The Inflation Reduction Act will lower costs for families, reduce the deficit, and combat the climate crisis — marking the most significant legislative step forward to cut carbon pollution in history. For GSA, it will make our federal buildings more sustainable, higher performing, and more cost-efficient through next generation technologies and low embodied carbon materials — accelerating efforts to achieve a net zero federal footprint, catalyzing American innovation and saving taxpayers millions in energy costs.
GSA has committed that no funds provided with the Inflation Reduction Act will be used to install fossil fuel-based equipment, an important step to ensure every dollar of this funding will go towards meeting the Administration’s goal of a net-zero emissions buildings portfolio by 2045.
The Inflation Reduction Act provides $3.4 billion
for the GSA Public Buildings Service.
$2.15 billion for low embodied carbon materials in construction and renovation projects.
$975 million for GSA to support emerging and sustainable technologies.
$250 million to turn even more GSA facilities into high-performance green buildings and accelerate efforts to achieve a net-zero federal footprint.
Inflation Reduction Act benefits
In total, Inflation Reduction Act investments from GSA are expected to help drive an estimated avoidance of more than 2.3 million metric tons of emissions. That is the equivalent of taking more than 500,000 gas-powered vehicles off the road for a year.
These projects will create good-paying jobs in communities across the country. GSA estimates that the $3.4 billion it will invest through the Inflation Reduction Act will create over 9,500 average annual economy-wide jobs across the length of the projects, support $2.8 billion in labor income, and generate nearly $1 billion in tax revenue for federal, state and local governments.
By increasing demand for low-carbon materials and emerging and sustainable technology here in the U.S., these investments will strengthen America’s domestic industrial base and catalyze innovation and job growth in homegrown industries that produce next-generation materials, products, and equipment.
By making federal buildings more energy-efficient, these projects will reduce operating costs and save money for taxpayers over time. They are estimated to support $710 million in cost avoidance over the next 20 years, building on the fact that GSA’s Public Buildings Service has avoided over $638 million dollars in energy costs alone since 2008 through energy efficiency improvements and other investments.
For further reading
What is embodied carbon? Embodied carbon refers to the greenhouse gas (GHG) emissions associated with the production, use, and disposal of construction materials.
Buildings are a significant contributor to carbon emissions, with building operation comprising 28% of total annual greenhouse gas emissions, and building materials and construction comprising another 10%.