On February 16, AGC weighed in on a proposed rule that would create new and onerous greenhouse gas reporting requirements for virtually every federal construction contractor.
On February 16, AGC submitted extensive regulatory comments on a proposed rule (FAR Case 2021-015) that would create new and onerous greenhouse gas (GHG) reporting requirements for virtually every direct federal construction contractor (contractors who work on federal agency contracts—Army Corps, General Services Administration, etc.—at the prime or subcontractor level). The rule does not apply to federal-aid transportation contracts issued by state departments of transportation.
The proposed rule introduces two new categorizes for federal contractors, “significant contractors” and “major contractors.” Significant contractors, $7.5 - $50 million in federal contract obligations (not revenue) in prior fiscal year to inventory Scope 1 (fuel) and 2 emissions (electricity) and complete an annual GHG emissions inventory on www.SAM.gov. Major contractors, more than $50 million in federal contract obligations (not revenue), will have the same reporting requirements as significant contractors but will also have to report on scope 3 emissions (essentially a contractor’s supply chain) and develop climate-based target for reducing emissions, among other requirements.
Starting one year after publication of a final rule, a significant or major must have completed a GHG inventory and must have disclosed the total annual Scope 1 and Scope 2 emissions in www.SAM.gov. The additional compliance requirements for major contractors will start two years after publication of a final rule. Once the requirements are in effect, contracting officers shall presume prepositive contractors are “nonresponsible” unless an exception applies.
AGC of America previously reported on the Securities and Exchange Commission’s proposed GHG rule. Many of the AGC’s concerns are similar to this proposed rule. However, the proposed rule differs in its application to virtually every federal contractor. AGC will continue to advocate for commonsense and workable regulations impacting the construction industry.
For more information, contact Jordan Howard at Jordan.Howard@agc.org or (703) 837-5368.