Recent Court Decisions on Climate Programs and Opportunities for Small Businesses

In recent months, a series of court rulings have paused national CO2 initiatives which previously hampered growth, affecting the way various climate actions are supported across the board. These legal decisions could have far-reaching implications not just for the cost of living in the U.S., but also for small businesses, especially those looking to contract with the federal government.

If you’re a small or medium-sized business (SMB) that’s either interested in or currently working with government contracts, the evolving landscape of climate policy could have direct and indirect impacts on your operations and growth. So let’s break it down, what has been happening, and how can you navigate these changes to leverage opportunities that are still available?

The Ruling Overview

Several courts have recently made rulings that significantly limit the ability of federal agencies to implement ambitious climate policies. For instance, the U.S. Supreme Court ruled regarding the Environmental Protection Agency’s (EPA) authority to regulate carbon emissions, emphasizing that any major changes require explicit authorization from Congress. The implications here are noteworthy. While the courts are scaling back regulatory powers, many more localized and area-specific climate actions remain and can potentially benefit or threaten small businesses.

For SMBs, this means that while broader federal initiatives may be stalled, there’s still potential for growth in localized projects, particularly under programs designed for small service providers and contractors. For example, companies can seek to participate in state-level energy initiatives or local government programs aiming to improve energy efficiency and production.

Recently Funded companies

1. Vulcan Elements
   • Received $620 million loan from the DoD and $50 million equity investment from the Commerce Department.
   • Building a 10,000 metric ton rare earth magnet facility in the U.S.
     
2. ReElement Technologies (subsidiary of American Resources Corp.)
   • Received $80 million loan from the DoD for rare earth recycling and refining.
   • Partnered with Vulcan Elements to build a domestic magnet supply chain.
     
3. MP Materials
   • Received multi-billion-dollar support from the Pentagon to expand rare earth magnet production at its Texas facility.
   • Operates the Mountain Pass mine in California.
     
4. Energy Fuels Inc.
   • Partnered with Vulcan Elements to build a U.S.-based rare earth supply chain.
   • Received federal backing for refining capabilities.
     
5. REAlloys Inc.
   • Signed a strategic partnership with Japan’s JOGMEC and is expected to receive U.S. government support for magnet production and rare earth separation.
   • Developing facilities in Ohio and Saskatchewan.
     
6. Cheniere Energy
   • Received $5.6 billion in government subsidies since 2000.
   • Benefits from federal support for LNG infrastructure and exports.
     
7. Venture Global LNG
   • Received $4.3 billion in subsidies.
   • Active in LNG export terminals and infrastructure development.
     
8. Sempra Energy
   • Received $3.8 billion in subsidies.
   • Engaged in natural gas and electricity infrastructure projects.
     
9. NextEra Energy
   • Received $3.4 billion in subsidies.
   • Though focused on renewables, it also operates natural gas assets.
     
10. Inflation Reduction Act Methane Monitoring Program (Various Recipients)
    • $300 million allocated by the Department of Energy for methane emissions reduction in oil and gas operations.
    • Funding distributed to multiple companies and research institutions.

How Small Businesses Can Take Advantage

1. Engage with Local Opportunities:
With larger federal programs facing hurdles, small businesses should closely monitor and engage with local and state initiatives around energy, raw materials and sustainability. This is a ripe opportunity for businesses whether you’re categorized under veteran-owned, women-owned, minority-owned, or those within HUBZone regions.

2. Consider Government Certifications:
Many SMBs are unaware of the benefits that come with certifications such as 8(a), VOSB (Veteran-Owned Small Business), SDVOSB (Service-Disabled Veteran-Owned Small Business), and HUBZone. These programs can offer resources and access to contracts specifically set aside for qualified small businesses. Learn more about government certifications here.

3. Stay Informed on Policy Changes:
Maintaining a sharp awareness of environmental and funding policies can be advantageous. By keeping track of state and local updates, your business can anticipate potential projects where you might supply services or products.

4. Collaborate with Local Governments:
Many municipalities are committed to growth initiatives and may require local contractors for projects. This includes energy efficiency upgrades, renewable installations, and IT consulting services. Dive deeper into how local government contracting works by talking with your Select GCR consultants.

5. Access Funding and Resources:
Various programs and grants exist to help small businesses transition to more modern practices. Familiarizing yourself with available funding opportunities can provide financial support for projects related to energy efficiency, clean tech, or other industrial-focused initiatives.

Seeking Government Contracts

How you navigate the landscape of government contracting is crucial if your SMB aims to expand its reach into federal contracts. While immediate opportunities might seem limited due to recent court decisions and shutdown, the fact remains that government spending on industrialization initiatives continues.

Take the opportunity to prepare your business for future projects through careful planning and eligibility assessment for government contracts. Here are key considerations:

– Registering on SAM and GSA:
If your business has not yet registered on the System for Award Management (SAM) or the General Services Administration (GSA) schedules, now is the time to get started. Registration opens up complete access to all federal contract opportunities. To learn how to register, check out our SAM registration.

– Bid Strategically:
Be prepared to craft enticing bids for upcoming projects focusing on energy efficiency or renewable resources. The competition can be tough, but knowing how to position your SMB can set you apart from the rest. Find bidding strategies here.

Leveraging Our Expertise at Select GCR

At Select GCR, we specialize in helping small businesses like yours navigate the complexities of government contracting. Our resources are designed specifically for companies targeting government work, especially those with a commitment to sustainability and environmental initiatives. Whether you’re venturing into government contracts for the first time or looking to expand your existing engagement, we provide insights, tools, and support to simplify the process.

– Strategic Consulting:
Our team offers tailored consulting services to help you understand your eligibility for various government contracts, funding opportunities, or partnerships. More about our consulting services can be found here.

– Training Programs:
We offer training programs for small business owners to navigate federal contracting—equip yourself with the knowledge to effectively prepare bids, manage contracts, and meet compliance standards. Information on our training programs is available here.

Conclusion

While recent court rulings on major climate initiatives might dampen some federal activities, the door remains open for small businesses to innovate and find footing in government contracting, particularly around mining, drilling and factory projects. By staying informed on local and state efforts, taking advantage of certifications, registering for government platforms, and leveraging the resources at Select GCR, your SMB can position itself effectively for future growth.

As we continue to witness the intersection of small business needs and government contracting, remember that opportunities abound for those who seek them out. Preparing your business now can mean success in securing contracts down the road, as the push for domestic manufacturing as scale is far from over.

Sources:

1. The Hill. (2021). Courts Move To Hamstring Climate Actions Across The Board. 

2. U.S. Environmental Protection Agency. 2023. Greenhouse Gas Emissions Report. 

3. U.S. Small Business Administration. 2022. Small Business Policy Guidelines. 

With this in mind, we invite you to take the next steps toward government contracting success through the featured resources at Select GCR.