1. Jeff Goodman Environmental Management Division U.S. Department of Agriculture August 2012 Program Status and Outlook

2. 1 Topics Addressed BioPreferred program overview Review of Federal procurement preference program Increasing Federal acquisition of biobased products under Presidential Memorandum Labeling program status and outlook What’s Next

3. BioPreferred Program Overview 2 Established by 2002 Farm Bill Identifies and seeks new markets for biobased products Two major program elements: – Federal procurement preference – Voluntary labeling

4. U.S. Businesses Registered with BioPreferred program 3

5. Procurement Preference Program 4 USDA identifies and designates product categories (with minimum biobased contents) by rule Federal agencies must show biobased products in designated categories a procurement preference one year after rule is final 1 Requirement applies to Federal agencies and contractors 1 Exceptions apply

6. Procurement Preference Status 5 To date, USDA has promulgated eight designation rules and has proposed a ninth rule Currently, 77 product categories designated About 10,000 products represented USDA will continue designations (Round 9 rule will add 12 categories)

7. 6 Product Category Minimum Biobased Content Forming Lubricants68% Straight Oils66% Multi-Purpose Lubricants88% Parts Wash Solution65% Turbine Drip Oils87% Graffiti and Grease Removers 34% Corrosion Preventatives53% Example - Operations & Maintenance

8. “Driving Innovation and Creating Jobs in Rural America through Biobased and Sustainable Product Procurement” Overall objective is“…to promote rural economic development, create new jobs, and provide new markets for farm commodities.” Signed February 21, 2012 Presidential Memorandum Overview 7

9. To ensure that Federal agencies effectively execute Federal procurement requirements for biobased products, including those requirements identified in Executive Order 13514 and prescribed in the 2002 Farm Bill, as amended by the 2008 Farm Bill. 8 Goal

10. Presidential Memo Fits into White House Blueprint for the Bioeconomy White House initiative to promote the bioeconomy Focus on bioeconomy because of its tremendous potential for American innovation, growth, job creation, and other societal benefits Announced April 26, 2012 9

11. 1: Actions Related to E.O. 13514 2: Biobased Product Designations 3: Changes in Procurement Mechanisms 4: Small Business Assistance 5: Reporting 6: Job Creation Research 7: Education and Outreach 8: General Provisions and Publication in Fed. Reg. 10 Presidential Memo Sections

12. Agencies to include and report on biobased acquisition as part of Strategic Sustainability Performance Plans (SSPPs) Agencies to ensure 95% sustainable acquisition of biobased products through − Affirmative procurement programs − Procurement review and monitoring under the 2008 Farm Bill − Training OMB to emphasize biobased purchasing in sustainability scorecards 11 1: Actions Related to E.O. 13514

13. 12 E.O. Actions: Scorecards

14. Agencies submitted Strategic Sustainability Performance Plans (SSPPs) to OMB/CEQ on June 29 th SSPPs include results of sustainable acquisition surveys including biobased acquisition SSPPs should include 2012 scorecard requirements USDA will be working with OMB in reviewing SSPPs to evaluate conformance to Presidential Memo/scorecard requirements 13 E.O. Actions: SSPPs

15. USDA to increase number of designated categories of biobased products for preferred Federal procurement by 50% in one year − Given 64 categories designated at time of memo, goal is to add 32 − Will occur by February 2013 via three regulations USDA to establish web-based process for biobased product manufacturers to suggest categories 14 2: Biobased Product Designations

16. 13 product categories added in Round 8 rule promulgated April 2012 12 additional product categories proposed in Round 9 rule in June 2012 Designation schedule 15 Designation Status and Outlook DateActivity Nov. 2012Propose Round 10 (with ≥7 product categories) Dec. 2012Promulgate Round 9 Feb. 2013Promulgate Round 10

17. 16 Achieving the Designation Goal

18. Senior Sustainability Officers and Chief Acquisition Officers to sample solicitations and awards and include results in scorecards Agencies who have electronic catalogs to increase visibility of biobased products in those catalogs Senior Sustainability Officers of all agencies with product specifications to review and revise them to remove prohibitory language on a four-year cycle USDA to amend its contract writing system as a model for biobased product procurement 17 3: Changes in Procurement Mechanisms

19. GSA Advantage − USDA performed cost comparisons of biobased vs. non-biobased products − USDA finishing paper documenting instances where biobased products are “buried” − Next step: meet with GSA management DOD Emall − Access issues made for slower start − Will follow same approach as GSA 18 Electronic Catalog Activity

20. Big player is Defense Logistics Agency (DLA) USDA has met with DLA to discuss Presidential Memo requirements Discussion of 2013 specification- related scorecard requirements included in June on-line training attended by DLA staff Expect scorecard requirement to serve as major incentive to act 19 Specifications Review

21. Department of Commerce to use Manufacturing Extension Partnership (MEP) and other mechanisms to make biobased manufacturers more competitive USDA to work with Procurement Technical Assistance Centers (PTACs) to assist biobased product companies USDA to develop and SBA to disseminate small business-specific training materials 20 4: Small Business Assistance

22. USDA met with Small Business Administration representatives in April to discuss ways two agencies can work together BioPreferred staff met with PTAC Association to discuss Presidential Memo BioPreferred staff spoke in May at Manufacturing Extension Partnership National Conference Within USDA, BioPreferred staff working with Office of Small and Disadvantaged Business Utilization 21 Small Business Assistance

23. Free, on-line seminar August 14 th,1:30 − 2:30 pm Live via streaming video or satellite downlink, including information on: − Biobased product opportunities and growth industries − Introduction to BioPreferred Program − How Federal procurement preference stimulates demand − Resources available from SBA, PTACs, and MEP Go to www.biopreferred.gov to registerwww.biopreferred.gov 22 Cultivating Opportunities in the Biobased Marketplace

24. 5: Reporting Federal Acquisition Regulatory Council to publish FAR rule requiring reporting of biobased product purchases − USDA, in consultation with Chief Acquisition Officers Council, to create reporting template to assist agencies in meeting reporting requirements 6: Jobs Creation Research ― USDA to do study 23 Sections 5 and 6

25. Selected members of an existing Chief Acquisition Officers Council workgroup are developing template and approach USDA developing a draft reporting template Process will likely involve contractor reporting by Federal agency with USDA as central point of data collection Interim spreadsheet solution until incorporation into GSA Integrated Acquisition Environment 24 Reporting Template

26. USDA to update existing BioPreferred training Senior Sustainability Officers and Chief Acquisition Officers to work with USDA to implement training USDA to collaborate with AbilityOne to promote the increased purchase of biobased AbilityOne products 25 7: Education and Outreach

27. USDA updated all classroom training and posted it on the biopreferred.gov website We held a live one-hour training session on the Presidential Memo in June attended by over 1,000 USDA and AbilityOne staff worked together at GSA Expo in May to promote the use and purchase of biobased products Currently updating contract templates for posting on website 26 Education/Outreach Actions

28. Voluntary Labeling Program Goals 27 Expand purchases of biobased products in commercial and retail markets Increase availability of information to consumers Help manufacturers market biobased products

29. “USDA Certified Biobased Product” Label 28 Launched February 2011 Serves as an unbiased indicator of biobased content On-line paperless application process Minimum biobased content − Same as designated category for products associated with a category − 25% for all others Independent third party certification partnership with ASTM International

30. What’s on the Label? 29 “Sun, sea, and soil” motif Product or package Biobased content percentage listed “FP” (“Federally Preferred”): associated with a designated product category and included in Federal procurement preference program

31. USDA Certified Biobased Products ActivityNumber Applications Received 1,200 Review/Testing in Process 400 Certification750 Failed [ ]60 (As of June 2012) Certification Process 30

32. Auditing: Overview Objective is to ensure program integrity – Monitors validity of participants’ biobased content claims for designated products – Safeguards proper usage of label in marketplace Aimed at products in BioPreferred catalog Three stage process for all products that program recognizes 31

33. 32 Auditing: Catalog Overview

34. Stage 1 – Declaration of Conformance form submittal (2012) − 25% of products in catalog will be removed this fall − 80% of companies audited are using the label/certification mark correctly  Mostly minor label use violations; some major  Corrective follow-up in place 33 Auditing: Status

35. Auditing: What’s Next Stage 2 – USDA testing of a sampling of participants’ products (2013/ 2014) Stage 3 1 – Participant retesting of all certified/labeled products at frequency to be determined (2016) 34 1 Stage 3 implementation will require revision of labeling rule.

36. USDA proposed changes to BioPreferred Program Guidelines on May 1, 2012 including − Designating intermediate materials and feedstocks and downstream finished products − Designating complex assembly products − Limiting program to “new and emerging markets for biobased materials” 60-day comment period closed end of June Currently evaluating comments received from 19 organizations or individuals 35 Program Guidelines: Status

37. Will complete analysis of comments, develop regulatory options, and decide on positions for final rule Promulgation of revised Program Guidelines scheduled for January 2013 Passage of new Farm Bill could send us “back to the drawing board” vis-à-vis inclusion of mature market products legislatively 36 Program Guidelines: What’s Next?

38. New awards program will recognize outstanding achievements by USDA employees in advancing BioPreferred program objectives Nominations received by end of July Awards in October FY 2012 pilot program limited to USDA Pilot to serve as model for a government-wide awards program in future 37 Awards Program

39. 38 Contacts Jeff Goodman, Chief, Environmental Management Division, jeffrey.goodman@dm.usda.gov, 202-401- 4747jeffrey.goodman@dm.usda.gov Ron Buckhalt, BioPreferred Program Manager, ronb.buckhalt@dm.usda.gov, 202-205-4008 ronb.buckhalt@dm.usda.gov Web site: http://www.biopreferred.govhttp://www.biopreferred.gov Twitter: @BioPreferred