The Potential Impact of Executive Actions on Select Environmental and Cybersecurity Initiatives

Published: January 22, 2025

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New executive actions end sustainability rules and open questions about pending cybersecurity rules.

President Donald Trump promised immediate changes to the federal regulatory environment upon assuming office, and yesterday he began that process by issuing dozens of executive orders. The orders cover a wide variety of regulatory subjects and put a freeze on policies and rules implemented by the previous administration. The president issued so many new orders, in fact, that it is difficult to keep track of them all. Today’s post take a look at a select number of changes to the federal regulatory regime and the potential impact that these could have on the contracting community.

Environmental Sustainability

Of all the orders signed by the president, probably the most far reaching is the one called “Unleashing American Energy.” This executive order rescinded dozens of executive orders signed under the previous administration, including several dealing with sustainability. Some proposed or recently implemented rules will be immediately affected, including the following:

Federal Supplier Climate Risks and Resilience: This proposed rule would have amended the Federal Acquisition Regulations (FAR) to require federal suppliers to publicly disclose greenhouse gas (GHG) emissions and climate-related financial risk. The new rule was supposed to appear by the end of September 2024, but was never published.

It is almost certain that contractors will not need to adhere to this rule, meaning the need to collect the metrics required and report on them will not proceed. This should reduce the financial burden associated with such activities.

Net Zero Procurement: This May 2024 rule amended the FAR to require federal suppliers to procure sustainable products and services to the maximum extent possible.

The Net Zero rule already appears as a requirement in solicitations. I suspect that soon after new agency heads are confirmed, it will be removed from acquisition documents, in particular because of the requirement in the “Unleashing American Energy” EO stating that rules which “impose an undue burden on the identification, development, or use of domestic energy resources” be identified and suspended. This action could open a wider array of products and services to industry at a lower cost.  

Framework for Climate Resilience and Security: Published by the White House in September 2024, this policy calls for the government to assess climate-related threats and opportunities, establish public-private partnerships to develop response strategies, and to invest in the resilience of U.S. supply chains.

Expect this policy to be fully rescinded, which could again open a wider array of products and services to industry at a lower cost.

Cybersecurity

Although President Trump did not issue any orders specifically relating to cybersecurity, he is sure to get around to the issue soon. There are a few key federal acquisition provisions related to contractor cybersecurity that are worth watching.

First, the Department of Defense’s Cyber Maturity Model Certification (CMMC) program is poised to launch this calendar year. The DOD posted its final CMMC program rule in October 2024, stating that the corresponding acquisition contract rule will be released in early-mid 2025. The DOD initiated CMMC in 2019 during the first Trump Administration and has been under development ever since. Time will tell if the new Trump DOD taps the breaks on this timeline by delaying the final rule.

Second, in mid-January, the FAR Council released a draft rule on how contractors and subcontractors handle Controlled Unclassified Information (CUI). This draft rule would apply the same National Institute of Standards and Technology (NIST) cybersecurity standards undergirding CMMC to contractors and subs across all federal agencies. The draft rule is open for public/industry comment through March 17, 2025, and there is no published timeline when an interim or final rule might come or what the final requirements might entail. It is possible that the incoming Secretary of Defense will review this pending rule and recommend changes based on new administration priorities.