Notice of Inquiry Regarding Sustainable Leasing, 81085-81087 [2024-23106]

Agencies

• General Services Administration

[Federal Register Volume 89, Number 194 (Monday, October 7, 2024)]
[Notices]
[Pages 81085-81087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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: https://www.regulations.gov. 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 https://www.regulations.gov, including any personal and/or 
business confidential information provided. To confirm receipt of your 
comment(s), please check https://www.regulations.gov, 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 [email protected] or 
202-355-3822. For information pertaining to status or publication 
schedules, contact the Regulatory Secretariat at [email protected] 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 (https://www.whitehouse.gov/briefing-room/presidential-actions/2021/12/08/executive-order-on-catalyzing-clean-energy-industries-and-jobs-through-federal-sustainability/) which was 
accompanied by OMB Memorandum (M-22-06 (https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-06.pdf). 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 (https://www.sustainability.gov/pdfs/EO_14057_Implementing_Instructions.pdf) 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, (https://www.gsa.gov/system/files/GLSG%20Final%20-%209_28_23%20C%20V2.pdf) 
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.

[[Page 81087]]

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