The Energy Star program is facing potential removal or privatization due to cost-cutting measures, and that could have some serious implications for facilities managers in institutional and commercial facilities.
Ever since its introduction in 1992, Energy Star has saved more than $500 billion and helped prevent four billion metric tons of greenhouse gas emissions from entering the atmosphere, according to the U.S. Environmental Protection Agency.
In addition, managers rely on the program and standard for benchmarking, incentives and trusted product ratings. If the program is eliminated, the push for energy savings takes a hit.
Energy Star provides incentives such as tax breaks, rebates and recognition for using verified products. It even provides tools such as the Portfolio Manager that allows for ongoing monitoring after construction.
“If [Energy Star] was eliminated, then I think that there would be less incentive for builders to build efficiency into their buildings,” says Wayne Turett, founder and principal of The Turett Collaborative.
Another drawback of losing Energy Star is that it takes away a trusted benchmark that many managers rely on. Its ratings help guide product and system selection in areas such as appliances, HVAC and lighting.
Even if the program were privatized, that could splinter standards by state, which would undermine consistency and trust in the program, says Turett.
“If they were to privatize it, there may be different standards that they are measuring against,” says Turett. “So, there would be no one standard like there is today.”
If the U.S.-based program weakens, Turett sees professionals shifting towards other alternatives like European efficiency benchmarks, the Passive House standard and similar frameworks to model new building efficiency standards after. Even then, managers would likely face a patchwork of state and local codes, which would produce inconsistencies. It would also make managers rely more on independent research and local/state programs.
With so many loopholes, any sort of environmental, social and governance (ESG) and sustainability goals would begin to feel the pressure as well. Organizations with internal sustainability targets will push forward with their efforts, Turett says.
Turett also says that the potential rollback of Energy Star could reflect a broader shift in federal priorities. He sees recent moves, such as the cancellation of offshore wind projects, as possible indication that energy efficiency and renewable investment are no longer a priority at the federal level.
“They just recently canceled the whole wind farm off of Rhode Island that was almost complete,” he says.
That shift instills uncertainty for managers and building owners who usually plan investments around long-term energy and policy trends. Without federal support, the burden falls more on states, cities and private organizations to set the direction.
Still, efficiency may not vanish from the built environment, even without the Energy Star program. Surging energy costs and internal corporate ESG commitments will continue to drive upgrades in HVAC, lighting, insulation and building envelope systems. However, managers may have to carry more of the responsibility, and the cost, on their own.
“It’s not like efficiency is going to go out the window – you can make your buildings more efficient all the time,” he says. “In the past, you had help from the government to do it. You may not have that anymore.”
Jeff Wardon, Jr., is the assistant editor of the facilities market.
