GSA Training Conference and Expo 2010

Learn What's New with the

BioPreferred ProgramJeff Goodman

Chief, EnvironmentalManagement Division

USDA

Steve DevlinProgram Manager

Iowa State University

Discussion Topics

• Overview of BioPreferredSM Program

• USDA’s role

• Implementation strategy

• Program updates

− Designated items

− Labeling program

• Revising program guidelines

• Timeline

2

What is BioPreferred?

• USDA brand name for Biobased Markets Program established in Farm Bill

• Identifies and seeks to establish new markets for biobased products

• Two major program elements:

– Federal procurement preference program requires Federal agencies and contractors to purchase qualifying products

– Voluntary labeling program will allow product vendors to use a USDA logo to identify qualifying products

3

What are biobased products?

• Biobased products are those the Secretary of Agriculture determines to be composed in whole or large part of renewable agricultural or forestry materials

• Biobased products can include plant, animal, and marine materials

4

Why promote biobased products?

• Climate Change Impact Reduction —Qualifying biobased products reduce introduction of new fossil carbon into atmosphere

• Energy/Environmental Security — Biobased products replace petroleum products, helping to increase U.S. energy and environmental security and independence

• Economic Development — Biobased products create “green” jobs

5

Why Promote Biobased (con’t.)?

In addition to the reasons on the last slide, it’s the law!

6

Speaking of the law…

• Farm Security and Rural Investment Act of 2002 (2002 Farm Bill)

• Food, Conservation and Energy Act of 2008 (2008 Farm Bill)

• Energy Policy Act of 2005 - Sections 205 and 943

• Executive Order 13423 - January 24, 2007

• FAR Updated - November 7, 2008

7

2008 Farm Bill Changes

• Updates definition of biobased product

• Permits designation of intermediate ingredients and feedstocks and certain products derived from them

• Permits labeling of intermediate ingredients, feedstocks, and complex products

• Directs USDA to establish national registry of testing centers

• Specifies detailed reportingrequirements

• Requires management plan8

Implementation Strategy

9

Vision

Mission

Strategic Goals

To contribute to reducing the Nation’s dependence on foreign oil, strengthening the economy, and preserving the environment through the increased use of biobased products

To facilitate the development and expansion of markets for biobased products

Increase the Federal procurement of biobased products government-wide

Increase biobased market development through the voluntary-labeling program

Federal Procurement Preference

One year following designation of biobased items in the Federal Register, Federal departments and agencies must give a procurement preference to designated items composed of biobased products unless those items:

• Are not reasonably available;

• Do not perform adequately; or

• Are not reasonably priced.

10

USDA’s Role in Federal Procurement

Preference Program

• Establish Guidelines (published January 11, 2005)

• Designate BioPreferred items - or generic groupings of biobased products that receive procurement preference

• Establish BioPreferred model procurement program

11

Item Designation Process

• Information collection

• Testing and evaluation

– Biobased content measurement

– Environmental life-cycle assessment

• Determination of minimum biobased content

• Preparation and publishing of proposed rule

• Evaluation of public comments

• Promulgation of final rule12

Designated Items

• 42 items have been designated

• Currently, Federal procurement preference in place for 33 items

• Preference for remaining nine items effective this October … but there’s no need to wait!

• Over 4,500 products represented

• Many products used in:

– Construction

– Food service

– Custodial dervices

– Operations and maintenance

13

Designated Items: Construction

14

Product Category Min. Content Product Category Min.

Content Carpets 7% Hydraulic Fluids Chain and Cable Lubricants 77% Mobile Equipment 44% Composite Panels Stationary Equipment 44%

Acoustical 37% Industrial Cleaners 41% Interior 55% Metalworking Fluids Plastic Lumber 23% General Purpose 57% Structural Interior 89% High Performance 40% Structural Wall 94% Parts Washing Solution 65%

Concrete and Asphalt Release Fluids

87% Plastic Insulating Foam 7%

Forming Lubricants 68% Roof Coatings 20% Fluid-filled Transformers Water Tank Coatings 59%

Synthetic Ester-based 66% Wood and Concrete Sealers Vegetable Oil-based 95% Membrane Concrete

Sealers 11%

Penetrating Liquids 79%

Why are those minimum biobased percentages all over the place?

Performance!

15

Designated Items: Food Service

16

Product Category Min.

Content Disposable Containers 72% Disposal Cutlery 48% Food Cleaners 53%

Designated Items: Custodial Services

17

Product Category Min. Content Product Category Min.

Content Adhesive and Mastic Removers

58% Floor Strippers 78%

Bathroom and Spa Cleaners 74% General Purpose Household Cleaners

39%

Carpet and Upholstery Cleaners Glass Cleaners 49% General Purpose 54% Graffiti and Grease

Removers 34%

Spot Remover 7% Laundry Products Films General Purpose 34%

Non-durable 85% Pretreatment/Spot Removers

46%

Semi-durable 45% Multipurpose Cleaners 56%

Designated Items:Operations and Maintenance

18

Product Category Min. Content Product Category Min.

Content 2-Cycle Engine Oils 34% Greases Corrosion Preventatives 53% Food Grade 42% Diesel Fuel Additives 90% Multipurpose 72% Dust Suppresants 85% Other 75% Fertilizers 71% Rail Truck 30% Gear Lubricants 58% Track 77% General Purpose Deicers 93% Penetrating Lubricants 68%

Sorbents 89%

Designated Items: Miscellaneous

19

Product Category Min.

Content Bedding, Bed Linens, and Towels

12%

Firearm Lubricants 49% Hand Cleaners 64% Hand Sanitizers 73% Lip Care Products 82%

Round 6 Proposed Items

20

Category Item Min.

Content Construction and Industrial

Expanded Polystyrene Foam Recycling Products

90%

Food Service Disposable Tablewear 72% Operations and Maintenance

Heat Transfer Fluids 89% Ink Removers and Cleaners 79% Mulch and Compost Cleaners 95% Multipurpose Lubricants 88% Turbine Drip Oils 87%

Miscellaneous Topical Pain Relief Products 91%

Labeling Program

• Voluntary labeling program allows use of BioPreferred logo to identify qualifying biobased products

• Label will apply to productand/or packaging

• Proposed rule published July 2009

• Review and commentperiod and market research completed

• Final rule under preparation

21

Purpose of Label

22

• Expand product use

• Increase availability of information to consumer

• Help manufacturers market biobased products

• Unbiased source and indicator of biobased content

Revising Program Guidelines

• 2008 Farm Bill provisions related to intermediates and feedstocks requires USDA to revise BioPreferred program guidelines

• In addition, program guidelines are five years old and need an overhaul

• Revision strategy– Identify key issues– Hold public meetings to gather input– Publish revisions as proposed rule in

Federal Register– Revise proposed rule based on public

comment and finalize program guidelines23

Program Guideline Key Issue Areas

• Designation of intermediates and feedstocks

• Designation of complex assembly products

• Environmental life-cycle assessment

Note: These three issue areas became the subjects of three public meetings.

24

Intermediates and Feedstocks

• Designate intermediate ingredients and feedstocks used to produce items subject to Federal procurement preference

• Automatically designate items composed of intermediate ingredients and feedstocks

− If content of designated intermediate ingredients and feedstocks exceeds 50% of item

− Unless Secretary determines different percentage is appropriate

25

Intermediates and Feedstocks:Simplified Manufacturing

Process Flow

26

Starch Dextrose Lactic Acid

Bioplastic Polymer

Finished Product

What should we designate?

Intermediates and Feedstocks (con’t.)

27

Starch Dextrose Lactic Acid

Bioplastic Polymer

Finished Product

This is the major intermediate sold in commerce

Intermediates and Feedstocks (con’t.)

28

Unfortunately, the real world is slightly more complicated than our simple example.

Intermediates and Feedstocks (con’t.)

29

Intermediates and Feedstocks (con’t.)

30

And that’s only a simplified representation of the biobased manufacturing industry!

Intermediates and Feedstocks:Key Issues

• What types of materials to designate• How to prioritize the designation of

intermediates and feedstocks• How to design the process whereby

downstream products are automatically designated following the designation of an intermediate or feedstock

Note: Federal government does not generally purchase intermediates and feedstocks.

31

Designating Complex Products

• Complex assembly products are those with multiple components (ex: automobiles, office furniture, mattresses)

• Currently, there are no approved testing methods for determining biobased content of complex products

• Revised guidelines will need to await approved testing methods or determine decision rules for designating complex products based on testing individual components

32

Complex Products:Automobile Biobased

Components

33

Bio-Based Resins

Soy-Based FoamsBio-Fillers in

Plastics

Natural Fiber Reinforced

Plastics

Sustainable Fabrics

Source: Ford Motor Company

Environmental Life-Cycle Assessment

• Farm Bill requires program guidelines “…to provide information as to the … environmental and public health benefits of such materials and items…”

• Existing program guidelines use environmental life-cycle assessment (LCA) to provide that information

• LCA examines environmental impacts throughout the product’s life-cycle including manufacturing, use, and end-of-life disposition

34

Environmental LCA (con’t.)

• USDA has adopted Building for Environmental and Economic Sustainability (BEES) model

• Evaluates impacts for 12 environmental and public health impacts such as global warming and human health, and ecological toxicity

• Integrates impacts into a single score based upon a predetermined weighting scheme

• Methodology is comprehensive and accepted in scientific circles

35

BEES Concerns• Expensive

• Difficult for the procurement community to understand

• Produces a score that only has meaning in comparison to other products that have been evaluated

• BEES scores are not factored into the designation process

• Bottom line: benefits may not be commensurate with costs

Key LCA issue: Is there a better way to do it?

36

FY 2010 BioPreferred Timeline

37

Jan Feb Mar Apr May Jun Jul Aug

Program Guidelines

Public Meetings

Final Labeling Rule Published

in Fed.Reg.

GSA Expo/ BioPreferred

Training

Actual date

Estimated date

Proposed Round 6 Rule Published in

Fed.Reg.

Proposed Round 7 Rule Published in

Fed.Reg.

FinalRound 5 Rule Published in

Fed.Reg.

Oct Nov Dec Sep

Revised Draft

Program Guidelines

For Further Information:

• Jeff Goodman, Departmental Management, Environmental Management Division jeffrey.goodman@dm.usda.gov, (202) 401-4747

• Ron Buckhalt, Departmental Management, Environmental Management Division ronb.buckhalt@dm.usda.gov, (202) 205-4008

• Steve Devlin, Iowa State University, sdevlin@iastate.edu, (641) 613-3298

• Website: http://www.biopreferred.gov38