Designation of Biobased Items for Federal Procurement, 55089-55094 [E9-25756]
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55089
Rules and Regulations
Federal Register
Vol. 74, No. 206
Tuesday, October 27, 2009
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Office of Energy Policy and New Uses
7 CFR Part 2902
RIN 0503–AA33
Designation of Biobased Items for
Federal Procurement
AGENCY: Departmental Administration,
USDA.
ACTION: Final rule.
The U.S. Department of
Agriculture (USDA) is amending its
Guidelines for Designating Biobased
Products for Federal Procurement, to
add nine sections to designate items
within which biobased products will be
afforded Federal procurement
preference, as provided for under
section 9002 of the Farm Security and
Rural Investment Act of 2002, as
amended by the Food, Conservation,
and Energy Act of 2008 (FCEA) (referred
to in this document as ‘‘section 9002’’).
USDA also is establishing a minimum
biobased content for each of these items.
DATES: This rule is effective November
27, 2009.
FOR FURTHER INFORMATION CONTACT: Ron
Buckhalt, USDA, Office of Procurement
and Property Management, 342
Reporters Building, 300 7th St. SW.,
Washington, DC 20024; e-mail:
biopreferred@usda.gov; phone (202)
205–4008. Information regarding the
preferred procurement program (one
part of the BioPreferred Program) is
available on the Internet at https://
www.biopreferred.gov.
SUPPLEMENTARY INFORMATION: The
information presented in this preamble
is organized as follows:
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SUMMARY:
I. Authority
II. Background
III. Discussion of Public Comments
IV. Regulatory Information
Executive Order 12866: Regulatory
Planning and Review
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Regulatory Flexibility Act (RFA)
Executive Order 12630: Governmental
Actions and Interference With
Constitutionally Protected Property
Rights
Executive Order 12988: Civil Justice
Reform
Executive Order 13132: Federalism
Unfunded Mandates Reform Act of 1995
Executive Order 12372: Intergovernmental
Review of Federal Programs
Executive Order 13175: Consultation and
Coordination With Indian Tribal
Governments
Paperwork Reduction Act
E-Government Act Compliance
I. Authority
These items are designated under the
authority of section 9002 of the Farm
Security and Rural Investment Act of
2002 (FSRIA), as amended by the Food,
Conservation, and Energy Act of 2008
(FCEA), 7 U.S.C. 8102 (referred to in
this document as ‘‘section 9002’’).
II. Background
As part of the BioPreferred Program,
USDA published on October 23, 2008, a
proposed rule in the Federal Register
(FR) for the purpose of designating a
total of nine items for the preferred
procurement of biobased products by
Federal agencies (referred to hereafter in
this FR notice as the ‘‘preferred
procurement program’’). This proposed
rule can be found at 73 FR 63298. This
rulemaking is referred to in this
preamble as Round 5 (RIN 0503–AA33).
In the proposed rule, USDA proposed
designating the following nine items for
the preferred procurement program:
Chain and cable lubricants; corrosion
preventatives; food cleaners; forming
lubricants; gear lubricants; general
purpose household cleaners; industrial
cleaners; multipurpose cleaners; and
parts wash solutions.
Today’s final rule designates the
proposed items within which biobased
products will be afforded Federal
procurement preference. USDA has
determined that each of the items being
designated under today’s rulemaking
meets the necessary statutory
requirements; that they are being
produced with biobased products; and
that their procurement will carry out the
following objectives of section 9002: To
improve demand for biobased products;
to spur development of the industrial
base through value-added agricultural
processing and manufacturing in rural
communities; and to enhance the
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Nation’s energy security by substituting
biobased products for products derived
from imported oil and natural gas.
When USDA designates by
rulemaking an item (a generic grouping
of products) for preferred procurement
under the BioPreferred Program,
manufacturers of all products under the
umbrella of that item that meet the
requirements to qualify for preferred
procurement can claim that status for
their products. To qualify for preferred
procurement, a product must be within
a designated item and must contain at
least the minimum biobased content
established for the designated item.
When the designation of specific items
is finalized, USDA will invite the
manufacturers of these qualifying
products to post information on the
product, contacts, and performance
testing on its BioPreferred Web site,
https://www.biopreferred.gov. Procuring
agencies will be able to utilize this Web
site as one tool to determine the
availability of qualifying biobased
products under a designated item. Once
USDA designates an item, procuring
agencies are required generally to
purchase biobased products within
these designated items where the
purchase price of the procurement item
exceeds $10,000 or where the quantity
of such items or of functionally
equivalent items purchased over the
preceding fiscal year equaled $10,000 or
more.
Subcategorization. Most of the items
USDA is considering for designation for
preferred procurement cover a wide
range of products. For some items, there
are subgroups of products within the
item that meet different markets and
uses and/or different performance
specifications. Where such subgroups
exist, USDA intends to create
subcategories within the designated
items.
During the development of the
proposal, USDA considered the
appropriateness of creating
subcategories within the general
purpose household cleaners, industrial
cleaners, and multipurpose cleaners
items. At that time, however, USDA did
not have sufficient information to justify
creating subcategories within these
items. In the proposed rule, USDA
requested additional information on the
possibility of subcategorizing these
three items. USDA did not receive any
additional information on these items
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during the public comment period that
could be used to support the creation of
subcategories at this time. Thus, none of
the items being designated today have
subcategories. USDA will continue to
consider additional information that
may become available to support
subcategorization of these items in the
future.
Overlap with EPA’s Comprehensive
Procurement Guideline program for
recovered content products. Some of the
products that are biobased items
designated for preferred procurement
may also be items the Environmental
Protection Agency (EPA) has designated
under the EPA’s Comprehensive
Procurement Guideline (CPG) for
Products Containing Recovered
Materials. Where that occurs, an EPAdesignated recovered content product
(also known as ‘‘recycled content
products’’ or ‘‘EPA-designated
products’’) has priority in Federal
procurement over the qualifying
biobased product as identified in 7 CFR
2902.2. In situations where it believes
there may be an overlap, USDA is
asking manufacturers of qualifying
biobased products to provide additional
product and performance information to
Federal agencies to assist them in
determining whether the biobased
products in question are, or are not, the
same products for the same uses as the
recovered content products. As this
information becomes available, USDA
will place it on the BioPreferred Web
site with its catalog of qualifying
biobased products.
In cases where USDA believes an
overlap with EPA-designated recovered
content products may occur,
manufacturers are being asked to
indicate the various suggested uses of
their product and the performance
standards against which a particular
product has been tested. In addition,
depending on the type of biobased
product, manufacturers are being asked
to provide other types of information,
such as whether the product contains
petroleum-based components and
whether the product contains recovered
materials. Federal agencies may also ask
manufacturers for information on a
product’s biobased content and its
profile against environmental and
health measures and life-cycle costs (the
Building for Environmental and
Economic Sustainability (BEES) analysis
or ASTM Standard D7075 for evaluating
and reporting on environmental
performance of biobased products).
Such information will permit agencies
to determine whether or not an overlap
occurs.
Section 6002 of the Resource
Conservation and Recovery Act (RCRA)
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requires a procuring agency purchasing
an item designated by EPA generally to
purchase such items composed of the
highest percentage of recovered
materials content practicable. However,
a procuring agency may decide not to
purchase such an item based on a
determination that the item fails to meet
the reasonable performance standards or
specifications of the procuring agency.
An item with recovered materials
content may not meet reasonable
performance standards or specifications,
for example, if the use of the item with
recovered materials content would
jeopardize the intended end use of the
item.
Where a biobased item is used for the
same purposes and to meet the same
Federal agency performance
requirements as an EPA-designated
recovered content product, the Federal
agency must purchase the recovered
content product. For example, if a
biobased hydraulic fluid is to be used as
a fluid in hydraulic systems and
because ‘‘lubricating oils containing rerefined oil’’ has already been designated
by EPA for that purpose, then the
Federal agency must purchase the EPAdesignated recovered content product,
‘‘lubricating oils containing re-refined
oil.’’ If, on the other hand, that biobased
hydraulic fluid is to be used to address
a Federal agency’s certain
environmental or health performance
requirements that the EPA-designated
recovered content product would not
meet, then the biobased product should
be given preference, subject to cost,
availability, and performance.
This final rule designates one item for
preferred procurement for which there
may be overlap with EPA-designated
recovered content products. This item is
gear lubricants. Depending on how they
are to be used, qualifying products
under this item may overlap with the
EPA-designated recovered content
products ‘‘lubricating oils containing rerefined oil.’’ EPA provides recovered
materials content recommendations for
this recovered content product in a
Recovered Materials Advisory Notice
(RMAN I). The RMAN
recommendations for each of this CPG
product can be found by accessing
EPA’s Web site https://www.epa.gov/
epaoswer/non-hw/procure/
products.htm and then clicking on the
appropriate product name.
Minimum Biobased Contents. The
minimum biobased contents being
established with today’s rulemaking are
based on products for which USDA has
biobased content test data. In addition
to considering the biobased content test
data for each item, USDA also considers
other factors when establishing the
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minimum biobased content. These other
factors include: Public comments
received on the proposed minimum
biobased contents; product performance
information to justify the inclusion of
products at lower levels of biobased
content; and the range, groupings, and
breaks in the biobased content test data
array. Consideration of this information
allows USDA to establish minimum
biobased contents on a broad set of
factors to assist the Federal procurement
community in its decision to purchase
biobased products.
USDA makes every effort to obtain
biobased content test data on multiple
products within each item. For most
designated items, USDA has biobased
content test data on more than one
product within a designated item.
However, USDA must rely on biobased
product manufacturers to voluntarily
submit product information and, in
some cases, USDA has been able to
obtain biobased content data for only a
single product within a designated item.
As USDA obtains additional data on the
biobased contents for products within
these nine designated items, USDA will
evaluate whether the minimum
biobased content for a designated item
will be revised.
USDA anticipates that the minimum
biobased content of an item that is based
on a single product is more likely to
change as additional products in those
items are identified and tested. In
today’s rulemaking, none of the
minimum biobased contents are based
on a single tested product.
For all items where additional
information indicates that it is
appropriate to revise a minimum
biobased content established under
today’s rulemaking, USDA will propose
the change in a notice in the Federal
Register to allow public comment on
the proposed revised minimum
biobased content. USDA will then
consider the public comments and issue
a final rulemaking on the minimum
biobased content.
Future Designations. In making future
designations, USDA will continue to
conduct market searches to identify
manufacturers of biobased products
within items. USDA will then contact
the identified manufacturers to solicit
samples of their products for voluntary
submission for biobased content testing
or for the BEES analytical tool. Based on
these results, USDA will then propose
new items for designation for preferred
procurement.
USDA plans to identify approximately
10–15 items in each future rulemaking.
USDA has developed a preliminary list
of items for future designation. This list
is available on the BioPreferred Web
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site. While this list presents an initial
prioritization of items for designation,
USDA cannot identify with any
certainty which items will be presented
in each of the future rulemakings. In
response to comments from other
Federal Agencies, USDA intends to give
increased priority to those items that
contain the highest biobased content. In
addition, as the program matures,
manufacturers of biobased products
within some industry segments have
become more responsive to USDA’s
requests for technical information than
those in other segments. Thus, items
with high biobased content and for
which sufficient technical information
can be obtained quickly may be added
or moved up on the prioritization list.
USDA intends to update the list of items
for future designation on the
Biopreferred Web site every six months,
or more often if significant changes are
made to the list.
Exemptions. In earlier item
designation rules, USDA created
exemptions from the preferred
procurement program’s requirements for
procurements involving combat or
combat-related missions and for
spacecraft systems and launch support
equipment. Since publication of those
final rules in the Federal Register, and
in response to comments from the
Department of Defense (DoD), USDA has
decided to create ‘‘blanket’’ exemptions
for all items used in products or systems
designed or procured for combat or
combat-related missions, which will
apply to all items designated for the
procurement preference. These
‘‘blanket’’ exemptions can be found in
subpart A of part 2902. Because these
blanket exemptions are included in
subpart A of part 2902, it is unnecessary
to repeat them in the individual item
designations in this final rule.
III. Discussion of Public Comments
USDA solicited comments on the
proposed rule for 60 days ending on
December 22, 2008. No public
comments were received and no
additional technical information has
been collected to justify revising the
proposed rule. Thus, today’s action
finalizes the designation of the nine
items within which biobased products
will be afforded Federal procurement
preference, as proposed. USDA
encourages manufacturers, vendors, and
purchasers of biobased products within
these nine designated items to continue
to submit information relative to
products available within these items. If
sufficient supporting information
becomes available, USDA will consider
amending today’s rulemaking by
creating subcategories within the items,
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raising (or lowering) the minimum
biobased content, or other appropriate
actions.
IV. Regulatory Information
A. Executive Order 12866: Regulatory
Planning and Review
This action has been determined
significant for purposes of Executive
Order 12866 and, therefore, has been
reviewed by the Office of Management
and Budget. We are not able to quantify
the annual economic effect associated
with this final rule. As discussed in the
proposed rule, USDA made extensive
efforts to obtain information on the
Federal agencies’ usage within the nine
designated items. These efforts were
largely unsuccessful. Therefore attempts
to quantify the economic impact of this
rule would require estimation of the
anticipated market penetration of
biobased products based upon many
assumptions. In addition, because
agencies have the option of not
purchasing designated items if costs are
‘‘unreasonable,’’ the product is not
readily available, or the product does
not demonstrate necessary performance
characteristics, certain assumptions may
not be valid. While facing these
quantitative challenges, USDA relied
upon a qualitative assessment to
determine the impacts of this
rulemaking. This assessment was based
primarily on the offsetting nature of the
program (an increase in biobased
products purchased with a
corresponding decrease in petroleum
products purchased). Consideration was
also given to the fact that agencies may
choose not procure designated items
due to unreasonable costs.
1. Summary of Impacts
This rulemaking is expected to have
both positive and negative impacts to
individual businesses, including small
businesses. USDA anticipates that the
biobased preferred procurement
program will provide additional
opportunities for businesses and
manufacturers to begin supplying
products under the designated biobased
items to Federal agencies and their
contractors. However, other businesses
and manufacturers that supply only
non-qualifying products and do not
offer biobased alternatives may
experience a decrease in demand from
Federal agencies and their contractors.
USDA is unable to determine the
number of businesses, including small
businesses, that may be adversely
affected by this rule. The rule, however,
will not affect existing purchase orders,
nor will it preclude businesses from
modifying their product lines to meet
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new requirements for designated
biobased products. Because the extent to
which procuring agencies will find the
performance and costs of biobased
products acceptable is unknown, it is
impossible to quantify the actual
economic effect of the rule.
2. Benefits of the rule
The designation of these nine items
provides the benefits outlined in the
objectives of section 9002: To increase
domestic demand for many agricultural
commodities that can serve as
feedstocks for production of biobased
products; to spur development of the
industrial base through value-added
agricultural processing and
manufacturing in rural communities;
and to enhance the Nation’s energy
security by substituting biobased
products for products derived from
imported oil and natural gas. On a
national and regional level, this rule can
result in expanding and strengthening
markets for biobased materials used in
these items.
3. Costs of the rule
Like the benefits, the costs of this rule
have not been quantified. Two types of
costs are involved: Costs to producers of
products that will compete with the
preferred products and costs to Federal
agencies to provide procurement
preference for the preferred products.
Producers of competing products may
face a decrease in demand for their
products to the extent Federal agencies
refrain from purchasing their products.
However, it is not known to what extent
this may occur. Procurement costs for
Federal agencies may rise as they
evaluate the availability and relative
cost of preferred products before making
a purchase.
B. Regulatory Flexibility Act (RFA)
When an agency issues a final rule
following a proposed rule, the
Regulatory Flexibility Act (RFA, 5
U.S.C. 601–612) requires the agency to
prepare a final regulatory flexibility
analysis. 5 U.S.C. 604. However, the
requirement for a final regulatory
flexibility analysis does not apply if the
head of the agency certifies that the rule
will not, if promulgated, have a
significant economic impact on a
substantial number of small entities. 5
U.S.C. 605(b).
USDA evaluated the potential impacts
of its designation of these items to
determine whether its actions would
have a significant impact on a
substantial number of small entities.
Because the preferred procurement
program established under section 9002
applies only to Federal agencies and
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their contractors, small governmental
(city, county, etc.) agencies are not
affected. Thus, this rule will not have a
significant economic impact on small
governmental jurisdictions.
USDA anticipates that this program
will benefit entities, both large and
small, that manufacture or sell biobased
products. For example, the designation
of items for preferred procurement will
provide additional opportunities for
businesses to manufacture and sell
biobased products to Federal agencies
and their contractors. Similar
opportunities will be provided for
entities that supply biobased materials
to manufacturers.
The intent of section 9002 is largely
to stimulate the production of new
biobased products and to energize
emerging markets for those products.
Because the program is still in its
infancy, however, it is unknown how
many businesses will ultimately be
affected. While USDA has no data on
the number of small businesses that may
choose to develop and market biobased
products within the items designated by
this rulemaking, the number is expected
to be small. Because biobased products
represent a small emerging market, only
a small percentage of all manufacturers,
large or small, are expected to develop
and market biobased products. Thus,
the number of small businesses
manufacturing biobased products
affected by this rulemaking is not
expected to be substantial.
The preferred procurement program
may decrease opportunities for
businesses that manufacture or sell nonbiobased products or provide
components for the manufacturing of
such products. Most manufacturers of
non-biobased products within the items
being designated for preferred
procurement in this final rule are
expected to be included under NAICS
codes 324191 (Petroleum lubricating oil
and grease manufacturing), 325611
(Soap and other detergent
manufacturing), or 325612 (Polish and
other sanitation goods manufacturing).
USDA obtained information on these
three NAICS categories from the U.S.
Census Bureau’s Economic Census
database. USDA found that the
Economic Census reports about 1,500
companies within these three NAICS
categories and that nearly all of these
companies (about 1,490) report less than
500 employees. Thus, nearly all of the
businesses fall within the Small
Business Administration’s definition of
a small business (less than 500
employees, in most NAICS categories).
USDA does not have data on the
potential adverse impacts on
manufacturers of non-biobased products
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within the items being designated, but
believes that the impact will not be
significant. The items being designated
in this rulemaking are, in general terms,
either cleaning products or lubricating
products. These products are widely
used by the general public and by
industrial/commercial establishments
that are not subject to this rulemaking.
Thus, USDA believes that the number of
small businesses manufacturing nonbiobased products within the items
being designated and selling significant
quantities of those products to
government agencies affected by this
rulemaking to be relatively low. Also,
this rule will not affect existing
purchase orders and it will not preclude
procuring agencies from continuing to
purchase non-biobased items under
certain conditions relating to the
availability, performance, or cost of
biobased items. This rule will also not
preclude businesses from modifying
their product lines to meet new
specifications or solicitation
requirements for these products
containing biobased materials. Thus, the
economic impacts of this rule are not
expected to be significant.
After considering the economic
impacts of this rule on small entities,
USDA certifies that this action will not
have a significant economic impact on
a substantial number of small entities.
While not a factor relevant to
determining whether the rule will have
a significant impact for RFA purposes,
USDA has concluded that the effect of
the rule will be to provide positive
opportunities to businesses engaged in
the manufacture of these biobased
products. Purchase and use of these
biobased products by procuring
agencies increase demand for these
products and result in private sector
development of new technologies,
creating business and employment
opportunities that enhance local,
regional, and national economies.
Technological innovation associated
with the use of biobased materials can
translate into economic growth and
increased industry competitiveness
worldwide, thereby, creating
opportunities for small entities.
C. Executive Order 12630:
Governmental Actions and Interference
With Constitutionally Protected Property
Rights
This rule has been reviewed in
accordance with Executive Order 12630,
Governmental Actions and Interference
with Constitutionally Protected Property
Rights, and does not contain policies
that would have implications for these
rights.
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D. Executive Order 12988: Civil Justice
Reform
This rule has been reviewed in
accordance with Executive Order 12988,
Civil Justice Reform. This rule does not
preempt State or local laws, is not
intended to have retroactive effect, and
does not involve administrative appeals.
E. Executive Order 13132: Federalism
This rule does not have sufficient
federalism implications to warrant the
preparation of a Federalism Assessment.
Provisions of this rule will not have a
substantial direct effect on States or
their political subdivisions or on the
distribution of power and
responsibilities among the various
government levels.
F. Unfunded Mandates Reform Act of
1995
This rule contains no Federal
mandates under the regulatory
provisions of Title II of the Unfunded
Mandates Reform Act of 1995 (UMRA),
2 U.S.C. 1531–1538, for State, local, and
tribal governments, or the private sector.
Therefore, a statement under section
202 of UMRA is not required.
G. Executive Order 12372:
Intergovernmental Review of Federal
Programs
For the reasons set forth in the Final
Rule Related Notice for 7 CFR part 3015,
subpart V (48 FR 29115, June 24, 1983),
this program is excluded from the scope
of the Executive Order 12372, which
requires intergovernmental consultation
with State and local officials. This
program does not directly affect State
and local governments. Although there
is no statutory requirement to do so, we
believe that, in the long term, many
State and local governments will
implement similar purchase programs
based on the BioPreferred Program.
USDA has been charged by Congress to
share information on the BioPreferred
Program with State and local
governments.
H. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
Today’s rule does not significantly or
uniquely affect ‘‘one or more Indian
tribes,* * * the relationship between
the Federal Government and Indian
tribes, or * * * the distribution of
power and responsibilities between the
Federal Government and Indian tribes.’’
Thus, no further action is required
under Executive Order 13175.
I. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
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through 3520), the information
collection under this rule is currently
approved under OMB control number
0503–0011.
J. E-Government Act Compliance
The Office of Procurement and
Property Management is committed to
compliance with the E-Government Act,
which requires Government agencies in
general to provide the public the option
of submitting information or transacting
business electronically to the maximum
extent possible. USDA is implementing
an electronic information system for
posting information voluntarily
submitted by manufacturers or vendors
on the products they intend to offer for
preferred procurement under each
designated item. For information
pertinent to E-Government Act
compliance related to this rule, please
contact Ron Buckhalt at (202) 205–4008.
List of Subjects in 7 CFR Part 2902
Biobased products, Procurement.
For the reasons stated in the preamble,
the Department of Agriculture is
amending 7 CFR chapter XXIX as
follows:
■
CHAPTER XXIX—OFFICE OF ENERGY
POLICY AND NEW USES
PART 2902—GUIDELINES FOR
DESIGNATING BIOBASED PRODUCTS
FOR FEDERAL PROCUREMENT
1. The authority citation for part 2902
continues to read as follows:
■
Authority: 7 U.S.C. 8102.
2. Add §§ 2902.43 through 2902.51 to
subpart B to read as follows:
■
Sec.
2902.43 Chain and cable lubricants.
2902.44 Corrosion preventatives.
2902.45 Food cleaners.
2902.46 Forming lubricants.
2902.47 Gear lubricants.
2902.48 General purpose household
cleaners.
2902.49 Industrial cleaners.
2902.50 Multipurpose cleaners.
2902.51 Parts wash solutions.
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§ 2902.43
Chain and cable lubricants.
(a) Definition. Products designed to
provide lubrication in such applications
as bar and roller chains, sprockets, and
wire ropes and cables. Products may
also prevent rust and corrosion in these
applications.
(b) Minimum biobased content. The
preferred procurement product must
have a minimum biobased content of at
least 77 percent, which shall be based
on the amount of qualifying biobased
carbon in the product as a percent of the
weight (mass) of the total organic carbon
in the finished product.
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(c) Preference compliance date. No
later than October 27, 2010, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased chain and cable
lubricants. By that date, Federal
agencies that have the responsibility for
drafting or reviewing specifications for
items to be procured shall ensure that
the relevant specifications require the
use of biobased chain and cable
lubricants.
§ 2902.44
Corrosion preventatives.
(a) Definition. Products designed to
prevent the deterioration (corrosion) of
metals.
(b) Minimum biobased content. The
preferred procurement product must
have a minimum biobased content of at
least 53 percent, which shall be based
on the amount of qualifying biobased
carbon in the product as a percent of the
weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No
later than October 27, 2010, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased corrosion
preventatives. By that date, Federal
agencies that have the responsibility for
drafting or reviewing specifications for
items to be procured shall ensure that
the relevant specifications require the
use of biobased corrosion preventatives.
§ 2902.45
Food cleaners.
(a) Definition. Anti-microbial
products designed to clean the outer
layer of various food products, such as
fruit, vegetables, and meats.
(b) Minimum biobased content. The
preferred procurement product must
have a minimum biobased content of at
least 53 percent, which shall be based
on the amount of qualifying biobased
carbon in the product as a percent of the
weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No
later than October 27, 2010, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased food cleaners. By
that date, Federal agencies that have the
responsibility for drafting or reviewing
specifications for items to be procured
shall ensure that the relevant
specifications require the use of
biobased food cleaners.
§ 2902.46
Forming lubricants.
(a) Definition. Products designed to
provide lubrication during
metalworking applications that are
performed under extreme pressure.
Such metalworking applications include
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55093
tube bending, stretch forming, press
braking, and swaging.
(b) Minimum biobased content. The
preferred procurement product must
have a minimum biobased content of at
least 68 percent, which shall be based
on the amount of qualifying biobased
carbon in the product as a percent of the
weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No
later than October 27, 2010, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased forming lubricants.
By that date, Federal agencies that have
the responsibility for drafting or
reviewing specifications for items to be
procured shall ensure that the relevant
specifications require the use of
biobased forming lubricants.
§ 2902.47
Gear lubricants.
(a) Definition. Products, such as
greases or oils, that are designed to
reduce friction when applied to a
toothed machine part (such as a wheel
or cylinder) that meshes with another
toothed part to transmit motion or to
change speed or direction.
(b) Minimum biobased content. The
preferred procurement product must
have a minimum biobased content of at
least 58 percent, which shall be based
on the amount of qualifying biobased
carbon in the product as a percent of the
weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No
later than October 27, 2010, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased gear lubricants. By
that date, Federal agencies that have the
responsibility for drafting or reviewing
specifications for items to be procured
shall ensure that the relevant
specifications require the use of gear
lubricants.
(d) Determining overlap with an EPAdesignated recovered content product.
Qualifying biobased products that fall
under this item may, in some cases,
overlap with the following EPAdesignated recovered content product:
Lubricating oils containing re-refined
oil. USDA is requesting that
manufacturers of these qualifying
biobased products provide information
for the BioPreferred Web site of
qualifying biobased products about the
intended uses of the product,
information on whether or not the
product contains any recovered
material, in addition to biobased
ingredients, and performance standards
against which the product has been
tested. This information will assist
Federal agencies in determining
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Federal Register / Vol. 74, No. 206 / Tuesday, October 27, 2009 / Rules and Regulations
whether or not a qualifying biobased
product overlaps with EPA-designated
re-refined lubricating oils and which
product should be afforded the
preference in purchasing.
Note to paragraph (d): Biobased gear
lubricant products within this designated
item can compete with similar gear lubricant
products with recycled content. Under the
Resource Conservation and Recovery Act of
1976, section 6002, the U.S. Environmental
Protection Agency designated re-refined
lubricating oils containing recovered
materials as items for which Federal agencies
must give preference in their purchasing
programs. The designation can be found in
the Comprehensive Procurement Guideline,
40 CFR 247.11.
§ 2902.48 General purpose household
cleaners.
(a) Definition. Products designed to
clean multiple common household
surfaces. This designated item does not
include products that are formulated for
use as disinfectants. Task-specific
cleaning products, such as spot and
stain removers, upholstery cleaners,
bathroom cleaners, glass cleaners, etc.,
are not included in this item.
(b) Minimum biobased content. The
preferred procurement product must
have a minimum biobased content of at
least 39 percent, which shall be based
on the amount of qualifying biobased
carbon in the product as a percent of the
weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No
later than October 27, 2010, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased general purpose
household cleaners. By that date,
Federal agencies that have the
responsibility for drafting or reviewing
specifications for items to be procured
shall ensure that the relevant
specifications require the use of
biobased general purpose household
cleaners.
pwalker on DSK8KYBLC1PROD with RULES
§ 2902.49
Industrial cleaners.
(a) Definition. Products used to
remove contaminants, such as
adhesives, inks, paint, dirt, soil, and
grease, from parts, products, tools,
machinery, equipment, vessels, floors,
walls, and other production-related
work areas. The cleaning products
within this item are usually solvents,
but may take other forms. They may be
used in either straight solution or
diluted with water in pressure washers,
or in hand wiping applications in
industrial or manufacturing settings,
such as inside vessels. Task-specific
cleaners used in industrial settings,
such as parts wash solutions, are not
included in this definition.
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16:23 Oct 26, 2009
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(b) Minimum biobased content. The
preferred procurement product must
have a minimum biobased content of at
least 41 percent, which shall be based
on the amount of qualifying biobased
carbon in the product as a percent of the
weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No
later than October 27, 2010, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased industrial cleaners.
By that date, Federal agencies that have
the responsibility for drafting or
reviewing specifications for items to be
procured shall ensure that the relevant
specifications require the use of
biobased industrial cleaners.
§ 2902.50
Multipurpose cleaners.
(a) Definition. Products used to clean
dirt, grease, and grime from a variety of
items in both industrial and domestic
settings. This designated item does not
include products that are formulated for
use as disinfectants.
(b) Minimum biobased content. The
preferred procurement product must
have a minimum biobased content of at
least 56 percent, which shall be based
on the amount of qualifying biobased
carbon in the product as a percent of the
weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No
later than October 27, 2010, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased multipurpose
cleaners. By that date, Federal agencies
that have the responsibility for drafting
or reviewing specifications for items to
be procured shall ensure that the
relevant specifications require the use of
biobased multipurpose cleaners.
§ 2902.51
Parts wash solutions.
(a) Definition. Products that are
designed to clean parts in manual or
automatic cleaning systems. Such
systems include, but are not limited to,
soak vats and tanks, cabinet washers,
and ultrasonic cleaners.
(b) Minimum biobased content. The
preferred procurement product must
have a minimum biobased content of at
least 65 percent, which shall be based
on the amount of qualifying biobased
carbon in the product as a percent of the
weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No
later than October 27, 2010, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased parts wash
solutions. By that date, Federal agencies
that have the responsibility for drafting
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or reviewing specifications for items to
be procured shall ensure that the
relevant specifications require the use of
biobased parts wash solutions.
Dated: October 21, 2009.
Pearlie S. Reed,
Assistant Secretary for Administration, U.S.
Department of Agriculture.
[FR Doc. E9–25756 Filed 10–26–09; 8:45 am]
BILLING CODE 3410–GL–P
DEPARTMENT OF HOMELAND
SECURITY
8 CFR Parts 103, 214, 274a, and 299
[CIS No. 2459–08; DHS Docket No. USCIS–
2008–0038]
RIN 1615–AB76
Commonwealth of the Northern
Mariana Islands Transitional Worker
Classification
AGENCY: U.S. Citizenship and
Immigration Services, DHS.
ACTION: Interim rule; solicitation of
comments.
SUMMARY: The Department of Homeland
Security (DHS) is creating a new,
temporary, Commonwealth of the
Northern Mariana Islands (CNMI)-only
transitional worker classification (CW
classification) in accordance with title
VII of the Consolidated Natural
Resources Act of 2008 (CNRA). The
transitional worker program is intended
to provide for an orderly transition from
the CNMI permit system to the U.S.
federal immigration system under the
Immigration and Nationality Act (INA
or Act). A CW transitional worker is an
alien worker who is ineligible for
another classification under the INA
and who performs services or labor for
an employer in the CNMI. The CNRA
imposes a five-year transition period
before the INA requirements become
fully applicable in the CNMI. The new
CW classification will be in effect for
the duration of that transition period,
unless extended by the Secretary of
Labor. The rule also establishes
employment authorization incident to
CW status.
DATES: Effective date: This rule will be
effective on November 27, 2009.
Implementation date: Beginning at
12:01 a.m. (CNMI local time) on
November 28, 2009, U.S. Citizenship
and Immigration Services will begin
operation of this program and required
compliance with this interim rule will
begin. The existing CNMI permit
program will be in effect through
November 27, 2009.
E:\FR\FM\27OCR1.SGM
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Agencies
[Federal Register Volume 74, Number 206 (Tuesday, October 27, 2009)]
[Rules and Regulations]
[Pages 55089-55094]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-25756]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 74, No. 206 / Tuesday, October 27, 2009 /
Rules and Regulations
[[Page 55089]]
DEPARTMENT OF AGRICULTURE
Office of Energy Policy and New Uses
7 CFR Part 2902
RIN 0503-AA33
Designation of Biobased Items for Federal Procurement
AGENCY: Departmental Administration, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Agriculture (USDA) is amending its
Guidelines for Designating Biobased Products for Federal Procurement,
to add nine sections to designate items within which biobased products
will be afforded Federal procurement preference, as provided for under
section 9002 of the Farm Security and Rural Investment Act of 2002, as
amended by the Food, Conservation, and Energy Act of 2008 (FCEA)
(referred to in this document as ``section 9002''). USDA also is
establishing a minimum biobased content for each of these items.
DATES: This rule is effective November 27, 2009.
FOR FURTHER INFORMATION CONTACT: Ron Buckhalt, USDA, Office of
Procurement and Property Management, 342 Reporters Building, 300 7th
St. SW., Washington, DC 20024; e-mail: biopreferred@usda.gov; phone
(202) 205-4008. Information regarding the preferred procurement program
(one part of the BioPreferred Program) is available on the Internet at
https://www.biopreferred.gov.
SUPPLEMENTARY INFORMATION: The information presented in this preamble
is organized as follows:
I. Authority
II. Background
III. Discussion of Public Comments
IV. Regulatory Information
Executive Order 12866: Regulatory Planning and Review
Regulatory Flexibility Act (RFA)
Executive Order 12630: Governmental Actions and Interference
With Constitutionally Protected Property Rights
Executive Order 12988: Civil Justice Reform
Executive Order 13132: Federalism
Unfunded Mandates Reform Act of 1995
Executive Order 12372: Intergovernmental Review of Federal
Programs
Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
Paperwork Reduction Act
E-Government Act Compliance
I. Authority
These items are designated under the authority of section 9002 of
the Farm Security and Rural Investment Act of 2002 (FSRIA), as amended
by the Food, Conservation, and Energy Act of 2008 (FCEA), 7 U.S.C. 8102
(referred to in this document as ``section 9002'').
II. Background
As part of the BioPreferred Program, USDA published on October 23,
2008, a proposed rule in the Federal Register (FR) for the purpose of
designating a total of nine items for the preferred procurement of
biobased products by Federal agencies (referred to hereafter in this FR
notice as the ``preferred procurement program''). This proposed rule
can be found at 73 FR 63298. This rulemaking is referred to in this
preamble as Round 5 (RIN 0503-AA33).
In the proposed rule, USDA proposed designating the following nine
items for the preferred procurement program: Chain and cable
lubricants; corrosion preventatives; food cleaners; forming lubricants;
gear lubricants; general purpose household cleaners; industrial
cleaners; multipurpose cleaners; and parts wash solutions.
Today's final rule designates the proposed items within which
biobased products will be afforded Federal procurement preference. USDA
has determined that each of the items being designated under today's
rulemaking meets the necessary statutory requirements; that they are
being produced with biobased products; and that their procurement will
carry out the following objectives of section 9002: To improve demand
for biobased products; to spur development of the industrial base
through value-added agricultural processing and manufacturing in rural
communities; and to enhance the Nation's energy security by
substituting biobased products for products derived from imported oil
and natural gas.
When USDA designates by rulemaking an item (a generic grouping of
products) for preferred procurement under the BioPreferred Program,
manufacturers of all products under the umbrella of that item that meet
the requirements to qualify for preferred procurement can claim that
status for their products. To qualify for preferred procurement, a
product must be within a designated item and must contain at least the
minimum biobased content established for the designated item. When the
designation of specific items is finalized, USDA will invite the
manufacturers of these qualifying products to post information on the
product, contacts, and performance testing on its BioPreferred Web
site, https://www.biopreferred.gov. Procuring agencies will be able to
utilize this Web site as one tool to determine the availability of
qualifying biobased products under a designated item. Once USDA
designates an item, procuring agencies are required generally to
purchase biobased products within these designated items where the
purchase price of the procurement item exceeds $10,000 or where the
quantity of such items or of functionally equivalent items purchased
over the preceding fiscal year equaled $10,000 or more.
Subcategorization. Most of the items USDA is considering for
designation for preferred procurement cover a wide range of products.
For some items, there are subgroups of products within the item that
meet different markets and uses and/or different performance
specifications. Where such subgroups exist, USDA intends to create
subcategories within the designated items.
During the development of the proposal, USDA considered the
appropriateness of creating subcategories within the general purpose
household cleaners, industrial cleaners, and multipurpose cleaners
items. At that time, however, USDA did not have sufficient information
to justify creating subcategories within these items. In the proposed
rule, USDA requested additional information on the possibility of
subcategorizing these three items. USDA did not receive any additional
information on these items
[[Page 55090]]
during the public comment period that could be used to support the
creation of subcategories at this time. Thus, none of the items being
designated today have subcategories. USDA will continue to consider
additional information that may become available to support
subcategorization of these items in the future.
Overlap with EPA's Comprehensive Procurement Guideline program for
recovered content products. Some of the products that are biobased
items designated for preferred procurement may also be items the
Environmental Protection Agency (EPA) has designated under the EPA's
Comprehensive Procurement Guideline (CPG) for Products Containing
Recovered Materials. Where that occurs, an EPA-designated recovered
content product (also known as ``recycled content products'' or ``EPA-
designated products'') has priority in Federal procurement over the
qualifying biobased product as identified in 7 CFR 2902.2. In
situations where it believes there may be an overlap, USDA is asking
manufacturers of qualifying biobased products to provide additional
product and performance information to Federal agencies to assist them
in determining whether the biobased products in question are, or are
not, the same products for the same uses as the recovered content
products. As this information becomes available, USDA will place it on
the BioPreferred Web site with its catalog of qualifying biobased
products.
In cases where USDA believes an overlap with EPA-designated
recovered content products may occur, manufacturers are being asked to
indicate the various suggested uses of their product and the
performance standards against which a particular product has been
tested. In addition, depending on the type of biobased product,
manufacturers are being asked to provide other types of information,
such as whether the product contains petroleum-based components and
whether the product contains recovered materials. Federal agencies may
also ask manufacturers for information on a product's biobased content
and its profile against environmental and health measures and life-
cycle costs (the Building for Environmental and Economic Sustainability
(BEES) analysis or ASTM Standard D7075 for evaluating and reporting on
environmental performance of biobased products). Such information will
permit agencies to determine whether or not an overlap occurs.
Section 6002 of the Resource Conservation and Recovery Act (RCRA)
requires a procuring agency purchasing an item designated by EPA
generally to purchase such items composed of the highest percentage of
recovered materials content practicable. However, a procuring agency
may decide not to purchase such an item based on a determination that
the item fails to meet the reasonable performance standards or
specifications of the procuring agency. An item with recovered
materials content may not meet reasonable performance standards or
specifications, for example, if the use of the item with recovered
materials content would jeopardize the intended end use of the item.
Where a biobased item is used for the same purposes and to meet the
same Federal agency performance requirements as an EPA-designated
recovered content product, the Federal agency must purchase the
recovered content product. For example, if a biobased hydraulic fluid
is to be used as a fluid in hydraulic systems and because ``lubricating
oils containing re-refined oil'' has already been designated by EPA for
that purpose, then the Federal agency must purchase the EPA-designated
recovered content product, ``lubricating oils containing re-refined
oil.'' If, on the other hand, that biobased hydraulic fluid is to be
used to address a Federal agency's certain environmental or health
performance requirements that the EPA-designated recovered content
product would not meet, then the biobased product should be given
preference, subject to cost, availability, and performance.
This final rule designates one item for preferred procurement for
which there may be overlap with EPA-designated recovered content
products. This item is gear lubricants. Depending on how they are to be
used, qualifying products under this item may overlap with the EPA-
designated recovered content products ``lubricating oils containing re-
refined oil.'' EPA provides recovered materials content recommendations
for this recovered content product in a Recovered Materials Advisory
Notice (RMAN I). The RMAN recommendations for each of this CPG product
can be found by accessing EPA's Web site https://www.epa.gov/epaoswer/non-hw/procure/products.htm and then clicking on the appropriate
product name.
Minimum Biobased Contents. The minimum biobased contents being
established with today's rulemaking are based on products for which
USDA has biobased content test data. In addition to considering the
biobased content test data for each item, USDA also considers other
factors when establishing the minimum biobased content. These other
factors include: Public comments received on the proposed minimum
biobased contents; product performance information to justify the
inclusion of products at lower levels of biobased content; and the
range, groupings, and breaks in the biobased content test data array.
Consideration of this information allows USDA to establish minimum
biobased contents on a broad set of factors to assist the Federal
procurement community in its decision to purchase biobased products.
USDA makes every effort to obtain biobased content test data on
multiple products within each item. For most designated items, USDA has
biobased content test data on more than one product within a designated
item. However, USDA must rely on biobased product manufacturers to
voluntarily submit product information and, in some cases, USDA has
been able to obtain biobased content data for only a single product
within a designated item. As USDA obtains additional data on the
biobased contents for products within these nine designated items, USDA
will evaluate whether the minimum biobased content for a designated
item will be revised.
USDA anticipates that the minimum biobased content of an item that
is based on a single product is more likely to change as additional
products in those items are identified and tested. In today's
rulemaking, none of the minimum biobased contents are based on a single
tested product.
For all items where additional information indicates that it is
appropriate to revise a minimum biobased content established under
today's rulemaking, USDA will propose the change in a notice in the
Federal Register to allow public comment on the proposed revised
minimum biobased content. USDA will then consider the public comments
and issue a final rulemaking on the minimum biobased content.
Future Designations. In making future designations, USDA will
continue to conduct market searches to identify manufacturers of
biobased products within items. USDA will then contact the identified
manufacturers to solicit samples of their products for voluntary
submission for biobased content testing or for the BEES analytical
tool. Based on these results, USDA will then propose new items for
designation for preferred procurement.
USDA plans to identify approximately 10-15 items in each future
rulemaking. USDA has developed a preliminary list of items for future
designation. This list is available on the BioPreferred Web
[[Page 55091]]
site. While this list presents an initial prioritization of items for
designation, USDA cannot identify with any certainty which items will
be presented in each of the future rulemakings. In response to comments
from other Federal Agencies, USDA intends to give increased priority to
those items that contain the highest biobased content. In addition, as
the program matures, manufacturers of biobased products within some
industry segments have become more responsive to USDA's requests for
technical information than those in other segments. Thus, items with
high biobased content and for which sufficient technical information
can be obtained quickly may be added or moved up on the prioritization
list. USDA intends to update the list of items for future designation
on the Biopreferred Web site every six months, or more often if
significant changes are made to the list.
Exemptions. In earlier item designation rules, USDA created
exemptions from the preferred procurement program's requirements for
procurements involving combat or combat-related missions and for
spacecraft systems and launch support equipment. Since publication of
those final rules in the Federal Register, and in response to comments
from the Department of Defense (DoD), USDA has decided to create
``blanket'' exemptions for all items used in products or systems
designed or procured for combat or combat-related missions, which will
apply to all items designated for the procurement preference. These
``blanket'' exemptions can be found in subpart A of part 2902. Because
these blanket exemptions are included in subpart A of part 2902, it is
unnecessary to repeat them in the individual item designations in this
final rule.
III. Discussion of Public Comments
USDA solicited comments on the proposed rule for 60 days ending on
December 22, 2008. No public comments were received and no additional
technical information has been collected to justify revising the
proposed rule. Thus, today's action finalizes the designation of the
nine items within which biobased products will be afforded Federal
procurement preference, as proposed. USDA encourages manufacturers,
vendors, and purchasers of biobased products within these nine
designated items to continue to submit information relative to products
available within these items. If sufficient supporting information
becomes available, USDA will consider amending today's rulemaking by
creating subcategories within the items, raising (or lowering) the
minimum biobased content, or other appropriate actions.
IV. Regulatory Information
A. Executive Order 12866: Regulatory Planning and Review
This action has been determined significant for purposes of
Executive Order 12866 and, therefore, has been reviewed by the Office
of Management and Budget. We are not able to quantify the annual
economic effect associated with this final rule. As discussed in the
proposed rule, USDA made extensive efforts to obtain information on the
Federal agencies' usage within the nine designated items. These efforts
were largely unsuccessful. Therefore attempts to quantify the economic
impact of this rule would require estimation of the anticipated market
penetration of biobased products based upon many assumptions. In
addition, because agencies have the option of not purchasing designated
items if costs are ``unreasonable,'' the product is not readily
available, or the product does not demonstrate necessary performance
characteristics, certain assumptions may not be valid. While facing
these quantitative challenges, USDA relied upon a qualitative
assessment to determine the impacts of this rulemaking. This assessment
was based primarily on the offsetting nature of the program (an
increase in biobased products purchased with a corresponding decrease
in petroleum products purchased). Consideration was also given to the
fact that agencies may choose not procure designated items due to
unreasonable costs.
1. Summary of Impacts
This rulemaking is expected to have both positive and negative
impacts to individual businesses, including small businesses. USDA
anticipates that the biobased preferred procurement program will
provide additional opportunities for businesses and manufacturers to
begin supplying products under the designated biobased items to Federal
agencies and their contractors. However, other businesses and
manufacturers that supply only non-qualifying products and do not offer
biobased alternatives may experience a decrease in demand from Federal
agencies and their contractors. USDA is unable to determine the number
of businesses, including small businesses, that may be adversely
affected by this rule. The rule, however, will not affect existing
purchase orders, nor will it preclude businesses from modifying their
product lines to meet new requirements for designated biobased
products. Because the extent to which procuring agencies will find the
performance and costs of biobased products acceptable is unknown, it is
impossible to quantify the actual economic effect of the rule.
2. Benefits of the rule
The designation of these nine items provides the benefits outlined
in the objectives of section 9002: To increase domestic demand for many
agricultural commodities that can serve as feedstocks for production of
biobased products; to spur development of the industrial base through
value-added agricultural processing and manufacturing in rural
communities; and to enhance the Nation's energy security by
substituting biobased products for products derived from imported oil
and natural gas. On a national and regional level, this rule can result
in expanding and strengthening markets for biobased materials used in
these items.
3. Costs of the rule
Like the benefits, the costs of this rule have not been quantified.
Two types of costs are involved: Costs to producers of products that
will compete with the preferred products and costs to Federal agencies
to provide procurement preference for the preferred products. Producers
of competing products may face a decrease in demand for their products
to the extent Federal agencies refrain from purchasing their products.
However, it is not known to what extent this may occur. Procurement
costs for Federal agencies may rise as they evaluate the availability
and relative cost of preferred products before making a purchase.
B. Regulatory Flexibility Act (RFA)
When an agency issues a final rule following a proposed rule, the
Regulatory Flexibility Act (RFA, 5 U.S.C. 601-612) requires the agency
to prepare a final regulatory flexibility analysis. 5 U.S.C. 604.
However, the requirement for a final regulatory flexibility analysis
does not apply if the head of the agency certifies that the rule will
not, if promulgated, have a significant economic impact on a
substantial number of small entities. 5 U.S.C. 605(b).
USDA evaluated the potential impacts of its designation of these
items to determine whether its actions would have a significant impact
on a substantial number of small entities. Because the preferred
procurement program established under section 9002 applies only to
Federal agencies and
[[Page 55092]]
their contractors, small governmental (city, county, etc.) agencies are
not affected. Thus, this rule will not have a significant economic
impact on small governmental jurisdictions.
USDA anticipates that this program will benefit entities, both
large and small, that manufacture or sell biobased products. For
example, the designation of items for preferred procurement will
provide additional opportunities for businesses to manufacture and sell
biobased products to Federal agencies and their contractors. Similar
opportunities will be provided for entities that supply biobased
materials to manufacturers.
The intent of section 9002 is largely to stimulate the production
of new biobased products and to energize emerging markets for those
products. Because the program is still in its infancy, however, it is
unknown how many businesses will ultimately be affected. While USDA has
no data on the number of small businesses that may choose to develop
and market biobased products within the items designated by this
rulemaking, the number is expected to be small. Because biobased
products represent a small emerging market, only a small percentage of
all manufacturers, large or small, are expected to develop and market
biobased products. Thus, the number of small businesses manufacturing
biobased products affected by this rulemaking is not expected to be
substantial.
The preferred procurement program may decrease opportunities for
businesses that manufacture or sell non-biobased products or provide
components for the manufacturing of such products. Most manufacturers
of non-biobased products within the items being designated for
preferred procurement in this final rule are expected to be included
under NAICS codes 324191 (Petroleum lubricating oil and grease
manufacturing), 325611 (Soap and other detergent manufacturing), or
325612 (Polish and other sanitation goods manufacturing). USDA obtained
information on these three NAICS categories from the U.S. Census
Bureau's Economic Census database. USDA found that the Economic Census
reports about 1,500 companies within these three NAICS categories and
that nearly all of these companies (about 1,490) report less than 500
employees. Thus, nearly all of the businesses fall within the Small
Business Administration's definition of a small business (less than 500
employees, in most NAICS categories).
USDA does not have data on the potential adverse impacts on
manufacturers of non-biobased products within the items being
designated, but believes that the impact will not be significant. The
items being designated in this rulemaking are, in general terms, either
cleaning products or lubricating products. These products are widely
used by the general public and by industrial/commercial establishments
that are not subject to this rulemaking. Thus, USDA believes that the
number of small businesses manufacturing non-biobased products within
the items being designated and selling significant quantities of those
products to government agencies affected by this rulemaking to be
relatively low. Also, this rule will not affect existing purchase
orders and it will not preclude procuring agencies from continuing to
purchase non-biobased items under certain conditions relating to the
availability, performance, or cost of biobased items. This rule will
also not preclude businesses from modifying their product lines to meet
new specifications or solicitation requirements for these products
containing biobased materials. Thus, the economic impacts of this rule
are not expected to be significant.
After considering the economic impacts of this rule on small
entities, USDA certifies that this action will not have a significant
economic impact on a substantial number of small entities.
While not a factor relevant to determining whether the rule will
have a significant impact for RFA purposes, USDA has concluded that the
effect of the rule will be to provide positive opportunities to
businesses engaged in the manufacture of these biobased products.
Purchase and use of these biobased products by procuring agencies
increase demand for these products and result in private sector
development of new technologies, creating business and employment
opportunities that enhance local, regional, and national economies.
Technological innovation associated with the use of biobased materials
can translate into economic growth and increased industry
competitiveness worldwide, thereby, creating opportunities for small
entities.
C. Executive Order 12630: Governmental Actions and Interference With
Constitutionally Protected Property Rights
This rule has been reviewed in accordance with Executive Order
12630, Governmental Actions and Interference with Constitutionally
Protected Property Rights, and does not contain policies that would
have implications for these rights.
D. Executive Order 12988: Civil Justice Reform
This rule has been reviewed in accordance with Executive Order
12988, Civil Justice Reform. This rule does not preempt State or local
laws, is not intended to have retroactive effect, and does not involve
administrative appeals.
E. Executive Order 13132: Federalism
This rule does not have sufficient federalism implications to
warrant the preparation of a Federalism Assessment. Provisions of this
rule will not have a substantial direct effect on States or their
political subdivisions or on the distribution of power and
responsibilities among the various government levels.
F. Unfunded Mandates Reform Act of 1995
This rule contains no Federal mandates under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995
(UMRA), 2 U.S.C. 1531-1538, for State, local, and tribal governments,
or the private sector. Therefore, a statement under section 202 of UMRA
is not required.
G. Executive Order 12372: Intergovernmental Review of Federal Programs
For the reasons set forth in the Final Rule Related Notice for 7
CFR part 3015, subpart V (48 FR 29115, June 24, 1983), this program is
excluded from the scope of the Executive Order 12372, which requires
intergovernmental consultation with State and local officials. This
program does not directly affect State and local governments. Although
there is no statutory requirement to do so, we believe that, in the
long term, many State and local governments will implement similar
purchase programs based on the BioPreferred Program. USDA has been
charged by Congress to share information on the BioPreferred Program
with State and local governments.
H. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
Today's rule does not significantly or uniquely affect ``one or
more Indian tribes,* * * the relationship between the Federal
Government and Indian tribes, or * * * the distribution of power and
responsibilities between the Federal Government and Indian tribes.''
Thus, no further action is required under Executive Order 13175.
I. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501
[[Page 55093]]
through 3520), the information collection under this rule is currently
approved under OMB control number 0503-0011.
J. E-Government Act Compliance
The Office of Procurement and Property Management is committed to
compliance with the E-Government Act, which requires Government
agencies in general to provide the public the option of submitting
information or transacting business electronically to the maximum
extent possible. USDA is implementing an electronic information system
for posting information voluntarily submitted by manufacturers or
vendors on the products they intend to offer for preferred procurement
under each designated item. For information pertinent to E-Government
Act compliance related to this rule, please contact Ron Buckhalt at
(202) 205-4008.
List of Subjects in 7 CFR Part 2902
Biobased products, Procurement.
0
For the reasons stated in the preamble, the Department of Agriculture
is amending 7 CFR chapter XXIX as follows:
CHAPTER XXIX--OFFICE OF ENERGY POLICY AND NEW USES
PART 2902--GUIDELINES FOR DESIGNATING BIOBASED PRODUCTS FOR FEDERAL
PROCUREMENT
0
1. The authority citation for part 2902 continues to read as follows:
Authority: 7 U.S.C. 8102.
0
2. Add Sec. Sec. 2902.43 through 2902.51 to subpart B to read as
follows:
Sec.
2902.43 Chain and cable lubricants.
2902.44 Corrosion preventatives.
2902.45 Food cleaners.
2902.46 Forming lubricants.
2902.47 Gear lubricants.
2902.48 General purpose household cleaners.
2902.49 Industrial cleaners.
2902.50 Multipurpose cleaners.
2902.51 Parts wash solutions.
Sec. 2902.43 Chain and cable lubricants.
(a) Definition. Products designed to provide lubrication in such
applications as bar and roller chains, sprockets, and wire ropes and
cables. Products may also prevent rust and corrosion in these
applications.
(b) Minimum biobased content. The preferred procurement product
must have a minimum biobased content of at least 77 percent, which
shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than October 27, 2010,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased chain and cable
lubricants. By that date, Federal agencies that have the responsibility
for drafting or reviewing specifications for items to be procured shall
ensure that the relevant specifications require the use of biobased
chain and cable lubricants.
Sec. 2902.44 Corrosion preventatives.
(a) Definition. Products designed to prevent the deterioration
(corrosion) of metals.
(b) Minimum biobased content. The preferred procurement product
must have a minimum biobased content of at least 53 percent, which
shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than October 27, 2010,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased corrosion preventatives.
By that date, Federal agencies that have the responsibility for
drafting or reviewing specifications for items to be procured shall
ensure that the relevant specifications require the use of biobased
corrosion preventatives.
Sec. 2902.45 Food cleaners.
(a) Definition. Anti-microbial products designed to clean the outer
layer of various food products, such as fruit, vegetables, and meats.
(b) Minimum biobased content. The preferred procurement product
must have a minimum biobased content of at least 53 percent, which
shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than October 27, 2010,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased food cleaners. By that
date, Federal agencies that have the responsibility for drafting or
reviewing specifications for items to be procured shall ensure that the
relevant specifications require the use of biobased food cleaners.
Sec. 2902.46 Forming lubricants.
(a) Definition. Products designed to provide lubrication during
metalworking applications that are performed under extreme pressure.
Such metalworking applications include tube bending, stretch forming,
press braking, and swaging.
(b) Minimum biobased content. The preferred procurement product
must have a minimum biobased content of at least 68 percent, which
shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than October 27, 2010,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased forming lubricants. By
that date, Federal agencies that have the responsibility for drafting
or reviewing specifications for items to be procured shall ensure that
the relevant specifications require the use of biobased forming
lubricants.
Sec. 2902.47 Gear lubricants.
(a) Definition. Products, such as greases or oils, that are
designed to reduce friction when applied to a toothed machine part
(such as a wheel or cylinder) that meshes with another toothed part to
transmit motion or to change speed or direction.
(b) Minimum biobased content. The preferred procurement product
must have a minimum biobased content of at least 58 percent, which
shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than October 27, 2010,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased gear lubricants. By that
date, Federal agencies that have the responsibility for drafting or
reviewing specifications for items to be procured shall ensure that the
relevant specifications require the use of gear lubricants.
(d) Determining overlap with an EPA-designated recovered content
product. Qualifying biobased products that fall under this item may, in
some cases, overlap with the following EPA-designated recovered content
product: Lubricating oils containing re-refined oil. USDA is requesting
that manufacturers of these qualifying biobased products provide
information for the BioPreferred Web site of qualifying biobased
products about the intended uses of the product, information on whether
or not the product contains any recovered material, in addition to
biobased ingredients, and performance standards against which the
product has been tested. This information will assist Federal agencies
in determining
[[Page 55094]]
whether or not a qualifying biobased product overlaps with EPA-
designated re-refined lubricating oils and which product should be
afforded the preference in purchasing.
Note to paragraph (d): Biobased gear lubricant products within
this designated item can compete with similar gear lubricant
products with recycled content. Under the Resource Conservation and
Recovery Act of 1976, section 6002, the U.S. Environmental
Protection Agency designated re-refined lubricating oils containing
recovered materials as items for which Federal agencies must give
preference in their purchasing programs. The designation can be
found in the Comprehensive Procurement Guideline, 40 CFR 247.11.
Sec. 2902.48 General purpose household cleaners.
(a) Definition. Products designed to clean multiple common
household surfaces. This designated item does not include products that
are formulated for use as disinfectants. Task-specific cleaning
products, such as spot and stain removers, upholstery cleaners,
bathroom cleaners, glass cleaners, etc., are not included in this item.
(b) Minimum biobased content. The preferred procurement product
must have a minimum biobased content of at least 39 percent, which
shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than October 27, 2010,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased general purpose
household cleaners. By that date, Federal agencies that have the
responsibility for drafting or reviewing specifications for items to be
procured shall ensure that the relevant specifications require the use
of biobased general purpose household cleaners.
Sec. 2902.49 Industrial cleaners.
(a) Definition. Products used to remove contaminants, such as
adhesives, inks, paint, dirt, soil, and grease, from parts, products,
tools, machinery, equipment, vessels, floors, walls, and other
production-related work areas. The cleaning products within this item
are usually solvents, but may take other forms. They may be used in
either straight solution or diluted with water in pressure washers, or
in hand wiping applications in industrial or manufacturing settings,
such as inside vessels. Task-specific cleaners used in industrial
settings, such as parts wash solutions, are not included in this
definition.
(b) Minimum biobased content. The preferred procurement product
must have a minimum biobased content of at least 41 percent, which
shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than October 27, 2010,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased industrial cleaners. By
that date, Federal agencies that have the responsibility for drafting
or reviewing specifications for items to be procured shall ensure that
the relevant specifications require the use of biobased industrial
cleaners.
Sec. 2902.50 Multipurpose cleaners.
(a) Definition. Products used to clean dirt, grease, and grime from
a variety of items in both industrial and domestic settings. This
designated item does not include products that are formulated for use
as disinfectants.
(b) Minimum biobased content. The preferred procurement product
must have a minimum biobased content of at least 56 percent, which
shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than October 27, 2010,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased multipurpose cleaners.
By that date, Federal agencies that have the responsibility for
drafting or reviewing specifications for items to be procured shall
ensure that the relevant specifications require the use of biobased
multipurpose cleaners.
Sec. 2902.51 Parts wash solutions.
(a) Definition. Products that are designed to clean parts in manual
or automatic cleaning systems. Such systems include, but are not
limited to, soak vats and tanks, cabinet washers, and ultrasonic
cleaners.
(b) Minimum biobased content. The preferred procurement product
must have a minimum biobased content of at least 65 percent, which
shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than October 27, 2010,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased parts wash solutions. By
that date, Federal agencies that have the responsibility for drafting
or reviewing specifications for items to be procured shall ensure that
the relevant specifications require the use of biobased parts wash
solutions.
Dated: October 21, 2009.
Pearlie S. Reed,
Assistant Secretary for Administration, U.S. Department of Agriculture.
[FR Doc. E9-25756 Filed 10-26-09; 8:45 am]
BILLING CODE 3410-GL-P