If ENERGY STAR Disappears: What's at Stake
The proposed elimination of the ENERGY STAR program by the current administration has the potential to upend the commercial real estate (CRE) industry. Industry leaders have rallied in support of the program, noting that "ENERGY STAR is among the most successful public-private partnerships in U.S. history, with more than 30 years of proven results." With a modest annual budget of approximately $32 million (less than 1% of EPA's spending), the program saves American households more than $40 billion annually on energy bills, with every federal dollar spent yielding $350 in consumer savings.
ENERGY STAR: More Than a Label
This success stems from the program's effectiveness for businesses. As industry partners have stated, "Our companies have devoted considerable time and resources to partnering with ENERGY STAR because it works for business." The program's influence reaches far beyond labeling through the Portfolio Manager tool, a free web-based platform that has transformed how buildings manage energy use.
"More than 330,000 buildings have used ENERGY STAR's Portfolio Manager program to benchmark their energy use across nearly 35 billion square feet – or about 25% of all commercial floor space nationwide – allowing building owners to track, compare and improve energy performance over time and make business decisions about investments and capital projects."
The Role of Portfolio Manager
- Regulatory Compliance: Many local governments require ENERGY STAR Portfolio Manager for energy benchmarking and disclosure laws. Cities such as New York, Boston, and San Francisco have codified its use.
- Industry Standardization: The 1-100 ENERGY STAR score provides a common language for building owners, managers, architects, and engineers to compare energy performance.
- Market Transformation: ENERGY STAR certification acts as a market signal, making buildings more attractive to tenants and investors.
- Data-Driven Decisions: Portfolio Manager data is used for operational improvements, capital planning, and asset valuation.
The Ripple Effect: What Happens If ENERGY STAR Goes Away?
Without ENERGY STAR, the CRE industry would lose its primary tool for measuring, comparing, and improving building performance. The absence of a standardized benchmark would create confusion, increase compliance costs, and undermine efforts to track progress toward decarbonization and sustainability goals.
Utility rebate and incentive programs, which depend on ENERGY STAR data to verify savings and process payments, would be thrown into disarray. The downstream impacts would affect not just building owners, but also energy raters, auditors, HVAC and insulation contractors, and affordable housing programs.
Impact by the Numbers
- $40 billionannual household savings
- 750,000+U.S. jobs supported
- 300MENERGY STAR products purchased annually
- 16,000+participating companies
- 350,000ENERGY STAR certified homes built in 2024
- $350saved per $1 of federal spending
Looking Ahead
As America's leadership in artificial intelligence grows and data center demand increases, ENERGY STAR's role becomes more critical than ever. The program not only saves money but improves grid stability and resilience by reducing peak energy demand. With grid disruptions on the rise, ENERGY STAR-certified appliances, electronics, homes, buildings, and industrial facilities help ensure that consumers and businesses use energy more efficiently, decreasing strain on the grid and lowering the risk of blackouts.
"Our companies have devoted considerable time and resources to partnering with ENERGY STAR because it works for business. We respectfully urge you to stand with us in support of ENERGY STAR by ensuring that it remains well-funded and expertly staffed at EPA."
As a cost-effective, flexible, market-driven program, ENERGY STAR represents a strategic solution for strengthening U.S. energy independence while directly lowering bills for American families. With energy prices remaining a top concern for households nationwide, and grid reliability becoming increasingly critical, ENERGY STAR's role in managing energy demand and fostering innovation has never been more important.
The potential loss of this program would ripple far beyond the immediate impact on businesses and consumers. It would undermine decades of progress in energy efficiency, weaken grid resilience, and remove a proven tool for maintaining America's competitive edge in energy innovation. As the industry letter makes clear, ENERGY STAR isn't just a certification program—it's a cornerstone of American energy strategy that deserves continued support and investment.