Federal Acquisition Regulation; Public Disclosure of Greenhouse Gas Emissions and Reduction Goals-Representation, 83092-83097 [2016-27686]
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83092
Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Rules and Regulations
and National Aeronautics and Space
Administration (NASA).
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
ACTION:
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
SUMMARY:
Summary presentation of final
rules.
48 CFR Chapter 1
[Docket No. FAR 2016–0051, Sequence No.
6]
Federal Acquisition Regulation;
Federal Acquisition Circular 2005–92;
Introduction
Department of Defense (DoD),
General Services Administration (GSA),
AGENCIES:
This document summarizes
the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian
Agency Acquisition Council and the
Defense Acquisition Regulations
Council (Councils) in this Federal
Acquisition Circular (FAC) 2005–92. A
companion document, the Small Entity
Compliance Guide (SECG), follows this
FAC. The FAC, including the SECG, is
available via the Internet at https://
www.regulations.gov.
For effective dates see the
separate documents, which follow.
DATES:
The
analyst whose name appears in the table
below in relation to the FAR case.
Please cite FAC 2005–92 and the
specific FAR case number. For
information pertaining to status or
publication schedules, contact the
Regulatory Secretariat Division at 202–
501–4755.
FOR FURTHER INFORMATION CONTACT:
RULES LISTED IN FAC 2005–92
Item
Subject
I ...............................
Public Disclosure of Greenhouse Gas Emissions and Reduction Goals—Representation.
Removal of Regulations Relating to Telegraphic Communication ...........................
Technical Amendments.
II ..............................
III .............................
SUPPLEMENTARY INFORMATION:
Summaries for each FAR rule follow.
For the actual revisions and/or
amendments made by these rules, refer
to the specific item numbers and
subjects set forth in the documents
following these item summaries. FAC
2005–92 amends the FAR as follows:
Item I—Public Disclosure of
Greenhouse Gas Emissions and
Reduction Goals—Representation (FAR
Case 2015–024)
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This final rule amends the FAR to
establish an annual representation
requirement to indicate whether or not
and where contractors publicly disclose
greenhouse gas emissions and
greenhouse gas emission reduction goals
or targets. This representation is
optional for contractors that received
less than $7.5 million in contract
awards from the Government during the
previous Federal fiscal year. The
information obtained from these
representations will assist agencies in
developing strategies to engage with
contractors to reduce supply chain
emissions, as directed in the Executive
Order 13693, Planning for Federal
Sustainability in the Next Decade.
Item II—Removal of Regulations
Relating to Telegraphic Communication
(FAR Case 2015–035)
This rule amends the FAR to delete
the use of ‘‘telegram,’’ ‘‘telegraph,’’ and
related terms. The objective is to delete
reference to obsolete technologies no
longer in use and replace with
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FAR Case
references to electronic
communications. In addition,
conforming changes are made covering
expedited notice of termination and
change orders.
The rule is not anticipated to have a
significant economic impact on small
business entities, as the rule provides
recognition of current options for
transmitting documents between the
Government and contractors. The rule
also revises the means of disseminating
contract termination documents
between the Government and
contractors; however, this change only
affects the Government’s responsibility
for transmitting termination notices.
Analyst
2015–024
Gray.
2015–035
Francis.
18, 2016 except for items I, and II,
which are effective December 19, 2016.
Dated: November 10, 2016.
Claire M. Grady,
Director, Defense Procurement and
Acquisition Policy.
Dated: November 10, 2016.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO,
Office of Acquisition Policy, U.S. General
Services Administration.
Dated: November 9, 2016.
William P. McNally,
Assistant Administrator, Office of
Procurement National Aeronautics and
Space Administration.
[FR Doc. 2016–27687 Filed 11–17–16; 8:45 am]
BILLING CODE 6820–EP–P
Item III—Technical Amendments
Editorial changes are made at FAR
2.101, 7.105, 19.1506, 34.000, 34.005–2,
34.201, 34.203, 42.709, 52.234–2,
52.234–3, and 52.234–4.
Dated: November 10, 2016.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC)
2005–92 is issued under the authority of
the Secretary of Defense, the
Administrator of General Services, and
the Administrator for the National
Aeronautics and Space Administration.
Unless otherwise specified, all
Federal Acquisition Regulation (FAR)
and other directive material contained
in FAC 2005–92 is effective November
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DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 4, 23, and 52
[FAC 2005–92; FAR Case 2015–024; Item
I; Docket No. 2015–0024, Sequence No. 1]
RIN 9000–AM90
Federal Acquisition Regulation; Public
Disclosure of Greenhouse Gas
Emissions and Reduction Goals—
Representation
Department of Defense (DoD),
General Services Administration (GSA),
AGENCY:
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Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Rules and Regulations
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
DoD, GSA, and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
establish a representation for offerors to
indicate if and where they publicly
disclose greenhouse gas emissions and
greenhouse gas reduction goals or
targets.
DATES: Effective: December 19, 2016.
FOR FURTHER INFORMATION CONTACT: Mr.
Charles Gray, Procurement Analyst, at
703–795–6328 for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat Division at
202–501–4755. Please cite FAC 2005–
92, FAR Case 2015–024.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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I. Background
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
81 FR 33192 on May 25, 2016,
containing a new FAR provision that
will enable the Federal Government to
better understand the greenhouse gas
management practices of its industry
partners. In accordance with the
provision, offerors seeking to do
business with the Federal Government
that are registered in the System for
Award Management (SAM) database
and received $7.5 million or more in
contract awards during the prior Federal
fiscal year are required to represent
whether or not they publicly disclose
their greenhouse gas emissions and their
greenhouse gas emissions reduction
goals. This representation is voluntary
for offerors that received less than $7.5
million during the prior fiscal year.
The information obtained from these
representations will assist agencies in
developing strategies to engage with
offerors to reduce supply chain
emissions, as directed in the Executive
Order (E.O.) 13693, Planning for Federal
Sustainability in the Next Decade.
Seventeen respondents submitted
comments on the proposed rule.
II. Discussion and Analysis
The Civilian Agency Acquisition
Council and the Defense Acquisition
Regulations Council (the Councils)
reviewed the public comments in the
development of the final rule. A
discussion of the comments and the
changes made to the rule as a result of
those comments are provided as
follows:
A. Summary of Significant Changes
At FAR 52.212–3, Offeror
Representations and Certifications—
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Commercial Items, the representation at
(t)(2)(i) has been revised to clarify that
the Greenhouse Gas Protocol Corporate
Standard is an example of a greenhouse
gas accounting standard, and that the
emissions reduction goals are to be
made accessible on a publicly accessible
Web site.
At FAR 52.223–22, Public Disclosure
of Greenhouse Gas Emissions and
Reduction Goals—Representation,
paragraph (b)(1) has been revised to
clarify that the Greenhouse Gas Protocol
Corporate Standard is intended to serve
as an example of a greenhouse gas
accounting standard. In paragraph (b)(2)
of the same provision, language has
been added to clarify that to disclose
emissions reduction goals means to
make such goals available on a publicly
accessible website.
B. Analysis of Public Comments
1. Support for the Rule
Comment: Most respondents
expressed their support for the rule.
Response: The Councils appreciate
and note the numerous comments
supporting this rule.
2. Legal Authority for the Rule
Comment: One respondent believed
that the rule is not supported by
adequate legal authority, noting that the
statement ‘‘the rule is not based in
statute . . .’’ appeared in the preamble
of the Federal Register notice. This
respondent further stated that the rule
must be based on a grant or rulemaking
authority from Congress, and they
believed in this instance there is no
adequate nexus between the rule and
any rulemaking authority granted by
Congress.
Response: The authority for this rule
is E.O. 13693. The language in question
was in relation to 41 U.S.C. 1905, 1906,
and 1907, which require a listing of
provisions of law that are inapplicable
to acquisitions under the simplified
acquisition threshold (SAT), or for
commercial items including
commercially available off-the-shelf
(COTS) items.
Statutory rulemaking authority for the
FAR is listed in FAR rules as 40 U.S.C.
121(c), 10 U.S.C. chapter 137, and 51
U.S.C. 20113.
3. Concerns Regarding the Need for
Public Disclosure and Public Access to
Companies’ Greenhouse Gas Emissions
Inventory
The concerns expressed by
respondents in this area generally fell
into four categories: (A) General
concerns regarding the clarity of the
rule; (B) The use of equivalents to the
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Greenhouse Gas Corporate Protocol
Standard; (C) Reporting requirements
for offeror’s parent company or for
companies that are not the owner of
facility; and (D) Concerns regarding the
proposed reporting thresholds.
(A) General Concerns Regarding the
Clarity of the Rule
Comment: Several respondents stated
that the rule was unclear regarding its
breadth and utility. One respondent
commented that such disclosures on a
publicly accessible website may
compromise trade secrets or be the
impetus for an overwhelming number of
bid protests and unacceptable delays.
Another respondent expressed concern
that the Government would capture and
use unreliable data generated and
reported by a third-party. Others raised
concerns regarding the utility to the rule
without an industry-by-industry
analysis, citing the analytical
methodology employed by the
Environmental Protection Agency
(EPA). Two respondents remarked that
the rule was unclear regarding the
meaning of the phrase ‘‘available on a
publicly accessible Web site.’’
Response: This rule does not require
offerors to disclose greenhouse gas
emissions and/or goals; rather, it
requires offerors seeking to do business
with the Federal Government to
represent whether or not they do make
such disclosures, and if so, provide the
publicly accessible website. As such,
the rule will not lead to the inadvertent
disclosure of trade secrets by an offeror.
With regard to the reliability of the
data obtained, the representation relates
only to information made available by
the offeror, regardless of where the
information is hosted. Since an offeror
that responds affirmatively to the
representation is also required to
provide the website address, the
Government will only be directed to the
offeror’s publicly accessible
information.
This rule does not regulate industry,
which is why the analytical techniques
employed by the EPA were not used.
The purpose of the rule is to obtain a
better understanding of Federal supply
chain greenhouse gas emissions.
Utilizing existing public information
significantly reduces the burden on
potential offerors while providing useful
strategic information and encouraging
transparency.
Finally, the plain meaning of the
phrase ‘‘available on a publicly
accessible Web site’’ is that the
information must be accessible to the
general public.
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(B) Equivalents to the Greenhouse Gas
Corporate Protocol Standard
Comment: Many respondents
requested that the language, ‘‘via a
recognized, third-party greenhouse gas
emissions reporting program’’ be
updated with language identifying
specific reporting programs or
additional standards.
Response: In order for the Federal
Government to gain insight into its
supplier actions, the regulation does not
use language that will limit its
awareness of greenhouse gas (GHG)
management practices; however, the
reference to ‘‘recognized’’ standards has
been updated in the final rule to
‘‘accounting standards with publicly
available and consistently applied
criteria’’ in order to provide clarity to
respondents while allowing insight into
any accounting methods used. The
standard was intentionally left open, so
as not to require any specific accounting
or reporting methodology.
To further clarify this intent, the
language in the final rule has been
amended to state that the Greenhouse
Gas Protocol Corporate Standard is
intended to serve as an example of
greenhouse gas accounting standard,
rather than the only acceptable
standard.
(C) Reporting Requirements for Offerors’
Parent Company or for Companies That
Are Not the Owner of the Facility
Comment: Many respondents sought
clarification as to an offeror’s obligation
to report on the greenhouse gas
emissions management practices of its
parent or controlling entity or when it
is not the owner of the facility.
Response: The rule does not obligate
offerors to report on the emissions of
their parent companies or the emissions
management practices of a facility that
they do not own.
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(D) Concerns Regarding the Proposed
Reporting Thresholds
Comment: Although there was
support for the $7.5 million threshold,
recognizing that it extends to a variety
of companies with regard to type, size,
and location, a few comments suggested
that the $7.5 million threshold was not
the best definitive characterization for
reporting. Alternative reporting
delineations proposed were an annual
facility emission of 25,000 tons or more
of CO2 or identification by North
American Industry Classification
System (NAICS) codes to eliminate
small businesses and non-greenhouse
gas emitting industries.
Response: In order to gain insight into
its supplier actions, the Government
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does not want to limit its awareness of
greenhouse gas management practices
by limiting the information to specific
emissions thresholds (such as 25,000
tons of CO2) or NAICS codes. In
particular, the use of NAICS codes in
this context may impose artificial
limitations; when registering in the
SAM, offerors select their primary
NAICS code, even though they can and
do work in other areas.
4. Nitrogen Trifluoride Should Not Be
Identified in the FAR as a Greenhouse
Gas
Comment: One respondent remarked
that the proposal to include nitrogen
trifluoride in the definition for
greenhouse gases at FAR 23.001 should
be withdrawn since, unlike the other six
greenhouse gases already listed in the
FAR, nitrogen trifluoride is not directly
emitted (the direct result of human
activity) and therefore cannot be
identified and quantified for reporting
purposes.
Response: Section 19 of E.O. 13693
identifies nitrogen trifluoride as a
greenhouse gas, and for this reason the
definition for greenhouse gas at FAR
23.001 includes nitrogen trifluoride.
5. Rule is Vague Regarding
Requirements for Disclosure of
Emissions Reduction Goals
Comment: Some respondents stated
that the requirements for greenhouse gas
emissions reduction goals were not
sufficiently stringent or specific. Many
respondents were concerned that the
information obtained from the inventory
would be of little use to agencies and
could negatively impact any polices
developed.
Response: The intent of this rule is
not to require greenhouse gas emissions
reduction goals, but to gather
information regarding whether or not
such information is disclosed. To that
end, further guidance has been added in
the final rule to clarify that to disclose
emissions reduction goals means to
make such goals available on a publicly
accessible website.
Although the concerns regarding the
usefulness of the inventory information
are noted, the information gathered will
be considered with a variety of other
factors.
6. The Rule Is Unclear Whether the
Information Obtained From the
Representations Would Be Used in
Individual Procurements
Comment: Several respondents
indicated that the purpose and benefit
of the rule is obscure. A number of these
respondents expressed concern that the
representations set forth in the rule
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would place a company that did not
disclose its emissions inventory
information at a significant competitive
disadvantage in comparison with
companies that did disclose during
source selection.
Response: The rule does not establish
evaluation criteria to be used in a source
selection decision.
7. The Rule Requires Reporting of
Information Already Reported to Other
Agencies, Such as the EPA
Comment: A few respondents stated
that certain large facilities and
companies already provided greenhouse
gas emission information to the EPA
and therefore the new reporting in SAM
would be redundant.
Response: The representations
required by the rule indicate if and
where offerors publicly disclose
greenhouse gas emissions and
greenhouse gas reduction goals rather
than specific emission information
reported to EPA.
8. The Rule Needs To Specify the Scope
of Emissions Being Represented
Comment: Several respondents
commented that the rule should specify
the scope of greenhouse gas emissions
in order to make the disclosure
meaningful.
Response: Understanding the source
of emissions, (i.e., whether it is a scope
1, 2, or 3 emission) is an important
consideration within the broader
context of achieving greenhouse gas
emission reductions. However, the
purpose of the rule is to obtain
information regarding whether offerors
are publicly disclosing their greenhouse
gas emissions. Specifying that the
disclosure must include the scope of the
greenhouse gas emission would limit
the ability of the Government to gather
information on all types of reporting
practices.
9. The Rule Should Not Exclude
Commercial Item or COTS Item Vendors
From the Disclosure Requirements
Comment: One respondent remarked
that if sellers of commercial items and
COTS items are exempted from the
rule’s disclosure requirements, the
rule’s benefits would be sub-optimal.
Response: The rule does not provide
an exemption for commercial items and
COTS items. All offerors that meet or
exceed the rule’s threshold are required
to provide the representation.
10. Out of Scope
Comment: Several respondents
submitted comments encouraging the
Councils to take a more proactive
approach to the rule. These respondents
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suggested various ways to strengthen
the rule, such as—
• Requiring Government agencies to
take vendor emission disclosures and
emission reduction goals into
consideration during source selection;
• Requiring vendors to disclose
emissions information and emissions
reduction goals, as opposed to
indicating ‘‘whether or not’’ they
disclose;
• Adding an option to have vendors
identify ‘‘serious’’ or ‘‘substantial’’
reduction goals, noting that a 40 percent
reduction from the 2008 greenhouse gas
baseline was mentioned in E.O. 13693;
• Another respondent observed that
the greenhouse gas problem should not
be attributed to the companies that sell
greenhouse gas-emitting products (such
as fuels), but rather, the users that
consume these products. This
respondent suggested that the
Government pursue a revenue neutral
course of action.
Response: The Councils note and
appreciate the suggestions offered by
these respondents; however, they are
beyond the scope of the rule. The rule
is intended to be a low-burden,
minimally intrusive effort to report data
in SAM that the Council on
Environmental Quality will use to
develop an annual inventory, thus
allowing for greater insight into the
greenhouse gas management practices of
the Federal supplier base.
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11. Rationale for the Removal of
Paragraphs (a) Through (g) at FAR
23.000
Comment: One respondent did not
understand the reasoning behind the
removal of FAR paragraphs 23.000(a)
through (g), as these paragraphs
provided the means by which
acquisitions based on ‘‘improving the
quality of the environment . . .’’ and
their removal would lead to subjective
agency decisions.
Response: FAR 23.000 is an overview
of the acquisitions policies and
procedures found in part 23. The rule
amends the FAR to remove information
that is discussed in greater detail in
other areas of part 23; however, the
scope for the FAR part remains.
12. Consideration of Climate Change
Risk
Note: The preamble of the Federal
Register for the proposed rule solicited
public feedback regarding means and
methods to enable agencies to evaluate
climate change risks and vulnerabilities.
One of the approaches put forth in the
preamble was the inclusion of a new
representation that would allow offerors
to indicate whether or not they assess
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the risks imposed by extreme weather
conditions and other climate change
effects, including the physical impacts
of such risks. It was also suggested that
offerors should represent if they do or
do not discuss climate change risk in
their filings with the Securities and
Exchange Commission. The comments
received in response to climate change
risk assessment are summarized as
follows:
Comment: Several respondents
recommended including disclosure of
vendor climate risk analyses in addition
to information about greenhouse gas
inventories. One respondent expressed
the viewpoint that the preferred location
for such disclosure was the Securities
and Exchange Commission filing.
However, one respondent believed that
the ‘‘does/does not’’ model will not
provide sufficient insight.
Response: The Councils extend their
appreciation for the input provided by
the public regarding climate change risk
assessment. It will be critical to
understand climate change risks moving
forward.
C. Other Changes
A number of conforming changes
were made to the final rule, due to
changes made in the FAR text since the
publication of the proposed rule.
III. Applicability to Acquisitions at or
Below the Simplified Acquisition
Threshold, Commercial Items, and
Commercially Available Off-the-Shelf
Items
This rule establishes a new provision
at FAR 52.223–22, Public Disclosure of
Greenhouse Gas Emissions and
Reductions Goals—Representation, and
establishes its commercial item
equivalent at FAR 52.212–3, Offeror
Representations and Certifications—
Commercial Items. The new provision
requires offerors that received $7.5
million or more in contracts from the
Federal Government during the prior
Federal fiscal year, to represent whether
or not they publicly disclose their
greenhouse gas emissions and whether
or not they publicly disclose a
quantitative greenhouse gas emissions
reduction goal. This information will be
used by the Federal Government to
assess the scope of greenhouse gas
management undertaken by companies
seeking to do business with the Federal
Government. Application of the
provision in solicitations and contracts
at or below the SAT and to the
acquisition of commercial items,
including COTS items, is necessary in
order to comply with E.O. 13693. If the
requirements of the provision(s) are not
made applicable to acquisitions below
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the SAT, or to acquisitions for
commercial items or COTS items, the
Government will be unable to obtain
valuable information from a large
segment of its supplier base, which in
turn will undermine the overarching
purpose of the rule.
41 U.S.C. 1905 through 1907 make
certain provisions of law inapplicable to
solicitations and contracts at or below
the SAT and to the acquisition of
commercial items, including COTS
items, unless the FAR Council/
Administrator for Federal Procurement
Policy determine that such exemption
from the statute(s) would not be in the
best interest of the Government.
However, 41 U.S.C. 1905 through 1907
are only applicable to statutory
provisions, not Executive Orders.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is a significant
regulatory action and, therefore, was
subject to review under Section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
V. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared
a Final Regulatory Flexibility Analysis
(FRFA) consistent with the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq. The
FRFA is summarized as follows:
As stated in E.O. 13693, Federal agencies
shall increase their efficiency and improve
their environmental performance, including
the reduction of greenhouse gas emissions
across Federal operations and the Federal
supply chain. In keeping with this policy, the
objective of the rule is to obtain information
from offerors that will assist agencies in
developing strategies to reduce supply chain
greenhouse emissions.
Specifically, the rule amends the Federal
Acquisition Regulation to create a new
provision in which offerors that received $7.5
million in contract awards during the
previous Federal fiscal year (FY) are required
to represent whether or not they publicly
disclose their greenhouse gas emissions and
their greenhouse gas emissions reduction
goal. We anticipate this rule will apply to
approximately 2,700 small entities, based on
an analysis of FY 2015 Federal Data
Procurement Data (FPDS).
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There were no significant issues raised by
the public comments in response to the
initial regulatory flexibility analysis. The
reporting requirements for the rule are
considered to be minimal, and there is no
recordkeeping associated with the disclosure
representation. The economic impact of the
rule is minimized by the fact that only
offerors that received Federal awards in
excess of $7.5 million in the previous Federal
fiscal year are required to make this
representation.
Interested parties may obtain a copy
of the FRFA from the Regulatory
Secretariat Division. The Regulatory
Secretariat Division has submitted a
copy of the FRFA to the Chief Counsel
for Advocacy of the Small Business
Administration.
VI. Paperwork Reduction Act
The Paperwork Reduction Act (44
U.S.C. Chapter 35) applies. The rule
contains information collection
requirements. OMB has cleared this
information collection requirement
under OMB Control Number 9000–0194,
titled: Public Disclosure of Greenhouse
Gas Emissions and Reduction Goals—
Representation, in the amount of 1,375
burden hours.
List of Subjects in 48 CFR Parts 1, 4, 23,
and 52
Government procurement.
1. The authority citation for 48 CFR
parts 1, 4, 23, and 52 continues to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
PART 1—FEDERAL ACQUISITION
REGULATIONS SYSTEM
[Amended]
2. Amend section 1.106 in the table
following the introductory text, by
adding in numerical sequence, FAR
segment ‘‘52.223–22’’ and its
corresponding OMB control number
‘‘9000–0194’’.
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■
23.001
[Amended]
5. Amend section 23.001 in the
definition ‘‘Greenhouse gases’’ by
removing ‘‘perflourocarbons,’’ and
adding ‘‘perflourocarbons, nitrogen
triflouride,’’ in its place.
■ 6. Revise subpart 23.8 heading to read
as follows:
■
Subpart 23.8—Ozone-Depleting
Substances and Greenhouse Gases
Scope of subpart.
This subpart—
(a) Sets forth policies and procedures
for the acquisition of items that—
(1) Contain, use, or are manufactured
with ozone-depleting substances; or
(2) Contain or use high global
warming potential hydrofluorocarbons;
and
(b) Addresses public disclosure of
greenhouse gas emissions and reduction
goals.
■ 8. Amend section 23.802 by—
■ a. Removing from paragraph (a)
‘‘hydrofluorocarbons; and’’ and adding
‘‘hydrofluorocarbons;’’ in its place;
■ b. Removing from paragraph (b)(2)
‘‘hydrofluorocarbons.’’ and adding
‘‘hydrofluorocarbons;’’ in its place; and
■ c. Adding paragraphs (c) and (d).
The additions read as follows:
Policy.
*
3. Amend section 4.1202 by
redesignating paragraphs (a)(25) through
(32) as paragraphs (a)(26) through (33),
respectively; and adding a new
paragraph (a)(25) to read as follows:
Jkt 241001
[Amended]
4. Amend section 23.000 by removing
from the end of the introductory text
‘‘and encouraging the safe operation of
vehicles by—’’ and adding ‘‘and for
encouraging the safe operation of
vehicles.’’ in its place; and removing
paragraphs (a) through (g).
■
23.802
PART 4—ADMINISTRATIVE MATTERS
00:00 Nov 18, 2016
23.000
23.800
■
VerDate Sep<11>2014
PART 23—ENVIRONMENT, ENERGY
AND WATER EFFICIENCY,
RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL
SAFETY, AND DRUG–FREE
WORKPLACE
7. Revise section 23.800 to read as
follows:
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 1, 4, 23, and 52 as
set forth below:
■
(a) * * *
(25) 52.223–22, Public Disclosure of
Greenhouse Gas Emissions and
Reduction Goals—Representation.
*
*
*
*
*
■
Dated: November 10, 2016.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
1.106
4.1202 Solicitation provision and contract
clause.
*
*
*
*
(c) Lead efforts to reduce greenhouse
gas emissions at the Federal level in
accordance with Executive Order 13693
and the President’s Climate Action Plan
of June 2013; and
(d) In order to better understand both
direct and indirect greenhouse gas
PO 00000
Frm 00006
Fmt 4701
Sfmt 4700
emissions that result from Federal
activities, require offerors that are
registered in the System for Award
Management (SAM) database and
received $7.5 million or more in Federal
contract awards in the prior Federal
fiscal year to—
(1) Represent whether they publicly
disclose greenhouse gas emissions;
(2) Represent whether they publicly
disclose a quantitative greenhouse gas
emissions reduction goal; and
(3) Provide the website for any such
disclosures.
■ 9. Amend section 23.804 by—
■ a. Revising the section heading;
■ b. Redesignating paragraphs (a)(1)
through (8) as paragraphs (a)(1)(i)
through (viii), and paragraph (a)
introductory text as paragraph (a)(1)
introductory text;
■ c. Redesignating the section
introductory text as paragraph (a)
introductory text, and removing from
the newly redesignated paragraph (a)
introductory text ‘‘areas, insert’’ and
adding ‘‘areas, the contracting officer
shall insert’’ in its place;
■ d. Redesignating paragraph (b)
introductory text as paragraph (a)(2)
introductory text, and paragraphs (b)(1)
and (2) as paragraphs (a)(2)(i) and (ii);
■ e. Redesignating paragraph (c)
introductory text as paragraph (a)(3)
introductory text, and paragraphs (c)(1)
and (2) as paragraphs (a)(3)(i) and (ii);
■ f. Redesignating paragraph (d)
introductory text as paragraph (a)(4)
introductory text, and paragraphs (d)(1)
and (2) as paragraphs (a)(4)(i) and (ii);
and
■ g. Adding a new paragraph (b).
The revision and addition reads as
follows:
23.804
Contract provision and clauses.
*
*
*
*
*
(b) The provision at 52.223–22, Public
Disclosure of Greenhouse Gas Emissions
and Reduction Goals—Representation,
is required only when 52.204–7, System
for Award Management, is included in
the solicitation (see 52.204–8, Annual
Representations and Certifications).
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
10. Amend section 52.204–8 by—
a. Revising the date of the provision;
b. Redesignating paragraphs
(c)(1)(xviii) through (xxiii) as paragraphs
(c)(1)(xix) through (xxiv), respectively;
and
■ c. Adding new paragraph (c)(1)(xviii).
The revision and addition reads as
follows:
■
■
■
52.204–8 Annual Representations and
Certifications.
*
E:\FR\FM\18NOR9.SGM
*
*
18NOR9
*
*
Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Rules and Regulations
where greenhouse gas emissions and/or
reduction goals are reported:_____.
Annual Representations and
Certifications (Dec 2016)
*
*
*
*
*
*
*
*
*
12. Amend section 52.213–4 by—
a. Revising the date of the clause; and
b. Removing from paragraph (b)(1)(xi)
‘‘FAR 23.804(a))’’ and adding ‘‘FAR
23.804(a)(1))’’ in its place.
The revision reads as follows:
*
■
■
■
(c)(1) * * *
(xviii) 52.223–22, Public Disclosure of
Greenhouse Gas Emissions and Reduction
Goals—Representation. This provision
applies to solicitations that include the
clause at 52.204–7.)
*
*
*
*
*
11. Amend section 52.212–3 by—
■ a. Revising the date of the provision;
■ b. Removing from the introductory
text ‘‘Web site located at https://
www.sam.gov/portal’’ ’’ and adding
‘‘Web site located at https://
www.sam.gov/portal.’’ in its place;
■ c. Removing from the introductory
text of the clause and paragraph (b)(2)
‘‘(c) through (s)’’ and adding ‘‘(c)
through (t)’’ in its place; and
■ d. Adding paragraph (t).
The revision and addition reads as
follows:
52.213–4 Terms and Conditions—
Simplified Acquisitions (Other Than
Commercial Items).
■
*
*
*
*
*
mstockstill on DSK3G9T082PROD with RULES6
*
*
*
*
*
*
*
[Amended]
13. Amend section 52.223–11 by
removing from the introductory text ‘‘in
23.804(a)’’ and adding ‘‘in 23.804(a)(1)’’
in its place.
52.223–12
[Amended]
14. Amend section 52.223–12 by
removing from the introductory text ‘‘in
23.804(b)’’ and adding ‘‘in 23.804(a)(2)’’
in its place.
■
*
52.223–20
Jkt 241001
standard with publicly available and
consistently applied criteria, such as the
Greenhouse Gas Protocol Corporate Standard.
(2) The Offeror (itself or through its
immediate owner or highest-level owner) [ ]
does, [ ] does not publicly disclose a
quantitative greenhouse gas emissions
reduction goal, i.e., make available on a
publicly available Web site a target to reduce
absolute emissions or emissions intensity by
a specific quantity or percentage.
(3) A publicly accessible Web site includes
the Offeror’s own Web site or a recognized,
third-party greenhouse gas emissions
reporting program.
(c) If the Offeror checked ‘‘does’’ in
paragraphs (b)(1) or (b)(2) of this provision,
respectively, the Offeror shall provide the
publicly accessible Web site(s) where
greenhouse gas emissions and/or reduction
goals are reported:_____.
(End of provision)
[FR Doc. 2016–27686 Filed 11–17–16; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[Amended]
15. Amend section 52.223–20 by
removing from the introductory text ‘‘in
23.804(c)’’ and adding ‘‘in 23.804(a)(3)’’
in its place.
48 CFR Parts 5, 14, 19, 22, 25, 28, 43,
47, 49, 52, and 53
52.223–21
RIN 9000–AN23
■
*
00:00 Nov 18, 2016
*
■
(t) Public Disclosure of Greenhouse Gas
Emissions and Reduction Goals. Applies in
all solicitations that require offerors to
register in SAM (52.212–1(k)).
(1) This representation shall be completed
if the Offeror received $7.5 million or more
in contract awards in the prior Federal fiscal
year. The representation is optional if the
Offeror received less than $7.5 million in
Federal contract awards in the prior Federal
fiscal year.
(2) Representation. [Offeror to check
applicable block(s) in paragraph (t)(2)(i) and
(ii)]. (i) The Offeror (itself or through its
immediate owner or highest-level owner) [ ]
does, [ ] does not publicly disclose
greenhouse gas emissions, i.e., makes
available on a publicly accessible Web site
the results of a greenhouse gas inventory,
performed in accordance with an accounting
standard with publicly available and
consistently applied criteria, such as the
Greenhouse Gas Protocol Corporate Standard.
(ii) The Offeror (itself or through its
immediate owner or highest-level owner) [ ]
does, [ ] does not publicly disclose a
quantitative greenhouse gas emissions
reduction goal, i.e., make available on a
publicly accessible Web site a target to
reduce absolute emissions or emissions
intensity by a specific quantity or percentage.
(iii) A publicly accessible Web site
includes the Offeror’s own Web site or a
recognized, third-party greenhouse gas
emissions reporting program.
(3) If the Offeror checked ‘‘does’’ in
paragraphs (t)(2)(i) or (t)(2)(ii) of this
provision, respectively, the Offeror shall
provide the publicly accessible Web site(s)
VerDate Sep<11>2014
*
52.223–11
Offeror Representations and
Certifications—Commercial Items (Dec
2016)
*
*
Terms and Conditions—Simplified
Acquisitions (Other Than Commercial
Items). (Dec 2016)
52.212–3 Offeror Representations and
Certifications—Commercial Items.
*
*
83097
[Amended]
16. Amend section 52.223–21 by
removing from the introductory
paragraph ‘‘in 23.804(d)’’ and adding
‘‘in 23.804(a)(4)’’ in its place.
■ 17. Add section 52.223–22 to read as
follows:
■
52.223–22 Public Disclosure of
Greenhouse Gas Emissions and Reduction
Goals—Representation.
As prescribed in 23.804(b), insert the
following provision:
Public Disclosure of Greenhouse Gas
Emissions and Reduction Goals—
Representation (Dec 2016)
(a) This representation shall be completed
if the Offeror received $7.5 million or more
in Federal contract awards in the prior
Federal fiscal year. The representation is
optional if the Offeror received less than $7.5
million in Federal contract awards in the
prior Federal fiscal year.
(b) Representation. [Offeror is to check
applicable blocks in paragraphs (b)(1) and
(2).]
(1) The Offeror (itself or through its
immediate owner or highest-level owner) [ ]
does, [ ] does not publicly disclose
greenhouse gas emissions, i.e., make
available on a publicly accessible Web site
the results of a greenhouse gas inventory,
performed in accordance with an accounting
PO 00000
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[FAC 2005–92; FAR Case 2015–035; Item
II; Docket No. 2015–0035, Sequence No. 1]
Federal Acquisition Regulation:
Removal of Regulations Relating to
Telegraphic Communication
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCY:
DoD, GSA, and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
delete the use of ‘‘telegram,’’
‘‘telegraph,’’ and related terms. The
objective is to delete references to
obsolete technologies no longer in use
and replace with references to electronic
communications. In addition,
conforming changes are made regarding
expedited notices of termination and
change orders.
DATES: Effective: December 19, 2016.
FOR FURTHER INFORMATION CONTACT: Ms.
Camara Francis, Procurement Analyst,
at 202–550–0935 for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat Division at
202–501–4755. Please cite FAC 2005–
92, FAR Case 2015–035.
SUMMARY:
E:\FR\FM\18NOR9.SGM
18NOR9
Agencies
[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)]
[Rules and Regulations]
[Pages 83092-83097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27686]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 4, 23, and 52
[FAC 2005-92; FAR Case 2015-024; Item I; Docket No. 2015-0024, Sequence
No. 1]
RIN 9000-AM90
Federal Acquisition Regulation; Public Disclosure of Greenhouse
Gas Emissions and Reduction Goals--Representation
AGENCY: Department of Defense (DoD), General Services Administration
(GSA),
[[Page 83093]]
and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to establish a representation for
offerors to indicate if and where they publicly disclose greenhouse gas
emissions and greenhouse gas reduction goals or targets.
DATES: Effective: December 19, 2016.
FOR FURTHER INFORMATION CONTACT: Mr. Charles Gray, Procurement Analyst,
at 703-795-6328 for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat Division at 202-501-4755. Please cite FAC 2005-92, FAR Case
2015-024.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 81 FR 33192 on May 25, 2016, containing a new FAR provision
that will enable the Federal Government to better understand the
greenhouse gas management practices of its industry partners. In
accordance with the provision, offerors seeking to do business with the
Federal Government that are registered in the System for Award
Management (SAM) database and received $7.5 million or more in contract
awards during the prior Federal fiscal year are required to represent
whether or not they publicly disclose their greenhouse gas emissions
and their greenhouse gas emissions reduction goals. This representation
is voluntary for offerors that received less than $7.5 million during
the prior fiscal year.
The information obtained from these representations will assist
agencies in developing strategies to engage with offerors to reduce
supply chain emissions, as directed in the Executive Order (E.O.)
13693, Planning for Federal Sustainability in the Next Decade.
Seventeen respondents submitted comments on the proposed rule.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the public comments in the
development of the final rule. A discussion of the comments and the
changes made to the rule as a result of those comments are provided as
follows:
A. Summary of Significant Changes
At FAR 52.212-3, Offeror Representations and Certifications--
Commercial Items, the representation at (t)(2)(i) has been revised to
clarify that the Greenhouse Gas Protocol Corporate Standard is an
example of a greenhouse gas accounting standard, and that the emissions
reduction goals are to be made accessible on a publicly accessible Web
site.
At FAR 52.223-22, Public Disclosure of Greenhouse Gas Emissions and
Reduction Goals--Representation, paragraph (b)(1) has been revised to
clarify that the Greenhouse Gas Protocol Corporate Standard is intended
to serve as an example of a greenhouse gas accounting standard. In
paragraph (b)(2) of the same provision, language has been added to
clarify that to disclose emissions reduction goals means to make such
goals available on a publicly accessible website.
B. Analysis of Public Comments
1. Support for the Rule
Comment: Most respondents expressed their support for the rule.
Response: The Councils appreciate and note the numerous comments
supporting this rule.
2. Legal Authority for the Rule
Comment: One respondent believed that the rule is not supported by
adequate legal authority, noting that the statement ``the rule is not
based in statute . . .'' appeared in the preamble of the Federal
Register notice. This respondent further stated that the rule must be
based on a grant or rulemaking authority from Congress, and they
believed in this instance there is no adequate nexus between the rule
and any rulemaking authority granted by Congress.
Response: The authority for this rule is E.O. 13693. The language
in question was in relation to 41 U.S.C. 1905, 1906, and 1907, which
require a listing of provisions of law that are inapplicable to
acquisitions under the simplified acquisition threshold (SAT), or for
commercial items including commercially available off-the-shelf (COTS)
items.
Statutory rulemaking authority for the FAR is listed in FAR rules
as 40 U.S.C. 121(c), 10 U.S.C. chapter 137, and 51 U.S.C. 20113.
3. Concerns Regarding the Need for Public Disclosure and Public Access
to Companies' Greenhouse Gas Emissions Inventory
The concerns expressed by respondents in this area generally fell
into four categories: (A) General concerns regarding the clarity of the
rule; (B) The use of equivalents to the Greenhouse Gas Corporate
Protocol Standard; (C) Reporting requirements for offeror's parent
company or for companies that are not the owner of facility; and (D)
Concerns regarding the proposed reporting thresholds.
(A) General Concerns Regarding the Clarity of the Rule
Comment: Several respondents stated that the rule was unclear
regarding its breadth and utility. One respondent commented that such
disclosures on a publicly accessible website may compromise trade
secrets or be the impetus for an overwhelming number of bid protests
and unacceptable delays. Another respondent expressed concern that the
Government would capture and use unreliable data generated and reported
by a third-party. Others raised concerns regarding the utility to the
rule without an industry-by-industry analysis, citing the analytical
methodology employed by the Environmental Protection Agency (EPA). Two
respondents remarked that the rule was unclear regarding the meaning of
the phrase ``available on a publicly accessible Web site.''
Response: This rule does not require offerors to disclose
greenhouse gas emissions and/or goals; rather, it requires offerors
seeking to do business with the Federal Government to represent whether
or not they do make such disclosures, and if so, provide the publicly
accessible website. As such, the rule will not lead to the inadvertent
disclosure of trade secrets by an offeror.
With regard to the reliability of the data obtained, the
representation relates only to information made available by the
offeror, regardless of where the information is hosted. Since an
offeror that responds affirmatively to the representation is also
required to provide the website address, the Government will only be
directed to the offeror's publicly accessible information.
This rule does not regulate industry, which is why the analytical
techniques employed by the EPA were not used. The purpose of the rule
is to obtain a better understanding of Federal supply chain greenhouse
gas emissions. Utilizing existing public information significantly
reduces the burden on potential offerors while providing useful
strategic information and encouraging transparency.
Finally, the plain meaning of the phrase ``available on a publicly
accessible Web site'' is that the information must be accessible to the
general public.
[[Page 83094]]
(B) Equivalents to the Greenhouse Gas Corporate Protocol Standard
Comment: Many respondents requested that the language, ``via a
recognized, third-party greenhouse gas emissions reporting program'' be
updated with language identifying specific reporting programs or
additional standards.
Response: In order for the Federal Government to gain insight into
its supplier actions, the regulation does not use language that will
limit its awareness of greenhouse gas (GHG) management practices;
however, the reference to ``recognized'' standards has been updated in
the final rule to ``accounting standards with publicly available and
consistently applied criteria'' in order to provide clarity to
respondents while allowing insight into any accounting methods used.
The standard was intentionally left open, so as not to require any
specific accounting or reporting methodology.
To further clarify this intent, the language in the final rule has
been amended to state that the Greenhouse Gas Protocol Corporate
Standard is intended to serve as an example of greenhouse gas
accounting standard, rather than the only acceptable standard.
(C) Reporting Requirements for Offerors' Parent Company or for
Companies That Are Not the Owner of the Facility
Comment: Many respondents sought clarification as to an offeror's
obligation to report on the greenhouse gas emissions management
practices of its parent or controlling entity or when it is not the
owner of the facility.
Response: The rule does not obligate offerors to report on the
emissions of their parent companies or the emissions management
practices of a facility that they do not own.
(D) Concerns Regarding the Proposed Reporting Thresholds
Comment: Although there was support for the $7.5 million threshold,
recognizing that it extends to a variety of companies with regard to
type, size, and location, a few comments suggested that the $7.5
million threshold was not the best definitive characterization for
reporting. Alternative reporting delineations proposed were an annual
facility emission of 25,000 tons or more of CO2 or
identification by North American Industry Classification System (NAICS)
codes to eliminate small businesses and non-greenhouse gas emitting
industries.
Response: In order to gain insight into its supplier actions, the
Government does not want to limit its awareness of greenhouse gas
management practices by limiting the information to specific emissions
thresholds (such as 25,000 tons of CO2) or NAICS codes. In
particular, the use of NAICS codes in this context may impose
artificial limitations; when registering in the SAM, offerors select
their primary NAICS code, even though they can and do work in other
areas.
4. Nitrogen Trifluoride Should Not Be Identified in the FAR as a
Greenhouse Gas
Comment: One respondent remarked that the proposal to include
nitrogen trifluoride in the definition for greenhouse gases at FAR
23.001 should be withdrawn since, unlike the other six greenhouse gases
already listed in the FAR, nitrogen trifluoride is not directly emitted
(the direct result of human activity) and therefore cannot be
identified and quantified for reporting purposes.
Response: Section 19 of E.O. 13693 identifies nitrogen trifluoride
as a greenhouse gas, and for this reason the definition for greenhouse
gas at FAR 23.001 includes nitrogen trifluoride.
5. Rule is Vague Regarding Requirements for Disclosure of Emissions
Reduction Goals
Comment: Some respondents stated that the requirements for
greenhouse gas emissions reduction goals were not sufficiently
stringent or specific. Many respondents were concerned that the
information obtained from the inventory would be of little use to
agencies and could negatively impact any polices developed.
Response: The intent of this rule is not to require greenhouse gas
emissions reduction goals, but to gather information regarding whether
or not such information is disclosed. To that end, further guidance has
been added in the final rule to clarify that to disclose emissions
reduction goals means to make such goals available on a publicly
accessible website.
Although the concerns regarding the usefulness of the inventory
information are noted, the information gathered will be considered with
a variety of other factors.
6. The Rule Is Unclear Whether the Information Obtained From the
Representations Would Be Used in Individual Procurements
Comment: Several respondents indicated that the purpose and benefit
of the rule is obscure. A number of these respondents expressed concern
that the representations set forth in the rule would place a company
that did not disclose its emissions inventory information at a
significant competitive disadvantage in comparison with companies that
did disclose during source selection.
Response: The rule does not establish evaluation criteria to be
used in a source selection decision.
7. The Rule Requires Reporting of Information Already Reported to Other
Agencies, Such as the EPA
Comment: A few respondents stated that certain large facilities and
companies already provided greenhouse gas emission information to the
EPA and therefore the new reporting in SAM would be redundant.
Response: The representations required by the rule indicate if and
where offerors publicly disclose greenhouse gas emissions and
greenhouse gas reduction goals rather than specific emission
information reported to EPA.
8. The Rule Needs To Specify the Scope of Emissions Being Represented
Comment: Several respondents commented that the rule should specify
the scope of greenhouse gas emissions in order to make the disclosure
meaningful.
Response: Understanding the source of emissions, (i.e., whether it
is a scope 1, 2, or 3 emission) is an important consideration within
the broader context of achieving greenhouse gas emission reductions.
However, the purpose of the rule is to obtain information regarding
whether offerors are publicly disclosing their greenhouse gas
emissions. Specifying that the disclosure must include the scope of the
greenhouse gas emission would limit the ability of the Government to
gather information on all types of reporting practices.
9. The Rule Should Not Exclude Commercial Item or COTS Item Vendors
From the Disclosure Requirements
Comment: One respondent remarked that if sellers of commercial
items and COTS items are exempted from the rule's disclosure
requirements, the rule's benefits would be sub-optimal.
Response: The rule does not provide an exemption for commercial
items and COTS items. All offerors that meet or exceed the rule's
threshold are required to provide the representation.
10. Out of Scope
Comment: Several respondents submitted comments encouraging the
Councils to take a more proactive approach to the rule. These
respondents
[[Page 83095]]
suggested various ways to strengthen the rule, such as--
Requiring Government agencies to take vendor emission
disclosures and emission reduction goals into consideration during
source selection;
Requiring vendors to disclose emissions information and
emissions reduction goals, as opposed to indicating ``whether or not''
they disclose;
Adding an option to have vendors identify ``serious'' or
``substantial'' reduction goals, noting that a 40 percent reduction
from the 2008 greenhouse gas baseline was mentioned in E.O. 13693;
Another respondent observed that the greenhouse gas
problem should not be attributed to the companies that sell greenhouse
gas-emitting products (such as fuels), but rather, the users that
consume these products. This respondent suggested that the Government
pursue a revenue neutral course of action.
Response: The Councils note and appreciate the suggestions offered
by these respondents; however, they are beyond the scope of the rule.
The rule is intended to be a low-burden, minimally intrusive effort to
report data in SAM that the Council on Environmental Quality will use
to develop an annual inventory, thus allowing for greater insight into
the greenhouse gas management practices of the Federal supplier base.
11. Rationale for the Removal of Paragraphs (a) Through (g) at FAR
23.000
Comment: One respondent did not understand the reasoning behind the
removal of FAR paragraphs 23.000(a) through (g), as these paragraphs
provided the means by which acquisitions based on ``improving the
quality of the environment . . .'' and their removal would lead to
subjective agency decisions.
Response: FAR 23.000 is an overview of the acquisitions policies
and procedures found in part 23. The rule amends the FAR to remove
information that is discussed in greater detail in other areas of part
23; however, the scope for the FAR part remains.
12. Consideration of Climate Change Risk
Note: The preamble of the Federal Register for the proposed rule
solicited public feedback regarding means and methods to enable
agencies to evaluate climate change risks and vulnerabilities. One of
the approaches put forth in the preamble was the inclusion of a new
representation that would allow offerors to indicate whether or not
they assess the risks imposed by extreme weather conditions and other
climate change effects, including the physical impacts of such risks.
It was also suggested that offerors should represent if they do or do
not discuss climate change risk in their filings with the Securities
and Exchange Commission. The comments received in response to climate
change risk assessment are summarized as follows:
Comment: Several respondents recommended including disclosure of
vendor climate risk analyses in addition to information about
greenhouse gas inventories. One respondent expressed the viewpoint that
the preferred location for such disclosure was the Securities and
Exchange Commission filing. However, one respondent believed that the
``does/does not'' model will not provide sufficient insight.
Response: The Councils extend their appreciation for the input
provided by the public regarding climate change risk assessment. It
will be critical to understand climate change risks moving forward.
C. Other Changes
A number of conforming changes were made to the final rule, due to
changes made in the FAR text since the publication of the proposed
rule.
III. Applicability to Acquisitions at or Below the Simplified
Acquisition Threshold, Commercial Items, and Commercially Available
Off-the-Shelf Items
This rule establishes a new provision at FAR 52.223-22, Public
Disclosure of Greenhouse Gas Emissions and Reductions Goals--
Representation, and establishes its commercial item equivalent at FAR
52.212-3, Offeror Representations and Certifications--Commercial Items.
The new provision requires offerors that received $7.5 million or more
in contracts from the Federal Government during the prior Federal
fiscal year, to represent whether or not they publicly disclose their
greenhouse gas emissions and whether or not they publicly disclose a
quantitative greenhouse gas emissions reduction goal. This information
will be used by the Federal Government to assess the scope of
greenhouse gas management undertaken by companies seeking to do
business with the Federal Government. Application of the provision in
solicitations and contracts at or below the SAT and to the acquisition
of commercial items, including COTS items, is necessary in order to
comply with E.O. 13693. If the requirements of the provision(s) are not
made applicable to acquisitions below the SAT, or to acquisitions for
commercial items or COTS items, the Government will be unable to obtain
valuable information from a large segment of its supplier base, which
in turn will undermine the overarching purpose of the rule.
41 U.S.C. 1905 through 1907 make certain provisions of law
inapplicable to solicitations and contracts at or below the SAT and to
the acquisition of commercial items, including COTS items, unless the
FAR Council/Administrator for Federal Procurement Policy determine that
such exemption from the statute(s) would not be in the best interest of
the Government. However, 41 U.S.C. 1905 through 1907 are only
applicable to statutory provisions, not Executive Orders.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is a significant regulatory action and, therefore, was subject to
review under Section 6(b) of E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This rule is not a major rule under 5
U.S.C. 804.
V. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared a Final Regulatory Flexibility
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5
U.S.C. 601, et seq. The FRFA is summarized as follows:
As stated in E.O. 13693, Federal agencies shall increase their
efficiency and improve their environmental performance, including
the reduction of greenhouse gas emissions across Federal operations
and the Federal supply chain. In keeping with this policy, the
objective of the rule is to obtain information from offerors that
will assist agencies in developing strategies to reduce supply chain
greenhouse emissions.
Specifically, the rule amends the Federal Acquisition Regulation
to create a new provision in which offerors that received $7.5
million in contract awards during the previous Federal fiscal year
(FY) are required to represent whether or not they publicly disclose
their greenhouse gas emissions and their greenhouse gas emissions
reduction goal. We anticipate this rule will apply to approximately
2,700 small entities, based on an analysis of FY 2015 Federal Data
Procurement Data (FPDS).
[[Page 83096]]
There were no significant issues raised by the public comments
in response to the initial regulatory flexibility analysis. The
reporting requirements for the rule are considered to be minimal,
and there is no recordkeeping associated with the disclosure
representation. The economic impact of the rule is minimized by the
fact that only offerors that received Federal awards in excess of
$7.5 million in the previous Federal fiscal year are required to
make this representation.
Interested parties may obtain a copy of the FRFA from the
Regulatory Secretariat Division. The Regulatory Secretariat Division
has submitted a copy of the FRFA to the Chief Counsel for Advocacy of
the Small Business Administration.
VI. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies. The
rule contains information collection requirements. OMB has cleared this
information collection requirement under OMB Control Number 9000-0194,
titled: Public Disclosure of Greenhouse Gas Emissions and Reduction
Goals--Representation, in the amount of 1,375 burden hours.
List of Subjects in 48 CFR Parts 1, 4, 23, and 52
Government procurement.
Dated: November 10, 2016.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 4, 23, and 52
as set forth below:
0
1. The authority citation for 48 CFR parts 1, 4, 23, and 52 continues
to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
1.106 [Amended]
0
2. Amend section 1.106 in the table following the introductory text, by
adding in numerical sequence, FAR segment ``52.223-22'' and its
corresponding OMB control number ``9000-0194''.
PART 4--ADMINISTRATIVE MATTERS
0
3. Amend section 4.1202 by redesignating paragraphs (a)(25) through
(32) as paragraphs (a)(26) through (33), respectively; and adding a new
paragraph (a)(25) to read as follows:
4.1202 Solicitation provision and contract clause.
(a) * * *
(25) 52.223-22, Public Disclosure of Greenhouse Gas Emissions and
Reduction Goals--Representation.
* * * * *
PART 23--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE
23.000 [Amended]
0
4. Amend section 23.000 by removing from the end of the introductory
text ``and encouraging the safe operation of vehicles by--'' and adding
``and for encouraging the safe operation of vehicles.'' in its place;
and removing paragraphs (a) through (g).
23.001 [Amended]
0
5. Amend section 23.001 in the definition ``Greenhouse gases'' by
removing ``perflourocarbons,'' and adding ``perflourocarbons, nitrogen
triflouride,'' in its place.
0
6. Revise subpart 23.8 heading to read as follows:
Subpart 23.8--Ozone-Depleting Substances and Greenhouse Gases
0
7. Revise section 23.800 to read as follows:
23.800 Scope of subpart.
This subpart--
(a) Sets forth policies and procedures for the acquisition of items
that--
(1) Contain, use, or are manufactured with ozone-depleting
substances; or
(2) Contain or use high global warming potential
hydrofluorocarbons; and
(b) Addresses public disclosure of greenhouse gas emissions and
reduction goals.
0
8. Amend section 23.802 by--
0
a. Removing from paragraph (a) ``hydrofluorocarbons; and'' and adding
``hydrofluorocarbons;'' in its place;
0
b. Removing from paragraph (b)(2) ``hydrofluorocarbons.'' and adding
``hydrofluorocarbons;'' in its place; and
0
c. Adding paragraphs (c) and (d).
The additions read as follows:
23.802 Policy.
* * * * *
(c) Lead efforts to reduce greenhouse gas emissions at the Federal
level in accordance with Executive Order 13693 and the President's
Climate Action Plan of June 2013; and
(d) In order to better understand both direct and indirect
greenhouse gas emissions that result from Federal activities, require
offerors that are registered in the System for Award Management (SAM)
database and received $7.5 million or more in Federal contract awards
in the prior Federal fiscal year to--
(1) Represent whether they publicly disclose greenhouse gas
emissions;
(2) Represent whether they publicly disclose a quantitative
greenhouse gas emissions reduction goal; and
(3) Provide the website for any such disclosures.
0
9. Amend section 23.804 by--
0
a. Revising the section heading;
0
b. Redesignating paragraphs (a)(1) through (8) as paragraphs (a)(1)(i)
through (viii), and paragraph (a) introductory text as paragraph (a)(1)
introductory text;
0
c. Redesignating the section introductory text as paragraph (a)
introductory text, and removing from the newly redesignated paragraph
(a) introductory text ``areas, insert'' and adding ``areas, the
contracting officer shall insert'' in its place;
0
d. Redesignating paragraph (b) introductory text as paragraph (a)(2)
introductory text, and paragraphs (b)(1) and (2) as paragraphs
(a)(2)(i) and (ii);
0
e. Redesignating paragraph (c) introductory text as paragraph (a)(3)
introductory text, and paragraphs (c)(1) and (2) as paragraphs
(a)(3)(i) and (ii);
0
f. Redesignating paragraph (d) introductory text as paragraph (a)(4)
introductory text, and paragraphs (d)(1) and (2) as paragraphs
(a)(4)(i) and (ii); and
0
g. Adding a new paragraph (b).
The revision and addition reads as follows:
23.804 Contract provision and clauses.
* * * * *
(b) The provision at 52.223-22, Public Disclosure of Greenhouse Gas
Emissions and Reduction Goals--Representation, is required only when
52.204-7, System for Award Management, is included in the solicitation
(see 52.204-8, Annual Representations and Certifications).
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
10. Amend section 52.204-8 by--
0
a. Revising the date of the provision;
0
b. Redesignating paragraphs (c)(1)(xviii) through (xxiii) as paragraphs
(c)(1)(xix) through (xxiv), respectively; and
0
c. Adding new paragraph (c)(1)(xviii).
The revision and addition reads as follows:
52.204-8 Annual Representations and Certifications.
* * * * *
[[Page 83097]]
Annual Representations and Certifications (Dec 2016)
* * * * *
(c)(1) * * *
(xviii) 52.223-22, Public Disclosure of Greenhouse Gas Emissions
and Reduction Goals--Representation. This provision applies to
solicitations that include the clause at 52.204-7.)
* * * * *
0
11. Amend section 52.212-3 by--
0
a. Revising the date of the provision;
0
b. Removing from the introductory text ``Web site located at https://www.sam.gov/portal'' '' and adding ``Web site located at https://www.sam.gov/portal.'' in its place;
0
c. Removing from the introductory text of the clause and paragraph
(b)(2) ``(c) through (s)'' and adding ``(c) through (t)'' in its place;
and
0
d. Adding paragraph (t).
The revision and addition reads as follows:
52.212-3 Offeror Representations and Certifications--Commercial Items.
* * * * *
Offeror Representations and Certifications--Commercial Items (Dec 2016)
* * * * *
(t) Public Disclosure of Greenhouse Gas Emissions and Reduction
Goals. Applies in all solicitations that require offerors to
register in SAM (52.212-1(k)).
(1) This representation shall be completed if the Offeror
received $7.5 million or more in contract awards in the prior
Federal fiscal year. The representation is optional if the Offeror
received less than $7.5 million in Federal contract awards in the
prior Federal fiscal year.
(2) Representation. [Offeror to check applicable block(s) in
paragraph (t)(2)(i) and (ii)]. (i) The Offeror (itself or through
its immediate owner or highest-level owner) [ ] does, [ ] does not
publicly disclose greenhouse gas emissions, i.e., makes available on
a publicly accessible Web site the results of a greenhouse gas
inventory, performed in accordance with an accounting standard with
publicly available and consistently applied criteria, such as the
Greenhouse Gas Protocol Corporate Standard.
(ii) The Offeror (itself or through its immediate owner or
highest-level owner) [ ] does, [ ] does not publicly disclose a
quantitative greenhouse gas emissions reduction goal, i.e., make
available on a publicly accessible Web site a target to reduce
absolute emissions or emissions intensity by a specific quantity or
percentage.
(iii) A publicly accessible Web site includes the Offeror's own
Web site or a recognized, third-party greenhouse gas emissions
reporting program.
(3) If the Offeror checked ``does'' in paragraphs (t)(2)(i) or
(t)(2)(ii) of this provision, respectively, the Offeror shall
provide the publicly accessible Web site(s) where greenhouse gas
emissions and/or reduction goals are reported:_____.
* * * * *
0
12. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (b)(1)(xi) ``FAR 23.804(a))'' and adding
``FAR 23.804(a)(1))'' in its place.
The revision reads as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Items). (Dec 2016)
* * * * *
52.223-11 [Amended]
0
13. Amend section 52.223-11 by removing from the introductory text ``in
23.804(a)'' and adding ``in 23.804(a)(1)'' in its place.
52.223-12 [Amended]
0
14. Amend section 52.223-12 by removing from the introductory text ``in
23.804(b)'' and adding ``in 23.804(a)(2)'' in its place.
52.223-20 [Amended]
0
15. Amend section 52.223-20 by removing from the introductory text ``in
23.804(c)'' and adding ``in 23.804(a)(3)'' in its place.
52.223-21 [Amended]
0
16. Amend section 52.223-21 by removing from the introductory paragraph
``in 23.804(d)'' and adding ``in 23.804(a)(4)'' in its place.
0
17. Add section 52.223-22 to read as follows:
52.223-22 Public Disclosure of Greenhouse Gas Emissions and Reduction
Goals--Representation.
As prescribed in 23.804(b), insert the following provision:
Public Disclosure of Greenhouse Gas Emissions and Reduction Goals--
Representation (Dec 2016)
(a) This representation shall be completed if the Offeror
received $7.5 million or more in Federal contract awards in the
prior Federal fiscal year. The representation is optional if the
Offeror received less than $7.5 million in Federal contract awards
in the prior Federal fiscal year.
(b) Representation. [Offeror is to check applicable blocks in
paragraphs (b)(1) and (2).]
(1) The Offeror (itself or through its immediate owner or
highest-level owner) [ ] does, [ ] does not publicly disclose
greenhouse gas emissions, i.e., make available on a publicly
accessible Web site the results of a greenhouse gas inventory,
performed in accordance with an accounting standard with publicly
available and consistently applied criteria, such as the Greenhouse
Gas Protocol Corporate Standard.
(2) The Offeror (itself or through its immediate owner or
highest-level owner) [ ] does, [ ] does not publicly disclose a
quantitative greenhouse gas emissions reduction goal, i.e., make
available on a publicly available Web site a target to reduce
absolute emissions or emissions intensity by a specific quantity or
percentage.
(3) A publicly accessible Web site includes the Offeror's own
Web site or a recognized, third-party greenhouse gas emissions
reporting program.
(c) If the Offeror checked ``does'' in paragraphs (b)(1) or
(b)(2) of this provision, respectively, the Offeror shall provide
the publicly accessible Web site(s) where greenhouse gas emissions
and/or reduction goals are reported:_____.
(End of provision)
[FR Doc. 2016-27686 Filed 11-17-16; 8:45 am]
BILLING CODE 6820-EP-P