The Denver Federal Center, which is home to the largest concentration of federal agencies outside of Washington, D.C., will undergo major energy savings and conservation retrofits under a $140.2 million contract paid from the Biden Inflation Reduction Act.

The 623-acre facility near Kipling Boulevard and West Alameda Avenue in Lakewood hosts more than 15 different federal agencies as well as support facilities, such as training centers, warehouses, and research laboratories, that support federal operations across various regions.

“Colorado is uniquely positioned to benefit from it and lead the transition to a clean energy economy,” said Colorado Sen. Michael Bennet in the a news release. “I’m glad that this funding will help conserve energy and reduce pollution from the Denver Federal Center — home to the largest concentration of federal agencies outside of Washington.”

The U.S. General Services Administration (GSA) awarded an Energy Savings Performance Contract to Ameresco for energy savings and conservation measures that will “enable deep energy retrofits through energy conservation measures, building electrification and American-made low-embodied carbon materials” according to the GSA.

The project will cut grid-purchased energy use by approximately 51% and water usage by approximately 10%, resulting in cost savings of more than $2 million for electricity and natural gas use.

A centralized geothermal heat pump system and a solar power system will supply year-round heating, cooling and electrical power. Along with replacement energy-efficient windows and other energy conservation measures, the project is predicted to cut fossil fuel consumption and allow solar panels to electrify approximately half of the campus.

“These investments are a prime example of how Inflation Reduction Act investments get us a triple-win: creating good jobs, saving taxpayer dollars through energy efficiency, and ensuring a healthier, brighter future for our communities and our kids,” said GSA Administrator Robin Carnahan in the release. “We look forward to working with industry and other stakeholders as we maximize the impact of these investments.”

U.S. Department of Energy contractor, Ameresco, conducted an energy audit to identify energy saving improvements at the campus. According to the GSA release: “Energy savings performance contracts facilitate partnerships with the private sector to help stretch appropriations further and deliver more with the available resources.”

Ameresco was competitively selected under the 2017 U.S. Department of Energy indefinite-delivery, indefinite-quantity energy savings performance contract. The contract opportunity was open to all 21 qualified energy service companies.