003
Wednesday
June 22, 198«
Part VI!


Environmental

Protection Agency

40 CFR Part 250
Guideline for Federal Procurement of
Paper and Paper Products Containing
Recovered Materials; Final Rule
              Printed on Recycled Paper

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    23548     Federal Register / Vol.  53.
    ENVIRONMENTAL PROTECTION
    AGENCY
    40 CFR Part 250

    1SWH-FRL 3385-7]

    Guideline for Federal Procurement of
    Paper and Paper Products Containing
    Recovered Materials


   AGENCY: U.S. Environmental Protection
   Agency.
   ACTION; Final rule.

   SUMMARY: 1 he Environmental Protection
   Agency (EPA) today is issuing a revised
   guideline for Federal procurement of
   paper and paper products containing
   recovered materials. The revised
   guideline supersedes the final paper
   procurement guideline promulgated by
   EPA on October 8,1987 (52 FR 37293). It
   provides for the use of postconsumer
   recovered materials in most grades of
   paper; in the case of printing and writing
   papers, it provides for the use of waste
  paper, while in the case of cotton fiber
  papers, it provides for the tree of
  recovered materials.
    The guideline implements Section
  6002(e) of the Resource Conservation
  and Recovery Act of 1976 (RCRA), as
  amended, which requires EPA (1) to
  designate items which can be produced
  with recovered material* and (2) to
  prepare guidelines to assist procuring
  agencies in complying with the
  requirements of Section 8002. Once EPA
  has designated an item, Section 6002
  requires that any procuring agency usino
  appropriated Federal funds to procure
  that item must purchase such items
  containing the highest percentage of
  recovered materials practicable.
   This guideline designates paper'and
 paper products as items for which the
 procurement requirements of RCRA
 Section 6002 apply. The guideline also
 contains recommendations for
 implementing the Section 6002
 procurement requirements, as well as
 the requirements to revise
 specifications. Revisions to the guideline
 recommend the use of specific minimum
 content standards, define "waste paper"
 and ' cotton fiber content papers." and
 make recommendations regarding data
 gathering to meet the annual review and
 monitoring requirement

 ffEy* Dr*TE*: The revi8ed guideline
 is effective June 22.1988. Procuring
agencies must implement the
requirements of RCRA Section 6002 with
    respect to procurement of paper and
    paper products according to the
    following schedule:
     Completion of specification revisions
   and development of affirmative
   procurement programs: Jane 22,1989.
     Commencement of procurement of
   paper and paper products in accordance
   with RCRA Section 6002: June 22,1989.
   ADDRESS: The public docket for this
   guideline may be inspected in RoonvLG-
   100, U.S. EPA, 401M Street, SW.f
   Washington, DC from 9:00 am to 4:00
   pm, Monday through Friday, excluding
   holidays. To review docket materials,
   the public must make an appointment by
   calling (202) 475-9327. Materials may be
  copied from any regulatory docket at a
  cost of 15 cents per page. Copying
  totaling less than $15 is free.
  TOR FURTHER INFORMATION CONTACT:
  RCRA Hotline, toll-free, at (800) 424-'
  9346 or at (202) 382-3000. For technical
  information, contact William Sanjour
  Office of Solid Waste, WH-563, US
  EPA, 401M Street, SW., Washington,
  DC 20460. telephone: (202) 382-4502.
  SUPPLEMENTARY INFORMATION:

 Preamble  Outline
 I. Authority
 II. Introduction
  A. Purpose and Scope
  B. Requirements of Section 6002
  C. Rationale for Selecting Paper and Paper
    Products Containing Recovered Materials
    tor a Procurement Guideline
 W. Background Information on Using Recov-
  ered Materials in Paper and Paper Products
 • A. Introduction
  B.-Use of Recovered Materials in Paper and

  C. Recovered Materials
  D. Performance
    1. Printing/Writing Papers
    2. Fiber Boxes
  E. Ma|or Federal Purchasers
IV. Discussion of Guideline
  A. Purpose and Scope
  B. Applicability
   1. Procuring Agencies
   2. Direct Purchases
   3. Indirect Purchases
   4. The $10,000 Threshold
   5. Functionally Equivalent Items
 C. Requirements vs. Recommendations
 D.  Organization of  the  Revised Guideline
 E. Definitions
  1. "Paperboard"
  2. "Practicable"
  3. "Waste Paper"
  4. "Mill Broke"
  5. "Cotton Fiber"
 F. Specifications
  1. General
    a. Federal agencies
          b. Procuring agencies
        2. Recommendations
        3. Exclusion of Products That Do  Not
          Meet Performance Standards
        4. Specifications Related to Aesthetics
        5. New Specifications
      G. Affirmative Procurement Program
      •  1. Recovered Materials Preference Pro-
          gram
          a Case-by-case approach
          b. Minimum content standards
           (1) Legal considerations
           (2) Methods for establishing minimum
             content standards
           (3) Basis of recommended minimum
            •content standards
           (4) Archival papers
       2.  Promotion Program
       3.  Estimation, Certification, and Verifica-
         tion
         a. Estimation'
         b. Certification
      ,   c. Verification
       4. Annual Review and Monitoring
   V. Price, Competition,  Availability, and Per-
     formance
     A. Price   •
     B. Competition
     C. Availability
     D. Performance
   VI. Implementation
   VII. Summary of Supporting Analyses
     A.General
     B. Environmental and Energy Impacts
     C. Volume Reduction and Cost Impacts of
      Reducing Paper Disposal in Landfills
     D. Executive Order No. 12291
     E. Regulatory Flexibility Act
  I. Authority

    This revised guideline is issued under
  the authority of Sections 2002(a) and
  6002 of the Solid Waste Disposal Act, as'
  amended by the Resource Conservation
  and Recovery Act of 1976, as amended,
  42 U.S.C. 6912(a) and 6962.

  n. Introduction
 A. Purpose and Scope

   The Environmental Protection Agency
 (EPA) today is revising the final paper
 procurement guideline, which is one in a
 aeries of guidelines designed to
 encoarage the use of products
 containing materials recovered from
 solid waste. Section 8002 of the
 Resource Conservation and Recovery
 Act of 1976, as amended ("RCRA" or
 "Act"), 42 U.&C. 6962, states that if a
 Federal, State, or local procuring agency
 use* Federal funds to purchase certain
 designated items, such items must be
composed of the highest percentage of
recovered materials practicable. EPA is
required to designate such items and to
prepare guidelines to assist procuring

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          Fedsmt Sapater / Vol. 53, N«fc. 120 / Wednesday. June 22. 138fr /  Rales and Regnlaaons     23St7
agencies in complying with that
reqakeraentoof Section 8CO£
  EPAtesaedthefirslofthes*
guideline*;, for cement andcaaeret*
containing fly ash. on r«»a£2«.19
(48 FR 423* 40 CPR Part JM^pA second
guideline, for paper and pepe*products
containing recovered material* was
issued onOctober 8,1987 (52 FR 3729$
40 CFR Part 250); EPA concurrently
•proposed minimum recovered  materials
content standard! for paper and paper
product* A third guideline, for asphalt
material* containing ground tire rubber,
was proposed on February 20.1988 (51
FR 6202). A fourth guideline, for engine
lubricating oils, hydraulic fluids, and
gear oils containing re-refined oils, was-
proposed on October 1ft 1987 (82 FR
38838).  EPA also proposed a guideline
for procurement of retread tires on May
 2.1988  (53 FR 15624).       „  ,
   Today EPA is revising the final
 guideline for paper and paper products
 to incorporate the proposed-
 amendments. Because EPA is  changing-.
 its recommendation for the preference
 program component of the affirmative
 procurement program and this change
 affects all other requirements  and'
 recommendations, the revised guideline
 supersedes the previous (October 8, •
 1987) final guideline. Note that most
 provisions of the October 8.1987 final
 guideline am not changed in the revised
 final guideline; EPA is including a
 discussion of these provisions in the '
 preamble today as a convenience  to the
  reader.
 B. Requirements of Section 6002
    Section 8002 of the Act "Federal
  Procurement." directs all procuring
  agencies that use Federal funds to
  procure items that contain the highest.
  percentage of recovered materials
  practicable, and in the case of paper.
  postconsumer recovered materials,
  provided that reasonable levels of
  competition, cost, availability, and
  technical performance are maintained.
  Two factors trigger this requirement
  First.  EPA most designate items tcv
  which this requirement •ppUefc Second*
   the requirement applies only when, the
  purchase price of the item exceed*
  $10,000 or when the quantity of such
   items or of functionally equivalent items
   purchased or acquired in the course of
   the preceding fiscal year was $10.000 or
   more.
     Section 6002fe) requires procuring
   agencies to obtain from suppliers an
   estimate of and certification regarding
   the percentage of recovered  materials
   contained in their products.
     Federal agencies responsible for
   drafting or reviewing specifications for
   procurement items were required under
Section aD02(d)(l) to review and revise
the specifications by May 8,1988 u»
order to eliminate both exclusions of -
recovered materials and requirements
that items be manufactured from virgin
materials. ID addition; within one year
after the date of publication of B
procuramest guideline by EPA, the
Federal agencies must revise their
specifications to require the use of
recovered material* in such items to the
maximum extent possible without
affecting the intended use of the item.
  Section SOI of the Hazardous and
Solid Waste Amendments of 1984 (Pub.
L. 98-616) added paragraph (i) to Section
6002 of RCRA. This provision requires
procuring agencies to develop an
affirmative procurement program for
procuring items designated by EPA. The
program must assure that item*
composed of recovered materials will be
purchased to the maximum extent
practicable, be consistent with
applicable provisions of Federal
procurement law, and contain at least  •
four elements:
  (1) A recovered materials preference
program;
  (2) An agency promotion program;
  (3) A program for requiring.estimates,
certification, and verification of
recovered material content; and
  (4) Annual review and monitoring of
the effectiveness of the procurement
program.
   Under Section 6002(6), EPA is required
 to issue guidelines for use by procuring
 agencies in complying with the
 requirements of Section 8002. The EPA
 guidelines must provide            v
 recommendations for procurement
 practices and information on.
 availability, relative price, and
 performance.
 C. Rationale for Selecting Paper and
 Paper Products Containing Recovered
 Materials for a Procurement Guideline

   In the preamble to the fly ash
 guideline. EPA established criteria for
 the selection of procurement items for
 which guidelines will be prepared.
 Section 6002(e) of RCRA specifically
 directs the EPA Administrator to issue a
 procurement guideline for  paper,
 however. The term "paper" is construed
 by EPA to include paperboard and
 paper products also. Since Congress
 already has selected paper and paper
 products as appropriate subjects for a
 procurement guideline, it is not
 necessary for EPA to determine that
 they are an appropriate subject for a
 guideline nor to demonstrate that paper
  and paper products satisfy the EPA
  criteria.
HL BadcgBBUod hiEnimartqp on Usiag
Recovered Materials ia Paper sad Paper
Product*

A. Introduction

  In 1988. Jibont aOmiffion tons of paper
and paper products wen coBstoned to
the U.S.A* of which about 2S.8 rafflon
tons were i-ecovered for recycling and
about 50 million tons were disposed of*
primarily in municipal solid waste
landfills. This is about half of ail
manufactured product waste appearing
in municipiii solid waste and about 35
percent of all municipal sotid waste
discarded ('principally from households,
commercial businesses, and
institutional). By any measure, paper and
paper products constitute a major
portion of nolid waste in this country.
  The nation spends more than S9-
billion annually on solid waste disposal.
Most communities are running out of
landfill cajwcity,  and the siting of new
landfills has become very difficult. Thus,-
activity to promote recovery and reuse
of paper and paper products is a matter
of national priority both to reduce the
cost of d!s]posal and to extend the life of
existing landfills.
  It should be noted, however, thai
paper and paper  product disposal is not
known to lie a  significant threat to
human health or  the environment as the
wastes ant generally nonhazardous in
character. Thus, while the disposal of
paper doe« not present an urgent need
for immediate solution from die health
and environment viewpoint, it is being
addressed because many areas of the
U.S. are running  out of disposal options
for all wastes and-face serious crises
unless the solid waste streams can be
reduced and/or disposed of in an
acceptabht manner.
B. Use of Recovered Materials in Paper
and Paper Products
  Within the paper industry and its
suppliers, discarded" paper recovered for
use in manufacturing processes is called
waste papier, recyclable paper, or paper
stock. It is often kept separate from
mixed refuse at the businesses and
residences where it is discarded. For
example, businesses may separate and
bale used corrugated containers to be
picked up by a  waste paper dealer, and
people may separate newspapers in
their home's to be donated to a local
paper drivt for a  charity. Soma
businesses and institutions separate
office papers in office buildings by
means of a de«k top sorting container or
other wayiu Waste paper that is
separated and collected is then
customarily transferred to a waste paper
dealer, who prepares the paper for

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    23548
                                                                                              Regulations
    chipmem by baling or other means, and
    sells the waste paper to a paper mill.
     A! th* paper mill, waste paper is
    mix!-; with water in a large vessel with
    rotal-'ns beaters at the bottom similar to
    but larger than a kitchen blender.The
    bating process separates the paper   •
    fioers and forms a slurry pulp. This
    recycled pulp is similar in appearance to
    virgin pulp prepared from wood.
   Recycled pulp is then cleaned and
   washed as necessary. In some recycling
   processes, the recycled pulp is washed
   with chemicals to remove inks.
   adhesive, and other contaminants. This
   process is referred to within the paper
   industry as "deinking". After, deinking.
   the recycled pulp is equivalent to virgin
   pulp. Both recycled and virgin pulps are
   formed into paper and paper products in
   a similar fashion.
    Paper products are manufactured from
   either virgin or recovered materials, or
   combinations of the two, by various
   manufacturers. Tests have shown that
   for * given product grade there is :a  wide
   variation in all measurable
   characteristic* depending on particular
   manufacturers or particular production '
   runs at a given mill Product* from both
  virgin and recovered materials generally
  rail into the same range of variability '
  and frequently, they cannot be'
  distinguished by the typical ena-ttser
    However, recycled-.paperfibers do
  tend to be shorter thanr virgin' fibers"
  because of the recycling prbceB8."flie.  :
  short fibers may cause recycled paper to
  be weaker than an otherwise equivalent ;
  virgin sheet, bufthe sheet will also have
  a higher opacity. In paperboard
  products, the recycled grade Is,,
  sometimes  produced at a somewhat
  higher caliper (thickness) than the •
  equivalent virgin fiber product to ensure
  similar performance characteristics..
  Paper and paperboard manufacturers
  can generally manufacture products that
  meet customer specifications by taking
  into account the characteristics of paper
  made from recovered material For seme
  products the recycled fiber
  characteristics are preferred; for most
  there need not be any differences
 distinguishable by the end user.
   Some recycled fiber is derived from
•paper containing printing, or from paper
 that has other materials such as coatings
 or adhesives on it. Paper made from
 these recovered-materials sometimes
 does not have quite the same
 appearance as virgin paper. It  is not •
 quite as bright, or as white, or has a
 grayish or bluish tint, and it  is
 sometimes speckled in appearance.   '
 Recycled paper manufacturers can
 bleach and brighten the paper and clean
 contaminants from the pulp. Coatings •
 can also be added to the paper surface
   to enhance its "whiteness" and
   "brightness". These processes allow
   paper made from recovered materials to
   meet customer specifications.
     EPA concludes that as a general rule.
   paper containing recovered materials
   can be manufactured to meet customer
   specifications. Commenters have
   questioned whether paper made from
   recovered materials is always available
   at all locations at a reasonable price.
   This concern is addressed later in this
   preamble.

   C. Recovered Materials
     As previously explained, RCRA
   requires EPA to designate item* which
  ..can be produced with "recovered  .
   materials?'. Section 6002(h) of RCRA
   divides the universe of-recovered paper
   materials into (1) postconsumer  .
   materials and (2) manufacturing, forest.
   residues, and other wastes.
   Postconsumer materials are items which
  have parsed throug> their end-usage as"
  a consumer item and would include old
  newspapers, magazines, used
  corrugated containers, and office waste
  paper. The Hazardous and Solid Waste
  Amendments of 1984, amended Section
  6002 to require that, in the case of paper,
  the guideline would maximize the use-of
  postconsumer recovered material. '
 •  .The second-category of recovered  -
  pspermaterials under RGRA-^-
  manufacturing, forest residues, and  •
•-;other -wastes—are preconsumer wastes: -
 -These would include manufacturing
  wastes like paper and paperboard - -  •
  waste, bag, box and carton waste,'  '
 printed paper which has never reached
 the consumer, and obsolete inventories.
 Other preconsumer waste papers
 include fibrous byproducts and other
 forest residues from manufacturing or
 woodcutting processes. Additional
 examples of this type of waste paper are
 those generated by the conversion of
 goods made from fibrous materials such
 as waste rope from cordage manufacture
 and textile mill waste and cuttings used
 in production of cotton fiber papers.
   Preconsumer waste paper use is
 already at a high level. Increasing the
 demand for paper products containing
 recovered materials therefore requires
 that postconsumer waste paper be used.
 While the use of postconsumer
recovered materials is emphasized in
RCRA Section 6002, it is also beneficial
                 ,
to increase the usage of preconsumer
waste-materials in paper and paper
products. Thus, for example, as demand
increases for a wider range of paper and
paper products, manufacturers of
products that are currently made with
preconsumer materials will have to use
larger quantities of postconsumer
recovered materials to meet their raw
   materials (i.e., recovered paper) supply
   needs.
     For purposes of the paper and paper
   products guideline. EPA distinguishes
   between recovered materials,
   postconsumer recovered materials, and
   waste paper. As is explained in more
   detail below, the term "recovered
   materials" is comprehensive and. as in
   the statute, refers to the complete
   universe of recovered paper products.
   The term "postconsumer recovered
   material" similarly is used as defined in
   RCRflu The term "waste paper," used in
   connection with printing/writing papers,
   refers to ail postconsumer recovered
   materials as well as to preconsumer
   waste paper from some sources. It does
   not include fibrous byproducts from
   forestry, waste generatedJjy the
   conversion of goods made from fibrous
   material and fibers recovered from
   waste water that would otherwise enter
   the waste stream.

  D,. Performance

    The performance of printing/writing
  papers and fiber boxes containing
  recovered materials is often questioned.
 : As noted in the proposed'amendments
  (52 PR 373(37), comments received by
  EPA suggested that few manufacturers
  of printing/writHig paper would.be able
  to meet a minimum*content standard for,
  postconsumer recovered material As a
  result. EPA. reviewed information about
 - Jheiechnicalperfbrmanee of these   -
  products, ..'    .    .          .
 i. Printing/Writing Papers.
   Performance testing of paper
 containing recovered material is a •
 continuing activity of paper
 manufacturers. In some instances, the
 evaluation of the reports of these
 organizations was complicated by the
 fact that the recovered materials used
 were not precisely identified as either.
 postconsumer recovered materials or
 waste paper. The reports of these
 organizations indicate, however, that
 acceptable performance is possible in
 most grades of paper and paper
 products made from recovered
 materials. The use of preconsumer
 waste paper is common in printing and
 writing papers, although the use of
 postconsumer recovered materials is
 limited.
  A common fear is thatjjaper
 containing postconsumer recovered
 materials causes difficulty in printing
 and high-speed copier machines. EPA
has reviewed documentation from state
printing agencies and private sector
printers and has found that this, is a
common reaction by pressmen. In many
states, printers have refused to use

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          Federal gagistsar / Voi 5% Pto.  1&E / Wednesday, June 22.. 136fr / Rates and Regulations,
paper made from recavered material*.
However; several states have had many
yean of experience in printing with audv
paper, after having first overeom*
adverse reactions by pressnteK These
states report that while then tesom* -
difficulty in using printing paper- -
containing postconsumsr recovered'•'
materials, it is no more than with other
economy grade* of printing paper.
Therefore, procuring agencies and
agencies that revise and write
specifications should carefully identify
the performance expected of the product
so that acceptance or rejection is based
on verifiable tests rather than
preconceived perceptions.
   EPA has obtained results of
laboratory tests for both virgin paper
and paper made from recovered   +
materials.1 These testresults provide  •
 additional verification that paper made
 from recovered materials can-and does-
 meet the same standards as virgin paper
 for many categories of printing/writing,
 papers. This is especially true in the
 economy, grades typically purchased to
 competitive bids by public agencies,

 2. Fiber Boxes    •  •".
   The primary standards for Unerboard.
 (the facing material of cormgmted
 containers) and fiber boxes are  set by
 the Uniform Freight Regulations and are
 measures of basic weight and mnllen
 (burst strength). These standards are
 currently under review. The
 contemplated changes would replace the
 mullen test with a "crush"  test that
 would enable Unerboard manufacturers
 to use a percentage, of postconsumer
 recovered materials. (In fact there are a
 few mills including one or more new
 mills that produce  Unerboard made of
  100 percent postconsumer waste paper.)
  Federal pirocuremenfof kraft Hnerbbard
  containing postconsumcr recovered
  materials is practicable because it is
  now produced by a number of
  manufacturers. In addition about one-
  quarter of the corrugating medium used
   to produce boxes is "recycled medium"
   and contains essentially ait
   postconsumer recovered materials^
   E. Major Federal Purchaser*
     The major Federal purchasers of"
   paper, and, therefore, the agencies most
   likely to be affected by this guideline are
   the Government Printing Office (GPO).:
   which operates under the direction of
   the Congressioiial Joint Committee on
   Printing {JCP): the General Services
   Administration (GSA): and the
   Department of: Defense (COO). On
   advice of its Committee pa Paper
     1 See dockirt maMria!! dated October 9,198S for •
   description of these tesia.
Specifications, which includes
representatives from GPO, JCP adopt* .
specifications and standards for printing
and wetting grades of paper. GSA
adopts specifications for all other paper
and paper products. DOD further
reviews these standards and drafts
additional specifications, as necessary.
to establish military standards for some
of the items it procures.

IV. Discussion of guideline
  This section of the preambht
summarizes and explains the basis for
each section of the revised final
guideline and responds to comments
received on the proposed amendments
to the October 1967 final guideline.
Section V discusses recommendations
as to price, competition, availability,
and performance, while. Section VI.
discusses implementation of the revised,
guideline.                    .    .  .
   As used in this and following sections.
of the preamble, the term, "recovered
materials" refers to postconsumer
recovered materials in the case of most:
types and grades of paper and paper-
products, to waste paper in the case of
the printing/writing grades, and to
recovered materials in the case .of-cottom
fiber papec.           ..     -  < . .  •
A. Purpose and Scops
   The purpose of this  revised guideline
 Is to recommend additional procedures-.
 for complying with Section 6002.  .
   This guideline appUes to the
 procurement of paper and paper  .
 products containing recovered
 materials. Included are all paper and
 paperboard categories except building
 and construction paper grades. The
 Agency is including as many items as-
 possible within the scope of the
 guideline to encourage the paper
 industry to increase and to improve the
 production of paper and paper products
 containing recovered  materials.
   The final guideline  included an
 illustrative, but not inclusive, list of •
 major paper and paperboard purchase
 categories falling within the scope of the
 guideline. It is as follows:
  • 'High Grade Bleached Papers.
    Printing and writing papers, including
      mcmeo and duplicator papers
    Mailing envelopes
    Memo pads
    Form bond and manifold business
      forms
    Computer paper
    Xerographic/copy  paper
  « Newsprint
  • Tissue Products
    Sanitary products, e.g.,  toilet tissue,'
      paper towels, facial tissue, paper
      napkins
   Industrial wipers
 • Unble«ched*Paper and Paperboard
 • Coarse piiper*
 • Linerfaoardand corrugating medium
 • CorrugaUtd boxes
 • Fiber sheists and boxes
   fa making its decision regarding the
 scope of thi» guideline, the Agency
 considered suggestions from the
 Government Printing. Office and
 representatives of the printing industry
 to the effect: that performance standards
 for certain jjrades of printing and writing
 paper can currently be met only by
 virgin paper. It was suggested that EPA
 exclude these papers on an item-by-item
 basis. It was also suggested that certain
 items that must meet stringent standards
 on noncontamination. such as surgical
 masks and items coming in contact with
 wet or oily foods, should he individually
 identified for exclusion.
   RCRA Section 6002(d)(2). requires the
 use "of rectrvered materials to the
 maximum extent possible without
 jeopardizing the intended use of the
 ite,m". This statutory provision  ...
 effectively allows procuring agencies to
• exclude uso of recovered materials from
 specifications, when performance
 standards lor an item cannot be met if
 recovered materials are included in the
 content. Although commenters stated
 that EPA should exclude items, they did
 not indicate why this statutory provision
 is inadequate to accommodate the
 concerns olf agencies that draft and
 review speiEifications. A determination
 to exclude a specific item from a
 recovered materials content requirement
 may be made by the agency in drafting
 and reviewing specifications based on
 standards related to performance. EPA
 suggests a procedure for establishing
 such an exclusion in § 250.13 of this
 guideline. It is further suggested that
 performance tests be cited and that test
 results be included in records for the :
 annual review process and in any
 reporting on the effectiveness of the
  affirmative procurement program.
    EPA decided not to include building
  and construction grades of paper based
  on several considerations. In reviewing
  the variety of paper and paper products
  that are or may be manufactured with a
  percentage: of recovered materials, it
  became apparent that building and
  construction grades constitute a
  significant and distinct industry _
  unrelated to the manufacturing of
  virtually all odier grades of paper and
  paperboard. The manufacturing,
  marketing, standards, and testing
  mechanisms for building and
  construction grades are different from
  those for cither grades of paper. Any
  evaluation, of the feasibility a»
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   23550     Federal Regbter.../ Vol. 53, No. 120 / Wednesday. June 22.  1988 / Rules  and Regulations
  potential effectiveness of a Federal •
  procurement program for these grades
  would require extensive additional
  information: in addition, different
  procurement offices and procedures are
  involved in the procurement of
  construction categories. For these
  reasons. EPA believes that it would be
  inert appropriate to consider building
  'and construction grades'of paper in a   .
  separate context. Toward this end. EPA
  studied the feasibility of and is
  preparing a procurement guideline for
  building insulation products made from
  recovered materials including paper.
  B. Applicability
    Many of the requirements of Section
.  6002 apply to "procuring agencies."
  which is defined in RCRA Section
  1004(17) as "any Federal agency, or any
  State agency or agency of a political
  subdivision of a State which is using
  appropriated Federal funds for such
  procurement, or any person contracting
  with any such agency with respect to
  work performed under such contract."
  Under Section 8002(a). the procurement
  requirements apply to any purchase by a
  procuring agency costing $10,000 or
  more or when the procuring agency
  purchased $10,000 worth of the item or  '
  of a functionally equivalent item during
  the preceding fiscal year. EPA believes
  that its interpretation ofthis
  requirement which is described in more
 •detail below, will provide an effective
  program without imposing an
  unreasonable bookkeeping burden on
  the purchasers and users of paper and
  paper products.
  1. Procuring Agencies
   EPA made two changes to 5 250.3 of.
  the final guideline to clarify the
  circumstances in which Section 6002 of
. RCRA applies to procuring agencies.
 First, the statutory definition identifies
  three types of procuring agencies:.(1)
 Federal agencies, (2) State or local
 agencies using appropriated Federal
 funds, and (3) contractors. Federal
 agencies should note that under this .
 definition, the requirements of Section
 6002 apply to them whether or not
 appropriated Federal funds are used for
 procurement of items designated by
 EPA. Section 250.3 has been revised to
 clarify this issue.
  In addition.  § 250.3 has been revised
 to clarify that the requirements of.
 Section 6002 apply to each Federal
 agency as a whole. This point is
 particularly important in determining
whether the $10.000 threshold has been
reached. For example, the General
Services Administration, as a.whole, -
purchases more than $10.000 worth of
paper and paper products during each
   fiscal year. Therefore; the requirements
  • of Section 6002 will apply to all GSA
   procurements of paper and paper
   products, including procurements by
   individual regions and subagencies.
   2. Direct Purchases
    For the purpose of this guideline'.
  purchases made as a result of a
  solicitation by a procuring agency for its
  own general use or that of other
  agencies (for example, GSA purchases)
  are considered "direct" EPA believes
  that a contract for printing is. in part/a
  paper procurement action because the
  type of paper to be used is explicitly
1  stated in the contract. (Labor and
  overhead expenses involved in printing
  would be considered a service.)
  Therefore, a Federal agency that
  provides printing services to other
  governmental agencies would be subject
  to this guideline. The guideline leaves
  the method of calculating the value of
  paper used in performing a printing
  'contract to the discretion of the agency
  awarding that contract. This provides a
  wide latitude. GPO has stated that the
  value of the paper may be as low as 20
  percent or as high as 80 percent of the
  contract The value allocated to the
  paper.used in the performance of the
  printing contract would determine the
  applicability of the.guideline; if that
  value is $10,000 or more, the.guideline
  would apply.

  3. Indirect Purchases
    EPA revised § 250.3(c)(2) (now
  § 250.3(d)(2)) to clarify and conform it to
  Federal grants and contract law. EPA
  has removed the clause excluding
  indirect purchases with funds which are
  not separately accounted for under
  block grants.
   The definition of "procuring agency"
 in RCRA Section 1004(17) .makes it clear
 that the requirements of Section 6002
 apply to "indirect purchases," i.e.,
 purchases by a State or local agency or
 its contractors using appropriated
 Federal funds. Thus, the guideline
 applies to paper and paper products
 purchases meeting the SlO.OOO threshold
 made by States and their localities or
 their contractors, subcontractors,
 grantees, or other persons which are
 funded by grants, loans, or other forms
 of disbursements of monies from Federal
 agencies. However, the guideline does
 not apply to such purchases if they are
 unrelated to or incidental to the Federal
 funding, i.e.. not the directresult 0! the
 grant loan, or funds disbursement. An
 example, of a paper purchase unrelated
 orrincidental to'Federal funding is where
 a contractor.purchases paper under a
grant for construction of a public.works
project The paper purchase would not
  be subject to the requirements in Section
  6002 or this guideline, even though some
  of the grant funds supporting the
  contract might be used to finance the
  purchases.

  4. The $10.000 Threshold

    RCRA Section 6002(a) provides that
  the requirements of Section 6002 apply
  (1) when the purchase price of an item
  exceeds $10,000 or (2) when the quantity
  of such items or of functionally
  equivalent items purchased during the
  preceding fiscal year was $10.000 or
  more. Thus. Section 6002 clearly sets out
  a two-step procedure for determining
  whether the $10,000 threshold has been
  reached. First a procuring agency must
  determine whether it purchased $10,000
  worth of paper and paper products
  during the preceding fiscal year. If so.
  the requirements of Section 6002 apply
  to all procurements of paper and paper
  products occurring in the current fiscal
  year. Second, if a procuring agency did
  not procure $10,000 worth of paper and
  paper products during the preceding
  fiscal year, it is not subject to Section
  6002 unless it makes a $10,000 purchase
  during the current fiscal year. The  '
  requirements of Section 6002 apply to
  the $10,000 purchase: to all subsequent
  purchases of paper and paper products
  made during the current fiscal year.
  regardless of size; and to all
 procurements of paper and paper
 products made in the following fiscal
 year.
   Note that Section 6002(a) does not
 provide that the procurement
 requirements are triggered when the
 quantity of items purchased during the
 current fiscal year is $10,000 or more.
 EPA does not believe that Congress
 intended to require procuring agencies
 to keep a running tally of procurements
 of items designated by EPA. Maintaining
 such a running tally would be very
. burdensome. Rather, procuring agencies
 only need to compute their total
 procurements once at the end of the
 fiscal year and only if they intend to
 claim an exemption from the
 requirements of Section 6002 in the
 following fiscal year.

 5. Functionally Equivalent Items.

  Under RCRA Section 6002(a), the
procurement requirements of Section
6002 apply when purchases during the
preceding fiscal year of a "procurement
item" or "functionally equivalent"
procurement items cost $10,000 or more.
In common usage, terms such as "paper"
and "boxes" include many items
manufactured to meet different
performance standards. They may not.
therefore, technically be "functionally

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           Federal Register / Vol.  53,  No. 120  /Wednesday-.  }une 22;. 1988 /  Rglea  and Regulations     23551
equivalent." (For instance, offset
printing paper should not be used for
high-speed office copier*;} The
variations in grade and types of paper
products are numerous. The }CP has
specifications for over 50 grades of.all
types of paper, 23 for printing alone,
while GSA estimates that it provides
specifications for about 300 paper
products. Because few procuring
• agencies, as defined in the Act. purchase
$10,000 worth of any one grade of paper
or any one paper product, EPA believes
that restricting the applicability of
Section 6002 to purchases based-on a
narrow, technical definition of
functional equivalency would limit the
 effectiveness of the guideline in meeting
 the objectives of RCRA.
   The Agency has concluded that, in the
 case of paper and paper products,
 "functionally equivalent" items should
 be defined as a  category of items having
 the same or substantially similar end
 use. EPA has developed a categorization
 of functionally equivalent items based
 on this concept of similar end use. For
 procuring agencies purchasing many
 grades, the categorization will extend
 the applicability of the guideline beyond
 a technically defined "functional
 equivalency" so that a greater number
 of procurement actions are affected.
    Under § 250.3 of the guideline, each of
 the following groups of items are
 "functionally equivalent":
 —All grades and types of xerographic/
    copy papen
 —Newsprint;
 —All grades and types of printing and
    writing papen
 —Corrugated boxes and fiberboard
    boxes;
  —Folding boxboard and cartons;
  —Stationery, office papers (memo pads.
    scratch pads), envelopes, and
    manifold business forms including
    computer paper;
   —Toilet tissue, paper towels, facial
    tissue, paper napkins, doilies, and
    industrial wipers;
   —Brown papers and coarse'papers.
   C. Requirements vs. Recommendations
    RCRA Section 6002 requires procuring
   agencies and contracting officers to
   perform certain activities, such as
   revising specifications for procurement
   items. It also requires EPA to prepare
   "guidelines for the use of procuring
   agencies in complying with" Section
   8002. EPA has incorporated the Section'
   6002 requirements into the guideline for
   the benefit of  procuring agencies. As a
   result, the guideline contains two types
   of provisions: requirements (mandated
   by Congress in Section 6002) and
   recommendations (EPA's guidance for
   complying with the requirements of
Section 6002),. As used in this guideline,
the verbs "shall" and "must" indicate
Section 6002 requirements, while verbs-
such as "recommend," "should," and
"suggest" indicate recommendations for
complying with those requirements.
  Procuring agencies must comply with
the requirements of Section 6002,  .
whereas EPA's recommendations are
only advisory in nature. Procuring
agencies may choose to use other
approaches which satisfy the Section
6002 requirements. EPA believes,
however, that if a procuring agency
chooses to follow EPA's
recommendations, that agency will be in
compliance with the Section 6002
requirements.
D. Organization of the Revised
Guideline
  Subpart C of 40 CFR Part 250, which
contains EPA's recommendations for
implementing the affirmative
procurement program requirements of
RCRA Section 6002, has been
reorganized, as well as revised, for ease
of use. The revised subpart contains a
separate section for each element of the
affirmative procurement program.

E. Definitions
   Most of the definitions in this
guideline are the same definitions used
 in RCRA and therefore do not require
 further explanation. Other definitions,
 such as "paper,"  incorporate standard
 industry definitions. A few definitions
 are further discussed in this .section of
 the preamble.
 1. "Paperboard".
   One common term used by the
 industry is "paperboard." This term is
 used to describe  thick  paper used in the
 manufacture of products such as tablet
 backs, folding boxes, and corrugated
 boxes. Paperboard is similar in
 composition and form  to paper, but
 generally refers to sheet that is 0.012
 inch thick or thicker. Thus, the term
 "paper," which is used in the Act, is
 construed to include paperboard and
 paperboard products.
 '2. "Practicable".
   Section 6002 requires procuring
 agencies to procure items composed of
 the highest percentage of recovered
 materials practicable and to develop-
 programs to assure that recovered
 materials are purchased to the
 maximum extent practicable (emphasis
 added). Commenters asked EPA to
 define the term "practicable"  as used in
 Section 6002. In response. EPA added a
 definition of "practicable" in the final
 paper guideline. 52 FR 37297 (October 6.
  1987).
  EPA's definition of "practicable"
combines! the dictionary definition with
certain Statutory criteria for determining
practicability. The dictionary definition
of practicable is "capable of being
used," and EPA believes that Congress
intended the term to be defined in this .
way. Congress also provided four
criteria for determining the maximum
amount practicable: (1) Performance in
accordance with applicable
specifications; (2) availability at a
reasonable price; (3) availability within
a reasonable period of time; and (4)
maintenance of a satisfactory level of
competition. EPA's definition .of
"practicable" incorporates these criteria.

3. "Waste Paper".      .          ,  .

  This category includes all
postconsumer recovered materials as
defined in RCRA Section 6002(h)(l), plus
the two preconsumer categories of  •'•
"manufacturing, forest residues, and
other wastes" as defined in Section
6002(h)(2). EPA has determined that mill
broke is specifically excluded from the-
definition of recovered materials
because it is waste generated before
completion of the papermaking process.
The two non-postconsumer categories
are:
  (1) Dry paper and paperboard waste
generated, after completion of the
papermaking process (that is, those
manufacturing operations up to and including
the cutting and trimming of the paper
machine reel into smaller roles or rough
sheets) including envelope cuttings, bindery
trimmings, and other paper and paperboard
waste, resulting from printing, cutting,
forming, and other converting operations;
bag, box, and carton manufacturing wastes:
and butt rblls, mill'wrappers, and rejected
unused stock; and,
  (2) Finished paper and paperboard from
obsolete inventories of paper and paperboard
manufacturers, merchants, wholesalers,
dealers, pirinters. converters, or others.

4. "Mill Broke"
   EPA has determined that the
definition of dry paper and paperboard
waste in "recoverable materials" .
 [Section 6002(h)(2)(A)] specifically
excludes! mill broke, which is any paper
waste generated before completion of
the papermaking process. Mill broke is
commonly returned to the pulping
 process and is composed of whatever
 the pulp is derived from, e.g., wood pulp,
 waste paper, etc. In the final guideline.
 the definition of "mill broke" makes
clear that it Is excluded from the term
 "recovered materials."

 5. "Cotton Fiber"
   Cotton fiber papers are one of thfi
 oldest types of paper hianuiacturpd.

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 23552	FeJMadjgegialer	/	Vol.	S3.-No. 120  /^Wednesday, June 22. 1988 / Rules and Regulations
 These papers are used for flue
 stationary, ledger papers, maps,
 wedding invitations, and the like, and
 thus occupy-a special niche in the
 printing-writing paper category. By
 definition and practice of the paper
 industry, cation fiber papers must .
 contain at least 25 percent cellulose
 fibers derived from lint cotton, cotton
 linters. and cotton or linen cuttings.
 Some cotton fiber content products are
 made of 100 percent cellulose derived
 from recovered cotton sources. Thus,
 EPA has defined cotton fiber content
 papers as paper that contains a
 minimum of 25 percent and up to 100
 percent cellulose fibers derived from lint
 cotton, cotton linters, and cotton or linen
 cloth'cuttings.

 F. Specifications

 1. General
   a. Federal agencies. RCRA Section
 6002(d) contains two requirements for
 revising specifications for procurement
 items. First. Federal agencies that have
 
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           Federal Register /  Vol. 53, No. 120  /  Wednesday, June  22, 1988 / Rules and  Regulations    23553
paper and sawdust and other forest
residues. For instance, the Railway
Association is currently considering a
performance test change that would
effectively allow more use of recovered
materials in fiber (corrugated) boxes. In
recent years, the process of
manufacturing newsprint with nearly
100 percent postconsumer recovered
materials has become common. In
§ 250.14 of the guideline, EPA
recommends that procuring agencies
monitor new developments and use
them to increase the use of
postconsumer and other recovered
materials.

G. Affirmative Procurement Program
  Section 8002(i) of RCRA requires
procuring agencies to adopt an
affirmative procurement program to
ensure that paper and paper products
containing recovered materials are
purchased to  the maximum extent
practicable. As discussed previously,
RCRA Section 6002(h) provides that
"postconsumer recovered materials" are
a specific subset of "recovered
materials." The definition of
"postconsumer recovered materials"
includes paper, paperboard, and fibrous
wastes that have passed through their
end usage as  a consumer item or that
enter and are collected from, municipal
solid waste. "Recovered materials" is a
broader term, including postconsumer
recovered materials as well as such
widely-used waste as manufacturing-
wastes, forest residue, and other wastes.
Because the intent of this guideline is to
reduce the municipal solid waste
stream, the focus of this guideline is
postconsumer recovered materials.
  The affirmative procurement program
must contain  four elements: (1) A
recovered materials preference program;
(2) a promotion program; (3) procedures
for estimation, certification, and
verification; and (4) procedures for
annual review and monitoring of the
program's effectiveness, the  following
sections explain EPA's
recommendations for each element of
the affirmative procurement program.
1. Recovered  Materials Preference
Program
   The first of the four requirements of
the affirmative procurement program is
a recovered materials preference
program to maximize the use of
recovered materials. The procuring
agency may implement the preference
program by employing a case-by-case
approach, by adopting minimum content
standards, or by choosing an approach
that is substantially equivalent to the
preceding approaches. In the final paper
guideline, EPA recommended use of any
of these approaches. Because of
comments submitted in response to the
original proposed paper guideline, EPA
concluded that minimum content
standards would comply with the
statutory requirements but that the other
approaches might not necessarily, 52 FR
37299 (October 8,1987). Accordingly,
EPA proposed to amend the final paper
guideline to recommend minimum
content standards as guidance to
procuring agencies, 52 FR 37335-41
{October 6,1987).
  As discussed in the final paper
guideline, 52 FR 37298-37299 (October 6,
1987), Section 8002(i) also requires that
any affirmative procurement program be
consistent with applicable provisions of
Federal procurement law. From time to
time. Congress has established
preferential procurement programs in
order to attain socioeconomic goals.
Among those are the Small Business,
Labor Surplus Area, and Minority
Business procurement programs. EPA
considered applying either or both of the
mechanisms used in those programs—
price preferences and set-asides—to this
guideline. A price preference allows the
procuring.agency to pay a higher price, if
necessary, for a specified product from
preferred vendors. A set-aside requires
the procuring agency to award a certain
percentage of its contracts to preferred
vendors of a product regardless of price.
Price preferences and set-asides are
currently being used in some state  •
programs for the procurement of paper
and paper products containing
recovered materials. As of January  1988,
five states and two cities use price
preference programs in which products
containing recovered materials may cost
from 5 to 10 percent more than virgin
materials. Two states have set-aside
programs, one for paper and paper
products, the other for all types  of
products. These states report that they
successfully procure products containing
recovered materials.
  EPA has considered- recommending
these programs at the Federal level'
However, in the case of existing Federal
preferential procurement programs  that
allow a price preference or set-aside, the
Agency found that each had been
established under explicit statutory
authority or a specific Executive Order.
Neither the statutory language nor the
legislative history of Section 6002 seems-
to contemplate the adoption of either
price preferences or set-asides, and
doing so would conflict with existing
Federal procurement regulations.
  a. Case-by-case approach. As
explained in the preamble to the final
paper guideline. EPA concluded thai it
would be rare that equivalent bids
 would be submitted for virgin paper and
 paper products and for paper and paper
 products containing recovered
 materials. Thus, a procuring agency
 could not award the procurement to the
 vendor offering the product with the
 highest recovered materials content
 unless it was the low bid, 52 FR 37299
 (October 6.1987). EPA concluded
 therefore that wide use of the case-by-
 base approach or a substantially
 equivalent alternative might not result in
 much procurement of paper and paper
 products containing recovered
 materials.
  After careful consideration of the
 legal limitations of the case-by-case
 approach (or a substantially equivalent
 alternative) as well as the likely impact
 of such an approach on procurement
 practices, EPA has determined that
 procuring agencies which elect to use
 the recommended minimum content
 standards will be in compliance with the
 statutory requirement for a recovered
 materials preference program assuring
 procurement of items composed of
 recovered materials to the maximum
 extent practicable. Consequently, EPA is
 withdrawing its recommendation of the
 case-by-case approach or a
 substantially equivalent alternative for
 procurement of paper and paper
 products. Instead, EPA recommends that
 procuring agencies adopt minimum
 content standards.
  b. Minimum content standards. EPA
 proposed minimum content standards
 for 21 categories of selected paper and
 paper products, 52 FR 37341 (October 6,
 1987). EPA today is adopting those
 standards as its recommendations with
 the changes indicated below, as we', as
 adding one new category, cotton fiber
 papers.
  For most grades of paper and paper
 products, EPA.is recommending
 minimum postconsumer recovered
 materials content standards. In the case
 of printing/writing grades, EPA is
 recommending minimum "waste paper"
 content standards. As explained above,
 in the case of cotton fiber papers, EPA is
 recommending a minimum "recovered
 materials" standard. EPA also has
 added definitions of "waste paper"  and
 "cotton fiber".
  (1) Legal considerations. RCRA
 Section 6002(i)(l) requires  that
 affirmative procurement programs be
 "consistent with applicable Federal
procurement law." EPA was concerned
 that minimum content standards might
violate the Competition in Contracting
Act of 1984 (CICA) (10 USC Chapter 137)
and'the Federal Acquisition Rns'jlation
(FAR) (48 CFR Ch. 1). Both provide that
specifications restricting what <.;m he

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 235-a    Federal Register / Vol. 53. No.  120 / Wednesday. June 22. 1968 / Rules and Regulations
 olfcrcd by bidders are legally
 permissible only to the extent lhat they
 relict.! ihe Government's minimum
 iii-cds or are authorized  by law. (CICA
 27n(n)(1). 48 CFR 10.002(a](3)(ii).] EPA
 h i« concluded that RCRA Section 6002
 jmtviru'.s Ihe necessary authorization,
 SCP 52 PR 38844 (October 10.1987).
 S««« tion 6002(i)(3)(B) expressly permits
 Hf.onr.ies to establish specifications
 v.hich restrict bids to those which meet
 u rp.inimum content standard. Therefore,
 minimum content standards are not in
 violation of general Federal procurement
 l.iw
  CICA requires agencies to use full and
 open competitive procedures when
 procuring property and services. The
 terra "full and open competition" means
 111.it all responsible sources must be
 pc: muted to submit a bid. In the case of
 ii procurement against a  restrictive
 t-pocificulion. such as a minimum
 content standard, "full and open
 competition" means that all responsible
 sources who can meet the specification
 can bid. The preference program
 recommendation in the revised final
 guideline is consistent with this
 requirement, since any vendor of paper
 find paper products can submit a bid as
 lonp as the product offered contains the
 minimum recovered content.
  (2} Methods for establishing minimum
 commit standards. RCRA provides four
 criteria for establishing a minimum
 content standard. Section 6002(i){3J(B)
 provides lhat  the minimum content
 required by a  specification must be Ihe
 maximum available without
 juupurdizing the intended end use of the
 item or violating the limitations of
 Section 6002{c)(l)(AHC). Thus, the four
 criteria are (1) the intended end use of
 Ihe ilem. (2) availability.  (3) technical
 performance, and (4) price.
  Under the minimum content standards
 approach, procuring agencies establish
 specific recovered materials percentages
 in their specifications. Today EPA is
 recommending specific standards for
 procuring agencies to use. Procuring
 agencies may adopt other standards as
 long .'is the statutory requirements are
 me'.,
  (;t) Basis of recommended minimum
content standards. Beginning in 1971. the
U.S. General Services Administration
(GSA) established minimum content
standards for several  types of paper and
piiper products. The GSA specifications
established minimum levels for
"reclaimed material" content and for
"poatconaumer waste" content which
was a sub-set  of "reclaimed material."
In other words, a two-tiered approach
was t»ed.The "reclaimed material" and
"pof (consumer watte" categories
correspond to the terms "recovered
 materials" and "postconsumer
 recovered materials," respectively, as
 used in this guideline.
   EPA received comments on its earlier
 proposed paper guideline that very few
 manufacturers of printing/writing
 papers would be willing or able to meet
 a minimum content standard for
 postconsumer recovered materials, 52
 FR 37297 (October 6,1987). Thus an
 alternative was  sought for this category.
   The source of recovered materials that
 are commonly used in printing/writing
 papers differs from the source of
 recovered materials used in other
 grades. Pulp substitute is a
 manufacturing waste, virtually all of
 which is derived from businesses that
 convert paper stock into finished
 products such as books or envelopes.
 Pulp -substitute, as the name suggests.
 can be used instead of virgin pulp. The
 quantity of postconsumer recovered
 materials in pulp substitute is
 essentially zero. "High grade deinking"
 is printing scrap, which can include
 items such as misprinted forms that
 never reach the ultimate user. The high
 grade drinking category also includes a
 significant amount of poslconsumer
 recovered materials, such as officer
 waste paper. However, the paper mill
 does not always know whether the
 material is preconsumer or
 postconsumer because both types of
 material may be  contained in the same
 bales. Tissue products use most-of the,
 postconsumer recovered materials
 consumed in the  high grade deinking
 category while printing/writing paper
 producers use much less: many
 manufacturers of printing/writing
 papers avoid postconsumer recovered
 materials altogether. In other words,
 manufacturers of printing/writing
 papers tend to use preconsumer waste
 paper {manyfcicturing by-products such
 as pulp substitutes), whereas
 manufacturers of tissue papers do use
 postconsumer waste. Tissue products do
 not have to meet the demands that
 printing and writing papers do. The
 contrast between the strength and color
 requirements for institutional paper
 towels and offset paper running through
 a High-speed press illustrates this
 difference.
  EPA contacted virtually every mill
 known to make printing/writing papers
using recovered materials. Almost
 universally they stated that they
 preferred not to deal with postconsumer
 recovered materials under a minimum
 content standard. Some of the reasons
 cited were:
  • Postconsnmer recovered materials
 are not as predictable in fiber
composition wr content «s other types, so
 it is difficult to assure that specifications
 can be met.
   • A mill essentially needs deinking
 capability to use postconsumer
 recovered materials (whereas pulp
 substitutes  are not normally cleaned in
 deinking systems).
   • Contaminants cannot be controlled
 as well, and "off spec" products are
 much more  likely to be produced using
 postconsumer recovered materials.
   • Only a  few mills handle
 postconsumer recovered materials
 successfully enough to  overcome these
 problems consistently.
   For these reasons, EPA found that it is
 not advisable to recommend minimum
 postconsumer recovered materials
 content standards for printing/ writing
 grades. EPA is, therefore, recommending
 a category of recovered materials called
 "waste paper" for the printing and
 writing paper grades only.
   EPA has concluded that increasing the
 use of waste paper in the manufacturing
 of printing and writing papers will in
 fact allow maximum use of
 postconsumer recovered materials in
 those  products while it  increases the use
 of postconsumer recovered materials in
 others, thereby satisfying the intent of
 RCRA. As more preconsumer waste
 paper is  used for printing and writing
 papers, there will be less available as a
 raw material for other products. As a
 result, manufacturers will have to use
 more postconsumer recovered materials
 as a raw material Therefore, for printing
 and writing  papers. EPA is
 recommending a minimum waste paper
 content
  A document entitled Background
 Documentation for Minimum Content
 Standards has been placed in the docket
 and explains the basis for EPA's
 recommended minimum content
 standards. It identifies mills producing
 newsprint or printing/writing papers
 with postconsumer or waste paper
 recovered content, respectively, at the
 time of the preparation of the document.
 The percentages of both types of
 recovered materials content in product
 also have been identified.
  Several commenters recommended
 that EPA adopt the original GSA
 standards as minimum content
 standards. EPA used these standards as
 a reasonable starting place for
 establishing  recommended minimum
 content standards. However, because of
 the successful experience by several
 States  in procuring printing and writing
 paper with recovered materials, EPA
 proposed a minimum of  50 percent
 waste paper content.
  Commenters from the  papsr industry
objected to the-proposed mrnimuim

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           Federal Register  /  VoL S3. No. 120  / Wednesday.  June 22. 1988 / Rules and Regulations    23S55
content standards for printing and
writing paper on the basis that the£ are
too high to be practical and that
procuring agencies will be unable to
obtain adequate competition for all
grades at a minimum content of 50
percent Waste paper. Procuring agencies
supported the minimum content
standard proposed, but some stated that
they have difficulty in purchase of
printing/writing papers in some
Instances. None of the commenters
objecting to the proposed minimum
content standards provided data
supporting their position, nor did any
other commenter provide data from
which EPA could conclude that the
objections were correct. There might be
short-term availability problems for
particular types or grades of paper and
paper products, but EPA was unable to
determine whether and at what levels
unavailability problems would  occur.
Therefore, although EPA considered
these comments, the Agency concluded
that there was no basis on which to
reduce the recommended minimum
content. The revised final guideline
issued today recommends the 50 percent
minimum content standard.
   EPA notes that procuring agencies are
not required to buy paper and paper
products if the procuring agency
determines that ihe product is not
reasonably available, there is
unsatisfactory competition, or the
product is only available at an
unreasonable price. These issues are
discussed further in Section V of the
preamble.
   In two categories, EPA proposed no
minimum content standards because it
believed that there was not sufficient
production of these papers with
recovered material content to assure a
satisfactory level of competition; they
 are high-speed copier paper and form
 bond. inc!u".ing computer paper and
 carboriifl.ss. EPA has determined, in the
 minimum content standards adopted
here today, not to recommend standards
for these categories for the reasons
previously indicated. Nonetheless, these
categories of paper are subject to the
requirements of Section 6002. Procuring
agencies must promote their preferernce
program for these items. As these items
become available at a reasonable price
with satisfactory competition, procuring
agencies should establish minimum
content standards for them. In addition,
as the economic situation changes. EPA
will consider revising this guideline to
recommend minimum content standards
for these items.
  Manufacturers of corrugated boxes
objected to the proposed minimum
content standard of 40 percent as being
too high. They provided an explanation
and rationale for their position, but did
not provide an alternative minimum
content standard. After a closer
examination of the industry structure
and practices and historical data, EPA
concurs and has reduced thia category  ,
to 35 percent postconsumer recovered
materials. A more detailed basis for this
change can ba found in the docket for
this rulemaking. However,-EPA notes
that  the 35 percent minimum content
standard will still require that
corrugated boxes contain both recycled
corrugating medium and linerboard with
postconsumer recovered materials to
assure that the minimum content
standard is met. Alternately, this
standard could be met with only 100
percent recycled linerboard as well. A
fuller explanation and analysis has been
placed in the docket for this rulemaking.
   At the same time. EPA reviewed the
proposed minimum content standard for
solid fiber boxes and determined that it
should be raised from 5 percent to 35
percent. The basis for this change is that
the medium or filler between the two
 liners is made of chipboard, which is a
 recycled paperboard. and thus consists
 of postconsumer recovered materials.
 EPA notes that this product has largely
- disappeared from commercial use, but is
 still produced in small quantities.
   A commenter noted that there should
 be a minimum content standard for
 cotton fiber content papers because this
 grade contains recovered materials as
 defined by RCRA Section 6002. EPA
 concurs and has added both a definition
 and a minimum content standard of 25
 percent recovered materials.2 This
 product category, also commonly known
 as "rag paper," must contain cotton
 fibers to qualify by definition as that
 product. This type of recovered material
 does not fall under the postconsumer or
 waste paper definitions. Rather, it falls •
 undeir the recovered materials definition
 under Section 6002(h)(2)(D}:
 manufacturing, fores! residues, and other
 wastes such as ... (0) wastes generated by
 the conversion of goods made-from fibrous
 material {e.g., rope waste from cordage
 manufacture, textile mill wastes, and
 cuttings).

   It has been suggested to EPA that a
 minimum waste paper content standard
 should be established for cotton fiber
 content papers. EPA notes that such a
 standard might be confusing because the
 commercial definition of cotton fiber
 content paper refers to its cotton
 celhiilosic content only.  In addition, to
 the Ixist of EPA's knowledge, use of
 waste paper in the production of cotton
 fiber content paper seems to be
 incidental at best. For these reasons,
 EPA did not adopt a waste paper
 content standard for cotton fiber paper.
   EPA's recommended minimum
 content standards are shown in Table t.
 Note that EPA has added a column to
 Tabte 1 to address recovered materials
 content in cotton fiber content papers.
  1 The commenter suggested a minimum content
 standard of 25 percent recovered materials for EPA
 to recommend. After researching industry praclices.
 EPA concluded that a 25 percent standard is
 reasonable. Data documenting this concision has
 been placed in the docket for this ruipmaking.
              TABLE 1.—EPA Recommended Minimum Content Standards of Selected Papers and Paper Products
	 . 	 . 	 . 	 _ 	 	

.
•
'

Newspnnt •• - - 	 - 	 - 	 - 	 	 	
High grade bleached printing and writing oapers:







Book papers 	 .7. 	 .' ....7. 	 	 	 	 • 	 — •.— 	 - 	 —

Wirimum
percentage
materials




	
	
	
	
—

—
Minimum
percentage
of
postcon-
sumer
reccveied
materials
. .. 	 -^
• 40


—
_
	
	
_
	
—


percentage
Of W3S&3
paper *

^


50
50
SO
2
50
•
50

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  23556 ......... Federal Regjrter ....... / .......... Vol. ......... 53. No. 120 / 'Wednesday. June 22.1988  /.Rules and . Regulations „ •
          TABLE 1.— EPA Recommended Minimum Content Standards of Selected Papers and Paper Products—Continued



- --
Bond papers. .. _„ 	 	 	 	 _
Ledger
CoVef 8tOClL__ _.._.. 	 .. 	 " 	 " 	
Conon fiber papers 	 	 	 	 „ •
TIMOO products '
Toilet teuue »™™_..___™...
Piper towtis • , 	 	
Papa» naptifi?.,;.... 	 	 ,... 	 M11 , 	 "" 	 	
Facial tiaiii»Mrlll,,n,.,,.,,,,,,,-....'. 	 	 	 '..'. 	 :, 	 ....-, - • ' 	 •
DOM**,.,, 	 T 	 ,...,.„„.„„ 	 .,;.„.,. , , •
lndu«rl«l ttlptre 	 „ , . • •
UnWeacfted packaging: . - . .',... 	 ".'
Corrugated lx>xti —....-.,.., 	 	 ,,' ', . ..7........!..'. . , ••-•••,.
RharhOMfl., .,,.„ 	 .; 	 	 	 :....r... ,,....,,, > - ' " ' •• •-
Brawn p*fxv» {^,g , bejs).,.,.., 	 	 	 .'.r..'..-..^... 	 .' 	 ,';,.„, '
RecyoJsd piptrbotnt" ~ • ^ ., 	
ReeycJad ptperbotrrj proriudi InckKSng folding cartorcC...:_: — 	 _ 	 	 ' 	 	
Pad ha^tinj 	 	 I,- u, ...___. '_ ' ' „ ' '~7I_ -•>'••

Minimum
percentage
of
recovered
materials


— "

25

"""
—

~~
—


""**

__
—
Minimum
percentage
of
postcon-
aumer
recovered
materials

~-
. . ~
—
•

40
30

40
0
35
35
• 5
60
. 90

Minimum
percentage
of waste
paper'


. 50
50
50


—
—
—
• —
—
, ' "" ~°

—
—

—
      --—— ™ r *•* « -— *•«••»*»»• HI wwv%n> K.W>-T VHIW > wiviw «* vfwiirvu |rvevu%nxnjnirwj «RIU WU n3H (WATVO1W HlOWII
     * EPA round irwrfficwnt production of thesa papers wtthrecycted content to assure adequate competition.
   Finally, EPA has concluded that while
  in theory, higher minimum content
  standards could be established, in
  actuality, such higher standards could  ';
  result in no procurement due to lack of -,
  satisfactory competition, unreasonable '
  prices, or unreasonahla availability.  ', •'
  Therefore, the recommended minimum ~ •
  content standards were sat at levels at   '-
  which EPA felt there was a reasonable •' •
  assurance of adequate procurement.'    '
   (4) Archival papers. Organizations .
  involved  in book and document •- -.
  preservation expressed concern about •
  EPA's proposed minimum content  .. "
  standards. Although they were generally
  In favor of using recycled paper
  products, they felt its use for books,
  government publications, and
  documents scheduled for permanent
  retention should not be allowed. Some   *
  cited ah ANSI standard issued in 1984
  that deals with an alkaline paper to
  slow deterioration of paper. Several,
 enclosed  a rationale on the subject and
  the ANSI Z39.48-1S84 standard EPA
 was asked to set up a category to.
 promote the use of alkaline paper for all
 books, publications, and documents of
 enduring  interest, or at the least to set
 up « separate category, and to reduce or
• delete minimum percentages of waste
 paper for all the printing/writing papers
 except envelopes.
   After researching this Issue, Ef>A has
 determined that both virgin papers and
 recycled papers can be acidic or
 alkaline, depending on the
 manufacturing process used. While it is
  tnia that the deinklng and bleaching
 processes used to make paper    '
 containing1 recovered materials are
 acidic, EPA .has determined that there
 are manufacturers of recycled paper that
 produce archival papers. Evidence has
 been submitted to EPA and added to the
 docket for this rulemaking that there are
 'at lefast seven, companies manufacturing .
               "
                ", twoaro  .     .:.
..manufatiturers *>f paper containing ;
•- : EPA notes that those concerned over
'• the permanence of paper should refer to
 § 250.13 of the guideline, "Exclusion of
• products containing recovered materials
• that do1 not meet reasonable
 performance standards." If a procuring
 agency determines that papers
 containing postconsumer recovered
 materials do not meet reasonable
 performance standards for archival
 papers, then the agency can add an
 exclusion of these papers to its .
 specifications; the agency must
 document the basis for this exclusion.  .
 however.- Further, EPA encourages the
 development of technical performance
 specifications by the user agencies, e.g..
 GPO, GSA, JCP, that require
 permanence as long as they do not
 specifically exclude the use of recycled
 paper.               -     -

'2. Promotion Program •'
   The second requirement of.the
 affirmative procurement program is an
 effort by procuring agencies to promote
 procurement .of paper and paper
 products containing recovered
 materials. EPA recommends several
 methods for.procuring agencies to
 consider for disseminating information •
 about their preference program, such as
 placing notations in solicitations for bids
 and conducting discussions about the
 program at bidders' conferences and  '
 meetings. EPA also recommends that
 agencies such as GSA that procure
 paper and paper products for use by
.other agencies consider noting in their
 catalogs those^papers or paper products
 •that contain recovered materials.    .
  A commenter on the proposed
 lubricating oils procurement guideline
 recommended use of journals to promote
 the preference program. EPA is     -
 recommending in the final lubricating
 oils guideline that agencies issue press
 releases to recycling industry journals.
 This recommendation is also relevant to
 promotion of the paper and paper
products preference program and is
 being added to § 250.22 today.

 3. Estimation, Certification, and
 Verification

  The third requirement of the
affirmative procurement program set
forth in Section 6002(i) concerns
estimates, certification, and verification
of recovered material content in
procurements. Estimates and
certifications of content in an item are
most easily expressed as a percentage
of total content and can range from 0
percent to 100 percent depending on the
type of product or the feedstocks used in
manufacturing the item. Many issues
have been raised about these
requirements, such as when the
information should be provided, who is
to provide it how it is to be obtained.
and how it is to be verified. To clarify

-------
Federal Reflate^/ Vofc 53. Mg.
            Wednesday frae
                                                                                             Regufetiqay:    2355F
this subject it is necessary to review ther
requirements of the statute
  a. Estimation. RCRA Section
6002(c)(3MB) and Section eaOZtipHC)
require taat, after the effective date of a
guideline, contracting afBews>must
require vendors, who supply Federal
procuring agencies with products
covered by the guideline to provide an
estimate of the total percentage of the
•recovered materials utilized in the
performance of the contract.
  EPA believes that this requirement is
for the purpose of gathering statistical
information on price, quantity.
availability, and performance of
products made from recovered
materials. EPA further believes that this
requirement applies regardless of
whether the procurement solicitation
specifies that recovered materials can or
must be used. Estimates may differ from
the minimum recovered materials
content specified in certifications, the
estimates will provide up-to-date
information for the annual review which
is required of procuring agencies.
  EPA has decided to .recommend a
limitfop retaining these estimates, fa .
other praeuzemeBt guidelines,: EPA has
recommended that.thesstnnatea be
retanjed.for three, years. Therefore, in   :
the revised final guideline, today, EPA is
recommending that procuring agencies
retain these data for three years fey type
of prothict. quantity purchased, and.
price paid.
  b. Certification. The uae of
certifications is common in government
procurement. A certification is written
assurance that goods or services
delivered will fulfil! the contractual
requirements. Failure to meet conditions
which have bee» certified can result in  "
penalties to a vendor. RCRA Section
6002(c)(3)(A) requires that after the
effective date of this guideline, vendors
must "certify that the percentage of
postconsumer recovered materials to be '
used in the performance of the contract
will be at least the amount required by
applicable specification! or other-
contractual requirements;.'"  IB other
words, vendors must certify that a   .
minimum percentage of recovered
material wiil be contained in products to •
be supplied. RCRA Section 6002(i}{2){C}
requires "certification of minimum post-
consumer recovered material content
actually utilized. . .".
  Together, these sections could be
interpreted- to mean that multiple  .
certifications will be required: one when
bids are offered, and another with each
shipment EPA is concerned that this
interpretation could create unnecessary
burdens for vendors and procuring
agencies, and thus work against the •
intent of Section 6002. States which
 purchase-paper and-paper products witk
 recovered material content have found
 one certification sufficient As an
 example. New York State requires
 certification of the-content from vendors
 within six days of a bid opening. -
 Vendors commonly discuss product
 specifications and availability with
 manufacturers prior to submitting a bid.
 so information for certification can be
 obtained at that time. A vendor can •  .
 easily certify to a minimum of 0 percent
 if it does not wish post-consumer
 recovered, material (and in the case of
 printing/writing paper, waste paper)
 content to be a factor in its bids. The
 certification then becomes part of the
 contract awarded to the successful
 vendor. EPA has concluded that one
 certification will fulfill both statutory
 requirements and. by using it in all
 instances, procuring agencies can adapt..
 their purchasing programs most easily.
   In the final guideline, 52 FR 37300
 (October's,1937J, EPA recomnrended
 that procuring agencies require
 certifications as a condition of.a
 responsive bid when bids are offered. * -
 Also, as previously indicated, the1
 successful vendor must estimate, the
 actual recovered materials content in
 products that are supplied The estimate •-
 may or may not bedifferent than the
 minimum percentage that is certified.
  EPA understands that fo?  both
 estimation and certification; the vendor
 will not have direct knowledge of
 recovered materials content Only the
 mill that produces the paper will have
 that information. However, there is no
 direct authority in RGRA Section 60QZ
 for the Federal government to require -  -
 this information from anyone but the
 vendor. Therefore, the vendor must
 make its own arrangements  for
 obtaining this Information from the mill
 operator. The legislative history
 suggests the approach intended, as
 shown by the following excerpt from the
 Conference Committee Report on the
 Hazardous and Solid Waste '
 Amendments of 1984:                 •
  In obtaining certification of the percentage
 of postconsumer materials and Ice
 percentage of manufacturing forest residues
 and other wastes, it is the intent of Section
600Z as amended by this Act that vendors
supply the procuring agency with a statement
from the mill indicating the percentages used
by the mill in producing the paper and their
sources of raw material. (H.R. Rep. No. 98-
 1133, 98th Cong. 2nd Sess, 121 (1934)
 [emphasis added).
  c. Verification* Procuring agencies  •
also are required to establish    .  ...
 "reasonable verification procedures for  >-.
estimates and certificationa." [RCRA-   •
Section 6002(iK2](C)J If these
verification procedures includf ateess
                                                                    to mill opwators* reowds. then the
                                                                    procuring agency mist use some
                                                                    authority athe* than RCRA to inspect
                                                                    these rees rda or mast require vendosa to
                                                                    have an agreement with the raift
                                                                    operator to suppy such inforraatioa or
                                                                    access to the procuring agency.
                                                                     In geneiai paper manufacturers
                                                                    maintain records of the feedstocks used
                                                                    in each "rwa" or "Jot" of paper for their
                                                                    own internal quality and specification
                                                                    controls. The optimum mix of recovered-..
                                                                 '   and virgin fiber often remains the same
                                                                    for each grade of paper, though
                                                                    variations may occur in individual runs.
                                                                     In most eases manufacturers will be
                                                                    able to provide a certification to vendors
                                                                    as to the specific fiber content of the
                                                                    product shipped to a customer. It is nor
                                                                    intended that the guideline require any
                                                                    additional records to be kept by the • .
                                                                    mills: the records normally kept should
                                                                    be complete enough to estimate or •"
                                                                    certify to recovered materials content
                                                                    accurately.  However, to simplify the-.
                                                                    verification procedure and
                                                                   accommodate variations dictated by
                                                                   quality control and supply, the averagd
                                                                   amount of recovered materials used in' ~~
                                                                   each speciiSc-prodnct over a one-month' •
                                                                   period may be used; if necessary, to
                                                                   meet the reqairemenf for verification of
                                                                   estimates. IShice mills commonly keep
                                                                   accounting and record summaries on a  '
                                                                   monthly ba;sig,EPA recommends that;
                                                                   the one-month figures be used for
                                                                   estimates of fiber percentages. Should it
                                                                   be necessary to verify the exact content
                                                                   of a specific lot or run of paper, the mijl
                                                                   records for that lot or run can then be
                                                                   consulted.
                                                                     However, if the vendor knows that the
                                                                   recovered materials content of paper or
                                                                   paper products supplied to procuring
                                                                   agencies differs from the monthly
                                                                   average, then the average cannot be
                                                                   used For example; if the monthly
                                                                   average is 30 percent postconsumer
                                                                   recovered materials content but the  •
                                                                   paper or paper product supplied
                                                                   contains-no  postconsumer recovered
                                                                   materials oir conversely contains  60
                                                                   percent recovered content, then the •' •
                                                                   vendor cannot use the monthly average;
                                                                   Use of the average in such instances will
                                                                   be viewed as an attempt to circumvent
                                                                   the requirements of RCRA in supplying
                                                                   paper or paper products to the procuring
                                                                   agency.
                                                                     Monthly averages-cannoi be used for
                                                                 'certification. Every shipment may not  •
                                                                   contain recovered materials content
                                                                   equal to or {greater than the average.
                                                                   However, tlie minimum percentage of
                                                                   recovered materials used in-recycled
                                                                   paper products- by the mill can he
                                                                   determined from monthly record.; for
                                                                   certification  purposes. . .

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23558     Federal Register  /  Vol. 53.  No. 120  /  Wednesday. June  22. 1988 / Rules and Regulations
  In the preamble to the final gnideline.
EPA indicated that it had received
comments indicating that in the case of
the printing and writing grades, mills
sometimes cannot distinguish'
postconsumer recovered materials from
other recovered materials.           • '
Consequently, it would be difficult to
comply with the estimation and
certification requirement to identify
postconsumer recovered material
content. In most cases, however, mills
have detailed knowledge of their raw
materials. While postconsumer
recovered materials content of every  „
bale of waste paper may not be known
to a certainty, mills can make
reasonable estimates based on their
extensive knowledge of their raw
materials. In the revised guideline
issued today. EPA has adopted "waste
paper" content standards to resolve any
inherent fiber identification problems
with the printing and writing grades of
paper.
4. Annual Review and Monitoring
  The fourth requirement of the
affirmative procurement program is an
annual review and monitoring of the
effectiveness of the program. EPA
explained these requirements in full in
the final paper guideline, 52 FR 37301
(October b. 1987). The review should
include ah estimate of the quantity of
paper and paper products containing
recovered materials purchased during
the year.
  EPA believes that procuring agencies
should review the range of estimates
and certifications of recovered materials
content provided by vendors during the
year. Significant and repeated variations
between the minimum content
standards, certifications, and estimates
would signal that changes in specific
minimum content standards may be
warranted. EPA further believes that
information provided by the estimation
requirement will be particularly helpful
to procuring agencies when they review
their compliance with the requirement to
purchase paper and paper products with
the highest percentage of recovered
materials practicable.              ,  •
  Similarly, if information from   • •
estimates received or other data reveal
that sufficient bids-would have-been
submitted in response  to standards  '
using higher minimum  content levels.
then the procuring agencies should
consider revising their standards
accordingly. If there was a lack of
competition, the procuring agencies
should determine Whether the standards
must be lowered. This would satisfy the
statutory requirements for procuring
agencies in RCRA Section 6002(c)(l) and
those specific to the minimum content "
standards approach in RCRA Section
6002(iJ(3)(B).
  In the proposed amendments to the
paper and paper products procurement
guideline. EPA recommended that
procuring.agencies compile statistical
records of paper and paper products
procurements. EPA identified six
categories of data, recommended that a
summary of the data be included in the
procuring agency's annual review, and
recommended that procuring agencies
send a report discussing the findings,
made during the annual review to the
Office of Federal Procurement Policy
(OFPP) for inclusion in OFPP's biennial
report io Congress. EPA is including this
recommendation in the final guideline
today, with one exception.
  OFPP has informed EPA that it does
not have the technical expertise to
review the data. For this reason, EPA is
no longer recommending that procuring
agencies send a report discussing their
findings to OFPP. EPA continues to
believe that this information will be
useful to the public, however. EPA notes
that this guideline will apply to State
and local procuring agencies and
contractors, as explained under
"Applicability". Information drawn from
the experience .of Federal procuring
agencies about purchases of paper and
paper products containing recovered
materials would therefore be useful to
State and local purchasing officials  and
contractors. Accordingly, EPA
.encourages Federal procuring agencies
to make their reports available to the
public.
  EPA has concluded that one purpose
of the requirement that vendors estimate
the total percentage of recovered
materials is to provide information to
procuring agencies that can be used in
future procurements. Farther, procuring
agencies need to keep up-to-date on
changes in recycling practices and
availability of products containing
recovered materials. EPA believes that'
unless a procuring agency compiles such
data, it will not be fulfilling its statutory
obligations.
  For these reasons. EPA believes that
agencies should keep statistical records
of paper and paper products
procurements to properly implement the
intent of Congress in requiring an-
affirmative procurement program. A
summary of these records should be
included in the annual review and  '  ,
monitoring of the effectiveness of the
program.
 • Note that for printing/writing papers.
the data gathered will pertain to .
information on waste paper content
instead of information on postconsumer
recovered materials, and for cotton fiber
papers, the data will pertain to
recovered materials content. For all
other categories of paper and paper
products, postconsumer recovered
materials content should be used.
  A program for gathering statistics
need not be elaborate to be effective.
However, agencies should monitor their
procurements to compile data on the
following:
  (a) The percentage of recovered
materials in the products procured or
offered:
  (b) Comparative price information on
competitive procurements;
  (c) The quantity of each item procured
over a fiscal yean
  (d) The availability of the paper and
paper products to procuring agencies;
  (e) Type of performance tests
conducted, together with the categories
of paper and paper products containing
recovered materials that failed tests, the
percentage of total virgin products and
products containing recovered
materials, respectively, that failed each
test, and the nature of the failure:
.  (fj Agency experience with the
performance of the procured products.
  •The Government Printing Office has
informed EPA .that every shipment of
paper or paper products is tested.
Because .of the number of shipments
received (shipments are received on a
daily basis, with multiple shipments
often being received on any given day),
it would be a  burden for procuring
agencies to retain  the results of each of
these tests. Instead, procuring agencies
should identify the performance tests
used and maintain records, by test, on
the percentage of failures by paper and
paper products containing recovered
materials and on the nature of these
failures.,
  EPA recommends that each procuring
agency prepare a report on its annual
review and monitoring of the
effectiveness  of its procurement
program. As part of the report, agencies
using the case-by-case approach or a
substantially equivalent alternative
should demonstrate that their preference
program results in procurement of paper
and paper, products containing
recovered materials to the maximum
extent praticable. Agencies using the
minimum content standards approach
should determine whether their
minimum content standards should be
raised, lowered, or remain constant for
each item. The basis for these
determinations should be a review of
the data compiled on recovered
materials content.' price, availability,
and performance,  as well as a
comparison of estimates and
certifications  provided by the vendors.

-------
           Federal Register / Vol. 53. No.  120 / Wednesday. June  22.  1988 / Rules and Regulations    23559
Agencies should also document
specification revisions made during the
reporting period.,
  The revised final guideline issued
today incorporates the recordkeeping
recommendations. In § 250.23. paragraph
(d) identifies the six categories of
records. In § 2S0.24, paragraph (c)
recommends  that  the annual review
include a summary of the data compiled
in each category and that the results of
the annual review be made avilable to
the public.
   A commenter stated that the
recordkeeping provisions should be
requirements rather than
recommendations. The commenter
argues that EPA has full authority to
make the recordkeeping provisions
requirements and that the statutory
basis is as firm as the basis for stating in
5 250.23 that  contracting officers must
require vendors to submit estimates and
certifications of re-refined oil content.
KPA disagrees. Section 0002 clearly
 identifies what is required of procuring
 agencies, and recordkeeping is not
 included. On the  other1 hand contracting
 officers are required to obtain estimates
 ;ind certifications from vendors. Section
 6(X)2 does not authorize EPA to require
 anything of procuring agencies, let alone
 recordkeeping. Thus. EPA can only
 recommend  that  procuring agencies
 keep records on  procurements of items
 containing recovered materials.

 V. Price, Competition. Availability, and
  Performance
   As described above. Section fi002(c)(t)
 of RCRA provides that a procuring
  agency may decide not to purchase an
  item designated  by EPA if it determines
  that the item is available only at an
  unreasonable price, a satisfactory level
  of competition cannot be maintained.
  the item it not reasonably available
  within a reasonable period of time, or
  the item fails to  meet the performance
  standards. EPA  has considered the
  effect of these limitations on paper and
  paper products containing recovered
  m.itori.ils.
    Cpmnu>ntors stated that EPA is
   requried under Section 6002(e) to
   provide detailed information about the
   availability, price, and performance of
   paper and paper products containing
   recovered materials. EPA has
   determined that such information varies
   significantly over short periods of time.
   Paper and paper products are made
   from virgin and recovered commodities
   which fluctuate in value according to
   supply and demand within the national
   and international economies. Even 
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  23560     -fffi"*1 **&**** I  Voi- SS-  NO- MO /  Wednesday, June 22. 1988  /  Rules and Regulations
  priming and writing paper and tissue
  products. EPA will not place a list of
  mills in the guideline itself, however,
  because one purpose of the guideline is
  to encourage new suppliers, not to
  promo e existing suppliers, and thus to
  encourage greater use of recovered
  materials. Procuring agencies also are in
  direct contact with paper vendors on a
  regular basis and can seek this
  information directly.

  D. Performance
    Product performance is discussed
  above in Section IV.E of the preamble.   -
  VI. ImplAtrmntntmr|

    Different parts of Section 6002 refer to
  different dates by which procuring
  agencies must have completed or
  initiated a required activity: (1) May 6,
  1908 (i.e.. 18 months after enactment of
 HSWA); [Z] one year after the date of
 publication of an EPA guideline; and (3)
  the date specified in EPA guidelines. As
 a result there is some confusion with
 respect to  which activities must be
 completed or initiated by each date.
 This section of the preamble explains
 these requirements.
   First, coder Section KW2(dHl), Federal
 agencies that have the responsibility for
 drafting or reviewing specifications for
 procurement items most eliminate from
 such specifications any exclusion of
 recovered  materials and any
 requirements that items be
 manufactured from virgin materials.
 This activity was required to be
 completed by May a, 1366.
   Second,  procuring agendas must
 assure thai their specifications for
 procurement items designated by £PA
 require the use of recovered materials to
 the maximum extent possible without
 jeopardizing the intended end use of the
 item [Section 60Q2(dK2jj- la addition.
 procuring agencies most develop an
 affirmative procurement program for
 purchasing Urm* designated by EPA. in
 this instance, paper end paper products
 containing  recovered material* (Section
 6002(i}{l)J. Both of these activities must
 be completed within one year after the
 date of publication of a guideline by
 EPA. Because the revised guideline
 issued today supersedes the final
 guideline ttaued on October 8.1987,
 specification revisions and development
of an affirmative procurement program
 for paper and paper products must be
 completed within one year from today.
  Third, after the date specified by EPA
in the applicable guideline, procuring
agencies that procure items designated
fay EPA Joust begin procurement of «uch
item* containing the highest percentage
of recovered materials practicable
ISectioo 60Q2(cMl)}. Jin addition,
  contracting officers must require
  venders to submit estimates and
  certifications'of recovered materials
  content [Section 60Q2(c)(3)J.
    With respect to this third set of
  requirements, EPA believes that
  procuring agencies should begin to
  procure paper and paper products
  containing recovered materials as soon
  as the specification revisions have been
  completed and the affirmative
  procurement programs have been
  developed. As stated, these latter
  activities must be completed within one
  year after publication of a guideline.
  Again, because the revised guideline
  published today supersedes the final
  guideline published on October 6,1987,
  to be consistent wfth the statutory
  requirements, EPA has concluded that
  affirmative procurement should begin
  one year from today.
    To darify this point, EPA has added
  §  250.25 to the final guideline which
  states procuring agencies must begin
  procurement of paper and paper
  products containing recovered materials
  one year from the date of publication c-f
  this revised guideline  as a final rule.
    EPA expects cooperation from
  affected procuring agencies in
  implementing this guideline. Under
  Section «XJ2(g) of RCRA, the Office of
  Federal Procurement Policy (OFPP), in
  cooperation with EPA, is responsible for
  overseeing implementation of the
  requirements of Section 6002 and for
  coordinating it with other Federal
 procurement policies. OFPP is required
  to report to Congress on actions taken
 by Federal agencies to implement
  Section 6002.

 VIL Summary of Supporting Analyses
 A. General
   The preamble to the final paper
 guideline included a discussion of die
 technical material supporting the
 guideline. 52 FR 37305 (October 6,1S87J.
 That material is applicable to the
 revised guideline as well. In addition, as
 indicated in the preamble. EPA flan
 added technical material supporting the
. revised minimum content standard for
 corrugated boxes and solid fiber boxes,
 as  well as the cotton fiber paper
 minimum content standard.   .

 B. Environmental and Energy Impacts
  Concerns about the high volumes and
 cost of .solid waste disposal and the
 difficulty many communities -are having
 in locating new-disposal sites, as well as
 Congressional mandate, were the chief
 reasons for the final paper guideline.
 EPA has not concluded that there will
 be any significant environmental impact.
 positive or negative, from the Federal
  procurement of paper and paper
  products containing recovered
  materials.
    The energy advantage varies from
  product to product and mill to mill as
  well as between users of virgin and
  recovered materials. Recycled
  feedstocks seem to be a minor factor.
  EPA has concluded that the energy
  efficiency between mills, be they virgin
  or recycling, is greater than the
  difference in energy efficiency between
  the two types of mills, which tends to
  reduce the importance of this issue.

  C. Volume Reduction and Cost Impacts
  of Reducing Paper Disposal in Landfills

    This was explained in full in the
  preamble to the final paper guideline, 52
  FR 37304 {October S. 1987).

  D. Executive Order No. 12291

   Under ExecTiuve Order {E.O.) No.
  12291. regulations must be classified as
  major or nonmajor. E.O. No. 12291
  establishes the following criteria for a
  regulation to qualify as a -major rule:
   i. An annual effect on the economy of $100
 million or outre;
   2. A major increase ia costs or prices for
 consumers: individual industries: Federal.
  state, or local .government agencies; or
 geographic regions or
   3. Significant  adverse effects on
 competition, employment investment
 productivity, irmoration. or the ability of the
 United Stetej-based enterprises to compete
 with foreign-based enterprises in domestic or
 export markets.

   Federal purchases of paper and paper
 products do not constitute a large
 enough share of these markets for
 industry to make manufacturing
 decisions that are not otherwise
 economically feasible in order to meet
 Federal procurement requirements. In
 fact some Federal procurement policies
 have been modified in recent years to
 conform more closely to common
 commercial standards for some paper
 products, e.g-. -toilet tissue.. The
 flexibility allowed to the procuring
 agencies in implementing an affirmative
 procurement program should mak« it
 possible to make adjustments if any
 adverse market dislocation or decrease
 in competition should occur.
  Because of the number of items
included in the paper and paper product
caiegories-and the-number.of
procwremeal Actions taken by procuring
agencies each year, some agencies may
find it necessary to initially allocate
additional resources to implement this
guideline. However, the flexibility
allowed andtbe practicesreconnnended
  this guideline are intended Jo« void
            ased expenditures by

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           Federal Register / Vol.  53,  No. 120  /  Wednesday, June 22, 1988  / Kules and Regulations     23561
procuring agencies. For example, EPA
has recommended that the procedure for
estimating and certifying recovered
materials content be simple and that it
be consistent with the procuring
agency's usual contracting procedure.
  On the basis of the above information
and on more extensive data in the
rulemaking docket, the Agency earlier
concluded that the final paper guideline
was a nonmajor rule. The revisions to
the guideline have not changed this
conclusion.
  This document has been submitted to
the Office of Management and Budget
(OMB) for review as required by E.O.
No. 12291. .

E. Regulatory Flexibility Act
  Pursuant to the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq., whenever an
agency publishes a general notice of
rulemaking for any proposed or final
rule, it must prepare and make available
for public comment a regulatory
flexibility analysis that  describes the
impact of the rule on small entities (i.e.,
small businesses, small organizations,
 small governmental jurisdictions),
 unless the Administrator certifies that
 the rule will not have significant
 economic impact on a substantial
 number of small entities.
   Because of the $10,000 threshold* EPA
 does not expect a substantial number of
• small entities to be affected by this
 guideline. The Agency also believes that
, the flexibile approach to procurement of
 paper and paper products containing
 recovered materials provided for in this
 guideline will not impose a significant
 regulatory or economic burden on small
 procuring agencies, manufacturers,
 vendors, or contract printers. Detailed-
 information on  this assessment can be
 found in the RCRA docket for this
 guideline.
   Pursuant to the provisions of 5 U.S.C.
 605(b), I hereby certify  that  this
 guideline will not have a significant  •
 economic impact on a substantial
 number of small entities. Thereforei this.
 guideline does not require a Regulatory
 Flexibility Analysis.
  List of Subjects in 40 CFR Part 250
    Forest and forest products.
  Government contracts. Government
  procurement. Packaging and containers.
  Paper, Postconsumer materials,
  Recovered materials. Recycling,
  Resource recovery, Waste paper.
    Dated: June 16.1988.
  Lee M. Thomas,.
  Administrator.
    For the reasons set out in the
  Preamble. Part 250 of Title 40 of the
Code of Federal Regulations is revised
to read as follows:

PART 250—GUIDELINE FOR FEDERAL
PROCUREMENT OF PAPER AND
PAPER PRODUCTS CONTAINING
RECOVERED MATERIALS

Subpart A—General

See.
250.1  Purpose.
250.2  Designation.
250.3  Applicability.
250.4  Definitions.
Subpart 8—Revisions and Addition* to
Paper and Paper Product Specification*
250.10  Introduction
250.11  'Elimination of recovered  materials
    exclusion.
250.12  Requirement of recovered materials
    content.
250.13  Exclusion of products containing
    recovered materials that do not meet
    reasonable performance standards. .
250.14  New specifications.
Subpart C—Affirmative Procurement
Program
250.20  General.
250.21  {^covered materials preference
    program.
250.22  Promotion program.
250.33  Estimates, certification, and
    verification.
250.24'  Annual review and monitoring.
250.25  Implementation.
   Authority: 42 U.S.C. 6912(a) and 6962.

Subpart A—General

§250.1' Purpose.
   (a) The purpose of this guideline is to
assist  procuring agencies in complying
with the requirements of section 6002 of
the Solid Waste Disposal Act, as
amended by the Resource Conservation
and Recovery Act (RCRA), as amended,
as that section applies to paper and
paper products designated in § 250.2  of
 this part.
   (b) This guideline contains
 recommendations for implementing the
 requirements of section 6002 of RCRA,
 including the revision of specifications  .
 and the establishment of an affirmative
 program for' the procurement  of paper
 and paper products containing
 recovered materials. The guideline also
• makes recommendations concerning
 solicitations for bids and estimation,
 certification, and verification
 procedures. In addition, the guideline
 sets dates for implementation.
   (c) The Agency believes that
 adherence to the practices
 recommended in the guideline
 constitutes compliance with section 6002.
 of RCRA, as it relates to the purchase of .
 paper and paper products containing
 recovered materials.
J250.*.  Dealgrutton.
  Under section 6002(e)(l) of RCRA,
paper and paper products are
designated as items which can be
produced with recovered materials and
whose procurement by procuring
agencies will carry out the objectives of
section 6002 of RCRA. As used in this
guideline, the term "paper and paper
products" does not include building and
construction paper grades.

§ 250.3  Applicability.
  (a) This guideline applies to all paper
and paper products purchased with
appropriated Federal funds.
  (b)(l) This guideline applies to all
procuring agencies and to all
procurement actions involving paper
and paper products where the procuring
agency purchases $10,000 or more worth
of one of these items during the course
of a fiscal year, or where the cost of
such items or of functionally equivalent
items purchased during the preceding
fiscal year wasi $10,000 or more.
  (2) This guideline applies to Federal
agencies, to State or local agencies using
appropriated Federal funds, and to
persons contracting with any such
agencies with respect to work performed
under such contracts. Federal  agencies
should note that the requirements of
RCRA section 6002 apply to them
whether or not appropriated Federal
funds are used for procurement of items
designated by EPA.
  (3) The $10,000 threshold applies to
procuring agencies as a whole rather
than to agency subgroups such as
regional offices or subagencies.
  (c) For purposes of the $10,000
threshold, each item listed in each
category below is considered to be
functionally eq.uivalent to every other
item in the category:
  (1) All grades and types of
xerographic/copy paper
  (2) Newsprint;
  (3) All grades and types of printing
and writing pa pen
  (4) .-Corrugated and fiberboard boxes:
  (5) Folding boxboard and cartons:
  (6) Stationers', office papers  (e.g.,
memo pads; scratch pads), envelopes,
and manifold business forms including
computer paper;
  (7) Toilet tissue, paper towels, facial
tissue, paper napkins, doilies, and
industrial wipers; and
  (8) Brown papers .and coarse papers.
  (d) .Procurement actions covered  by
this guideline include:
  (1) All purchases of paper and paper
products made directly by a procuring
agency or by any person contracti-ig
with any such agency with respen  ID
work being performed under such

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                                                                   June a'  1988 7 Rules  and
   conli-act, for example, contract printing;
   and.
     (2) Indirect purchases of paper and
   paper products made by a procuring
   agency, such as purchasingfesulting
   from Federal grants, loans, and similar
   fo«ms of disbursements of monies that
   the procuring agency intended to be
   used for the procurement of paper or
   paper products.
     (e) Purchases of paper and paper
   products that are unrelated or incidental
   to Federal funding, te., not the direct
   result of a Federal contract grant, loan,
   funds disbursement, or agreement with a
   procuring agency, are not covered by "
   this guideline.

   $250.4  Definition*.
     As used in this guideline, the
   following terms shall have the meaning
   indicated below:
     (a) "Act" or "RCRA" means the Solid
  Waste Disposal Act, as amended by the
  Resource Conservation and Recovery
  Act. as amended. 42 U.S.C. 6901 etseq.;
    (b) "Bleached papers" means paper
  made of pulp that has been treated with.
  bleaching agents;
    (c) "Bond paper" means a generic
  category of paper used In a variety of
  end use applications such as forms (see
  "form bond"), offset printing, copy
  paper, stationery, etc. In the paper
  industry, the term was originally very
  specific but is now very general.
   (d) "Book paper" means a generic
  category of papers produced in a variety
  of forms, weights, and finishes for use in
  books and other graphic arts
  applications, and related grades such as
  tablet, envelope, and converting papers;
   (e) "Brown papers" means papers
  usually made from unbleached kraft
  pulp and used for bags, sacks, wrapping
  paper, and so forth;
   (f) "Coarse papers** means papers
  used for industrial purposes, as
  distinguished from those used for
  cultural or sanitary purposes;
   (gJ-'Connputer paper" means a type of
 paper used in ma'nifold business forms
 produced in-rolls and/or fan folded. It is
 used with computers and word
 processors to print out data.
 inforaation, letters, advertising, etc. It is
 cottBwnly called computer printout
   (h) "Corrugated boxes" means boxes
 «iade of corrugated paperboard, whkh.
 in turn, is made from a Bated
 corrugating medium pasted to two fiat
 sheet* of paperboard (Imerboard);
 multiple iayera may be used:
   (i) "Cotton fibercoatent papers"
 means paper that contains a minimum of
 25 percent and up to 100 percent
«ceUnloM fiber* derived from lint cotton.
cotton linters, and cotton or linen cloth
cuttings. It i* abo known as rag content
   paper or rag paper. It is used for
   stationery, currency, ledgers, wedding
   invitations, maps, and other specialty
   papers:
     (0 "Cover stock" or "Cover paper"
   means a heavyweight paper commonly
   used for covers, books, brochures,
   pamphlets, and the like;
     (k) "Doilies" means paper place mats
   used on food service trays in hospitals
   and other institutions;
     (1) "Duplicator paper" means writing
   papers used for masters or copy sheets
   in the aniline, ink or hectograph process
   of reproduction (commonly called spirit
   machines);
    (m) "Envelopes" means brown,
   manila, padded, or other mailing
   envelopes not included with
  "•stationery;"
    (n) "Facial tissue" means a class of
  soft absorbent papers in the sanitary
  tissue group;
    (o) "Federal agency" means any
  department, agency, or other
  instrumentality of die Federal
  Government, any independent agency or
  establishment of the Federal
  Government including a government
  corporation, and the Government
  Printing Office;
    (p) "Fiber or fiberboard boxes" means
  boxes made from containerboard, either
  solid fiber or'corrugated paperboard
  (general term); or boxes made from solid
  paperboard of the .same material
  throughout (specific term);
    (q) "Folding boxboard" means a
  paperboard suitable for the manufacture
  of folding cartons;
   (r) "Form bond" means a lightweight
  commodity paper designed primarily for
 business forms including computer
 printout and carbonless paper forms.
 (See manifold business forms);
   (s) "Industrial wipers" means paper
 towels especially made for industrial
 cleaning and wiping;
   (t) "Ledger paper" means a  type of
 paper generally used in a broad variety
 of recordkeeping type applications such
 as in accounting machines.
   (u) "Manifold  business forms" means
 a type -of product manufactured by
 business form's manufacturers that is
 commonly produced as marginally
 punched continuous forms in small rolls
 or fan folded sets wim or without
 carbon paper interleaving, ft has a wide
 variety of uses such as invoices,
 purchase orders, office memoranda.
 shipping orders, and computer printout;
   (v) "Mill broke" means any paper
 waste  generated in a paper mill prior to
 completion of the papermaking process.
it 4s usually returned directly to the
pulping process. Mill broke fe excluded
 from the definition of "recovered
 materials;"
     (w) "Mimeo paper" means a grade of
   writing paper used for making copies on
   stencil duplicating machines;
     (x) "Newsprint" means paper of the
   type generally used in the publication of
   newspapers or special publications like
   the Congressional Record. It is made
   primarily from mechanical wood pulps
   combined with some chemical wood
   pulp;
     (y) "Office papers" means note pads.
   Ioose4eaf fillers, tablets, and other
   papers commonly used in offices, but
  not defined elsewhere;
     (zj "Offset printing paper" means an
  uncoated or coated paper designed for
  offset lithography;
     (aa) "Paper".means one of two broad
 • subdivisions of paper products, the other
  being paperboard. Paper is generally
  lighter in basis weight, thinner, and
  more flexible than paperboard. Sheets
  0.012 inch or less in thickness are
  generally classified as paper. Its primary
  uses are for printing, writing, wrapping.
  and sanitary purposes. However,  in this
  guideline, the term paper is*also used as
  a generic term that includes both paper  '
  and paperboard.lt includes the
  following types of papers: bleached
  paper, bond paper; book paper, brown
  paper, coarse paper, computer paper,
  cotton fiber content paper, cover stock
 or cover paper, duplicator paper, form
 bond, ledger paper, manifold business
 forms, mimeo paper, newsprint, office
 papers, offset printing paper, printing
 paper, stationery, tabulating paper,
 unbleached papers, writing paper, and
 xerographic/copy paper.
   (bb) "Paper napkins" means special
. tissues, white or colored, plain or
 printed usually folded, and made in a
 variety of sizes for use during meals or
 with beverages;
   (cc) "Paper product" means any item
 manufactured from paper or
 paperboard. The -term "paper product" is
 used in this guideline to distinguish such
 items as boxes, doilaes, and paper
 towels from printing and writing papers.
It includes the fallowing types of
products; corrugated boxes, doilies,
envelopes, facial tissue, fiberboard
boxes, folding boxboard. industrial
wipers, paper napkins, paper towels,.
tabulating cards, and toilet tissue;
   (dd) "Paper towels" means paper
toweling in folded sheets, or in raw
form, for use in drytag or cleaning, or
where quick absorption is required;
  (ee) 4*aperf>oard" mean* one of the
two  broad subdivisions of paper, the
other being paper itself. Paperboard is
usually heavier in basis weight and
thicker than paper. Sheets 0.012 inch or
more in thickness are generally
classified as paperboard. The broad

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                                                                                                            23WS
  isen
  tainerboari winch isuse&fbr
  rugated baxesrboxboarATwhich is
  icipaBf-used to make cartonsvand all
  er psperboardr         je_ui_»
  ff) "Person" means an muwwrawi
  st, firm, joint stock company,
  poration {including a government
  •poration), partnership, association,
  ite. municipality, commission,
  Lineal subdivision of a State, or any
  erstate body.
  (gg) "Practicable" means capable of
  ing used consistent with: performance
  accordance with applicable
  lecificationa, availability at a
  asonable price, availability within a
  •asonable period of time, and
  .aintenance of a satisfactory level of
 ompetition;
  (hh) "Printing paper" means paper
 esigned for printing, other than
 ewsprint, such aa offset and Book
 >aper;
  (ii) "Procurement item" means any
 levice, good, substance, material,
 >roduct or other item, whether real or
 jersonal property., that is the subject of
 iny purchase, barter, or other exchange
 nade to procure such item;
  Oil "Procuring agency" means any
 Federal agency, or any State agency or
 agency of a political subdivision of a
 State that is using appropriated Federal
 funds for such procurement", or any
 person contracting with any such-
 agency with respect to work performed
 under such contract;
   (kk) "Recovered materials" means
 waste material and by-products that
 have been recovered or diverted from
 solid waste, but such term does not
  include those materials and by-products
  generated from, and commonly reused
  within, an original manufacturing
  process. In the case of paper and paper
  products, the term "recovered
  materials" includes?        •
   (1)  Postconsumer materials- such as:
   (i) Paper, paperboard, and fibrous
  wastes from retail stores, office
  buildings, homes, and so for*, after they
  have passed through their end usage as
  a consumer item, including: Used
  corrugated boxes, old newspaper* old
  magazines, mixed waste paper.
  tabulating cards, and used cordage, and.
    (ii) All paper, paperboard. and fibrous
  wastes that enter and are  collected from
  municipal solid waste: and
    (2) Manufacturing, forest residues, and
.  other wastes such as:
    (i) Dry paper and paperboard waste
  generated after completion of the
   papermaking process (that is. those
   manufacturing operations up to and
   including the cutting and  trimming of the
   paper machine reel into smaller roils or
   rough sheets) including envelope
cutting* bindery trimmings,
paper and paperboard waste, resulting.
from printing, cutting, forming, and other
converting operations; bag, box and
carton manufacturing wastes; and butt
rolls, mill wrappers, and rejected unused
stock; and
  (ii) Finished paper and paperboard
from obsolete inventories of paper and
paperboard manufacturers, merchants,
wholesalers, dealers, printers,
converters, or others;
  (iii) Fibrous by-products of harvesting,
manufacturing, extractive, or wood-
ratting processes, flax, straw, linters,
bagasse, slash, and other forest
residues;
   (iv) Wastes generated by the
 conversion of goods made from fibrous
 material (e.g.. waste rope from cordage
 manufacture, textile mill waste, and
 cuttings); and
   (v) Fibers recovered from waste water
 that otherwise would enter the waste
 stream;
   (11) "Recyclable paper" means any
 paper separated at its point of discard or
 from the solid waste stream for
 utilization as a raw material in the
 manufacture of a new product. It is often
 called "waste paper" or "paper stock."
 Not all paper in the waste stream in
 recyclable; if may be heavily
 contaminated or otherwise unusable.
    (mm) "Specification" means a.
 detailed description of the technical
 requirements for materials, products, or-
 services that specifies the minimum'
 requirement for quality and construction
  of materials and equipment necessary
  for an acceptable product.
  Specifications are generally in the form
  of a written description, drawings.
  prints, commercial designations,  •
  industry standards, and other  •
  descriptive references;
     (tin) "State" means any of thaseveral
  states, the District of Columbia, the
  Commonwealth of Puerto Rico, the
  Virgin Islands, Guam. American Samoa,
  and the Commonwealth of the Northern
  Mariana Islands;
     (oo) "Stationery" means writing paper
   suitable for pen and ink, pencil, or
   typing. Matching envelopes are included
   in this definition.
     (pp) 'Tabulating cards" means carda
   used in automatic tabulating machines;
   'Tabulating paper" means paper used in
   tabulating forms for use on automatic
   data processing equipment;
     (qq) "Toilet tissue" means a sanitary
   tissue paper. The principal
   characteristics are softness, absorbency,
   cleanliness, and adequate strength
   (considering easy disposability). It is
   marketed in rolls of varying sizes or in
    interleaved packages.
  (rr) "UnWeacned papers" memnr
papers made of palp that have not been
treated with bleaching agentK
  (ss> "Waste papet" means any of the
following, "recovensd material*' V
  (1) Posteonaumer material* such as:
  (i) Paper, paperbaard, and fibrous
wastes from retail store*, office
buildings, homes, and-so forth, after thejr
have passed throuj[h their end usage as
a consumer item, including: Used
corrugated boxes, old newspapers, old
magazines, mixed waste paper,
tabulating cards, and used cordage, and
  (ii) All paper, paperboard, and fibrous
wastes that enter and are collected from
municipal solid waste; and  .
  (2) Manufacturing, forest residues, and
other wastes such as:
  (i) Dry paper and paperboard waste
generated after completion of the
papermaking pieces* (that is, those
manufacturing operations up to and
including the cutting and trimming of  the
paper machine reel into smaller rolls or
 rough sheets) including: Envelope
 cuttings^ bindery trimmings, and other
 paper and paperboard waste, resulting
 from printing, cutting, forming, and other
 converting operations; bag. box. and
 carton manufactuiring wastes; and butt
 rolls, mill wrappeirs, and rejected unused
 stock and;
   (ii) Finished paper and paperboard
 from obsolete inventories of paper and
 paperboard manufacturers, merchants,
 wholesalers, dealers; printers,
 converters, or others
   (tt) "Writing paper" means a paper
 suitable for pen and ink. pencil,
 typewriter or printing;
   (uu)"Xerograpliic/copy paper" means
 any grade of-paper suitable for copying
 by the xerographic process (a dry
 method of reproduction).

 Sutopart B—Revisions and Additions to
  Papar and Paper Product
  Specifications

  § 250.10 Introduction.
    Thi?  subpart offers guidance to
  Federal agencies that draft or review
  specifications for paper and paper
  products. As used in this snbpart. the
  term "postconsumer recovered
  materials" refers to waste paper in the
  case of printing and writing papers and
  to recovered materials ih the case of
  cotton fiber papers.
  § 250.11  EnrnJnation of recovered
  materials exclusion.
    By May 8,1980t each Federal agency
  was required to assure that its
  specifications do net unfairly
  discriminate against the use of
  postconsumer rscoveted materials. At h

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 23564
Federal gegkf« /	Vol	53. JVo.	120	/	Wednesday.	JuneJ2._lg88/Rule8 and Regulations
 minimum, except as provided in § 250.13
 of this Part, each Federal agency was
 required to:
   (a) Revise those specifications,
 standards, and procedures that require
 that paper and paper products contain
 only virgin materials to eliminate this
 restriction; and
   (b) Revise those specifications,
 standards, and procedures that prohibit
 using poatconsumer recovered materials
 in paper and paper products to eliminate
 this restriction.

 §250.12  Requirement of recovered
 material* content
   (a) Within one year of publication of
 this revised guideline, paper and paper
 product specifications must require the
 use of poatconaumer recovered
 materials to the maximum extent
 possible without jeopardizing the
 intended end use of the paper or paper
 product.
   (b) Specifications that are
 unnecessarily stringent for a particular
 end use and that bear no relation to
 function, such as brightness and
 whiteness for copy paper, should be
 revised in order to allow for a higher use
 of postconsumer recovered materials.
 Specifications that bear no relation to
 function should be revised according to
 the agency's established review
 procedure.  In determining the
 relationship to function of existing
 specifications, Federal agencies should
 make maximum use of existing
 voluntary standards and research by *
 organizations such as the American
 Society for Testing and Materials'
 Committees D6, DlO, and F5; the
Technical Association of the Pulp and
                            Paper Industry; and the American
                            Institute of Paper Chemistry.

                            S 250.13 Exclusion of products containing
                            recovered materials that do not meet
                            reasonable performance standards.

                              (a) Notwithstanding the requirements
                            of §§ 250.11 and 250.12 of this Part, ••,
                            Federal agencies need not revise
                            specifications to allow or require the use
                            of postconsumer recovered materials if
                            it can-be determined that for technical
                            reasons, for a particular end use, a
                            product containing such materials will
                            not meet reasonable performance
                            standards.

                              (b) Any determination under this
                            section should be documented by the
                           'drafting and reviewing agency and be
                            based.on technical performance
                            information related to a specific item,  •
                            not a grade of paper or type of product.
                            Agencies should reference such
                            documentation in subsequent
                            solicitations for the specific item in
                            order to avoid repetition of previously
                            documented points.

                            §250.14  New specifications.

                             When paper or a paper product
                            containing postconsumer recovered
                           materials is produced in types and
                           grades not previously available,
                           specifications should be revised to allow
                           use of such type or grade, or new
                           specifications should be developed for
                           such type or grade. EPA recommends
                           that procuring agencies monitor new
                           developments and use them to increase
                          . the use of postconsumer recovered
                           materials as appropriate.
 Subpart C—Affirmative Procurement
 Program

 §250.20  General
   (a) Within one year after the date of
 publication of this revised guideline,
 procuring agencies which procure paper
 and paper products must establish an
 affirmative procurement program for
 such items. The program must meet the
 requirements of section 6002{i) of RCRA.
 including the establishment of a
 preference program; a promotion
 program; procedures for obtaining
 estimates and certifica tion of
 postconsumer recovered materials
 content and for verifying the estimates
 and certifications;'and an annual review
 and monitoring program. This subpart
 provides recommendations for
 implementing section 6002(i).
   (b) As used in this subpart, the term
 "postconsumer recovered materials"
 refers to waste,paper in the case of   .
 printing and writing grades and to
 recovered materials in the case of cotton
 fiber papers.

 § 250.21  Recovered material! preference
 program.
   (a)(l) EPA recommends that procuring
 agencies establish minimum recovered
 materials content standards that assure
 that the postconsumer recovered
 materials content required is the
 maximum available without
 jeopardizing the intended end use of the
 item or violating the limitations of
 Section 6002(c)(l) (A) through (C) of the
Act.
  (2) EPA recommends that procuring
agencies set their minimum'content
levels at the highest levels that meet the
statutory requirements but no lower
than the levels shown in Table 1.
          TABLE 1.—EPA RECOMMENDED MINIMUM CONTENT STANDARDS OF SELECTED PAPERS AND PAPER PRODUCTS
, ,
MftWtpfffrtttuu. 	 Tt-rmttniitt. 	 .•«.„•. 	
Hbh grxte blMctod printing and writing paper*: 	
OfHtt JXfrrfflQ, 	 ,„. ,....._,...
Mimoo and dupxotor ptptr ...„„„ . 	 " 	 " 	 ~
Writing (Mciaiwy). 	 • ~ 	 " 	 	
Office pep«f(t,g,no««p«d»)._m___ 	 ' " 	 	 ~" 	
P»P«r for Ngh-ipoed copfcrt - 	 "" 	 "'" 	
Form bond Indbiog computw pcpar •nd.carboofess 	 	
BoeHpfftr* • M -~- 	 	
Bonrlp«p«« . • . . 	 - 	 	
LedQtf_ — , 	 : 	 ,__ ;
CtTMtfiffit __ 	 . . ~ -"• 	 	 	 — 	 	
Cotton ftur pfMrf , , . . „ 	 "' •
Tittut product*: • • ' 	 	
ToUMIiMu*. .. ,', „, ' • •• • !*.;.
• Piftf rupllnf 	 	 j. . "" •-•""• 	 "-•-"• 	
Minimum
percentage
of
recovered
materials


	



»» 	 	
•.»»«».«» 	
..„ 	 .....


-•• — • 	
Minimum
percentage
of
postcon-
sumer
recovered •
materials
40

••— — 	 -


,...._, 	 „ 	 „„
	
....... 	 	

	
20
. 40
30
Minimum
percentage
of waste
paper'


SO
50
50
50
H
50

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           Federal Register / VoL 53. No. 120 / Wednesday, June 22; 1988 / Rules and Regulations
                                                                       23565
    TABLE 1.—EPA RECOMMENDED MINIMUM CONTENT STANDARDS OF SELECTED-PAPERS. AND PAPER. PFiooucra-Continued

Fac'ai tissue 	 	 '
Doilies 	 	
Industrial wipers 	 	 	 _ 	 _ .. . 	 	 _ 	
Unbleached packaging:
Corrugated boxes 	 „ 	 	 . 	 , 	 _„_ 	
Fiber boxes 	 _ 	 - 	
Brown papers (e.g., bags) 	 _ 	 , 	 	
Recycled paperboard:
Recycled paperboard products including folding cartons . ... 	 _ 	
Pad backing 	 ; 	 _ 	 _ 	 , 	 	 	 ....._ 	

Minimum-
percentage
of
reoouertid
material!*

— 	 41_1.I-IH1IJ1-1







Minimum
percentage
of. .
postcorv •
stimef
recovered
materials
5.


35


'80
90

Minimum
pefcentage-
o^ waste-
paper*

- 	 —- ..™..


••••——•— 	
"—•——"—•

••.«.»..«--, i n m »

   1 Waste paper is dafined in Section 250.4 and refers to specified pqstconsumer and other recovered materials.
   - EPA found insufficient production o» these papers with rscyded content to assure adequate competition.
  (3) Minimum content standards should
be reviewed annually based on
procurement experiences, including data
compiled on postconsumer recovered.
materials content, as recommended in
§ 250.23{c) of this part.
  (b) The recommendations in
paragraphs (a) (1) and (2) of this section*
as well aa any other affirmative •
procurement program that an agency
may adopt are subject to the following  .
limitations provided in section 6002(c)(l-).
ofRCRA:
  (1) Maintenance of a satisfactory level
of competition;
  (2) Availability within a reasonable
period of time:
  (3) Ability to meet the performance
specifications in the invitation for bids;
  (4) Availability at a reasonable price.
  (c) Procuring agencies should make
determinations regarding competition
and availability in accordance with the-
Federal Acquisition Regulation (FAR).
48CFRCh. letseg.

§ 250.22 Promotion program.
  EPA recommends that procuring
agencies consider all possible
promotional methods including the-
following:
  (a) A special notation prominently
displayed in any paper or paper product
procurement solicitation or invitation to
bid.
  (b) A statement in each paper
specification defining "postconsumer
recovered materials," "waste paper," or
"recovered materials," as applicable, as
they are defined in § 250.4 of this part
  (c) A brief statement in
advertisements of bids describing the
preference program. Such
advertisements should be placed in the
Commerce Business Daily and
periodicals commonly read by vendors
of paper and paper products containing
postconsumer recovered materials.
  fd) Catalog listings of available
products (such as GSA's Office
Supplies) indicating which paper or
paper product contains postconsumer
recovered materials.
  (e) Discussion of the preference
program at bidders' conferences or.-
similar meetings of potential bidders,  •
  (f) Announcements in recycling-
journals, trade magazines, and
procurement publications.

§250.23  Estimates, cortitfcatlon, and
verification:
  (a) Agencies must require vendors to
estimate the total percentage of
postconsumer recovered materials in
paper and paper products supplied to
them.
  (b) Agencies must require vendors to
certify the minimum postconsumer
recovered materials to be used in the
performance of a contract
  (c) There must be reasonable
verification procedures for estimates
and certifications, e.g., the procuring
agency may state in solicitations for
bids that in the case of a bidder's
protest, all estimates and certifications
will be subject to audits of mill records.
  (d) For each paper or paper product
procured, agencies should maintain the
following records;
  (1) The; percentage of postconsumer.
recovered materials in the products
procured-or offered;
  (2) Comparative price information on
competitive procurements;
  (3) The quantity of each item procured
over a fiscal yean
  (4) The availability of the paper and
paper products to procuring agencies;
  (5) Type of performance tests
conducted, together with the categories
of paper or paper products containing .
postconsumer recovered materials  that
failed the tests; the percentage of total
virgin products and products containing
 postconsumer recovered materials.
 respectively, that failed each test; and
 the nature of the failure;
   (6) Agency experience with the
 performance of ilhe procured products.

 §250.24  Annual rsvisw and monitoring.
   (a) Each procuring agency must
 conduct an annual review and
 monitoring of the effectiveness of its-  •
 affirmative procurement program.
   (b) EPA recommends that the annual
 review include the following items:
   (1) An estimate of the-quantity of
 paper and paper products purchased
 containing postconsumer recovered
 materials and the total quantity of paper
 and paper products purchased.
   (2) A review of the variation between
 estimates and certifications of
 postconsumer recovered materials
 content in paper and paper products
 purchased during the-year. If the
 variations are significant procuring
 agencies should determine whether
 minimum content standards can be
 introduced or raised without causing a
 long-term increase in price.
   (c) Procuring agencies should prepare
 a report on their annual review and
 monitoring of thsi effectiveness of their
 procurement pro;grams and make the
 report available to the public. The report
 should contain the following
• information:
   (1) If the case-by-case approach is
 being used, a demonstration that they
 procure paper and paper products
 containing postconsumer recovered
 materials to the maximum extent
 practicable. The basis for this
 determination should be a review of the
 data compiled on recovered materials
 content price, availability, and
 performance, as-well as a comparison 01
 estimates and certifications provided b>
 the vendors^

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23566     Federal Register / Vol. 53. No.  120 / Wednesday. June  22. 1988 /
                                                                                           RegulaHons
  (2) If the minimum content standards
approach is being used, a determination
of whether the minimum content
standards in use should be raised,
lowered, or remain constant for each
item. The basis for these determinations
should be a review of the data compiled
on postconsumor recovered'materials
conlont, price, availability, and
performance, as well as a comparison of
estimates and certifications provided by
the vendors.
  (3) Documentation of specification
revisions made during the year.

§259.25  Implementation.
  (a) Procuring agencies must complete
specification revisions in accordance
with RCRA section 6002(d)(2) and
development of affirmative procurement
programs in accordance with RCRA
section 6002(i) within one year from the
date of publication of this revised
guideline.
' (b) Procuring agencies must begin
procurement of paper and paper
products containing  postconsumer  .
recovered materials  in compliance with
RCRA section 6002, one year from the
date of publication of this revised
guideline.
(FR Doc. 88-13917 Filed 8-21-68:8:45 am]
•turn CODE isw-so-m

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