The Federal Acquisition Regulatory (FAR) Council on Friday withdrew a proposed rule that would have required major federal contractors to disclose their greenhouse gas (GHG) emissions and set emissions reduction targets. The rule, first introduced in November 2022, was aimed at federal contractors receiving over $50 million annually in federal contracts. It would have required these contractors to disclose direct and some indirect GHG emissions, as well as climate-related financial risks.
The rule also targeted smaller contractors, classified as “significant” and awarded between $7.5 million and $50 million annually in federal contracts. These contractors would have had to report their direct and indirect GHG emissions. However, the FAR Council announced Friday that it would withdraw the rule, citing insufficient time to finalize the proposal, especially considering the large volume of public comments and the complex policy issues raised.
The proposal attracted over 38,000 public comments by the February 2023 deadline, including feedback from major corporations such as Microsoft and Chevron, environmental groups, and attorneys general from both Republican and Democratic states. Some industry groups, including the Aerospace Industries Association, opposed the rule, arguing that their members were already committed to reducing carbon emissions. In contrast, environmental and social justice groups advocated for the rule, emphasizing its importance in achieving federal procurement goals, including “net zero” carbon emissions by 2050.
