The ENERGY STAR program has been a catalyst for energy efficiency for decades, including as a co-requisite program for Phius certification. It has saved Americans hundreds of billions of dollars in energy costs and serves as a foundation for numerous building certifications (such as Phius), utility incentive programs and federal tax credits.
Unfortunately, recent reports indicate that ENERGY STAR is set to be eliminated in the coming months because of federal budget cuts. In addition, a number of buildings-related energy tax incentives, such as the 25C for existing home upgrades and 45L for energy efficient construction tax credits, are reportedly also at risk of being repealed or severely weakened. We expect this decision to have a wide range of implications for us at Phius and in the building industry as a whole, though there are many unknowns as of this writing.
This blog will explain how we anticipate these changes will impact Phius and what we are doing to prepare, and share resources you can use to take action to protect these critically important programs.
Impact on Phius Certification
First and foremost, there will be no immediate impact to projects pursuing Phius Certification as long as ENERGY STAR certificates are being issued. That said, we are preparing for what the Phius certification program would look like without ENERGY STAR.
Our technical and policy teams are evaluating the best path forward should the ENERGY STAR program cease to exist. We don’t anticipate any of these changes having a significant impact on the Phius certification process or causing major delays in the review and certification process.
We will communicate any changes to the program as soon as decisions are made. Despite these federal policy shifts, we are committed to maintaining the rigorous certification process that makes Phius the leading high-performance building standard in the country.
Important note: Phius cannot issue ENERGY STAR certification.
Taking Action
ENERGY STAR and other federal programs supporting building energy use reduction have been critically important in driving adoption of high-performance building practices, including Phius. Losing these programs would be a step back for the industry, but there is still time to advocate for them. More than 800 members of the RESNET network recently signed a letter to the leadership of the tax-writing Senate Finance Committee and House Ways and Means Committee urging them to preserve the 45L tax credit.
Below are a few resources you can use to advocate for some of the programs at risk of being significantly eroded or shut down.
Moving Forward
The elimination of federal programs such as ENERGY STAR is an obstacle on our path to create a healthier built environment for people and the planet. But by no means is it insurmountable.
Our community is passionate and resolute. We will advocate for these programs until the very end and will adapt to the changing landscape as decisions are finalized.
We look forward to the continued growth of passive building despite the challenges that lie ahead. In the words of our visionary Founder and Co-Executive Director Katrin Klingenberg, “Onward & upward!”