Letter to Mr. Mathew C. Blum, Acting Administrator, Office of Federal Procurement Policy (June 8, 2023)

Summary

Letter dated June 8, 2023, from Committee on Small Business Chairman Roger Williams to Mr. Mathew C. Blum, Acting Administrator, Office of Federal Procurement Policy, about the recent proposed rule change to the Federal Acquisition Regulation (FAR). The letter states the rule would require certain federal contractors to disclose greenhouse gas emissions and monetary climate-related risks and to create targets to reduce emissions. It states it appears that the FAR Council may not have properly considered small entities during this rulemaking process. The Committee requests information as soon as possible but no later than June 22, 2023, including the statutory requirements to examine the rule's impact on small businesses and the additional compliance costs associated with the rule.

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Full text

                                                  June 8, 2023

Mr. Mathew C. Blum
Acting Administrator
Office of Federal Procurement Policy
Office of Management and Budget
Washington, DC 20503

Dear Mr. Blum:

        The House Committee on Small Business (the Committee) writes to inquire about the
recent proposed rule change to the Federal Acquisition Regulation (FAR). This rule would
require certain federal contractors to disclose greenhouse gas emissions and monetary climate-
related risks, along with requiring them to create targets to reduce emissions.1 As outlined by the
U.S. Small Business Administration (SBA) Office of Advocacy, the fixed costs imposed by the
rule will disproportionately impact small businesses in the federal contracting space.2 This is
especially troubling when considering that new small business federal contracts have fallen by
60 percent over the last decade.3 It appears that the FAR Council may not have properly
considered small entities during this rulemaking process.

       It is important for agencies to properly consider small businesses interests, which make
up 99.9 percent of all businesses in the United States, when passing any new rule. America’s
small businesses deserve to have their voices heard and considered. We therefore request the
following information as soon as possible but no later than June 22, 2023:

    1. What are your statutory requirements to examine this rule’s impact on small businesses?

    2. How many small businesses will be impacted by this rule?

    3. What additional compliance costs on small businesses are associated with this new rule?

    4. Where can small businesses go to examine your analysis on the impacts this rule will
       have on their operations?

1
  Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk, 87
Fed. Reg. 68412 (Nov. 14, 2022).
2
  Letter from Major L. Clark, III, et al., Dep. Chief Counsel, Small Bus. Admin. Office of Advocacy, to Regulatory
Secretariat, Fed. Acquisition Regulation Council (Feb. 10, 2023).
3
  Press Release, The White House, Statements and Releases, FACT SHEET: Biden-⁠Harris Administration
Announces Reforms to Increase Equity and Level the Playing Field for Underserved Small Business Owners (Dec.
2, 2021).
Mr. Mathew C. Blum
June 8, 2023
Page 2 of 2


      5. What alternatives have been considered to lessen the impacts on small businesses?

       To schedule the delivery of your response or ask any related follow-up questions, please
contact Committee on Small Business Majority Staff at (202) 225-5821. The Committee on
Small Business has broad authority to investigate “problems of all types of small business” under
House Rule X. Thank you in advance for your cooperation with this inquiry.”

                                            Sincerely,




                                       Roger Williams
                                           Chairman
                                   Committee on Small Business




cc:      The Honorable Nydia M. Velasquez, Ranking Member
         Committee on Small Business


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