Designation of Product Categories for Federal Procurement, 20281-20291 [2012-8068]
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Rules and Regulations
Federal Register
Vol. 77, No. 65
Wednesday, April 4, 2012
This section of the FEDERAL REGISTER
contains regulatory documents having general
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are keyed to and codified in the Code of
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DEPARTMENT OF AGRICULTURE
Office of Procurement and Property
Management
7 CFR Part 3201
RIN 0599–AA14
Designation of Product Categories for
Federal Procurement
Office of Procurement and
Property Management, USDA.
ACTION: Final rule.
AGENCY:
In compliance with the
February 21, 2012 Presidential
Memorandum ‘‘Driving Innovation and
Creating Jobs In Rural America through
Biobased and Sustainable Product
Procurement,’’ the U.S. Department of
Agriculture (USDA) is amending the
Guidelines for Designating Biobased
Products for Federal Procurement, to
add 13 sections to designate product
categories 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
product categories.
DATES: This rule is effective May 4,
2012.
SUMMARY:
Ron
Buckhalt, USDA, Office of Procurement
and Property Management, Room 361,
Reporters Building, 300 7th St. SW.,
Washington, DC 20024; email:
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.
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FOR FURTHER INFORMATION CONTACT:
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The
information presented in this preamble
is organized as follows:
SUPPLEMENTARY INFORMATION:
I. Authority
II. Background
III. Summary of Changes
IV. Discussion of Public Comments
V. Regulatory Information
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory 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 product categories 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 September 14,
2011, a proposed rule in the Federal
Register (FR) for the purpose of
designating a total of 13 product
categories for the preferred procurement
of biobased products by Federal
agencies (referred to hereafter in this
final rule as the ‘‘preferred procurement
program’’). The proposed rule can be
found at 76 FR 56884. This rulemaking
is referred to in this preamble as Round
8 (RIN 0599–AA14).
In the proposed rule, USDA proposed
designating the following 13 product
categories for the preferred procurement
program: Air fresheners and
deodorizers; asphalt and tar removers;
asphalt restorers; blast media; candles
and wax melts; electronic components
cleaners; floor coverings (non-carpet);
foot care products; furniture cleaners
and protectors; inks; packaging and
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insulating materials; pneumatic
equipment lubricants; and wood and
concrete stains.
Today’s final rule designates the
proposed product categories within
which biobased products will be
afforded Federal procurement
preference. USDA has determined that
each of the product categories 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 a product category
(a generic grouping of products) for
preferred procurement under the
BioPreferred Program, manufacturers of
all products under the umbrella of that
product category, 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 product category and must
contain at least the minimum biobased
content established for the designated
item. With the designation of these
specific product categories, USDA
invites the manufacturers and vendors
of qualifying products to provide
information on the product, contacts,
and performance testing for posting 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 product category. Once
USDA designates a product category,
procuring agencies are required
generally to purchase biobased products
within the designated product category
where the purchase price of the
procurement product exceeds $10,000
or where the quantity of such products
or of functionally equivalent products
purchased over the preceding fiscal year
equaled $10,000 or more.
Subcategorization. Within today’s
final rule, USDA has subcategorized one
of the product categories. That product
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category is inks and the subcategories
are: Specialty inks used to add extra
characteristics or features to printed
material; inks used for coated paper,
paperboard, plastic, and foil (sheetfed—
color and sheetfed—black); inks used in
photocopying and laser machines
(printer toner—<25 pages per minute
(ppm) and printer toner—≥25 ppm); and
inks used primarily in newsprint
(news).
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 today’s final rule, the
minimum biobased contents for the
‘‘inks (printer toner—≥25 ppm)’’ and the
‘‘inks (news)’’ subcategories of the inks
product category are based on a single
tested product within each subcategory.
Based on discussions with industry
stakeholders, USDA believes that the
tested products are representative of
other products within the subcategories.
Given that 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. USDA will
continue to solicit information on these
subcategories and if additional data on
the biobased contents for products
within these designated product
subcategories is obtained, USDA will
evaluate whether the minimum
biobased content should be revised.
Overlap with EPA’s Comprehensive
Procurement Guideline program for
recovered content products under the
Resource Conservation and Recovery
Act (RCRA) Section 6002. This final rule
designates three product categories for
Federal preferred procurement for
which there may be overlap with an
EPA-designated recovered content
product. The first is blast media, which
may overlap with the EPA-designated
recovered content product
‘‘Miscellaneous products—blasting
grit.’’ The second is floor coverings
(non-carpet), which may overlap with
the EPA-designated recovered content
product ‘‘Floor tiles.’’ The third is
pneumatic equipment lubricants, which
may overlap with the EPA-designated
recovered content product ‘‘Re-refined
lubricating oils.’’ EPA provides
recovered materials content
recommendations for these recovered
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content products in 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.
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 (air fresheners and
deodorizers, blast media, floor
coverings, and inks (printer toner—<25
ppm)) are available through the
AbilityOne Program. While there is no
specific product within these product
categories 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 product
categories 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
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packages for the designation of product
categories. USDA requests stakeholder
input in gathering information used in
determining the order of product
category designation and in identifying:
Manufacturers producing and marketing
products that fall within a product
category 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 product categories. 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
product categories for designation for
preferred procurement.
USDA has developed a preliminary
list of product categories for future
designation and has posted this
preliminary list on the BioPreferred
Web site. While this list presents an
initial prioritization of product
categories for designation, USDA cannot
identify with certainty which product
categories 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 product categories 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, product
categories with high biobased content
and for which sufficient technical
information can be obtained quickly
may be added or moved up on the
prioritization list.
III. Summary of Changes
As a result of the public comments
received on the proposed rule, USDA
has made 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.
In the final rule, USDA has changed
the name of one product category being
designated. That product category was
proposed as ‘‘packaging and insulating
materials,’’ but is being changed in the
final rule to ‘‘packing and insulating
materials.’’ After the proposed rule was
published, USDA learned of a potential
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issue involving the name and
description of the proposed product
category. It was USDA’s intent that the
product category would include ‘‘preformed or molded materials used to
hold package contents in place during
shipping’’ (76 FR 56894, September 14,
2011). As an example of the types of
products intended to be included in the
proposed category, USDA referred to the
foam ‘‘peanuts’’ that are used to protect
and prevent the movement of products
that are placed in cardboard or other
types of containers for shipment. It was
not USDA’s intent that the product
category would include the outside
container (e.g., the cardboard box) into
which the ‘‘peanuts’’ or molded foam
packing materials are placed. USDA has
concluded that the term ‘‘packaging’’ is
too broad for the purpose of defining the
product category and is likely to be
interpreted as including the outside box
or container into which ‘‘packing’’
material is placed. For this reason,
USDA is finalizing the product category
with the name ‘‘packing and insulating
materials.’’
In addition to revising the name of the
proposed product category to ‘‘packing
and insulating materials,’’ USDA has
lowered the minimum biobased content
for this product category to 74 percent.
At proposal, the recommended
minimum biobased content was 82
percent and was based on a product
with a tested biobased content of 85
percent. After the proposed rule was
published, the manufacturer of this
particular product re-tested the biobased
content of the product as part of the
application process to obtain
certification to use the USDA Certified
Biobased Product label. The results of
the re-test showed a biobased content of
77 percent. USDA does not have any
additional information to indicate
which of the testing results (85 percent
biobased or 77 percent biobased) are
more accurate. Because of this
uncertainty, and because the difference
between the two values is not large,
USDA decided that it was reasonable to
use the lower tested value to establish
the minimum biobased content in the
final rule. Therefore, the minimum
biobased content for the ‘‘packing and
insulating materials’’ product category
in the final rule is 74 percent (the 77
percent tested value minus 3 percentage
points to account for variability in the
testing procedure).
USDA has also revised the minimum
biobased content for the ‘‘furniture
cleaners and protectors’’ product
category from the proposed level of 77
percent to 71 percent in the final rule.
At the time the proposed minimum
biobased content for this product
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category was established, USDA had test
data on six products. The biobased
content of these six furniture cleaners
and protectors ranged from 9 percent to
100 percent, as follows: 9, 28, 80, 91, 98,
and 100 percent. As explained in the
preamble to the proposed rule (76 FR
56897), USDA decided to set the
minimum biobased content for the
product category at 77 percent, based on
the product with the tested biobased
content of 80 percent.
After the proposed rule was
published, USDA received biobased
content data on an additional product
within this product category. The
biobased content of this product is 74
percent, which is 6 percentage points
lower than the product originally
selected as the basis for the minimum
biobased content. With the new data
point included, the data fall into two
obvious groups, with a significant gap
between them. The two lowest data
points are 9 and 28 percent and the five
highest data points are 74, 80, 91, 98,
and 100 percent. USDA believes it is
reasonable to set the minimum biobased
content in the final rule based on the
product with the 74 percent biobased
content. Therefore, the minimum
biobased content for the ‘‘furniture
cleaners and protectors’’ product
category in the final rule is 71 percent
(the 74 percent tested value minus 3
percentage points to account for
variability in the testing procedure). As
is the case for all product categories,
USDA will continue to gather and
consider new biobased content testing
data. When found to be necessary,
USDA will revise the minimum
biobased content of product categories
through established notice and
comment rulemaking procedures.
IV. Discussion of Public Comments
USDA solicited comments on the
proposed rule for 60 days ending on
November 14, 2011. USDA received
eight comments by that date. Four of the
comments were from individual
citizens, two were from trade groups,
one was from a biobased product
manufacturer, and one was from a
Federal agency commenter. The
comments are presented below, along
with USDA’s response, and are grouped
by the product categories to which they
apply.
Blast Media
Comment: One trade group
commenter recommended that USDA
reconsider designating the blast media
product category for Federal
procurement. The commenter stated
that they do not believe that biobased
abrasives are always the best choice
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when selecting an environmentally
friendly abrasive because of
performance limitations that can cause
decreased coating life expectancies. The
commenter explained that the selection
of an abrasive for a particular project is
based on a life cycle assessment that
includes an examination of the
economic and environmental health and
safety impacts. The commenter
presented information on the properties
of an abrasive that must be considered,
including the shape, hardness,
durability, density, and size of the
abrasive. The commenter also presented
information on the relationship between
these properties of the abrasive and the
surface profile that is created on the
substrate when a variety of abrasive
materials are used. The commenter
stated that The Society for Protective
Coatings recommends biobased
abrasives for removing single layers of
paint, fine scale and other surface
contaminants when there is no technical
need to alter the metal substrate. The
commenter further stated that when it is
necessary to meet a surface preparation
standard to remove multiple layers of
paint and produce an acceptable surface
profile for optimal coating adhesion,
harder abrasives need to be specified.
According to the commenter, biobased
abrasives are environmentally friendly,
but are well below the minimum
hardness value needed to achieve an
acceptable surface profile for protecting
industrial structures and typically are
not reusable. The commenter concluded
by saying that using biobased abrasives
in lieu of standard abrasives will result
in coating system failure or, at best, will
significantly reduce the overall life
expectancy and sustainability of the
coating due to poor surface profile and
coating adhesion.
Response: USDA agrees with the
commenter’s general position that
traditional abrasives are needed in many
applications. The commenter mentions
industrial structures and the U.S. Navy
fleet as examples of applications where,
according to the commenter, biobased
blast media will not meet surface
coating specifications and performance
requirements. USDA recognizes that
blast media is a product category with
wide-ranging performance demands,
depending on the type and end use of
the substrate to which the blast media
is being applied. USDA points out that
the intent of designating biobased blast
media for Federal procurement
preference is not to eliminate the use of
traditional blast media in cases such as
those mentioned by the commenter. The
intent of the designation is, rather, to
require that Federal agencies give
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preference to biobased blast media in
those cases where such blast media
meet the agency’s performance
requirements as well as availability and
cost considerations. USDA recognizes
that performance is the key factor in
making purchasing decisions among the
various types of products within most
product categories. However, USDA
believes that many situations exist
where blast media are used to clean or
prepare substrates that are less durable
than structural steel. In many of these
applications, biobased blast media may
perform better than the more abrasive
metallic types of media described by the
commenter. Thus, USDA believes that
the designation of biobased blast media
is consistent with the goals and
objectives of the BioPreferred program
and has finalized the designation in
today’s rulemaking.
Floor Coverings (Non-Carpet)
Comment: One biobased product
manufacturer requested that their
product be added as a subcategory
under the floor coverings product
category. The commenter explained that
their product is manufactured using an
innovative thermal technology that
results in wood that has many
advantages over traditional chemically
treated wood. The commenter stated
that their product can be used in any
flooring application and is non-toxic,
dimensionally stable, and has a 30-year
warranty against rot. The commenter
also stated that their product is
environmentally preferable to most
other wood products because it is
manufactured without the use of toxic
chemicals and is a 100 percent biobased
product.
Response: USDA agrees with the
commenter that their product has many
beneficial attributes. USDA also believes
that, in some cases, this manufacturer’s
product may be a very desirable option
for use as a floor covering. However,
USDA does not believe that the creation
of a separate subcategory under the floor
covering (non-carpet) product category
is justified.
As explained in the preamble to the
proposed rule, USDA intends to
establish subcategories based on the
existence of ‘‘groups’’ of products with
different performance requirements or
different functional uses. In the case of
floor coverings, USDA did not identify
specific performance requirements that
the commenter’s product could meet
that could not be met by one or more of
the other available biobased products.
Another consideration for establishing
subcategories is the presence of a
product or group of products with some
unique desirable characteristics not
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found in the other products and whose
biobased content differs considerably
from other products in the category. The
91 percent minimum biobased content
that has been established for the product
category is sufficiently high that USDA
does not believe it is reasonable to
create a subcategory based on biobased
content differences. The 91 percent
minimum biobased content ensures that
products that qualify for the
procurement preference are truly
legitimate biobased products with only
minimal non-biobased ingredients.
In summary, USDA believes that the
floor covering (non-carpet) product
category is defined such that Federal
agencies may select from several
different biobased alternative products.
The decision on which biobased
products to purchase will be based on
a range of factors including durability,
appearance, required maintenance, and
cost. While the commenter’s product
may be a very competitive product
within the floor covering category,
USDA does not believe that creating a
separate subcategory for it is justified.
Inks
Comment: Four commenters stated
that they supported USDA efforts to
encourage the use of biobased printing
inks and toners. The commenters stated
that the use of such products will
increase the demand for agricultural
products grown domestically, decrease
our dependence on foreign oil,
positively affect the U.S. economy, and
protect our environment for future
generations of Americans.
Response: USDA agrees with the
commenters and thanks them for their
support of the BioPreferred program.
Comment: One commenter
representing a coalition of trade groups
stated that USDA needs to withdraw the
proposed designation of the inks
product category and conduct a more
detailed and thorough review to insure
that the correct biobased contents for
inks are recommended, as several
critical elements in the review are
deficient. The commenter stated that
USDA has not completed a thorough
investigation into existing Federal
requirements and industry standards for
biobased printing inks. In addition, the
commenter stated that USDA has set
limits without a complete
understanding of the technical issues
associated with biobased content in
different types of printing inks. The
commenter stated that another concern
not adequately addressed is the
financial and performance implications
of requiring the use of inks with high
biobased content. The commenter
recommends that USDA become
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familiar with the existing regulation that
sets minimum standards for biobased
materials in printing inks used in
government agencies. The commenter
stated that this regulation, the Vegetable
Ink Printing Act of 1994, requires that
Federal agencies use lithographic inks
with a specified vegetable oil content.
The commenter also stated that USDA
should look to existing industry
standards for inks with biobased
material content. The commenter noted
that one such program is SoySeal,
developed by the American Soybean
Association (ASA), which has set
minimum soy oil contents for a variety
of different classes of inks. The
commenter stated that ASA set these
standards based on their research on
incorporating soy oil into various types
of printing inks, their unique properties,
and testing of the formulations. The
percentages are expressed as the
percentage of soy oil out of the total
formula weight of the inks.
The commenter supports the total
formula weight approach taken by the
SoySeal program and recommends that
USDA also adopt this approach. The
commenter stated that the approach
taken by SoySeal to define soy content
limits by weight percent is readily
understood in the industry and should
be adopted by USDA. The commenter
stated that this method allows for
straightforward determination of soy or
biobased content, based on ink
formulation knowledge, instead of
requiring expensive testing using the
ASTM D6866 standard. The commenter
stated that the ASTM test method can
only be conducted by one lab and costs
$600 per sample. The commenter stated
that USDA did not specify in its
proposal how the sampling for the test
is to be conducted. According to the
commenter, it is not clear if a
representative formulation can be tested
or if each color of each ink is to be
tested and, since there are literally
thousands of possible ink formulations,
testing each and every ink is
economically infeasible. The commenter
stated that using a total ink formulation
approach certified by the ink
manufacturer provides a much more
economical approach. Also, according
to the commenter, it is unclear how the
biobased content guidelines set by
USDA compare to those set by the
SoySeal program because the two
systems (percent weight versus percent
of carbonaceous material that is
biobased) are not easily comparable.
The commenter asked, for example, if a
black news ink contains 40 percent
biobased material by weight, would it
meet USDA’s recommendations if tested
by the ASTM standard? The commenter
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stated that, ideally, USDA’s biobased
content recommendations should mirror
those recommended by the SoySeal
program, as inks with these soy oil
contents have been tested and proven to
be effective.
The commenter explained that while
the proposed offset ink limits may be
achievable for four color process inks
(i.e., cyan, yellow, magenta, and black),
the limits will certainly have a negative
impact on various blending systems
used. According to the commenter,
many printing inks are specially
blended to make unique colors, often
referred to as ‘‘spot colors’’ or by the
trade name ‘‘Pantone Matching
System,’’ which are required to match
exact colors. The commenter stated that
the limits set have the potential to
impact these inks, as well as Ultraviolet,
Electron Beam, and many metallic and
florescent inks that have unique
properties that may require higher nonbiobased content.
The commenter also stated that the
category of specialty inks used in the
study is far too vaguely defined and the
examples given are too diverse to be
listed together. In addition, according to
the commenter, the imposition of a level
of 66 percent biobased material is
extremely demanding for some of these
applications. For example, a typical
scratch and sniff ink might contain 20
percent of encapsulated fragrance, none
of which is biobased. This only leaves
room for 14 percent of other nonbiobased materials such as pigment,
binders and additives. The commenter
stated that these materials, many of
which are carbonaceous, cannot be
substituted for biobased materials and
their presence in these inks will make
it nearly impossible to meet the 66
percent biobased content proposed in
this program.
The commenter stated that, for toner
ink systems, biobased toners are not
commonly available in the U.S. market.
Currently, biobased xerographic inks
make up less than 1 percent of the U.S.
market, and are not available for
xerographic colored inks.
The commenter also stated that, in
terms of cost and performance, it must
be recognized that there are significant
issues associated with high levels of
biobased materials in printing inks.
According to the commenter, these
types of ink are almost always
significantly more expensive than their
non-biobased alternatives and, even
with the current high costs of
petroleum-based oils, soy oil still
commands close to a 50 percent
premium. In addition, the commenter
stated that it is common knowledge
within the graphic arts community that
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biobased often results inferior technical
performance [color reproduction] and
reduced press speeds to allow for longer
drying times. The commenter explained
that solvent based inks cannot be easily
replaced with bio-derived oils because
the oils do not volatilize quickly
enough.
The commenter stated that there is no
indication that an assessment of the cost
difference between conventional and
biobased inks was completed and that,
in order to create biobased purchasing
preferences, USDA needs to quantify the
environmental benefit of using a
biobased ink and assure that it is cost
effective.
The commenter stated that many of
the underlying assumptions used by
USDA to determine the specific limits
and ink types in the proposal are not
transparent or justified. The commenter
asked, as an example, of the 148
biobased inks identified by USDA, how
was a sample size of 19 selected to be
tested for biobased content by the
ASTM standard? Also, of the biobased
inks identified, how was a sample size
of 3 to be analyzed by BEES
determined? The commenter stated that,
given the large number of inks that are
on the market, it is not clear how USDA
concluded that its work was
representative or statistically significant.
The commenter stated that they do not
believe that these sample sizes are large
enough to show significant findings.
The commenter also stated that it is
unclear if the sampling was random, as
should be the case, or if the inks tested
were considered to be state-of-the-art
biobased inks. According to the
commenter, one of the difficulties in
interpreting the results of the study was
that the units used to complete the
BEES assessment were unclear, as the
sample size was identified as 300 square
inches, but not if those 300 square
inches were actual ink, or if it was 300
square inches of printed material.
Another concern expressed by the
commenter is the use of the Building for
Environmental and Economic
Sustainability (BEES) model for testing
the environmental impact of printing
ink. The commenter stated that USDA
does not indicate how a software
program designed to assess the impact
of building materials is applicable to an
industrial/consumer commodity such as
ink. The commenter also stated that the
study doesn’t indicate that a comparison
of the BEES impact of conventional and
biobased inks was conducted and that
while it is assumed that a material with
more biobased content would be better,
this needs to actually be confirmed.
The commenter provided a summary
of recommendations on the proposed
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biobased designations for inks, as
follows:
1. Refine the categories to better cover
the various types of printing inks used
from a broad perspective such as
process and spot or inks as well as
specific applications such as heatset
web offset lithographic, gravure (water &
solvent), and flexographic (water &
solvent). Energy curable (ultraviolet and
electron beam), water-based and inkjet
inks should have their own, separate
categories.
2. Refine the specialty ink category.
The current Specialty ink category is
much too broad to be able to assign a
biobased content across the board.
While some specialty inks could be
formulated to contain the 66 percent,
many others cannot.
3. Utilize the SoySeal limits as the
basis for the biobased content
guidelines.
4. Revise the standards to indicate the
total portion of the ink that is biobased,
rather than the total carbonaceous
portion of the ink that is biobased. This
will allow for more cost effective
determination of biobased content based
on ink formulation information, and is
already the accepted standard for
comparing biobased content in printing
inks.
5. Allow for the ink manufacturer to
certify the biobased content based on
formulation and not testing using the
ASTM D6866 test.
6. Biobased inks, as proposed, should
be evaluated to determine if they can
meet basic performance standards and
be required to meet the same
performance standards as conventional
inks. Manufacturers should not be given
the opportunity to gain a market
advantage based on production of inks
with high biobased content but a poor
image quality.
7. Conduct a true economic impact
analysis comparing the costs of the
proposed biobased materials as
compared to conventional materials.
8. To better understand the life-cycle
cost section, identify the ‘‘usage unit’’
for which price is specified.
9. To better understand the BEES
results, a functional unit of 300 square
inches was identified. Please clarify if
this is 300 square inches of ink, or 300
square inches of printed material.
Response: USDA appreciates the
interest and concerns expressed by the
commenter in the inks product category.
Unfortunately, many of the comments
and recommendations made by the
commenter would require USDA to
conduct studies and analyses that are
beyond the scope of the BioPreferred
program’s mandate to designate product
categories for federal procurement
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preference. Under section 9002, USDA
is directed to request from biobased
product manufacturers the technical
information that is used in the
designation process, but is not given the
authority to require that such
information be supplied. Thus, USDA
must rely on the voluntary submittal of
technical information from product
manufacturers. During the development
of the proposed rule, USDA requested
information from many soy ink
manufacturers but received information
from only a few. USDA developed the
proposed rule based on the information
available from those biobased ink
manufacturers who chose to voluntarily
supply it. Generally, the procedures
employed, and the types and level of
detail of the analyses performed, for the
inks product category were the same as
for the more than 60 product categories
designated to date. USDA will, however,
welcome the opportunity to meet with
this commenter and any other
representatives of the inks product
category to discuss ways in which
today’s final rule can be improved.
With regard to the commenter’s points
dealing with the Vegetable Ink Printing
Act, USDA recognizes that many federal
agencies’ printing operations are
covered by this Act. USDA points out
that the designation of biobased
products under section 9002 is not
meant to replace or revise the
requirements of the Vegetable Ink
Printing Act. Instead, the designation
under section 9002 is meant to extend
the use of biobased printing inks to
those printing operations that are not
subject to the Vegetable Ink Printing
Act. Under today’s final rule, such
printing operations must be performed
using complying biobased inks to the
extent that biobased inks meeting the
performance and cost criteria are
available.
The commenter also presented
numerous points regarding the
methodology used to determine
biobased content and the levels set as
the minimum biobased contents in the
proposed rule. USDA acknowledges that
the biobased content determined by
ASTM D6866 does not directly compare
to soy content determinations using the
SoySeal procedure. However, the use of
ASTM D6866 to determine biobased
content has been consistently required
for all designated product categories and
USDA believes it is appropriate for the
inks product category as well. As
pointed out by the commenter, inks are
typically formulated from solvents,
pigments, binders, and other additives.
USDA believes that using ASTM D6866
to determine the biobased content of
inks will encourage the development of
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biobased versions of each type of
ingredient in the ink. As for the number
of inks tested for biobased content and
the resulting proposed minimum
biobased contents, USDA relied on its
standard methodology of requesting that
manufacturers submit samples for
testing and then evaluating the results of
the testing to determine the proposed
minimum biobased content (see
‘‘Minimum Biobased Contents’’
discussion in the proposal preamble at
76 FR 56885). Additional information
regarding the biobased content testing
can also be found in the preamble to
proposed rule at 76 FR 56896. USDA
also notes that the BioPreferred program
Guidelines (7 CFR 3201.7) allows that
‘‘products that are essentially the same
formulation’’ need not be tested
individually.
The commenter offered
recommendations as to how USDA
should redefine the inks subcategories
in the final rule. USDA developed the
proposed inks subcategories based on
discussions with, and information
provided by, ink manufacturers. There
are, no doubt, many approaches that
could be taken in subcategorizing the
inks product category. USDA believes
that the proposed subcategories will be
sufficient for the initial efforts to
designate the inks product category.
USDA notes that the final rule does not
take effect for one year after the
publication date and, as mentioned
above, welcomes the opportunity to
meet with the commenter and others to
discuss revising, refining, or expanding
the subcategories at the earliest
opportunity. Once a consensus has been
reached between USDA and
participating industry representatives,
USDA will develop a rulemaking
package to propose changes to the
subcategories, if needed.
The commenter also questioned the
performance and cost of available
biobased inks. USDA recognizes that
performance and cost are key factors in
selecting the types of inks used in
printing/copying operations. As
discussed in several other responses in
this preamble, federal agencies are
required to consider designated
biobased products but are not required
to purchase and use them if the
available products are not capable of
meeting reasonable performance
expectations or are not priced
competitively with non-biobased
products. Section 9002 is very specific
regarding these exceptions. However,
USDA encourages federal agencies to
explore available biobased products and
communicate with biobased product
manufacturers regarding performance
and cost issues. Reputable biobased
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product manufacturers should be
willing to work with federal agencies to
resolve issues and they should also
recognize that, even with the federal
procurement preference, they will not
be successful if their products do not
perform up to expectations. In response
to the commenter’s question about the
BEES functional unit, the 300 square
inches used for the BEES analyses is 300
square inches of ink.
In summary, USDA acknowledges
that, because of time and budget
considerations, today’s designation of
inks is not based on exhaustive studies
and analyses. USDA also recognizes that
some elements of the designation rule
are subject to change as federal agencies
and biobased ink manufacturers gain a
better understanding of what is needed
to substitute biobased inks for
traditional inks. USDA invites the
commenter and any other
representatives of the ink manufacturing
industry to submit information and to
meet to discuss in detail future revisions
that may be needed to the designation
rule.
Packaging and Insulating Materials
Comment: One Federal agency
commenter expressed concern regarding
the proposed product category
‘‘Packaging and Insulating Materials’’
and its potential impact on the agency’s
hazardous waste contracting and
disposal efforts. Specifically, the
commenter requested clarification on
whether the biobased content
requirements in proposed section
3201.85, Packaging and Insulating
Materials, would apply to DOT/UN
combination shipping packages for
Hazardous Material/Hazardous Waste
shipments or whether DOT/UN
combination shipping packages might
be excluded. The commenter further
stated that if the proposed biobased
requirements were determined to apply
to such shipping packages, they would
need to know how the implementation
would affect such shipping.
Response: As discussed in section III
of this preamble, USDA has changed the
name of this product category in the
final rule to ‘‘packing and insulating
materials.’’ However, USDA believes
that the name change has no bearing on
the public comment or on the USDA
response to it. The final rule does not
provide a specific exemption from the
requirements of section 3201.85 based
on the types of material being shipped.
As proposed, biobased packaging
(packing) products receive the
procurement preference regardless of
the contents to be placed in the
shipping packages. USDA considered
the possibility of providing a specific
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exemption for hazardous material/
hazardous waste shipping activities, but
did not provide such an exemption in
the final rule. USDA decided that such
an exemption was not necessary
considering the language in the
BioPreferred Program Guidelines. As
stated in section 3201.3(c) of the
Guidelines: ‘‘Procuring agencies may
decide not to procure such products if
they are not reasonably priced or readily
available or do not meet specified or
reasonable performance standards.’’
With regard to the commenter’s
concerns related to the shipping of
hazardous material/hazardous waste,
the DOT requirements for the packaging
of such materials are spelled out in 49
CFR part 178. The burden to perform
testing to demonstrate that their
products are capable of meeting the
requirements of part 178 fall on those
biobased packaging material
manufacturers who wish to sell their
products to the Federal government.
Only if such a demonstration of
acceptable performance can be made are
Federal agencies obligated to give a
procurement preference to those
products and, even then, only if they are
available at reasonable costs. USDA
believes that with these provisions
already in the BioPreferred Program
Guidelines, the specific exemption
requested by the commenter is
unnecessary. If acceptable biobased
packing materials are available, they
should be given preference. However, if
the biobased alternatives are not
acceptable (in terms of performance,
availability, and cost), the agency may
continue to use the packing materials
currently in use. Thus, USDA is
finalizing the designation of ‘‘packing
and insulating materials’’ without any
specific exemptions.
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V. Regulatory Information
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory Review
Executive Order 12866, as
supplemented by Executive Order
13563, 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
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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 in
the preamble to the proposed
rulemaking, USDA made extensive
efforts to obtain information on the
Federal agencies’ usage within the 13
designated product categories, 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 biobased
products within designated product
categories 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
product categories 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
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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 13 product
categories 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 product
categories.
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 product
categories 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
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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 product categories 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 product categories
designated by this rulemaking, the
number is expected to be small. Because
biobased products represent a small
emerging market, only a small
percentage of all manufacturers, large or
small, are expected to develop and
market biobased products. Thus, the
number of small businesses
manufacturing biobased products
affected by this rulemaking is not
expected to be substantial.
The preferred procurement program
may decrease opportunities for
businesses that manufacture or sell nonbiobased products or provide
components for the manufacturing of
such products. Most manufacturers of
non-biobased products within the
product categories being designated for
preferred procurement in this rule are
expected to be included under the
following NAICS codes: 321918 (other
millwork, including flooring), 324191
(petroleum lubricating oil and grease
manufacturing), 325411 (medicinal and
botanical manufacturing), 325510 (paint
and coating manufacturing), 325612
(polish and other sanitation goods
manufacturing), 325620 (toilet
preparation manufacturing), 325910
(printing ink manufacturing), 325998
(other miscellaneous chemical products
and preparation manufacturing), 326150
(urethane and other foam product
manufacturing), and 313113 (thread 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 6,963
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companies within these 10 NAICS
categories and that these companies
own a total of about 8,139
establishments. Thus, the average
number of establishments per company
is about 1.2. The Census data also
reported that of the 8,139 individual
establishments, about 8,096 (99.5
percent) have fewer than 500
employees. USDA also found that the
overall average number of employees
per company among these industries is
about 42, with none of the segments
reporting an average of more than 100
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 product categories being
designated, but believes that the impact
will not be significant. Most of the
product categories 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 product categories 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 products when
biobased products 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,
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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 Federal
Government and Indian tribes, or * * *
the distribution of power and
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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.
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 3201
Biobased products, Procurement.
For the reasons stated in the
preamble, the Department of Agriculture
is amending 7 CFR chapter XXXII as
follows:
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CHAPTER XXXII—OFFICE OF
PROCUREMENT AND PROPERTY
MANAGEMENT, DEPARTMENT OF
AGRICULTURE
PART 3201—GUIDELINES FOR
DESIGNATING BIOBASED PRODUCTS
FOR FEDERAL PROCUREMENT
1. The authority citation for part 3201
continues to read as follows:
■
Authority: 7 U.S.C. 8102.
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2. Add §§ 3201.75 through 3201.87 to
subpart B to read as follows:
■
Sec.
3201.75
3201.76
3201.77
3201.78
3201.79
3201.80
3201.81
3201.82
3201.83
3201.84
3201.85
3201.86
3201.87
§ 3201.75
Air fresheners and deodorizers.
Asphalt and tar removers.
Asphalt restorers.
Blast media.
Candles and wax melts.
Electronic components cleaners.
Floor coverings (non-carpet).
Foot care products.
Furniture cleaners and protectors.
Inks.
Packing and insulating materials.
Pneumatic equipment lubricants.
Wood and concrete stains.
Air fresheners and deodorizers.
(a) Definition. Products used to
alleviate the experience of unpleasant
odors by chemical neutralization,
absorption, anesthetization, or masking.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 97 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 April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased air fresheners and
deodorizers. By that date, Federal
agencies that have the responsibility for
drafting or reviewing specifications for
products to be procured shall ensure
that the relevant specifications require
the use of biobased air fresheners and
deodorizers.
§ 3201.76
Asphalt and tar removers.
(a) Definition. Cleaning agents
designed to remove asphalt or tar from
equipment, roads, or other surfaces.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 80 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 April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased asphalt and tar
removers. By that date, Federal agencies
that have the responsibility for drafting
or reviewing specifications for products
to be procured shall ensure that the
relevant specifications require the use of
biobased asphalt and tar removers.
§ 3201.77
Asphalt restorers.
(a) Definition. Products designed to
seal, protect, or restore poured asphalt
and concrete surfaces.
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(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 68 percent, which shall be
based on the amount of qualifying
biobased carbon in the product as a
percent of the weight (mass) of the total
organic carbon in the finished product.
(c) Preference compliance date. No
later than April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased asphalt restorers. By
that date, Federal agencies that have the
responsibility for drafting or reviewing
specifications for products to be
procured shall ensure that the relevant
specifications require the use of
biobased asphalt restorers.
§ 3201.78
Blast media.
(a) Definition. Abrasive particles
sprayed forcefully to clean, remove
contaminants, or condition surfaces,
often preceding coating.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 94 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 April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased blast media. By that
date, Federal agencies that have the
responsibility for drafting or reviewing
specifications for products to be
procured shall ensure that the relevant
specifications require the use of
biobased blast media.
(d) Determining overlap with an EPAdesignated recovered content product.
Qualifying products within this item
may overlap with the EPA-designated
recovered content product:
Miscellaneous products—blasting grit.
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
blasting grit products and which
product should be afforded the
preference in purchasing.
Note to paragraph (d): Biobased blast
media within this designated product
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category can compete with similar blasting
grit products with recycled content. Under
the Resource Conservation and Recovery Act
of 1976, section 6002, the U.S.
Environmental Protection Agency designated
blasting grit products containing recovered
materials as products for which Federal
agencies must give preference in their
purchasing programs. The designation can be
found in the Comprehensive Procurement
Guideline, 40 CFR 247.17.
§ 3201.79
Candles and wax melts.
(a) Definition. Products composed of a
solid mass and either an embedded
wick that is burned to provide light or
aroma, or that are wickless and melt
when heated to produce an aroma.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 88 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 April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased candles and wax
melts. By that date, Federal agencies
that have the responsibility for drafting
or reviewing specifications for products
to be procured shall ensure that the
relevant specifications require the use of
biobased candles and wax melts.
emcdonald on DSK29S0YB1PROD with RULES
§ 3201.80 Electronic components
cleaners.
(a) Definition. Products that are
designed to wash or remove dirt or
extraneous matter from electronic parts,
devices, circuits, or systems.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 91 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 April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased electronic
components cleaners. By that date,
Federal agencies that have the
responsibility for drafting or reviewing
specifications for products to be
procured shall ensure that the relevant
specifications require the use of
biobased electronic components
cleaners.
§ 3201.81
Floor coverings (non-carpet).
(a) Definition. Products, other than
carpet products, that are designed for
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use as the top layer on a floor. Examples
are bamboo, hardwood, and cork tiles.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 91 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 April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased floor coverings
(non-carpet). By that date, Federal
agencies that have the responsibility for
drafting or reviewing specifications for
products to be procured shall ensure
that the relevant specifications require
the use of biobased floor coverings (noncarpet).
(d) Determining overlap with an EPAdesignated recovered content product.
Qualifying products within this item
may overlap with the EPA-designated
recovered content product: Construction
Products—floor tiles. 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
floor tile products and which product
should be afforded the preference in
purchasing.
Note to paragraph (d): Biobased floor
coverings within this designated product
category can compete with similar floor tile
products with recycled content. Under the
Resource Conservation and Recovery Act of
1976, section 6002, the U.S. Environmental
Protection Agency designated floor tile
products containing recovered materials as
products for which Federal agencies must
give preference in their purchasing programs.
The designation can be found in the
Comprehensive Procurement Guideline, 40
CFR 247.17.
§ 3201.82
Foot care products.
(a) Definition. Products formulated to
be used in the soothing or cleaning of
feet.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 83 percent, which shall be
based on the amount of qualifying
biobased carbon in the product as a
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percent of the weight (mass) of the total
organic carbon in the finished product.
(c) Preference compliance date. No
later than April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased foot care products.
By that date, Federal agencies that have
the responsibility for drafting or
reviewing specifications for products to
be procured shall ensure that the
relevant specifications require the use of
biobased foot care products.
§ 3201.83 Furniture cleaners and
protectors.
(a) Definition. Products designed to
clean and provide protection to the
surfaces of household furniture other
than the upholstery.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 71 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 April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased furniture cleaners
and protectors. By that date, Federal
agencies that have the responsibility for
drafting or reviewing specifications for
products to be procured shall ensure
that the relevant specifications require
the use of biobased furniture cleaners
and protectors.
§ 3201.84
Inks.
(a) Definitions. (1) Inks are liquid or
powdered materials that are available in
several colors and that are used to create
the visual image on a substrate when
writing, printing, and copying.
(2) Inks for which Federal preferred
procurement applies are:
(i) Specialty inks. Inks used by
printers to add extra characteristics to
their prints for special effects or
functions. Specialty inks include, but
are not limited to: CD printing, erasable,
FDA compliant, invisible, magnetic,
scratch and sniff, thermochromic, and
tree marking inks.
(ii) Inks (sheetfed—color). Pigmented
inks (other than black inks) used on
coated and uncoated paper, paperboard,
some plastic, and foil to print in color
on annual reports, brochures, labels,
and similar materials.
(iii) Inks (sheetfed—black). Black inks
used on coated and uncoated paper,
paperboard, some plastic, and foil to
print in black on annual reports,
brochures, labels, and similar materials.
(iv) Inks (printer toner—<25 pages per
minute (ppm)). Inks that are a powdered
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chemical, used in photocopying
machines and laser printers, which is
transferred onto paper to form the
printed image. These inks are
formulated to be used in printers with
standard fusing mechanisms and print
speeds of less than 25 ppm.
(v) Inks (printer toner—≥25 ppm).
Inks that are a powdered chemical, used
in photocopying machines and laser
printers, which is transferred onto paper
to form the printed image. These inks
are formulated to be used in printers
with advanced fusing mechanisms and
print speeds of 25 ppm or greater.
(vi) Inks (news). Inks used primarily
to print newspapers.
(b) Minimum biobased content. The
minimum biobased content for all inks
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) Specialty inks—66 percent.
(2) Inks (sheetfed—color)—67 percent.
(3) Inks (sheetfed—black)—49
percent.
(4) Inks (printer toner—<25 ppm)—34
percent.
(5) Inks (printer toner—≥25 ppm)—20
percent.
(6) Inks (news)—32 percent.
(c) Preference compliance date. No
later than April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased inks. By that date,
Federal agencies that have the
responsibility for drafting or reviewing
specifications for products to be
procured shall ensure that the relevant
specifications require the use of
biobased inks.
emcdonald on DSK29S0YB1PROD with RULES
§ 3201.85 Packing and insulating
materials.
(a) Definition. Pre-formed and molded
materials that are used to hold package
contents in place during shipping or for
insulating and sound proofing
applications.
(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 April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased packing and
insulating materials. By that date,
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Federal agencies that have the
responsibility for drafting or reviewing
specifications for products to be
procured shall ensure that the relevant
specifications require the use of
biobased packing and insulating
materials.
§ 3201.86 Pneumatic equipment
lubricants.
(a) Definition. Lubricants designed
specifically for pneumatic equipment,
including air compressors, vacuum
pumps, in-line lubricators, rock drills,
jackhammers, etc.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 67 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 April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased pneumatic
equipment lubricants. By that date,
Federal agencies that have the
responsibility for drafting or reviewing
specifications for products to be
procured shall ensure that the relevant
specifications require the use of
biobased pneumatic equipment
lubricants.
(d) Determining overlap with an EPAdesignated recovered content product.
Qualifying products within this item
may overlap with the EPA-designated
recovered content product: Vehicular
Products—re-refined lubricating oils.
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
re-refined lubricating oil products and
which product should be afforded the
preference in purchasing.
Note to paragraph (d): Biobased pneumatic
equipment lubricants within this designated
product category can compete with similar
re-refined lubricating oil products with
recycled content. Under the Resource
Conservation and Recovery Act of 1976,
section 6002, the U.S. Environmental
Protection Agency designated re-refined
lubricating oil products containing recovered
materials as products for which Federal
agencies must give preference in their
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20291
purchasing programs. The designation can be
found in the Comprehensive Procurement
Guideline, 40 CFR 247.17.
§ 3201.87
Wood and concrete stains.
(a) Definition. Products that are
designed to be applied as a finish for
concrete and wood surfaces and that
contain dyes or pigments to change the
color without concealing the grain
pattern or surface texture.
(b) Minimum biobased content. The
Federal preferred procurement product
must have a minimum biobased content
of at least 39 percent, which shall be
based on the amount of qualifying
biobased carbon in the product as a
percent of the weight (mass) of the total
organic carbon in the finished product.
(c) Preference compliance date. No
later than April 4, 2013, procuring
agencies, in accordance with this part,
will give a procurement preference for
qualifying biobased wood and concrete
stains. By that date, Federal agencies
that have the responsibility for drafting
or reviewing specifications for products
to be procured shall ensure that the
relevant specifications require the use of
biobased wood and concrete stains.
Dated: March 28, 2012.
Pearlie S. Reed,
Assistant Secretary for Administration, U.S.
Department of Agriculture.
[FR Doc. 2012–8068 Filed 4–3–12; 8:45 am]
BILLING CODE 3410–93–P
DEPARTMENT OF ENERGY
10 CFR Part 430
[Docket Number EERE–2010–BT–TP–0021]
RIN 1904–AC08
Energy Conservation Program: Test
Procedures for Residential Clothes
Washers; Correction
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Final rule; correction.
AGENCY:
The U.S. Department of
Energy (DOE) is correcting a final rule
establishing revised test procedures for
residential clothes washers, published
in the Federal Register on March 7,
2012, and applicable as of April 6, 2012.
DOE erroneously omitted regulatory
language to remove the obsolete
parenthetical note from the water factor
calculation section of the currently
applicable test procedure.
DATES: Effective: April 6, 2012.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Witkowski, U.S. Department
SUMMARY:
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Agencies
[Federal Register Volume 77, Number 65 (Wednesday, April 4, 2012)]
[Rules and Regulations]
[Pages 20281-20291]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8068]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 77, No. 65 / Wednesday, April 4, 2012 / Rules
and Regulations
[[Page 20281]]
DEPARTMENT OF AGRICULTURE
Office of Procurement and Property Management
7 CFR Part 3201
RIN 0599-AA14
Designation of Product Categories for Federal Procurement
AGENCY: Office of Procurement and Property Management, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In compliance with the February 21, 2012 Presidential
Memorandum ``Driving Innovation and Creating Jobs In Rural America
through Biobased and Sustainable Product Procurement,'' the U.S.
Department of Agriculture (USDA) is amending the Guidelines for
Designating Biobased Products for Federal Procurement, to add 13
sections to designate product categories 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 product categories.
DATES: This rule is effective May 4, 2012.
FOR FURTHER INFORMATION CONTACT: Ron Buckhalt, USDA, Office of
Procurement and Property Management, Room 361, Reporters Building, 300
7th St. SW., Washington, DC 20024; email: 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 and
Executive Order 13563: Improving Regulation and Regulatory 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 product categories 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 September
14, 2011, a proposed rule in the Federal Register (FR) for the purpose
of designating a total of 13 product categories for the preferred
procurement of biobased products by Federal agencies (referred to
hereafter in this final rule as the ``preferred procurement program'').
The proposed rule can be found at 76 FR 56884. This rulemaking is
referred to in this preamble as Round 8 (RIN 0599-AA14).
In the proposed rule, USDA proposed designating the following 13
product categories for the preferred procurement program: Air
fresheners and deodorizers; asphalt and tar removers; asphalt
restorers; blast media; candles and wax melts; electronic components
cleaners; floor coverings (non-carpet); foot care products; furniture
cleaners and protectors; inks; packaging and insulating materials;
pneumatic equipment lubricants; and wood and concrete stains.
Today's final rule designates the proposed product categories
within which biobased products will be afforded Federal procurement
preference. USDA has determined that each of the product categories
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 a product category (a generic
grouping of products) for preferred procurement under the BioPreferred
Program, manufacturers of all products under the umbrella of that
product category, 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 product
category and must contain at least the minimum biobased content
established for the designated item. With the designation of these
specific product categories, USDA invites the manufacturers and vendors
of qualifying products to provide information on the product, contacts,
and performance testing for posting 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 product category. Once USDA
designates a product category, procuring agencies are required
generally to purchase biobased products within the designated product
category where the purchase price of the procurement product exceeds
$10,000 or where the quantity of such products or of functionally
equivalent products purchased over the preceding fiscal year equaled
$10,000 or more.
Subcategorization. Within today's final rule, USDA has
subcategorized one of the product categories. That product
[[Page 20282]]
category is inks and the subcategories are: Specialty inks used to add
extra characteristics or features to printed material; inks used for
coated paper, paperboard, plastic, and foil (sheetfed--color and
sheetfed--black); inks used in photocopying and laser machines (printer
toner--<25 pages per minute (ppm) and printer toner-->=25 ppm); and
inks used primarily in newsprint (news).
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
today's final rule, the minimum biobased contents for the ``inks
(printer toner-->=25 ppm)'' and the ``inks (news)'' subcategories of
the inks product category are based on a single tested product within
each subcategory. Based on discussions with industry stakeholders, USDA
believes that the tested products are representative of other products
within the subcategories. Given that 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. USDA will continue
to solicit information on these subcategories and if additional data on
the biobased contents for products within these designated product
subcategories is obtained, USDA will evaluate whether the minimum
biobased content should be revised.
Overlap with EPA's Comprehensive Procurement Guideline program for
recovered content products under the Resource Conservation and Recovery
Act (RCRA) Section 6002. This final rule designates three product
categories for Federal preferred procurement for which there may be
overlap with an EPA-designated recovered content product. The first is
blast media, which may overlap with the EPA-designated recovered
content product ``Miscellaneous products--blasting grit.'' The second
is floor coverings (non-carpet), which may overlap with the EPA-
designated recovered content product ``Floor tiles.'' The third is
pneumatic equipment lubricants, which may overlap with the EPA-
designated recovered content product ``Re-refined lubricating oils.''
EPA provides recovered materials content recommendations for these
recovered content products in 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.
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 (air fresheners
and deodorizers, blast media, floor coverings, and inks (printer
toner--<25 ppm)) are available through the AbilityOne Program. While
there is no specific product within these product categories 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 product categories 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
product categories. USDA requests stakeholder input in gathering
information used in determining the order of product category
designation and in identifying: Manufacturers producing and marketing
products that fall within a product category 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 product categories. 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 product categories for designation
for preferred procurement.
USDA has developed a preliminary list of product categories for
future designation and has posted this preliminary list on the
BioPreferred Web site. While this list presents an initial
prioritization of product categories for designation, USDA cannot
identify with certainty which product categories 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
product categories 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,
product categories with high biobased content and for which sufficient
technical information can be obtained quickly may be added or moved up
on the prioritization list.
III. Summary of Changes
As a result of the public comments received on the proposed rule,
USDA has made 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.
In the final rule, USDA has changed the name of one product
category being designated. That product category was proposed as
``packaging and insulating materials,'' but is being changed in the
final rule to ``packing and insulating materials.'' After the proposed
rule was published, USDA learned of a potential
[[Page 20283]]
issue involving the name and description of the proposed product
category. It was USDA's intent that the product category would include
``pre-formed or molded materials used to hold package contents in place
during shipping'' (76 FR 56894, September 14, 2011). As an example of
the types of products intended to be included in the proposed category,
USDA referred to the foam ``peanuts'' that are used to protect and
prevent the movement of products that are placed in cardboard or other
types of containers for shipment. It was not USDA's intent that the
product category would include the outside container (e.g., the
cardboard box) into which the ``peanuts'' or molded foam packing
materials are placed. USDA has concluded that the term ``packaging'' is
too broad for the purpose of defining the product category and is
likely to be interpreted as including the outside box or container into
which ``packing'' material is placed. For this reason, USDA is
finalizing the product category with the name ``packing and insulating
materials.''
In addition to revising the name of the proposed product category
to ``packing and insulating materials,'' USDA has lowered the minimum
biobased content for this product category to 74 percent. At proposal,
the recommended minimum biobased content was 82 percent and was based
on a product with a tested biobased content of 85 percent. After the
proposed rule was published, the manufacturer of this particular
product re-tested the biobased content of the product as part of the
application process to obtain certification to use the USDA Certified
Biobased Product label. The results of the re-test showed a biobased
content of 77 percent. USDA does not have any additional information to
indicate which of the testing results (85 percent biobased or 77
percent biobased) are more accurate. Because of this uncertainty, and
because the difference between the two values is not large, USDA
decided that it was reasonable to use the lower tested value to
establish the minimum biobased content in the final rule. Therefore,
the minimum biobased content for the ``packing and insulating
materials'' product category in the final rule is 74 percent (the 77
percent tested value minus 3 percentage points to account for
variability in the testing procedure).
USDA has also revised the minimum biobased content for the
``furniture cleaners and protectors'' product category from the
proposed level of 77 percent to 71 percent in the final rule. At the
time the proposed minimum biobased content for this product category
was established, USDA had test data on six products. The biobased
content of these six furniture cleaners and protectors ranged from 9
percent to 100 percent, as follows: 9, 28, 80, 91, 98, and 100 percent.
As explained in the preamble to the proposed rule (76 FR 56897), USDA
decided to set the minimum biobased content for the product category at
77 percent, based on the product with the tested biobased content of 80
percent.
After the proposed rule was published, USDA received biobased
content data on an additional product within this product category. The
biobased content of this product is 74 percent, which is 6 percentage
points lower than the product originally selected as the basis for the
minimum biobased content. With the new data point included, the data
fall into two obvious groups, with a significant gap between them. The
two lowest data points are 9 and 28 percent and the five highest data
points are 74, 80, 91, 98, and 100 percent. USDA believes it is
reasonable to set the minimum biobased content in the final rule based
on the product with the 74 percent biobased content. Therefore, the
minimum biobased content for the ``furniture cleaners and protectors''
product category in the final rule is 71 percent (the 74 percent tested
value minus 3 percentage points to account for variability in the
testing procedure). As is the case for all product categories, USDA
will continue to gather and consider new biobased content testing data.
When found to be necessary, USDA will revise the minimum biobased
content of product categories through established notice and comment
rulemaking procedures.
IV. Discussion of Public Comments
USDA solicited comments on the proposed rule for 60 days ending on
November 14, 2011. USDA received eight comments by that date. Four of
the comments were from individual citizens, two were from trade groups,
one was from a biobased product manufacturer, and one was from a
Federal agency commenter. The comments are presented below, along with
USDA's response, and are grouped by the product categories to which
they apply.
Blast Media
Comment: One trade group commenter recommended that USDA reconsider
designating the blast media product category for Federal procurement.
The commenter stated that they do not believe that biobased abrasives
are always the best choice when selecting an environmentally friendly
abrasive because of performance limitations that can cause decreased
coating life expectancies. The commenter explained that the selection
of an abrasive for a particular project is based on a life cycle
assessment that includes an examination of the economic and
environmental health and safety impacts. The commenter presented
information on the properties of an abrasive that must be considered,
including the shape, hardness, durability, density, and size of the
abrasive. The commenter also presented information on the relationship
between these properties of the abrasive and the surface profile that
is created on the substrate when a variety of abrasive materials are
used. The commenter stated that The Society for Protective Coatings
recommends biobased abrasives for removing single layers of paint, fine
scale and other surface contaminants when there is no technical need to
alter the metal substrate. The commenter further stated that when it is
necessary to meet a surface preparation standard to remove multiple
layers of paint and produce an acceptable surface profile for optimal
coating adhesion, harder abrasives need to be specified. According to
the commenter, biobased abrasives are environmentally friendly, but are
well below the minimum hardness value needed to achieve an acceptable
surface profile for protecting industrial structures and typically are
not reusable. The commenter concluded by saying that using biobased
abrasives in lieu of standard abrasives will result in coating system
failure or, at best, will significantly reduce the overall life
expectancy and sustainability of the coating due to poor surface
profile and coating adhesion.
Response: USDA agrees with the commenter's general position that
traditional abrasives are needed in many applications. The commenter
mentions industrial structures and the U.S. Navy fleet as examples of
applications where, according to the commenter, biobased blast media
will not meet surface coating specifications and performance
requirements. USDA recognizes that blast media is a product category
with wide-ranging performance demands, depending on the type and end
use of the substrate to which the blast media is being applied. USDA
points out that the intent of designating biobased blast media for
Federal procurement preference is not to eliminate the use of
traditional blast media in cases such as those mentioned by the
commenter. The intent of the designation is, rather, to require that
Federal agencies give
[[Page 20284]]
preference to biobased blast media in those cases where such blast
media meet the agency's performance requirements as well as
availability and cost considerations. USDA recognizes that performance
is the key factor in making purchasing decisions among the various
types of products within most product categories. However, USDA
believes that many situations exist where blast media are used to clean
or prepare substrates that are less durable than structural steel. In
many of these applications, biobased blast media may perform better
than the more abrasive metallic types of media described by the
commenter. Thus, USDA believes that the designation of biobased blast
media is consistent with the goals and objectives of the BioPreferred
program and has finalized the designation in today's rulemaking.
Floor Coverings (Non-Carpet)
Comment: One biobased product manufacturer requested that their
product be added as a subcategory under the floor coverings product
category. The commenter explained that their product is manufactured
using an innovative thermal technology that results in wood that has
many advantages over traditional chemically treated wood. The commenter
stated that their product can be used in any flooring application and
is non-toxic, dimensionally stable, and has a 30-year warranty against
rot. The commenter also stated that their product is environmentally
preferable to most other wood products because it is manufactured
without the use of toxic chemicals and is a 100 percent biobased
product.
Response: USDA agrees with the commenter that their product has
many beneficial attributes. USDA also believes that, in some cases,
this manufacturer's product may be a very desirable option for use as a
floor covering. However, USDA does not believe that the creation of a
separate subcategory under the floor covering (non-carpet) product
category is justified.
As explained in the preamble to the proposed rule, USDA intends to
establish subcategories based on the existence of ``groups'' of
products with different performance requirements or different
functional uses. In the case of floor coverings, USDA did not identify
specific performance requirements that the commenter's product could
meet that could not be met by one or more of the other available
biobased products.
Another consideration for establishing subcategories is the
presence of a product or group of products with some unique desirable
characteristics not found in the other products and whose biobased
content differs considerably from other products in the category. The
91 percent minimum biobased content that has been established for the
product category is sufficiently high that USDA does not believe it is
reasonable to create a subcategory based on biobased content
differences. The 91 percent minimum biobased content ensures that
products that qualify for the procurement preference are truly
legitimate biobased products with only minimal non-biobased
ingredients.
In summary, USDA believes that the floor covering (non-carpet)
product category is defined such that Federal agencies may select from
several different biobased alternative products. The decision on which
biobased products to purchase will be based on a range of factors
including durability, appearance, required maintenance, and cost. While
the commenter's product may be a very competitive product within the
floor covering category, USDA does not believe that creating a separate
subcategory for it is justified.
Inks
Comment: Four commenters stated that they supported USDA efforts to
encourage the use of biobased printing inks and toners. The commenters
stated that the use of such products will increase the demand for
agricultural products grown domestically, decrease our dependence on
foreign oil, positively affect the U.S. economy, and protect our
environment for future generations of Americans.
Response: USDA agrees with the commenters and thanks them for their
support of the BioPreferred program.
Comment: One commenter representing a coalition of trade groups
stated that USDA needs to withdraw the proposed designation of the inks
product category and conduct a more detailed and thorough review to
insure that the correct biobased contents for inks are recommended, as
several critical elements in the review are deficient. The commenter
stated that USDA has not completed a thorough investigation into
existing Federal requirements and industry standards for biobased
printing inks. In addition, the commenter stated that USDA has set
limits without a complete understanding of the technical issues
associated with biobased content in different types of printing inks.
The commenter stated that another concern not adequately addressed is
the financial and performance implications of requiring the use of inks
with high biobased content. The commenter recommends that USDA become
familiar with the existing regulation that sets minimum standards for
biobased materials in printing inks used in government agencies. The
commenter stated that this regulation, the Vegetable Ink Printing Act
of 1994, requires that Federal agencies use lithographic inks with a
specified vegetable oil content.
The commenter also stated that USDA should look to existing
industry standards for inks with biobased material content. The
commenter noted that one such program is SoySeal, developed by the
American Soybean Association (ASA), which has set minimum soy oil
contents for a variety of different classes of inks. The commenter
stated that ASA set these standards based on their research on
incorporating soy oil into various types of printing inks, their unique
properties, and testing of the formulations. The percentages are
expressed as the percentage of soy oil out of the total formula weight
of the inks.
The commenter supports the total formula weight approach taken by
the SoySeal program and recommends that USDA also adopt this approach.
The commenter stated that the approach taken by SoySeal to define soy
content limits by weight percent is readily understood in the industry
and should be adopted by USDA. The commenter stated that this method
allows for straightforward determination of soy or biobased content,
based on ink formulation knowledge, instead of requiring expensive
testing using the ASTM D6866 standard. The commenter stated that the
ASTM test method can only be conducted by one lab and costs $600 per
sample. The commenter stated that USDA did not specify in its proposal
how the sampling for the test is to be conducted. According to the
commenter, it is not clear if a representative formulation can be
tested or if each color of each ink is to be tested and, since there
are literally thousands of possible ink formulations, testing each and
every ink is economically infeasible. The commenter stated that using a
total ink formulation approach certified by the ink manufacturer
provides a much more economical approach. Also, according to the
commenter, it is unclear how the biobased content guidelines set by
USDA compare to those set by the SoySeal program because the two
systems (percent weight versus percent of carbonaceous material that is
biobased) are not easily comparable. The commenter asked, for example,
if a black news ink contains 40 percent biobased material by weight,
would it meet USDA's recommendations if tested by the ASTM standard?
The commenter
[[Page 20285]]
stated that, ideally, USDA's biobased content recommendations should
mirror those recommended by the SoySeal program, as inks with these soy
oil contents have been tested and proven to be effective.
The commenter explained that while the proposed offset ink limits
may be achievable for four color process inks (i.e., cyan, yellow,
magenta, and black), the limits will certainly have a negative impact
on various blending systems used. According to the commenter, many
printing inks are specially blended to make unique colors, often
referred to as ``spot colors'' or by the trade name ``Pantone Matching
System,'' which are required to match exact colors. The commenter
stated that the limits set have the potential to impact these inks, as
well as Ultraviolet, Electron Beam, and many metallic and florescent
inks that have unique properties that may require higher non-biobased
content.
The commenter also stated that the category of specialty inks used
in the study is far too vaguely defined and the examples given are too
diverse to be listed together. In addition, according to the commenter,
the imposition of a level of 66 percent biobased material is extremely
demanding for some of these applications. For example, a typical
scratch and sniff ink might contain 20 percent of encapsulated
fragrance, none of which is biobased. This only leaves room for 14
percent of other non-biobased materials such as pigment, binders and
additives. The commenter stated that these materials, many of which are
carbonaceous, cannot be substituted for biobased materials and their
presence in these inks will make it nearly impossible to meet the 66
percent biobased content proposed in this program.
The commenter stated that, for toner ink systems, biobased toners
are not commonly available in the U.S. market. Currently, biobased
xerographic inks make up less than 1 percent of the U.S. market, and
are not available for xerographic colored inks.
The commenter also stated that, in terms of cost and performance,
it must be recognized that there are significant issues associated with
high levels of biobased materials in printing inks. According to the
commenter, these types of ink are almost always significantly more
expensive than their non-biobased alternatives and, even with the
current high costs of petroleum-based oils, soy oil still commands
close to a 50 percent premium. In addition, the commenter stated that
it is common knowledge within the graphic arts community that biobased
often results inferior technical performance [color reproduction] and
reduced press speeds to allow for longer drying times. The commenter
explained that solvent based inks cannot be easily replaced with bio-
derived oils because the oils do not volatilize quickly enough.
The commenter stated that there is no indication that an assessment
of the cost difference between conventional and biobased inks was
completed and that, in order to create biobased purchasing preferences,
USDA needs to quantify the environmental benefit of using a biobased
ink and assure that it is cost effective.
The commenter stated that many of the underlying assumptions used
by USDA to determine the specific limits and ink types in the proposal
are not transparent or justified. The commenter asked, as an example,
of the 148 biobased inks identified by USDA, how was a sample size of
19 selected to be tested for biobased content by the ASTM standard?
Also, of the biobased inks identified, how was a sample size of 3 to be
analyzed by BEES determined? The commenter stated that, given the large
number of inks that are on the market, it is not clear how USDA
concluded that its work was representative or statistically
significant. The commenter stated that they do not believe that these
sample sizes are large enough to show significant findings. The
commenter also stated that it is unclear if the sampling was random, as
should be the case, or if the inks tested were considered to be state-
of-the-art biobased inks. According to the commenter, one of the
difficulties in interpreting the results of the study was that the
units used to complete the BEES assessment were unclear, as the sample
size was identified as 300 square inches, but not if those 300 square
inches were actual ink, or if it was 300 square inches of printed
material.
Another concern expressed by the commenter is the use of the
Building for Environmental and Economic Sustainability (BEES) model for
testing the environmental impact of printing ink. The commenter stated
that USDA does not indicate how a software program designed to assess
the impact of building materials is applicable to an industrial/
consumer commodity such as ink. The commenter also stated that the
study doesn't indicate that a comparison of the BEES impact of
conventional and biobased inks was conducted and that while it is
assumed that a material with more biobased content would be better,
this needs to actually be confirmed.
The commenter provided a summary of recommendations on the proposed
biobased designations for inks, as follows:
1. Refine the categories to better cover the various types of
printing inks used from a broad perspective such as process and spot or
inks as well as specific applications such as heatset web offset
lithographic, gravure (water & solvent), and flexographic (water &
solvent). Energy curable (ultraviolet and electron beam), water-based
and inkjet inks should have their own, separate categories.
2. Refine the specialty ink category. The current Specialty ink
category is much too broad to be able to assign a biobased content
across the board. While some specialty inks could be formulated to
contain the 66 percent, many others cannot.
3. Utilize the SoySeal limits as the basis for the biobased content
guidelines.
4. Revise the standards to indicate the total portion of the ink
that is biobased, rather than the total carbonaceous portion of the ink
that is biobased. This will allow for more cost effective determination
of biobased content based on ink formulation information, and is
already the accepted standard for comparing biobased content in
printing inks.
5. Allow for the ink manufacturer to certify the biobased content
based on formulation and not testing using the ASTM D6866 test.
6. Biobased inks, as proposed, should be evaluated to determine if
they can meet basic performance standards and be required to meet the
same performance standards as conventional inks. Manufacturers should
not be given the opportunity to gain a market advantage based on
production of inks with high biobased content but a poor image quality.
7. Conduct a true economic impact analysis comparing the costs of
the proposed biobased materials as compared to conventional materials.
8. To better understand the life-cycle cost section, identify the
``usage unit'' for which price is specified.
9. To better understand the BEES results, a functional unit of 300
square inches was identified. Please clarify if this is 300 square
inches of ink, or 300 square inches of printed material.
Response: USDA appreciates the interest and concerns expressed by
the commenter in the inks product category. Unfortunately, many of the
comments and recommendations made by the commenter would require USDA
to conduct studies and analyses that are beyond the scope of the
BioPreferred program's mandate to designate product categories for
federal procurement
[[Page 20286]]
preference. Under section 9002, USDA is directed to request from
biobased product manufacturers the technical information that is used
in the designation process, but is not given the authority to require
that such information be supplied. Thus, USDA must rely on the
voluntary submittal of technical information from product
manufacturers. During the development of the proposed rule, USDA
requested information from many soy ink manufacturers but received
information from only a few. USDA developed the proposed rule based on
the information available from those biobased ink manufacturers who
chose to voluntarily supply it. Generally, the procedures employed, and
the types and level of detail of the analyses performed, for the inks
product category were the same as for the more than 60 product
categories designated to date. USDA will, however, welcome the
opportunity to meet with this commenter and any other representatives
of the inks product category to discuss ways in which today's final
rule can be improved.
With regard to the commenter's points dealing with the Vegetable
Ink Printing Act, USDA recognizes that many federal agencies' printing
operations are covered by this Act. USDA points out that the
designation of biobased products under section 9002 is not meant to
replace or revise the requirements of the Vegetable Ink Printing Act.
Instead, the designation under section 9002 is meant to extend the use
of biobased printing inks to those printing operations that are not
subject to the Vegetable Ink Printing Act. Under today's final rule,
such printing operations must be performed using complying biobased
inks to the extent that biobased inks meeting the performance and cost
criteria are available.
The commenter also presented numerous points regarding the
methodology used to determine biobased content and the levels set as
the minimum biobased contents in the proposed rule. USDA acknowledges
that the biobased content determined by ASTM D6866 does not directly
compare to soy content determinations using the SoySeal procedure.
However, the use of ASTM D6866 to determine biobased content has been
consistently required for all designated product categories and USDA
believes it is appropriate for the inks product category as well. As
pointed out by the commenter, inks are typically formulated from
solvents, pigments, binders, and other additives. USDA believes that
using ASTM D6866 to determine the biobased content of inks will
encourage the development of biobased versions of each type of
ingredient in the ink. As for the number of inks tested for biobased
content and the resulting proposed minimum biobased contents, USDA
relied on its standard methodology of requesting that manufacturers
submit samples for testing and then evaluating the results of the
testing to determine the proposed minimum biobased content (see
``Minimum Biobased Contents'' discussion in the proposal preamble at 76
FR 56885). Additional information regarding the biobased content
testing can also be found in the preamble to proposed rule at 76 FR
56896. USDA also notes that the BioPreferred program Guidelines (7 CFR
3201.7) allows that ``products that are essentially the same
formulation'' need not be tested individually.
The commenter offered recommendations as to how USDA should
redefine the inks subcategories in the final rule. USDA developed the
proposed inks subcategories based on discussions with, and information
provided by, ink manufacturers. There are, no doubt, many approaches
that could be taken in subcategorizing the inks product category. USDA
believes that the proposed subcategories will be sufficient for the
initial efforts to designate the inks product category. USDA notes that
the final rule does not take effect for one year after the publication
date and, as mentioned above, welcomes the opportunity to meet with the
commenter and others to discuss revising, refining, or expanding the
subcategories at the earliest opportunity. Once a consensus has been
reached between USDA and participating industry representatives, USDA
will develop a rulemaking package to propose changes to the
subcategories, if needed.
The commenter also questioned the performance and cost of available
biobased inks. USDA recognizes that performance and cost are key
factors in selecting the types of inks used in printing/copying
operations. As discussed in several other responses in this preamble,
federal agencies are required to consider designated biobased products
but are not required to purchase and use them if the available products
are not capable of meeting reasonable performance expectations or are
not priced competitively with non-biobased products. Section 9002 is
very specific regarding these exceptions. However, USDA encourages
federal agencies to explore available biobased products and communicate
with biobased product manufacturers regarding performance and cost
issues. Reputable biobased product manufacturers should be willing to
work with federal agencies to resolve issues and they should also
recognize that, even with the federal procurement preference, they will
not be successful if their products do not perform up to expectations.
In response to the commenter's question about the BEES functional unit,
the 300 square inches used for the BEES analyses is 300 square inches
of ink.
In summary, USDA acknowledges that, because of time and budget
considerations, today's designation of inks is not based on exhaustive
studies and analyses. USDA also recognizes that some elements of the
designation rule are subject to change as federal agencies and biobased
ink manufacturers gain a better understanding of what is needed to
substitute biobased inks for traditional inks. USDA invites the
commenter and any other representatives of the ink manufacturing
industry to submit information and to meet to discuss in detail future
revisions that may be needed to the designation rule.
Packaging and Insulating Materials
Comment: One Federal agency commenter expressed concern regarding
the proposed product category ``Packaging and Insulating Materials''
and its potential impact on the agency's hazardous waste contracting
and disposal efforts. Specifically, the commenter requested
clarification on whether the biobased content requirements in proposed
section 3201.85, Packaging and Insulating Materials, would apply to
DOT/UN combination shipping packages for Hazardous Material/Hazardous
Waste shipments or whether DOT/UN combination shipping packages might
be excluded. The commenter further stated that if the proposed biobased
requirements were determined to apply to such shipping packages, they
would need to know how the implementation would affect such shipping.
Response: As discussed in section III of this preamble, USDA has
changed the name of this product category in the final rule to
``packing and insulating materials.'' However, USDA believes that the
name change has no bearing on the public comment or on the USDA
response to it. The final rule does not provide a specific exemption
from the requirements of section 3201.85 based on the types of material
being shipped. As proposed, biobased packaging (packing) products
receive the procurement preference regardless of the contents to be
placed in the shipping packages. USDA considered the possibility of
providing a specific
[[Page 20287]]
exemption for hazardous material/hazardous waste shipping activities,
but did not provide such an exemption in the final rule. USDA decided
that such an exemption was not necessary considering the language in
the BioPreferred Program Guidelines. As stated in section 3201.3(c) of
the Guidelines: ``Procuring agencies may decide not to procure such
products if they are not reasonably priced or readily available or do
not meet specified or reasonable performance standards.'' With regard
to the commenter's concerns related to the shipping of hazardous
material/hazardous waste, the DOT requirements for the packaging of
such materials are spelled out in 49 CFR part 178. The burden to
perform testing to demonstrate that their products are capable of
meeting the requirements of part 178 fall on those biobased packaging
material manufacturers who wish to sell their products to the Federal
government. Only if such a demonstration of acceptable performance can
be made are Federal agencies obligated to give a procurement preference
to those products and, even then, only if they are available at
reasonable costs. USDA believes that with these provisions already in
the BioPreferred Program Guidelines, the specific exemption requested
by the commenter is unnecessary. If acceptable biobased packing
materials are available, they should be given preference. However, if
the biobased alternatives are not acceptable (in terms of performance,
availability, and cost), the agency may continue to use the packing
materials currently in use. Thus, USDA is finalizing the designation of
``packing and insulating materials'' without any specific exemptions.
V. Regulatory Information
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
Executive Order 12866, as supplemented by Executive Order 13563,
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 in the preamble to the proposed
rulemaking, USDA made extensive efforts to obtain information on the
Federal agencies' usage within the 13 designated product categories,
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 biobased products within
designated product categories 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 product
categories 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 13 product categories 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 product categories.
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
product categories 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
[[Page 20288]]
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 product categories 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 product categories designated
by this rulemaking, the number is expected to be small. Because
biobased products represent a small emerging market, only a small
percentage of all manufacturers, large or small, are expected to
develop and market biobased products. Thus, the number of small
businesses manufacturing biobased products affected by this rulemaking
is not expected to be substantial.
The preferred procurement program may decrease opportunities for
businesses that manufacture or sell non-biobased products or provide
components for the manufacturing of such products. Most manufacturers
of non-biobased products within the product categories being designated
for preferred procurement in this rule are expected to be included
under the following NAICS codes: 321918 (other millwork, including
flooring), 324191 (petroleum lubricating oil and grease manufacturing),
325411 (medicinal and botanical manufacturing), 325510 (paint and
coating manufacturing), 325612 (polish and other sanitation goods
manufacturing), 325620 (toilet preparation manufacturing), 325910
(printing ink manufacturing), 325998 (other miscellaneous chemical
products and preparation manufacturing), 326150 (urethane and other
foam product manufacturing), and 313113 (thread 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 6,963 companies within these 10 NAICS categories and that
these companies own a total of about 8,139 establishments. Thus, the
average number of establishments per company is about 1.2. The Census
data also reported that of the 8,139 individual establishments, about
8,096 (99.5 percent) have fewer than 500 employees. USDA also found
that the overall average number of employees per company among these
industries is about 42, with none of the segments reporting an average
of more than 100 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 product categories
being designated, but believes that the impact will not be significant.
Most of the product categories 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 product categories 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 products when biobased products 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 Federal
Government and Indian tribes, or * * * the distribution of power and
[[Page 20289]]
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.
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 3201
Biobased products, Procurement.
For the reasons stated in the preamble, the Department of
Agriculture is amending 7 CFR chapter XXXII as follows:
CHAPTER XXXII--OFFICE OF PROCUREMENT AND PROPERTY MANAGEMENT,
DEPARTMENT OF AGRICULTURE
PART 3201--GUIDELINES FOR DESIGNATING BIOBASED PRODUCTS FOR FEDERAL
PROCUREMENT
0
1. The authority citation for part 3201 continues to read as follows:
Authority: 7 U.S.C. 8102.
0
2. Add Sec. Sec. 3201.75 through 3201.87 to subpart B to read as
follows:
Sec.
3201.75 Air fresheners and deodorizers.
3201.76 Asphalt and tar removers.
3201.77 Asphalt restorers.
3201.78 Blast media.
3201.79 Candles and wax melts.
3201.80 Electronic components cleaners.
3201.81 Floor coverings (non-carpet).
3201.82 Foot care products.
3201.83 Furniture cleaners and protectors.
3201.84 Inks.
3201.85 Packing and insulating materials.
3201.86 Pneumatic equipment lubricants.
3201.87 Wood and concrete stains.
Sec. 3201.75 Air fresheners and deodorizers.
(a) Definition. Products used to alleviate the experience of
unpleasant odors by chemical neutralization, absorption,
anesthetization, or masking.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 97 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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased air fresheners and
deodorizers. By that date, Federal agencies that have the
responsibility for drafting or reviewing specifications for products to
be procured shall ensure that the relevant specifications require the
use of biobased air fresheners and deodorizers.
Sec. 3201.76 Asphalt and tar removers.
(a) Definition. Cleaning agents designed to remove asphalt or tar
from equipment, roads, or other surfaces.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 80 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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased asphalt and tar
removers. By that date, Federal agencies that have the responsibility
for drafting or reviewing specifications for products to be procured
shall ensure that the relevant specifications require the use of
biobased asphalt and tar removers.
Sec. 3201.77 Asphalt restorers.
(a) Definition. Products designed to seal, protect, or restore
poured asphalt and concrete surfaces.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 68 percent,
which shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased asphalt restorers. By
that date, Federal agencies that have the responsibility for drafting
or reviewing specifications for products to be procured shall ensure
that the relevant specifications require the use of biobased asphalt
restorers.
Sec. 3201.78 Blast media.
(a) Definition. Abrasive particles sprayed forcefully to clean,
remove contaminants, or condition surfaces, often preceding coating.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 94 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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased blast media. By that
date, Federal agencies that have the responsibility for drafting or
reviewing specifications for products to be procured shall ensure that
the relevant specifications require the use of biobased blast media.
(d) Determining overlap with an EPA-designated recovered content
product. Qualifying products within this item may overlap with the EPA-
designated recovered content product: Miscellaneous products--blasting
grit. 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 blasting grit products
and which product should be afforded the preference in purchasing.
Note to paragraph (d): Biobased blast media within this
designated product
[[Page 20290]]
category can compete with similar blasting grit products with
recycled content. Under the Resource Conservation and Recovery Act
of 1976, section 6002, the U.S. Environmental Protection Agency
designated blasting grit products containing recovered materials as
products for which Federal agencies must give preference in their
purchasing programs. The designation can be found in the
Comprehensive Procurement Guideline, 40 CFR 247.17.
Sec. 3201.79 Candles and wax melts.
(a) Definition. Products composed of a solid mass and either an
embedded wick that is burned to provide light or aroma, or that are
wickless and melt when heated to produce an aroma.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 88 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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased candles and wax melts.
By that date, Federal agencies that have the responsibility for
drafting or reviewing specifications for products to be procured shall
ensure that the relevant specifications require the use of biobased
candles and wax melts.
Sec. 3201.80 Electronic components cleaners.
(a) Definition. Products that are designed to wash or remove dirt
or extraneous matter from electronic parts, devices, circuits, or
systems.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 91 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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased electronic components
cleaners. By that date, Federal agencies that have the responsibility
for drafting or reviewing specifications for products to be procured
shall ensure that the relevant specifications require the use of
biobased electronic components cleaners.
Sec. 3201.81 Floor coverings (non-carpet).
(a) Definition. Products, other than carpet products, that are
designed for use as the top layer on a floor. Examples are bamboo,
hardwood, and cork tiles.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 91 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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased floor coverings (non-
carpet). By that date, Federal agencies that have the responsibility
for drafting or reviewing specifications for products to be procured
shall ensure that the relevant specifications require the use of
biobased floor coverings (non-carpet).
(d) Determining overlap with an EPA-designated recovered content
product. Qualifying products within this item may overlap with the EPA-
designated recovered content product: Construction Products--floor
tiles. 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 floor tile products and
which product should be afforded the preference in purchasing.
Note to paragraph (d): Biobased floor coverings within this
designated product category can compete with similar floor tile
products with recycled content. Under the Resource Conservation and
Recovery Act of 1976, section 6002, the U.S. Environmental
Protection Agency designated floor tile products containing
recovered materials as products for which Federal agencies must give
preference in their purchasing programs. The designation can be
found in the Comprehensive Procurement Guideline, 40 CFR 247.17.
Sec. 3201.82 Foot care products.
(a) Definition. Products formulated to be used in the soothing or
cleaning of feet.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 83 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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased foot care products. By
that date, Federal agencies that have the responsibility for drafting
or reviewing specifications for products to be procured shall ensure
that the relevant specifications require the use of biobased foot care
products.
Sec. 3201.83 Furniture cleaners and protectors.
(a) Definition. Products designed to clean and provide protection
to the surfaces of household furniture other than the upholstery.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 71 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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased furniture cleaners and
protectors. By that date, Federal agencies that have the responsibility
for drafting or reviewing specifications for products to be procured
shall ensure that the relevant specifications require the use of
biobased furniture cleaners and protectors.
Sec. 3201.84 Inks.
(a) Definitions. (1) Inks are liquid or powdered materials that are
available in several colors and that are used to create the visual
image on a substrate when writing, printing, and copying.
(2) Inks for which Federal preferred procurement applies are:
(i) Specialty inks. Inks used by printers to add extra
characteristics to their prints for special effects or functions.
Specialty inks include, but are not limited to: CD printing, erasable,
FDA compliant, invisible, magnetic, scratch and sniff, thermochromic,
and tree marking inks.
(ii) Inks (sheetfed--color). Pigmented inks (other than black inks)
used on coated and uncoated paper, paperboard, some plastic, and foil
to print in color on annual reports, brochures, labels, and similar
materials.
(iii) Inks (sheetfed--black). Black inks used on coated and
uncoated paper, paperboard, some plastic, and foil to print in black on
annual reports, brochures, labels, and similar materials.
(iv) Inks (printer toner--<25 pages per minute (ppm)). Inks that
are a powdered
[[Page 20291]]
chemical, used in photocopying machines and laser printers, which is
transferred onto paper to form the printed image. These inks are
formulated to be used in printers with standard fusing mechanisms and
print speeds of less than 25 ppm.
(v) Inks (printer toner--=25 ppm). Inks that are a
powdered chemical, used in photocopying machines and laser printers,
which is transferred onto paper to form the printed image. These inks
are formulated to be used in printers with advanced fusing mechanisms
and print speeds of 25 ppm or greater.
(vi) Inks (news). Inks used primarily to print newspapers.
(b) Minimum biobased content. The minimum biobased content for all
inks 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) Specialty inks--66 percent.
(2) Inks (sheetfed--color)--67 percent.
(3) Inks (sheetfed--black)--49 percent.
(4) Inks (printer toner--<25 ppm)--34 percent.
(5) Inks (printer toner--=25 ppm)--20 percent.
(6) Inks (news)--32 percent.
(c) Preference compliance date. No later than April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased inks. By that date,
Federal agencies that have the responsibility for drafting or reviewing
specifications for products to be procured shall ensure that the
relevant specifications require the use of biobased inks.
Sec. 3201.85 Packing and insulating materials.
(a) Definition. Pre-formed and molded materials that are used to
hold package contents in place during shipping or for insulating and
sound proofing applications.
(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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased packing and insulating
materials. By that date, Federal agencies that have the responsibility
for drafting or reviewing specifications for products to be procured
shall ensure that the relevant specifications require the use of
biobased packing and insulating materials.
Sec. 3201.86 Pneumatic equipment lubricants.
(a) Definition. Lubricants designed specifically for pneumatic
equipment, including air compressors, vacuum pumps, in-line
lubricators, rock drills, jackhammers, etc.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 67 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 April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased pneumatic equipment
lubricants. By that date, Federal agencies that have the responsibility
for drafting or reviewing specifications for products to be procured
shall ensure that the relevant specifications require the use of
biobased pneumatic equipment lubricants.
(d) Determining overlap with an EPA-designated recovered content
product. Qualifying products within this item may overlap with the EPA-
designated recovered content product: Vehicular Products--re-refined
lubricating oils. 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 re-refined lubricating
oil products and which product should be afforded the preference in
purchasing.
Note to paragraph (d): Biobased pneumatic equipment lubricants
within this designated product category can compete with similar re-
refined lubricating oil products with recycled content. Under the
Resource Conservation and Recovery Act of 1976, section 6002, the
U.S. Environmental Protection Agency designated re-refined
lubricating oil products containing recovered materials as products
for which Federal agencies must give preference in their purchasing
programs. The designation can be found in the Comprehensive
Procurement Guideline, 40 CFR 247.17.
Sec. 3201.87 Wood and concrete stains.
(a) Definition. Products that are designed to be applied as a
finish for concrete and wood surfaces and that contain dyes or pigments
to change the color without concealing the grain pattern or surface
texture.
(b) Minimum biobased content. The Federal preferred procurement
product must have a minimum biobased content of at least 39 percent,
which shall be based on the amount of qualifying biobased carbon in the
product as a percent of the weight (mass) of the total organic carbon
in the finished product.
(c) Preference compliance date. No later than April 4, 2013,
procuring agencies, in accordance with this part, will give a
procurement preference for qualifying biobased wood and concrete
stains. By that date, Federal agencies that have the responsibility for
drafting or reviewing specifications for products to be procured shall
ensure that the relevant specifications require the use of biobased
wood and concrete stains.
Dated: March 28, 2012.
Pearlie S. Reed,
Assistant Secretary for Administration, U.S. Department of Agriculture.
[FR Doc. 2012-8068 Filed 4-3-12; 8:45 am]
BILLING CODE 3410-93-P