Guidance on Acquisition of Environmentally Preferable Products and Services; Solicitation of Comments

SUMMARY: This document announces a proposed general guidance designed

to assist Executive agencies in identification and acquisition of

environmentally preferable products. This document also solicits

comments from all interested parties on the proposed guidance. The

proposed guidance is in response to section 503 of the Executive Order

12873 on Federal Acquisition, Recycling and Waste Prevention.

DATES: All written comments must be received on or before November 28,

1995.

ADDRESSES: Written comments must be submitted in triplicate and

identified with docket number OPPTS--00149 to: OPPT Document Control

Officer (7407), Office of Pollution Prevention and Toxics,

Environmental Protection Agency, Rm. E-G99, 401 M St., SW., Washington,

DC 20460.

Comments and data may also be submitted electronically by sending

electronic mail (e-mail) to:[email protected]. Electronic comments

must be submitted as an ASCII file avoiding the use of special

characters and any form of encryption. Comments and data will also will

also be accepted on disks in WordPerfect in 5.1 file format or ASCII

file format. All comments and data in electronic form must be

identified by the docket number OPPTS-00149. No Confidential Business

Information (CBI) should be submitted through e-mail. Electronic

comments on this proposed guidance may be filed online at many Federal

Depository Libraries. additional information on electronic submissions

can be found in Unit V. of this document.

FOR FURTHER INFORMATION CONTACT: For general information: Danielle

Fuligni, telephone number: 202-260-4172, e-mail:

[email protected],epa.gov. For computer information: John

Shoaff, telephone number: 260-1831, e-mail:

[email protected]. For green building information: Peter

Thompson, telephone number: 260-8612, e-mail:

[email protected]. For General Services Administration/EPA

Cleaners Project information: Tom Murray, telephone number: 260-1876,

e-mail: [email protected]. Mailing address for all contact

persons except for Tom Murray: Environmental Protection Agency, Office

of Pollution, Prevention, and Toxics (7409), 401 M St., SW.,

Washington, DC 20460. Mailing address for Tom Murray: Environmental

Protection Agency, Office of Pollution, Prevention, and Toxics (7406),

401 M St., SW., Washington, DC 20460.

SUPPLEMENTARY INFORMATION:

I. Introduction

On October 20, 1993, President Clinton signed Executive Order 12873

entitled ``Federal Acquisition, Recycling and Waste Prevention.''

Section 503 of this Executive Order requires EPA to ``issue guidance

that recommends principles that Executive agencies should use in making

determinations for the preference and purchase of environmentally

preferable products.'' EPA plans to hold a public meeting in October

1995, in Washington, DC to solicit input from interested parties

concerning this proposed guidance. More detailed information about the

meeting will be published in the Federal Register at a later date.

II. Process

To implement section 503, EPA established a process to solicit

public input from all interested persons and organizations prior to

development of the proposed guidance. EPA developed a ``concept paper''

that outlined preliminary thoughts on how the guidance might be

structured and some guiding principles for implementation of section

503. The public was given an opportunity to comment on the concept

paper, and over 50 comments were received. EPA also held a public

meeting at which over 20 Executive agencies, companies, organizations,

and individuals presented testimony.

In addition, EPA held meetings with ``stakeholders'' to give

interested parties an additional opportunity to present their views on

how EPA should proceed in developing principles for Executive agencies

to use when making determinations for the preference and purchase of

environmentally preferable products (EPPs). Meetings were held with

over 20 stakeholders companies and organizations. EPA also consulted

with the major purchasing agencies. Use of this public process has

given EPA an appreciation for the diversity of views and complexity of

the issues involving the acquisition of environmentally preferable

products. EPA is open to alternate approaches and welcomes comments on

ways to encourage the acquisition of environmentally preferable

preferable products.

This proposed guidance is meant to serve as a framework for

interested parties to begin a dialogue on environmentally preferability

of products and services as it is applicable within the Federal

purchasing context. It is also EPA's first comprehensive articulation

of its policy on ``green'' products and as such, it will evolve over

time as scientific and technical understanding expands. What follows

should serve as a backdrop for comments.

This proposed guidance reflects many months of deliberations and

discussions with a wide variety of interested parties, including

companies, Executive agencies, academia, environmental organizations,

and others. During the process of developing this guidance, it became

apparent that different parties had very divergent views on how EPA

should go about implementing the Executive Order mandates. Given this,

EPA recognizes that the guidance cannot meet all of the needs of all of

the interested parties. Instead, the document attempts to capture these

many views within a single document while presenting a possible

approach that EPA believes will lead to effective implementation of the

Executive Order.

EPA's effort to define and apply environmental preferability is not

being done in a vacuum. Other initiatives are underway that will impact

the Federal government's policies on acquisition and environmental

management, most notably the National Performance Review (NPR, also

commonly referred to as the ``Reinventing Government'' initiative).

Another initiative is the interim rule amending the Federal Acquisition

Regulation (FAR) which will allow consideration of broad environmental

factors in acquisition decisions. \1\

\1\ ``Federal Acquisition Regulation: Environmentally Preferable

Products,'' Interim Rule, Federal Register (60 FR 28494, May 31,

1995).

---------------------------------------------------------------------------

At the same time that the Environmentally Preferable Products

guidance is being developed, for example, efforts are being made to

streamline and simplify the Federal government's procurement process

under the NPR. The result will be to reduce the bureaucracy of Federal

procurement by delegating additional purchasing authority away from

procurement personnel and towards all government employees. To the

extent that the streamlining will result in increasing the overall

number of

[[Page 50723]]

government purchasers, this guidance will have to be broadly

distributed, easily understandable, and supplemented by education and

training for government purchases on the environmental implications of

their purchasers as well as tools to improve their purchasing

performance.

The proposed guidance is intended, like the NPR, to promote a

government that ``works better and costs less.'' It will work better by

reducing its negative impacts on the environment and ensuring

productive, sustainable natural systems. And it will cost less by

incorporating environmental considerations into its decisions (in this

case, purchasing decisions) and, from a fiscal as well as an

environmental standpoint, operating its facilities and programs more

efficiently. \2\

\2\ From ``Creating a Government That Works Better and Costs

Less: Reinventing Environmental Management,'' page 2.

---------------------------------------------------------------------------

To help Executive agencies move forward in acquiring

environmentally preferable products, and to help in the further

development of the tools and knowledge base to support this initiative,

EPA is recommending that voluntary pilot projects be undertaken by

Executive agencies. EPA believes that these pilot acquisitions will

serve as the ``laboratories'' for applying this proposed guidance,

helping to test the workability of the concepts presented and providing

valuable information that can be used to improve the guidance in the

future. The proposed guidance includes a more detailed discussion of

the pilots.

EPA believes that this proposed guidance provides the first step in

bringing forward the key issues surrounding the acquisition of

environmentally preferable products, allowing Executive agencies to

make the necessary choices more effectively. This proposed general

guidance, however, will not answer many of the questions which may

arise in acquisition of a particular product category or service, and

thus is not intended for use by individual procurement officials.

Instead, EPA envisions that the results of the pilot acquisitions will

more closely address the needs of the acquisition community. However,

EPA believes that this guidance will nonetheless, inform procurement

officials interested in making decisions involving environmental

preferability.

EPA intends this proposed guidance to serve as a broad framework

for acquisitions involving environmentally preferable products or

services. Following the issuance of this broad, umbrella guidance, EPA

intends to issue more specific guidance on certain product categories.

Product categories could include not just common supplies but also

services, facilities and/or systems. Which product categories will be

the subject of specific guidance will depend upon the plans of the

individual Executive agencies and on comments that are solicited from

the public. EPA plans to use a public process to develop the product

category-specific guidances, so as to draw on the extensive knowledge

from both within and outside of the government.

III. Request for Comment

EPA request comments on all aspects of this proposed guidance and

is interested in receiving comments as they relate to the following

sections in this unit.

A. General Framework

Will the framework suggested in the guidance be effective

in promoting federal purchase of environmentally preferable products

and expand public sector markets for these goods and services? How

might it be improved?

B. Guiding Principles

The proposed guidance presents seven guiding principles.

Combined, do these seven principles convey the multi-dimensional and

dynamic nature of environmental preferability? Are these the principles

that Executive agencies should follow? Are all of these principles

appropriate or of equal importance to Executive agencies? What are the

best ways to operationalize these principles so that they are easy for

procurement officials to use in identifying and giving preference to

environmentally preferable products and services?

In collaboration with other Executive agencies, EPA plans

to test out many of the concepts contained in the guiding principles

through pilot acquisitions focused on specific product categories. EPA

seeks comments on ways that can best facilitate operationalizing the

concepts in the guidance through pilot acquisitions and other

approaches and which will result in practical, user-friendly tools.

The proposed guidance promotes a life-cycle perspective to

determining environmental preferability. EPA seeks comments on the best

and least burdensome ways to encourage reporting of life-cycle

information and to embark on practical life-cycle approaches. Is it

possible to determine some minimum level of life-cycle information that

is necessary to reasonably evaluate environmental preferability of a

product or service? What is this minimum level? The government's need

for any information needs to be weighed against the burden on vendors

of providing, and consumers interpreting, that information.

The concept of multiple attributes has been presented as a

separate principle (Principle #2) from the concept of life-cycle

perspective (Principle #3). EPA seeks comments on whether some

combination of attributes can determine a product's overall

environmental performance or whether such a determination can only be

made after assessing the environmental effects during the product's

life-cycle. If the latter is more appropriate, EPA seeks comments on

whether these two principles should be merged into a single principle

so that attributes associated with products are always viewed in the

context of a life-cycle perspective.

C. Proposed Menu of Environmental Performance Characteristics

As part of the guidance, EPA proposes to offer a

preliminary list of attributes that can serve as a starting point for

presenting and comparing environmental information of products and

services. This menu of environmental performance characteristics is

attached to the guidance as Appendix B(1). Are these the right set of

attributes? What should be added or deleted? Should the list include

exposure factors associated with the materials, e.g., potential for

exposure (low/high likelihood), number of people exposed, duration of

exposure, magnitude of exposure, length of time until exposure, number

of acres exposed, number of species exposed, etc? If so, how should

these exposure factors be defined? How should the environmental

attributes be characterized, i.e., in terms of environmental releases

or effects, risks to human health and the environment, or some other

characterization? Who should be involved in narrowing down the list of

attributes to determine environmental preferability for a specific

product category?

D. Establishing Core Environmental Values

Deciding whether one product is more environmentally preferable

than another inevitably involves judgements that one environmental

impact or environmental stressor is more important than another. The

EPA believes that it is appropriate and important to establish a

possible framework for a discussion of environmental priorities, and

recognizes that there are various ways in which the government may

establish

[[Page 50724]]

environmental priorities. One possibility for establishing

environmental priorities is to use the matrix of ecological stressors

and the list of high risk human health stressors that were developed by

EPA's Science Advisory Board (SAB) and published in its 1990 report

``Reducing Risk: Setting Priorities and Strategies for Environmental

Protection.''

EPA believes that this report and its findings may offer an

appropriate baseline around which to frame the public discussion

regarding the establishment of environmental priorities in the context

of purchasing environmentally preferable products or services. It

should be noted that the rankings in the report are not perfect; they

may be incomplete and may emphasize global-scale impacts, at the

expense of local ones. EPA is presenting the following matrix of

ecological stressors and the list of stressors presenting high risk to

human health to begin the public debate, and is very interested in

receiving comments on whether this proposed approach should be used for

making decisions concerning the relative environmental priorities and

thereby assist in determining the preferability of products or

services.

EPA recognizes that determining which environmental impacts are

most important and setting environmental priorities involve certain

value judgements. Who should be responsible for making decisions

concerning the relative environmental priorities? EPA envisions

applying this decision matrix within the context of pilot acquisitions

in hopes of learning how Executive agencies should establish

environmental priorities for making decisions about environmental

preferability. EPA is interested in receiving comments about this

proposed approach. EPA proposes including this decision matrix and the

list of human health impacts in the guidance as Appendix E. Should this

approach be considered for inclusion as an Appendix to the guidance?

1. Ecological priority impacts matrix. The Decision Matrix for

ecological priority impacts, which is presented below, would provide

some guidance to Executive agencies on making trade-offs among various

environmental attributes.

According to EPA's Science Advisory Board, the ecological recovery

time affects the severity of the risk; the longer the recovery time

(the less reversible the damage), the higher the risk of that

ecological stressor. Thus, the matrix uses reversibility of the impact

as the horizontal axis for estimating the severity of the risk

associated with environmental attribute information provided by the

vendor. Stressors whose effects cause the ecosystem to take centuries

or an indefinite amount of time to recover are given a greater risk

ranking than those that take years or decades to recover. Non-renewable

resource consumption, for example, is considered a more significant

ecological stressor than the discharge to water of conventional

pollutants such as biochemical oxygen demand, loadings, from which an

ecosystem can recover in years.

The Science Advisory Board also considered significant the

geographic scale of the area subject to the stress and the importance

of the ecosystem that is actually affected within the stressed area.

Thus, ecological stressors that have impacts on a global or biosphere

basis are to be considered higher risk or more significant than

ecological stressors that have an impact only on a local or regional/

ecosystem basis. The Agency has, therefore, used geographic scale of

the stressor's impact as the vertical axis for its matrix.

Table 1.--Ecological Priority Impacts Matrix Geographic Scale/

Reversibility

------------------------------------------------------------------------

Centuries/

Years Decades indefinite

------------------------------------------------------------------------

Local/Regional... Rapidly Renewable

Resource

Consumption.

Conventional

Pollutants.

National......... Hazardous Air Bioaccumulative

Pollutants. Pollutants.

Renewable

Resource

Consumption.

Chemical Releases

Global........... ................. ................ Non-renewable

Resource

Consumption.

Ecosystem

Impacts.

Ozone Depleting

Chemicals.

Global Warming

Gases.

------------------------------------------------------------------------

2. List of stressors presenting high risk to human health. The list

of stressors below have been identified by the Science Advisory Board

in its ``Reducing Risk'' report as presenting high risks to human

health. The stressors are not listed in any particular order of

importance:

Ambient air pollutants.

Hazardous air pollutants.

Indoor air pollution.

Occupational exposure to chemicals.

Bioaccumulative pollutants.\3\

\3\ The EPA has added bioaccumulative pollutants to the list of

stressors that pose high risks to human health. While not explicitly

identified in the SAB report as a high risk stressor, the report

does provide support for this addition. The Science Advisory Board

(SAB) did not consider bioaccumulative pollutants as a high risk

stressor in part because ``Unfinished Business'' (an earlier report

that provided the basis for ``Reducing Risk'') did not separately

break out this category; that report focused on pollutants based on

the Agency's organizational and regulatory structure. The SAB report

discusses bioaccumulative pollutants in several sections, however,

as posing potentially high risks. For example, the report states:

``It is also noteworthy that certain environmental toxicants--such

as heavy metals, PCBs, and long-lived radionuclides--tend to persist

indefinitely in the environment and may gradually become

concentrated in certain components of the human food chain.

Consequently, such toxicants may continue to pose a threat to human

health long after their release into the environment has halted.''

See Appendix B: The Report of Human Health Subcommittee of Reducing

Risk for a more complete discussion of the human health stressors

listed above and how the SAB determined that they presented a

significant risk.

---------------------------------------------------------------------------

EPA believes that this is one approach to making decisions

concerning the relative environmental preferability of products. EPA

seeks comments on the usefulness of the ecological impact matrix as

well as the list of high priority human health impacts. In addition,

readers are encouraged to provide their thoughts concerning the

placement of the impacts in the matrix, gaps in the matrix, and whether

or not the human health impacts can be prioritized in a similar manner.

Comments on other methods of prioritizing ecological and human health

impacts are also solicited.

[[Page 50725]]

E. Third Party Environmental Certification Programs

EPA recognizes that a number of public and private programs already

award ``seal-of-approval'' labels on consumer products for certain

environmental attributes. Some programs have developed a ``report

card'' approach whereby certain environmental information about a

product or groups of products is profiled. Yet others certify single

attribute claims made by manufacturers. More than 20 countries have

environmental labeling programs and a number of private companies and

non-profit programs claim to either identify environmentally preferable

products here in the United States or label products based on

environmental attributes. These third party environmental certification

programs can play the important role of helping consumers identify

which products are less environmentally damaging.\4\

\4\ The term, third party environmental certification program,

is used to capture the different types of programs, including those

which verify single environmental claims, compile report cards,

award seals, etc.

---------------------------------------------------------------------------

Although these third party environmental certification programs

currently operate primarily in the consumer sector, their influence in

the Federal marketplace could become significant. For example, as

streamlining efforts allow more Federal employees to make direct

purchasing decisions, agency personnel, in their purchases of

commercially available or ``off-the-shelf'' items may come to equate

the ``seals'' or ``report cards'' of these programs as being

environmentally preferable.\5\ In addition, as Executive agencies begin

to implement Executive Order 12873, it is possible that Executive

agencies will look to these programs to assist in identifying

environmentally preferable products in specific procurement. However,

Executive agency decisions regarding federal procurement, including

those involving the environmental preferability of products, are

considered to be an inherent government function. As such, Executive

agencies need to ensure that an acquisition decision does not turn on

an unverified policy, or value judgment by a non-government entity.

\5\ This may not be warranted particularly if the seal or report

card does not provide sufficient information about the criteria used

to judge the product.

---------------------------------------------------------------------------

Currently, there are no widely accepted standards for how these

programs should operate. Although organizations such as the

International Standards Organization (ISO) have initiated efforts to

develop a ``code of conduct'' for eco-labeling programs, the resulting

standards will not be finalized for a number of years.\6\ Until

international standards or other practices are developed, EPA believes

that it is appropriate for Executive agencies to consider the following

questions if evaluating such programs for use in making decisions

regarding the environmental preferability of products. Does the program

have:

\6\ Work on eco-labeling is being done under the Technical

Committee on Environmental Management System (TC 207).

---------------------------------------------------------------------------

An open, public process that involves key stakeholders

(businesses, environmental and consumer groups, 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 which 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 facility whose product is

certified to ensure compliance with the standards or criteria?

Testing protocols for the products that are certified

which 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 as high as to prevent

access by companies)?

Compliance with the Federal Trade Commission's (FTC)

Guides for the Use of Environmental Marketing Claims?

EPA believes that Executive agencies should not make decisions

regarding the environmental preferability of products based on third

party environmental certification programs that do not generally meet

these basic characteristics. EPA is interested in receiving comments on

this proposed approach to dealing with the use of third party

environmental certification programs by Executive agencies in making

decisions regarding environmental preferability. Although EPA is not

proposing that these characteristics be used by individual Federal

procurement personnel and does not plan for them to serve as a model

for Federal approval of third party environmental certification

programs in the private marketplace, it does believe that these

characteristics may nonetheless be helpful to decisionmakers. EPA

proposes to include this discussion in the guidance as an Appendix F.

Should this be considered for inclusion as an Appendix to the guidance?

Does the existing FTC Guides help Executive agencies to evaluate third

party environmental certification programs?

F. Other Issues

In addition to these specific topics, EPA is also interested in

soliciting ideas from the public concerning tools (e.g., a computerized

software tool for evaluating products, etc.) that would be useful to

Executive agencies in identifying and purchasing ``green'' products.

Finally, EPA is requesting suggestions for product categories to target

for specific pilot acquisitions and additional guidance.

IV. The Proposed Guidance

For the convenience of the reader, the proposed guidance is

published below in its entirety.

Proposed Guidance on Acquisition of Environmentally Preferable

Products and Services

I. Introduction

Executive Order 12873. On October 20, 1993, President Clinton

signed Executive Order 12873, entitled ``Federal Acquisition,

Recycling and Waste Prevention.'' \1\ Section 503 of this Executive

Order requires EPA to ``issue guidance that recommends principles

that Executive agencies should use in making determinations for the

preference and purchase of environmentally preferable products.''

``Environmentally preferable'' is defined in the Executive Order to

mean ``products or services that have a lesser or reduced effect on

human health and the

[[Page 50726]]

environment when compared with competing products or services that

serve the same purpose.''

\1\ Executive Order 12873 is one in a series of executive orders

that President Clinton has signed since 1993 that emphasizes Federal

government purchasing practices to promote environmental goals.

Other executive orders include: Executive Order 12843, Procurement

Requirements and Policies for Executive Agencies for Ozone Depleting

Substances; Executive Order 12844, Federal Use of Alternative Fueled

Vehicles; Executive Order 12845, Federal Procurement of Energy

Efficient Computers; Executive Order 12856, Pollution Prevention and

Right-to-Know in the Government; Executive Order 12902, Energy

Efficiency and Water Conservation at Federal Facilities;

Presidential Memorandum on Environmentally and Economically

Beneficial Practices on Federal Landscaped Grounds.

---------------------------------------------------------------------------

The guidance proposed below is designed to help Executive

agencies meet their obligations under this Executive Order to

identify and purchase environmentally preferable products and

services.\2\ It 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. EPA believes that this guidance provides the first step

in bringing forward the key issues surrounding the acquisition of

environmentally preferable products, allowing Executive agencies to

make the necessary choices more effectively. EPA recognizes that

this proposed general guidance, however, will not answer many of the

questions which may arise in acquisition of a particular product

category or service and thus is not intended, although it will be

informative, for use by individual procurement officials.

\2\ Section 401 of Executive Order 12873 requires Executive

agencies to consider the use of environmentally preferable products

in acquisition planning for all procurement and in the evaluation

and award of contracts, as appropriate. Section 501 of the Executive

Order requires Executive agencies to ``review and revise federal and

military specifications, product descriptions and standards to

enhance Federal procurement of products'' that are environmentally

preferable. Section 503(b) of the Executive Order requires Executive

agencies to use the guidance developed by EPA ``to the maximum

extent practicable'' in identifying and purchasing environmentally

preferable products.

---------------------------------------------------------------------------

The guidance attempts to implement the goals of the National

Performance Review and procurement reform objectives of making

Federal purchasing a simpler and not a more complex process. This

guidance also recognizes that defining what is an environmentally

preferable product and service may require a complex balancing of

different environmental factors. In sum, the guidance does the

following:

Focuses on all types of acquisition, from supplies and

services to buildings and systems.

Establishes a general, umbrella guidance and requests

Executive agencies to select voluntary pilot acquisitions or

demonstration projects.

Establishes a framework for issuing more detailed

guidances on specific product categories that are related to current

or future pilot acquisitions.

Establishes a set of guiding principles.

Outlines a number of steps for Executive agencies'

short-run and medium-run implementation.

II. Broad Principles and Approach

A. Overall Approach

In implementing section 503 of the Executive Order, EPA proposes

an approach that has two components. The first is the publication of

this general, umbrella guidance. Following this, additional

guidances will be issued that will focus on specific product

categories. These will be linked to the pilot acquisitions selected

by Executive agencies. A more detailed discussion of how these pilot

acquisitions might work is included in Section III.B.

Although both components are meant to address multiple audiences

(e.g., acquisition community, companies, environmental

organizations, etc.), each has a slightly different target audience

in mind. The first component, which sets a broad policy framework,

is aimed primarily at policy makers and others, both in the public

as well as in the private sector, who may be interested in EPA's

first comprehensive statement on ``green'' products. The second

component, which will result in more detailed and practical guidance

on specific product categories, will be aimed at the procurement and

the acquisition personnel. By making clear its goals and directions,

both the general and product category specific guidances (PCSGs)

should also provide pragmatic direction for companies who desire to

produce more environmentally preferable products and services, and

who seek to sell those products and services to the Federal

government. The consideration of environmental factors in purchasing

needs to be put in the context of other important considerations

such as performance, health and safety issues and price.

Figure 1 illustrates the approach which is described above.

BILLING CODE 6560-50-M

[[Page 50727]]

[GRAPHIC][TIFF OMITTED]TN29SE95.005

BILLING CODE 6560-50-C

[[Page 50728]]

B. Guiding Principles

The following seven principles are recommended as a broad guide

to help Federal purchasers address environmental preferability in

Federal acquisitions.

Guiding Principle 1:

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 has been estimated that 70 percent or more of the costs of

product development, manufacture, and use are determined during the

initial design stages.\3\ Thus, customized purchases or projects

where program managers, architects, engineers, systems designers, or

others have influence over the design phase afford the agencies an

early opportunity to apply environmental preferability and offer a

unique point of leverage from which to address environmental

impacts.

\3\ From Office of Technology Assessment's ``Green Products by

Design,'' page 3.

---------------------------------------------------------------------------

Environmental preferability does not involve just substituting

one ``green'' product for another, it also involves questioning

whether a function needs to be performed, and how it can best be

performed to minimize environmental impacts. For instance, in

degreasing operations, the question is often posed 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/degreasing step can be

eliminated without affecting the overall performance of the product

or system. This might be accomplished for example, by consolidating

cleaning/degreasing in a later stage of the manufacturing process or

changing the process itself.

Guiding Principle 2:

A product or service's environmental preferability is a function

of multiple attributes.

Environmental preferability is a function of many attributes

(e.g., energy efficiency, impacts on air, water, and land and

fragile ecosystems, etc.), not just one or two. Targeting a single

environmental performance characteristic for improvement, like

energy efficiency or recycled content, may be much easier, because

they are more easily defined (most of the time), measured and

understood. By focusing on one dimension of a product's performance,

however, one might overlook other environmental impacts associated

with the product that may cause equal or greater damage.

Furthermore, it is possible that improvements along one dimension

may result in other unintended negative environmental impacts along

another dimension.

The menu of environmental performance characteristics described

in Appendix B offers a preliminary list of product or service

attributes that can help to identify environmentally preferable

products.

Guiding Principle 3:

Environmental preferability should reflect life-cycle

considerations of products and services to the extent feasible.

Ideally, ``environmental preferability'' of a product or service

should be determined by comparing the severity of environmental

damage that the product or service causes to human health and

ecological health across its life-cycle with that caused by

competing products--from the point of a raw materials acquisition,

through product manufacturing, packaging, and transportation to use

and ultimate disposal.

The term ``life-cycle'' is often interpreted by different people

to mean very different things. To some, it connotes an exhaustive,

extremely time-consuming and very expensive analysis. To other life-

cycle is an abbreviated process whereby a long list of potential

environmental attributes and/or impacts is narrowed to just a few

which provide the basis for comparison across a particular product

category. This guidance promotes the latter interpretation and

encourages the use of tools which are currently available. For

starters, Executive agencies are directed to EPA's document

``Federal Facility Pollution Prevention Project Analysis: A Primer

for Applying Life Cycle and Total Cost Assessment Concepts.'' (EPA

300-B-95-008, July 1995)

A more detailed discussion of issues related to life-cycle

considerations is included in Appendix C.

Guiding Principle 4:

Environmental preferability should consider the scale (global

vs. local) and temporal reversibility) aspects of the impact.

Determination of environmental preferability may require

weighing the various environmental impacts among products. For

example, is the impact of increased energy requirements of one

product more tolerable than the water pollution associated with the

use of another product? While there is no clear hierarchy as to

which attributes or environmental impacts are most important, EPA

has articulated, in its Science Advisory Board's 1990 report

entitled Reducing Risk, 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. Applying this principle suggests that products with

pollutants whose effects are local and rapidly reversible are to be

generally preferred over products that impose global and

irreversible environmental damages.

A matrix of priority ecological impacts that reflects the scale

and temporal consideration of impacts, and a list of priority human

health impacts is included in a discussion in proposed Appendix E.

Guiding Principle 5:

Environmental preferability should be tailored to local

conditions where appropriate.

The importance of environmental impacts may vary depending on

geographic location and other site-specific factors, such as the

variation in the availability of natural resources and pollutant

effects on a particularly sensitive ecosystem. For example, products

that conserve water usage may be valued more highly by those who

live in the southwest United States where water is scarce than by

resident of the northeast where water is abundant. Thus, purchasers

may wish to consider local environmental issues when evaluating

life-cycle environmental information provided by offerors. When

making purchasing decisions, these local issues would need to be

carefully weighed against other global and national environmental

problems, such as ozone depletion and global climate change.

Guiding Principle 6:

Environmental objectives of products or services should be a

factor or subfactor in competition among vendors, when appropriate.

An approach to selecting environmentally preferable products

that promotes competition on environmental grounds among vendors is

better than an approach which inhibits competitive forces. The

consideration of environmental factors in purchasing needs to be put

in the context of other important considerations such as

performance, health and safety issues and price. A crucial element

in fostering competition and encouraging a market-driven approach is

to have disclosure of information by vendors about their products

and services. Where appropriate, Federal personnel should seek

meaningful information about the environmental aspects of products

in order to judge whether one product or service is more of less

environmentally preferable than another. The accessibility of the

information to the public (both the Federal personnel and the

general public) will help ensure its accuracy and credibility (e.g.,

through ``the power of the spotlight'') as well as to stimulate

continuous improvement in the environmental performance of vendors'

products.

Guiding Principle 7:

Agencies need to examine carefully product attribute claims.

A number of sources of information about environmental

performance of products are currently available.\4\ Two general

categories of information sources can be distinguished. The first is

manufacturers who make claims about their products either on the

product label or in their advertisements. Second, some third party

environmental certification programs evaluate environmental aspects

of products and award ``seals-of-approval'' or compile ``report

cards'' of environmental information. Others verify specific claims

made by manufacturers (e.g., product contains X percent recycled

content). The extent to which information conveyed through claims

and seals can assist Executive agency personnel in identifying

environmentally preferable products may vary depending on the types

of product being

[[Page 50729]]

purchased and the legal requirements applicable for a particular

acquisition.

\4\ Information about environmental aspects of products are much

more abundant in the consumer marketplace. However, as the Federal

acquisition system becomes more decentralized and allows for more

direct purchasing of commercially available products, the line that

distinguishes the Federal marketplace from the consumer marketplace

will become increasingly blurred and the information flow between

the two marketplaces will increase.

---------------------------------------------------------------------------

This guidance includes two tools to assist Executive agency

personnel in evaluating attribute claims or ``eco-labels'' that

appear on products. First, a summary of the Federal Trade

Commission's (FTC) ``Guides for Use of Environmental Marketing

Terms,'' appears as Appendix D. Second, EPA proposes to include a

discussion of characteristics for third party environmental

certification programs in the guidance as Appendix F. Executive

agency decisions regarding federal procurement, including those

involving the environmental preferability of products, are

considered to be an inherent government function, therefore the EPA

believes that Executive agencies should not make decisions regarding

the environmental preferability of products based on third party

environmental certification programs that do not generally meet

certain characteristics. EPA has requested comment on this proposed

Appendix.

III. Executive Agency Implementation

This section recommends steps that each agency can take to

implement the environmentally preferable provisions of Executive

Order 12873.

A. Policy Directive and Affirmative Procurement Plans

Recognizing that effective implementation will require clear

direction and support from the top levels of the agency, it is

recommended that each Executive agency issue a Policy Directive that

promotes the purchase of environmentally preferable products and

services. Elements in the policy directive should include:

An overall statement of policy:

Agency personnel should seek to reduce the

environmental damages associated with their purchases by increasing

their purchase of environmentally preferable products and services

to the extent feasible, taking into account other considerations

such as performance, health and safety issues and price.

Environmental factors should be taken into account as

early as possible in the acquisition planning and decision-making

process.

A commitment to the following:

Increase the acquisition of environmentally preferable

products and services.\5\

\5\ This is pursuant to section 602. ``Goal for Increasing the

Procurement of Recycled and Other Environmentally Preferable

Products,'' which states ``Agencies shall strive to increase the

procurement of products that are environmentally preferable or that

are made with recovered materials and set annual goals to maximize

the number of recycled products purchased, relative to non-recycled

alternatives.''

---------------------------------------------------------------------------

Identification of voluntary pilot projects (see

discussion below).

Establishment of incentive and award programs to

recognize those people, teams, and interagency work groups who are

most successful at promoting the purchase of environmentally

preferable products.\6\ Collaboration among agencies to provide

education and training is highly encouraged.

\6\ This is pursuant to section 302(b)(2) of the Executive Order

that states that Agency Environmental Executives shall ``establish

incentives, provide guidance and coordinate appropriate educational

programs for agency employees.''

---------------------------------------------------------------------------

In order to minimize the burden on Executive agencies, EPA

recommends that provisions of the Policy Directive to promote

environmentally preferable products be incorporated into individual

agency's Affirmative Procurement Plans.\7\ This can be done as

agencies revise their Plans.

\7\ Under section 6002 of the Resource Conservation and Recovery

Act of 1976, 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 other

environmentally preferable products.

---------------------------------------------------------------------------

B. Pilot Projects

The discussion in Section II.B. identified seven principles

which are key to promoting the purchase of environmentally

preferable products. To encourage Executive agencies to move forward

in acquiring environmentally preferable products and to further

develop the infrastructure and knowledge base to support this

initiative, EPA is recommending that voluntary pilot projects be

undertaken by Executive agencies.

The pilot acquisitions will be the ``laboratories'' for applying

the principles, will help test their workability, and through the

results of the pilots, provide actual ``lessons learned'' as well as

improved or more effective policy for future acquisitions. For each

of the pilots, a product category specific guidance (PCSG) or

``users guide'' aimed at the acquisition community will be

developed. EPA will seek involvement of established commodity

sources, such as the General Service Administration (GSA) and the

Defense Logistics Agency (DLA), who have experience and expertise

concerning their respective commodities in the pilot projects. EPA

plans to keep track of projects that are planned or already underway

and thereby serve as a focal point for information on government-

wide activities related to environmentally preferable products.

Information about different pilots will be disseminated among the

agencies to avoid any duplication of efforts and to ensure that

lessons learned in one pilot project can be shared to inform other

pilot projects.

The discussion below further describes how these pilots and

demonstration projects might work. Figure 2 illustrates this

process.

1. Selection of pilots. Selection of pilots acquisitions is at

the discretion of individual Executive agencies. Criteria that

agencies should consider in selecting pilots include:

Potential for a reduction in risk to human health and

the environment.

Feasibility/degree of flexibility in the acquisition.

Products or services that are representative or typical

of the procurement system; this maximizes the potential value of the

pilot acquisition in providing lessons as to the effectiveness of

the guidance as well as future acquisitions.

2. Short-term implementation. There are several demonstration

projects that are already in the planning or implementation stages

that illustrate how to promote the purchase of environmentally

preferable products. These include:

GSA/EPA Cleaning Products Pilot

In 1993 at the request of GSA, EPA began developing

environmental performance criteria that would help identify

``green'' cleaning products. Stakeholder meetings were held to

develop the criteria, and a study was undertaken to look at product

efficacy and the relationship between product performance and

environmental impact. Using the results of these efforts, GSA's

Federal Supply Service is developing a solicitation for a multiple

award schedule that will convey from vendors to federal consumers

information on attributes of cleaning products that can serve as

indicators of environmental impacts. This information will then be

available to purchasers for their examination when selecting

products. As part of this pilot, EPA will examine the information

provided on the ``environmentally preferable cleaning products''

schedule and will select cleaning products for EPA facilities.

GSA/EPA Computer Pilot

Computer hardware accounts for approximately $4.6 billion in

purchases by the Federal government annually. Currently, the Federal

government has been successful in purchasing energy efficient Energy

Star computers which have resulted in significant environmental

benefits and cost savings. Using its purchasing power, the Federal

government can and, in the case of Energy Star, has stimulated

product manufacturers to make environmental improvements. EPA and

GSA, in collaboration with computer manufacturers and others, are

seeking to expand the Energy Star model to identify additional

attributes that can be used in the acquisition of environmentally

preferable computers.

Current Sources for Products With Environmental Attributes

Executive agencies have the option of acquisition products

through various supply sources available from GSA and DLA. GSA's

Multiple Award schedules (MAS) are one such source of supply. With

recent modifications, these schedules offer to purchasers some

information on the environmental performance of products. GSA also

currently publishes an Environmental Products Guide which identifies

those products which vendors have associated with an environmental

claim and a New Item Introductory Schedule that often includes

information on the environmental performance of products.\8\ While

agencies should consider purchasing items from this Guide, they

should be aware that often the claims refer to a single

environmental attribute (e.g., recycled content) and are not

verified by GSA. GSA is planning to enlist EPA's assistance in

implementing a demonstration project that will involve expanding

these publications to include

[[Page 50730]]

more comprehensive information on the environmental performance of

products.

\8\ Other catalogs of supply include GSA's Supply Catalog and

DLA's Energy Efficient Lighting Catalog.

---------------------------------------------------------------------------

3. Medium term implementation. In addition to completing the

aforementioned pilots that have already been initiated, EPA requests

that Executive agencies select voluntary acquisitions that would

become the next wave of pilots and which would also benefit from

lessons learned from those case studies already underway or

completed. These voluntary pilots will be implemented in three

phases.

Phase I--Agencies will identify possible pilot projects. Based

on their selections, additional guidance targeting specific product

categories will be developed and published. EPA will support these

pilots, providing overall coordination and technical assistance, as

resources allow. The product category-specific guidances will

include the following:

A qualitative description of the most important

environmental performance characteristics for that product category;

this will involve a scoping process that will include technical

experts both inside and outside the government.

A description of standard methods by which those

characteristics can be measured.

Institutionalizing the purchase of environmentally preferable

products in the long run requires that the efforts on the part of

the Executive agencies not end when these pilots are completed. So

that agencies will continue to acquire ``green'' products, EPA will

coordinate an effort to develop additional guidance documents for

product categories that will become the subjects of future pilots.

These guidance documents, similar to the product category-specific

guidances described above, will describe environmental performance

characteristics and measurement methods, and will be developed

through a process involving technical experts both inside and

outside the government. The identity of the product categories to be

targeted for additional guidance will be determined at a future

date, and will be influenced by suggestions that are submitted

during the public comment period on this proposed guidance.

Phase II--Applying the product category-specific guidance to the

acquisition process, agencies will actually purchase environmentally

preferable products. While the acquisition strategy and method are

left to the discretion of the purchasing agency, Executive agencies

are asked to select the procurement strategy that:

Maximizes the number of environmentally preferable

product choices available to the purchasing Agency.

Promotes competition across products in terms of

environmental performance.

Stimulates product and process innovation and

continuous improvement.

Allows for the consideration of local environmental

conditions.

Promotes a definition of environmentally preferable

products that can improve over time.

Phase III--Upon completion of the pilot project, a compilation

and analysis of lessons learned in the acquisition process, data

gathered about product categories and results of the pilots will be

assembled. The results of these joint efforts will be shared with

other agencies through the Electronic Acquisition Network process.

EPA believes that the lessons learned from these efforts will help

to refine the concepts and principles contained in the general

guidance and thereby ensure the effective implementation of the

mandates in the Executive Order.

BILLING CODE 6560-50-M

[[Page 50731]]

[GRAPHIC][TIFF OMITTED]TN29SE95.006

BILLING CODE 6560-50-C

[[Page 50732]]

4. Long-term success. The experience gained from the short- and

medium-term pilots will be key to determining the scope and nature

of EPA's long-term activities to advance Federal acquisition of

environmentally preferable products and services. The lessons

learned from these pilots as well as the partnerships formed during

the pilots will help to establish a broader infrastructure to

support this initiative. EPA may need to utilize existing or help

develop new mechanisms--guidance, networks, data bases, etc.--in

support of the Federal purchasing community to build this

infrastructure. The infrastructure can serve to bridge the gap

between the environmental and procurement expertise within the

Executive agencies.

All Federal personnel will have a role in creating a demand for

products and services that have fewer environmental burdens. Thus,

the infrastructure will also have to support the development of

tools that are easy and convenient for Federal personnel to use in

selecting and purchasing environmentally preferable products.

Furthermore, in light of the evolving acquisition landscape and

the dynamic nature of the marketplace, the infrastructure will have

to be flexible in order to meet the changing needs of the

acquisition community. Given the increased globalization of the

economy and the trend towards commercialization of the Federal

marketplace, another important consideration will be to coordinate

this initiative with new interntional trade and standardization

developments. Ultimately, the measure of success of this initiative

will be in terms of increased availability and purchase of products

and services that have fewer impacts on human health and the

environment.

Appendix

The set of appendices that follows should be viewed by procuring

officials and other government employees as separate but related

``tools boxes'' to be used in determining preferability. As with all

tasks, the type and complexity of the tools should be appropriate to

the magnitude and importance of the job. The EPA seeks comments on the

appendices that follow:

Appendix A. Glossary of Terms

Appendix B. Environmental Performance Characteristics

(1) Preliminary ``Menu'' of Environmental Performance

Characteristics

(2) Definitions for Terms in the Menu of Environmental Performance

Characteristics

Appendix C. Applying a Life-Cycle Perspective

Appendix D. Summary of FTC's ``Guides for Use of Environmental

Marketing Claims''

Appendix A. Glossary of Terms

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 comparison may consider raw materials acquisition,

production, manufacturing, packaging, distribution, reuse,

operation, maintenance, or disposal of the product or service.

Life-cycle assessment. The life-cycle assessment is a process or

framework to evaluate the environmental burdens associated with a

product, process, or activity by identifying and quantifying energy

and material usage and environmental releases, to assess the impact

of those energy and material uses and releases on the environment,

and to evaluate and implement opportunities to effect environmental

improvements. The assessment includes the entire life-cycle of the

product, process, or activity, encompassing extracting and

processing raw materials; manufacturing, transportation and

distribution; use/re-use/maintenance; recycling; and final disposal.

Often the terms life-cycle assessment and life-cycle analysis

are used synonymously. The Executive Order uses the latter and

provides a slightly different definition as follows: ``Life-cycle

analysis is a comprehensive examination of a product's environmental

and economic effects throughout its lifetime including new material

extraction, transportation, manufacturing, use and disposal.

Life-cycle cost. For the purposes of this guidance document,

life-cycle cost is defined to mean all internal and external costs

associated with a product, process, or activity throughout its

entire life-cycle--from raw materials acquisition to manufacture to

recycling/final disposal of waste materials. The term life-cycle

cost has also been used by the Department of Defense to mean the

amortized annual cost of a product, including capital costs,

installation costs, operating costs, maintenance costs, and disposal

costs discounted over the lifetime of a product. However, this

second definition has traditionally not included environmental costs

associated with systems and thus, the first definition is used in

the guidance.

Multiple Award Schedule (MAS). MASs contain a number of product

listings for which several vendors are available for a particular

product. Purchasers obtain information from the vendors and

determine from which vendor they want to buy.

Pollution prevention. Pollution prevention means ``source

reduction,'' as defined under the Pollution Prevention Act of 1990,

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 which:

--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; and

--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.

Third party certification programs. Within the context of this

guidance, this general term is used to include programs (either non-

profit or for-profit, government-run, government-related or

independent) that verify or certify single attribute claims made by

manufacturers or other programs that compile key environmental

information into ``report cards'' (e.g., those compiled by the

Scientific Certification Program). The term also encompasses a large

category of both international and to a lesser extent, domestic

programs that award ``seals-of-approval'' to those products that

meet a specific set of environmental award criteria. Award criteria

may reflect an analysis of environmental impacts, such as Canada's

Environmental Choice's standards for reduced-pollution paint, or

single categories, such as Japan's EcoMark seal awarded for the

recycled content of paper. A seal is given only if a product meets

the standards established by the program. Most of the major foreign

environmental certification programs use a seal of approval

approach. Active third party seal of approval programs include

Germany's Blue Angel, Canada's Environmental Choice, Japan's

EcoMark, Green Seal (U.S.), and the international Flipper Seal-of-

Approval, among others.

Participation by manufacturers or vendors in the various

programs is usually on a voluntary basis.

Appendix B. Environmental Performance Characteristics

The menu of environmental performance characteristics listed

below is designed to help identify the attributes that can be

targeted for improvement. This, together with the life cycle graphic

which appears in Appendix C, can be used by Federal purchasers to

help select that product or service that minimizes environmental

impact. It is a preliminary list of the major potential sources of

human health and environmental risk. Definitions for each of the

characteristics follow the menu.

This menu can be used by agency personnel in two ways: (a) to

provide a standard framework for focusing in on the most important

environmental attributes of products, systems, and facilities, and

determining which product is preferable based on those attributes,

or (b) as a check-list of environmental issues to be considered when

designing and acquiring systems or buildings. Not all of the

environemental performance characteristics will apply to each

product; indeed, in some cases, information on only a few key

environmental

[[Page 50733]]

attributes may be needed to determine environmental preferability.

The menu of environmental performance characteristics suggests

that two different approaches to soliciting information can be used.

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.

Additional guidance on how the menu may be used within the

context of a particular product category as well as how the

Ecological Priority Impacts Matrix and the List of Stressors

Presenting High Risk (discussed below in Appendix D) may be

applicable will be issued as part of specific guidances that will

follow based on voluntary pilot acquisitions.

If vendors/offerors use the menu as a basis for making

environmental marketing claims, they should conform to the Federal

Trade Commission's Guides for Use of Environmental Marketing Claims

(16 CFR 260.5). A summary of the FTC's Guides is included as

Appendix D. As explained in the FTC guides, claims concerning a

product's environmental performance need to be supported by

environmental data provided by offerors and offerors are encouraged

to have the information verified by a credible, independent third

party certifier to provide product users, acquisition officials and

program managers with the assurance that the information they are

evaluating is accurate and scientifically sound.

Appendix B(1). Preliminary Menu of Environmental Performance

Characteristics

A. Natural Resources Use

--Ecosystem impacts (endangered species, wetlands loss, fragile

ecosystem, erosion, animal welfare etc.)

--Energy consumption (including source, if known)

--Water consumption

--Non-renewable resource consumption (>200 years)

--Renewable resource consumption ([email protected]

Electronic comments must be submitted as an ASCII file avoiding the

use of special characters and any form of encryption.

The official record for this document, as well as the public

version, as described above will be kept in paper form. Accordingly,

EPA will transfer all comments received electronically into printed,

paper form as they are received and will place the paper copies in the

official record which will also include all comments submitted directly

in writing. The official record is the paper record maintained at the

address in ADDRESSES at the beginning of this document.

List of Subjects

Environmental protection.

Dated: September 25, 1995.

Carol M. Browner,

Administrator.

[FR Doc. 95-24284 Filed 9-28-95; 8:45 am]

BILLING CODE 6560-50-M