A proposed rule by the U.S. Department of Defense may hold contractors accountable for ensuring that the fuel they supply for military operations overseas is not sourced from prohibited countries, including Iran. According to journalist Jennifer Doherty’s report on Law360, the regulation was proposed on February 14, 2024, and if finalized, could potentially lead to significant changes in fuel sourcing for contractors providing support for U.S. military operations abroad.
Based on this proposal, contractors could face an added layer of verification responsibilities to show compliance with the Department of Defense’s rules regarding fuel sourcing. It is still unclear how these new requirements would be enforced and what consequences noncompliant contractors might face. Further details will be provided as additional information about this proposed rule becomes available.