GSA Awards 2 Multimillion-Dollar Contracts for New Energy Conservation Measures at Historic Federal Buildings

The U.S. General Services Administration (GSA) recently awarded Energy Savings Performance Contracts to Ameresco and CEG Solutions, LLC for energy savings and conservation measures at the Denver Federal Center and energy and water upgrades in multiple GSA facilities in the National Capital Region, respectively.

The awards leverage a total of $256,645,892 in Inflation Reduction Act funding to enable deep energy retrofits through energy conservation measures, building electrification and American-made low-embodied carbon materials.

The project at the Denver Federal Center, home to the largest concentration of federal agencies outside of Washington, will cut grid-purchased energy use by approximately 51% and water usage by approximately 10%. This will result in Year One cost savings of more than $2 million stemming from electricity savings of 24 million kWh and natural gas savings of 85,000 MMBtu. The project also will modernize energy infrastructure at the Federal Center, reduce lifecycle operating costs and mitigate risk associated with future fossil-fuel price volatility.

The contract also includes a centralized geothermal heat pump system and a solar photovoltaic system to supply year-round heating, cooling and electrical power for the 623-acre Denver Federal Center. These systems, along with new windows and other energy conservation measures, will eliminate approximately 50 percent of fossil fuel consumption at the Federal Center and allow for self-generated solar photovoltaic to electrify approximately half of the campus.

“Colorado is uniquely positioned to benefit from [the Inflation Reduction Act] and lead the transition to a clean energy economy,” said Senator Michael Bennet in a statement. “I’m glad that this funding will help conserve energy and reduce pollution from the Denver Federal Center."

The facilities covered by the National Capital Region contract include the Markey National Courts Building, Dolley Madison House, Cosmos Club, Tayloe House, 601 4th Street NW, The National Building Museum (Pension Building), Sidney Yates Federal Building (Auditors Building), Lyndon B Johnson Federal Building, Mary E. Switzer Federal Building and the U.S. Tax Court Building. These projects will modernize building systems, improve energy efficiency, cut greenhouse gas emissions and convert nine of the buildings to operate exclusively on electric power.

All these federally-owned buildings are completely dependent upon the 90-year-old GSA-operated Heating Operations and Transmission District steam plant for their space heating. This project will increase each building’s resiliency and eliminate each building’s dependence on the heating plant. 

Project goals are to increase operational efficiency and resiliency, upgrade and improve building conditions, address long-term needs, and improve infrastructure. Other notable energy conservation measures to be implemented include upgrades to chillers, lighting and controls, building automation systems, building envelopes, domestic water systems, and replacement of transformers. The project will generate an estimated annual energy savings of 66,920 MMBtu, equivalent to the energy usage of 1,182 homes, with a cost savings of over $4 million, and an estimated annual water savings of 2,666 kGal.

An Energy Savings Performance Contract is an agreement between a federal agency and a U.S. Department of Energy-qualified energy service company. The service company conducts a comprehensive energy audit of federal facilities and identifies improvements to save energy. In consultation with the federal agency, the service company designs and constructs a project that meets the agency’s needs and arranges the necessary funding. Energy Savings Performance Contracts facilitate partnerships with the private sector to help stretch appropriations further, and deliver more with the available resources.

“These investments are a prime example of how Inflation Reduction Act investments get us a triple-win: creating good jobs, saving taxpayer dollars through energy efficiency, and ensuring a healthier, brighter future for our communities and our kids,” said GSA administrator Robin Carnahan in a statement. “We look forward to working with industry and other stakeholders as we maximize the impact of these investments.”

The Inflation Reduction Act includes $3.4 billion for GSA to build, modernize and maintain more sustainable and cost-efficient high-performance facilities that utilize low-embodied carbon materials. GSA’s Inflation Reduction Act projects will implement new technologies and accelerate GSA’s efforts in achieving a net-zero emissions federal building portfolio by 2045. Through these investments, GSA estimates that it will reduce operational carbon emissions by 2.3 million metric tons, the same amount that 500,000 gasoline-powered passenger vehicles produce each year.

For more information about GSA’s Inflation Reduction Act projects, visit GSA’s Inflation Reduction Act webpage.