The Federal Biobased Products Preferred Procurement Program: Standards and Status Presented To Federal Environmental Symposium Bethesda, Maryland May 4, 2006

Presented By Dr. Marvin Duncan Senior Agricultural Economist Office Of Energy Policy And New Uses U.S. Department of Agriculture

The FB4P Program A preferred procurement program A preferred procurement program Provided for in the 2002 Farm Bill Provided for in the 2002 Farm Bill Federal agencies must buy ‘qualifying’ biobased products designated by regulation Federal agencies must buy ‘qualifying’ biobased products designated by regulation Agencies have three outs: Agencies have three outs: Excessive cost Excessive cost Availability Availability Product performance Product performance Recycled trumps biobased when there is overlap Recycled trumps biobased when there is overlap

Designating Items For Preferred Procurement Items are generic groupings of products Items are generic groupings of products Items are designated by rule making with proposed rule, public comment period, and final rule Items are designated by rule making with proposed rule, public comment period, and final rule At that time all ‘qualifying’ products within a designated item are eligible for preferred procurement by Federal agencies At that time all ‘qualifying’ products within a designated item are eligible for preferred procurement by Federal agencies Federal agencies have up to one year to implement procurement preference Federal agencies have up to one year to implement procurement preference

What Is ‘Qualifying’ Biobased Product? It is consistent with definition in statute It is consistent with definition in statute Biobased content is known Biobased content is known Environmental and health effects of product are available Environmental and health effects of product are available Product performance, as tested against industry recognized standards, is known Product performance, as tested against industry recognized standards, is known

Progress In Implementing Program Final Guidelines Rule published in 2005 Final Guidelines Rule published in 2005 First Final Designation Rule published in March, 2006 First Final Designation Rule published in March, 2006 First six items designated for preferred procurement First six items designated for preferred procurement Two Proposed Rules (ten items each) To Designate in clearance within USDA Two Proposed Rules (ten items each) To Designate in clearance within USDA Data collection and analysis underway on next three Proposed Rules (ten items each) Data collection and analysis underway on next three Proposed Rules (ten items each) Many difficult issues to resolve since program affects all Federal agencies Many difficult issues to resolve since program affects all Federal agencies

Voluntary Labeling Program Manufacturers can qualify for use of “U.S.D.A. Certified Biobased Product” Label And Logo Manufacturers can qualify for use of “U.S.D.A. Certified Biobased Product” Label And Logo Proposed Rule To Establish Program in clearance within USDA Proposed Rule To Establish Program in clearance within USDA Program is expected to raise market visibility of qualifying biobased products Program is expected to raise market visibility of qualifying biobased products

Model Procurement Program Working with FAR Council to reflect requirements of FB4P in procurement regulations Working with FAR Council to reflect requirements of FB4P in procurement regulations Develop on-line training and education programs for USDA agencies. Develop on-line training and education programs for USDA agencies. Adapt same programs for all Federal agencies, in conjunction with OMB’s Office of Federal Procurement Policy Adapt same programs for all Federal agencies, in conjunction with OMB’s Office of Federal Procurement Policy Training and outreach to Federal agencies Training and outreach to Federal agencies Carried out by USDA Departmental Administration Carried out by USDA Departmental Administration

Conclusion FB4P will encourage new products and markets FB4P will encourage new products and markets Use of biobased products will enhance environmental sustainability Use of biobased products will enhance environmental sustainability Use of biobased products will reduce demand for imported oil and gas Use of biobased products will reduce demand for imported oil and gas Rural America will benefit with new investment, jobs, and stronger demand for farm products Rural America will benefit with new investment, jobs, and stronger demand for farm products