General Services Administration announces historic purchase of carbon-free electricity from Tribal business

August 02, 2024

Purchase means 185 GSA-managed federal buildings in 12 states to run on 100% carbon pollution-free electricity

WASHINGTON – Today, the Biden-Harris Administration announced the government’s first-ever purchase of carbon pollution-free electricity from a Tribal majority-owned business under the Indian Energy Purchase Preference provisions of the Energy Policy Act of 2005. The U.S. General Services Administration’s (GSA) purchase from Seneca Environmental Solutions will enable 185 buildings across 12 states to use 100% clean electricity, delivering on President Biden’s commitment to include Tribal enterprises in the clean energy economy and making progress towards the President’s goal of powering all federal operations with CFE by 2030. 

“This historic award represents a real breakthrough by demonstrating that the government can buy affordable carbon-free electricity in ways that strengthen Tribal nations and provide great value for taxpayers,” said GSA Administrator Robin Carnahan. “Dispelling the myth that buying from Tribal enterprises would come at a premium, this award shows that a clean energy future is all the brighter with partnerships in Indian Country — and demonstrates our commitment to building a clean energy economy that works for everyone. We look forward to building on this progress to power all federal operations with 100% carbon-free electricity by 2030.” 

Established by the Energy Policy Act of 2005, the Indian Energy Purchase Preference (IEPP) allows agencies to give preference to Tribes when buying energy products or byproducts. The Federal Government had made no use of the IEPP, however, before today. After assuming office, President Biden reestablished the White House Council on Native American Affairs and directed it to work with Federal agencies to implement the IEPP. As part of this effort, GSA collaborated with the Department of Energy (DOE) on a pilot program to increase federal agencies’ use of Tribal energy through their purchasing authorities. Today’s procurement is a result of that work and provides a model for future procurements from Tribally-owned energy producing businesses.

“For 20 years the Indian Energy Preference was dormant due to government red tape and bureaucracy. This announcement sets up a new partnership model between Tribal energy businesses and the federal government in achieving our country’s clean energy goals and solving the climate crisis,” said Wahleah Johns, Director of the Office of Indian Energy at the Department of Energy. “I look forward to seeing the Preference used more and Tribes leading the way in clean energy development. And I applaud the interagency collaboration with GSA, DOE’s Federal Energy Management Program, DoD and the White House Council on Native American Affairs that made this possible.”

“A truly exceptional collaboration between DOE and our government partners, this procurement demonstrates the significant impact we can achieve together,” said Mary Sotos, Federal Energy Management Program Director. “This represents a meaningful marker in the successful implementation of the IEPP and is a testament to our collective efforts toward a sustainable and inclusive energy future.”

As a result of GSA’s Energy Attribute Certificates (EACs) purchase, the net annual usage for 185 buildings in 12 states has been matched  with 100% CFE. Collectively, the total electricity load for these federal buildings is 349,108 megawatt-hours, which is equivalent to the power that 32,780 typical homes consume in a year. The purchase also represents a savings of nearly $800,000 compared to the average price that GSA paid for unbundled CFE EACs last year.

GSA will continue to work with the White House, White House Council on Native American Affairs, the Department of Defense (DOD) and DOE to explore potential opportunities to support Tribal energy production through federal agencies’ activities. GSA’s market research and solicitation lessons learned will be shared with DOE’s Department of Indian Energy Working Group, with the intent to expand opportunities across other agencies. This pilot is one of many new CFE procurements being implemented by GSA.

“This is a very exciting moment, when a policy provision that has been waiting to be implemented for almost 20 years is finally becoming a reality,” said Julie Ramey, GSA Tribal Liaison in the Office of the Administrator. “As part of this Administration’s renewed focus on Native policies and programs, GSA was empowered to take on the complexities of implementing this provision. This is a historic milestone that we hope will inspire even more progress across the federal community, including with our partners such as DOE and DoD, to create further opportunities for Tribally-owned businesses.” 

With more than 300,000 buildings and 600,000 vehicles, the U.S. Government is the nation’s largest energy consumer. In December 2021, President Biden issued the Federal Sustainability Plan, which directed the government to achieve net-zero emissions by 2050 by transitioning to zero-emission vehicles, energy efficient buildings, and carbon pollution-free electricity. In particular, the plan directs the government to transition to 100% CFE by 2030, at least half of which will be locally supplied clean energy to meet 24/7 hourly-matched demand. Including this procurement, GSA has procured over 700,000 MWh of CFE since 2022. That increase in annual CFE from this IEPP purchase will help accomplish GSA’s goal of 62% CFE in Fiscal Year 2024 for GSA facilities as part of its long-term strategy to reach 100% CFE by Fiscal Year 2030. 

Additional information about the Indian Energy Purchase Preference can be found on the IEPP webpage.

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About GSA: GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing over $100 billion in products and services via federal contracts, and delivering technology services that serve millions of people across dozens of federal agencies. GSA’s mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.