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Government Contracting Accounting and Compliance Developments Conference
June 7&8, 2012
8:00 AM
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Last week, the Federal Acquisition Regulations Council released an interim rule on green procurement, requiring that the head of each agency ensure that 95 percent of new contract actions are for products and services that are energy efficient, water efficient, bio-based, environmentally preferable or non-ozone depleting, adhering to criteria set out by the Environmental Protection Agency and the Agriculture Department. The agencies also must aim to procure items that contain recycled content and are nontoxic.
Spearheaded by the Defense Department, NASA and the General Services Administration, this new policy, is part of the Obama administration's campaign to lead by example in sustainable purchasing. The policy also requires all federal contractors to support the government's goals in environmental management, and includes new requirements for electronic or other paper-saving methods for submitting documents required by contracts.
The interim rule on green procurement it is a follow-up to President Obama's 2009 executive order on green management that sets sustainability goals for Federal agencies and focuses on making improvements in their environmental, energy and economic performance.
The Executive Order requires agencies to meet a number of energy, water, and waste reduction targets, including:
30% reduction in vehicle fleet petroleum use by 2020;
26% improvement in water efficiency by 2020;
50% recycling and waste diversion by 2015;
95% of all applicable contracts will meet sustainability requirements;
Implementation of the 2030 net-zero-energy building requirement;
Implementation of the stormwater provisions of the Energy Independence and Security Act of 2007, section 438; and
Development of guidance for sustainable Federal building locations in alignment with the Livability Principles put forward by the Department of Housing and Urban Development, the Department of Transportation, and the Environmental Protection Agency.
Support sustainable communities
Leverage Federal purchasing power to promote environmentally-responsible products and technologies to foster markets in these sectors.