Net-Zero Government Building Projects May Give HVAC, Architects, IoT Technology Partners a Boost

The U.S. government plans to spend $250 million to help federal agencies implement net-zero building projects. Those dollar figures could be a potential win for contractors, architects and technology partners that specialize in Building Management Systems, on-site clean energy generation and sustainable designs.

Indeed, Building Management Systems can span physical security, billing, electrical, IoT (Internet of Things) monitoring, HVAC (heating, ventilation, and air conditioning ) and other types of controls.

Still, many of those contractors may need to navigate emerging government regulations to win the building overhaul contracts. Indeed, nearly 1,400 companies would be required to submit their full greenhouse emissions data to bid for US federal contracts under the Federal Supplier Climate Risks and Resilience Proposed Rule, according to Persefoni research.

Moreover, it's unclear just how far the $250 million will go. Among the factoids to consider: The U.S. federal government has 300,000 buildings, according to Brenda Mallory, White House Council on Environmental Quality. Quick math suggests that's only $833.33 per building. Government officials did not say how many buildings they will initially target for the funding.

Funding Background

The $250 million opportunity -- known as AFFECT (Assisting Federal Facilities with Energy Conservation Technologies)—comes through the U.S. Department of Energy (DOE), and funding from President Biden's Bipartisan Infrastructure Law.

The funding is part of President Biden's larger carbon reduction strategy. In December 2021, Biden issued an executive order reestablishing the federal government as a leader in sustainability, calling for a 65% reduction in greenhouse gas emissions from federal operations by 2030 from 2008 levels, 100% zero-emission vehicle acquisitions by 2035, and a net-zero emission building portfolio by 2045, a White House statement notes.

The AFFECT program is managed by DOE's Federal Energy Management Program (FEMP) and provides funding to federal agencies to help meet energy- and water-related goals by identifying affordable solutions, facilitating public-private partnerships, and leveraging best practices to promote energy leadership, the White House said.

Government Chief Sustainability Officers: What's Next

Next up, the White House Council on Environmental Quality on March 28, 2023 will host a roundtable event for Agency Chief Sustainability Officers (CSOs) to discuss opportunities made available by this funding.