This Acquisition Learning Seminar is sponsored by the Federal Acquisition Institute

1. This Acquisition Learning Seminar is sponsored by the Federal Acquisition Institute The primary organization providing knowledge and support to the federal civilian acquisition workforce. Please visit us on our website at www.fai.gov

2. Buying a Better Future The Greening of Government Purchasing scot case scase@terrachoice.com www.terrachoice.com 610 779-3770

3. Quick Acknowledgement Happy Earth Day Eve!!

5. Link Between Purchasing and the Environment It’s All Connected to Purchasing scot case scase@terrachoice.com www.terrachoice.com 610 779-3770

6. Green is Suddenly Everywhere

7. …Even Soap Opera Digest

8. …And Mad Magazine

9. Growth of Green • Number of ads increasing. • Number of “green” products per store increasing.

10. Environmental Concerns • Mass extinctions • Deforestation & soil erosion • Air & water pollution • “Super” bacteria, viruses, and insects • Dwindling natural resources • Cancer rates increasing • Reproductive disorders increasing • Fisheries collapsing • Water tables falling • Climate Change

11. Warnings

12. Consuming the Environment • “The major cause of the continued deterioration of the global environment is the unsustainable pattern of production and consumption, particularly in industrialized countries.” • – United Nations Agenda 21 Report

13. 2002 World Summit Emphasized the need for authorities to “[p]romote public procurement policies that encourage development and diffusion of environmentally sound goods and services.” - 2002 World Summit on Sustainable Development in Johannesburg

14. Global Warming Greenhouse Effect -- Necessary for Life Most of the Sun's energy is absorbed by the Earth, but some is reflected back into space. Like a blanket, a natural layer of atmospheric gases absorbs a portion of this reflected solar energy, trapping it on Earth. This natural greenhouse effect makes life possible by warming the Earth’s climate to a point where it can sustain life. Too Much of a Good Thing When this blanket of heat-trapping greenhouse gases becomes too thick, however, much reflected heat is forced back to Earth, where it warms the Earth's surface. This can cause unpredictable, and potentially disastrous, effects.

15. Wal-Mart’s Goals To be supplied 100% by renewable energy • Existing stores 20% more efficient in 7 years • New stores 30% more efficient in 4 years • Fleet 25% more efficient in 3 years, double in 10 years To create zero waste • 25% reduction in solid waste in 3 years • All private brand packaging improved in 2 years (right sized, reusable materials) To sell products that sustain our resources & environment • 20% supply base aligned in 3 years • Preference given to aligned suppliers in 2 years • Design and support Green Company in China

16. Two Cups of Coffee a Day • 34 gallons of coffee a year. • 18 pounds of coffee beans • 12 pounds of fertilizer • A few ounces of highly toxic pesticides • 43 pounds of coffee pulp • Clear cutting of forests to grow even more coffee • Bird species disappearing • More erosion • More pesticides

17. Lifecycle Perspective

18. Energy Consumption • Every gallon of gas burned emits 19 pounds of carbon dioxide. • Every day, the worldwide economy burns an amount of energy the planet required 10,000 days to create.

19. Resource Consumption • One ton of virgin paper requires 98 tons of resources to produce. • A single 1/10 ounce, 14-carat gold ring requires 2.8 tons of ore

20. Typical Desktop Computer • Manufacturing a typical desktop computer creates 139-pounds of waste and 49 pounds of hazardous materials. • Producing the six-inch silicon wafer from which computer chips are cut generates 2,840 gallons of wastewater and 7 pounds of hazardous waste.

21. Reducing Impacts • When recycled materials are used to produce paper, aluminum, and glass, energy consumption can be reduced by up to 95%, water consumption by up to 50%, air pollution by 95%, and water pollution by up to 97%. • When scrap iron is used instead of iron ore to make steel, mining wastes are reduced by 97%, air pollution effluents by 80%, and water pollution by 76%.

22. Purchasing Matters! Remember One Thing

23. Responsible Purchasing Primer The Power of Government Purchasing scot case scase@terrachoice.com www.terrachoice.com 610 779-3770

24. Basic Premise #1 Every single purchase has hidden human health, environmental, and social impacts throughout the entire supply chain.

25. Basic Premise #2 Government purchasing is the most important force in the entire global economy. • Government purchasing represents 20 percent of the annual Gross National Product. • It is very structured. • It influences others.

26. Government Purchasing History • Clothing sizes during the Civil War • Small Business Administration • Automobile airbags • Energy-efficient computers • Recycled-content paper

27. Government Purchasing History • U.S. Federal government purchases 7% of all computers worldwide. • Began including Energy Star requirements in mid-1990s. • Currently, 95% of monitors, 80% of computers, and 99% of printers are Energy Star compliant.

28. Responsible Purchasing Environment Social Price, Performance, & Availability

29. Defining Responsible Purchasing Responsible Purchasing Means: Buying better products and services from better companies.

30. Green Purchasing Requirements Federal Government Purchasing Thinks About the Future scot case scase@terrachoice.com www.terrachoice.com 610 779-3770

31. 12759 — Federal Energy Management (April 17, 1991) 12843 — Procurement Requirements and Policies for Federal Agencies for Ozone Depleting Substances (April 21, 1993) 12845 — Requiring Agencies to Purchase Energy Efficient Computer Equipment (April 21, 1993) 12856 — Federal Compliance with Right‑to‑Know Laws and Pollution Prevention Requirements (August 3, 1993) 12873 — Federal Acquisition, Recycling, and Waste Prevention (October 20, 1993) 12902 — Energy Efficiency and Water Conservation at Federal Facilities (March 8, 1994) Long Fed Gov History

32. 13031 — Federal Alternative Fueled Vehicle Leadership (December 13, 1996) 13101 — Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition (September 16, 1998) 13123 — Greening the Government Through Energy Efficient Management (June 3, 1999) 13134 — Developing and Promoting Biobased Products and Bioenergy (August 12, 1999) 13148 — Greening the Government Through Leadership in Environmental Management (April 26, 2000) 13149 — Greening the Government Through Federal Fleetand Transportation Efficiency (April 26, 2000) Long Fed Gov History

33. 13221—Energy Efficient Standby Power Devices (July 31, 2001) 13423– Strengthening Federal Environmental, Energy, and Transportation Management (January 24, 2007) 13514—Federal Leadership in Environmental, Energy, and Economic Performance (October 5, 2009) Long Fed Gov History

34. Goal: Continue to work toward sustainability of federal agencies with strong focus on GHG reduction goals. Federal Agencies shall: “….Leverage agency acquisitions to foster markets for sustainable technologies and environmentallypreferable materials, products and services…” “….Advance sustainable acquisitions to ensure that95 percent of new contract actions … are energy efficient, water-efficient, biobased, environmentallypreferable….” EO 13514

35. Policy Directives • Office of Federal Procurement Policy Letter 92-4 on Procurement of Environmentally-Sound and Energy-Efficient Products and Services (March 20, 1997) • Presidential Memorandum on Environmentally and Economically Beneficial Practices on Federal Landscaped Grounds • Federal Acquisition Regulation (FAR) amendments

36. It’s Everywhere in the FAR Part 7--Acquisition Planning Part 10--Market Research Part 11--Describing Agency Needs Part 12--Commercial Item Part 15--Contracting by Negotiation Part 23--Environmental, Conservation, Occupational Safety, and Drug‑Free Workplace Part 36--Construction and Architect‑Engineer Contracts Part 42--Contract Administration Part 52--Solicitation Provisions and Contract Clauses

37. FAR Requirements Federal Agencies are required to: • “[I]mplement cost-effective contracting preference programs favoring the acquisition of environmentally preferable and energy-efficient products and services.” {FAR 23.704(a)} • “[P]repare product descriptions to achieve maximum practicable use of recovered materials, other materials that are environmentally preferable, and products that are energy-efficient.” {FAR 11.101(b)}.

38. More FAR Requirements • Obtain products from within the upper 25 percent of the most energy-efficient products or products that are at least 10 percent more efficient than the minimum Federal energy-efficiency standards. • Eliminate or reduce hazardous waste generation and the need for special handling, storage, treatment, and disposal. • Promote the use of nonhazardous and postconsumer recycled-content materials. • Examine lifecycle costs, not just initial costs, when comparing prices. • Consider cost‑effective waste reduction opportunities when creating plans, drawings, specifications, standards, and other product descriptions.

39. Recycled content purchasing Mandated by RCRA, covers 61 products (paper, office supplies, landscaping, construction, vehicle products) Energy efficient purchasing EOs, Energy Policy Act, Energy Independence & Security Act Biobased content purchasing US Dept of Agriculture has developed list of biobased products Environmentally preferable purchasing Life cycle, multiple environmental attributes Federal Government Green Purchasing Initiatives

40. Buy Recycled (CPG) • The Comprehensive Procurement Guidelines (CPG) Program: • Established by RCRA Section 6002 • Run by the U.S. Environmental Protection Agency (EPA) • Identifies recycled-content products • Recommends recycled-content percentages

41. CPG Product Categories • Paper and Paper Products • Vehicles • Construction • Transportation • Parks and Recreation • Landscaping • Non-Paper Office Products • Miscellaneous www.epa.gov/cpg

42. Energy Star There are more than 40 categories of energy-efficient products broken into the following major groupings: • Appliances • Heating and Cooling • Home Electronics • Office Equipment • Lighting • Commercial Food Services • Other www.energystar.gov

43. Water Sense • EPA program to identify water efficient products. • Covers products like toilets, urinals, sinks, and irrigation systems. • All products must be certified by an independent third-party. www.epa.gov/watersense

44. Biobased Products • The 2002 Farm Bill included extensive requirements for federal agencies to buy biobased products. • The U.S. Department of Agriculture has established a biopreferred program similar to EPA’s “Buy Recycled” (CPG) program. • <www.biopreferred.gov> • And…to get right to the list of designated products, check out: • <www.biopreferred.gov/ProposedAndFinalItemDesignations.aspx>

45. EPP Program • EPA’s Environmentally Preferable Purchasing Program encourages purchasers to examine multiple environmental attributes when making purchasing decisions. • The EPP Program maintains an extensive list of resources at: • <www.epa.gov/oppt/epp>

46. Defining Green Doesn’t it Seem Like Everyone is Claiming to Be Green These Days? scot case scase@terrachoice.com www.terrachoice.com 610 779-3770

47. According to the FTC: FALSE CLAIMS Environmental Claims are Growing • Made with non-toxic ingredients • Degradable • Biodegradable • Compostable • Environmentally safe • CFC-free • Ozone friendly • Recyclable • Eco-safe • Environmentally friendly • Earth friendly • Earth smart • Environmentally safe • Environmentally preferable • Essentially non-toxic • Practically non-toxic Original Source: Kirsten Ritche, Gensler

48. Sin of Fibbing – Misleading customers about the actual environmental performance of their products. Sin of No Proof – Also known as the sin of “just trust us,” some manufacturers are unable to provide proof of their environmental claims. Seven “Sins” of Greenwashing • Sin of Irrelevance – Factually correct, but irrelevant, environmental assessments (e.g., “CFC-free”) • Sin of the Hidden Trade-Off – Focusing on one or two environmental facts, but ignoring other significantly more important environmental concerns.

49. Worshipping false labels – a product that through words or images gives the impression of third-party endorsement where no such endorsement actually exists; fake labels, in other words. Seven “Sins” of Greenwashing • Sin of Vagueness – Broad, poorly defined environmental claims (e.g., “100 percent natural”) • Sin of Lesser of Two Evils – A product can be the most environmentally preferable product in its class, but still be an inappropriate choice (e.g., “organic cigarettes”) The Seven Sins of Greenwashing report, released 4/15/09, is available at <www.sinsofgreenwashing.org>

50. <www.energystar.gov> To Avoid Greenwashing… The environmental standards most widely recognized by green purchasers: <www.greenseal.org> <www.ecologo.org> • Founded 1988 • 100 standards • 6,500 certified products • Founded 1992 • 50 standards • “Thousands and thousands” of registered products • Founded 1989 • 30 standards • 3,650 certified products