensible, cost-effective regulatory and incentive programs.  (EPA news release, Oct. 3, 2017)

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House Approves Government Funding Until Dec. 11 and Passes Comprehensive Energy Package

Posted on by Trey Jackson

Capitol Building Dusk

The House of Representatives on Tuesday night passed a bipartisan Continuing Resolution (CR) by a vote of 359-57 to extend federal government funding through December 11 and avoid a government shutdown at the end of the month.  (Text of H.R. 8337 and Section-by-section summary of the legislation)

  • The CR includes short-term funding extensions (with no policy changes) for surface transportation funding, the National Flood Insurance Program, and the EB-5 Regional Center Program.
  • The Senate is expected to pass the CR next week and send it to President Trump for his signature before FY’2021 starts on October 1, 2020. 

Energy Package Passes

skyline-chicago-night-x475w

  • The House yesterday also passed a comprehensive energy package (H.R.4447) that includes sections on building energy codes, federal energy data regarding commercial buildings, and grant programs for underserved communities and green infrastructure.  The measure passed with mostly Democratic support by a 220-185 vote.  (CQ, Sept. 24)
  • One of the major goals of the legislative package is to reduce carbon dioxide emissions by 80% by 2050. (BGov, Sept. 16)
  • The Clean Economy and Jobs Innovation Act includes a section – strongly supported by The Roundtable – that would require the U.S. Environmental Protection Agency (EPA) and the U.S. Energy Information Administration (EIA) to report to Congress through a “coordination agreement” regarding each agency’s separate collection of data regarding commercial building energy consumption.
  • The House bill also includes Roundtable-backed provisions that would bring greater transparency to how the U.S. Department of Energy provides federal recommendations to develop building energy codes, which state and local governments may ultimately adopt through a long-established process. (Roundtable Weekly, June 19, 2019)

White-House-475w-edit

  • The White House on Sept. 21 stated its opposition to H.R. 4447.  Among the reasons for its veto threat, the Administration believes that the bill sets “rigid targets” on Federal buildings to reduce water and energy consumption, and is concerned that State and local governments might establish building codes “not grounded in available technologies.”
  • In the Senate, Energy Committee Chair Lisa Murkowski (R-AL) hopes to reintroduce bipartisan energy legislation (S. 2657) next week.  Sen. Joe Manchin (D-WV), the Senate Energy Committee’s ranking member and co-sponsor of S. 2657, said they are working through issues to overcome an impasse on the building energy codes section. (BGov, Sept. 24)

If the Senate passes its bill, a “conference” would be convened – perhaps during the Lame Duck Congressional session after Election Day – for House and Senate committee leaders to reconcile any differences between their respective packages.

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EPA Launching “ENERGY STAR Tenant Space” Process on October 13; CBECS Requests Stakeholder Feedback; House May Vote on Building Codes Bill Next Week

Posted on by Trey Jackson

Energy Start Tenant Space Charter Tenant Award

Recognition for office tenants who collaborate with their landlords on design and construction of high performance leased spaces will be the focus of the voluntary ENERGY STAR Tenant Space program, scheduled to launch on October 13. 

  • The launch marks the second occasion that the U.S. Environmental Protection Agency (EPA) will certify energy efficient office suites, following inaugural awards granted to “charter tenants” in 2018 and legislative authorization for the program from the so-called “Tenant Star” law passed by Congress in 2015. (Commercial Property Executive, May 4, 2015).
  • EPA’s application process, opening October 13, will require office tenants seeking certification to estimate their suites’ energy use, separately meter their spaces, use efficient office equipment, and share energy usage data with their landlords.  See EPA’s “How to Prepare for Tenant Space Recognition” guide.
  • EPA will also offer access to a new tool for estimating lighting energy usage intensity within the ENERGY STAR “Portfolio Manager” platform. Use of this new lighting assessment function will be a prerequisite for Tenant Space awards.  EPA has plans for on-line demonstrations in the coming weeks.
  • The ENERGY STAR label impacts nearly 35,000 buildings and plants nationwide, representing more than 5 billion square feet of commercial space. (ENERGY STAR Facts and Stats)   

Real Estate Stakeholders Requested to Provide Input on CBECS Process

EIA logo

  • The Roundtable requests that our members respond to a short questionnaire (6 questions) currently on the Commercial Building Energy Consumption Survey (CBECS) website.
  • An ENERGY STAR “whole building” score (registered on a scale of 1 to 100) is generally based on data from the Commercial Buildings Energy Consumption Survey (CBECS), conducted periodically by the U.S. Energy Information Administration (EIA).  EIA speakers have provided The Roundtable with information on CBECS data and its impact on ENERGY STAR scores for years.
  • The Roundtable estimates that EPA will next update its ENERGY STAR building scoring methods sometime around 2023, based on CBECS data collected in 2018-2019.  However, that data is pre-COVID.  It does not reflect the likely changes that have taken place in building occupancy and energy use since the pandemic struck in 2020.
  • Answers to the current CBECS questionnaire may have a significant impact in EIA’s data collection efforts regarding the U.S. buildings.  It is crucial that EIA capture data from all types and sizes of buildings – such as larger buildings over 500K square feet that have historically been under-represented in past surveys.
  • RER members responding to the CBECS questionnaire should also explain that EIA’s data collection should account for possible changes in building occupancy, energy consumption, ventilation protocols, and HVAC equipment since the COVID-19 pandemic started.  

House May Vote on Energy Bill Next Week

U.S. Capitol

Issues regarding CBECS data are also part of legislation reintroduced by House Democrats on September 15, The Clean Economy and Jobs Innovation Act (H.R. 4447).  The omnibus bill includes sections on building energy codes, grant programs for underserved communities and green infrastructure.  The bill may come to a vote in the House next week.

  • The bill includes a section, strongly supported by The Roundtable, which would direct EPA and EIA to enter into an “information sharing agreement.”  Such an agreement would direct the agencies to publicly and systematically address the relationship between CBECS data and ENERGY STAR buildings scores, as discussed above.
  • The bill also includes provisions, long-supported by The Roundtable, that would bring greater transparency to the process by which the U.S. Department of Energy provides federal recommendations to develop building energy codes that state and local governments may ultimately adopt. (Roundtable Weekly, June 19, 2019)
  • One of the major goals of the comprehensive, nearly 900-page legislative package is to reduce carbon dioxide emissions by 80% by 2050.  (BGov, Sept. 16)

In the Senate, Energy and Natural Resources Chair Lisa Murkowski (R-AL) is working to reintroduce energy reform legislation, but has once again run into delays due to long-standing objections over housing affordability issues.  (E&E News, Sept 17)

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EPA Releases ENERGY STAR Guidance on Building Operations Impacted by COVID-19

Posted on by Trey Jackson

The U.S. Environmental Protection Agency (EPA) announced ENERGY STAR program guidance this week to reflect changes in building operations due to the COVID-19 pandemic. The guidance was developed after EPA sought input from The Roundtable’s Sustainability Policy Committee Advisory Committee (SPAC).

  • The EPA guidance – “Has COVID-19 affected ENERGY STAR certification?” – impacts real estate industry practices regarding the web-based “Portfolio Manager” tool used by more than 450,000 properties (or nearly 45% of U.S. commercial building space) to measure, benchmark, and track energy, water, and waste management in buildings. “Portfolio Manager” is a voluntary platform at the federal level for private sector buildings although a number of state and local laws mandate its use in major markets.  
  • EPA explained that building owners and managers should update Portfolio Manager “use details” to reflect changes in occupancy and operations that may have occurred since the start of the pandemic – for both the numbers of workers in a building and the asset’s weekly operating hours. (Point #1 in EPA’s guidance)  The agency also provided practical instructions on how to update such “worker numbers” and “hours of operation” details in the Portfolio Manager tool.
  • When merged with data on a building’s actual energy consumption, these “use details” are key variables to determine a 1-100 ENERGY STAR rating that allow investors, tenants, regulators, and other audiences to assess an asset’s energy performance compared to like-kind buildings.
  • EPA staff sought input on these matters at SPAC’s “virtual meeting” on June 12, which was held in conjunction with The Roundtable’s remote Annual Meeting (Roundtable Weekly,  June 12).  SPAC members were surveyed for their recommendations about how ENERGY STAR should address changes in building operations during the pandemic. The committee’s preferred option is now reflected in EPA’s latest guidance. 
  • EPA plans to issue additional guidance (expected in September) to advise owners and managers on how to apply for ENERGY STAR certifications that may be awarded to buildings in 2020. (Point #3 in EPA’s guidance) The key clarification in this week’s announcement is that updating “use detail” data to reflect COVID-era operations is prerequisite for the ultimate ENERGY STAR “label,” which may be granted for a building that ranks “75” or higher on EPA’s scale.
  • This week’s guidance is the latest example of longstanding cooperation between the ENERGY STAR program and SPAC.  It follows collaborations to update the technical models that EPA currently uses to “score” buildings  (Roundtable Weekly, July 19, 2019). SPAC also assisted the agency with developing the “ENERGY STAR Tenant Space” program to recognize high performance design and construction of leased office.  (Roundtable Weekly, June 15, 2018) 
  • In related news, EPA opened its process for 2021 ENERGY STAR awards this week.  Applications must be submitted by December 9, 2020 and can be downloaded here.

SPAC is led by Chairman Anthony E. Malkin (Chairman, President, and CEO, Empire State Realty Trust) and Vice Chairman Daniel Egan (Senior Vice President, Energy & Sustainability, Vornado Realty Trust).

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