Notice2024-23106
Notice of Inquiry Regarding Sustainable Leasing
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 7, 2024
Issuing agencies
General Services Administration
Abstract
GSA is exploring solutions toward achieving higher sustainability standards in federally leased locations. GSA is publishing this notice to request comments to help us understand the overall impacts of advanced sustainability requirements related to executing green leases. At this time, GSA has not determined whether or not it will work towards a notice of proposed rulemaking to address this topic.
Full Text
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<title>Federal Register, Volume 89 Issue 194 (Monday, October 7, 2024)</title>
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[Federal Register Volume 89, Number 194 (Monday, October 7, 2024)]
[Notices]
[Pages 81085-81087]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-23106]
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GENERAL SERVICES ADMINISTRATION
[Notice-PBS-2024-10; Docket No. 2024-0002; Sequence No. 43]
Notice of Inquiry Regarding Sustainable Leasing
AGENCY: Public Buildings Service (PBS), Office of Leasing, General
Services Administration, (GSA).
ACTION: Notice; Request for Information (RFI).
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SUMMARY: GSA is exploring solutions toward achieving higher
sustainability standards in federally leased locations. GSA is
publishing this notice to request comments to help us understand the
overall impacts of advanced sustainability requirements related to
executing green leases. At this time, GSA has not determined whether or
not it will work towards a notice of proposed rulemaking to address
this topic.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat as noted below on or before December 6, 2024.
ADDRESSES: Submit comments in response to this inquiry to: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Submit comments via the Federal eRulemaking portal
by searching for ``Notice of Inquiry Regarding Sustainable Leasing''.
Follow the instructions provided at the ``Comment Now'' screen. Please
include your name, company name (if any), and ``Notice of Inquiry
Regarding Sustainable Leasing'' on your attached document.
Instructions: Comments received generally will be posted without
change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>, including any personal and/or
business confidential information provided. To confirm receipt of your
comment(s), please check <a href="https://www.regulations.gov">https://www.regulations.gov</a>, approximately
two-to-three days after submission to verify posting.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Ms. Elizabeth Brown, Realty Specialist at <a href="/cdn-cgi/l/email-protection#d0b5bcb9aab1b2b5a4b8feb2a2bfa7be90b7a3b1feb7bfa6"><span class="__cf_email__" data-cfemail="5e3b3237243f3c3b2a36703c2c3129301e392d3f70393128">[email protected]</span></a> or
202-355-3822. For information pertaining to status or publication
schedules, contact the Regulatory Secretariat at <a href="/cdn-cgi/l/email-protection#1a5d495b487f7d497f795a7d697b347d756c"><span class="__cf_email__" data-cfemail="f6b1a5b7a49391a59395b6918597d8919980">[email protected]</span></a> or
202-501-4755. Please cite ``GSA Sustainable Leasing Inquiry''.
SUPPLEMENTARY INFORMATION:
I. Background
GSA has incorporated green requirements into its Request for Lease
Proposal (RLP) and Lease documents for
[[Page 81086]]
the past 25 years. These green requirements are driven by statutes,
federal policies, Executive Orders, and various industry standards.
They include provisions related to Energy Star, third-party green
ratings, HVAC and commissioning, indoor air quality, water
conservation, sustainable products, and landlord reporting of energy
and water consumption.
In December 2021, President Biden issued Executive Order 14057 on
Catalyzing Clean Energy Industries and Jobs Through Federal
Sustainability (<a href="https://www.whitehouse.gov/briefing-room/presidential-actions/2021/12/08/executive-order-on-catalyzing-clean-energy-industries-and-jobs-through-federal-sustainability/">https://www.whitehouse.gov/briefing-room/presidential-actions/2021/12/08/executive-order-on-catalyzing-clean-energy-industries-and-jobs-through-federal-sustainability/</a>) which was
accompanied by OMB Memorandum (M-22-06 (<a href="https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-06.pdf">https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-06.pdf</a>). This Executive Order set new
climate and sustainability goals for the Federal government, with the
target of a net-zero emissions building portfolio by 2045.
Per the OMB memorandum (M-22-06), ``. . . all new (including new-
replacing, succeeding, and superseding) leases entered into after
September 30, 2023, for at least 25,000 rentable square feet in a
building where the Federal Government leases at least 75 percent of the
total building square footage are green leases. Such green leases must
require the lessor to report to the agency annual data on facility
greenhouse gas emissions, energy consumption, water consumption, and
waste generation . . .'' (Section I.F.2). The Implementing Instructions
for E.O. 14057 (<a href="https://www.sustainability.gov/pdfs/EO_14057_Implementing_Instructions.pdf">https://www.sustainability.gov/pdfs/EO_14057_Implementing_Instructions.pdf</a>) further clarify that these
requirements will be measured for ``[all] new lease solicitations
issued after September 30, 2023, for at least 25,000 rentable square
feet (RSF) where the Federal Government occupies at least 75 percent of
a building are to be green leases.'' (Section 4.4.13).
The E.O. 14057 Implementing Instructions further require the
following:
``GSA must issue green lease standards and guidelines to be applied
to Federal leases, including provisions that promote a standard
framework for lessor reporting of emissions, energy, water, and waste
associated with leased space. Agencies with independent leasing
authority must incorporate the guidelines and language into agency-
specific leasing policies and procedures.''
GSA issued the Green Lease Standards and Guidelines, (<a href="https://www.gsa.gov/system/files/GLSG%20Final%20-%209_28_23%20C%20V2.pdf">https://www.gsa.gov/system/files/GLSG%20Final%20-%209_28_23%20C%20V2.pdf</a>)
Version 1.0 on September 29, 2023. These standards reflect a core set
of green requirements that are included in federal leases.
II. Purpose
This inquiry is an important step towards exploring implementation
instructions on how to successfully advance green leasing requirements
into leasing solutions.
GSA is considering adding more advanced green leasing requirements
to lease solicitations. These requirements would apply to leases that
are 25,000 rentable square feet or greater where the government
collectively occupies at least 75 percent of the building. GSA has
identified several optional requirements from GLSG Version 1.0 to
include as required in a Version 2.0 update. This RFI seeks to
understand how the commercial real estate market will meet these
advanced sustainability requirements and any potential impact they will
have on rental rates.
The key sustainability solutions that are being explored include:
electrification of equipment upon replacement or end-of-life, the use
of energy efficient equipment, periodic recommissioning, and landlord
tracking and reporting of operational energy usage and waste
management.
II.A. Electrification of Building Systems
GSA is reviewing energy efficiency as it relates to the
electrification of major base building systems, meaning less reliance
on fossil fuels for leases that are 25,000 rentable square feet or
greater, where the federal government collectively occupies at least 75
percent of a building. GSA is considering requiring that upon
replacement or end-of-life, building equipment used for heating,
cooling, ventilation, and domestic hot water be changed from equipment
relying on fossil fuels to equipment using electricity as the power
source.
II.B. Use of Energy Efficient Equipment
For leases that are 25,000 rentable square feet or greater, where
the federal government collectively occupies at least 75 percent of a
building, GSA is considering requiring that energy-efficient equipment
or components that follow the minimum performance requirements of
Energy Star labeled or Federal Energy Management Program (FEMP)-
designated program standards be installed for major base building
systems (heating, cooling, ventilation, process loads, and domestic hot
water) upon the end-of-life or replacement of current equipment.
II.C. Periodic Recommissioning
For leases that are 25,000 rentable square feet or greater and
where the federal government collectively occupies at least 75 percent
of a building, GSA is considering requiring a building owner to
periodically recommission the major systems related to HVAC, controls,
lighting, and domestic hot water based on relevant industry standards,
to optimize systems and to maintain and enhance energy efficiency.
II.D. Reporting of Waste Generation
For leases that are 25,000 rentable square feet or greater and
where the federal government collectively occupies at least 75 percent
of a building, GSA is considering requiring the building owner to track
and report waste generation, including municipal solid waste (trash and
recycling), and construction and demolition debris.
II.E. Lessor Tracking/Reporting of the Government Tenants' Energy Use
For leases that are 25,000 rentable square feet or greater, and
where the federal government collectively occupies at least 75 percent
of a building, GSA is considering requiring the building owner to track
and report energy use for federal government tenants independent from
non-government tenants. This could include estimating the government's
annual energy use if tenant level submeters are not available.
III. Request for Operational and Economic Information
GSA seeks responses to the questions listed below. Please explain
the reasoning behind your responses in detail. Also, please provide any
data, studies, or other evidence that supports your response.
In your response please include your contact information, your
business socio-economic category if applicable, and a brief description
of your business.
GSA also seeks to better understand what industry changes are
feasible from an economic perspective. GSA seeks economic data and
consumer research to help increase its understanding of the impact that
added sustainability requirements will have on rental rates for
government leases in multiple markets. In your response please consider
some of the questions below.
To help GSA review comments efficiently, identify the question to
which you are responding by its associated number and letter (e.g.,
``IV.2.a'') or whether you are commenting on a topic not listed below.
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IV. Questions for Industry
(1.) What measures would be required to transition to electric,
non-fossil fuel using equipment for major building systems (heating,
cooling, ventilation, and domestic hot water), upon the equipment's
replacement or end-of-life?
(a.) What are the constraints or obstacles associated with this
transition?
(b.) Please provide an estimate of the impact, if any, that
electrification of building equipment would have on rental rates for
government leases. Please identify the estimated costs and savings
associated with implementing electrification.
(2.) What are the steps needed to shift toward using energy
efficient equipment for building systems that follow the minimum
performance requirements of Energy Star or FEMP-designated program
standards (upon replacement or end-of-life)?
(a.) Are there challenges with obtaining energy efficient equipment
and components for major building systems, or following the minimum
performance requirements of Energy Star or FEMP-designated program
standards for a federal leased space? If yes, what are those market
challenges?
(b.) What impact on rental rates, if any, would installing energy
efficient equipment and components for major building systems, or
following the minimum performance requirements of Energy Star or FEMP-
designated program standards?
(3.) If periodic recommissioning is required, what is the
appropriate frequency that major building systems should be
recommissioned?
(a.) Are there commercial industry standards for building
recommissioning that we should consider using?
(b.) What parameters should we consider using if we chose to
include recommissioning requirements (eg: percentage of government
occupancy; size of lease; term of lease)?
(c.) What impact would periodic recommissioning requirements have
on rental rates?
(4.) Are building owners currently required to track and report
waste generation (related to trash, recyclables, and construction &
demolition debris) in your local jurisdictions (city, county, etc.)?
(a.) What, if any, impact would this type of waste tracking and
reporting have on the proposed rental rates for federal government
leases?
(5.) Given the thresholds of 25,000 rentable square feet or greater
and at least 75 percent federal government occupancy, would any of the
5 key sustainability solutions reflected in Section II of this RFI
prevent building owners from offering space to the government on a
competitive lease procurement?
(6.) Are all or any of the 5 key sustainability solutions reflected
in Section II of this RFI currently required by any building owners in
jurisdictions or markets that you are familiar with (city, county,
etc)?
(a.) If so, which solutions, and which markets?
(b.) Have building owners been able to meet the requirements like
these in markets you are familiar with, and what impact, if any, have
they had on rental rates?
(7.) Please identify additional advanced sustainability
requirements that GSA should consider in the pursuit of a more
sustainable leased inventory.
(a.) What are they?
(b.) What are the expected impacts on rental rates for government
leases associated with your recommendations?
Crofton Whitfield,
Assistant Commissioner, Office of Leasing, Public Buildings Service,
General Services Administration.
[FR Doc. 2024-23106 Filed 10-4-24; 8:45 am]
BILLING CODE 6820-BT-P
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