Sen. Joni Ernst, R-Iowa, ranking member of the Senate Small Business Committee, has called on the Federal Acquisition Regulation Council to withdraw a newly proposed rule to require small businesses looking to work with the federal government to disclose their greenhouse gas emissions.
In a letter to the FAR Council, Ernst said the proposed rule will add regulatory and cost burdens to small businesses at a time when they are already facing challenges due to supply chain disruptions and skyrocketing inflation.
According to the lawmaker, the rule is “confusing, contradictory, and misaligned with existing” contracting standards and could result in “broader, deleterious impacts to the small business industrial base.”
Ernst has specifically raised concerns about the establishment of new categories of small businesses, which she said deviates from the Small Business Administration’s size standard.
The FAR Council proposes to categorize federal suppliers into two: significant contractors and major contractors. Small businesses under both categories would be required to report their Scope 1 and 2 emissions annually.
Only major contractors would be mandated to submit annual climate disclosure, which includes Scope 3 GHG emissions and science-based target requirements.
