The U.S. General Services Administration (GSA) has awarded Constellation New Energy an Energy Savings Performance Contract (ESPC), focusing on energy efficiency and modernization for five facilities in the National Capital Region. This initiative is a key part of GSA’s broader effort to reduce $450 million in energy costs across its real estate portfolio through the Inflation Reduction Act (IRA).
The contract will upgrade the following federal buildings:
The upgrades include transitioning four buildings to electric-only operations, implementing energy conservation measures, and modernizing building systems to reduce energy use and greenhouse gas emissions.
Backed by $119.8 million in IRA funding, the project is expected to deliver the following benefits:
The initiative also uses American-made, low-carbon materials, such as high-performance windows manufactured in Colorado and North Carolina.
This project supports the Biden Administration’s Federal Sustainability Plan, which targets net-zero emissions across federal buildings by 2045. GSA Administrator Robin Carnahan emphasized the benefits:
“This project demonstrates how President Biden’s Investing in America agenda is helping to lower energy costs for taxpayers, create jobs in communities, and promote a healthier future for all Americans.”
The upgrades will also remove several buildings from GSA’s steam-powered system, reducing reliance on fossil fuels and transitioning to efficient electric energy.
The ESPC model enables GSA to partner with a Department of Energy-qualified service company, which funds the project upfront and ensures cost-effective energy solutions. This approach stretches federal resources while delivering measurable results.
The $3.4 billion allocated to GSA through the IRA is accelerating efforts to reduce operational emissions across federal facilities. These investments are expected to cut emissions by 2.3 million metric tons annually—the equivalent of taking 500,000 gasoline-powered cars off the road.
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