New Executive Orders Expedite the Need for Contractors to Go Green

Earth globe sitting on grass

The new orders aim to help achieve the Administration’s ambitious goal of eliminating carbon from the nation’s power supply by 2035.

August 22, 2022
Vince Calio - Construction Executive

The importance of going green just became even more crucial for small construction companies, as President Joe Biden signed three executive orders on June 6, 2022, aimed at boosting clean energy construction projects and the use of domestically manufactured clean energy technology.

Specifically, the orders require the U.S. Department of Energy to deploy the use of the Defense Production Act of 1950 to expand American manufacturing of solar panel parts, environmentally friendly building insulation, heat pumps, equipment for making clean power-generating fuels and critical power grid infrastructure. Federal construction contracts will also require local contractors to use eco-friendly materials.

According to an announcement from the White House, the order will encourage the use of project labor agreements that offer wages “above and beyond the prevailing rate and include local hire provisions.” The order will also encourage clean construction projects in low-income areas burdened by legacy pollution.

Reprinted courtesy of Vince Calio, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.



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