Department of Energy to Oversee Energy Star

March 11, 2026

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Communication will remain vital as the program switches management.

The Environmental Protection Agency and the Department of Energy have released a Memorandum of Agreement that will shift the administration of the Energy Star program to the DOE. The shift comes amid questions about the benchmarking tool’s future under the current administration. The MOA was signed by both parties on March 3.

Energy Star is used in approximately a quarter of U.S. commercial building space. Transitioning the program to the DOE shows the continued use of the benchmarking tool that has become essential in the commercial real estate industry. The shift in administration comes as the program received $33 million in congressional funding through fiscal year 2026 to keep the initiative going. The funding provides short-term continuity, though long-term appropriations remain to be determined.

The signing of the MOA enables the transition of the Energy Star trademark, partnership agreements, systems and databases to the DOE. EPA and DOE have 90 days to finalize a detailed transition plan. Industry groups have emphasized the importance of clear communication during that process to maintain confidence in the program.

In a statement, The Real Estate Roundtable expressed support for the Department of Energy taking the lead role for the program. The group said Energy Star provides value by measuring building performance and supporting capital attraction.

Chris Halfnight, incoming CEO of Urban Green Council, said DOE should reinforce the program’s established role in building performance policy and benchmarking laws. “DOE should lean into Energy Star’s success as the bedrock tool for manufacturers to differentiate high-efficiency products and for building owners to feature high-performance properties, especially for local benchmarking laws,” Halfnight told Commercial Property Executive.

Cliff Majersik, senior advisor at the Institute for Market Transformation, noted that the program’s predictability has helped cement its role in capital markets. “EPA has provided the stability and predictability that investors value. It is essential that this be maintained,” he said.

Where will this shift be felt?

EPA has coordinated with utilities to allow aggregated data from multi-tenant buildings to flow into Portfolio Manager. According to Majersik, multi-tenant buildings that are billed directly by utilities are more likely to see issues. Majersik listed retail, office and multifamily assets as the most likely to experience this.

During the transition, “owners should back up the inputs to and outputs from Portfolio Manager,” Majersik said. “If they encounter new technical problems that might be due to new problems with Portfolio Manager, then they should report them to EPA (for now). IMT is regularly updating our stakeholders regarding the status of Portfolio Manager.”

The DOE has experience in other energy-reducing programs such as the Better Buildings initiative. This initiative aims to reduce energy waste across commercial and industrial sectors. According to the program’s website, participants have achieved cumulative savings of 3.9 quadrillion British thermal units, $24.2 billion in costs and 25 billion gallons of water.