1. GSA Training Conference and Expo 2010 Learn What's New with the BioPreferred Program Jeff Goodman Chief, Environmental Management Division USDA Steve Devlin Program Manager Iowa State University

2. Discussion Topics Overview of BioPreferred SM Program USDA’s role Implementation strategy Program updates −Designated items −Labeling program Revising program guidelines Timeline 2

3. 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 3

4. What are biobased products? 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 4

5. Why promote biobased products? Climate Change Impact Reduction — Qualifying biobased products reduce introduction of new fossil carbon into atmosphere Energy/Environmental Security — Biobased products replace petroleum products, helping to increase U.S. energy and environmental security and independence Economic Development — Biobased products create “green” jobs 5

6. Why Promote Biobased (con’t.)? In addition to the reasons on the last slide, it’s the law! 6

7. Speaking of the law… 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 2005 - Sections 205 and 943 Executive Order 13423 - January 24, 2007 FAR Updated - November 7, 2008 7

8. 2008 Farm Bill Changes Updates definition of biobased product Permits designation of intermediate ingredients and feedstocks and certain products derived from them Permits labeling of intermediate ingredients, feedstocks, and complex products Directs USDA to establish national registry of testing centers Specifies detailed reporting requirements Requires management plan 8

9. Implementation Strategy 9

10. 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. 10

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

12. Item Designation Process Information collection Testing and evaluation –Biobased content measurement –Environmental life-cycle assessment Determination of minimum biobased content Preparation and publishing of proposed rule Evaluation of public comments Promulgation of final rule 12

13. Designated Items 42 items have been designated Currently, Federal procurement preference in place for 33 items Preference for remaining nine items effective this October … but there’s no need to wait! Over 4,500 products represented Many products used in: –Construction –Food service –Custodial dervices –Operations and maintenance 13

14. Designated Items: Construction 14

15. Why are those minimum biobased percentages all over the place? Performance! 15

16. Designated Items: Food Service 16

17. Designated Items: Custodial Services 17

18. Designated Items: Operations and Maintenance 18

19. Designated Items: Miscellaneous 19

20. Round 6 Proposed Items 20

21. Labeling Program Voluntary labeling program allows use of BioPreferred logo to identify qualifying biobased products Label will apply to product and/or packaging Proposed rule published July 2009 Review and comment period and market research completed Final rule under preparation 21

22. Purpose of Label 22 Expand product use Increase availability of information to consumer Help manufacturers market biobased products Unbiased source and indicator of biobased content

23. Revising Program Guidelines 2008 Farm Bill provisions related to intermediates and feedstocks requires USDA to revise BioPreferred program guidelines In addition, program guidelines are five years old and need an overhaul Revision strategy –Identify key issues –Hold public meetings to gather input –Publish revisions as proposed rule in Federal Register –Revise proposed rule based on public comment and finalize program guidelines 23

24. Program Guideline Key Issue Areas Designation of intermediates and feedstocks Designation of complex assembly products Environmental life-cycle assessment Note: These three issue areas became the subjects of three public meetings. 24

25. Intermediates and Feedstocks 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 25

26. Intermediates and Feedstocks: Simplified Manufacturing Process Flow 26 What should we designate?

27. Intermediates and Feedstocks (con’t.) 27

28. Intermediates and Feedstocks (con’t.) 28 Unfortunately, the real world is slightly more complicated than our simple example.

29. Intermediates and Feedstocks (con’t.) 29

30. Intermediates and Feedstocks (con’t.) 30 And that’s only a simplified representation of the biobased manufacturing industry!

31. Intermediates and Feedstocks: Key Issues What types of materials to designate How to prioritize the designation of intermediates and feedstocks How to design the process whereby downstream products are automatically designated following the designation of an intermediate or feedstock Note: Federal government does not generally purchase intermediates and feedstocks. 31

32. Designating Complex Products Complex assembly 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 32

33. Complex Products: Automobile Biobased Components 33 Source: Ford Motor Company

34. Environmental Life-Cycle Assessment Farm Bill requires program guidelines “…to provide information as to the … environmental and public health benefits of such materials and items…” Existing program guidelines use environmental life-cycle assessment (LCA) to provide that information LCA examines environmental impacts throughout the product’s life-cycle including manufacturing, use, and end-of-life disposition 34

35. Environmental LCA (con’t.) USDA has adopted Building for Environmental and Economic Sustainability (BEES) model Evaluates impacts for 12 environmental and public health impacts such as global warming and human health, and ecological toxicity Integrates impacts into a single score based upon a predetermined weighting scheme Methodology is comprehensive and accepted in scientific circles 35

36. BEES Concerns Expensive Difficult for the procurement community to understand Produces a score that only has meaning in comparison to other products that have been evaluated BEES scores are not factored into the designation process Bottom line: benefits may not be commensurate with costs Key LCA issue: Is there a better way to do it? 36

37. FY 2010 BioPreferred Timeline 37

38. For Further Information: Jeff Goodman, Departmental Management, Environmental Management Division jeffrey.goodman@dm.usda.gov, (202) 401-4747 jeffrey.goodman@dm.usda.gov Ron Buckhalt, Departmental Management, Environmental Management Division ronb.buckhalt@dm.usda.gov, (202) 205-4008 ronb.buckhalt@dm.usda.gov Steve Devlin, Iowa State University, sdevlin@iastate.edu, (641) 613-3298 sdevlin@iastate.edu Website: http://www.biopreferred.govhttp://www.biopreferred.gov 38