HomeEnglishBusinessWhat the end of Energy Star could mean for commercial real estate

What the end of Energy Star could mean for commercial real estate

Sign an energy star on a building.

Lin Gilbert | Moment Mobile | Getty images

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Most people consider the energy star on their devices a slightly blue sticker that tells them that they will see some measures to save energy-evil on their utility bills. But a public-private partnership, administered by the US Environment Protection Agency, is much higher than this. It is now allegedly on the chopping block as part of the large -scale budget cut proposed by the Trump administration.

Broadly, 2,500 builders, developers and manufactured housing firms participate in the Energy Star Residential New Construction Program, which determines the strict energy-defense guidelines required to earn their designation. Last year, more than 8,800 commercial buildings earned an energy star, saving more than $ 2.2 billion and stopped emissions more than 5.7 million metric tons, According to the Energy Star website,

Even more important for property owners, the energy star also includes a software platform that is a fundamental infrastructure for energy tracking in commercial real estate. EPA’s energy star portfolio manager connects utilities to tool landlords and then dozens of states and municipal governments, which rely on it to maintain their energy and climate policies, many of which include tax breaks and financial subsidies for energy savings.

The EPA announced a large -scale job cuts and restructuring in early May, and when it did not specifically refer to several reports, the EPA is part of the plan, cited as EPA documents.

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“EPA is continuing working to implement the reorganization plans announced on May 2, 2025,” an EPA spokesman said in a statement. The EPA will provide updates on these schemes as they become available. “

The agency refused to comment further.

Landlords rely on the portfolio manager data to maintain compliance with state and municipal regulation and measure the energy performance of buildings in their portfolio and to decide which upgrade is required. Such upgrades may include new HVAC and lighting.

According to the EPA website, this device was used by over 330,000 buildings last year, including about 25% of all commercial buildings in the US. According to the agency, seven states, 48 local governments and two Canadian provinces currently have the program and its software for its energy benchmarking and transparency policies.

“There is a possibility that they will define the entire software platforms. And so if the system disappears, the data disappears with it, and this means that the hub, the hub, which is the hub, which is the hub connected to the landlord landlord and the state and municipal governments shares the energy data near them, which will all go away,” said the co-founder of Lia de Guzmann. shiftA real estate operational platform.

At the very highest level, the energy star portfolio manager supports $ 14 billion per year according to Portfolio manager Gujman.

“If you do not have data, you have no means to understand how to deploy retrofit initiative in your building,” he said.

Cambio, which manufactures data to automate real estate operations, can tap in energy from the past and is offering the option to backup the data already existing data to the building owners and managers. However, it cannot get future data if EPA moves its system down.

The Industries Organization, including the National Association of Home Builders (NAHB), the National Apartment Association (NAA) and the National Multimilli Housing Council (NMHC), are fighting for the existence of the program. The concern is that if the energy star, including the portfolio manager, had to lose federal support and then manage by a private unit, the cost will increase.

Nicole Apano, director of the public policy for NAA, said, “This is a $ 32 million program for the government, but it provides in terms of return on investment – it is very large.” “It provides hundreds of billions of dollars of savings for consumers and businesses in its current form, and if it was to be managed by an external company, it may result in a fee-based system that will increase the cost to use this program.”

If the portfolio manager was no longer a government program, Apano said, possible results would be a complex patchwork of compliance.

“As a government’s managed program, they do not choose a horse. They focus on too much energy efficiency and lower the waste in overall. But, say, an outsider was to manage it, they can focus on electrification on gas, or choose any kind of energy distribution system that they do, and we would not like to see it.

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