Effective December 19, 2016; Ripe for Repeal in 2017
The Federal Acquisition Regulation (FAR) Council recently issued a final rule that will require direct-federal contractors make an annual representation within the System for Award Management (SAM) indicating if and where they publicly disclose their company’s greenhouse gas (GHG) emissions and reduction goals or targets. The rule applies to contractors with annual gross revenues of $7.5 million and above and goes into effect on December 19. AGC will work with the Trump administration and Congress to repeal this and other unnecessary regulations in 2017.
The rule does not require contractors to generate new or not currently available information about their companies’ GHG emissions. It merely requires those contractors that already publicly disclose such information to make such a representation in SAM. AGC shared its concerns about the proposal in its comments. There, as previously reported, the association noted that the reporting requirement should only apply to the offeror company on federal projects and not to that company’s immediate, parent or holding company owners. The FAR Council agreed.
Again, the rule only impacts direct federal contractors who work on contracts directly for federal agencies. The rule does not apply to contracts issued by state agencies, like highway construction contracts issued by state departments of transportation. Direct-federal contractors will have to abide by this new requirement under new FAR Clause 52.233-22, Public Disclosure of GHG Gas Emissions and Reduction Goals—Representation. This clause will be incorporated by reference under FAR Clause 52.204-19, Incorporation by Reference Representations and Certifications. Therefore, federal contractors will not likely see the new GHG clause directly cited in newly issued solicitations on or after December 19, but will be responsible for complying with it.
For more information, contact Jimmy Christianson at christiansonj@agc.org or 703-837-5325.
Again, the rule only impacts direct federal contractors who work on contracts directly for federal agencies. The rule does not apply to contracts issued by state agencies, like highway construction contracts issued by state departments of transportation. Direct-federal contractors will have to abide by this new requirement under new FAR Clause 52.233-22, Public Disclosure of GHG Gas Emissions and Reduction Goals—Representation. This clause will be incorporated by reference under FAR Clause 52.204-19, Incorporation by Reference Representations and Certifications. Therefore, federal contractors will not likely see the new GHG clause directly cited in newly issued solicitations on or after December 19, but will be responsible for complying with it.
For more information, contact Jimmy Christianson at christiansonj@agc.org or 703-837-5325.
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