Friday
 August 20, 1999
Part VII



Environmental

Protection  Agency

Final Guidance on Environmentally
Preferable Purchasing for Executive
Agencies; Notice

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Federal Register  /  Vol.  64,  No. 161  /  Friday,  August 20,  1999 / Notices
ENVIRONMENTAL PROTECTION
AGENCY

[OPPTS-00149A; FRL-6095-4]

FUN2070-AC78

Final Guidance on Environmentally
Preferable Purchasing for Executive
Agencies

AGENCY: Environmental Protection
Agency (EPA).
ACTION: Notice.

SUMMARY: This document announces the
availability of a general guidance
designed to assist Executive agencies in
identification and acquisition of
environmentally preferable products
and services. The final guidance is in
response to section 503 of Executive
Order 13101. entitled "Greening the
Government Through Waste Prevention,
Recycling and Federal Acquisition" (63
FR 49641, September 16, 1998), which
requires EPA to issue guidance to
address environmentally preferable
purchasing by the Federal government.
The guidance is designed to assist
Executive agencies with the
implementation of the environmentally
preferable purchasing provisions of
Executive Order 13101 and Section
23.704 of the Federal Acquisition
Regulations. The implementation of this
guidance will result in increased
purchases by the Federal government of
products and services which minimize
harmful effects on human health and
the environment.
FOR FURTHER INFORMATION CONTACT: For
information contact: Eun-Sook Goidel,
Office of Pollution Prevention and
Toxics, Pollution Prevention Division,
7409, Environmental Protection Agency,
401 M St., SW., Washington, DC 20460,
telephone: (202) 260-3296, fax: (202)
260-0178, e-mail:
goidel.eunsook@epa.gov.
SUPPLEMENTARY INFORMATION:
I. Does this Apply to Me?

*  You may be potentially affected by
this notice if you are an Executive
agency employee responsible for the
acquisition and use of products and
services. Those who produce and sell
products and services for use by the
Federal government may also find the
information in this notice to be of
interest. If you have any questions
regarding the applicability of this notice
to a particular organization, consult the
person listed in the "FOR FURTHER
INFORMATION CONTACT" section.
                   n. How Can I Get Additional
                   Information or Copies of this Document
                   or Other Documents?
                     For the convenience of the reader, the
                   final guidance is published below in its
                   entirety in Unit VII.
                     1. Electronically. You may also obtain
                   electronic copies of this document and
                   various support documents from the
                   EPA Internet Home Page at http://
                   www.epa.gov/. On the Home Page select
                   "Laws and Regulations" and then look
                   up the entry for this document under
                   the "Federal Register—Environmental
                   Documents." You can also go directly to
                   the "Federal Register"  listings at http:/
                   /www.epa.gov/fedrgstr/. Alternatively,
                   you can go to the Environmentally
                   Preferable Purchasing program's
                   website: http://www.epa.gov/opptintr/
                   epp.
                     2. In person. The Agency has
                   established an official record for this
                   action under docket control number
                   OPPTS-00149A. The official record
                   consists of the documents specifically
                   referenced in this action, any public
                   comments received during an applicable
                   comment period, and other information
                   related to this action, including any
                   information claimed as confidential
                   business information (CBI). This official
                   record includes the documents that are
                   physically located in the docket, as well
                   as the documents that are referenced in
                   those documents. The public version of
                   the official record does not include any
                   information claimed as CBI. The public
                   version of the official record, which
                   includes printed, paper versions of any
                   electronic comments submitted during
                   an applicable comment period, is
                   available for inspection in the TSCA
                   Nonconfidential Information Center,
                   North East Mall Rm. B-607, Waterside
                   Mall, 401 M St., SW., Washington, DC.
                   The Center is open from noon to 4 p.m.,
                   Monday through Friday, excluding legal
                   holidays. The telephone number for the
                   Center is (202) 260-7099.

                   EQ. Introduction
                     On September 14, 1998, President
                   Clinton signed Executive Order 13101,
                   entitled "Greening the Government
                   through Waste Prevention, Recycling
                   and Federal Acquisition." Section 503
                   of this Executive Order requires EPA to
                   establish guidance to "address
                   environmentally preferable
                   purchasing."
                     The guidance that is being made
                   available today is designed to help
                   Executive agencies meet their
                   obligations under Executive Order
                   13101 to identify and purchase
                   environmentally preferable products
                   and services. "Environmentally
preferable" is defined in section 201 of
the Executive Order to mean products or
services that have a "lesser or reduced
effect on human health and the
environment when compared with
competing products or services that
serve the same purpose." The guidance
is intended to draw on the extensive
procurement experience of the
Executive agencies and on the
environmental expertise of EPA and
others both within and outside of the
government. It provides a broad
decision-making framework for
environmentally preferable purchasing
and is a first step to help Executive
agencies systematically integrate
environmental preferability into the
Federal government's buying decisions.
IV. Background
  This Final Guidance on
Environmentally Preferable Purchasing
is based on EPA's September 1995
Proposed Guidance on the Acquisition
of Environmentally Preferable Products
and Service and the comments received
on that proposal. EPA announced the
availability of and sought comment on
the Proposed Guidance on the
Acquisition of Environmentally
Preferable Products and Service on
September 29, 1995 (60 FR 50721)
(FRL-4760-5). The process EPA used to
develop the proposed guidance is
described in that Federal Register
notice. In addition, lessons and insights
from early pilot projects have guided the
development of the Final Guidance.
  Since 1995, a variety of things have
occurred that will directly affect the
Federal government's environmentally
preferable purchasing practices.
Foremost are the 1997 revisions to the
Federal Acquisition Regulations that
incorporate policies for the acquisition
of environmentally preferable and
energy-efficient products and services.
These changes require the consideration
of environmental factors in all aspects of
Federal acquisition, including
acquisition planning (part 7),
conducting market surveys (part 10),
describing an agency's needs (part 11),
evaluating and selecting a vendor (parts
14 and 15), and contract administration
(part 42), as well as other provisions.
  Another milestone is the 1996
enactment of the National Technology
Transfer laid Advancement Act of 1995
(NTTAA) which requires the Federal
government to use consensus-based
industry standards when available
rather than creating a government-
unique stijndard.
  The acquisition streamlining reform
initiatives have also brought many
changes to the way the Federal
government purchases products and

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                     Federal  Register / Vol. 64, No. 161  /  Friday,  August 20,  1999  /  Notices
                                                                      45811
  services. One example is increased
  decentralization of the purchasing
  decision, best exemplified by the
  meteoric increase in credit card use by
  Federal agency personnel. The number
  of card holders increased from 10,000 in
  1989 to 250,000 in 1996 with the dollar
  volume increasing from $460,000 to
  close to $3 billion during the same time
  period. This trend highlights the
  importance of reaching out to those
  beyond the acquisition community with
  the environmentally preferable
  purchasing message.
    Another trend is the increased interest
  at all levels of government—local, state
  and foreign—in using the government's
  purchasing power as a policy tool to
  drive environmental improvement. This
  trend will likely accelerate the
  anticipated spill-over effect of
  environmentally preferable purchasing
  practices. Beyond the governments'
  interest, other large institutional
  purchasers—non-profits and individual
  companies-are also beginning to
  include environmental factors in their
  buying decisions.
  V. Lessions Learned
   In the years since the Proposed
,  Guidance was first issued, a number of
  pilot projects were initiated to
  demonstrate how EPA's Proposed
  Guidance could be applied to specific
  product categories. Though limited in
  number, these projects have provided
  important insights into the development
  of the Final Guidance as well as the
 direction of EPA's Environmentally
 Preferable Purchasing program.
   First; it is important to have the
 participation of both the environmental
 and the acquisition/procurement
 personnel. The acquisition of
 environmentally preferable products
 and services in the Federal government
 context involves both defining what is
 environmentally preferable for a given
 product or service and ensuring that the
 procurement process encourages the
 purchases of these products. Innovative
 approaches that leverage the expertise of
 the environmental and procurement
 experts is essential to accomplishing
 these tasks and institutionalizing
 environmentally preferable purchasing
 practices.
   Second, on a very positive note, early
 pilots have shown that vendors
 understand that providing a broad range
 of environmental information is an
 important part of doing business with
 the government and that it can serve as
 a competitive advantage. Generally
speaking, however, information about
environmental performance of products
and services, particularly along the
various life cycle stages, and easy-to-use
  tools to assess environmental
  performance remain scarce, limiting the
  wide-spread adoption of
  environmentally preferable purchasing.
  This is likely to change as Executive
  agencies begin to implement the  '.
  changes to the Federal  Acquisition
  Regulations and as agencies begin to use
  information and technical ejcpertise of
  non-governmental entities.
   Lastly, early pilots indicate that there
  is not a single, "one size fits all,"
  approach to incorporate environmental
  preferability into Federal acquisition.
  Using common sense, we need to tailor
  our approach and level of analysis to fit
  the complexity of the product and
  service categories being purchased.
   Much progress has been made since
  Executive Order 12873  was issued in
  October 1993. A number of pilot
  projects have been implemented by key
  purchasing agencies that have provided
  valuable insights and lessons on ways to
  integrate environmental considerations
  into the Federal procurement process.
 These pilots have helped to identify
 gaps in information and tools. Future
 pilots will be instrumental in guiding
 both EPA's and other Executive
 agencies' efforts in environmentally
 preferable purchasing. As EPA and the
 other agencies move forward, the debate
 about the appropriate approaches and
 goals will likely continue. This is
 desirable given the dynamic nature of
 the issue. Based on feedback from all
 stakeholders, EPA will continue to test
 a variety of approaches and develop and
 refine tools to allow agencies to more
 readily apply the concepts of
 environmental preferability iin
 government purchasing decisions.
 VI. Major Changes to the Guidance
  This section describes some of the key
 changes made to the 1995 Proposed
 Guidance. EPA has also  prepared a more
 detailed Response to Comment
 document, which has been included in
 the public record for this guidance.
 A. Guidance Framework
  The Guidance framework remains
 largely unchanged and includes an
 introduction (Section I),  intended
 audience (Section II), approach (Section
 III), a set of guiding principles (Section
 IV), suggested steps for Executive
 agency implementation (Section V), and
 appendices (Section VII). A new section,
 Section VI, lists available resources and
 tools related to environmentally
preferable purchasing.

B. Guiding Principles
  A number of changes have been made
to the guiding principles, including the
addition of a new principle and the
  merging of a number of principles. As
  a result, the Final Guidance now has
  five, rather than seven, guiding
  principles. Taken together, the
  principles are intended to provide a
  broad guide to help Executive agency
  purchasers address environmental
  preferability in acquisition of products
  and services. Specifically, the following
  changes have been made:
    1. A new principle on product safety,
  price, environmental considerations,
  performance and availability has been
  added as Principle #1 and reads:
   Environmental considerations should
  become part of normal purchasing practice
  consistent with such traditional factors as
  product safety, price, performance, and
  availability.
   This was in response to a number of
  comments requesting more emphasis be
  placed on the point that the addition of
  environment is  not in lieu of traditional
  purchasing factors. Although the
  original proposal noted this, the
  addition of this  new principle should
 send a clearer message on the
 importance of putting environmental
 considerations in the context of other
 purchasing factors.
   2. The guiding principles on life cycle
 and multiple attributes have been
 collapsed into one principle (Principle
 #3) and reads:
   A product's or service's environmental
 preferability is a function of multiple
 attributes from a life cycle perspective.
   This change is based on comments
 and also EPA's strong belief that the two
 concepts are integral in determining
 environmental preferabiliry. The
 discussion that follows the guiding
 principle has also been modified to
 reflect that although the determination
 of environmental preferability should be
 based on multiple attributes, the
 purchasing decision may at times be
 based on a single attribute.
   3. The guiding principles on impacts
 and local conditions*have been
 modified and collapsed into one
 principle (Principle #4) and reads:
  Determining environmental preferability
 may involve comparing environmental
 impacts. In comparing environmental
 impacts, Federal agencies should consider:
 the reversibility and geographic scale of the
 environmental impacts, the degree of
 difference among competing products or
 services, and the overriding importance of
 protecting human health.
  This change was made to remove the
 perceived conflict between the two
 original principles and to provide
purchasers with more guidance on how
to assess relative impacts. The original
principles were intended to convey that,
in general, global and irreversible

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Federal Register / Vol. 64, No.  161 / Friday, August 20, 1999  /Notices
environmental impacts should be given
greater weight in determining
preferability than local and rapidly
reversible environmental impacts.
However, we also recognize that there
may be situations in which there are
unique mitigating circumstances locally,
and in those cases, the purchaser can
make the judgement that the local
conditions and impacts should be given
priority.
  4. The principles on competition and
product attribute have been revised and
a new principle (Principle #5) on
environmental information has been
added. It reads:
  Comprehensive, accurate and meaningful
information about the environmental
performance of products or services is
necessary in order to determine
environmental preferability.
  This revision was based on lessons
from the pilots and reflects the
importance of having relevant
environmental information for
determining environmental
preferability. The discussion related to
competition which originally appeared
under guiding Principle #6 is now
captured under guiding Principle #1.
C. Federal Agency Implementation
  A number of changes have been made
to facilitate Executive agency
                    implementation of environmentally
                    preferable purchasing, including:
                      1. EPA recommends that Executive
                    agencies look to EPA's list of the top 20
                    prioritized product categories to focus
                    their pilot projects. The description of
                    this list is included in Section VI of the
                    Final Guidance and the complete list is
                    available on EPA's Environmentally
                    Preferable Purchasing Program's
                    website: www.epa.gov/opptintr. The
                    prioritized list was developed pursuant
                    to Section 503 (a) of Executive Order
                    13101 which states that EPA's guidance
                    "should be.. .targeted towards products
                    and services that have the most effect."
                      2. In implementing pilot projects, EPA
                    recommends, pursuant to section
                    503(b)(2) of Executive Order 13101, that
                    agencies use all of the options available
                    to determine environmentally preferable
                    attributes of products and services in
                    pilot projects, including the use of
                    technical expertise of non-governmental
                    entities such as labeling, certification, or
                    standards developing organizations.
                    Additional guidance on the use of these
                    organizations is elaborated in the Office
                    of Federal Environmental Executive and
                    EPA's April 1998 policy letter. The full
                    text of this policy letter has been added
                    as Appendix E.
                      3. EPA recommends that agencies
                    document their pilot efforts. In order to
facilitate this, the Final Guidance
includes a sample case study template
(Appendix E).

D. Appendices

  A number of changes have been made
to this section, including:
  1. The addition of three new items:
  i. Sample Policy Directive (Appendix
C).
  ii. Full Text of April 1998 Policy
Letter on Non-governmental Entities
(Appendix: D).
  iii. Sample Case Study Template
(Appendix: E).
  2. The deletion of the original
Appendix D, "A Summary of the
Federal Trade Commission's Guides to
the Use of Environmental Marketing
Claims." The Guides were updated in
May 1998  and the information on how
to access the most recent Guides is now
included in Section VI—Resources.

VII. Final  Guidance on
Environmentally Preferable Purchasing
for Executive Agencies

  For the convenience of the reader, the
final guidance is published below in its •
entirety.
BILLING CODE: esso-so-F

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           Federal Register / Vol. 64, No. 161 / Friday, August 20, 1999 / Notices
45813
      Final Guidance on Environmentally Preferable Purchasing

Table of Contents

I.    Introduction

II.    Intended Audience of This Guidance

HI.   Overall Approach for Implementing Executive Order 13101

 IV.   Guiding Principles

V.    Executive Agency Implementation

VI.   List of Resources

      A. EPP Web Site
      B. Federal Case Studies of Environmentally Preferable Purchasing
      C. Life Cycle-Based Resources
      D. Agency Environmental Catalogs
      E. Federal Trade Commission's Guides on the Use of Environmental Marketing Claims
      F. Office of Federal Environmental Executive Web site
     . G. Other Resources and Tools

VII.   Appendices

      Appendix A  Glossary of Terms
      Appendix B   Environmental Attributes
                   (1) Menu of Environmental Attributes
                   (2) Definitions for Environmental Attributes
      Appendix C   Sample EPP Policy Directive
      Appendix D   Text of Policy Letter on Use of Non-Governmental Entities Issued By the
                   Office of Federal Environmental Executive and U.S. Environmental
                   Protection Agency, April 1998
      Appendix E   Pilot Project Case Study Template

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Federal Register / Vol. 64, No. 161 / Friday, August 20,  1999 /Notices
                Guidance on Environmentally Preferable Purchasing

     I. Introduction

           On September 14,1998, President Clinton signed Executive Order (EO)13101, entitled
     "Greening the Government through Waste Prevention, Recycling and Federal Acquisition."
     Executive Order 13101 (EO 13101) supersedes EO 12873, Federal Acquisition, Recycling and
     Waste Prevention, issued on October 20,1993, but retains a similar requirement for the U.S.
     Environmental Protection Agency (EPA) to develop guidance to "address environmentally
     preferable purchasing." (Section 503, EO 13101) The Final Guidance that follows is based on
     EPA's September 1995 Proposed Guidance on the Acquisition of Environmentally Preferable
     Products and Services (60 FR 50721, September 29,1995) and comments received on that
     Proposed Guidance as well as lessons learned from pilot projects conducted to date.

           The Final Guidance below is designed to help Executive agencies meet their obligations
     under EO 13101 to identify and purchase environmentally preferable products and services.
     Section 503 (c) of EO 13101 directs Executive agencies to "use the principles and concepts in the
     EPA Guidance on Acquisition of Environmentally Preferable Products and Services, in addition
     to the lessons from the pilot and demonstration projects to the maximum extent practicable, in
     identifying and purchasing environmentally preferable products and services" and "modify their
     procurement programs as appropriate." Furthermore, Section 23.704 of the Federal Acquisition
     Regulation requires agencies to "affirmatively implement" the objective of "obtaining products
     and services considered to be environmentally preferable (based on EPA-issued guidance)."

           "Environmentally preferable" is defined in Section 201 of EO 13101 to mean products or
     services that "have a lesser or reduced effect on human health and the environment when
     compared with competing products or services that serve the same purpose. This comparison
     may consider raw materials acquisition, production, manufacturing, packaging, distribution,
     reuse, operation, maintenance or disposal of the product or service."
                                                                    •
           Implementation of the Final Guidance will draw on the procurement experience of the
     Executive agencies and on the environmental expertise of EPA and other organizations both
     within and outside of the Federal government. This guidance provides a broad framework of
     issues to consider in environmentally preferable purchasing and will help Executive agencies
     systematically integrate environmental preferability principles into then- buying decisions.

           The guidance is not however, a step-by-step, "how to" guide and it is not intended to
     answer many of the specific questions that might arise in the acquisition of a particular product
     category or service. The list of resources in Section VI provides more specific  guidance and
     information about various product and service categories, environmental attributes that have been
     identified for them, and the approaches used to consider those attributes in acquisition decisions.
     For the latest information on other resources and tools under development, Executive agency
     personnel and others are directed to EPA's Environmentally Preferable Purcliasing Program
     Web site at:

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             Federal Register / Vol. 64, No. 161  / Friday, August 20,  1999 / Notices           45815
        The Final Guidance strives to meet the National. Performance Review and procurement
 reform goals of simplifying and streamlining Federal purchasing while recognizing that the
 definition of "environmentally preferable" will likely require the consideration of different
 environmental factors as appropriate for different situations. ;In sum, the guidance:

        •       Applies to all acquisition types, from supplies and services to buildings and
               systems.

        •       Provides a set of guiding principles.

        •       Requests Executive agencies to select and implement pilot acquisitions or
               demonstration projects.

        •       Provides a framework for Executive agencies to implement the environmentally
               preferable purchasing provisions of EO13101.

 II. Intended Audience for the Guidance

        The target audience of this guidance includes all Executive agency employees involved in
 the acquisition of supplies, services, systems,  and/or facilities. The general guidance and the
 information generated by the pilot projects also will be useful to Executive agency employees
 who request, maintain, or use the supplies, services, systems and facilities.  In addition, both the
 general guidance and the pilot project information should provide pragmatic direction for private
 sector businesses who wish to manufacture, market, or provide environmentally preferable
 products and services for use by the Federal government.

 III.  Overall Approach for Implementing Executive Order 13101

       Section 503 of EO 13101 has two key components: (1) development of this guidance; and
 (2) implementation of the guidance through pilot and demonstration projects.  This guidance
 sets a broad policy framework for implementing environmentally preferable purchasing within
 the context of Federal government. For the second component, Section 503 (b) of the EO states
 "[A]gencies are encouraged to immediately test and evaluate the principles and concepts
 contained in the EPA's Guidance—through pilot projects...". These pilots may be undertaken
 using the in-house expertise of EPA and other Executive agencies, as well as the technical  .
 expertise of nongovernmental entities, including, but not limited to, voluntary consensus
 standards bodies (see§ 12(d) of the National Technology Transfer and Advancement Act (Pub. L.
 104-113, §12(d), 15 U.S.C. 272 note), environmental standard setting organizations, third party
 certification programs, environmental labeling or environmental "report card" programs, and
 other environmental consulting organizations.  Section V of this Final Guidance provides more
 detail about how these pilot projects might work. These pilots are expected to yield more
 specific and practical information about applying this Final Guidance to purchases of particular
products and services.

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            In addition to promoting environmentally preferable purchasing, EO 13101 encourages
     Executive agencies to purchase bio-based products. (Section 504 (b)). Under the EO, "biobased
     product" means "a commercial or industrial product (other than food or feed) that utilizes
     biological products or renewable domestic agricultural (plant, animal and marine) or forestry
     materials."

            Bio-based products may also be environmentally preferable.  Made from renewable
     resources by definition, these products have many positive environmental aspects and should be
     considered by agencies looking to make environmentally preferable purchases.  However,
     Federal purchasers should not assume all bio-based products are automatically environmentally
     preferable.  As with other products, Executive agencies should consider a range of environmental
     impacts associated with bio-based products when making purchasing decisions.  In  some cases,
     factors such as pesticide use or high water consumption might make a bio-based product less
     environmentally preferable.  The list of bio-based products which the U.S. Department of
     Agriculture will issue under Section 504 of EO 13101 will be a good starting point for Executive
     agencies looking to identify environmentally preferable purchasing.  During the development of
     pilots under Section 503 (b) of the EO, EPA will look for opportunities involving bio-based
     products.

     IV. Guiding Principles

            EPA has developed five guiding principles to provide broad guidance for applying
     environmentally preferable purchasing in the Federal government setting.  Applicability of these
     principles in specific acquisitions will vary depending on a variety of factors, such as: the type
     and complexity of the product or service being purchased; whether or not the product or service
     is commercially-available; the type of procurement method used (e.g., negotiated contract, sealed
     bid, etc.); the tune frame for the requirement; and the dollar amount of the requirement.

            In all acquisitions, Executive agency personnel use their professional judgement and
     common sense, whether assessing a product or service's performance, cost, or availability.
     Similarly, in applying these environmentally preferable principles Executive agency personnel
     should use reasonable discretion about the level of analysis needed to determine environmental
     preferability. For example, an extensive life cycle assessment might not be conducted to
     purchase rubber bands. On the other hand, for large-volume or systems acquisitions, or for
     complex products, such assessments may be appropriate, and might already be required. Or, in
     some cases, much of the information upon which to build such an analysis might have already
     been collected.

            Guiding Principle 1: Environment + Price + Performance = Environmentally
            Preferable Purchasing

            Environmental considerations should become part of normal purchasing practice,
            consistent -with such traditional factors as product safety, price, performance, and
            availability.

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45817
 The manufacture, use, and disposal of certain products might have adverse impacts on
 human health and the environment. These impacts impose costs that the purchasing
 entity, and ultimately, society as a whole, end up paying for in one way or another. For
 the Federal government, the hazardous or toxic nature of a product or service can result in
 significant cleanup or liability costs, as well as in less directly quantifiable, but
 cumulative and persistent environmental damage. Even non-hazardous waste is
 associated with ever-increasing disposal costs that can be avoided or reduced.
 Responsible management, beginning with the initial purchase of products and services
 that minimize environmental burdens, can diminish the Federal government's raw
 material, operating, maintenance, and disposal costs.  In addition, a product or service's
 environmental preferability can often have positive impacts on its overall performance.

 For these reasons, the Federal government's purchasing decisions are no longer confined
 to considerations of price and functional performance but should include considerations
 of environmental performance as well.  Today agencies can obtain improved
 environmental attributes not at the expense of, but instead may operate in concert with,
 other traditional factors like price and functional performance. Those product or service
 providers who can optimize all these factors will capture and maintain the largest market-
 share of government customers.

 Just like price, performance, and health and safety, environmental factors should be a
 subject of competition among vendors seeking government contracts. In turn, this
 increased competition among vendors should stimulate continuous environmental
 improvement and increase the availability of environmentally preferable products and
 services. The purpose of this guidance is to encourage Executive agencies to award
 contracts to companies that take environmental concerns into account. This process,
 consequently, will lead to the development of environmentally preferable products and
 services that perform better and cost less because they reduce waste and negative
 environmental impacts.  As stated, this principle reflects the spirit of a number of
 reinvention initiatives at EPA and across the Federal government aimed at testing cleaner,
 cheaper, and smarter approaches to environmental protection.

 Agencies have considerable discretion in incorporating environmental preferability into
 procurement decisions, especially within the context of "best value" contracting.  For
 example, environmental considerations that result in payment of a price premium for
 goods or services may be reasonably related to an agency's definition of its "minimum
 needs" and, therefore, may be permissible. This is not much different than paying a
 higher price for better performance or quality. Federal personnel may consider paying a.
reasonable premium for environmentally preferable products on a number of grounds.
For example, a reasonable price premium may be justified because the environmental
attributes of a product or service provide offsetting reductions in operating and disposal
costs.

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Federal Register /  Vol. 64, No.  161 / Friday, August 20, 1999 / Notices
            Guiding Principle 2: Pollution Prevention
                                                                            I
            Consideration of environmental preferability should begin early in the acquisition
            process and be rooted in the ethic of pollution prevention, which strives to eliminate or
            reduce, up-front, potential risks to human health and the environment.

            It is never too early in the acquisition process to begin considering environmental
            preferability. Pollution prevention, the reduction or elimination of waste at the source,
            can not only reduce pollution, but it can save money for agencies as well. Defense and
            civilian Federal agencies have ongoing programs for pollution prevention under EO
            12856 and other authorities that can result in cost savings throughout the product or
            service life cycle. Furthermore, pollution prevention measures can lead to a higher
            degree of environmental protection by reducing subsequent costs for disposal or cleanup
            of hazardous wastes and materials. A key reason for environmentally preferable
            purchasing is to protect the environment by reducing waste and pollution at the source
            with the resulting benefit of reduced overall cost to the government and the public
            (taxpayers and society as a whole).

            Under this guiding principle, pollution prevention should be the primary motivation and
            strategy for the Federal government's implementation of environmentally preferable
            purchasing. There are many ways to apply pollution prevention to the acquisition
            process:

            a) Customized purchases or projects in which program managers, architects, engineers,
            systems designers, or others have input into the design phase afford agencies an early
            opportunity to  apply environmentally preferable concepts. In addition, early involvement
            offers agencies a unique point of leverage from which to address environmental impacts.
            Although these types of purchases are not the bulk of Federal acquisition requirements,
            the early stage of qustomized product or project design is the time when decisions about
            different approaches, materials, and manufacturing processes are made. Estimates show
            that 70 percent or more of the costs associated with product development, manufacture,
            and use are determined during the initial design stages.1 By incorporating environmental
            factors during product or service design, Federal agencies can minimize environmental
            problems and their associated costs. For example, early environmental consideration
            helps agencies avoid potential liabilities due to fines as well as the costs of record
            keeping and reporting.

            b) During the early stages of acquisition, Executive agency personnel ican also apply a
            systems analysis approach for certain products or services (such as computers, buildings,
            and transportation systems) hi which a number of components have interdependent
            functions.  A systems analysis approach takes into consideration the full set of product
             JU.S.  Congress, Office of Technology Assessment, Green products by Design: Choices for a Cleaner
      Environment, OTA-E-541 (Washington, D.C.:U.S. Government Printing Office, October, 1992)

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         Federal Register / Vol. 64, No. 161 / Friday, August 20, 1999 / Notices
                                                  45819
 elements, focusing on how they
 interact from a life cycle perspective
 and helping to identify the most
• efficient options for meeting the
 government's needs.

 c) Executive agency personnel might
 also appropriately ask whether a
 product or a service is even necessary
 or can be replaced by a less damaging
 process. For instance, in degreasing
 operations, questions arise as to
 whether an efficient cleaner using
 halogenated solvents is better or
 worse for the environment than an
 aqueous-based cleaner.  A more
 appropriate question may be whether
 the cleaning/degreasmg step can be
 eliminated without affecting the
 overall performance of the product or
 system. This might be accomplished,
 for example, by consolidating
 cleaning and degreasing in a later
 stage of the manufacturing process or
 changing  the process itself. As this
 example illustrates, environmental
 preferability does not just involve
 substituting a "green" product for
 another. It also involves questioning
 whether a function needs to be
 performed and how it can best be
 performed to minimize negative
 environmental impacts.
 The  Department  of Defense  integrates  pollution
 prevention  into all  of its major weapons  system
 acquisition programs. For example, the New Attack
 Submarine (NSSN) Program has worked to include
 environmental  considerations  in  all  phases  of the
 submarine's life cycle, from initial design to eventual
 disposal some 30 or more years later.

 By considering all viable environmental alternatives
 during the design phase, the NSSN Program identified a
 number of options that will result in benefits. Just a few
 examples are listed below:

 •   A redesigned nuclear reactor core will eliminate the
    need for refueling and disposal of spent nuclear fuel,
    while achieving  a  multi-million  dollar  cost
    avoidance.  !
 •   31 percent reduction in the number of paints and
    coatings used  in manufacturing the NSSN while
    ensuring that  all of the selected paints  satisfy
    applicable  .performance   and  environmental
    requirements.
 •   61 percent reduction in the number of adhesive
    products to be  used on the NSSN compared to the
    number required for previous submarine classes.
 •   80 percent reduction in the number of solvents and
    cleaners.
 •   Research and development effortto identify and test
    a biodegradable hydraulic fluid for submarines to
    replace the current toxic mineral oil-based fluid.

 By recognizing  early on that the key  to  reducing
 environmental impact throughout the ship's life cycle is
pollution prevention and hazardous material control and
management, the NSSN Program was able to design a
submarine that meets strict safety and performance
requirements, achieves significant cost savings,  and
minimizes risk to the environment.
 Guiding Principle 3: Life Cycle Perspective/Multiple Attributes

 A product or service's environmental preferability is a Junction of multiple attributes
from a life cycle perspective.

 Federal agencies should consider the following concepts in applying this principle :

 a) Life cycle perspective—A product or service has environmental impacts long before
 and after the Federal government purchases and uses it. The manufacture, use,

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Federal Register / Vol. 64, No.  161 / Friday, August 20,  1999  / Notices
            distribution, and disposal of products create a variety of burdens on the environment.
            Federal agencies should strive to purchase products or services with as few negative
            environmental impacts in as many life cycle stages as possible. In other words, Federal
            agencies should determine the "environmental preferability" of a product or serviee by
            comparing the severity of environmental damage it causes throughout its life cycle with
            that caused by competing products—from the point of raw materials acquisition, product
            manufacturing, packaging, and transportation to its use and ultimate disposal. By doing
            so, the Federal government can minimize the overall environmental impacts of products
            and services. In addition, by actively seeking and considering life cycle information to
            inform buying decisions, Executive agency personnel can send a clear signal that
            government business will go to those who consider the effect of their product's life cycle
            on the environment.

                            Life Cycle Stages of a Typical Product
            Although most people would agree that considering life cycle impacts in purchasing
            decisions is desirable, there are disagreements on how to make purchasing decisions that
            best reflect a life cycle perspective. Even the term "life cycle" is interpreted differently
            by'different people. To some, it connotes an exhaustive, extremely time-consuming, and
            very expensive analysis. To others, a life cycle perspective is possible iin an abbreviated
            process, in which a long list of potential environmental attributes and/or impacts is
            narrowed to a few, allowing for comparison across a particular product category. In
            addition, the ability of Federal purchasers to make buying decisions from a life cycle
            perspective depends on a variety of factors including: the type of product or service being
            purchased; the availability of life cycle information and/or willingness by the provider to
            give the information; and the availability of easy-to-use tools that can translate this
            information to support purchasing decisions by the Federal government. EPA recognizes
            that agencies may find it easier to apply a life cycle perspective when the result will be
            internal agency environmental benefits and/or cost savings rather than external benefits.
            Nevertheless, EPA encourages agencies to consider reducing impacts ailong all stages of
            the product or service life cycle.

            This guidance promotes the use of a range of practices, from life cycle considerations to a
            more rigorous, scientifically defensible life cycle assessment methodology. EPA
            encourages Executive agencies to use currently available tools as well as help refine and
            address the needs of Federal purchasers. Examples of available tools and references are

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        Federal Register /  Vol. 64, No. 161 / Friday. August 20, 1999 / Notices
45821
 listed in Section VI. For the most current list of available tools, Executive agency
 personnel are referred to EPA's EPP Program Web site: .
 EPA also encourages experts both within and outside of the Federal community to
 develop additional life cycle tools to support environmental preferability decisions." "'

 b) Multiple environmental attributes — Environmental preferability should reflect the
 consideration of multiple environmental attributes such as increased energy efficiency,
 reduced toxicity, or reduced impacts on fragile ecosystems. In addition, these attributes
 should be considered from a life cycle perspective. Focusing on one environmental
 attribute of a product or a service, without considering others, might inadvertently
 exclude important impacts on the determination of environmental preferability.  For
 example, improving one attribute (e.g., increased energy efficiency or reduced toxicity)
 may result in other unintended environmental life cycle impacts. It is also possible that
 focusing on a single aspect of the product or service will cause Executive agency
 personnel to overlook improvements that the vendor has or can make in other aspects of
 the product or service.  In short, it is difficult to be confident that an alternative product is
 environmentally preferable without some consideration of multiple attributes from a life
 cycle perspective. Analytical tools such as life cycle assessment can help Federal
 agencies ensure the product or service they purchase does not create new problems for
 some other aspect of the environment by identifying other potential negative impacts that
 should be alleviated.

 Although the determination of environmental preferability should be based on multiple
 environmental attributes, Federal agencies may at limes make purchasing decisions based
 on a single attribute when that attribute distinguishes the product or service in a category.
 In its environmentally preferable purchasing effort, EPA aims to build upon those
 attributes that are well-defined, measurable and familiar to Federal purchasers (e.g.,
 recycled content and energy  efficiency). EPA also seeks to support the development of
 similar definitions and measures for other attributes that are less understood and to
 advance consideration of multiple environmental attributes in purchasing decisions.

 The menu of environmental attributes described hi Appendix B offers a preliminary look
 at what  should be considered in environmentally preferable purchasing decisions. Many
 of the attributes are relevant to a number of different product life cycle stages, while
 others are more pertinent to one particular stage. The menu should serve as a means to
 inform Executive agency personnel about the different types of attributes that can make a
 product or service environmentally preferable. Each and every element in the menu is not
 meant to be applicable to all products and services nor is the menu all-inclusive
Guiding Principle 4: Comparison of Environmental Impacts

Determining environmental preferability might involve comparing environmental
impacts.  In comparing environmental impacts. Federal agencies should consider: the
reversibility and geographic scale of the environmental impacts, the degree of difference

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Federal Register / Vol.  64, No. 161 / Friday, August 20,  1999 /  Notices
            among competing products or services, and the overriding importance of protecting
            human health.

            In determining environmental preferability, Executive agency personnel might need to
            compare the various environmental impacts among competing products or services. For
            example, would the reduced energy requirements of one product be more important than
            the water pollution reductions associated with the use of a competing product?  The ideal
            option would be a product that optimized energy efficiency and minimized water
            pollution.  When this is not possible, however,  Executive agency personnel will have to
            choose between the two attributes. It is important to consider both the nature of the
            environmental impact and the degree of difference among competing products.

            There is no widely accepted hierarchy that ranks the attributes or environmental impacts
            that are most important. The following three factors are intended to help Executive
            agency personnel analyze the environmental impacts of competing products and services
            and make decisions about environmental preferability when faced with trade-offs among
            environmental attributes. These factors are not listed in order of importance.

                   a) Recovery time and geographic scale—Federal agencies should consider
                   recovery time and geographic scale in comparing environmental impacts. To
                   what extent is an environmental impact reversible? An impact is less acceptable
                   if the recovery time is longer.2  The geographic scale of the problem and the
                   importance of the affected ecosystems are also significant. Global environmental
                   impacts are more significant, therefore, than ecological stressore that have a local
                   or regional ecosystem impact.3
                                                                   :     •      i
                   The table shown below provides a basic framework for considering the
                   reversibility and geographical scale of environmental impacts and includes some
                   examples of how certain impacts might fit into the matrix.

                   While some environmental standards or other sources of comparative information
                   on products are national or international in  scope, Federal agencies should also be
                   prepared to consider unique local impacts and site-specific uses.  Information
                   based on an assessment of national or global needs, by its nature, rarely allows for
                   the consideration of local impacts associated with how products are used,
             2T!iis is based on the findings of the Science Advisory Board, published in its 1990 report entitled "Reducing
      Risk: Setting Priorities and Strategies for Environmental Protection," a statement of policy on priority pollutants
      affecting environmental and public health. In this report, environmental stressors were judged to be significant based
      on two primary criteria—the geographic scale and degree of reversibility of the impact.

             The Science Advisory Board is a public advisory group providing extramural scientific information and advice
      to the Administrator and other officials of the Environmental Protection Agency. The Board is structured to provide
      balanced, expert assessment of scientific matters related to problems facing the Agency.

             3Refer to above footnote.

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Federal Register / Vol. 64, No. 161 /  Friday, August 20, 1999 / Notices
45823
  recycled, and/or discarded. Executive agency personnel are encouraged to
  consider local factors, where they are relevant, and not rely exclusively on
  national or global information.  For example, although it may be generally
  accepted that an aqueous-based degreaser is preferred over a halogenated solvent
  degreaser, the environmentally preferable purchasing decision may depend on
  whether there is sufficient local wastewater treatment capacity to deal with the
  aqueous waste.

  There may be rare occasions where the goal of minimizing a local impact, such as
  smog, is in conflict with the goal of minimizing a global impact, such as ozone
  depletion and global climate change. In these instances, EPA encourages
  purchasers to engage as much as possible in applying Principle #2 and aiming to
  prevent pollution, thereby avoiding such trade-offs. Where there are unique local
  circumstances, the purchaser can make the judgment that the local conditions and
  impacts should be given priority.
        ECOLOGICAL PRIORITY IMPACTS MATRIX
Geographic
Scale
Reversibility

Local/Regional
National
Global
Years
* Erosion
* Conventional Pollutants
•Hazardous Air Pollutants
* Chemical Releases

Decades

* Bioaccumulative
Pollutants

Centuries/ Indefinite


* Loss of biodiversity
* Ozone Depleting Chemicals
* Global Wanning Gases
    »....»*.a ivrr wojjipiwa vi uvw w&iuuii cuviiumiiciiuii MrcsMjra ana impacts migni
 the different categories of reversibility and geographic scale considerations and is not meant to be
 comprehensive.
 b) Differences among competing products—In some situations, a purchaser may
 determine preferability by looking at the differences of environmental
 performance among competing products, rather than by comparing environmental
 problems. Guiding Principle 3 addresses the importance of identifying relevant
 attributes for a product. There might be significant differences among competing
 products for some of these attributes, while for others, the differences could be
 minimal. In purchase comparisons, Executive agencies might prefer the product
 or service that provides a significant improvement over competing products,
 without making a determination that one environmental problem is more
 significant than another. For example, a product that significantly reduces

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Federal Register / Vol. 64, No. 161 / Friday, August 20, 1999 / Notices
              toxicity might be preferable to one that makes a minimal reduction in waste
              reduction.
               c) Human health -A product or a service should be at least equivalent to
              comparable	
              products/services in
              protecting human health to
              be considered
              environmentally
              preferable. EPA's
              Science Advisory Board
              listed the environmental
              factors listed to the right as
              significant contributors to
              human health risks.
                          List of High Priority Human Health Stressors
                          (not in any order of importance):

                                 Ambient air pollutants
                                 Hazardous air pollutants
                                 Indoor air pollution
                                 Occupational exposure to chemicals
                                 Bioaccumulative pollutants
        EPA recognizes that Executive agencies considering these three factors ( recovery time
        and geographic scale; differences among products; and human health) must rely on
        providers of products and services to supply practical environmental information on
        products. EPA encourages organizations that provide environmental standards or other
        types of comparative product information to consider these factors in evaluating and
        reporting environmental information for purchasers.
        Guiding Principle 5: Environmental Performance Information

        Comprehensive, accurate, and meaningful information about the environmental
        performance of products or services is necessary in order to determine environmental
        preferability.
                                                                          |
        a) Importance of Environmental Information — Executive agency personnel will need
        comprehensive, accurate and meaningful life cycle-based information about the
        environmental characteristics of products and services in order to evaluate whether one
        product or service is more or less damaging than another. Even with this thorough
        information, however, making these evaluations can be difficult.  Yet, without such
        information, determinations of environmental preferability are even more challenging.
        Executive agency personnel are encouraged to seek, and product and service providers
        are encouraged to provide, life cycle-based information about the environmental
        performance of products and services.  This information should be sought and provided in
        all appropriate stages of the acquisition process including, but not limited to market
        surveys, request for proposals, etc.  (See Federal Acquisition Regulation, (FAR) 48
        C.F.R. Subpart 23.7, which includes a mandate for the acquisition of environmentally
        preferable and energy-efficient products and services.

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            Federal Register / Vol. 64, No. 161 / Friday, August 20, 1999 / Notices	45825

       Executive agency purchasers may encourage product and service providers to describe
       their product or service's performance according to the menu of environmental attributes
       included in Appendix B (1).

       Product and service providers' disclosure of environmental information about their
       products and services will also foster competition and encourage a market-driven
       approach to environmental improvement. The accessibility of the information to the
       public (both Executive agency personnel and the general public) will help ensure its
       accuracy and credibility.

       b) What/How Information is Conveyed - A number of resources about the environmental
       performance of products or services are currently available. Two general categories of
       information sources can be distinguished: (1) manufacturers who provide environmental
       information (e.g., environmental claims, product profiles, etc.) about their products either
       on the label or through product literature, including advertisements; and (2)
       environmental information compiled, evaluated, and reported by non-governmental
       entities. Included in this second category are third-party certification programs that
       evaluate the environmental aspects of products, and award symbols (e.g., "seals-of-
       approval") or compile "report cards" of environmental information.  Non-governmental
       entities may also verify specific claims made by manufacturers (e.g., paper contains 30
       percent recycled content).

       Information conveyed through claims and seals can help Executive agency personnel
       identify environmentally preferable products, depending on the types of products being
       purchased and the legal acquisition requirements involved. A more detailed discussion of
       how Executive agencies can use technical expertise and research of non-governmental
       entities in their environmentally preferable purchasing practices is included in Section V
       and Appendix D. In evaluating the environmental attribute claims made by anyone,
       whether they are manufacturers, vendors, or other non-governmental entities, Executive
       agency personnel should refer to the Federal Trade Commission's (FTC's) "Guides for
       the Use of Environmental Marketing Terms." (Green Guides.)

V.  Executive Agency Implementation

       This section recommends steps that each agency can take to implement the
environmentally preferable purchasing provisions of EO 13101.


A. Policy directive and affirmative procurement plans

       Recognizing that effective implementation of environmentally preferable purchasing will
require clear direction and support from the top levels of each agency, this Final Guidance
recommends that each Executive agency issue a Policy Directive promoting the practice.  A
sample is included in Appendix C.  The policy directive should include the elements listed
below:

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Federal Register / Vol. 64, No. 161 / Friday, August 20,  1999 / Notices
           An overall statement of policy:

           •      Agency personnel should seek to reduce the environmental damages associated
                  with their purchases by increasing their acquisition of environmentally preferable
                  products and services to the extent feasible, consistent with price, performance,
                  availability, and safety considerations.

           •      Environmental factors should be taken into account as early as possible in the
                  acquisition planning and decision-making process. (See EO 1.3101, Section 401.)

           •      Responsibility for environmentally preferable purchasing should be shared among
                  the program, acquisition, and procurement personnel.

           A commitment to the following:

           •      Increasing the acquisition of environmentally preferable products and services.
                  (See EO 13101, Sections 102,503 (.c), and 602.)

                  Under section 6002 of the Resource Conservation and Recovery Act of 1976 and
                  FAR Subpart 23.4, procuring agencies are required to establish affirmative
                  procurement programs for purchasing EPA-designated recycled products. EPA
                  recommends that agencies expand the scope of their affirmative procurement
                  programs to include environmentally preferable products and services.  EO
                  13101, Section 302, (a)(lXa) calls for a Strategic Plan to include the "direction
                  and initiatives for acquisition of recycled and recyclable products and
                  environmentally preferable products and services." Furthermore, Section 302 (b)
                  (1) requires Agency Environmental Executives to "translate [this] Government-
                  wide Strategic Plan into specific agency and service plans."

           •      Identifying and implementing pilot projects (See Section V (B) below).

           •      Establishing internal agency incentive and award programs to recognize those
                  people, teams, and interagency work groups who are most successful at promoting
                  the purchase of environmentally preferable purchasing (see Executive Order
                  13101, Section 802). Collaboration among agencies to provide education and
                  training is highly encouraged.

           In order to minimize the burden on Executive agencies, EPA recommends that each
     agency incorporate in its Policy Directive to promote environmentally preferable purchasing into
     its Affirmative Procurement and Strategic Plans. This incorporation can transpire as agencies
     revise their plans. Agencies should ensure that their Policy Directive is made available to the
     field-level procurement and environmental personnel.

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             Federal Register / Vol. 64, No.  161 / Friday, August 20,  1999 / Notices
45827
 B. Pilot Projects

        Section 503 (b) of EO 13101 states "jAjgencies are encouraged to immediately test and
 evaluate the principles and concepts contained in the EPA's Guidance on the Acquisition of
 Environmentally Preferable Products and Services through pilot projects to provide practical
 information to the EPA for further updating of the guidance."  Furthermore, Section 704 states
 "Each executive agency shall establish a model demonstration program... to demonstrate and
 test new and innovative approaches such as incorporating environmentally
 preferable...products...." into model facility programs. To help Executive agencies implement
 these provisions of the EO, this Final Guidance includes some suggested steps for initiating and
 implementing pilot acquisitions.

        The suggestions that follow are based on lessons from early pilots undertaken by the
 General Services Administration and the Department of Defense in partnership with EPA.  Case
 studies from these and other pilot projects are available from the Pollution Prevention
 Information Clearinghouse (202 260-1023) or they can be accessed through EPA's EPP Program
 Web site .

        Additional pilot acquisitions will be important testing grounds for applying the guiding
 principles and testing their applicability. The pilots will also provide valuable information for
 the development of tools and resources to facilitate widespread adoption of environmentally
 preferable purchasing practices.

        EPA will track pilots that are planned or already underway on the EPP Web site,
 providing a clearinghouse for information on government-wide activities related to
 environmentally preferable purchasing. (SeeEO 13101, Section 503 (b)(4).) EPA will
 disseminate information about different pilots among the agencies through the EPP Web site,
 updates, and fact sheets to ensure that lessons learned are shared and used to inform other pilot
 projects.

       The discussion below further describes how these pilots and demonstration projects might
 proceed. EPA encourages Executive agencies to undertake pilots and use all existing sources of
 information and technical expertise to carry them out.  EPA is committed to supporting these
 pilots and providing overall coordination and technical assistance, as resources allow.

       1.  Selection of pilots. Selection of pilot acquisitions is at the discretion of the individual
 Executive agencies.  There are at least two options for how agencies can approach this selection
 process. First, an agency may want to identify an environmental problem that it wants or needs
to address.  Once the problem has been identified, the agency can develop a list of products and
 services that contribute to that specific environmental problem. Alternatively, an agency may
start out with a product or service category for which it wants to find alternatives.   In either
case, criteria that agencies might wish to consider in selecting pilot acquisitions include:

       •      Potential for a reduction hi risk to human health and the environment.

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Federal Register / Vol.  64, No. 161 / Friday. August 20, 1999 / Notices
           •      Status on EPA's prioritized list. Pursuant to EO 13101, Section 503 (a), and in
                  order to assist Executive agencies focus their efforts on minimizing serious
                  environmental impacts, EPA has developed a prioritized list of the top 20 product
                  categories. The complete list, along with a discussion of the methodology used in
                  its development can be found in EPA's EPP Web site at
                  .

           •      Existence of less harmful product or service alternatives.  Alternatives could vary
                  anywhere along the product or services' life cycle, for example,  different ways of
                  manufacturing or disposing. Alternatives might also include different ways of
                  getting the same result, even if it means acquiring a completely different type of
                  product or service.

           •      Feasibility/degree of flexibility in the acquisition.

           •      Products or services that are widely used within the Federal government and are
                  representative or typical of the procurement system. This maximizes the pilot's
                  potential value to others by providing lessons about the effectiveness of the
                  guidance and increasing the likelihood that the pilot could be replicated. (See EO
                  13101, Section 503 (b)(l).)

           2. Implementation of pilot projects. In implementing the pilot projects;, Executive
     agencies can look to the process and results of projects others have completed or develop a
     different approach for environmentally preferable purchasing. In  undertaking the pilots, agencies
     are encouraged to:

           •      Ensure the participation of environmental and procurement experts.

           •      Use all of the options available to them to determine the environmentally
                  preferable attributes of products and services in their pilot projects, including the
                  technical expertise of non-governmental entities. This is pursuant to EO 13101,
                  Section 503 (b) (2). More specific guidance on the use of non-governmental
                  entities is included in Appendix D.

           Once a product or service has been chosen, pilots typically involve:

           a)     Determining environmentally preferable products and services.  This can be
                  accomplished by Executive agencies:

                  •      Identifying product attributes that can serve as indicators of environmental
                         preferability. Agencies can look to Appendix B for a menu of attributes.
                         Selection of attributes should be tied to the most significant environmental
                         problems or impacts.

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            Federal Register / Vol. 64, No. 161 / Friday, August 20, 1999 / Notices
                                                                         45829
       b)
 •      Collecting information from product and service providers. This may
        require the development of contract language to ensure that vendors
        provide environmental information.

        With the recent changes to the FAR and the trend toward best value
        contracting, agencies can now more easily consider environmental factors
        when making purchasing decisions. However, environmental information
        is often not provided by vendors. Thus, it may be necessary for Executive
        agency personnel to clearly request or require relevant environmental
        information from vendors in market surveys and proposals whenever
        appropriate.

 •      Evaluating the environmental information.

 Incorporating results of the environmental information research into the
 acquisition process to purchase environmentally preferable products and services.
 While the acquisition strategy and method are determined by the purchasing
 agency, EPA asks that agencies select a strategy that:

 •       Maximizes the number of environmentally preferable product or service
        choices available to the purchasing agency.

 •       Promotes competition across products and services in terms of
        environmental performance.

 •       Stimulates product and service process innovation and continuous
        improvement.

 •      Allows for the consideration of local environmental conditions.

 •      Promotes a definition of environmentally preferable products and services
       that can improve over time.

 Documenting the pilot effort, including a description of how the project was
 initiated and implemented and the lessons learned. A sample case study template
is attached in Appendix E and is also available on EPA's EPP Web site.  The
results of pilot projects will be shared among Executive agencies through EPA's
EPP Web site.
       More specific information about pilot implementation will be made available through a
variety of tools that EPA currently is developing including: an interactive training module; a
"best practices guide" with examples of specific contract language that have been used by
purchasing agencies; and a database of existing environmental standards that have been
developed by governmental and non-governmental entities.
       c)

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Federal Register /  Vol. 64, No. 161  /  Friday, August 20, 1999 / Notices
             Section 12(d) of The National Technology Transfer and Advancement Act of 1995
      (NTTAA) (Pub. L. 104-113, §12(d), 15 U.S.C. 272 note) and OMB Circular A-l 19 (63 FR 8546,
      February 19,1998) direct Federal agencies to use both domestic and international voluntary
      consensus standards in lieu of government-unique standards in their procurement and reglilatory
      activities, except where it would be inconsistent with applicable law or otherwise impractical.
      The Act's purpose is to reduce the cost of procurement and regulation by requiring a Federal
      agency to draw upon any suitable technical standard already used in commerce or industry rather
      than inventing a new standard.  Some of those standards might relate to evaluating
      environmental performance and measuring the environmental attributes of products or services.
      In establishing Environmental Preferable Purchasing pilot projects or planning other
      environmentally-sensitive activities, agencies should first determine whether there is an
      applicable voluntary consensus standard that would meet its needs.

             The NTTAA also requires a Federal agency, when it is consistent with the agency's
      mission, authorities, priorities, and budget resources, to participate in the standards-setting
      activities of voluntary consensus standards bodies. Such participation helps ensure the
      development of standards that meet the agency's needs, including those related to
      Environmental Preferable Purchasing concerns.  This  collaboration can also promote national
      goals and objectives. OMB Circular A-l 19 specifically mentions the need to promote the use of
      environmentally sound and energy-efficient materials, products, systems, services, or practices as
      well as the improvement of public health and safety.  (See OMB A-l 19, Section 7a.)

             In the long run, institutionalizing the purchase of environmentally preferable products and
      services requires that Executive agencies continue their efforts after the pilot's are completed.
      Given that environmental information about products  and services is still scarce, agencies should
      rely on all sources of information and technical expertise in making determinations about
      environmental preferability. To foster agencies continue acquisition of "green" products, EPA
      will coordinate the development and standardization of environmental information about
      potential product and service categories for future pilots. This effort will consist of identifying
      environmental performance characteristics and measurement methods and will involve technical
      experts both inside and outside the Federal government. Executive agencies should examine all
      information generated through these types of efforts.  The agencies, and not the nongovernmental
      entities, must make all final determinations regarding environmental preferability.

              The experience gained from Executive agency pilots will be key in determining the
      scope and nature of EPA's long-term activities to advance Federal environmentally preferable
      purchasing. The lessons learned and partnerships formed from these pilots will help establish a
      broader infrastructure to support this initiative. EPA might use existing mechEinisms or help
      develop new resources such as guidance, networks, and databases in support of the Federal
      purchasing community—to build this infrastructure. The infrastructure will help bridge the gap
      between the environmental and procurement expertise within the Executive agencies.

             All Executive agency personnel will have a role in creating a demand for environmentally
      preferable products and services. Thus, the infrastructure will also have to support the
      development of tools that are easy and convenient for general and diverse use..

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45831
        In light of the evolving acquisition landscape £ind the dynamic nature of the marketplace,
 the infrastructure will have to be flexible. In the increased globalization of the economy and
 trends toward commercialization of the Federal marketplace, will also require agencies to
 coordinate this initiative with new international trade and standardization developments.-
 Ultimately, the measure of this initiative's success will be in the increased availability and
 purchase of products and services that pose fewer adverse impacts on human health and the
 environment.
 VI. List of Resources

       This section includes a partial list of current resources that Executive agency personnel
 may find useful in implementing environmentally preferable purchasing.  For a more complete
 and updated list, please refer to EPA's EPP Web site, described below.

 A.    EPA's EPP Program Web site: 

       This comprehensive Web site serves as the main repository of information and resources
       related to environmentally preferable purchasing, including:

       •      Publications such as case studies, program updates and fact sheets.

       •      Interactive features designed to elicit information exchange such as topical
              discussion forums, a listing of upcoming events, a bulletin board for posting
              questions and comments and sharing users' experiences, as well as tools that have
              been helpful in implementing EPP.

       •      A list of top twenty prioritized product and service categories selected because
              they represent large volume federal procurements with environmental impacts,
              along with a description of the methodology used. The list is provided to assist
              Executive agencies in selecting pilots that will have the most effect.

       The site will also include training modules, a collection of promising green contracting
       practices, and a database of existing environmental standards, specifications and contract
       language.

B.     Federal Case Studies of Environmentally Preferable Purchasing

       EPA has developed a number of documents that describe the results of EPP pilot projects,
       including:

       •             "Cleaners Pilot Project Case Study " documents a collaboration between
                    the General Services Administration and the Environmental Protection
                    Agency.

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             •             "Paving the Road to Success " describes Department of Defense's efforts
                           to "green" a parking lot repair and maintenance contract
                                                                 "    !          !
             •             "Leading by Example " documents how EPA incorporated environmental
                           features into two new buildings, the Ronald Reagan Building and the
                           Research Triangle Park office complex.

             •             "Defending the Environment at the Department of Defense " describes the
                           addition of environmental factors in the maintenance of the Pentagon and
                           other DOD facilities.

             In addition, Executive agencies have either initiated or are contemplating a number of
             other pilot projects involving products such as degreasing agents, painls, adhesives and
             copier paper4, and services  such as conferencing.  Examples of where environmental
             preferability was factored into purchasing decisions can be found under "How to Do
             EPP" as well as "EPP Resources" on EPA's EPP Web site.
             Life Cycle-Based Resources

             •      Building for Environmental, and Economic Sustainability

                    A life cycle-based, decision-support software tool to assist users in balancing
                    environmental and economic concerns among products.  The tool generates
                    relative scores for alternative products based on environmental and economic
                    performance weights that individual users can set.  Although originally designed
                    for building materials and product comparisons, the tool will be expanded to
                    include other materials. The disks can be obtained by contacting the Pollution
                    Prevention Information Clearinghouse at 202 260-1023.

             •      Federal Facility Pollution Prevention Project Analysis: A Primer for Applying
                    Life Cycle and Total Cost Assessment Concepts
             4 Under the Pulp and Paper Cluster Rule published in 1998, EPA's Air and Water Offices have created the
      Voluntary Advanced Technology Incentives Program in order to move the industry toward the minimum environmental
      impact "mill of the future." EPA also has proposed to add a procurement incentive in line with this goal in the near
      fiiture.  The purchase of recycled content, chlorine-free paper would be a way to advance several  Administration
      initiatives, including the Technology Incentives Program, President Clinton's directive to purchase paper containing
      30 percent post-consumer fiber and the President's directive to agencies to purchase environmentally preferable products
      and services. For those interested in EPA's views on recycling and chlorine content in copier paper, please see EPA's
      ^fluent Guidelines andStandardsfor Pulp, Paper, and Paperboard Category, Phasel, promulgated on April 15,1998.
      (See 40 CFR Parts 63,261 & 430)

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 D.    Agency Environmental Catalogs

       The General Services Administration (GSA) and the Defense Logistics Agency (DLA) in
       the Department of Defense, the two major suppliers for the rest of the Federal • -
       government, publish product catalogs that highlight some environmental attributes.
       These catalogs are listed below:

       •            Environmental Products Guide
                    Published by the GSA, this guide contains a list of over 3,000 products
                    and services with environmental attributes, such as low volatile organic
                    compound content, recycled content, energy-efficiency, etc. All products
                    featured in the guide are available through the supply system of GSA's
                    Federal Supply Service.  The guide is available on MUFFIN (Multi-Use
                    File for Interagency News).

       •            Environmental Products Catalog
                    Published by the DLA, this catalog includes products that meet the
                    requirements of EPA's Comprehensive Procurement  Guidelines as well as
                    products that help reduce hazardous waste or eliminate the use of ozone-
                    depleting chemicals. Currently, the catalog does not have a systematic
                    way of screening products for their environmental characteristics, so
                    inclusion in  the catalog does not necessarily connote  an environmentally
                    preferable product. A DLA pilot is underway to develop environmental
                    standards for a category of products in the catalog. For more information,
                    contact the Defense General Supply Center at 1 800 352-2852.
E.     Federal Trade Commission's Guides to the Use of Environmental Marketing Claims
       (Green Guides), 16 C.F.R. Part 260

       The Green Guides, recently revised in May 1998, are intended to reduce consumer
       confusion and prevent false or misleading use of environmental terms in product
       advertising and labeling.  The Green Guides indicate how the Federal Trade Commission
       will apply Section 5 of the Federal Trade Commission Act, which prohibits unfair or
       deceptive acts or practices, in environmental marketing claims. The Green Guides apply
       to all forms of product and service marketing to the public, including advertisements,
       labels, package inserts, promotional materials, and electronic media. The Green Guides
       can be accessed via FTC's Web site:  (Select "Consumer Protection",
       then select "Environment", and then select "Guides").  For hard copies, contact FTC at
       202 FTC-HELP (382-4357). For questions, contact Janice Podoll Frankle at 202 326-
       3022.

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     F.     Office of Federal Environmental Executive's Web Site —
                                                               l'
           The Office of the Federal Environmental Executive (OFEE) maintains a comprehensive
           Web site  Updated frequently, it includes background information on OFEE's mission,
           history, and staff; resources for implementing EO 13101; best practices and success
           stories for environmental procurement, recycling, and waste prevention; federal agency
           compliance guidance; and posts information on current and upcoming conferences,
           activities, publications, and other relevant news. The site also showcases the Closing the
           Circle Awards recognizing outstanding performance towards "greening" the government.
           OFEE also manages an interactive forum (list serve) for the exchange; of information on
           environmental purchasing, recycling, and waste prevention.
           Other Resources and Tools

           •      "Greening" of the Federal Logistics Information System (FLIS)
                  The Defense Logistics Agency is working through a multi-agency group to
                  incorporate positive environmental attributes (such as recycled content, energy
                  efficiency and water efficiency) into FLIS, is a database of more than 7 million
                  supply items purchased by the Federal government. With the supply items tagged
                  with environmental attributes, FLIS will provide Federal consumers with specific
                  environmental information about the products they buy.

           •      There are a variety of other resources and tools that are currently available or
                  under development to assist Executive agency personnel implement
                  environmentally preferable purchasing practices. For the latest list of resources
                  and tools, please check the EPP Web site .

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45835
VII. Appendices

Appendix A  Glossary of Terms

Appendix B  Environmental Attributes
             (1) Menu of Environmental Attributes
             (2) Definitions for Terms on the Menu of Environmental Attributes

Appendix C  Sample EPP Policy Directive

Appendix D  Text of Office of Federal Environmental Executive and U.S. Environmental
             Protection Agency's April 1998 Policy Letter on Use of Non-Governmental
             Entities

Appendix E   Pilot Project Case Study Template

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                                  Appendix A—Glossary of Terms
      Acquisition - means the acquiring of products and services (including construction) by contract
      with appropriated funds by and for the use of the Federal government through purchase or lease,
      whether the supplies or services are already hi existence or must be created, developed,
      demonstrated, and evaluated. Acquisition begins at the point when agency needs are established
      and includes the description of requirements to meet those needs, solicitation and selection of
      sources, award of contracts, contract financing, contract performance, contract administration,
      and those technical and management functions directly related to the process of fulfilling agency
      needs by contract (EO 13101, Section 201)

      Bio-based products - are defined as commercial or industrial products (other than food or feed)
      that utilize biological products or renewable, domestic, agricultural (e.g., plant, animal and
      marine), or forestry materials. (EO 13101, Section 201)

      Environmentally preferable - products or services that have a lesser or reduced effect on human
      health and the environment when compared with competing products or services that serve the
      same purpose. The product or service comparison may consider raw materials acquisition,
      production, manufacturing, packaging, distribution, reuse, operation, maintenance, or disposal.
      (EO 13101, Section 201)

      Life cycle assessment - means the comprehensive examination of a product's environmental and
      economic aspects and potential impacts throughout its lifetime, including raw material
      extraction, transportation, manufacturing, use, and disposal.  (EO  13101, Section 201)

      The International Standards Organization, through ISO 14040, has defined life cycle assessment
      slightly differently as follows: Compilation and evaluation of the inputs, outputs, and the
      potential environmental impacts of a product system throughout its life cycle.

      Life cycle cost - means the amortized annual cost of a product, including capital costs,
      installation costs, operating costs, maintenance costs and disposal costs discounted over the
      lifetime of the product, according to OMB Circular A-94 and Executive Order 13101, Section
      201. However, this definition does not include external costs (i.e., those not borne directly by the
      entity that owns and operates a product/service, such as environmental costs to society at large).
      For the purposes of this guidance, EPA encourages agencies to consider all internal and external
      costs associated with a product, process, or activity throughout its entire life cycle—from raw
      materials acquisition to manufacture, recycling and final disposal.

      Non-governmental entities - within the context of this guidance, non-governmental entities
      include, but are not limited to, voluntary consensus standards bodies (see§ 12(d) of the National
      Technology Transfer and Advancement Act (Pub. L. 104-113, §12(d), 15 U.S.C. 272 note),
      environmental standard setting organizations, third party certification programs, environmental
      labeling or environmental "report card" programs and other environmental consulting
      organizations.

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45837
Pollution prevention - "source reduction," as defined under the Pollution Prevention Act of 1990
(42 U.S.C. § 13102), and other practices that reduce or eliminate the creation of pollutants
through: increased efficiency in the use of raw materials, energy, water, or other resources; or
protection of natural resources by conservation..

       The Pollution Prevention Act defines source reduction to mean any practice that:

       •             Reduces the amount of any hazardous substance, pollutant, or contaminant
                     entering any waste stream or otherwise released into the environment
                     (including fugitive emissions) prior to recycling, treatment, or disposal

       •             Reduces the hazards to public health and the environment associated with
                     the release of such substances, pollutants, or contaminants.

       The term includes: equipment or technology modifications, process or procedure
modifications, reformulation or redesign of products, substitution of raw materials, and
improvements in housekeeping, maintenance, training,  or inventory control.

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                          Appendix B—Lists of Environmental Attributes
            Below is a list of environmental attributes that can help Executive agencies assess the
     environmental performance of products and services. This list, viewed from, a life cycle
     perspective can enable Executive agency purchasers to select the product or service that
     minimizes adverse environmental impact Although, it is a preliminary list of the major sources
     of potential human health and environmental risk, this source should not be considered
     definitive. Definitions for each of the attributes follow the list. Agency personnel can use this
     list in two ways:

            (1) To provide a framework for identifying the most important environmental attributes
            of products and services, and using that information in product or seivice comparisons.

            (2) As a check list of environmental issues to consider when designing and acquiring
            systems or buildings.

     Not all of the environmental attributes will apply to each product or service; indeed, in some
     cases, information on just a few key environmental attributes will enable Executive agency
     personnel to determine environmental preferability.

            The  list of environmental attributes suggests that Federal agency personnel can use two
     different approaches to soliciting information from providers of products and services. The first
     includes consideration of releases of pollutants that occur during the life-cycle of the product.  In
     the research on product life-cycle assessments that have been conducted over the past several
     years, these releases are known as "inventory" items. Alternatively, the risks (or risk surrogates)
     associated with various life-cycle stages of a product can be identified. This approach seeks to
     identify actual environmental impacts rather than solely environmental releases. When
     calculating risks, general population (both environmental and human) exposures and
     occupational exposures need to be considered. Executive agencies may consider using both risk
     and release data in their decisions to purchase environmentally preferable products and services.

            If product and service providers use this list  as a basis for making environmental
     marketing claims, the claims should conform to the FTC's Guides for the Use of Environmental
     Marketing Claims (Green Guides), 16 C.F.R. Part 260). A copy of the Green Guides can be
     obtained through FTC's Web site . Any party making a claim (or an independent
     third party that is certifying a claim) concerning a product's environment  attribute must, at the
     time the claim is made, possess and rely upon a reasonable basis for substantiating the claim (16
     C.F.R.§ 260.5). A reasonable basis consists of competent and reliable evidence. In the context
     of environmental marketing claims, such substantiation will often require competent and reliable
     scientific evidence, defined as tests, analyses, research, studies, or other evidence based on the
     expertise of professionals in the relevant area, conducted and evaluated in an objective manner
     by persons qualified to do so, using procedures generally accepted in the profession to yield
     accurate and reliable results.

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45839
       The Green Guides state that either an unqualified or inadequately qualified claim that a
product is "environmentally preferable" implies to consumers that a product is generally
environmentally superior to others. "Environmentally preferable" claims should be accompanied
by language limiting the superiority claim to the particular attributes that can be substantiated.
For example, Green Guides state that environmental seals-of-approval should be accompanied by
information on product labels explaining the basis for the award.

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     	Appendix B(l) — Menu of Environmental Attributes	

     Executive agency personnel are reminded that the attributes listed and defined below are
     not comprehensive. In addition, Executive agency personnel should note that notall of
     these attributes will be applicable to every product or service. Furthermore, different
     attributes may be applicable to each product or service life cycle stage being considered.

     A.    Natural Resources Use

           •      Ecosystem impacts, such as endangered species, wetlands loss, fragile
                  ecosystems, erosion, animal welfare, etc.

           •      Energy consumption, which can serve as an indicator of acid rain, climate
                  change potential, air pollution, and associated human health risks.
                                                             i          i
           •      Water consumption which can serve as an indicator of water quality impacts,
                  risks  to aquatic ecosystems, and degradation of drinking water resources.

           •      Non-renewable resource consumption, which can serve as an indicator of acid
               •   rain, climate change potential, air pollution, and associated human health risks
                  and risks to endangered species and fragile ecosystems.

           •      Renewable resource consumption, which can serve as an indicator of loss of
                  biodiversity and increased erosion. Although in many cases; the use of renewable
                  resources is considered environmentally preferable to use of nonrenewable
                  resources, products made from renewable resources may also have negative
                  environmental impacts (e.g., ethanol is derived from a renewable resource, yet its
                  manufacture can lead to releases of VOCs).

     B.    Human Health and Ecological Stressors
           •      Bioaccumulative pollutants.
           •      Ozone depleting chemical global warming gases.
           •      Chemical releases (Toxics Release Inventory (TRI) list chemicals or others.)
           •      Ambient air releases (other than TRI, including volatile organic compounds and
                  particular matter).
                                                                       i
           •      Indoor environmental releases (consumer and occupational).
           •      Conventional pollutants released to water.
           •      Hazardous waste.

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            Federal Register / Vol. 64, No. 161  / Friday, August 20, 1999 / Notices           45841
              Non-hazardous solid waste (e.g., municipal solid waste, large volume waste,
              surface impoundments).                     '
              Other stressors.
 C. Hazard Factors Associated With Materials
        •      Human Health Hazards:
                     — acute toxicity
                     — carcinogenicity
                     — developmental/reproductive toxicity
                     — immunotoxicity
                     — irritancy                         .;
                     — neurotoxicity
                     — sensitization
                     — corrosivity
                     — flammability
                     — reactivity
                     — other chronic toxicity


       •      Ecological Hazards:
                     — aquatic toxicity
                     — avian toxicity
                     — terrestrial species toxicity


 D. Positive Attributes
       The attributes listed below are viewed as positive because they either serve as proxies for
minimizing natural resource use or avoiding waste and the associated environmental impacts
identified in A, B, and C. These attributes also are linked to authorities and requirements in
statutes or executive orders that encourage the Federal government to promote their use.
"Recyclability" and "recycled content" are attributes encouraged under RCRA.  There are
executive orders that encourage Federal agencies acquire bio-based products, and to promote
energy efficiency and water conservation. "Durability", "reusability", "take-back", and
"reconditioned or remanufactured" are positive attributes that encourage source reduction.
"Product disassembly potential" increases the potential for source reduction and recycling of
product components. Agencies should note that the presence of these attributes alone does not
automatically make a product or service environmentally preferable. When making purchasing

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     decisions, executive agencies should consider a range of environmental impacts associated with
     products from a life cycle perspective when making purchasing decisions.
                  Recycled content
                  Recyclabiliry
                  Product disassembly potential
                  Durability
                  Reusability
                  Reconditioned or remanufactured
                  Take-back
                  Bio-based
                  Energy efficiency
                  Water efficiency
                  Other attributes with positive environmental effects

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            Federal Register / Vol. 64, No. 161 / Friday, August 20,  1999 / Notices          45843
      Appendix B(2)—Definitions for Terms on the List of Environmental Attributes


 A. Natural Resource Use

   (1) Ecosystem impacts- adverse impacts on the ecosystem, for example, endangered species,
 wetlands loss, fragile ecosystems, erosion.
   (2) Energy consumption- the total amount of energy consumed for product or service
 manufacture, use, and disposal. Different sources of energy are associated with different
 environmental impacts.
   (3) Water consumption- refers to the water resources that are consumed or used, which can
 serve as an indicator of water quality impacts, risks to aquatic ecosystems, and degradation of
 drinking water resources.
   (4) Non-renewable resource consumption- those resources consumed that are not renewable
 in 200 years (e.g., fossil fuels, minerals). This can serve as an indicator of acid rain, climate
 change potential, air pollution, and associated human health risks and risks to endangered species
 and fragile ecosystems.
   (5) Renewable resource consumption: refers to a continuum of resources, from those that are
 renewable in under 200 years, such as timber-based products, which can serve as an indicator of
 biodiversity loss and increased erosion, to those which axe renewable in less than 2 years, such as
 grain-based feed stocks.

 B. Human Health and Ecological Stressors

   (1) Bioaccumulative pollutants- those chemicals that bioconcentrate in the environment as
 described in the Significant New Use Rule for new chemicals. (40 CFR 721.3.)
   (2) Ozone depleting chemicals- defined in the Protection of Stratospheric Ozone Final Rule.
 (58 FR 65018, December 10,1993.)
   (3) Global warming gases- listed in Climate Change 1992, The Scientific Report on the
 IPCC Scientific Assessment. (Table A 2.1.)
   (4) Chemical releases- ambient releases of chemicals of concern such as those reported in the
 TRI of the Emergency Planning and Community Right-to-Knpw Act. The current list is reported
 in 40 CFR 372.65.
   (5) Ambient air pollutants- pollutants for which ambient air quality standards have been
 developed.  (40 CFR 50.4- 50.12.) These pollutants include nitrogen dioxide, sulfur dioxide,
 ozone precursors, paniculate matter, carbon monoxide, Jind lead.
   (6) Indoor environmental releases- releases to an indoor environment of potentially
 hazardous chemicals such as those reported in the TRI in both occupational and consumer
 settings.
   (7) Conventional pollutants- defined in 40 CFR 401.16. These pollutants include
 biochemical oxygen demand, total suspended solids, fecal coliform, pH, and oil and grease.
   (8) Hazardous waste- Quantity of Resource Conservation and Recovery Act (RCRA)
hazardous waste as defined in 40 CFR 261.3.

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        (9) Non-hazardous waste- solid waste as defined in 40 CFR 261.3. Includes municipal solid
     waste, large volume waste (e.g., oil and gas, mining, etc.) and solids disposed of in surface
     impoundments.
        (10) Other stressors- any other stressors associated with the product or service but net-
     captured elsewhere.
     C.  Factors Associated With Materials

     Human Health Hazards

            (1) Acute toxicity- the potential of a chemical substance to cause adverse health effects
     from short-term exposure.
            (2) Carcinogenicity- defined by EPA through a weight-of-evidence approach. (51 FR
     33992, September 24,1986 and 61 FR 17960, April 23,1996.) When quantification is possible,
     slope factors or other measures such as LED10 can also be used to express carcinogenic potency.
            (3) Development/reproductive toxicity- adverse effects on the developing organism
     that result from chemical exposure prior to conception (i.e., either parent), during prenatal
     development, or, postnatally, to the time of sexual maturation.  (56 FR 63798, December 5,
     1991.) Reproductive toxicity is any adverse effect on an organism's ability to reproduce.  (61 FR
     56274, October 31,1996.)
            (4) Immunotoxicity- any adverse effect on an organism's immune system that results
     from exposure to a chemical substance.
            (5) Irritancy- defined according to the Occupational Safety and Health Administration
     (OSHA) Hazard Communication Standard (29 CFR part 1910.1200) or other standard scales
     such as EPA or Organization for Economic Cooperation and Development (OECD) Guidelines
     (EPA 712-C-98-196, August, 1998.)
            (6) Neurotoxicity- any adverse change in the development, structure, or function of the
     central and peripheral nervous system following exposure to a chemical agent (59 FR 42272,
     August 17,1994.)
            (7) Sensitization- an immunologically mediated cutaneous reaction to a substance. EPA
     test methods for evaluating sensitization potential are found in 40 CFR part 798.4100.
            (8) Other chronic toxicity- the potential of a chemical substance to cause an adverse
     effect on any organ or system following absorption and distribution to a site distant from the
     toxicant's entry point
            ( 9) Corrosiviry- dermal corrosion is defined by EPA as the production of irreversible
     tissue damage in the skin following application of a test substance. Test methods for evaluating
     dermal corrosipri can be found in the harmonized Office of Prevention, Pesticide and Toxic
     Substances (OPPTS) guidelines for acute dermal irritation. (OPPTS 870.2500.)  These guidelines
     harmonize the TSCA, FIFRA and OECD requirements in this area. The OSHA HazCom
     Standard listed above for irritancy also explicitly or implicitly covers coirosivity, sensitization,
     neurotoxicity, and all other toxic endpoints.
            (10) Flammability- defined by the OSHA HazCom Standard (29 CFR 1910.1200) and
     ignitability is defined in 40 CFR part 261.21.
            (11) Reactivity-defined in 40 CFR 261.23.

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 Ecological Hazards

        (1) Aquatic toxicity- the potential of a substance to have an adverse effect on aquatic
 species.  Measurement methods for aquatic toxicity can be found in 40 CFR part 797, subpart B.
        (2) Avian toxicity- the potential of a substance to have an adverse effect on avian
 species.

        (3) Terrestrial species toxicity- the potential of a substance to have an adverse effect on
 terrestrial species, other than man.


 D.     Positive Attributes
        The following attributes are generally viewed as positive because they either serve as
 proxies for minimizing natural resource use or avoiding waste and the associated environmental
 impacts identified in A, B and C. Agencies should note that the presence of these attributes
 alone do not automatically make a product or service environmentally preferable. Executive
 agencies should consider a range of environmental impacts associated with products from a life
 cycle perspective when making purchasing decisions.
        (1) Recycled content: Materials that have been recovered from the solid waste stream,
 either during the manufacturing process (pre-consumer), or after consumer use (post-consumer)
 (see Federal Trade Commission Environmental Marketing Guides mentioned above for more
 detail). Executive agencies are required to purchase EPA-designated items with recycled content
 (40 C.F.R. Part 247). Purchasers may want to consider whether the material contains pre-
 consumer or post-consumer recycled content. Recycled content, under the Federal Trade
 Commission guides, includes recycled raw material, that would have otherwise been incinerated
 or land filled, as well as used, reconditioned and remanufactured components. For products that
 are only partially made of recycled material, a recycled claim should indicate the percentage, by
 weight, of recycled content in the finished product. Unless it is otherwise clear from the context
 of the sale, for products that contain used, reconditioned or remanufactured components, a
 recycled claim should make clear that such components are used, reconditioned or
 remanufactured. Manufacturer's scrap material that would have, in any case, been incorporated
 into the product does not qualify as recycled under the Federal Trade Commission's guides.
 Refer to 16 C.F.R. § 260.7(e).
       (2) Readability:  Refers to products or materials that can be collected, separated or
 otherwise recovered from the solid waste stream for reuse, or in the manufacture or assembly of
 another package or product, through an established recycling program. For products that are
 made of both recyclable and non-recyclable components:, the recyclable claim should be
 adequately qualified to avoid consumer deception about which portions or components are
 recyclable. In addition, unless recycling collection programs for the product are available to a
 substantial majority of communities or consumers when: the product is sold, claims of
 recyclability need to be qualified to indicate the limited of availability of recycling collection
 sites.  A product that is made from recyclable material, but, due to its shape, size or some other
attribute, is not accepted in recycling programs for such material, should not be marketed as
recyclable. Refer to the FTC Environmental Marketing Guides, 16 C.F.R. § 260.7(d).

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           (3) Product disassembly potential: Refers to the ease with which a product can be
     disassembled for maintenance, parts replacement, or recycling.
           (4) Durability: Refers to the expected lifetime of the product.
           (5) Reusability: Refers to how many times a product may be reused. Since reusable
     products generally require more up-front costs than disposable products, they are often subjected
     to a cost/benefit analysis in order to determine the life cycle cost.
           (6) Reconditioned/Remanufactured: Refers to the process of restoring used, durable
     products to meet original performance standards. Remanufacturing has many other names,
     including: rebuilding (automotive sector); retreading (tire remanufacturing); reconditioning; and
     refurbishing. Remanufacturing results in less waste and raw material and energy use.
           (7) Take-back: Refers to the manufacturer or designee accepting a return of end-of-life
     product; who pays for the transportation of the product may be situation-specific.
           (8) Bio-based:  Refers to a commercial or industrial product (other tfian food or feed) that
     utilizes biological products or renewable, domestic, agricultural (plant, animal and marine), or
     forestry materials.
           (9) Energy efficiency: Refers to products that meet or exceed the Department of Energy
     (DOE)/Federal Energy Management Program's product energy efficiency recommendations
     which identify the top 25 percent of energy efficiency for all similar products or that meet the
     energy efficiency criteria of the Environmental Protection Agency (EPA)/DOE Energy Star
     program.  •
           (10) Water efficiency: Refers to any plumbing fixtures that meet or exceed the
     Department of Energy's Federal Energy Management Program recommended performance
     standards for flow rates.
           (11) Other attributes:  Refers to any other positive attributes that are associated with the
     product but are not listed here.

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     Appendix C—-Sample Environmentally Preferable Purchasing Policy Directive
               Environmentally Preferable Purchasing Policy

       The purchase and use of products and services can have a profound impact on the
environment. [NAME OF DEPARTMENT OR AGENCY] recognizes the positive impact that
it can make on the environment through the purchasing decisions that its employees make. It
is the intent of [NAME OF DEPARTMENT OR AGENCY]  to integrate environmental
considerations into every aspect of acquisition.  Although the environment may not be the core
of our professional mission, the integration of these factors will result in economic, health, and
environmental gains that will further our goals.

Overall Statement of Policy

      •      Agency personnel should seek to reduce the environmental damages associated
             with their purchases by increasing their acquisition of environmentallypreferable
             products and services to the extent feasible, consistent with price, performance,
             availability, and safety considerations.

      •      Environmental factors should be taken into account as early as possible in the
             acquisition planning and decision-making process.

      •      Responsibility for environmentally preferable purchasing should be shared
             among the program, acquisition, and procurement personnel.

      •      Environmentally preferable purchasing represents one important component of
             this agency's commitment to pollution prevention.

[NAME OF DEPARTMENT OR AGENCY] is committed to the following:

      •      Increasing the acquisition of environmentally preferable products and services.

      •      Identifying and implementing pilot projects to test the best ways to incorporate
             environmental preferability into acquisition.

      •      Establishing incentive and award programis to recognize those people, teams, and
             interagency work groups who are most successful at promoting the purchase of
             environmentally preferable products.

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45848
Federal Register / Vol. 64, No. 161 / Friday, August 20. 1999 / Notices
      Appendix D—Text of Office of Federal Environmental Executive and tf.S. Environmental
          Protection Agency's April 1998 Policy Letter on Use of Non-Governmental Entities
                    Pilot Project Approach on Use of Non-Governmental Entities
                       to Implement Section 503 of Executive Order 12873 on
                        Federal Acquisition, Recycling, and Waste Prevention


      Background:
             Section 503(a) of Executive Order 12873 directs EPA to "issue guidance that
      recommends principles that Executive agencies should use in making determinations for the
      preference and purchase of environmentally preferable products." Section 503 (b) states that
      Executive agencies shall use EPA's guidance to "identify and purchase environmentally
      preferable products" and to "modify their procurement programs by reviewing and revising
      specifications, solicitation procedures, and policies as appropriate."
             On September 28,1995, EPA issued a proposed Guidance on the Acquisition of
      Environmentally Preferable Products and Services which includes a  series of principles that are
      intended to guide Federal purchasers as they consider environmental  preferability in their
      acquisition decisions. This proposed Guidance was the culmination of numerous discussions
      EPA had with staff from key purchasing agencies and departments as well as representatives
      from industry and environmental and other interested organizations.


             In EPA's proposed Guidance (Supplementary Information - Section HI (E)), EPA
      acknowledged the existence of non-governmental entities — including, but not limited to,
      environmental standard setting organizations, third party certification programs, environmental
      labeling or environmentaT"report card" programs and other environmental consulting
      organizations ~ to which Executive agencies, in appropriate circumstances, may refer for
      technical assistance1 in meeting the Executive Order goals.
             1 For example, Executive agencies might seek technical assistance from non-governmental entities to help
      Executive agencies:

             (a) analyze life cycle and multiple environmental attributes;
             (b) analyze basic environmental performance characteristics for specific categories; of products/services;
             (c) identify environmentally preferable product/service criteria for a given product category based on
             agencies' core environmental values; and
             (d) identify products/services in a given category which meet agencies' predetermined set of environmental
             performance criteria.

             Executive agencies are reminded that they must critically examine all information from non-governmental
      entities. The Executive agencies involved, and not the non-governmental entities, must make all final
      determinations regarding environmental preferability.

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            Federal Register / Vol. 64, No. 161 / Friday, August 20, 1999 / Notices          45849
       In this paper, EPA suggests a pilot project approach to test the utility of various means of
 using non-governmental entities to achieve environmentally preferable purchasing goals. This
 pilot project approach will be publicized through a Notice of Availability in the Federal Register.
 Ultimately the findings from the pilot project approach will provide practical information to EPA
 in the development of its final Guidance.


 Spectrum of Approaches
       First, it must be emphasized that Executive agencies may choose to implement EPA's
 proposed Guidance without technical assistance from non-governmental entities. A number of
 on-going environmentally preferable purchasing (EPP) pilot projects are relying successfully on
 the in-house environmental and procurement expertise of EPA and the partnering Executive
 agency (e.g., General Services Administration and the Department of Defense).  Therefore, this
 paper should in no way be interpreted as an EPA endorsement of a specific
 non-governmental entity, organization or program, nor should agencies  feel obligated in
 any way to utilize the technical assistance of such entities.


       However, to the extent that the Agencies are interested in tapping the  expertise that
 resides outside the Government, EPA concludes that Agencies, in carrying out existing mandates
 for environmentally preferable purchasing may use non-governmental entities in accordance with
 appropriate operating guidelines. Executive agencies should note that they must avoid favoring,
 without reasonable justification, one non-governmental entity over another. Executive agencies
 should also inform their personnel about the Federal Trade Commission's Guides for the Use of
 Environmental Marketing Claims which govern environmental claims made by anyone,
 including manufacturers or environmental labeling or "report card" programs.


       Thus far, EPA has identified a number of different potential approaches for how
 Executive agencies could use the technical expertise of non-governmental entities in furthering
 then- environmentally preferable purchasing goals. All of the potential approaches described
 below require that the Executive agencies involved critically examine all information from
 non-governmental entities. The Executive agencies involved, and not the non-governmental
 entities, must make all final determinations regarding environmental preferability.


       This list of approaches is not comprehensive. Agencies are encouraged to bring to EPA's
 attention  other potential approaches for using non-governmental entities. In utilizing an
 approach, agencies have considerable discretion in incorporating environmental preferability into
procurement decisions.  For example, environmental considerations that result in limiting
competition or in the payment of a price premium for goods or services may be reasonably
related to an agency's definition of its "minimum needs" and therefore permissible.

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45850
     Federal Register / Vol.  64, No. 161 / Friday, August 20, 1999 / Notices
    Approach I: Use of Existing Information Developed by Non-governmental Entities

                                                                 i          i
           Executive agencies' personnel could use existing information developed by
    non-governmental entities regarding environmental preferability of products and services, along
    with other available information (such as product performance and price) in defining the
    requirements for procurements and making more informed procurement and acquisition
    decisions. For example, Agencies might consider undertaking pilot project;; to test the utility, of
    non-governmental entities in the following instances:


           a) Executive agencies could examine and evaluate already existing environmental criteria
           or standards developed by non-governmental entities for products or product categories
           (as well as for services or service categories), along with other available information, to
           identify a range of environmental attributes which can inform the agencies' own
           determinations of environmental preferability.  Those determinations of environmental
           preferability could then translate into agency requirements, or at the very least, important
           criteria in the evaluation and selection of competing vendors or manufacturers.


           b) In buying commercial items off-the-shelf, Executive agencies could inform their
           personnel to take into consideration environmental information (e.g., environmental
           claims, product profiles, "report cards", or environmental seals along with accompanying
           explanation, etc.,) either displayed on the products or provided through product literature
           or other materials (e.g., newsletters) in making purchasing decisions. This environmental
           information could be provided by vendors  or manufacturers or by non-governmental
           entities. Executive agency personnel should be cautioned to avoid making their
           purchasing decisions on broad claims of environmental superiority.2


           c) At the request of vendors or manufacturers, an Executive agency could include in its
           catalogs or schedules symbols from non-governmental entities denoting certain
           environmental characteristics, provided that (1) these symbols are accompanied by
           additional information that specify the reasons why a product has been "tagged"  with a
     point:
2The following excerpt from FTC's Guides for the Use of Environmental Marketing Claims illustrates this


A product is advertised as "environmentally preferable." This claim is likely to convey to consumers that this
product is environmentally superior to other products. If the manufacturer cannot substantiate this broad
claim, the claim would be deceptive. The claim would not be deceptive if it were (accompanied by clear and
prominent qualify ing language limiting the environmental superiority representation to the particular product
attribute or attributes for which it could be substantiated, provided that no other deceptive implications were
created by the context. (From FTC's Guides, (a) General Environmental Benefit Claims, Example 6)

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            Federal Register / Vol. 64, No.  161 / Friday, August 20, 1999 / Notices
45851
        symbol; (2) the catalogs or schedules clearly emphasize that Executive agency personnel
        are not required to purchase products or services that are tagged; and (3) procurement
        officials should not rely on the symbols to make purchasing decisions, but instead, are
        required to take into account the environmental information underlying the symbol for
        relevance to the procurement.3 Agencies including such symbols in their schedules or
        catalogs should ensure that their employees receive appropriate guidance in utilizing this
        approach. Vendors or manufacturers who choose not to obtain a seal or other symbols
        denoting certain environmental characteristics from non-governmental entities may
        nevertheless also request that environmental infoimation about their products be included
        in the agency's catalogs or schedules.


        This option will be piloted on a limited basis so mat it can be closely monitored to
        determine its effectiveness.
        d) On its own initiative, an Executive agency could tag products or services in its catalogs
        or schedules with its own symbol which denotes environmental characteristics that the
        Executive agency, through its own determination, deems preferable.  This symbol could
        be based on existing information (e.g., environmental claims, product profiles, "report
        cards", or environmental seals along with accompanying explanation, etc.) available from
        non-governmental entities or from vendors or manufacturers themselves.  This symbol
        should be accompanied by specific information explaining the basis for "tagging" a
        product as well as the source of the information. Catalogs or schedules should emphasize
        that Executive agency personnel would not be required to purchase products or services
        which are tagged, but are requested to take into account the environmental information
        underlying the symbol for relevance to the procurement.


Approach 2: Use of Non-governmental Entities as Certijiers of Specific Claims


       Executive agencies could require vendors or manufacturers to have specific, measurable
and verifiable claims certified by qualified non-governmental entities. A product's percentage
content of volatile organic compounds (VOCs), for example, would be considered measurable
       3The following excerpt from FTC's Guides for the Use of Environmental Marketing Claims provides an
example of this point:

       A product label contains an environmental seal, either in the form of a globe icon, or a globe icon -with
       only the text "Earth Smart" around it.  Either label is likely to convey to consumers that the product is
       environmentally superior to other products. If the manufacturer cannot substantiate this broad claim, the
       claim would be deceptive.  The claims would not be deceptive if they were accompanied by clear and
       prominent qualifying language limiting the environmental superiority representation to  the particular
       product attribute or attributes for which they could be substantiated, provided that no other deceptive
       implications were created by the context.  (From FTC's Guides, (a) General Environmental Benefit Claims,
       Example 5)

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45852	Federal Register / Vol. 64. No. 161 / Friday. August 20, 1999 / Notices

     and verifiable. The rationale behind this approach is that credible certification by
     non-governmental entities (or actual evidence from vendors or manufacturers themselves) could
     increase the credibility of claims that may be displayed on products. Such certification, or a
     vendor's or a manufacturer's ability otherwise to prove particular claims of environmental
     preferabiliry, could be a prerequisite for competitive consideration.


            This approach assumes that (1) no particular non-governmental entity is favored (without
     reasonable justification) over any other non-governmental entity; and (2) vendors or
     manufacturers who choose not to be certified by non-governmental entities are provided the
     opportunity to present credible evidence that -their products or services conform to established
     standards.
     Approach 3: Use of Non-government Entities as "Consultants" under Advisory and
     Assistance Contracts


            Pursuant to the competitive contracting process as set forth in the Federal Acquisition
     Regulation (FAR), non-governmental entities could provide consulting services to Executive
     agencies. Non-governmental entities may provide advice and recommendeitions about
     environmentally preferable purchasing, for example, through the identification of key
     environmental characteristics of product categories. Under this approach, Executive agencies
     would define environmental preferability'with the assistance of a non-governmental entity on a
     procurement-by-procurement basis.  As per FAR Subpart 9.5, Executive agencies must fully
     consider the potential for conflict of interest concerns where a non-governmental entity may be
     unable to render impartial advice or assistance because of private business or financial interests.
     Also, Executive agencies should make every effort to maximize competition in awarding these
     advisory and assistance contracts to avoid any exclusive or preferential relationship with any
     particular non-governmental entity.  Finally, the environmental preferability standards developed
     under this approach could be used as a basis for defining the agency's "minimum needs" in
     particular procurements and for developing criteria for evaluating competing vendors.


     EPA's Suggested Next Steps


            One of the key tenets of EPA's proposed Guidance is to have Executive agencies
     undertake a series of pilot projects that can demonstrate the applicability and workability of the
     guiding principles as contained in EPA's proposed Guidance.  The success of our efforts
     depends on learning from these pilot projects and sharing the results widely among the different
     Executive agencies. It is in this spirit that EPA strongly encourages Executive agencies to enter
     into pilot projects that test the potential approaches for using non-governmental entities as
     described above.

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           Federal Register / Vol. 64, No. 161 / Friday, August 20, 1999 / Notices           45853
       Moving forward with this non-governmental entities pilot approach is desirable for a
number of reasons: 1) EPA can capture the lessons from the pilots and share them among the
Executive agencies so that there is no duplication of effort; 2) we can determine where the use of
expertise outside of the government is appropriate and useful and where it is not; and 3>the net
effect of creating a market for such EPP services may encourage increased competition among
existing and new organizations or programs that can supjport Federal procurement of
environmentally preferable products and services. Ultimately, the results from this and other


pilot project approaches will help Executive agencies identify the most effective and practical
ways to achieve the goals of environmentally preferable purchasing.


       EPA recognizes that any pilot project involving a non-governmental entity will initially
raise practical questions such as which non-governmental entities are legitimate and are credible
and which are not; is there a need to certify a certifier?  'While EPA is not currently  able to offer
an "approved" list of non-governmental programs best suited to assist the agencies, it is prepared
to provide assistance to Executive agencies on an individual procurement-by-procurement basis.
As an initial step, Agencies are directed to the list of questions for evaluating non-governmental
entities contained in Section III, [E] Third Party Certification Programs of EPA's proposed
Guidance on the Acquisition of Environmentally Preferable Products and Services.  The list of
questions is included as Appendix 1 of this letter.


       Specifically, within the context of this non-governumental entity pilot project  approach,
EPA's Environmentally Preferable Purchasing Program in the Office of Pollution Prevention and
Toxics, is prepared to:


       1) assist Executive agencies in structuring a pilot project involving non-governmental
       entities, including providing support to assess the utility of non-governmental entities on
       an individual procurement-by-procurement basis;


       2) seek out and identify non-governmental entities who have expertise in the  area of
       environmentally preferable purchasing through a variety of means, such as, but not
       limited to, Federal Register notices or announcements in the Commerce Business Daily
       (CBD). To make such a task manageable, EPA will identify, with help and guidance
       from the agencies, a few product or service categories upon which to focus at first. If
       successful, further federal register notices or CBD announcements could be issued
       focusing on additional product or service categories;


       3) assemble a list of product categories for which eco-labeling criteria and standards have
       been established, bom domestically and internationally ;for agencies to consider in
       developing their own criteria for environmental preferability.  If appropriate,  EPA will
       assist in such evaluations; and

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45854
Federal Register / Vol. 64, No. 161  / Friday, August 20, 1999  / Notices
           4) assist Executive agencies in structuring an environmentally preferable purchasing pilot
           project that does not involve non-governmental entities.


           In turn, Executive agencies should consult with EPA when undertaking pilots which may
    raise environmental issues beyond their expertise (e.g., where a pilot involves consideration of
    the way a product is made).
                                                               '          i

           Furthermore, Executive agencies who choose to undertake pilots under option l(c) should
    consult with EPA in developing a written process or procedure for the role seals or symbols and
    the associated information would play in their pilots. For example, agencies should provide clear
    guidance which specifies the importance of considering the underlying criteria, not the seal or the
    symbol.


           As EPA and Executive agencies embark on these activities, EPA will continue to explore
    a number pf different ways that it can address issues which are raised within the pilot project
    context more definitively.  Executive agencies will be kept informed of developments on these
    issues. Agencies should inform EPA of their efforts in environmentally preferable purchasing,
    whether such efforts involve non-governmental entities or not in order to share lessons learned
    among other agencies and to aid in the evaluation of the pilot projects. In this way, EPA can
    make EPP concepts more practical for use within the Federal acquisition context.  To facilitate
    this. Agencies are requested to send the attached FAX BACK form. Pilot projects involving
    non-governmental entities will be evaluated over a period of the next three years.  EPA will use
    the findings from that evaluation to inform the development of its final Guidance.


           For further information and to inform EPA of pilot project efforts, please contact:


           Eun-Sook Goidel, Program Manager, Environmentally Preferable Purchasing Program,
           Pollution Prevention Division, Office of Pollution Prevention and Toxics (202)260-3296;
           (202)260-0178 FAX; e-mail: goidel.eunsook@epamail.epa.gov


           For legal issues associated with use of non-governmental entities in environmentally
    preferable purchasing, please contact:
           Tali Zemel, Esq., Office of General Counsel (202)564-4708; e-mail:
           Zemel.Avital@epamail.epa.gov

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            Federal Register /Vol. 64, No. 161 / Friday, August 20, 1999 / Notices
45855
  Attachment 1. List of Questions for Evaluating Non-Governmental Entities4


        Executive agencies should consider the following list of questions in evaluating non-
 governmental entities before using their expertise to further internal environmental preferable
 purchasing goals. Does the program have:
              an open, public process that involves key stakeholders (businesses,
              environmental, consumer groups, and states, etc.) in developing its criteria or
              standards?
              award criteria, assumptions, methods, and data used to evaluate the product or
              product categories that are transparent (i.e., they are publicly available, easily
              accessed, and understandable to the lay person)?
              a system of data verification and data quality?
              a peer review process (with representation of all stakeholders) for developing the
              standards or criteria?                        ;
              criteria that are developed based on a "systems" or life cycle approach (i.e.,
              "cradle to grave")?
              an outreach program to educate the consumer, which includes clear
              communications to consumers that provide key information concerning
              environmental impacts associated with the product?
              an established goal of updating standards or criteria as technology and scientific
              knowledge advance?
              authority to inspect the certified product's facility to ensure compliance with the
              standards or criteria?
              testing protocols for the certified products that ensure testing is conducted by a
              credible institution?
              access to obtaining the seal by small-and medium-sized companies (e.g., the cost
              of the seal is not so high as to  prevent access by smaller companies)?
              compliance with the Federal Trade Commission's (FTC) Guides for the Use of
              Environmental Marketing Claims'!
Services.
       Excerpted from EPA's proposed Guidance on the Acquisition of Environmentally Preferable Products and

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45856
Federal Register / Vol. 64, No.  161  / Friday, August 20, 1999 / Notices
                                         FAX BACK FORM

       PLEASE INFORM EPA ABOUT YOUR PILOT PROJECT INVOLVING THE USE OF
                               NON-GOVERNMENTAL ENTITIES IN
                       ENVIRONMENTALLY PREFERABLE PURCHASING!
      Name:                  •                                                             •
      Department/Agency:
      Address:
      Address:
      Phone:
      FAX
      E-mail:
      Type of Acquisition/Procurement:
      (e.g., small purchase, credit card purchase, competitive bid, etc.)

      Product/Service Category:

      Name of Non-Governmental Entity:
      Type of Non-Governmental Entity (check all that apply):
      	    environmental standard setting organizations
      	    third-party environmental certification programs
      	    environmental labeling organizations
      	    environmental report card organization
      	    environmental consultants
      	    other (please specify:	
                                                   J
      Type of Information/Assistance Sought from Non-Governmental Entity:
      	   general environmental information about a product/service category;
      	    analyze life cycle and multiple environmental attributes
            analyze basic environmental performance characteristics for specific categories of products/services
      	    identify environmentally preferable product/service criteria for a given product category based on
            agencies' core environmental values
      	    identify products/services in a given category that meet agencies' predetermined set of environmental
            performance criteria; and
      	   other (please speciry:__	        )

      Please FAX BACK to:   Eun-Sook Goidel at U.S. EPA 202 260-0178.

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            Federal Register / Vol. 64, No.  161 / Friday, August 20, 1999 / Notices          45857

                        Appendix E — EPP Case Study Template
 Project Basics
              What does your agency/department/office do? Where is it based?
              What, if anything, is unique about your efforts to purchase environmentally
              preferable products and services?
              What were the motivating factors behind the project?
              What kinds of products and services are you purchasing with environmental
              attributes in mind? Do you focus on a particular group of products or services? If
              so, why?
Implementation
              How have you incorporated environmental attributes into the purchasing process?
              Did you alter the established procurement: process in any way to accommodate
              environmentally preferable products?
              What obstacles did you encounter (if any) in incorporating environmental
              attributes into the purchasing process? How were these obstacles dealt with?
              Did you incorporate environmental attributes into procurement specifications,
              standards, or policies; requests for proposals; bid announcements; manufacturer
              certifications; etc.? (If so, please provide examples.)
Product and Service Evaluation
             How do you evaluate the products or services you purchase that have
             environmental attributes? Do you rely solely on information provided by vendors,
             or have you developed your own criteria or your own evaluation system?
             Do you consider more than one attribute when evaluating a certain product (e.g.,
             considering both recycled-content and bleaching when purchasing paper
             products)? If so, how do you go about taking multiple attributes into
             consideration?
             Are products or services that meet your environmental attributes priced
             competitively with other comparable products or services? Do you have a price
             preference for products or services  meeting your environmental criteria?

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45858
Federal Register / Vol. 64, No. 161 / Friday, August 20,  1999 > Notices
    Vendor Reactions
                  How do you inform vendors about your preference for products with
                  environmental attributes?
                  Were vendors already providing environmental information before you requested
                  it?
                  How did vendors react to your request for environmental attributes of their
                  products?
     Customer (End-User) Reactions
                   •i                                                      I
                  Who has been most affected by the changes brought about by your efforts to
                  purchase environmentally preferable products (i.e., procurement staff, other
                  employees, contractors, citizens, end-users)? How have they been affected?
                  Have you attempted to inform or educate your customers about products'
                  environmental attributes? How?
                  How have customers responded to the environmental information you provided?
                  Are you keeping track of their responses?
                  Have customers been pleased with the performance of environmentally preferable
                  products (especially when compared to products that are not considered
                  environmentally preferable)?
     Project Results
                   How are you tracking/measuring the success of your Environmental Preferable
                   Purchasing efforts? Have you been able to quantify your success in terms of
                   positive effects on the environment?
                   Have any cost savings resulted from the purchase of environmentally preferable
                   products? How were these calculated?
                   Do you think your experience with purchasing environmentally preferable
                   products could be valuable to others who purchase different products?
                   What are your future plans regarding the purchase of environmentally preferable
                   products? Do you expect to incorporate additional attributes! or examine other
                   product categories? What are some of the opportunities and challenges you
                   foresee in expanding your Environmental Preferable Purchasing efforts?
 List of Subjects
  Environmental protection.
                   Dated: August 13, 1999.
                 Carol M. Browner,
                 Administrator.
                 [FR Doc. 99-21664 Filed 8-19-99: 8:45 am]
                 BILLING CODE 6560-SO-C

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