Designation of Biobased Items for Federal Procurement, 43808-43819 [2011-18478]
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Done in Washington, DC, this 19th day of
July 2011.
Kevin Shea,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. 2011–18707 Filed 7–20–11; 4:15 pm]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
I. Authority
Office of Energy Policy and New Uses
7 CFR Part 2902
RIN 0503–AA36
Designation of Biobased Items for
Federal Procurement
Departmental Management,
USDA.
ACTION: Final rule.
II. Background
AGENCY:
The U.S. Department of
Agriculture (USDA) is amending the
Guidelines for Designating Biobased
Products for Federal Procurement, to
add 14 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 (referred to in
this document as ‘‘section 9002’’).
USDA is also establishing minimum
biobased contents for each of these
items.
DATES: This rule is effective August 22,
2011.
FOR FURTHER INFORMATION CONTACT: Ron
Buckhalt, USDA, Office of Procurement
and Property Management, Room 361,
Reporters Building, 300 7th St. SW.,
Washington, DC 20024; e-mail:
biopreferred@usda.gov; phone (202)
205–4008. Information regarding the
Federal biobased 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. Summary of Changes
IV. Discussion of Public Comments
V. Regulatory Information
A. Executive Order 12866: Regulatory
Planning and Review
B. Regulatory Flexibility Act (RFA)
C. Executive Order 12630: Governmental
Actions and Interference With
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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’’).
As part of the BioPreferred Program,
USDA published, on November 23,
2010, a proposed rule in the Federal
Register (FR) for the purpose of
designating a total of 14 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 75 FR
71492. This rulemaking is referred to in
this preamble as Round 7 (RIN 0503–
AA36).
In the proposed rule, USDA proposed
designating the following 14 items for
the preferred procurement program:
Animal repellents; bath products;
bioremediation materials; compost
activators and accelerators; concrete and
asphalt cleaners; cuts, burns, and
abrasions ointments; dishwashing
products; erosion control materials;
floor cleaners and protectors; hair care
products, including shampoos and
conditioners as subcategories; interior
paints and coatings; oven and grill
cleaners; slide way lubricants; and
thermal shipping containers, including
durable and non-durable thermal
shipping containers as subcategories.
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
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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 and vendors 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 requirements,
uses and/or different performance
specifications. Where such subgroups
exist, USDA intends to create
subcategories within the designated
items. In sum, USDA looks at the
products within each item category to
evaluate whether there are subgroups of
products within the item that have
different characteristics or that meet
different performance specifications
and, where USDA finds these types of
differences, it intends to create
subcategories with the minimum
biobased content based on the tested
products within the subcategory.
For some items, however, USDA may
not have sufficient information at the
time of designation to create
subcategories within an item. In such
instances, USDA may either designate
the item without creating subcategories
(i.e., defer the creation of subcategories)
or designate one subcategory and defer
designation of other subcategories
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within the item until additional
information is obtained. Once USDA
has received sufficient additional
information to justify the designation of
a subcategory, the subcategory will be
designated through the proposed and
final rulemaking process.
Within today’s final rule, USDA has
subcategorized three of the items being
designated. The first item is hair care
products and the subcategories are (1)
shampoo products, and (2) conditioner
products. The second item is interior
paints and coatings and the
subcategories are (1) interior latex and
waterborne alkyd paints and coatings,
and (2) interior oil-based and
solventborne alkyd paints and coatings.
The third item is thermal shipping
containers and the subcategories are (1)
durable thermal shipping containers,
and (2) non-durable thermal shipping
containers.
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. Because the
submission of product samples for
biobased content testing is on a strictly
voluntary basis, USDA was able to
obtain samples only from those
manufacturers who volunteered to
invest the resources required to submit
the samples.
In addition to considering the
biobased content test data for each item,
USDA also considers other factors
including public comments received on
the proposed minimum biobased
contents and product performance
information. USDA also considers the
overall range of the tested biobased
contents within an item, groupings of
similar values, and breaks (significant
gaps between two groups of values) in
the biobased content test data array.
USDA evaluates this information to
determine whether some products that
may have a lower biobased content also
have unique performance or
applicability attributes that would
justify setting the minimum biobased
content at a level that would include
these products. USDA believes that this
evaluation process allows it to establish
minimum biobased contents based on a
broad set of factors to assist the Federal
procurement community in its decisions
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, in some cases, USDA has been
able to obtain biobased content data for
only a single product within a
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designated item. As USDA obtains
additional data on the biobased contents
for products within these designated
items and their subcategories, USDA
will evaluate whether the minimum
biobased content for a designated item
or subcategory 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 within
that designated item are identified and
tested. In today’s final rule, the
minimum biobased contents for both
subcategories under the thermal
shipping containers designated item are
based on a single tested product. Given
that only three biobased products have
been identified in this item, and only
one manufacturer of products within
each subcategory supplied a sample for
testing, USDA believes it is reasonable
to set minimum biobased contents for
these subcategories based on the single
data point for each subcategory.
Overlap with EPA’s Comprehensive
Procurement Guideline program for
recovered content products under the
Resource Conservation and Recovery
Act (RCRA) Section 6002. Some of the
products that are biobased items
designated for preferred procurement
under the preferred procurement
program may also be items the
Environmental Protection Agency (EPA)
has designated under the EPA’s
Comprehensive Procurement Guideline
(CPG) for products containing recovered
materials. In situations where it believes
there may be an overlap, USDA is
asking manufacturers of qualifying
biobased products to make additional
product and performance information
available to Federal agencies conducting
market research 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.
Manufacturers are asked to provide
information highlighting the sustainable
features of their biobased products and
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
fossil energy-based components
(including petroleum, coal, and natural
gas) and whether the product contains
recovered materials. Federal agencies
also may ask manufacturers for
information on a product’s biobased
content and its profile against
environmental and health measures and
life-cycle costs (the ASTM Standard
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D7075, ‘‘Standard Practice for
Evaluating and Reporting
Environmental Performance of Biobased
Products,’’ or the Building for
Environmental and Economic
Sustainability (BEES) analysis for
evaluating and reporting on
environmental performance of biobased
products). Federal agencies may then
use this information to make purchasing
decisions based on the sustainability
features of the products. Detailed
information on ASTM Standard D7075,
and other ASTM standards, can be
found on ASTM’s Web site at https://
www.astm.org. Information on the BEES
analytical tool can be found on the Web
site https://www.bfrl.nist.gov/oae/
software/bees.html.
Section 6002 of RCRA requires a
procuring agency procuring an item
designated by EPA generally to procure
such an item composed of the highest
percentage of recovered materials
content practicable. However, a
procuring agency may decide not to
procure 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
reasonable price, availability, and
performance considerations.
This final rule designates one item for
preferred procurement for which there
may be overlap with an EPA-designated
recovered content product. The interior
latex and waterborne alkyd subcategory
within the interior paints and coatings
item may overlap with the EPA-
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designated recovered content products
‘‘reprocessed latex paints’’ and
‘‘consolidated latex paints.’’ EPA
provides recovered materials content
recommendations for these recovered
content products in a Recovered
Materials Advisory Notice (RMAN I).
The RMAN recommendations for these
CPG products 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.
Federal Government Purchase of
Sustainable Products. The Federal
government’s sustainable purchasing
program includes the following three
statutory preference programs for
designated products: The BioPreferred
Program, the Environmental Protection
Agency’s Comprehensive Procurement
Guideline for products containing
recovered materials, and the
Environmentally Preferable Purchasing
program. The Office of the Federal
Environmental Executive (OFEE) and
the Office of Management and Budget
(OMB) encourage agencies to implement
these components comprehensively
when purchasing products and services.
Procuring agencies should note that
not all biobased products are
‘‘environmentally preferable.’’ For
example, unless cleaning products
contain no or reduced levels of metals
and toxic and hazardous constituents,
they can be harmful to aquatic life, the
environment, and/or workers.
Household cleaning products that are
formulated to be disinfectants are
required, under the Federal Insecticide,
Fungicide and Rodenticide Act (FIFRA),
to be registered with EPA and must
meet specific labeling requirements
warning of the potential risks associated
with misuse of such products. When
purchasing environmentally preferable
cleaning products, many Federal
agencies specify that products must
meet Green Seal standards for
institutional cleaning products or that
the products have been reformulated in
accordance with recommendations from
the EPA’s Design for the Environment
(DfE) program. Both the Green Seal
standards and the DfE program identify
chemicals of concern in cleaning
products. These include zinc and other
metals, formaldehyde, ammonia, alkyl
phenol ethoxylates, ethylene glycol, and
volatile organic compounds (VOC). In
addition, both require that cleaning
products have neutral or less caustic
pH.
In contrast, some biobased products
may be more environmentally preferable
than some products that meet Green
Seal standards for institutional cleaning
products or that have been reformulated
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in accordance with EPA’s DfE program.
To fully compare products, one must
look at the ‘‘cradle-to-grave’’ impacts of
the manufacture, use, and disposal of
products. Biobased products that will be
available for preferred procurement
under this program have been assessed
as to their ‘‘cradle-to-grave’’ impacts.
One consideration of a product’s
impact on the environment is whether
(and to what degree) it introduces new
fossil carbon into the atmosphere. Fossil
carbon is derived from non-renewable
sources (typically fossil fuels such as
coal and oil), whereas renewable
biomass carbon is derived from
renewable sources (biomass). Qualifying
biobased products offer the user the
opportunity to manage the carbon cycle
and reduce the introduction of new
fossil carbon into the atmosphere.
Manufacturers of qualifying biobased
products designated under the preferred
procurement program will be able to
provide, at the request of Federal
agencies, factual information on
environmental and human health effects
of their products, including the results
of the ASTM D7075, or the comparable
BEES analysis which examines 12
different environmental parameters,
including human health. Therefore,
USDA encourages Federal procurement
agencies to consider that USDA has
already examined all available
information on the environmental and
human health effects of biopreferred
products, when making their purchasing
decisions.
Other Preferred Procurement
Programs. Federal procurement officials
should also note that biobased products
may be available for purchase by
Federal agencies through the AbilityOne
Program (formerly known as the JavitsWagner-O’Day (JWOD) program). Under
this program, members of organizations
including the National Industries for the
Blind (NIB) and the National Institute
for the Severely Handicapped (NISH)
offer products and services for preferred
procurement by Federal agencies. A
search of the AbilityOne Program’s
online catalog (www.abilityone.gov)
indicated that four of the items being
designated today (concrete and asphalt
cleaners, dishwashing detergent, floor
cleaners and protectors, and hair care
products) are available through the
AbilityOne Program. While there is no
specific product within these items
identified in the AbilityOne online
catalog as being a biobased product, it
is possible that such biobased products
are available or will be available in the
future. Also, because additional
categories of products are frequently
added to the AbilityOne Program, it is
possible that biobased products within
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other items being designated today may
be available through the AbilityOne
Program in the future. Procurement of
biobased products through the
AbilityOne Program would further the
objectives of both the AbilityOne
Program and the preferred procurement
program.
Outreach. To augment its own
research, USDA consults with industry
and Federal stakeholders to the
preferred procurement program during
the development of the rulemaking
packages for the designation of items.
USDA consults with stakeholders to
gather information used in determining
the order of item designation and in
identifying: Manufacturers producing
and marketing products that fall within
an item proposed for designation;
performance standards used by Federal
agencies evaluating products to be
procured; and warranty information
used by manufacturers of end user
equipment and other products with
regard to biobased products.
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.
Based on these results, USDA will then
propose new items for designation for
preferred procurement.
In the preamble to the first six items
designated for preferred procurement
(71 FR 13686, March 16, 2006), USDA
stated that it planned to identify
approximately 10 items in each future
rulemaking. In an effort to finalize the
designation of more items in a shorter
time period, USDA now plans to
increase the number of items in each
rulemaking, whenever possible. Thus,
today’s final rulemaking designates 14
items for preferred procurement.
USDA has developed a preliminary
list of items for future designation and
has posted this preliminary list on the
BioPreferred Web site. While this list
presents an initial prioritization of items
for designation, USDA cannot identify
with 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
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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.
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III. Summary of Changes
As a result of the comments received
on the proposed rule, USDA has made
several changes in finalizing the
proposed rule. These changes are
summarized in the remainder of this
section. A summary of each comment
received, and USDA’s response to the
comment, is presented in section IV.
The definitions of three proposed
items were revised to avoid potential
overlap with previously designated
items. The definition of the bath
products designated item was revised to
specifically exclude products marketed
as hand cleaners and/or hand sanitizers.
The definition of the concrete and
asphalt cleaners designated item was
revised to include only those products
marketed for use in commercial or
residential construction or industrial
applications. The definition of the floor
cleaners and protectors designated item
was revised to include only those
products marketed specifically for use
on industrial, commercial, and/or
residential flooring.
The proposed item interior paints and
coatings was subcategorized. The
subcategories are (1) interior latex and
waterborne alkyd paints and coatings,
and (2) interior oil-based and
solventborne alkyd paints and coatings.
The discussion of potential overlap
with the EPA recovered content product
re-refined lubricating oil was removed
from the slide way lubricants.
IV. Discussion of Public Comments
USDA solicited comments on the
proposed rule for 60 days ending on
January 24, 2011. USDA received
comments from five commenters by that
date. The comments were from three
Federal government agencies and two
biobased product manufacturers.
In the remainder of this section,
USDA first addresses two general
comments that relate to the overall
designation process. Comments related
to the designation of specific items are
presented next, followed by USDA’s
response to those comments.
General
Comment: One commenter stated that
the BioPreferred Web site might imply
to some that the listed products have
been tested and meet all Federal
requirements, when the primary test of
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concern is for biobased content. The
commenter stated that, in numerous
cases, the products have not been
tested/evaluated for DoD applications.
The commenter suggested that there
should be some type of statement on the
Web site explaining that the item type
meets USDA requirements but not
necessarily those of any other
component of the Federal government.
Response: USDA agrees with the
commenter that the functional
performance of biobased products is of
great concern to procuring agencies and
that such performance is not guaranteed
as a part of the designation process.
USDA attempts to gather performance
information from biobased product
manufacturers during the designation
process, but does not have the statutory
authority to require manufacturers to
provide such information. The absence
of industry standards listed in
association with a catalog entry simply
indicates that the company has elected
not to provide any information about
performance testing associated with
their products. Purchasing officials
interested in performance data
associated with a specific product are
encouraged to contact the listed contacts
for further information. USDA will
consider the feasibility of including a
symbol in the catalog (when the
performance standards record is null) so
that purchasing officials can quickly see
which products have testing standards
associated with their products.
New Product Category
Comment: One commenter believes
that it is important to have a product
category designation for automotive
motor oils. The commenter states that
there are categories for 2-cycle engine
oil, and bar and chain lubricant, which
are typically petroleum-based products.
The commenter believes there would be
significant benefit in designating
automotive motor oils as a product
category in the next round. The
commenter stated that this could lead to
the creation of more effective and
environmentally friendly motor oil from
biobased materials.
Response: USDA thanks the
commenter for the recommendation and
is willing to work with the commenter
to obtain valid information regarding
the potential for establishing a product
category for automotive motor oils.
USDA would be especially interested in
obtaining information related to
performance characteristics of biobased
automotive motor oils, including
documentation of successful
performance testing by recognized
testing organizations such as ASTM and
SAE.
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Animal Repellents
Comment: One commenter stated that
Federal agencies are implementing
integrated pest management (IPM) in
place of the use of pesticides. The
commenter recommends USDA address
whether the use of biobased animal
repellents is consistent with Federal
IPM efforts.
Response: USDA contacted Dr. Martin
Draper, the National Program Leader—
Plant Pathology, of USDA’s National
Institute of Food and Agriculture to
discuss whether the use of biobased
animal repellents is consistent with
Federal IPM programs. Dr. Draper stated
that IPM encourages the use of diverse
methods of mitigating pest pressures, in
most cases reducing pesticide use. He
further stated that biorational pesticides
and biological controls would be
welcome and encouraged within the
constructs of IPM. He stated that IPM
programs are focused on efficacious
products and strategies that optimize
economic advantage while reducing
potential deleterious effects on the
environment and human health and that
if the products that can do that are
biobased, all the better. He further stated
that pest repellents would be included
as a component of IPM if that was an
appropriate strategy. According to Dr.
Draper, exclusion, the best option in
managing vertebrate pests, is
impractical or illegal in some cases. In
those cases, repellents become very
important in the management of some
very damaging pests. Dr. Draper
concluded by saying that he did not see
where the use of biobased animal
repellents would be a conflict with IPM
programs.
Bath Products
Comment: One commenter believes
that the proposed designation of bath
products overlaps with the previous
designation of hand cleaners. The
commenter stated that manufacturers
and purchasers need clear guidance as
to which biobased content level applies,
as the recommended minimum biobased
content level for hand cleaners is
slightly higher than that proposed for
bath products. The commenter further
recommends that USDA provide a clear
definition of bath products that
distinguishes it from hand cleaners.
Response: USDA does not believe that
the designation of bath products
overlaps significantly with the previous
designation of hand cleaners and
sanitizers. Hand cleaners and sanitizers
are defined as products formulated
exclusively for use as human hand
personal care products. Bath products,
as defined, are personal hygiene
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products, including soaps and other
cleansers. However, USDA does agree
that there may be some confusion
regarding these differences and has
amended the definition of bath products
to state that these exclude products that
are specifically marketed as ‘‘hand
cleaners’’ and/or ‘‘hand sanitizer’’
products.
Bioremediation Materials and Compost
Activators and Accelerators
Comment: One commenter stated that
the designation of bioremediation
materials and compost activators could
lead to unnecessary addition of
biobased components to these products
in order to qualify for Federal
procurement preference.
The commenter stated that a review of
the Technical Support Document
indicates that the overwhelming
majority of the products identified
within these two product categories
consist of active biological
microorganism cultures. The commenter
further noted that some product
descriptions also indicate that the
product contains nutrients or organic
materials. However, the active
ingredient is typically a culture of
microorganisms.
Thus, according to the commenter,
developing a formula for sale to the
government by adding more biobased
organic materials that simply dilute the
microbiological active ingredient is a
logical response to USDA’s
contemplated biobased content
minimum. The commenter stated that
the result of a ‘‘successful’’ USDA
designation in this area might be simply
the wasting of biobased products into
the compost pile or into soils being
remediated. The commenter further
stated that the addition of biobased
organic materials would also increase
the use of packaging materials, fuels,
etc. for product transport, having a
negative effect on the environment.
The commenter also noted that
neither of these product classes appears
to have standardized tests to determine
product effectiveness—which increases
the difficulty to the government to avoid
procurement of diluted products
prepared to satisfy a biobased content
mandate.
The commenter recommends that the
‘‘bioremediation materials’’ product
category and the ‘‘compost activators
and accelerators’’ product category not
be designated under the biobased
procurement preference program.
Response: USDA disagrees with the
commenter’s recommendation that
bioremediation materials and compost
activators and accelerators not be
included in the biobased procurement
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preference program. Based on the
information collected prior to proposing
these items for designation, available
products within these two items are
almost universally high in biobased
content. Also, because the
microorganisms that are the active
ingredients in the products would be
counted as biobased content, reducing
the percentage of the microorganisms in
the product and increasing the biobased
nutrient, or carrier, content would not
increase the overall biobased content of
a product. In addition, reformulating the
product to include fewer
microorganisms would tend to hurt the
performance of the product. Thus,
manufacturers would have no reason to
add inactive biobased ingredients to
increase the biobased content of the
products. USDA held a meeting with the
commenter to clarify the comments/
responses and explain the rationale for
finalizing the designation of these two
items, but did not make any changes in
the final rule.
Concrete and Asphalt Cleaners
Comment: One commenter stated that
the proposed designation of concrete
and asphalt cleaners overlaps with the
previously designated graffiti remover.
The commenter believes that guidance
is needed as to which biobased content
applies, as the proposed minimum
biobased content level for graffiti
remover is significantly lower than that
for the concrete and asphalt cleaners.
The commenter further stated that
concrete and asphalt cleaners should be
clearly distinguished from graffiti
remover.
Response: USDA reviewed the
product information collected on both
the proposed concrete and asphalt
cleaners item and the previously
designated graffiti remover item to
investigate clarifications that could be
made to the definitions. Based on the
product descriptions provided by
manufacturers, USDA found that
products within the proposed concrete
and asphalt cleaners item were
predominantly described as being
intended for use in construction or
industrial applications. Graffiti and
grease remover products were generally
described as being intended for use in
janitorial and/or institutional
applications. USDA has, therefore,
clarified the definition of concrete and
asphalt cleaners to specify that products
within this item include only those
marketed for use in construction or
industrial applications.
Comment: One commenter, in
reference to the Boeing Spec D6–17487P
listed in connection with the proposed
concrete and asphalt cleaners item,
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asked if proprietary standards like these
are readily available to the purchasing
agencies. The commenter stated that, if
so, their Hazardous Minimization/Green
Products Community would like access
to them.
Response: USDA does not have access
to individual performance specifications
such as Boeing Specification D6–
17487P. USDA suggests that interested
parties contact biobased product
vendors/manufacturers, or the entity
that established the performance
standard, directly regarding access to
their specifications.
Dishwashing Products
Comment: One commenter, in
reference to the Boeing Spec D6–7127
listed in connection with the proposed
dishwashing products item, asked if
proprietary standards like these are
readily available to purchasing agencies.
The commenter stated that, if so, their
Hazardous Minimization/Green
Products Community would like access
to them.
Response: As stated in the response to
a similar comment related to the
concrete and asphalt cleaners item,
USDA does not have access to
individual performance standards and
recommends that interested parties
contact biobased product vendors/
manufacturers, or the entity that
established the performance standard.
Floor Cleaners and Protectors
Comment: One commenter believes
that the proposed designation of floor
cleaners and protectors overlaps with
the previous designation of bathroom
and spa cleaners, as both types of
products can be used to clean similar
surfaces. The commenter believes that
guidance is needed as to which
biobased content applies, as the
proposed minimum biobased content
level for floor cleaners is slightly higher
than that recommended for bathroom
cleaning products. The commenter
further stated that a definition of floor
cleaners that clearly distinguishes it
from bathroom cleaners is needed.
Response: USDA has revised the
definition of the proposed floor cleaners
and protectors item to specify that
products within this item are marketed
specifically for use on industrial,
commercial, and/or residential flooring.
USDA agrees with the commenter that
some products that are marketed within
the previously designated bathroom and
spa cleaners item may be used on floors.
Those products are generally marketed
as multi-surface cleaners formulated
specifically for use in bathrooms and
spa areas. By specifying that applicable
floor cleaner and protector products are
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those marketed specifically for use on
flooring, USDA believes that most
overlay issues will be eliminated.
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Hair Care Products
Comment: One commenter
recommends that USDA create a
category of ‘‘personal care products,’’
with bath products, hand cleaners, and
hair care products listed as subsets.
Each item should be clearly defined to
be distinguishable from each other.
Response: USDA agrees with the
commenter that some of the proposed
and previously designated items include
products that are functionally similar
and could be more clearly defined to
avoid overlap. USDA has developed the
designation rulemakings in several
individual ‘‘rounds’’ as new product
information was gathered. In addition,
biobased product manufacturers have
continued to introduce biobased
alternatives that are marketed in an
increasing variety of applications,
especially in the category of ‘‘multipurpose’’ cleaners and lubricants. USDA
recognizes that the potential for many
biobased products to be marketed under
multiple designated items continues to
increase. On one hand, this is
encouraging because it means that
biobased alternatives are becoming more
widespread and more marketable. On
the other hand, it means that some of
the items that were designated early in
the process are not organized and
defined in the most practical way. Once
the initial designation of those items for
which information is readily available
has been completed, USDA intends to
revisit the entire list of designated items
and undertake a reorganization to
streamline and clarify the items and
update the minimum biobased content
requirements, as applicable.
Interior Paints and Coatings
Comment: One commenter proposes
that this item designation be
subcategorized based on differences in
the requirements, uses, and performance
specifications. Based on the USDA
definition of subgroups, the commenter
believes two subgroups exist for interior
paints and coatings, ‘‘interior latex and
latex-hybrid paints and coatings’’ and
‘‘interior oil-based and alkyd paints and
coatings.’’ Because significantly
different technologies and chemistries
are used to meet the requirements, uses,
and performance specific to each of
these subgroups, different minimum
biobased content levels should be set for
each of these.
The commenter stated that coatings
within the first proposed subcategory,
interior latex and latex-hybrid paints
and coatings, are carried in water and
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are capable of meeting all national and
regional VOC regulations. The
commenter also stated that it is
important that procurement officers
have biobased options capable of
meeting the VOC regulations in their
particular region. The commenter stated
that they currently sell products that
would fall into this subcategory and can
provide them to the USDA for biobased
content testing. The commenter
recommended that a minimum level of
approximately 20 percent biobased
carbon would be appropriate for the
latex and latex hybrid-paints and
coatings subcategory.
According to the commenter, latex
paint is the dominant coating type used
in the interior paint and coatings
market; used for typical painting
projects, such as wall paint. The
commenter stated that users of latex
paints have very specific performance
expectations, including fast drying
times and low odor. The commenter
noted that these are very important
factors, because the paint cost accounts
for only about 20–30 percent of the total
paint-job cost, with the majority of costs
being related to labor. Faster drying
paints significantly reduce labor costs
and allow office buildings and other
interior spaces to be quickly returned to
service after painting. These coatings are
also carried in water which results in
low odor, low VOC and significantly
lower contribution to indoor air quality
issues.
The commenter also stated that
subcategorization of interior latex and
latex-hybrid paint and coatings will also
provide the requested clarity on the
potential overlap that was identified by
the USDA, with the EPA’s Resource
Conservation and Recovery Act (RCRA).
By subcategorizing in this manner, there
is no overlap for applications that
require a paint from the ‘‘interior oilbased and alkyd paint and coatings’’
subcategory. The commenter stated that,
in the case of applications requiring
paint from the ‘‘interior latex and latexhybrid paints and coatings’’
subcategory, the decision between a
biobased latex paint (USDA
BioPreferred) or reprocessed/
consolidated latex paint (EPA RCRA)
can be made by the procurement officer
based on price, availability, and
performance considerations.
The commenter stated that the second
proposed subcategory, interior oil-based
and alkyd paints and coatings are
defined by the ACA as ‘‘a paint that
contains drying oil, oil varnish or oilmodified resin as the film-forming
ingredient.’’ The commenter explained
that an alkyd resin is defined by the
ACA as ‘‘synthetic resin modified with
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oil.’’ Thus, alkyd paints and coatings are
defined as ‘‘coatings that contains alkyd
resins in the binder.’’ The commenter
also stated that these coatings typically
are carried in a natural or synthetic
solvent and therefore may not meet VOC
regulations in certain geographical
regions.
The commenter stated that the coating
HC84–0015 tested by the USDA
qualifies for this subcategory and the
coatings Q14G–0009, Q14G–0013, and
Q14G–0002, may qualify for this
subcategory as well. The commenter
agrees with a 67 percent biobased
content level for this subcategory.
The commenter explained that
interior alkyd and oil-based paints in
the U.S. market are typically used for
trim paint and as wood primers,
especially where tannin blocking is
specifically required. The commenter
stated that users of alkyd and oil-based
paints have very specific performance
expectations and that these coatings are
used on trim specifically for their
hardness, smooth application, tannin
blocking ability, and the ability to
achieve substantially higher gloss levels.
They can also be used for wall coatings
when this type of performance is
required. In contrast to latex and latex
hybrid, these types of coatings are slow
to dry and often have some odor
associated with them.
The commenter recommended the
following changes to the proposed
designation of biobased interior paints
and coatings for preferred Federal
procurement:
The subcategories should be based on
their differentiated use and performance
specifications. Allowing for the
inclusion of latex paints will lead to
wider adoption and use of biobased
products in the interior paints and
coatings category.
The commenter believes that a level
of 67 percent biobased content is
appropriate for the interior oil-based
and alkyd paints and coatings
subcategory, but the level for the
interior latex and latex-hybrid paints
and coatings should be approximately
20 percent biobased carbon content.
The commenter also stated that the
100 percent biobased content level
found in product MXF6–0004 should
not be used to determine the minimum
biobased content for interior paints and
coatings or either of the proposed
subcategories because this type of
coating is not feasible for use and this
product was not tested for biobased
content as it is intended to be used. The
commenter stated that, when used as
instructed by the manufacture in the
product description, the biobased
content of the full painting system will
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be significantly lower. While the milkpaint base itself is biobased, according
to the product description provided by
the USDA, it requires mixing with an
adhesive in order to adhere to nonporous surfaces (e.g. any previously
painted surfaces). Milk-paint
manufactures also typically recommend
using an acrylic top-coat for durability.
The commenter stated that, since the
adhesive is a necessary part of the
‘‘coating’’ to insure adhesion to the
substrate, it must be included in any
determination of biobased content.
Response: USDA considered the
information provided by the
commenter, reviewed the data
previously collected on this proposed
item, and also researched other coatingrelated information available on the
Internet. USDA agrees with the
commenter that the proposed item
should include at least two
subcategories based on two
fundamentally different coating
technologies.
USDA found that within the broad
category of interior paints and coatings
all products can be categorized at the
highest level as either waterborne or
solventborne. As the names imply, the
products can be divided into those that
use water as the ‘‘carrier’’ liquid and
those that use a solvent other than water
(e.g., typically petroleum-based
solvents). Waterborne coatings have
traditionally been formulated as an
emulsion of petroleum based acrylic
resins in water. These coatings were low
in VOC content, but did not contain
biobased components. Solventborne
coatings have traditionally been
formulated as plant based (soy, linseed,
castor) alkyd resins in petroleum based
solvents. These coatings have a much
higher VOC content, but do include a
biobased component.
Recent advances in coating
technology have resulted in the
formulation of waterborne coatings that
include varying levels of plant based
alkyd resins. Thus, there are now
biobased alternatives within both the
waterborne and solventborne coating
types. While solventborne alkyd
coatings still generally contain a much
higher biobased content, waterborne
coatings with a significant biobased
content are becoming increasingly
popular. The commenter reported
selling a line of waterborne coating
products with at least 20 percent
biobased content. USDA also contacted
a major resin manufacturer who
confirmed that their products are used
in waterborne alkyd coatings containing
biobased contents in the 20 to 30
percent range.
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USDA agrees with the commenter that
other types of coatings, such as the
milk-paint discussed by the commenter,
are not generally representative of the
coating technologies that dominate the
interior coatings market. While various
other types of coating technologies are
available, their use is very specialized
and the volumes that would potentially
be purchased by Federal procurement
officials is negligible compared to
waterborne and solventborne coatings.
USDA has, therefore, not considered
these specialty coatings in establishing
subcategories for this item. However, to
the extent that any of these specialty
coatings fall within the subcategories
established in today’s final rule, they
would be eligible for the same
consideration for preferred procurement
as more traditional coatings.
For the reasons presented above,
USDA has decided to create two
subcategories within the interior paints
and coatings item. USDA recognizes
that there are many factors for
purchasing officials to consider when
purchasing interior paints and coatings.
Procurement decisions must be made
considering applicable VOC regulations
as well as a long list of necessary
coating performance characteristics.
Creating two subcategories within the
interior paints and coatings item allows
USDA to acknowledge the differences
between the two basic coating types and
also to set minimum biobased contents
that are representative of each type. In
the final rule, the two subcategories are:
(1) Interior latex and waterborne alkyd
paints and coatings, and (2) interior oilbased and solventborne alkyd paints
and coatings. The minimum biobased
content of the first subcategory is 20
percent and the minimum biobased
content of the second subcategory is 67
percent. USDA believes that these
minimum biobased contents will result
in procuring officials being able to select
from a sufficiently large number of
products to ensure that their
performance needs can be met.
Comment: One commenter stated that,
under E.O. 13423 and 13514, Federal
agencies are using interior paints with
no or low VOC content as part of their
high performance sustainable building
efforts. For some agencies, the use of noor low-VOC paints is necessary to help
meet air non-attainment area
requirements. USDA should address the
VOC content of biobased paints and
whether the use of these products is
consistent with agency efforts to reduce
their use of VOC-containing products.
Response: As discussed in the
response to the previous comment,
USDA has subcategorized the interior
paints and coatings item into two
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subcategories. The two subcategories
can generally be described as being
either waterborne (the latex and
waterborne alkyds subcategory) or
solventborne (the oil-based and
solventborne alkyds subcategory).
Waterborne coatings, as the name
implies, use water as the carrier for the
resins and pigments. Solventborne
coatings use an organic solvent
(typically a petroleum-derived solvent)
as the carrier. The vast majority of
coatings used in the interior paints and
coatings market are waterborne coatings
and one of the primary driving factors
in the emergence of waterborne
technology was the low organic solvent
content of these coatings. Not only do
these coatings meet VOC requirements,
they are fast drying and low in odor.
Solventborne coatings are typically used
as primers and for wood trim, cabinets,
and furniture. They are used primarily
for their hardness, smooth application,
and higher gloss levels. Because they
contain organic solvents, however, these
coatings may not meet VOC regulations
in some geographical regions.
USDA agrees with the commenter that
the use of low VOC coatings is an
important consideration in many
Federal agency’s environmental
programs. USDA recommends that
purchasing officials first consider the
performance and environmental
concerns when deciding whether to
purchase waterborne or solventborne
coatings. Once that decision is made,
purchasing officials must determine
whether the available biobased
alternatives within each coating type
meet their performance and cost criteria.
Slide Way Lubricants
Comment: One commenter stated that
the proposed designation of slide way
lubricants does not overlap with EPA’s
designation of re-refined lubricating
oils. The commenter stated that the EPA
designation applies to engine lubricants,
hydraulic fluids, and gear oils.
Response: USDA thanks the
commenter for the comment. USDA
reconsidered the potential for an
overlap and agrees that slide way
lubricants do not overlap with EPA’s
designated re-refined lubricating oil.
USDA has removed the discussion of
the potential overlap for this item from
the final rule.
Thermal Shipping Containers
Comment: One commenter stated that
this proposed category has two
subcategories with only one
manufacturer and that USDA is
proposing to defer the compliance date
until additional manufacturers are
identified. The commenter suggests that
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in future rounds it may be preferable to
hold off designating an item until more
than one manufacturer is identified.
Response: 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), states that USDA shall ‘‘* * *
designate those items (including
finished products) that are or can be
produced with biobased products
(including biobased products for which
there is only a single product or
manufacturer in the category) that will
be subject to the preference described in
paragraph (2) * * *’’. Thus, USDA does
not agree that it should defer
designating an item until more than one
manufacturer is identified.
emcdonald on DSK2BSOYB1PROD with RULES
V. Regulatory Information
A. Executive Order 12866: Regulatory
Planning and Review
Executive Order 12866 requires
agencies to determine whether a
regulatory action is ‘‘significant.’’ The
Order defines a ‘‘significant regulatory
action’’ as one that is likely to result in
a rule that may: ‘‘(1) Have an annual
effect on the economy of $100 million
or more or adversely affect, in a material
way, the economy, a sector of the
economy, productivity, competition,
jobs, the environment, public health or
safety, or State, local, or tribal
governments or communities; (2) Create
a serious inconsistency or otherwise
interfere with an action taken or
planned by another agency; (3)
Materially alter the budgetary impact of
entitlements, grants, user fees, or loan
programs or the rights and obligations of
recipients thereof; or (4) Raise novel
legal or policy issues arising out of legal
mandates, the President’s priorities, or
the principles set forth in this Executive
Order.’’
Today’s final rule has been
determined by the Office of
Management and Budget to be not
significant for purposes of Executive
Order 12866. We are not able to quantify
the annual economic effect associated
with today’s final rule. As discussed
earlier in this preamble, USDA made
extensive efforts to obtain information
on the Federal agencies’ usage within
the 14 designated items, including their
subcategories. These efforts were largely
unsuccessful. Therefore, attempts to
determine the economic impacts of
today’s final 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 price is
‘‘unreasonable,’’ the product is not
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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 today’s final
rule. Consideration was also given to the
fact that agencies may choose not to
procure designated items due to
unreasonable price.
1. Summary of Impacts
Today’s final rule 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 today’s final rule. The final
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, availability
and/or price of biobased products
acceptable is unknown, it is impossible
to quantify the actual economic effect of
the rule.
2. Benefits of the Final Rule
The designation of these 14 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, and to spur development of
the industrial base through value-added
agricultural processing and
manufacturing in rural communities. On
a national and regional level, today’s
final rule can result in expanding and
strengthening markets for biobased
materials used in these items.
3. Costs of the Final Rule
Like the benefits, the costs of today’s
final 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
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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. Pre-award procurement costs for
Federal agencies may rise minimally as
the contracting officials conduct market
research to evaluate the performance,
availability and price reasonableness of
preferred products before making a
purchase.
B. Regulatory Flexibility Act (RFA)
The RFA, 5 U.S.C. 601–602, generally
requires an agency to prepare a
regulatory flexibility analysis of any rule
subject to notice and comment
rulemaking requirements under the
Administrative Procedure Act or any
other statute unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. Small entities
include small businesses, small
organizations, and small governmental
jurisdictions.
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
their contractors, small governmental
(city, county, etc.) agencies are not
affected. Thus, the proposal, if
promulgated, will not have a significant
economic impact on small governmental
jurisdictions.
USDA anticipates that this program
will affect 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,
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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 rule are expected to
be included under the following NAICS
codes: 324191 (petroleum lubricating oil
and grease manufacturing), 325320
(pesticide and other agricultural
chemical manufacturing), 325412
(pharmaceutical preparation
manufacturing), 325510 (paint and
coating manufacturing), 325611 (soap
and other detergent manufacturing),
325612 (polish and other sanitation
goods manufacturing), 325620 (toilet
preparation manufacturing), 325998
(other miscellaneous chemical products
and preparation manufacturing), 326150
(urethane and other foam product
manufacturing), and 314999 (other
miscellaneous textile mill products).
USDA obtained information on these 10
NAICS categories from the U.S. Census
Bureau’s Economic Census database.
USDA found that the Economic Census
reports about 8,092 companies within
these 10 NAICS categories and that
these companies own a total of about
9,255 establishments. Thus, the average
number of establishments per company
is about 1.1. The Census data also
reported that of the 9,255 individual
establishments, about 9,119 (98.5
percent) have fewer than 500
employees. USDA also found that the
overall average number of employees
per company among these industries is
about 58, with only one segment
reporting an average of more than 100
employees (the pharmaceutical
preparation industry segment at about
250 employees per company). Thus,
nearly all of the businesses fall within
the Small Business Administration’s
definition of a small business (fewer
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. Most of the items being
designated in this rulemaking are
typical consumer products widely used
by the general public and by industrial/
commercial establishments that are not
subject to this rulemaking. Thus, USDA
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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 final rule will not affect existing
purchase orders and it will not preclude
procuring agencies from continuing to
purchase non-biobased items when
biobased items do not meet the
availability, performance, or reasonable
price criteria. This final rule will also
not preclude businesses from modifying
their product lines to meet new
specifications or solicitation
requirements for these products
containing biobased materials.
After considering the economic
impacts of this final 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 final 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.
C. Executive Order 12630:
Governmental Actions and Interference
With Constitutionally Protected Property
Rights
This final 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 final rule does not have
sufficient federalism implications to
warrant the preparation of a Federalism
Assessment. Provisions of this final rule
will not have a substantial direct effect
on States or their political subdivisions
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or on the distribution of power and
responsibilities among the various
government levels.
F. Unfunded Mandates Reform Act of
1995
This final 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 Executive Order 12372, which
requires intergovernmental consultation
with State and local officials. This
program does not directly affect State
and local governments.
H. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
Today’s final 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
through 3520), the information
collection under this final rule is
currently approved under OMB control
number 0503–0011.
J. E-Government Act Compliance
USDA 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.
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Rules and Regulations
K. Congressional Review Act
The Congressional Review Act, 5
U.S.C. 801 et seq., as added by the Small
Business Regulatory Enforcement
Fairness Act of 1996, generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report, that includes a
copy of the rule, to each House of the
Congress and to the Comptroller General
of the United States. USDA has
submitted a report containing this rule
and other required information to the
U.S. Senate, the U.S. House of
Representatives, and the Comptroller
General of the United States prior to
publication of the rule in the Federal
Register.
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
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 §§ 2902.61 through 2902.74 to
subpart B to read as follows:
■
Sec.
2902.61 Animal repellents.
2902.62 Bath products.
2902.63 Bioremediation materials.
2902.64 Compost activators and
accelerators.
2902.65 Concrete and asphalt cleaners.
2902.66 Cuts, burns, and abrasions
ointments.
2902.67 Dishwashing products.
2902.68 Erosion control materials.
2902.69 Floor cleaners and protectors.
2902.70 Hair care products.
2902.71 Interior paints and coatings.
2902.72 Oven and grill cleaners.
2902.73 Slide way lubricants.
2902.74 Thermal shipping containers.
emcdonald on DSK2BSOYB1PROD with RULES
§ 2902.61
Animal repellents.
(a) Definition. Products used to aid in
deterring animals that cause destruction
to plants and/or property.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 79 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 July 23, 2012, procuring
agencies, in accordance with this part,
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will give a procurement preference for
qualifying biobased animal repellents.
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 animal repellents.
§ 2902.62
Bath products.
(a) Definition. Personal hygiene
products including bar soaps, liquids, or
gels that are referred to as body washes,
body shampoos, or cleansing lotions,
but excluding products marketed as
hand cleaners and/or hand sanitizers.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 61 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 July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased bath products. 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 bath products.
§ 2902.63
Bioremediation materials.
(a) Definition. Dry or liquid solutions
(including those containing bacteria or
other microbes but not including
sorbent materials) used to clean oil, fuel,
and other hazardous spill sites.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 86 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 July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased bioremediation
materials. 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 bioremediation materials.
§ 2902.64 Compost activators and
accelerators.
(a) Definition. Products in liquid or
powder form designed to be applied to
compost piles to aid in speeding up the
composting process and to ensure
successful compost that is ready for
consumer use.
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43817
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 95 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 July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased compost activators
and accelerators. 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 compost activators and
accelerators.
§ 2902.65
Concrete and asphalt cleaners.
(a) Definition. Chemicals used in
concrete etching as well as to remove
petroleum-based soils, lubricants,
paints, mastics, organic soils, rust, and
dirt from concrete, asphalt, stone and
other hard porous surfaces. Products
within this item include only those
marketed for use in commercial or
residential construction or industrial
applications.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 70 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 July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased concrete and
asphalt 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 concrete and asphalt
cleaners.
§ 2902.66 Cuts, burns, and abrasions
ointments.
(a) Definition. Products designed to
aid in the healing and sanitizing of
scratches, cuts, bruises, abrasions, sun
damaged skin, tattoos, rashes and other
skin conditions.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 84 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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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Rules and Regulations
(c) Preference compliance date. No
later than July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased cuts, burns, and
abrasions ointments. 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 cuts, burns, and abrasions
ointments.
§ 2902.67
Dishwashing products.
(a) Definition. Soaps and detergents
used for cleaning and clean rinsing of
tableware in either hand washing or
dishwashing.
(b) Minimum biobased content. The
Federal 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 July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased dishwashing
products. 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 dishwashing products.
emcdonald on DSK2BSOYB1PROD with RULES
§ 2902.68
Erosion control materials.
(a) Definition. Woven or non-woven
fiber materials manufactured for use on
construction, demolition, or other sites
to prevent wind or water erosion of
loose earth surfaces, which may be
combined with seed and/or fertilizer to
promote growth.
(b) Minimum biobased content. The
Federal 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 July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased erosion control
materials. 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 erosion control materials.
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§ 2902.69
Floor cleaners and protectors.
(a) Definition. Cleaning solutions for
either direct application or use in floor
scrubbers for wood, vinyl, tile, or
similar hard surface floors. Products
within this item are marketed
specifically for use on industrial,
commercial, and/or residential flooring.
(b) Minimum biobased content. The
Federal 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 July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased floor cleaners and
protectors. 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 floor cleaners and
protectors.
§ 2902.70
Hair care products.
(a) Definitions. (1) Personal hygiene
products specifically formulated for hair
cleaning and treating applications,
including shampoos and conditioners.
(2) Hair care products for which
Federal preferred procurement applies
are:
(i) Shampoos. These are products
whose primary purpose is cleaning hair.
Products that contain both shampoos
and conditioners are included in this
subcategory because the primary
purpose of these products is cleaning
the hair.
(ii) Conditioners. These are products
whose primary purpose is treating hair
to improve the overall condition of hair.
(b) Minimum biobased content. The
minimum biobased content for all hair
care products 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. The applicable
minimum biobased contents for the
Federal preferred procurement products
are:
(1) Shampoos—66 percent.
(2) Conditioners—78 percent.
(c) Preference compliance date. No
later than July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased hair care products.
By that date, Federal agencies that have
the responsibility for drafting or
reviewing specifications for items to be
procured shall ensure that the relevant
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specifications require the use of
biobased hair care products.
§ 2902.71
Interior paints and coatings.
(a) Definition. (1) Pigmented liquids,
formulated for use indoors, that dry to
form a film and provide protection and
added color to the objects or surfaces to
which they are applied.
(2) Interior paints and coatings
products for which Federal preferred
procurement applies are:
(i) Interior latex and waterborne alkyd
paints and coatings.
(ii) Interior oil-based and
solventborne alkyd paints and coatings.
(b) Minimum biobased content. The
minimum biobased content for all
interior paints and coatings products
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. The applicable
minimum biobased contents for the
Federal preferred procurement products
are:
(1) Interior latex and waterborne
alkyd paints and coatings—20 percent.
(2) Interior oil-based and solventborne
alkyd paints and coatings—67 percent.
(c) Preference compliance date. No
later than July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased interior paints and
coatings. 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 interior paints and coatings.
(d) Determining overlap with an EPAdesignated recovered content product.
Qualifying biobased products within the
interior latex and waterborne alkyd
paints and coatings subcategory may, in
some cases, overlap with the EPAdesignated recovered content products:
Reprocessed latex paints and
consolidated latex paints. USDA is
requesting that manufacturers of these
qualifying biobased products provide
information on the USDA 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
whether or not a qualifying biobased
product overlaps with EPA-designated
reprocessed latex paints and
consolidated latex paints and which
product should be afforded the
preference in purchasing.
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Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Rules and Regulations
Note to paragraph (d): Biobased
interior latex and waterborne alkyd
paints and coatings products within this
subcategory can compete with similar
reprocessed latex paint and
consolidated latex paint products with
recycled content. Under the Resource
Conservation and Recovery Act of 1976,
section 6002, the U.S. Environmental
Protection Agency designated
reprocessed latex paints and
consolidated latex paints 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 247.12.
§ 2902.72
Oven and grill cleaners.
(a) Definition. Liquid or gel cleaning
agents used on high temperature
cooking surfaces such as barbeques,
smokers, grills, stoves, and ovens to
soften and loosen charred food, grease,
and residue.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 66 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 July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased oven and grill
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 oven and grill cleaners.
emcdonald on DSK2BSOYB1PROD with RULES
§ 2902.73
Slide way lubricants.
(a) Definition. Products used to
provide lubrication and eliminate stickslip and table chatter by reducing
friction between mating surfaces, or
slides, found in machine tools.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 74 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 July 23, 2012, procuring
agencies, in accordance with this part,
will give a procurement preference for
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qualifying biobased slide way
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 slide way lubricants.
non-durable thermal shipping
containers.
§ 2902.74
43819
BILLING CODE 3410–93–P
Thermal shipping containers.
(a) Definitions. (1) Insulated
containers designed for shipping
temperature-sensitive materials.
(2) Thermal shipping containers for
which Federal preferred procurement
applies are:
(i) Durable thermal shipping
container. These are thermal shipping
containers that are designed to be
reused over an extended period of time.
(ii) Non-durable thermal shipping
containers. These are thermal shipping
containers that are designed to be used
once.
(b) Minimum biobased content. The
minimum biobased content for all
thermal shipping container products
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. The applicable
minimum biobased contents for the
Federal preferred procurement products
are:
(1) Durable thermal shipping
containers—21 percent.
(2) Non-durable thermal shipping
containers—82 percent.
(c) Preference compliance date—(1)
Durable thermal shipping containers.
Determination of the preference
compliance date for durable thermal
shipping containers is deferred until
USDA identifies two or more
manufacturers of biobased durable
thermal shipping containers. At that
time, USDA will publish a document in
the Federal Register announcing that
Federal agencies have one year from the
date of publication to give procurement
preference to biobased durable thermal
shipping containers.
(2) Non-durable thermal shipping
containers. Determination of the
preference compliance date for nondurable thermal shipping containers is
deferred until USDA identifies two or
more manufacturers of biobased nondurable thermal shipping containers. At
that time, USDA will publish a
document in the Federal Register
announcing that Federal agencies have
one year from the date of publication to
give procurement preference to biobased
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Dated: July 15, 2011.
Pearlie S. Reed,
Assistant Secretary for Administration, U.S.
Department of Agriculture.
[FR Doc. 2011–18478 Filed 7–21–11; 8:45 am]
DEFENSE NUCLEAR FACILITIES
SAFETY BOARD
10 CFR Part 1703
FOIA Fee Schedule Update
Defense Nuclear Facilities
Safety Board.
ACTION: Establishment of FOIA Fee
Schedule.
AGENCY:
The Defense Nuclear
Facilities Safety Board is publishing its
Freedom of Information Act (FOIA) Fee
Schedule Update pursuant to the
Board’s regulations.
DATES: Effective Date: July 29, 2011.
FOR FURTHER INFORMATION CONTACT:
Brian Grosner, General Manager,
Defense Nuclear Facilities Safety Board,
625 Indiana Avenue, NW., Suite 700,
Washington, DC 20004–2901, (202) 694–
7060.
SUPPLEMENTARY INFORMATION: The FOIA
requires each Federal agency covered by
the Act to specify a schedule of fees
applicable to processing of requests for
agency records. 5 U.S.C. 552(a)(4)(A)(i).
On May 16, 2011 the Board published
for comment in the Federal Register its
Proposed FOIA Fee Schedule, 76 FR
28194. In response to the notice, one
comment was received regarding
excessive fees. The Board’s 2010 and
2011 FOIA fee schedules are the same;
there is no proposed increase.
The Board is now establishing the Fee
Schedule. Pursuant to 10 CFR
1703.107(b)(6) of the Board’s
regulations, the Board’s General
Manager will update the FOIA Fee
Schedule once every 12 months. The
previous Fee Schedule Update was
published in the Federal Register and
went into effect on June 15, 2010, 75 FR
39629.
SUMMARY:
Board Action
Accordingly, the Board issues the
following schedule of updated fees for
services performed in response to FOIA
requests:
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Agencies
[Federal Register Volume 76, Number 141 (Friday, July 22, 2011)]
[Rules and Regulations]
[Pages 43808-43819]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18478]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Office of Energy Policy and New Uses
7 CFR Part 2902
RIN 0503-AA36
Designation of Biobased Items for Federal Procurement
AGENCY: Departmental Management, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Agriculture (USDA) is amending the
Guidelines for Designating Biobased Products for Federal Procurement,
to add 14 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 (referred to
in this document as ``section 9002''). USDA is also establishing
minimum biobased contents for each of these items.
DATES: This rule is effective August 22, 2011.
FOR FURTHER INFORMATION CONTACT: Ron Buckhalt, USDA, Office of
Procurement and Property Management, Room 361, Reporters Building, 300
7th St. SW., Washington, DC 20024; e-mail: biopreferred@usda.gov; phone
(202) 205-4008. Information regarding the Federal biobased 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. Summary of Changes
IV. Discussion of Public Comments
V. Regulatory Information
A. Executive Order 12866: Regulatory Planning and Review
B. Regulatory Flexibility Act (RFA)
C. Executive Order 12630: Governmental Actions and Interference
With Constitutionally Protected Property Rights
D. Executive Order 12988: Civil Justice Reform
E. Executive Order 13132: Federalism
F. Unfunded Mandates Reform Act of 1995
G. Executive Order 12372: Intergovernmental Review of Federal
Programs
H. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
I. Paperwork Reduction Act
J. E-Government Act
K. Congressional Review Act
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 November
23, 2010, a proposed rule in the Federal Register (FR) for the purpose
of designating a total of 14 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 75 FR 71492. This rulemaking is referred to in this
preamble as Round 7 (RIN 0503-AA36).
In the proposed rule, USDA proposed designating the following 14
items for the preferred procurement program: Animal repellents; bath
products; bioremediation materials; compost activators and
accelerators; concrete and asphalt cleaners; cuts, burns, and abrasions
ointments; dishwashing products; erosion control materials; floor
cleaners and protectors; hair care products, including shampoos and
conditioners as subcategories; interior paints and coatings; oven and
grill cleaners; slide way lubricants; and thermal shipping containers,
including durable and non-durable thermal shipping containers as
subcategories.
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 and vendors 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 requirements, uses and/or different performance
specifications. Where such subgroups exist, USDA intends to create
subcategories within the designated items. In sum, USDA looks at the
products within each item category to evaluate whether there are
subgroups of products within the item that have different
characteristics or that meet different performance specifications and,
where USDA finds these types of differences, it intends to create
subcategories with the minimum biobased content based on the tested
products within the subcategory.
For some items, however, USDA may not have sufficient information
at the time of designation to create subcategories within an item. In
such instances, USDA may either designate the item without creating
subcategories (i.e., defer the creation of subcategories) or designate
one subcategory and defer designation of other subcategories
[[Page 43809]]
within the item until additional information is obtained. Once USDA has
received sufficient additional information to justify the designation
of a subcategory, the subcategory will be designated through the
proposed and final rulemaking process.
Within today's final rule, USDA has subcategorized three of the
items being designated. The first item is hair care products and the
subcategories are (1) shampoo products, and (2) conditioner products.
The second item is interior paints and coatings and the subcategories
are (1) interior latex and waterborne alkyd paints and coatings, and
(2) interior oil-based and solventborne alkyd paints and coatings. The
third item is thermal shipping containers and the subcategories are (1)
durable thermal shipping containers, and (2) non-durable thermal
shipping containers.
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. Because the submission of product
samples for biobased content testing is on a strictly voluntary basis,
USDA was able to obtain samples only from those manufacturers who
volunteered to invest the resources required to submit the samples.
In addition to considering the biobased content test data for each
item, USDA also considers other factors including public comments
received on the proposed minimum biobased contents and product
performance information. USDA also considers the overall range of the
tested biobased contents within an item, groupings of similar values,
and breaks (significant gaps between two groups of values) in the
biobased content test data array. USDA evaluates this information to
determine whether some products that may have a lower biobased content
also have unique performance or applicability attributes that would
justify setting the minimum biobased content at a level that would
include these products. USDA believes that this evaluation process
allows it to establish minimum biobased contents based on a broad set
of factors to assist the Federal procurement community in its decisions
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, 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 designated items and their subcategories, USDA will
evaluate whether the minimum biobased content for a designated item or
subcategory 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 within that designated item are identified and tested. In
today's final rule, the minimum biobased contents for both
subcategories under the thermal shipping containers designated item are
based on a single tested product. Given that only three biobased
products have been identified in this item, and only one manufacturer
of products within each subcategory supplied a sample for testing, USDA
believes it is reasonable to set minimum biobased contents for these
subcategories based on the single data point for each subcategory.
Overlap with EPA's Comprehensive Procurement Guideline program for
recovered content products under the Resource Conservation and Recovery
Act (RCRA) Section 6002. Some of the products that are biobased items
designated for preferred procurement under the preferred procurement
program may also be items the Environmental Protection Agency (EPA) has
designated under the EPA's Comprehensive Procurement Guideline (CPG)
for products containing recovered materials. In situations where it
believes there may be an overlap, USDA is asking manufacturers of
qualifying biobased products to make additional product and performance
information available to Federal agencies conducting market research 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. Manufacturers are asked to provide information
highlighting the sustainable features of their biobased products and 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 fossil energy-based components
(including petroleum, coal, and natural gas) and whether the product
contains recovered materials. Federal agencies also may ask
manufacturers for information on a product's biobased content and its
profile against environmental and health measures and life-cycle costs
(the ASTM Standard D7075, ``Standard Practice for Evaluating and
Reporting Environmental Performance of Biobased Products,'' or the
Building for Environmental and Economic Sustainability (BEES) analysis
for evaluating and reporting on environmental performance of biobased
products). Federal agencies may then use this information to make
purchasing decisions based on the sustainability features of the
products. Detailed information on ASTM Standard D7075, and other ASTM
standards, can be found on ASTM's Web site at https://www.astm.org.
Information on the BEES analytical tool can be found on the Web site
https://www.bfrl.nist.gov/oae/software/bees.html.
Section 6002 of RCRA requires a procuring agency procuring an item
designated by EPA generally to procure such an item composed of the
highest percentage of recovered materials content practicable. However,
a procuring agency may decide not to procure 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 reasonable price, availability, and performance
considerations.
This final rule designates one item for preferred procurement for
which there may be overlap with an EPA-designated recovered content
product. The interior latex and waterborne alkyd subcategory within the
interior paints and coatings item may overlap with the EPA-
[[Page 43810]]
designated recovered content products ``reprocessed latex paints'' and
``consolidated latex paints.'' EPA provides recovered materials content
recommendations for these recovered content products in a Recovered
Materials Advisory Notice (RMAN I). The RMAN recommendations for these
CPG products 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.
Federal Government Purchase of Sustainable Products. The Federal
government's sustainable purchasing program includes the following
three statutory preference programs for designated products: The
BioPreferred Program, the Environmental Protection Agency's
Comprehensive Procurement Guideline for products containing recovered
materials, and the Environmentally Preferable Purchasing program. The
Office of the Federal Environmental Executive (OFEE) and the Office of
Management and Budget (OMB) encourage agencies to implement these
components comprehensively when purchasing products and services.
Procuring agencies should note that not all biobased products are
``environmentally preferable.'' For example, unless cleaning products
contain no or reduced levels of metals and toxic and hazardous
constituents, they can be harmful to aquatic life, the environment,
and/or workers. Household cleaning products that are formulated to be
disinfectants are required, under the Federal Insecticide, Fungicide
and Rodenticide Act (FIFRA), to be registered with EPA and must meet
specific labeling requirements warning of the potential risks
associated with misuse of such products. When purchasing
environmentally preferable cleaning products, many Federal agencies
specify that products must meet Green Seal standards for institutional
cleaning products or that the products have been reformulated in
accordance with recommendations from the EPA's Design for the
Environment (DfE) program. Both the Green Seal standards and the DfE
program identify chemicals of concern in cleaning products. These
include zinc and other metals, formaldehyde, ammonia, alkyl phenol
ethoxylates, ethylene glycol, and volatile organic compounds (VOC). In
addition, both require that cleaning products have neutral or less
caustic pH.
In contrast, some biobased products may be more environmentally
preferable than some products that meet Green Seal standards for
institutional cleaning products or that have been reformulated in
accordance with EPA's DfE program. To fully compare products, one must
look at the ``cradle-to-grave'' impacts of the manufacture, use, and
disposal of products. Biobased products that will be available for
preferred procurement under this program have been assessed as to their
``cradle-to-grave'' impacts.
One consideration of a product's impact on the environment is
whether (and to what degree) it introduces new fossil carbon into the
atmosphere. Fossil carbon is derived from non-renewable sources
(typically fossil fuels such as coal and oil), whereas renewable
biomass carbon is derived from renewable sources (biomass). Qualifying
biobased products offer the user the opportunity to manage the carbon
cycle and reduce the introduction of new fossil carbon into the
atmosphere.
Manufacturers of qualifying biobased products designated under the
preferred procurement program will be able to provide, at the request
of Federal agencies, factual information on environmental and human
health effects of their products, including the results of the ASTM
D7075, or the comparable BEES analysis which examines 12 different
environmental parameters, including human health. Therefore, USDA
encourages Federal procurement agencies to consider that USDA has
already examined all available information on the environmental and
human health effects of biopreferred products, when making their
purchasing decisions.
Other Preferred Procurement Programs. Federal procurement officials
should also note that biobased products may be available for purchase
by Federal agencies through the AbilityOne Program (formerly known as
the Javits-Wagner-O'Day (JWOD) program). Under this program, members of
organizations including the National Industries for the Blind (NIB) and
the National Institute for the Severely Handicapped (NISH) offer
products and services for preferred procurement by Federal agencies. A
search of the AbilityOne Program's online catalog (www.abilityone.gov)
indicated that four of the items being designated today (concrete and
asphalt cleaners, dishwashing detergent, floor cleaners and protectors,
and hair care products) are available through the AbilityOne Program.
While there is no specific product within these items identified in the
AbilityOne online catalog as being a biobased product, it is possible
that such biobased products are available or will be available in the
future. Also, because additional categories of products are frequently
added to the AbilityOne Program, it is possible that biobased products
within other items being designated today may be available through the
AbilityOne Program in the future. Procurement of biobased products
through the AbilityOne Program would further the objectives of both the
AbilityOne Program and the preferred procurement program.
Outreach. To augment its own research, USDA consults with industry
and Federal stakeholders to the preferred procurement program during
the development of the rulemaking packages for the designation of
items. USDA consults with stakeholders to gather information used in
determining the order of item designation and in identifying:
Manufacturers producing and marketing products that fall within an item
proposed for designation; performance standards used by Federal
agencies evaluating products to be procured; and warranty information
used by manufacturers of end user equipment and other products with
regard to biobased products.
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. Based on these results, USDA
will then propose new items for designation for preferred procurement.
In the preamble to the first six items designated for preferred
procurement (71 FR 13686, March 16, 2006), USDA stated that it planned
to identify approximately 10 items in each future rulemaking. In an
effort to finalize the designation of more items in a shorter time
period, USDA now plans to increase the number of items in each
rulemaking, whenever possible. Thus, today's final rulemaking
designates 14 items for preferred procurement.
USDA has developed a preliminary list of items for future
designation and has posted this preliminary list on the BioPreferred
Web site. While this list presents an initial prioritization of items
for designation, USDA cannot identify with 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
[[Page 43811]]
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.
III. Summary of Changes
As a result of the comments received on the proposed rule, USDA has
made several changes in finalizing the proposed rule. These changes are
summarized in the remainder of this section. A summary of each comment
received, and USDA's response to the comment, is presented in section
IV.
The definitions of three proposed items were revised to avoid
potential overlap with previously designated items. The definition of
the bath products designated item was revised to specifically exclude
products marketed as hand cleaners and/or hand sanitizers. The
definition of the concrete and asphalt cleaners designated item was
revised to include only those products marketed for use in commercial
or residential construction or industrial applications. The definition
of the floor cleaners and protectors designated item was revised to
include only those products marketed specifically for use on
industrial, commercial, and/or residential flooring.
The proposed item interior paints and coatings was subcategorized.
The subcategories are (1) interior latex and waterborne alkyd paints
and coatings, and (2) interior oil-based and solventborne alkyd paints
and coatings.
The discussion of potential overlap with the EPA recovered content
product re-refined lubricating oil was removed from the slide way
lubricants.
IV. Discussion of Public Comments
USDA solicited comments on the proposed rule for 60 days ending on
January 24, 2011. USDA received comments from five commenters by that
date. The comments were from three Federal government agencies and two
biobased product manufacturers.
In the remainder of this section, USDA first addresses two general
comments that relate to the overall designation process. Comments
related to the designation of specific items are presented next,
followed by USDA's response to those comments.
General
Comment: One commenter stated that the BioPreferred Web site might
imply to some that the listed products have been tested and meet all
Federal requirements, when the primary test of concern is for biobased
content. The commenter stated that, in numerous cases, the products
have not been tested/evaluated for DoD applications. The commenter
suggested that there should be some type of statement on the Web site
explaining that the item type meets USDA requirements but not
necessarily those of any other component of the Federal government.
Response: USDA agrees with the commenter that the functional
performance of biobased products is of great concern to procuring
agencies and that such performance is not guaranteed as a part of the
designation process. USDA attempts to gather performance information
from biobased product manufacturers during the designation process, but
does not have the statutory authority to require manufacturers to
provide such information. The absence of industry standards listed in
association with a catalog entry simply indicates that the company has
elected not to provide any information about performance testing
associated with their products. Purchasing officials interested in
performance data associated with a specific product are encouraged to
contact the listed contacts for further information. USDA will consider
the feasibility of including a symbol in the catalog (when the
performance standards record is null) so that purchasing officials can
quickly see which products have testing standards associated with their
products.
New Product Category
Comment: One commenter believes that it is important to have a
product category designation for automotive motor oils. The commenter
states that there are categories for 2-cycle engine oil, and bar and
chain lubricant, which are typically petroleum-based products. The
commenter believes there would be significant benefit in designating
automotive motor oils as a product category in the next round. The
commenter stated that this could lead to the creation of more effective
and environmentally friendly motor oil from biobased materials.
Response: USDA thanks the commenter for the recommendation and is
willing to work with the commenter to obtain valid information
regarding the potential for establishing a product category for
automotive motor oils. USDA would be especially interested in obtaining
information related to performance characteristics of biobased
automotive motor oils, including documentation of successful
performance testing by recognized testing organizations such as ASTM
and SAE.
Animal Repellents
Comment: One commenter stated that Federal agencies are
implementing integrated pest management (IPM) in place of the use of
pesticides. The commenter recommends USDA address whether the use of
biobased animal repellents is consistent with Federal IPM efforts.
Response: USDA contacted Dr. Martin Draper, the National Program
Leader--Plant Pathology, of USDA's National Institute of Food and
Agriculture to discuss whether the use of biobased animal repellents is
consistent with Federal IPM programs. Dr. Draper stated that IPM
encourages the use of diverse methods of mitigating pest pressures, in
most cases reducing pesticide use. He further stated that biorational
pesticides and biological controls would be welcome and encouraged
within the constructs of IPM. He stated that IPM programs are focused
on efficacious products and strategies that optimize economic advantage
while reducing potential deleterious effects on the environment and
human health and that if the products that can do that are biobased,
all the better. He further stated that pest repellents would be
included as a component of IPM if that was an appropriate strategy.
According to Dr. Draper, exclusion, the best option in managing
vertebrate pests, is impractical or illegal in some cases. In those
cases, repellents become very important in the management of some very
damaging pests. Dr. Draper concluded by saying that he did not see
where the use of biobased animal repellents would be a conflict with
IPM programs.
Bath Products
Comment: One commenter believes that the proposed designation of
bath products overlaps with the previous designation of hand cleaners.
The commenter stated that manufacturers and purchasers need clear
guidance as to which biobased content level applies, as the recommended
minimum biobased content level for hand cleaners is slightly higher
than that proposed for bath products. The commenter further recommends
that USDA provide a clear definition of bath products that
distinguishes it from hand cleaners.
Response: USDA does not believe that the designation of bath
products overlaps significantly with the previous designation of hand
cleaners and sanitizers. Hand cleaners and sanitizers are defined as
products formulated exclusively for use as human hand personal care
products. Bath products, as defined, are personal hygiene
[[Page 43812]]
products, including soaps and other cleansers. However, USDA does agree
that there may be some confusion regarding these differences and has
amended the definition of bath products to state that these exclude
products that are specifically marketed as ``hand cleaners'' and/or
``hand sanitizer'' products.
Bioremediation Materials and Compost Activators and Accelerators
Comment: One commenter stated that the designation of
bioremediation materials and compost activators could lead to
unnecessary addition of biobased components to these products in order
to qualify for Federal procurement preference.
The commenter stated that a review of the Technical Support
Document indicates that the overwhelming majority of the products
identified within these two product categories consist of active
biological microorganism cultures. The commenter further noted that
some product descriptions also indicate that the product contains
nutrients or organic materials. However, the active ingredient is
typically a culture of microorganisms.
Thus, according to the commenter, developing a formula for sale to
the government by adding more biobased organic materials that simply
dilute the microbiological active ingredient is a logical response to
USDA's contemplated biobased content minimum. The commenter stated that
the result of a ``successful'' USDA designation in this area might be
simply the wasting of biobased products into the compost pile or into
soils being remediated. The commenter further stated that the addition
of biobased organic materials would also increase the use of packaging
materials, fuels, etc. for product transport, having a negative effect
on the environment.
The commenter also noted that neither of these product classes
appears to have standardized tests to determine product effectiveness--
which increases the difficulty to the government to avoid procurement
of diluted products prepared to satisfy a biobased content mandate.
The commenter recommends that the ``bioremediation materials''
product category and the ``compost activators and accelerators''
product category not be designated under the biobased procurement
preference program.
Response: USDA disagrees with the commenter's recommendation that
bioremediation materials and compost activators and accelerators not be
included in the biobased procurement preference program. Based on the
information collected prior to proposing these items for designation,
available products within these two items are almost universally high
in biobased content. Also, because the microorganisms that are the
active ingredients in the products would be counted as biobased
content, reducing the percentage of the microorganisms in the product
and increasing the biobased nutrient, or carrier, content would not
increase the overall biobased content of a product. In addition,
reformulating the product to include fewer microorganisms would tend to
hurt the performance of the product. Thus, manufacturers would have no
reason to add inactive biobased ingredients to increase the biobased
content of the products. USDA held a meeting with the commenter to
clarify the comments/responses and explain the rationale for finalizing
the designation of these two items, but did not make any changes in the
final rule.
Concrete and Asphalt Cleaners
Comment: One commenter stated that the proposed designation of
concrete and asphalt cleaners overlaps with the previously designated
graffiti remover. The commenter believes that guidance is needed as to
which biobased content applies, as the proposed minimum biobased
content level for graffiti remover is significantly lower than that for
the concrete and asphalt cleaners. The commenter further stated that
concrete and asphalt cleaners should be clearly distinguished from
graffiti remover.
Response: USDA reviewed the product information collected on both
the proposed concrete and asphalt cleaners item and the previously
designated graffiti remover item to investigate clarifications that
could be made to the definitions. Based on the product descriptions
provided by manufacturers, USDA found that products within the proposed
concrete and asphalt cleaners item were predominantly described as
being intended for use in construction or industrial applications.
Graffiti and grease remover products were generally described as being
intended for use in janitorial and/or institutional applications. USDA
has, therefore, clarified the definition of concrete and asphalt
cleaners to specify that products within this item include only those
marketed for use in construction or industrial applications.
Comment: One commenter, in reference to the Boeing Spec D6-17487P
listed in connection with the proposed concrete and asphalt cleaners
item, asked if proprietary standards like these are readily available
to the purchasing agencies. The commenter stated that, if so, their
Hazardous Minimization/Green Products Community would like access to
them.
Response: USDA does not have access to individual performance
specifications such as Boeing Specification D6-17487P. USDA suggests
that interested parties contact biobased product vendors/manufacturers,
or the entity that established the performance standard, directly
regarding access to their specifications.
Dishwashing Products
Comment: One commenter, in reference to the Boeing Spec D6-7127
listed in connection with the proposed dishwashing products item, asked
if proprietary standards like these are readily available to purchasing
agencies. The commenter stated that, if so, their Hazardous
Minimization/Green Products Community would like access to them.
Response: As stated in the response to a similar comment related to
the concrete and asphalt cleaners item, USDA does not have access to
individual performance standards and recommends that interested parties
contact biobased product vendors/manufacturers, or the entity that
established the performance standard.
Floor Cleaners and Protectors
Comment: One commenter believes that the proposed designation of
floor cleaners and protectors overlaps with the previous designation of
bathroom and spa cleaners, as both types of products can be used to
clean similar surfaces. The commenter believes that guidance is needed
as to which biobased content applies, as the proposed minimum biobased
content level for floor cleaners is slightly higher than that
recommended for bathroom cleaning products. The commenter further
stated that a definition of floor cleaners that clearly distinguishes
it from bathroom cleaners is needed.
Response: USDA has revised the definition of the proposed floor
cleaners and protectors item to specify that products within this item
are marketed specifically for use on industrial, commercial, and/or
residential flooring. USDA agrees with the commenter that some products
that are marketed within the previously designated bathroom and spa
cleaners item may be used on floors. Those products are generally
marketed as multi-surface cleaners formulated specifically for use in
bathrooms and spa areas. By specifying that applicable floor cleaner
and protector products are
[[Page 43813]]
those marketed specifically for use on flooring, USDA believes that
most overlay issues will be eliminated.
Hair Care Products
Comment: One commenter recommends that USDA create a category of
``personal care products,'' with bath products, hand cleaners, and hair
care products listed as subsets. Each item should be clearly defined to
be distinguishable from each other.
Response: USDA agrees with the commenter that some of the proposed
and previously designated items include products that are functionally
similar and could be more clearly defined to avoid overlap. USDA has
developed the designation rulemakings in several individual ``rounds''
as new product information was gathered. In addition, biobased product
manufacturers have continued to introduce biobased alternatives that
are marketed in an increasing variety of applications, especially in
the category of ``multi-purpose'' cleaners and lubricants. USDA
recognizes that the potential for many biobased products to be marketed
under multiple designated items continues to increase. On one hand,
this is encouraging because it means that biobased alternatives are
becoming more widespread and more marketable. On the other hand, it
means that some of the items that were designated early in the process
are not organized and defined in the most practical way. Once the
initial designation of those items for which information is readily
available has been completed, USDA intends to revisit the entire list
of designated items and undertake a reorganization to streamline and
clarify the items and update the minimum biobased content requirements,
as applicable.
Interior Paints and Coatings
Comment: One commenter proposes that this item designation be
subcategorized based on differences in the requirements, uses, and
performance specifications. Based on the USDA definition of subgroups,
the commenter believes two subgroups exist for interior paints and
coatings, ``interior latex and latex-hybrid paints and coatings'' and
``interior oil-based and alkyd paints and coatings.'' Because
significantly different technologies and chemistries are used to meet
the requirements, uses, and performance specific to each of these
subgroups, different minimum biobased content levels should be set for
each of these.
The commenter stated that coatings within the first proposed
subcategory, interior latex and latex-hybrid paints and coatings, are
carried in water and are capable of meeting all national and regional
VOC regulations. The commenter also stated that it is important that
procurement officers have biobased options capable of meeting the VOC
regulations in their particular region. The commenter stated that they
currently sell products that would fall into this subcategory and can
provide them to the USDA for biobased content testing. The commenter
recommended that a minimum level of approximately 20 percent biobased
carbon would be appropriate for the latex and latex hybrid-paints and
coatings subcategory.
According to the commenter, latex paint is the dominant coating
type used in the interior paint and coatings market; used for typical
painting projects, such as wall paint. The commenter stated that users
of latex paints have very specific performance expectations, including
fast drying times and low odor. The commenter noted that these are very
important factors, because the paint cost accounts for only about 20-30
percent of the total paint-job cost, with the majority of costs being
related to labor. Faster drying paints significantly reduce labor costs
and allow office buildings and other interior spaces to be quickly
returned to service after painting. These coatings are also carried in
water which results in low odor, low VOC and significantly lower
contribution to indoor air quality issues.
The commenter also stated that subcategorization of interior latex
and latex-hybrid paint and coatings will also provide the requested
clarity on the potential overlap that was identified by the USDA, with
the EPA's Resource Conservation and Recovery Act (RCRA). By
subcategorizing in this manner, there is no overlap for applications
that require a paint from the ``interior oil-based and alkyd paint and
coatings'' subcategory. The commenter stated that, in the case of
applications requiring paint from the ``interior latex and latex-hybrid
paints and coatings'' subcategory, the decision between a biobased
latex paint (USDA BioPreferred) or reprocessed/consolidated latex paint
(EPA RCRA) can be made by the procurement officer based on price,
availability, and performance considerations.
The commenter stated that the second proposed subcategory, interior
oil-based and alkyd paints and coatings are defined by the ACA as ``a
paint that contains drying oil, oil varnish or oil-modified resin as
the film-forming ingredient.'' The commenter explained that an alkyd
resin is defined by the ACA as ``synthetic resin modified with oil.''
Thus, alkyd paints and coatings are defined as ``coatings that contains
alkyd resins in the binder.'' The commenter also stated that these
coatings typically are carried in a natural or synthetic solvent and
therefore may not meet VOC regulations in certain geographical regions.
The commenter stated that the coating HC84-0015 tested by the USDA
qualifies for this subcategory and the coatings Q14G-0009, Q14G-0013,
and Q14G-0002, may qualify for this subcategory as well. The commenter
agrees with a 67 percent biobased content level for this subcategory.
The commenter explained that interior alkyd and oil-based paints in
the U.S. market are typically used for trim paint and as wood primers,
especially where tannin blocking is specifically required. The
commenter stated that users of alkyd and oil-based paints have very
specific performance expectations and that these coatings are used on
trim specifically for their hardness, smooth application, tannin
blocking ability, and the ability to achieve substantially higher gloss
levels. They can also be used for wall coatings when this type of
performance is required. In contrast to latex and latex hybrid, these
types of coatings are slow to dry and often have some odor associated
with them.
The commenter recommended the following changes to the proposed
designation of biobased interior paints and coatings for preferred
Federal procurement:
The subcategories should be based on their differentiated use and
performance specifications. Allowing for the inclusion of latex paints
will lead to wider adoption and use of biobased products in the
interior paints and coatings category.
The commenter believes that a level of 67 percent biobased content
is appropriate for the interior oil-based and alkyd paints and coatings
subcategory, but the level for the interior latex and latex-hybrid
paints and coatings should be approximately 20 percent biobased carbon
content.
The commenter also stated that the 100 percent biobased content
level found in product MXF6-0004 should not be used to determine the
minimum biobased content for interior paints and coatings or either of
the proposed subcategories because this type of coating is not feasible
for use and this product was not tested for biobased content as it is
intended to be used. The commenter stated that, when used as instructed
by the manufacture in the product description, the biobased content of
the full painting system will
[[Page 43814]]
be significantly lower. While the milk-paint base itself is biobased,
according to the product description provided by the USDA, it requires
mixing with an adhesive in order to adhere to non-porous surfaces (e.g.
any previously painted surfaces). Milk-paint manufactures also
typically recommend using an acrylic top-coat for durability. The
commenter stated that, since the adhesive is a necessary part of the
``coating'' to insure adhesion to the substrate, it must be included in
any determination of biobased content.
Response: USDA considered the information provided by the
commenter, reviewed the data previously collected on this proposed
item, and also researched other coating-related information available
on the Internet. USDA agrees with the commenter that the proposed item
should include at least two subcategories based on two fundamentally
different coating technologies.
USDA found that within the broad category of interior paints and
coatings all products can be categorized at the highest level as either
waterborne or solventborne. As the names imply, the products can be
divided into those that use water as the ``carrier'' liquid and those
that use a solvent other than water (e.g., typically petroleum-based
solvents). Waterborne coatings have traditionally been formulated as an
emulsion of petroleum based acrylic resins in water. These coatings
were low in VOC content, but did not contain biobased components.
Solventborne coatings have traditionally been formulated as plant based
(soy, linseed, castor) alkyd resins in petroleum based solvents. These
coatings have a much higher VOC content, but do include a biobased
component.
Recent advances in coating technology have resulted in the
formulation of waterborne coatings that include varying levels of plant
based alkyd resins. Thus, there are now biobased alternatives within
both the waterborne and solventborne coating types. While solventborne
alkyd coatings still generally contain a much higher biobased content,
waterborne coatings with a significant biobased content are becoming
increasingly popular. The commenter reported selling a line of
waterborne coating products with at least 20 percent biobased content.
USDA also contacted a major resin manufacturer who confirmed that their
products are used in waterborne alkyd coatings containing biobased
contents in the 20 to 30 percent range.
USDA agrees with the commenter that other types of coatings, such
as the milk-paint discussed by the commenter, are not generally
representative of the coating technologies that dominate the interior
coatings market. While various other types of coating technologies are
available, their use is very specialized and the volumes that would
potentially be purchased by Federal procurement officials is negligible
compared to waterborne and solventborne coatings. USDA has, therefore,
not considered these specialty coatings in establishing subcategories
for this item. However, to the extent that any of these specialty
coatings fall within the subcategories established in today's final
rule, they would be eligible for the same consideration for preferred
procurement as more traditional coatings.
For the reasons presented above, USDA has decided to create two
subcategories within the interior paints and coatings item. USDA
recognizes that there are many factors for purchasing officials to
consider when purchasing interior paints and coatings. Procurement
decisions must be made considering applicable VOC regulations as well
as a long list of necessary coating performance characteristics.
Creating two subcategories within the interior paints and coatings item
allows USDA to acknowledge the differences between the two basic
coating types and also to set minimum biobased contents that are
representative of each type. In the final rule, the two subcategories
are: (1) Interior latex and waterborne alkyd paints and coatings, and
(2) interior oil-based and solventborne alkyd paints and coatings. The
minimum biobased content of the first subcategory is 20 percent and the
minimum biobased content of the second subcategory is 67 percent. USDA
believes that these minimum biobased contents will result in procuring
officials being able to select from a sufficiently large number of
products to ensure that their performance needs can be met.
Comment: One commenter stated that, under E.O. 13423 and 13514,
Federal agencies are using interior paints with no or low VOC content
as part of their high performance sustainable building efforts. For
some agencies, the use of no- or low-VOC paints is necessary to help
meet air non-attainment area requirements. USDA should address the VOC
content of biobased paints and whether the use of these products is
consistent with agency efforts to reduce their use of VOC-containing
products.
Response: As discussed in the response to the previous comment,
USDA has subcategorized the interior paints and coatings item into two
subcategories. The two subcategories can generally be described as
being either waterborne (the latex and waterborne alkyds subcategory)
or solventborne (the oil-based and solventborne alkyds subcategory).
Waterborne coatings, as the name implies, use water as the carrier for
the resins and pigments. Solventborne coatings use an organic solvent
(typically a petroleum-derived solvent) as the carrier. The vast
majority of coatings used in the interior paints and coatings market
are waterborne coatings and one of the primary driving factors in the
emergence of waterborne technology was the low organic solvent content
of these coatings. Not only do these coatings meet VOC requirements,
they are fast drying and low in odor. Solventborne coatings are
typically used as primers and for wood trim, cabinets, and furniture.
They are used primarily for their hardness, smooth application, and
higher gloss levels. Because they contain organic solvents, however,
these coatings may not meet VOC regulations in some geographical
regions.
USDA agrees with the commenter that the use of low VOC coatings is
an important consideration in many Federal agency's environmental
programs. USDA recommends that purchasing officials first consider the
performance and environmental concerns when deciding whether to
purchase waterborne or solventborne coatings. Once that decision is
made, purchasing officials must determine whether the available
biobased alternatives within each coating type meet their performance
and cost criteria.
Slide Way Lubricants
Comment: One commenter stated that the proposed designation of
slide way lubricants does not overlap with EPA's designation of re-
refined lubricating oils. The commenter stated that the EPA designation
applies to engine lubricants, hydraulic fluids, and gear oils.
Response: USDA thanks the commenter for the comment. USDA
reconsidered the potential for an overlap and agrees that slide way
lubricants do not overlap with EPA's designated re-refined lubricating
oil. USDA has removed the discussion of the potential overlap for this
item from the final rule.
Thermal Shipping Containers
Comment: One commenter stated that this proposed category has two
subcategories with only one manufacturer and that USDA is proposing to
defer the compliance date until additional manufacturers are
identified. The commenter suggests that
[[Page 43815]]
in future rounds it may be preferable to hold off designating an item
until more than one manufacturer is identified.
Response: 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), states that USDA shall ``* * * designate those
items (including finished products) that are or can be produced with
biobased products (including biobased products for which there is only
a single product or manufacturer in the category) that will be subject
to the preference described in paragraph (2) * * *''. Thus, USDA does
not agree that it should defer designating an item until more than one
manufacturer is identified.
V. Regulatory Information
A. Executive Order 12866: Regulatory Planning and Review
Executive Order 12866 requires agencies to determine whether a
regulatory action is ``significant.'' The Order defines a ``significant
regulatory action'' as one that is likely to result in a rule that may:
``(1) Have an annual effect on the economy of $100 million or more or
adversely affect, in a material way, the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities; (2) Create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency; (3) Materially alter
the budgetary impact of entitlements, grants, user fees, or loan
programs or the rights and obligations of recipients thereof; or (4)
Raise novel legal or policy issues arising out of legal mandates, the
President's priorities, or the principles set forth in this Executive
Order.''
Today's final rule has been determined by the Office of Management
and Budget to be not significant for purposes of Executive Order 12866.
We are not able to quantify the annual economic effect associated with
today's final rule. As discussed earlier in this preamble, USDA made
extensive efforts to obtain information on the Federal agencies' usage
within the 14 designated items, including their subcategories. These
efforts were largely unsuccessful. Therefore, attempts to determine the
economic impacts of today's final 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 price is ``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 today's final rule.
Consideration was also given to the fact that agencies may choose not
to procure designated items due to unreasonable price.
1. Summary of Impacts
Today's final rule 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 today's final rule. The final 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, availability and/or price of biobased products
acceptable is unknown, it is impossible to quantify the actual economic
effect of the rule.
2. Benefits of the Final Rule
The designation of these 14 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, and to spur development of the industrial base
through value-added agricultural processing and manufacturing in rural
communities. On a national and regional level, today's final rule can
result in expanding and strengthening markets for biobased materials
used in these items.
3. Costs of the Final Rule
Like the benefits, the costs of today's final 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. Pre-award procurement costs for Federal agencies may rise
minimally as the contracting officials conduct market research to
evaluate the performance, availability and price reasonableness of
preferred products before making a purchase.
B. Regulatory Flexibility Act (RFA)
The RFA, 5 U.S.C. 601-602, generally requires an agency to prepare
a regulatory flexibility analysis of any rule subject to notice and
comment rulemaking requirements under the Administrative Procedure Act
or any other statute unless the agency certifies that the rule will not
have a significant economic impact on a substantial number of small
entities. Small entities include small businesses, small organizations,
and small governmental jurisdictions.
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 their contractors, small governmental (city,
county, etc.) agencies are not affected. Thus, the proposal, if
promulgated, will not have a significant economic impact on small
governmental jurisdictions.
USDA anticipates that this program will affect 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,
[[Page 43816]]
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 rule are expected to be included under
the following NAICS codes: 324191 (petroleum lubricating oil and grease
manufacturing), 325320 (pesticide and other agricultural chemical
manufacturing), 325412 (pharmaceutical preparation manufacturing),
325510 (paint and coating manufacturing), 325611 (soap and other
detergent manufacturing), 325612 (polish and other sanitation goods
manufacturing), 325620 (toilet preparation manufacturing), 325998
(other miscellaneous chemical products and preparation manufacturing),
326150 (urethane and other foam product manufacturing), and 314999
(other miscellaneous textile mill products). USDA obtained information
on these 10 NAICS categories from the U.S. Census Bureau's Economic
Census database. USDA found that the Economic Census reports about
8,092 companies within these 10 NAICS categories and that these
companies own a total of about 9,255 establishments. Thus, the average
number of establishments per company is about 1.1. The Census data also
reported that of the 9,255 individual establishments, about 9,119 (98.5
percent) have fewer than 500 employees. USDA also found that the
overall average number of employees per company among these industries
is about 58, with only one segment reporting an average of more than
100 employees (the pharmaceutical preparation industry segment at about
250 employees per company). Thus, nearly all of the businesses fall
within the Small Business Administration's definition of a small
business (fewer 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. Most
of the items being designated in this rulemaking are typical consumer
products 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 final rule will not affect
existing purchase orders and it will not preclude procuring agencies
from continuing to purchase non-biobased items when biobased items do
not meet the availability, performance, or reasonable price criteria.
This final rule will also not preclude businesses from modifying their
product lines to meet new specifications or solicitation requirements
for these products containing biobased materials.
After considering the economic impacts of this final 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 final 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.
C. Executive Order 12630: Governmental Actions and Interference With
Constitutionally Protected Property Rights
This final 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 final rule does not have sufficient federalism implications to
warrant the preparation of a Federalism Assessment. Provisions of this
final 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 final 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 Executive Order 12372, which requires
intergovernmental consultation with State and local officials. This
program does not directly affect State and local governments.
H. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
Today's final rule does not significantly or uniquely affect ``one
or more Indian tribes, * * * the relationship between the Feder