Energy is front and center on the national agenda this year as the presidential transition takes place before a backdrop of widespread economic displacement and national security concerns that have been exacerbated by shortcomings in national energy policy.
The Obama administration is backing the inclusion of $20 to $25 billion worth of energy-related tax breaks, including incentives for building energy efficiency, as part of the anticipated economic stimulus package. The Obama team intends to provide Congress with a broad outline of their energy priorities and allow legislators to flesh out the content.
The lion’ s share of tax incentives is expected to focus on energy production and transmission, such as renewable fuel technology and smart grid development, but the President also has voiced support for building efficiency incentives. Although primarily focused on energy improvements in federal buildings, there may be opportunities for private building owners as well. Such incentives may be short-lived, however, as Obama has endorsed a plan to significantly increase building efficiency and achieve carbon neutrality by 2030. These goals have long been coupled with real estate industry-opposed proposals to dramatically tighten building energy codes by as much as 50 percent. NAA/NMHC succeeded in defeating these measures in the last Congress.
However, the future of energy-related legislation on Capitol Hill remains unclear. Congress is divided as to whether energy incentives belong in the upcoming stimulus or in a separate energy bill that would be introduced later in the term. Additionally, Congressional leaders have identified cap and trade as a top priority, but current economic conditions and Congress’ s focus on broader energy legislation is expected to significantly delay consideration of climate change issues.