Overview and Updates on the BioPreferred Program Jeff Goodman Chief, Environmental Management Division / USDA Steve Devlin Industrial Specialist / Iowa State University 2009 GSA International Products and Services Expo

Overview of BioPreferred Program USDA’s Role Program Updates −Designated Items −Labeling Program BioPreferred Tools Implementation Future Events Discussion Topics 1

What is BioPreferred? USDA brand name for Biobased Markets Program established in Farm Bill Identifies and seeks to establish new markets for biobased products Two major program elements –Federal procurement preference program requires Federal agencies and contractors to purchase qualifying products –Voluntary labeling program will allow product vendors to use a USDA logo to identify qualifying products 2

What is a Biobased Product? Biobased products are those the Secretary of Agriculture determines to be composed in whole or large part of renewable agricultural or forestry materials. Biobased products can include plant, animal, and marine materials. 3

Why Promote Biobased Products? Climate Change Impact Reduction—Qualifying biobased products reduce the introduction of new fossil carbon into the atmosphere. Energy/Environmental Security—Biobased products replace petroleum products helping to increase U.S. energy and environmental security and independence. Many biobased products are sustainable, renewable and compostable. Economic Development—Biobased products create jobs by increasing demand for agricultural and forestry materials and by increasing new product development, manufacturing and ultimately sales. 4

Farm Security and Rural Investment Act of 2002 (2002 Farm Bill) Food, Conservation and Energy Act of 2008 (2008 Farm Bill) Energy Policy Act of Sections 205 and 943 Executive Order January 24, 2007 FAR Updated - November 7, 2008 Program Authorities 5

Updates definition of biobased product Permits designation of intermediate ingredients and feedstocks (IIF) Permits labeling of IIF and complex products Directs USDA to establish national registry of testing centers Specifies detailed reporting requirements Requires management plan 2008 Farm Bill 6

BioPreferred's High Profile Significant discussion topic during Secretary Vilsack's Senate confirmation hearing USDA letter to all Cabinet Heads Senator Harkin plans to call each Cabinet level department to testify to the Senate Agriculture Committee on its implementation progress 7

Federal Procurement Preference One year following designation of biobased items in the Federal Register, Federal departments and agencies must give a procurement preference to designated items composed of biobased products unless those items Are not reasonably available Do not perform adequately, or Are not reasonably priced 8

Establish Guidelines (published January 11, 2005) Designate BioPreferred items - or generic groupings of biobased products that receive procurement preference Establish BioPreferred model procurement program USDA’s Role in Federal Procurement Preference Program 9

Designated Items 33 items have been designated As of May 2009, Federal procurement preference is in place for all 33 items Over 3,700 products represented Many products that can be used in: –Construction –Cafeteria/Food Service –Custodial Services –Vehicle Maintenance –Operations and Maintenance 10

Sample Contract Language Training Materials Technical Fact Sheets Life Cycle Assessment Overview Designation Process How to Do BioPreferred Business BioPreferred Tools Designated Items (cont’d). 11 ConstructionOperations/Maintenance Water Tank CoatingsPenetrating Lubricants Diesel Fuel AdditivesGeneral Purpose De-icers Hydraulic FluidsHand Cleaners & Sanitizers Roof CoatingsAdhesive & Mastic Removers CarpetsFluid Filled Transformers Plastic Insulating Foam Construction2-Cycle Engine Oils Composite PanelsFertilizers Wood and Concrete SealersSorbents Greases Metalworking Fluids

Sample Contract Language Training Materials Technical Fact Sheets Life Cycle Assessment Overview Designation Process How to Do BioPreferred Business BioPreferred Tools Designated Items (cont’d.) JanitorialMiscellaneous Concrete and Asphalt Release Fluids Bedding, Bed Linens and Towels Floor StrippersDisposable Cutlery FilmsDisposable Containers Stationary Equipment Hydraulic Fluid Firearm Lubricants Carpet and Upholstery Cleaners Bathroom and Spa Cleaners Glass CleanersLaundry Products Graffiti & Grease RemoversLip Care Products Dust Suppressants 12

Sample Contract Language Training Materials Technical Fact Sheets Life Cycle Assessment Overview Designation Process How to Do BioPreferred Business BioPreferred Tools Round 5 Proposed Items Operations/ Maintenance JanitorialMiscellaneous Chain and Cable Lubricants Industrial CleanersFood Cleaners Corrosion Preventatives Multipurpose CleanersGeneral Purpose Household Cleaners Forming Lubricants Gear Lubricants Parts Wash Solution 13 Round 5 regulation proposed in October 2008 No public comments received USDA hopes to publish final rule this summer Items include:

Voluntary labeling program will allow product vendors to use a USDA logo to identify qualifying products. Proposed rule under OMB review. USDA plans to issue proposed rule this summer. USDA also plans to conduct market research on label this summer/fall. Labeling Program 14

General awareness/outreach materials –Fact sheet/brochure –BioPreferred exhibit/booth –Web site –Online biobased basics course Technical aspects of biobased products –Designated item fact sheets (ex: vehicles and maintenance) –Life-cycle performance information sheet BioPreferred Tools 15

BioPreferred Tools: Web site 16

Web site: Short-term Fix-up 17 The new things you can benefit from right away ─Improved look and feel ─Streamlined Home Page ─Catalog of BioPreferred products is front and center ─Improved navigation ─Updated content (policies and regulations, training, contract language, etc.)

In the near future, we hope to give you an even better experience on our site. The following changes will become available soon: ─Faster loading catalog ─Greatly expanded search function in the catalog ─More flexible catalog with options to compare products ─Improved product information, including hot links to product vendor’s Web site ─A community portal for exchange of information among users ─And whatever we (or you) can think of. Please send your suggestions to Web site: Coming Soon 18

Sales (for vendors/manufacturers) –Item designation process –“How to do BioPreferred” business guide –BioPreferred product catalog Procurement –Online and classroom trainings on program implementation –Purchase card fact sheets –Contract templates –Seller/buyer “matchmaking” assistance BioPreferred Tools (cont'd.) 19

BioPreferred resource/tool audit during FY 2009 (who’s using which tools and how) Combine/streamline tools Divest in non-effective ones Deliver tools more efficiently Develop evaluation methods BioPreferred Tools (cont'd.) 20

Training and Cooperation 21 Working with the Federal Acquisition Institute (FAI) to include BioPreferred in acquisition training; Spoke at FAI procurement seminars Working with the Department of Defense and the Defense Logistics Agency to ensure all DoD procurement officials receive BioPreferred awareness and procurement training Provided training to GSA procurement personnel on BioPreferred contracting, including mini-training sessions on-site Trained the Department of Treasury on including BioPreferred in all contracts; Working with Treasury on their upcoming rebid of enterprise-wide janitorial and food service contracts

USDA Implementation Strategy 22

USDA Walking the Walk USDA Green Purchasing Plan (GPAPP) USDA Advantage USDA biobased product use –“Green Bottle” spring water in cafeteria –BioGreen ® fertilizer applied to Whitten Building lawn –Biobased roof coating on WV ARS facility 23

USDA Walking the Walk: Outreach 24 Federal –Federal Environmental Symposia (East and West) – June –GSA SmartPay (Biobased product procurement via government charge cards) – July –GovEnergy – Aug Industry ─NPE (International plastics showcase) – June ─BIO World Congress – July ─BioPolymers Symposium – Sept

BioPreferred 2009 Timeline 25

Finalize labeling rule and initiate labeling program Augment item designation: Rounds 8 − 12 Revise program guidelines Continue outreach and training BioPreferred 2010 Milestones 26

Re-examine existing testing and evaluation processes for item designation Include designation of intermediates and feedstocks Address designation of complex products such as automobiles Replace "item" with a more accurate term such as "product category" Revising Program Guidelines 27

Designate intermediate ingredients and feedstocks used to produce items subject to Federal procurement preference Automatically designate items composed of intermediate ingredients and feedstocks −If content of designated intermediate ingredients and feedstocks exceeds 50% of item −Unless Secretary determines different percentage is appropriate Designating Intermediates/Feedstocks: Farm Bill Requirements 28

Biobased Intermediates/Feedstocks 29

Complex products are those with multiple components (ex: automobiles, office furniture, mattresses) Currently there are no approved testing methods for determining biobased content of complex products Revised guidelines will need to await approved testing methods or determine decision rules for designating complex products based on testing individual components Designating Complex Products 30

Automobile Biobased Components 31 Source: Ford Motor Company

For Further Information Jeff Goodman, Departmental Administration, Environmental Management Division ( 202) Ron Buckhalt, Departmental Administration, Environmental Management Division (202) Steve Devlin, Iowa State University, (641) Website: 32