Tuesday, July 16, 2024

GSA and DOD Announce Plans for Major Carbon Pollution-Free Electricity Procurement for Federal Agencies in Several Mid-Atlantic and Midwest States and the District of Columbia

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GSA and DOD Announce Plans for Major Carbon Pollution-Free Electricity Procurement for Federal Agencies in Several Mid-Atlantic and Midwest States and the District of Columbia
July 15, 2024

The U.S. General Services Administration (GSA) and the Department of Defense (DoD) are seeking contractors that can provide federal facilities in several mid-Atlantic and Midwest states with 100% carbon pollution-free electricity (CFE) by 2030. These two parallel clean electricity procurements, slated for award later this year, would together constitute one of the federal government's largest-ever clean electricity purchases.

The GSA Synopsis and DoD Synopsis published today demonstrate each agency's purchasing requirements and reflect their dedication to clean energy as a powerful mission-enabler. These procurements are a key milestone in the Biden-Harris Administration's approach to procuring CFE in retail choice markets; with nearly a quarter of all federal government operational needs, and located within these markets, competitive retail CFE purchases are crucial to meeting President Biden's goal to power the federal government with 100% CFE by 2030.

"We're working across government to achieve the Biden-Harris administration's clean energy goals in a way that delivers good jobs, great value for taxpayers, and strengthens healthy, prosperous communities across the country," said GSA Administrator Robin Carnahan. "GSA is one of the largest buyers of energy, so we're a steady customer prepared to make long-term investments while using the government's buying power to spur demand for clean, carbon pollution-free electricity and distribution methods."

"The clean energy transition is a national security imperative. DoD, in partnership with all Federal agencies, is committed to doing its part to accelerate this transition as we collectively strive to meet our clean energy goals," said Brendan Owens, Assistant Secretary of Defense for Energy, Installations, and Environment. "This procurement sets DoD on a path that will strengthen the resilience and reliability of the energy needed to carry out the critical national security missions we execute in the PJM service territory every day."

"President Biden directed the federal government to use its procurement power, as the nation's largest energy consumer, to support the growth of America's clean energy industry and clean energy jobs and to do so in ways that are good for our taxpayers and our communities," said Andrew Mayock, Federal Chief Sustainability Officer in the White House Council on Environmental Quality. "Through our federal demand for locally made clean electricity, we will spur new clean electricity production, which is good for our climate, our economy, and our national security."

These procurements seek contractors who can provide CFE to federal civilian and defense agencies located in the territory where PJM Interconnection is the regional transmission operator. In conducting market research, GSA and DoD previously issued a joint Request for Information (RFI) and hosted a combined GSA/DoD Industry Day. The agencies considered the input they received in response to the RFI and the information discussed at the Industry Day to shape their respective acquisition strategies and the solicitations.

PJM coordinates electricity transmission through an area of about 65 million people that includes all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia. Through these procurements, GSA and DoD anticipate seeking approximately 1.1 million and 2.4 million megawatt hours (MWh), respectively, of CFE and associated Energy Attribute Certificates per year, on average.

With more than 300,000 buildings and 600,000 vehicles, the federal government is the nation's largest energy consumer. The Federal Sustainability Plan aims to achieve net-zero emissions by 2050 by transitioning to zero-emission vehicles, energy efficient buildings, and CFE. In particular, the government seeks 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. Over the past three years, the government has signed agreements to provide Federal facilities in 16 states with 100% CFE by 2030, which will increase the U.S. Government's reliance on clean energy en route to 100% by 2030.

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