GSA Blog

GSA climate and infrastructure investments drive markets, reduce energy costs

Over the past three years, the General Services Administration has invested billions in climate and infrastructure projects through the Bipartisan Infrastructure Law and the Inflation Reduction Act, two key pieces of legislation in the President’s Investing in America agenda. These landmark laws are the largest sustainability and infrastructure investments in U.S. history, and provided nearly $7 billion for GSA to undertake impactful, job-creating infrastructure projects that bolster American innovation, economic growth and national security.

From energy saving improvements at the Ronald Reagan Building and International Trade Center in Washington, DC, to construction of a brand new commercial border station in Douglas, Arizona, GSA’s investments through the Investing in America agenda are helping build stronger, healthier and more prosperous communities in 49 states from coast to coast. Combined, these investments are estimated to support 15,500 jobs per year across the U.S. plus $6 billion in labor income, $8.8 billion in GDP, and $1.8 billion in total tax revenue.

Driving the market

Through the Investing in America agenda, GSA has leveraged the immense buying power of the federal government to encourage American innovation. For example, by purchasing  construction materials that are competitive both in terms of high performance and environmental impact, the Inflation Reduction Act (IRA) is catalyzing the growth of clean industries and jobs. When GSA demands cleaner, more sustainable products, it drives new markets, as we’ve seen in the response from American industry.

Our low-embodied carbon (LEC) construction material procurement program has spurred the development of 23,800 new Environmental Product Declarations (EPDs) in GSA’s IRA LEC product categories. Similar to a nutrition label, EPDs provide transparency into the environmental impacts involved in the manufacturing process – and GSA’s buying power is encouraging more companies to develop them.

Since the launch of GSA’s IRA Buy Clean program in May 2023, there has been a steady increase in the number of U.S.-made products with EPDs and subsequent reductions in the amount of associated greenhouse gas emissions. For example:

• There have been 23,800 new EPDs published for GSA’s IRA material subcategories since the May 2023 launch of GSA’s IRA LEC program, and 151 vendors published their first-ever EPDs. There are now 383 unique North American vendors with published EPDs for GSA’s glass, steel, concrete, and/or asphalt subcategories.
• The number of EPDs for concrete have increased by more than 18,000 (19%).
• The number of flat glass manufacturers that meet GSA’s most-stringent LEC limits has tripled, increasing the number of vendors that can participate in federal procurements.

In addition to the embodied carbon avoidance from material selections, GSA anticipates that its IRA investments will save energy and reduce operational emissions by more than 2.3 million metric tons. That is the equivalent of taking more than 500,000 gas-powered vehicles off the road for a year.

At the Moss U.S. Courthouse in Salt Lake City, a $155 million renovation project, including $51 million in IRA funds, will replace aging infrastructure with innovative, efficient mechanical equipment and clean construction materials, while addressing seismic and structural deficiencies to preserve this 118-year old historic building. This project will accomplish many positive goals at once: the deep energy retrofit will reduce annual energy use by 52%; the LEC materials will help reduce greenhouse gas emissions by 57%; the chilled beam technology, high-efficiency air handling units, electric boilers and water heaters will reduce energy consumption while increasing comfort; and the entire project will meet the Administration’s Federal Building Performance Standard by eliminating on-site fossil fuel usage.

Strengthening supply chains, securing our borders

The Bipartisan Infrastructure Law included $3.4 billion for GSA to complete over 30 major modernization, construction and paving projects along our northern and southern borders. With lane expansions and the integration of state-of-the-art contraband detection technologies to help secure borders, these modernization projects support commerce and trade, enhance safety and security, and create good-paying jobs in local communities – all while boosting the efficiency, resilience and sustainability of these facilities. These investments will support an estimated 6,000 jobs per year across the U.S., plus $3.2 billion in labor income and add $4.5 billion in GDP.

During the Biden-Harris Administration, GSA awarded contracts to large, small and Native-owned businesses for projects in Arizona, California, North Dakota, Texas and Washington, totaling over $1.2 billion at 78 locations.

In Douglas, Arizona, GSA is constructing a new commercial port that will increase capacity, enhance security, and facilitate lawful trade and travel between the U.S. and Mexico. At the current Castro port in Douglas, both inbound and outbound trucks maneuver within the same undersized commercial vehicle inspection area, which slows traffic and poses safety hazards. Once complete, the project will allow the federal inspection agencies to relocate commercial operations from the existing port to the new port. This change will quadruple the number of commercial vehicle inspection lanes and triple the number of commercial vehicle inspection docks.

Driving down energy costs

GSA is using $975 million in IRA funding to upgrade federal buildings across the country with emerging and sustainable technologies. By leveraging private sector funds through energy savings performance contracts (ESPC) with IRA funding, GSA expects to more than double the $975 million investment, deploying $1.9 billion in private and public funding to support high-efficiency, sustainable technologies – significantly reducing energy costs.

These IRA funds for emerging and sustainable technologies will impact about 40 million square feet — about 20% — of GSA’s federal building portfolio and avoid $467 million in energy costs for American taxpayers over the next two decades.

Through these projects, 28 buildings will achieve net zero emissions and 100 more buildings will become all-electric.

An $88 million investment, partially funded by IRA appropriations, will make 18 federal buildings in the Denver area more sustainable as part of President Biden’s Investing in America agenda. Through an ESPC, GSA will upgrade building infrastructure and install new technologies that will reduce energy consumption and costs, while also cutting emissions and creating local jobs.

At the Ronald Reagan building in Washington, D.C., an ESPC will transition the building from fossil-fuel-based steam heat to electric through  pump technology cutting energy use by almost 50% and greenhouse gas emissions by over 50%. The full project is expected to save over $6.2 million annually in utility costs.

Big impacts, big results

These are just a few examples of GSA’s work to make federal buildings more efficient, sustainable, and resilient. Other investments enabled by GSA’s BIL and IRA programs include:

• Converting 100 buildings to all-electric HVAC and water heating systems to help meet the Federal Building Performance Standard by eliminating on-site fossil fuel usage.
• Investing $80 million into smart building technologies that increase efficiency, reduce costs, enhance comfort, and decrease emissions across an estimated 560 federal buildings.
• Investing an announced $23.8 million for 13 projects in 10 states through GSA’s Good Neighbor Program to improve areas around federal facilities to better serve the communities where they’re located.
• Investing in America projects planned and underway in 49 states including Tennessee, Michigan, Montana, Pennsylvania, Utah, Missouri, North Carolina, New York, Oklahoma, Ohio, Texas and Louisiana plus Washington, DC, and Puerto Rico.    

These projects demonstrate GSA’s ability to deliver on major investments and our role in helping to grow the American economy.  From rebuilding our nation’s infrastructure and onshoring manufacturing, to creating an innovation boom and accelerating the clean-energy economy, these GSA investments are a triple win for increasing American jobs, for saving money for taxpayers and for creating healthier communities.