Harnessing Federal Funding For Energy Performance Technology: A Strategic Imperative For Facility Efficiency

Recent investments into emerging digital energy solutions by the U.S. DOE and GSA are set to revolutionize building efficiency and drive substantial operational and environmental benefits.

By Tyler Haak

The World Economic Forum describes buildings as “key to the fight against climate change”, as buildings are responsible for 37% of total carbon emissions globally. Recognizing the need for further progress, the U.S. General Services Administration (GSA) and the Department of Energy (DOE) are making a big push to improve energy efficiency in federal buildings by investing heavily in new digital energy solutions. Energy efficiency upgrades have cut emissions by 11.4% in commercial buildings since 2005, and the GSA’s Green Proving Ground (GPG) program will invest $9.6 million into further integrating and assessing innovative technologies aimed at achieving net-zero emissions for federal buildings. This investment underscores a key industry trend that facility executives must understand; leveraging contemporary energy efficient digital solutions to drive cost-effective sustainability in their operations.

The Incentive Factor For Buildings To Decarbonize

According to the GSA, the GPG program has over the last 13 years “evaluated 107 technologies, 23 of which have been deployed across more than a third of GSA’s federally owned portfolio. Each year, these already-deployed GPG technologies are avoiding 116,000 tons of carbon dioxide and savings of $28 million.”

This track record highlights the tangible benefits of adopting advanced technologies and demonstrates how federal investment can drive widespread adoption of effective solutions.

digital energy solutions, federal buildings, Department of Energy HQ
The U.S. Department of Energy headquarters facility in Washington, DC. (Photo: DOE)

The new $9.6 million GPG allocation represents a strategic investment in future operational efficiency across several critical areas: building envelopes, healthy and resilient building materials, HVAC systems, and on-site renewables. These areas collectively address significant components of a building’s energy profile and operational carbon footprint and having consistent funding for them is crucial for maintaining momentum in the pursuit of building decarbonization.

By incorporating ASHRAE Guideline 36, building owners and facility managers can qualify for funding by better achieving the kind of significant operational efficiencies that the GSA’s investments aim to support.

ASHRAE Guideline 36 plays a pivotal role in this context, providing a comprehensive framework for implementing the kind of energy-efficient technologies that the GSA and DOE are investing in. Despite its proven potential to produce direct energy savings with 40% in credits in compliant buildings, ASHRAE Guideline 36 is still underutilized, appearing in less than 10% of new building specifications. By incorporating ASHRAE Guideline 36, building owners and facility managers can qualify for funding by better achieving the kind of significant operational efficiencies that the GSA’s investments aim to support.

Leveraging these funding opportunities can provide a competitive edge for facility executives by translating into immediate operational benefits. For example, advanced HVAC systems that use ASHRAE Guideline 36 and on-site renewable solutions can lead to significant cost savings and energy efficiency improvements. By adopting these technologies early, facility managers can realize operational savings sooner and contribute to broader sustainability goals, including the Administration’s objective of a net-zero emissions federal building portfolio by 2045.

The Role Of Digital Energy Solutions

According to the IEA, the buildings sector consumed about 1% more energy than the year before in 2022. The technologies under evaluation by the GPG are prime examples of how to change that trajectory by reducing energy consumption and improving efficiency. The rise of digital energy solutions is the cornerstone of modern energy performance management.

Facility managers can substantially reduce energy consumption and operational costs by deploying digital solutions that optimize energy use, manage HVAC systems efficiently, and incorporate renewable energy sources.

digital energy solutions
(Photo: Adobe Stock/ khwanchai)

To effectively decarbonize buildings, consider following this three-step approach:

  • Strategize: Start by conducting a comprehensive assessment of the commercial real estate portfolio, focusing on key areas such as building envelopes, HVAC systems, and lighting. Identify opportunities for improvement, such as upgrading insulation, installing high-performance windows, and implementing energy-efficient lighting solutions. Develop a plan, guided by ASHRAE Guideline 36, that includes these upgrades and integrates advanced HVAC systems and renewable energy sources. Set measurable targets for each area to track progress and ensure the strategy addresses the most impactful changes.
  • Digitize: Focus on creating a centralized system to collect and analyze data on energy use and resource consumption across the building portfolio. This approach isn’t about just keeping tabs — it provides a clear, actionable picture of how energy-efficiency upgrades like new insulation and smart HVAC systems are performing. Tracking metrics such as energy savings and assessing how well renewable energy sources are contributing to goals helps inform important retrofit-focused decisions. Embracing digital tools and smart controls further empowers data-driven decisions that can be adjusted based on real-time performance insights. Digitization is where energy efficiency efforts can be truly elevated to the next level.
  • Decarbonize: Implement the planned upgrades across the portfolio, focusing on scalable solutions like improved building envelopes and advanced HVAC systems. Integrating renewable energy sources, like solar panels, can further decrease reliance on traditional energy and reduce overall operational costs. Building operators can use the insights from digital tools to optimize the performance of these systems and ensure they are delivering the expected energy savings. Through regular review, operators can refine the approach based on ongoing data analysis and market advancements to continue reducing their carbon footprint and achieving long-term sustainability goals.

The Incentive Factor For Buildings To Decarbonize

These technologies provide actionable insights that help facility managers make informed decisions, reduce energy consumption, and enhance building performance. By embracing digital energy solutions and leveraging available funding, facility managers can substantially improve building performance and contribute to broader environmental goals. As the evaluation results from the GSA and DOE’s investment become available, they will offer valuable insights for future technology adoption, further supporting the goal of creating more efficient and sustainable federal facilities.

digital energy solutions, federal buildings, Schneider Electric

Tyler Haak is the vice president of sustainability and service at Schneider Electric, and prides himself on being an enthusiastic evangelizer of connected, sustainable, and efficient building environments. With over a decade of experience in the building automation industry as a customer-facing professional, Tyler leverages his expertise in energy efficiency, security and optimized building performance to help shape the future for all types of building experiences in the United States.

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Decarbonization, Energy & Sustainability, Energy Management & Lighting, Facilities Management, Featured, Technology

ASHRAE Guideline 36, Decarbonization, Digital Energy Solutions, Energy Efficiency, Energy Performance Technology, Federal buildings, Federal Funding, Green Proving Ground Program, Net-Zero Emissions, Schneider Electric, Sustainability, Technology, U.S. Department of Energy (DOE), U.S. General Services Administration

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