Newly Ordered Greenhouse Gas Reductions at Federal Facilities Create Market OpportunitiesMarch 2010 – Advisories
Reflecting its increasing emphasis on greenhouse gas (GHG) reduction, the Obama Administration has announced an overall reduction target of 28% for direct GHG emissions from federal facilities and activities and indirect emissions from purchased energy. The federal government is the single largest energy consumer in the U.S.
By early June, federal agencies must submit their proposed reduction targets for GHG emissions from vendors and contractors and from employee commuting and travel. Meeting these targets will require, among other things, significant physical and operational changes for federal facilities, including owned and leased real estate. The federal government owns about 3 billion square feet in about 445,000 separate buildings, and leases another 375 million square feet in about 57,000 buildings.
Efforts are already underway. The General Services Administration, for example, began soliciting bids in December to perform an energy retrofit of its Washington DC headquarters at an estimated cost of $200 to $250 million.
This offers opportunities for building owners, developers, architects, engineers, contractors and other consultants with expertise to help federal agencies achieve these reduction goals. Landlords may also seek to optimize their buildings' energy performance in order to attract federal tenants.
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