(Washington, D.C.) - Today, House Science, Space, and Technology Committee Chairman Brian Babin (R-TX) and former Investigations and Oversight Subcommittee Chairman Jay Obernolte (R-CA) released statements celebrating the withdrawal of a problematic Biden Administration proposed regulation to outsource emissions requirements to a controversial foreign entity.
Under the proposed rule, the Federal Acquisition Regulatory (FAR) Council would have required government contractors to disclose their greenhouse gas emissions and develop emission reduction targets to be validated and approved by an international non-governmental organization known as the Science Based Target Initiative (SBTi).
Not only would these emissions disclosures to a foreign organization have created significant national security issues, but the foreign entity given power to oversee U.S. contractors was under scrutiny for conflicts of interest and manipulation of emissions metrics. A committee investigation found further conflicts of interest at the White House Council on Environmental Quality (CEQ) as well as inappropriate attempts by Biden Administration employees to influence the development of the proposed rule, and a pattern of misleading Members of Congress on the specifics of the rulemaking process.
“From day one, this proposed rule put Green New Deal priorities above our national security and ability to procure critical products from American contractors,” Babin said. “The oversight conducted by this committee, under the leadership of former Chairman Frank Lucas, uncovered blatant favoritism, attempts to subvert the rulemaking process, and a pattern of providing misleading information to Members of Congress. By uncovering and calling attention to the significant shortcomings of this rulemaking, we demanded transparent government and an ethical procurement process. The withdrawal of this proposed regulation is a win for American interests.”
“This withdrawal is a victory for transparency, ethical governance, and American interests. This proposed regulation both jeopardized our national security and epitomized the potential pitfalls of government overreach and questionable processes that result in the Administration picking winners and losers,” Obernolte said. “The extensive oversight conducted by our committee revealed alarming conflicts of interest that would have handed inappropriate authority to a controversial foreign organization. By holding the Administration accountable and shining a light on these troubling practices, we’ve safeguarded the integrity of our procurement process and reinforced the principle that America’s policies must always serve its citizens first.”
Background:
The committee first called attention to these issues with letters to FAR and CEQ in March of 2023 from Lucas, Babin, Obernolte, and former Environment Subcommittee Chairman Max Miller.
In August of 2023, Lucas raised further concerns with the Office of Management and Budget (OMB).
In September of 2023, Obernolte held an Investigations and Oversight Subcommittee hearing on the proposed rule.
In November of 2023, Obernolte and Miller held a joint subcommittee hearing to question CEQ on their rulemaking process.
In January of 2024, the committee released a staff memo detailing the preliminary results of the ongoing investigation into the proposed rule.
In February of 2024, Lucas and Obernolte sent a letter to CEQ Chair Brenda Mallory questioning whether CEQ withheld information from the committee during its hearings. They also sent a letter to Sherry Madera, Chief Executive Officer of the Carbon Disclosure Project (CDP), requesting information regarding CDP’s involvement with CEQ and efforts to influence FAR and its proposed rulemaking.
In May of 2024, Lucas demanded that CEQ cease all further attempts to obstruct and delay the committee’s investigation and immediately hand over all documents requested in the March 2023 letter.