PBS’s Pacific Rim Region Grossly Mismanaged the Battery Energy Storage Systems at the Glenn M. Anderson Federal Building and the Ronald Reagan Federal Building and U.S. Courthouse, Resulting in Health and Safety Issues

Why We Performed This Audit

We performed this audit based on our ongoing assessment of a hotline complaint. Among other things, the complaint expressed health and safety concerns related to battery energy storage systems (battery systems) installed at the Glenn M. Anderson Federal Building in Long Beach, California (Anderson Building), and the Ronald Reagan Federal Building and U.S. Courthouse in Santa Ana, California (Reagan Building). While we continue to assess other aspects of the complaint, the objective of this audit was to determine whether GSA’s Public Buildings Service (PBS) Pacific Rim Region (PBS Region 9) manages the battery systems at the Anderson and Reagan Buildings in accordance with applicable regulations to ensure the health and safety of building occupants.

What We Found

In 2020, as part of a PBS energy savings performance contract (ESPC), an energy service company (ESCO) installed battery systems at the Anderson and Reagan Buildings. Combined, these battery systems consisted of 3,200 nickel-iron batteries. If not properly maintained, nickel-iron batteries can pose numerous health and safety risks, including the risk of electric shock, release of and exposure to hazardous materials, fire, and explosions.

PBS Region 9 grossly mismanaged the battery systems at the Anderson and Reagan Buildings, resulting in health and safety issues. We found that PBS Region 9 failed to ensure that the battery systems were properly maintained by the ESCO, resulting in a battery explosion, hazardous materials leaks, an injury, and a fire. Although the battery systems were disconnected after the battery system fire at the Anderson Building in April 2023, the battery systems and associated health and safety hazards remained in both buildings for years.

According to documents provided by PBS Region 9 management, the ESCO removed the batteries from the Reagan and Anderson Buildings in April 2025.

What We Recommend

We recommend that the PBS Commissioner institute policies and procedures to ensure:

1. Battery systems are designed, installed, operated, and maintained in accordance with federal regulations, PBS policy, and building code requirements.
2. Training requirements are designed and implemented for PBS and PBS contractor personnel working with battery systems and associated technologies.
3. Appropriate action is taken to address PBS personnel performance deficiencies identified in this report, including supervisory chains of command and individuals responsible for managing the battery systems.

We also recommend that the PBS Regional Commissioner of the Pacific Rim Region take immediate action to:

4. Safeguard the occupants and assets in the Anderson and Reagan Buildings by:
   1. Verifying that the ESCO removed the batteries and any other hazards from both the Anderson and Reagan Buildings using only qualified personnel.
   2. Obtaining the complete third-party investigation report into the cause of the battery system fire at the Anderson Building. Upon receipt, ensuring any remaining health and safety hazards listed in the report are addressed or mitigated.
5. Improve management oversight of the region’s facilities to ensure that:
   1. Code violations and maintenance deficiencies brought to management’s attention are immediately addressed.
   2. Local fire department personnel are involved in pre-fire planning activities for future battery system projects.
   3. Local fire department personnel are involved in post-fire assessments.
   4. Final certificates of occupancy are not issued until all outstanding fire and life safety deficiencies are corrected.

The PBS Commissioner agreed with the report’s recommendations.