Climate change has been a hot topic of discussion for some time now. President Joseph Biden’s administration has focused in on that issue, and the related need for protecting the environment, as part of its regulatory agenda through several Executive Orders (EO). Each of those EOs, specifically No. 14030 (“Climate-Related Financial Risk”), No. 14057 (“Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability”), and No. 14008 (“Tackling the Climate Crisis at Home and Abroad”), alluded to the potential of new environmental requirements for certain federal contractors and subcontractors. Although it will likely be several months until these new policies begin appearing in the Federal Acquisition Regulation (FAR), the government’s rapid progress in implementing these environmental requirements signals that contractors need to start paying attention to the scope of the requirements even as they are still taking shape.
On August 31, 2022, the White House Council on Environmental Quality (CEQ) issued Implementing Instructions for one of those EOs (EO 14057), which provides the federal government with direction on the implementation of the various environmental requirements contemplated by the President. The Instructions note that the sustainable product and service acquisition policies apply to all new contract actions, including IDIQ contracts, task and delivery orders against existing contracts, and goods or services acquired through purchase cards. The release of the Implementing Instructions confirms that federal contractors should expect the release and implementation of these environmental requirements to occur sooner rather later. With that in mind, below is a list of the most significant aspects of the Implementing Instructions that address the environmental requirements.
Highlights.
