ENERGY STAR Portfolio Manager May Be Phased Out: What CRE Teams Should Do Now

AUTHOR: CARLI SCHOENLEBER
REVIEWERS: KELSEY CECCARELLI, CHRIS WEI
JUNE 10, 2025

Highlights 

  • ENERGY STAR® at risk: The Trump administration’s FY-2026 budget proposes cutting the U.S. Environmental Protection Agency (EPA) program that manages ENERGY STAR Portfolio Manager®; it could be phased out as early as Oct 1, 2025. 

  • Industry pushback is growing: Organizations like Nareit®, the American Council for an Energy-Efficient Economy (ACEEE), and the Institute for Market Transformation® (IMT) are advocating to preserve ENERGY STAR. 

  • Act now to protect your data: Commercial real estate (CRE) firms should prepare by backing up data and assessing alternative data tracking platforms. 


Introduction

For over two decades, ENERGY STAR Portfolio Manager has been a foundational tool for energy, water, and emissions benchmarking in the CRE industry. CRE professionals rely on it to track sustainability performance, comply with local regulations, and support green building certifications like LEED®, IREM®, and ENERGY STAR.

However, this landscape may be shifting. In May 2025, the Trump administration proposed eliminating the EPA’s Atmospheric Protection Program — which oversees Portfolio Manager — as part of its FY-2026 budget. According to internal communications, the program’s director, Paul Gunning, informed EPA staff that voluntary climate programs not explicitly required by law, including ENERGY STAR, would be “de-prioritized and eliminated.”

In response, a group of 22 senators argued in a May 20 letter that ENERGY STAR is protected under federal statute, and the executive branch does not have unilateral authority to terminate the program. This means the program’s fate is expected to be decided through the Congressional budget process, which is currently ongoing.

During Donald Trump’s first term, a similar attempt to defund ENERGY STAR was met with bipartisan opposition and ultimately blocked. Still, if changes move forward this time, according to the administration’s proposal, Portfolio Manager could be reduced or discontinued as early as October 1, 2025, the start of the next fiscal year for the federal government.

Given this uncertainty, CRE organizations should begin preparing for potential disruptions and consider how to adapt data collection, compliance, and certification strategies if the tool is phased out.


What Could Be Phased Out? 

The potential changes could affect all ENERGY STAR programs overseen by the EPA, including: 

  • ENERGY STAR Portfolio Manager: The free online benchmarking platform used by over 330,000 commercial buildings (25% total U.S. floorspace) to track and compare energy, water, and waste performance.  

  • ENERGY STAR scores and certification for commercial buildings: The 1–100 energy performance score and national certification that recognizes buildings performing in the top 25% for energy efficiency across the United States.  

  • ENERGY STAR appliance and equipment certification: The familiar blue label used to designate energy-efficient products — including HVAC systems, refrigerators, lighting, and office equipment. 


Why This Matters to CRE 

ENERGY STAR Portfolio Manager has served as the industry standard for energy tracking in U.S. CRE. Its retirement could disrupt many core aspects of energy performance management for buildings: 

  • Energy Benchmarking: Without the 1–100 score, evaluating how buildings compare to peers becomes more challenging on a national scale.  

  • Compliance: Numerous cities and states require benchmarking via Portfolio Manager; these ordinances may need updates, and reporting workflows will require reconfiguration. 

  • Green Building Certifications: Programs like LEED Arc refer to Portfolio Manager data through an API and ENERGY STAR certification as part of their requirements. 

  • Investor ESG reporting: Portfolio-wide emissions and efficiency metrics often derive directly from Portfolio Manager data. Reporting tools all have APIs that integrate with Portfolio Manager to pull data in for quality checking before ESG reporting. 

For organizations committed to performance tracking, compliance, and transparency, this change necessitates careful planning. 


What CRE Companies Should Do Now 

While this development introduces uncertainty, it is also an opportunity to strengthen data systems and improve long-term resilience. Here are practical steps for real estate owners and operators: 

1. Safeguard Your Data 

  • Export all Portfolio Manager data across your portfolio, including energy, water, and emissions metrics, property details, and ENERGY STAR scores. The Verdani Technical Services team has already enacted a policy to do this once a week for all client portfolios. 

  • Download PDFs of all Statements of Energy Performance, certification documentation, and score histories. 

  • Ensure that backups from API connections or third-party tools are preserved and stored securely. Talk to the account representative at your ESG dashboard tool and create a contingency plan. They likely also have systems in place to store backup data.  

2. Map Out Your Data Ecosystem 

  • Identify utilities or vendors that sync data directly to Portfolio Manager.  

  • Clarify how utility data is collected, validated, and stored internally, independent of the platform. 

  • Create a snapshot of current building performance to serve as a benchmark baseline if the ENERGY STAR score becomes unavailable. 

3. Review Your Compliance Obligations 

  • Check if local city or state laws require Portfolio Manager-based reporting. 

  • Monitor communications from jurisdictions for updates or alternative reporting methods if Portfolio Manager becomes unavailable. 

  • Plan for temporary workarounds (e.g., spreadsheets) and coordinate internally on reporting responsibilities. 

4. Evaluate Alternative Platforms 

Several tools can help replace or supplement Portfolio Manager: 

  • ESG Data Platforms – One system for ESG data aggregation, management, analysis, reporting, and benchmarking: Deepki®, Goby (Conservice ESG®), Measurabl®, Scaler,  WatchWire® 

  • Utility Data Automation – Automate utility data collection and enable performance insights: Bright Power®, Measurabl, Watchwire 

  • Utility Bill Tracking and Auditing – Track utility bills, manage costs, and support internal measurement and verification: EnergyCAP®, Schneider Electric® 

Selecting the right solution depends on portfolio size, internal workflows, and reporting needs.

5. Engage Your Stakeholders 

  • Inform internal sustainability, engineering, and finance teams about potential changes. 

  • Review references to ENERGY STAR in sustainability goals, green lease clauses, or investor materials, and plan to update language if necessary. 

  • Communicate to stakeholders that, despite tool changes, your commitment to performance and transparency remains steadfast. 


Want to Help Protect ENERGY STAR? 

ENERGY STAR has delivered an estimated $500 billion in energy savings since its launch in 1992, with bipartisan support across every administration — until now.  

Real estate professionals can voice support for continuing the program by: 

  • Speaking out through your organization: Companies and industry groups are publicly supporting ENERGY STAR and advocating for its continuation. In April, Nareit joined several CRE associations in a letter to the EPA emphasizing the program’s value. See additional statements from ACEEE and IMT calling for its preservation.


Verdani is Here to Keep Your Building Performance Programs on Track 

The potential loss of ENERGY STAR Portfolio Manager highlights the importance of owning your data, understanding your systems, and preparing flexible solutions. Rather than a setback, this moment offers a chance to strengthen sustainability data infrastructure for the long term. 

Verdani is supporting real estate portfolios through this transition by helping teams back up critical data, evaluate alternative platforms, and adapt internal systems with confidence. More broadly, our Technical Services team brings deep expertise in advanced data tracking, building ordinance compliance, portfolio-wide energy use reduction strategies, and investor-grade reporting aligned with frameworks like GRESB®, CDP®, and the Principles for Responsible Investment®.  

As the sustainability landscape evolves, Verdani remains committed to helping organizations maintain data continuity, streamline reporting, and reinforce the foundation of high-performing, future-ready sustainability programs.


Authors and Reviewers

Carli SchoenlebeR

SENIOR COMMUNICATIONS MANAGER, CONTENT AND ENGAGEMENT SPECIALIST

Carli is a Senior Communications Manager specializing in Content and Engagement for Verdani Partners, leading thought leadership articles and the Engagement Committee. She has a decade of experience in the sustainability field, working across diverse roles in environmental communication research, environmental planning, marketing, and wetland science. She holds a B.S. in Environmental Science, Policy, and Management from the University of Minnesota and a M.S. in Forest Ecosystems and Society from Oregon State University.

KELSEY Ceccarelli

SENIOR DIRECTOR OF ENGINEERING

Kelsey serves as the co-lead of Verdani Technical Services Department, which completes ASHRAE Energy Audits and other building-level services. Kelsey manages ESG data for four commercial real estate portfolios and acts as a strategic advisor on others. Through tracking buildings’ progress toward sustainability goals, she enjoys seeing the true impact of efficiency in the built environment.

CHRIS WEI

VP OF ENGINEERING

Chris is the Vice President of Engineering at Verdani Partners, overseeing technical projects including ASHRAE energy audits, ENERGY STAR certifications, and building compliance initiatives. A licensed professional engineer in California with over a decade of experience in sustainability and energy management, he advises on technical sustainability implementation across Verdani’s client portfolios and serves as Chair of Verdani’s AI Committee. He holds an M.S. in Energy Engineering from the University of Hong Kong and a B.S. in Mechanical Engineering from the University of California, Davis.


Copyright © 2025 Verdani LLC. All rights reserved. The information contained within this publication was developed using Verdani’s general professional judgment. This publication was prepared without reference to any specific property or scenario and is not intended to substitute for the professional advice of an attorney, engineer, or other climate change professional. Content and data subject to change. Similar outcomes are not guaranteed based on prior results.  Neither Verdani LLC nor its employees or agents can be held responsible for the use or misuse of the information contained herein, and Verdani LLC hereby disclaims any liability for damages arising from the use of this information, including without limitation, direct, indirect, or consequential damages including personal injury, property loss, loss of revenue, loss of opportunity, or other loss. 

Verdani Partners has over 25 years of expertise and manages nearly two billion square feet of real estate, delivering proven strategies that help firms lead in sustainability and outperform benchmarks. We help our clients turn sustainability commitments into action through sustainability planning, energy management, decarbonization, compliance, and strategic communications. Partner with us to drive real impact and lasting value.
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