January 03, 2023

Bloomberg Government Quotes Diz Locaria on the Federal Supplier Climate Risks and Resilience Rule

2 min

On January 3, 2023, Diz Locaria was quoted in Bloomberg Government on the Federal Supplier Climate Risks and Resilience Rule, a proposed rule that would require certain contractors to disclose their greenhouse gas emissions and climate-related financial risk and set science-based targets to reduce their emissions.

According to the article, industry participants say the government’s piecemeal approach to climate standards and accountability allows some companies to continue operating without impact and leaves others scrambling to put systems in place to adhere to the new regulations. A source with familiar with federal regulatory procedures said regulators may be getting ahead of themselves. The Federal Register notice is only 23 pages, raising lots of questions. By contrast, the Environmental Protection Agency’s first greenhouse gas proposed rule was thousands of pages.

The government considered making a vendor’s noncompliance with climate reporting part of an agency’s decision for awarding contracts but ultimately decided to leave that decision to individual contracting officers. Locaria said even without specific guidance, the rule could lead to suspension and debarment if contractors are “flouting government requirements.” The rule could also lead to False Claims Act charges against firms that show “reckless disregard” and haven’t “made efforts or attempted to address this rule.”

Click here to access the article.