SEFA
                           United States
                           Environmental Protection
                           Agency
                           Pollution Prevention
                           and Toxics
                           (7409)
EPA742-F-96-002
February 1997
Environmentally Preferable Purchasing Program
                           Update  # 1
The goal of EPA's
Environmentally
Preferable
Purchasing (EPP)
Program is to make
environmental
performance a
factor in Federal
government
purchasing deci-
sions, along with
product perfor-
mance and cost.
       Environmentally Preferable Purchasing (EPP) promotes Federal govern-
       ment use of products and sevices that have reduced impacts on human
       health and the environment. Such purchases are required by Executive
 Order 12873, Federal Acquisition, Recycling, and Waste Prevention. The Executive
 Order also directed EPA to develop guidance to help Federal agencies incorpo-
 rate environmental preferability into their purchasing procedures.

   This update is the first in a series of periodic updates intended to inform other
 Federal agencies and the public of the EPP Program's activities, progress, and
 direction. Future updates also will identify upcoming meetings and other events
 related to the EPP Program.
   Status of Guidance
   EPA published proposed Guidance on the Acquisition of Environmentally
 Preferable Products and Services in the Federal Register on September 29, 1995. The
 proposed guidance is a framework that identifies key issues associated with envi-
 ronmentally preferable purchasing. Although the guidance focuses primarily on
 Federal purchasing, EPA recognizes that it also might affect the private market-
 place.

   The publication of the proposed guidance was preceded by many months of
 discussions and negotiations with industry, environmental organizations, Federal
 agencies, the Office of Management and Budget, the Office of Environmental
 Policy, and the Office of the Federal Environmental Executive (OFEE). After
 proposing the guidance, EPA organized a public meeting, held on October 26,
 1995, to solicit comments. Approximately 20 organizations attended the meeting,
 including representatives from Federal agencies, industry, and environmental
 organizations. Although most participants commended EPA's approach as a good
 first step, they differed on how EPA should proceed. In addition, as of
 December 31, 1995, over 100 organizations had provided written comments on
 the guidance to EPA. Most of the written comments were supportive of the
 guidance but did not reflect a consensus on any key issues.

   At this time, EPA has no plans to "finalize" the proposed guidance. Many of
 the concepts and principles it contains are currently being tested for their applic-
 ability to actual purchasing decisions through pilot projects. The Agency believes
 further testing will be needed and, until more  is learned from these pilots, final-
 izing the guidance would be premature.
                                Printed on paper that contains at least 20 percent postconsumer fiber

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                            Status of Pilot Projects
General Services
Administration/
EPA Cleaning
Products Pilot
Project
  EPA believes that lessons learned from pilot projects can provide useful infor-
mation to guide implementation of the EPP Program over the long term. As a
result, EPAs early efforts have relied on pilots to demonstrate the feasibility of
the guidance in current acquisition processes. The following pilots have been
conducted over the past year:

  The Cleaning Products project pre-dates Executive Order 12873 but fits per-
fectly within the EPP Program. The U.S. General Services Administration
(GSA) and EPA cooperatively identified seven cleaning product attributes that
can serve as indicators of a product's environmental performance. Vendors
already on GSAjs Biodegradable Cleaners/Degreasers Schedule (similar to a
product catalog) voluntarily provided information on these attributes for inclu-
sion in the February  1996 schedule.

  Federal purchasers can use this information, presented in a matrix form, to
make buying decisions. The GSA/EPA pilot project team will assess purchasers'
reactions to the information to identify any necessary improvements.
Approximately 60 additional vendors have already expressed interest in the
schedule. Adding more vendors to the schedule would bring more  competition
and a wider variety of products available to Federal purchasers. Large, private
organizations from outside the Federal sector (e.g., Mobil) have also shown
interest in identifying and purchasing environmentally preferable cleaning prod-
ucts. The Economics, Exposure, and Technology Division (EETD) of EPAs
Office of Pollution Prevention and Toxics has been leading and managing this
pilot.

  For additional information, contact Conrad Flessner of EPA at 202 260-3918
or Bob Killough of GSA at 206 931-7527.
GSA/EPA Paints
Pilot Project
   GSA and EPA have also teamed up to identify key environmental attributes
for latex wall paints. Federal consumers can use these attributes to make envi-
ronmentally preferable purchasing decisions on paints. The EETD team respon-
sible for the cleaning products pilot project is leading this pilot as well.

   For additional information, contact Conrad Flessner of EPA at 202 260-3918
or Laura Davis of GSA at 206 931-7881.
Department of
Defense/EPA
Construction  Pilot
Project
  This pilot project examines environmental preferability in the context of park-
ing lot renovations at the Pentagon in Washington, DC. In contrast to the
GSA/EPA cleaning products pilot (which adopts a product focus), this pilot
focuses on how government contractors can be encouraged to consider environ-
mental preferability. The contractor selected to perform the renovations will be
given a financial incentive to identify and use products that are environmentally
preferable. A draft Request for Proposals, which outlined the environmental
preferability factors, was published in July 1996 to solicit comments on the
adopted approach. In addition to the parking lot renovation contract, a pilot for
general interior renovations and alterations is currently being developed with an
expected Request for Proposals publication in early 1997.

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   The lessons learned and product information gained from these pilots may be
used in the much larger-scale renovations currently underway at the Pentagon.
Thus, the potential spill-over effect of the parking lot pilots will be tremendous.

   For additional information, contact Ruth Heikkinen of EPA at 202 260-1803.
   EPA and GSA began work on this project intending to build on the success of
EPAs Energy Star program by expanding the number of attributes considered in
purchases of environmentally preferable computers. This pilot sought direct
inviolvement of industry stakeholders in identifying the key factors for determin-
ing environmental preferrability.  Despite extensive information about environ-
mental characteristics of computers, agreement on ways to capture this
information for use within the Federal purchasing context was difficult to reach.
The electronics industry also expressed its interest in maintining its focus on
other Agency initiatives. Although work on this pilot was suspended collabora-
tive efforts between EPA and the electronics industry are continuing under other
projects, such as the Common Sense Initiative, Energy Star, and Design for the
Environment.

   For additional information, contact John Shoaff (EPA) at 202-260-1831.
GSA/EPA
Computers Pilot
Project
 Other Activities in Support of the EPP Program
   In addition to its pilot projects, the EPP Program initiated two projects to
examine environmental purchasing efforts at other levels of government.

   This case study examines the experiences of six state and local governments in
implementing environmental purchasing programs. Though most of these pro-
grams emphasize recycled-content products (particularly recycled-content paper)
rather than products with multiple environmental attributes, the study highlights
key issues that these programs faced and the basis for their success. EPA believes
that insights from the study will help in the support and implementation of the
EPP Program. The report will be available in early 1997.
Case Study of
State/Local
Governments'
Experience in EPP
   In cooperation with EPAs EPP Program, the Organization for Economic
Cooperation and Development's (OECDs) Pollution Prevention and Control
Group initiated a study to examine innovative environmental purchasing pro-
grams in a number of OECD member countries, including Belgium, Denmark,
France, Germany, Switzerland, and the United States. The primary goal of this
project is to identify key issues that cut across national boundaries, such as how
environmental purchasing initiatives might affect trade.

   OECD collected information from the countries through a survey, developed
through the project steering committee, and in small national meetings.  In late
July 1996, the EPP Program sponsored a series of small group meetings with
key stakeholders—industry, Federal agencies, and environmental organizations
to assist OECD in collecting information about environmental purchasing
efforts in the United States. Summaries of these meetings will be  available in
early 1997. Cross-cutting issues raised by meeting participants will be further
examined at an international workshop on greener public purchasing in
February 1997 in Biel, Switzerland.
International
Perspectives

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Compiling
Information
Sources
  EPA has initiated several additional activities in support of the EPP Program,
including the following:

  Making environmentally preferable purchasing decisions requires good infor-
mation. EPA therefore compiled a list of existing information sources describing
environmental attributes of products available to U.S. consumers, in both the
public and private sectors. While a number of information sources exist, nearly
all focus on a single product attribute (e.g., recycled content, energy efficiency).
EPA identified the information available and how it is presented (e.g., environ-
mental labels, catalogs, on-line information).

  In Fiscal Year 1997, the Agency plans to include environmental labeling stan-
dards and criteria developed in other countries in this compilation and will share
it with other Federal agencies.
Product Category
Seminars
  In an effort to identify potential future pilot projects, EPA identified the top
20 categories of products (by dollar amount) purchased by the Federal govern-
ment. Based on feedback from other agencies, EPA may organize a series of
product category seminars that could lead to future pilot projects.
Life-Cycle
Assessment and
Life-Cycle Costing
Tools
  One of the seven guiding principles in the proposed guidance encourages the
adoption of a life-cycle approach—that is, examining a product's environmental
impact along all stages of its life, including manufacturing, distribution, use, and
disposal.  Life-cycle assessment is a challenging concept to implement, however.
Organizations across the nation and the globe are working to operationalize the
life-cycle idea. For every life-cycle tool available today, another 10 are under
development. While some tools address a single attribute (e.g., energy efficien-
cy), most aim to cover a variety of environmental attributes. The focus of much
of the ongoing and past life-cycle assessment work has been on product design,
but product purchasers could require  additional types of information. EPA con-
tinues to monitor developments in the field so that useful tools can be made
available to those who want to purchase environmentally preferable products.

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 PLANS FOR  1997
  EPP Program activities planned for 1997 fall into five categories: pilot pro-
jects, documentation, outreach, tool development/training, and policy develop-
ment. Planned activities for each of these categories are described below.
  The EPP Program will continue to focus on implementing pilot projects with
Federal agency partners. These pilots will apply EPP principles to the acquisi-
tion of particular product categories (e.g., paints), as well as testing different
approaches (e.g., incorporating EPP concepts into the procurement process,
potential use of traditional standard-setting organizations). Launching of addi-
tional pilots will be encouraged through:

• Pilot Challenge Program. EPA will design a Challenge Program to identify
  and nurture many innovative ideas and initiatives that exist throughout
  Federal agencies. A "tool" kit for how to start a pilot project will be developed
  as a part of the Challenge Program.

• Product Category Seminars. EPA will sponsor a series of seminars to bring
  together environmental and product experts, as well as standard-setting orga-
  nizations, to identify: (1) key environmental attributes associated with a cho-
  sen product category, (2) ways to measure these attributes, and (3) market
  trends associated with each of the product categories. Information from these
  seminars can serve as the basis for additional pilot projects.
Pilot Projects
and EPP
Documentation
  The EPP Program also has planned outreach activities designed to facilitate
information exchange and dissemination, particularly among small businesses
that manufacture environmental products.

• Brochure for Vendors. Also in collaboration with OFEE, EPA is developing
  a reference brochure for vendors, especially small businesses, that wish to sell
  environmentally preferable products to the Federal government. This concise,
  easy-to-read brochure will contain answers to some of the most commonly
  asked questions about how to sell goods to the Federal government, as well as
  a list of procurement contacts at Federal agencies that are significant pur-
  chasers of such goods.

• Environmentally Preferable Purchasing Symposium. In conjunction with
  OFEE and the U.S. conference of Mayors, the EPP Program will  sponsor a
  two-day symposium on July 16-17, 1997, in Baltimore, Maryland.  The sym-
  posium will bring together both the manufacturing sector and Federal agency
  personnel to introduce them to the principles of environmental preferability.
  A series of interactive workshops is planned to assist attendees in "greening"
  Federal purchasing.
Outreach

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Tool Development
and Training
   Work begun in 1996 to identify existing tools (e.g., sources of environmental
information, life-cycle assessment/life-cycle costing) will continue in Fiscal Year
1997. Additional work will take place to identify purchasers' training needs. The
GSA/EPA cleaning products team, for example, plans to develop educational and
training materials. The next EPP Update will provide more detailed information
on specific Agency plans.
Policy
Development/
Resolution of
Key Issues
  The EPP Program will continue to develop and refine policies and work to
resolve key issues affecting EPP. The four issues that will be examined in Fiscal
Years 1997 include:

• Third-Party Certification Programs and EPP. Certification programs have
  been among the most active advocates for environmentally preferable prod-
  ucts. While their services are typically bought by product producers, their
  work is oriented toward consumers. The potential role of such programs in
  advising Federal purchasers has been controversial, with vendors concerned
  about certification criteria and access to certification.

• ISO 14000 and EPP. The International Organization for Standardization
  (ISO) is best known for setting technical performance and compatibility stan-
  dards for manufactured products. More recently, it has developed the ISO
  9000 series of standards for quality assurance. For the last few years, under the
  auspices of ISO, experts from over 100 countries worldwide have been work-
  ing to shape voluntary consensus standards covering such environmental top-
  ics as environmental management systems, eco-labeling, life-cycle assessment,
  and environmental aspects of product standards. Because these standards have
  the potential to foster or complicate the EPP Program's goals, EPA is moni-
  toring the ISO process.

• Trade and EPP. EPA understands that even the best-intentioned preference
  programs such as EPP can appear to interfere with free trade. The develop-
  ment of environmental product standards by trading partners could serve as a
  means for Federal agencies to identify environmentally preferable products or
  could lead to emerging trade-related conflicts. For example,  eco-labeling
  requirements may be viewed as incompatible with the Agreement on
  Technical Barriers to Trade.

• The "Green Company" and EPP. Because identifying environmentally
  preferable products can be costly, time-consuming, or uncertain, the EPP
  Program will explore how the concept of the "green company" can be used to
  help guide Federal purchasing decisions. Key issues include how to identify
  such companies, for the purposes of the EPP Program, and how to opera-
  tionalize the concept as an adjunct to the proposed EPP principles.

  The EPP Program will be taking an in-depth look at these four policy areas
and will develop publicly available issue  papers on them. Future updates will
provide information on the status of these issue papers.

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        EPP DOCUMENT REQUEST FORM
            Please check the documents you are interested in receiving, complete the mailing information,
          and fold and return this pre-addressed form to us c/o EPAs Pollution Prevention Information
          Clearinghouse (PPIC).

           	EPA Guidance on the Acquisition of Environmentally Preferable Products and Services (as pro
               posed in the Federal Register on September 29, 1995), 60 FR 50722.

           	Environmentally Preferable Products: Proposed Guidance (Brochure), EPA744-F-94-002.

           	Summary of Comments at the Public Meeting on Proposed Guidance on Acquisition of
               Environmentally Preferable Products and Services, Final Report, EPA742-R-96-005.

           	A Study of State and Local  Government Procurement Practices  that Consider Environmental
               Performance of Goods and  Services, EPA742-R-96-007.

           	EPA/GSA Cleaning Products Pilot Project—A Case Study, EPA742-R-97-002.

           	EPA/GSA Cleaning Products Pilot Project—A Fact Sheet, EPA742-F-97-001.
          Name:
                    Title:
          Organization:.

          Address: 	
          Telephone: _(_
J
_Fax: ( 	)
            To help EPA track interest in EPP, please check the appropriate category for your organization:

           	  Academia                 	  Government         	 Not-For-Profit

           	  Business & Industry        	  Legal

           	  Consulting                	  Other	
            Please let us know what kinds of specific information you would like to see in future EPP Updates.
          Do you want to know more about EPP tools (e.g., specifications, certifications, contract language)? Do
          you want to know what's happening with EPP in other countries? Do you have EPP information you
          wish to share? Please jot down your ideas below and return this pre-addressed form to us.

                                                         U.S. Environmental Protection Agency
                                                         Region 5, Library (PL-12J)
                                                         77 West Jackson Boulevard. 12th Floor
                                                         Chicago, IL  60604-3590

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