The Department of Energy announced a final rule entitled “Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings.” The rule, which implements the Energy Independent and Security Act of 2007, requires federal agencies to phase out fossil fuel usage in new federal building construction or major renovations by achieving a 90 percent reduction in fossil fuel use for new projects started between fiscal years 2025 and 2029 and eliminating on-site fossil fuel usage in new projects beginning in 2030.

The rule applies to new construction and major renovations that exceed certain cost thresholds (in 2024 dollars), including $3.6 million for federally owned public buildings, $3.8 million for federally owned non-public buildings and $1.8 million for leased federal buildings.

DOE estimates that, over the next 30 years, the rule will reduce carbon emissions from federal buildings by 2 million metric tons and methane emissions by 16,000 tons — an amount roughly equivalent to the emissions generated by nearly 310,000 homes in one year — while also reducing infrastructure costs. More information on the rule is available on the DOE website.