- Energy Star may be shut down as part of proposed federal budget cuts, raising alarms across the real estate industry.
- Apartment owners rely on Energy Star for building certification, marketing, energy savings, and regulatory compliance.
- The loss of Portfolio Manager would affect energy benchmarking and reporting in thousands of multifamily and commercial buildings.
A Program at Risk
According to Multifamily Dive, the Energy Star program, launched in 1992, has become a critical tool in US energy policy. In its 2023 report, it’s said that the program has helped save about $500B in energy costs over the past three decades. The federal program creates roughly $40B in annual energy savings at a cost of just $32M to taxpayers.
In early May, The New York Times reported that the Biden administration’s FY 2026 budget proposal includes a plan to cut the program. This move would be part of broader reductions in federal climate and energy-efficiency efforts. The Environmental Protection Agency (EPA) hasn’t confirmed this decision, but the industry has responded quickly.
More than 1,200 businesses and organizations signed letters urging the EPA to preserve Energy Star. Supporters say it offers unmatched value and delivers real results at a low cost.
Why It Matters to Multifamily
For apartment operators, Energy Star is both a cost-saving tool and a marketing advantage. Energy Star-rated appliances attract renters who want to save money and support sustainability.
“Energy Star certifications are widely used and recognized among residents,” said Nicole Upano, assistant vice president of housing policy at the National Apartment Association. “It’s also a major way for residents to save on their utility bills.”
Operators also seek whole-building certifications. Many use the program’s tools to track energy use and improve performance.
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Impact on Energy Tracking and Compliance
Portfolio Manager, one of Energy Star’s key tools, helps owners and managers track energy and water use. It also lets them compare building performance with peers. In 2024 alone, more than 300,000 buildings used the tool.
Many local and state governments rely on Portfolio Manager to enforce energy regulations. The tool supports compliance in seven states, 48 cities, and two Canadian provinces. Losing it could leave apartment owners without a way to meet those rules.
What’s Next
Ending the Energy Star program completely would likely require Congress to act. However, the EPA can still reduce or restructure it. Industry experts encourage operators to back up their Portfolio Manager data in case the system becomes unavailable.
“The disruption that it would cause if it were shut down, even temporarily, is massive,” said Alex Dews, CEO of the Institute for Market Transformation.
Without Energy Star, apartment owners may lose a trusted and affordable system for managing energy use—one they’ve depended on for over 30 years.
