Smart, bipartisan energy policy lurks beneath Keystone debate

There’s no shortage of hyperbole from all sides regarding the inflated “pros” and “cons” of the Keystone XL pipeline.  Lost in this debate is a widely popular, bipartisan proposal supported by Congressional Republicans and Democrats of all stripes and scores of business groups and environmental advocates alike.  It would boost energy efficiency in our nation’s buildings, help reduce our dependence on foreign oil while also curbing harmful carbon emissions.

This proposal – known as “Tenant Star” – passed the Senate as an amendment to the Keystone bill two weeks ago, in a lopsided 94-5 vote.  Last March, it passed the House by an overwhelming 375-36 margin.  Everything about  “Tenant Star” aligns with the Obama administration’s commitments to address climate change while also making our built environment and infrastructure competitive in the 21st century.  The only thing not working in favor of “Tenant Star” is timing.  The House and Senate couldn’t get on the same page to pass it during last year’s session and now it’s being weighed down by the ballast of Keystone politics. 

{mosads}Commercial and residential buildings – and the tenants and occupants who live, work, and play in them – have a big role in shaping national energy policy.  All buildings account for about 40 percent of U.S. energy consumption.  In a given building, 50 percent or more of its energy use can be attributed to the design choices and habits of their occupants.  “Tenant Star” would go a long way to encourage landlords and tenants to cooperate on shared goals to lower energy use in their buildings.  It would provide powerful branding and labeling opportunities for teams of building owners and their tenants to signal to the market that leased spaces are designed and optimized for high performance and sustainable operations. 

Moreover, “Tenant Star” comes at no cost to tax payers.  Pension funds and other entities driven by socially responsible investment platforms would be drawn to buildings that boast leased spaces with “Tenant Star” labels. 

“Tenant Star” builds are the overwhelming success of the ENERGY STAR program administered by the U.S. Environmental Protection Agency.  The program also does not rely on heavy-handed, “one size fits all” federal regulations, but rather on the power of public-private partnerships to use energy more efficiently at no sacrifice to businesses or consumers.  

While the current ENERGY STAR is available as a rating for an entire building, the missing part of the equation is to recognize leased spaces within those buildings that strive for and achieve high levels of energy efficiency.  That’s where “Tenant Star” would come in and fill the gap in EPA’s existing program.  

EPA estimates that more than 20,000 buildings in the U.S. are certified under the ENERGY STAR program.  Important strides have been made, but there’s room to improve.  The agency further estimates that increasing energy efficiency by 10 percent in commercial and industrial space would save tenants $20 billion and prevent greenhouse gas emissions equivalent to the emissions from about 30 million vehicles.  Considering the huge impact that building occupants have on energy consumption, “Tenant Star” can significantly assist the real estate sector’s efforts to build and manage state-of-the art, innovative, and sustainable buildings. 

Congress has already demonstrated its willingness to support this commonsense approach to energy efficiency and environmental consciousness. Not all energy proposals are a source of contention for Democrats and Republicans, and “Tenant Star” demonstrates this reality.  As we move past pipeline politics, members of Congress and the president should carefully think about how the “Tenant Star” proposal can further their shared economic, energy and climate goals.  Now is the time for Congress to send legislation to the president’s desk that would implement this sound policy to boost our nation’s economy and protect our environment.    

DeBoer is president and CEO of The Real Estate Roundtable.