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Biden Administration’s New Sustainable Procurement Rule Aims to Tackle Climate Change
The Biden administration is taking significant steps to address climate change through federal procurement practices, with the issuance of a new final rule requiring agencies to procure “sustainable products and services” to the “maximum extent practicable.” Effective May 22, 2024, this rule aims to compel the government and government contractors to conduct business in a more environmentally sustainable manner.
Under the new rule, the procurement of sustainable products and services is considered practicable if they meet reasonable performance requirements, can be acquired competitively at a reasonable price, and are cost-effective over the product’s life. Contractors must provide sustainable products for services or construction contracts where the products will be used by the government or incorporated into public buildings.
The rule defines sustainable products and services as those meeting EPA purchasing program requirements, Energy Star-certified products, and biobased products meeting USDA requirements. To ensure compliance, agencies must identify applicable sustainable products and services in solicitations and contracts, with prime contractors required to flow down the clause to subcontractors.
Exceptions to the rule include supplies delivered outside the U.S., products for combat, and exemptions for intelligence or national security activities. The rule reflects the government’s commitment to addressing climate change through sustainable procurement practices, with further proposed rules requiring contractors to inventory and disclose greenhouse gas emissions.
The Biden administration’s directive to consider the social costs of greenhouse gas emissions in federal procurement decisions underscores the government’s commitment to combatting climate change through its purchasing power. Contractors can expect further changes as the government continues to prioritize sustainability in its procurement practices.
