AGC-supported legislation to block a regulation requiring federal contractors to report technically unfeasible metrics for greenhouse gas emissions passes a House committee.

On July 12, the House Oversight and Accountability Committee approved the Mission not Emissions Act, H.R. 3358. This Act would prohibit implementation of a proposed regulation (FAR Case 2021-015) that would create technically unfeasible reporting requirements for Greenhouse Gas Emissions (GHG) for virtually every federal construction contractor.

The proposed rule at issue introduces two new categories for federal contractors, “significant contractors” and “major contractors.” Significant contractors, $7.5 - $50 million in federal contract obligations (not revenue) in the prior fiscal year would have to inventory Green House Gas (“GHG”) 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 a 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 fight against regulatory overreach. While this bill may have the votes to pass the House, it faces a difficult path to passage in the Senate.

For more information, contact Jordan Howard at [email protected] or (703) 837-5368.