Blog

Dec 21, 2023

GSA Administrator Visits Arizona to Announce First Inflation Reduction Act Projects at Federal Facilities

This is archived information. It may contain outdated contact names,

This is archived information. It may contain outdated contact names, telephone numbers, Web links, or other information. For up-to-date information visit GSA.gov pages by topic or contact our Office of Public Affairs at [email protected]. For a list of public affairs officers by beat, visit the GSA Newsroom.

Capital projects and retrofits aim to spur emerging technologies and boost demand for low-carbon construction materials

SAN LUIS, AZ – The U.S. General Services Administration today announced more than $300 million in construction and renovation projects funded through the Inflation Reduction Act, which President Biden signed in August. This first set of projects aims to catalyze clean energy innovation and spur domestic clean manufacturing by incorporating emerging technologies and low-carbon materials into construction and renovation projects at federal facilities across America. The funds, the first of $3.4 billion in GSA investments, will also accelerate efforts to achieve President Biden's goal of a net-zero emissions federal building portfolio by 2045.

Administrator Robin Carnahan announced the projects during a visit to the San Luis I Land Port of Entry in Arizona, which will undergo a modernization and expansion with funding from both the Inflation Reduction Act and the Bipartisan Infrastructure Law. The former will provide approximately $100 million, allowing the project to plan for LEED Platinum certification and incorporate low-embodied carbon asphalt, concrete and steel, as well as emerging technologies and other measures to improve efficiency and reduce operational emissions. The project will improve traffic flow, increase operational security, and help agencies better address risks, combat drug trafficking, and more.

"The Inflation Reduction Act gives us a historic opportunity to supercharge GSA's efforts to spur clean energy innovation and boost demand for cleaner, more sustainable construction materials manufactured right here in the United States," said GSA Administrator Robin Carnahan. "These projects will create good jobs in communities and put us another step closer to turning federal facilities in San Luis and across the country into high-tech, high-efficiency models of clean energy innovation."

Also today, Administrator Carnahan visited Solterra Materials LLC, in Buckeye, Ariz., which supplied environmentally-preferable asphalt for GSA's first completed Bipartisan Infrastructure Law project in June at another LPOE in Lukeville, Ariz. The San Luis and Lukeville projects are aligned with the Biden-Harris Administration's Buy Clean Initiative, which promotes American-made construction materials with lighter environmental footprints.

"Thanks to President Biden's Inflation Reduction Act, we’re moving forward on the clean, electrified federal buildings of tomorrow," said White House Federal Chief Sustainability Officer Andrew Mayock. "As our country's largest energy consumer, taking bold action to modernize the way we build, buy, and manage federal operations creates good paying jobs in places that need them and helps us reach our nation's climate goals."

"I was proud to help secure this $100 million investment for San Luis Land Port of Entry while shaping the Inflation Reduction law, building on the historic investments in Ports of Entry included in the Bipartisan Infrastructure Law, to strengthen Arizona's border security and keep our communities safe and secure," said Senator Kyrsten Sinema.

"One of my top priorities since being sworn into the U.S. Senate has been to secure the funding necessary to rebuild the San Luis I Port of Entry, and upgrade critical port of entry and border security infrastructure throughout Arizona. These investments will boost our economy, strengthen our supply chains, create jobs, and help stop the flow of illegal drugs. That's why I worked with Republicans and Democrats to secure funding for our land Ports of Entry in the Bipartisan Infrastructure law, and worked with Administrator Carnahan to ensure all aspects of the San Luis I project were completed, thanks to funding from the Inflation Reduction Act. Now, our border personnel will be better equipped to expedite cross-border travel and trade while stopping illegal cargo," said Senator Mark Kelly.

These first Inflation Reduction Act projects were selected based on their potential to maximize the use of low-embodied carbon asphalt, concrete, glass and steel -- as well as emerging and sustainable technologies -- in previously-approved construction projects. GSA estimates that this first round of projects will help reduce greenhouse gas emissions by about 120,000 metric tons while reducing energy costs by $35 million over the next 20 years.

In addition to the San Luis Land Port of Entry project above, these projects are slated to receive Inflation Reduction Act funding as part of this initial round:

GSA also plans to use Inflation Reduction Act funding for two investments totaling about $18 million for Energy Savings Performance Contracts (ESPCs) that support deep energy retrofits for several federal buildings. These investments will leverage private sector funding to catalyze a total investment of about $38 million, and are estimated to save taxpayers about $55 million over their performance periods.

Overall, the Inflation Reduction Act provides GSA with $2.15 billion for low-embodied carbon materials for construction projects; $975 million to support emerging and sustainable technologies; and $250 million for measures to convert federal facilities into High Performance Green Buildings.

GSA estimates that the $3.4 billion it will invest 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. In total, Inflation Reduction Act investments from GSA are expected to help drive an estimated avoidance of more than 2.5 million metric tons of emissions and $720 million in cost avoidance over the next 20 years.

To read more about GSA and the Inflation Reduction Act visit: www.gsa.gov/InflationReductionAct

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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 approximately $75 billion in annual 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.