Citizens of the United States won’t know whether their next Commander in Chief will be Democratic Presidential Candidate Kamala Harris or Republican Donald Trump until (at least) Tuesday, November 5. But more than a month before Election Day 2024, a coalition of sustainable building organizations has already created a detailed agenda for the next administration and is urging the presidential campaigns to consider these policy solutions as part of their economic platforms.
In the wake of a global pandemic, the commercial real estate (CRE) sector faces a growing number of challenges, according to the U.S. Green Building Council (USGBC). High interest rates, declining occupancy rates, and soaring insurance and construction costs have placed significant pressure on property owners and developers. These issues have resulted in widespread financial strain in large urban centers and rural communities, leading to shrinking tax revenues and struggling business districts. At the same time, increasing climate threats present risks to real estate owners, insurers, and lenders that are destabilizing commercial real estate finance and insurance markets.
The federal government can play a critical role in revitalizing the commercial real estate sector. With that in mind, USGBC along with the New Buildings Institute (NBI), Institute for Market Transformation (IMT), and Carbon Leadership Forum (CLF) are urging the next administration to implement policies that strengthen the sector’s resilience and enhance environmental sustainability, public health, and U.S. economic competitiveness. These policies are spelled out in a joint policy brief, Reviving America’s Commercial Building Sector: 2025 Efficiency & Resiliency Policy Agenda.
“These policy recommendations outline steps the next administration can take to help struggling downtowns overcome current challenges and emerge better prepared for the future,” explained Peter Templeton, USGBC president and CEO. “This means buildings that are more resilient in the face of disasters, offer healthy indoor air quality, and incorporate energy efficiency, sustainable materials and clean energy technologies that generate fewer carbon emissions and lower operating costs.”
The agenda calls for expanding the Sec. 48E Clean Electricity Investment Tax Credit (ITC) to cover energy efficiency investments. The ITC currently covers only electricity-generating technologies, such as on-site solar, even as energy efficiency is widely viewed as a foundational solution to energy and climate challenges. This expansion would drive significant economic activity in retrofitting buildings to be more energy efficient and provide parity under the tax code for energy efficiency as the ITC transitions to a technology-neutral structure in 2025 while reducing demand on the grid and accelerating our ability to meet clean energy targets.
The agenda also calls for tax incentives for office-to-residential conversions to address the high office vacancy rates and a strong need for more housing. It also offers a suite of initiatives to help construction markets transition to low-embodied carbon materials and improve indoor air quality, among other provisions.
“At this critical time, federal investment to improve building performance, efficiency, and resilience can protect health and the environment, decarbonize our buildings, enhance productivity, prepare us for the future, and create jobs at every skill level,” commented IMT CEO Alex Dews.
“The policy agenda outlined for commercial buildings will provide timely support to both the new and existing building stock,” said Susan Stratton, CEO, NBI. “These federal actions are an imperative towards economy-wide decarbonization, especially in the face of building resilience against extreme weather events, while saving on energy cost and lowering emissions, and enhancing health and comfort for inhabitants.”
“Federal investments in the building sector have the potential to make buildings a part of the climate solution while improving health and quality of life in communities across the U.S.,” said Megan Lewis, CLF program director. “Continued federal leadership in advancing innovation and data used to measure the emissions of buildings and products will be critical in positioning the U.S. as a competitor in the global market for low-embodied carbon construction materials.”
You can download the full policy brief here.
