Standardization and Environmentally Preferable Purchasing

1. Standardization and Environmentally Preferable Purchasing

2. Standardization and Environmentally Preferable Purchasing An Opportunity for Standards Developing Organizations

3. Overview • There is a significant demand, as initiated by government action, for environmentally preferable products • Environmentally Preferable Purchasing (EPP) is an innovative way to incorporate into purchasing decisions the consideration of a product’s impact on the environment • There are many benefits available to standards developing organizations (SDOs) and corporations that work to meet the demand for EPP

4. Summary of Topics • Definition and Background: Environmentally Preferable Purchasing (EPP) • Standardization and the Environment: A cooperative effort of the public and private sectors • Case Study – U.S. Department of Defense • Incentives and Methodology: Incorporating life-cycle and environmental elements in voluntary standards • Supporting Documentation • Information Resources (databases, guidelines, etc.) • Pilot Programs

5. Definition and Background Environmentally Preferable Purchasing (EPP)

6. Environmentally Preferable Purchasing (EPP) • EPP is a process for selecting “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.” - Executive Order 13101 • EPP is a federal-wide program that encourages and assists executive agencies in the purchasing of environmentally preferable products and services. For more information online: • http://www.epa.gov/opptintr/epp/

7. The heads of each executive agency have been ordered to “incorporate waste prevention and recycling in the agency’s daily operations and work to increase and expand markets for recovered materials through greater Federal Government preference and demand for such products.” - EO 13101, Sec. 101 “When developing, reviewing, or revising … standards, executive agencies shall consider recovered materials and any environmentally preferable purchasing criteria developed by the EPA.” - EO 13101, Sec. 501 Environmentally Preferable Purchasing (EPP)(continued)

8. EO 12873 (1993)Federal Acquisition, Recycling and Waste Prevention(superceded by EO 13101-1998) EPA Proposed Guidance on the Acquisition of Environmentally Preferable Products and Services (1995) EO 13101 (1998) Greening the Government Through Waste Prevention, Recycling and Federal Acquisition EPA and the Office of the Federal Environmental Executive policy statement (1998) EPA Final Guidance on Environmentally Preferable Purchasing (1999) EO 13148 (2000) Greening the Government Through Leadership in Environmental Management Federal Acquisition Regulation (Parts 7, 10, 11, 12, 15, 23, 36, 42, 52) Origins of EPP

9. Impact of EPP • The Federal Government • purchases more than $200 billion worth of products and services annually • provides an additional $240 billion to grantees that in turn buy products and services • State and Local governments • Trickle-down effect: Many state and local agencies base their purchasing practices on the practices of the Federal Government

10. Standardization and the Environment A cooperative effort of the public and private sectors

11. Standardization and EPP • Standardization and EPP can go hand-in-hand • Example: The ISO 14000 series of standards on Environmental Management Systems • A family of generic environmental management system standards that provides a model for organizations to • set up and operate a system for consistently improving the environment • manage an organization’s activities in order to minimize harmful effects on the environment

12. Standardization and EPP (continued) • In accordance with principles of the U.S. National Standards Strategy (NSS) and those endorsed by the World Trade Organization (WTO) • Standards will be relevant, responsive to real world needs, and performance-based • Decisions will be reached through consensus of all affected interests (including harmonization so as to meet global regulatory requirements) • Balance will be maintained among competing interests • Processes will be transparent, flexible, timely and coherent • All views will be considered and appeals are possible • The traditional standards-setting bodies will work cooperatively • Traditional and non-traditional standards-setting bodies will work well together

13. Standardization and EPPA Public-Private Partnership • All federal agencies are encouraged to utilize voluntary consensus standards when possible • National Technology Transfer and Advancement Act of 1995 (P.L. 104-113:1996) • Directs federal participation in voluntary consensus standards development activities • OMB Circular A-119 is the accompanying guidance document • American National Standards exceed all requirements of NTTAA and OMB A-119 to be used as reference documents by federal agencies

14. Standardization and EPPExample: U.S. Environmental Protection Agency (EPA) • Established in July 1970, the U.S. Environmental Protection Agency’s (EPA) mission is to protect human health and to safeguard the natural environment — air, water, and land — upon which life depends. • “The EPA recognizes the influence the United States, and in particular, the U.S. government, has on what products and services are produced due to this tremendous purchasing power. EPP works to leverage that influence to minimize environmental burdens.” – www.epa.gov

15. U.S. Environmental Protection Agency (EPA)Five Guiding Principles for Purchasing • EPP = Environment + Performance + Price • Pollution Prevention • Life Cycle Perspective/ Multiple Attributes • Comparison of Environmental Impacts • Environmental Performance Information

16. Life Cycle Perspective • “The likely result [of understanding the impact of life cycles] will be world class performance: improved processes and products which drive down total costs while also eliminating waste. The result will also be reduced environmental impact of both product and byproducts throughout their entire life cycles.” – www.epa.gov

17. Life Cycle Perspective (continued) • Life cycle assessment involves evaluating risk or damageto the environment or ecosystems outside of typical manufacturing limits over the entire life cycle of the product. This means that in each stage – from production, to retailing, to consumption – steps should be taken to reduce environmental damage from the creation or use of the product.

18. Federal Agencies PromotingEnvironmental and Life Cycle Standards • Department of Agriculture • Bio-Based Products Program • Department of Commerce • National Institute of Standards and Technology (NIST) • Department of Defense (refer to case study on next slide) • Department of Energy • Federal Energy Management Program • Environmental Protection Agency • Green Purchasing Programs • Comprehensive Procurement Guidelines • Energy Star Program • Environmentally Preferable Purchasing (EPP)

19. 61% reduction in the number of adhesive products* 80% reduction in the number of solvents and cleaners* 31% reduction in the number of paints and coatings* Assurances that all selected paints satisfied applicable performance and environmental requirements Research and development efforts to identify and test a biodegradable hydraulic fluid for submarines to replace the current toxic, mineral oil-based fluid Redesigned nuclear reactor core eliminated the need for refueling and disposal of spent nuclear fuel while achieving a multi-million dollar cost avoidance A Case StudyU.S. Department of Defense Life Cycle Considerations for “Virginia Class” Nuclear Submarine *compared to the number required for previous submarine classes

20. Incentives and Methodology Incorporating life-cycle and environmental elements in voluntary standards

21. Incentives for the Private Sector to Incorporate EPP Provisions • Regulatory compliance (Federal, State, and Local) • Demonstration of environmental awareness • Reduced operating and maintenance costs • Improved worker health and safety, reduced liabilities • Helps achieve compliance with ISO 14000 EMS • Competitive advantage • Marketing assistance • Reference in publications/databases Suggestions on marketing environmentally preferable products • http://www.ftc.gov/bcp/grnrule/guides980427.htm • http://www.epa.gov/opptintr/epp/pubs/stgbrochure.pdf

22. Incentives for Standards Developersto Incorporate EPP Provisions • EPP standards meet demand of federal agencies • Helps federal agencies comply with NTTAA • Allow EPA referencing [of a standard] via Federal Register notices • Increase adoption by other agencies looking to EPA for guidance • Increase adoption and use by state and local governments • Publicity/Reference in publications/databases • There are currently 523 standards in the EPP Database. This covers more than 650 product and service categories. The source of each standard is cited. (The EPP database is described in the Resources section of this presentation.) • Competitive Advantage(particularly if EPA adopts or references the resulting standard) • Increased use by companies utilizing ISO 14000 EMS

23. Incorporating EPP into Standards Development Activities • First priority is to be aware of the need for and advantages of environmental consideration within a standard • Consider existing voluntary consensus standards that relate to EPP (examples: Green Seal, ASTM, ISO 14000) • Consider State and Local laws related to environmental conservation • Consider EPA’s “Five Guiding Principles for Purchasing”

24. Incorporating EPP into Standards Development Activities (continued) • Questions to ask prior to initiating development • Will the new standard benefit from the incorporation of EPP principles? • If yes, what are these benefits? • How will EPP be addressed? • Is a relevant standard already in existence? • Is there support from the affected interests? • Broadly publicize the development project and invite ideas from any source. • Formulate idea(s). • Bring together all interested parties in the consensus process.

25. Incorporating EPP into Standards Development Activities (continued) • The project must be inclusive of all interests • Convey the importance of standardization and the message that standards have a strong impact on EPP business • Enhance outreach to industry, government and consumers • Attract the interest of top-ranking people and stimulate an environmental dialogue among different categories of stakeholders • Engage high-level decision makers who are responsible for budgets and policies • Educate, inform and persuade these interests regarding the importance of environmental standardization activities

26. Incorporating EPP into Standards Development Activities (continued) • Participation • Recruit EPA or other environmentally conscious participants to advise standards developers • Initiate dialogue with procurement experts to identify needs • Identify and invite the potential users of the standards (i.e., the target audience) to participate in development efforts • Maximize harmonization and minimize duplication through the use of • liaison arrangements • joint development • formal agreements • etc.

27. Incorporating EPP into Standards Development Activities (continued) • Development • Clearly define the need for EPP principles in the standard • Consider adding appropriate text in the draft document’s scope, purpose or justification statements • Develop draft environmental and/or life cycle provisions • Constantly communicate progress to users and stakeholders • Identify how standards will affect the life-cycle of products

28. Incorporating EPP into Standards Development Activities (continued) • Development • Factors to MAXIMIZE • Recycled content • Durability • Reusability • Product disassembly potential • Recyclability • Energy conservation

29. Incorporating EPP into Standards Development Activities (continued) • Development • Factors to MINIMIZE • Human health hazards • Toxicity • Carcinogenicity • Ecological Hazards • Aquatic, Avian and Terrestrial Toxicity • Product Safety Hazards • Flammability • Corrosivity

30. Supporting Documentation Information Resources and Guidelines EPP Database Pilot Programs

31. Information Resources • Northeast Recycling Council Environmentally Preferable Products ListServ (EPPNET) • http://www.nerc.org/eppnet.html • Office of Federal Environmental Executive’s Listserv • http://www.ofee.gov/listserv.htm • “Building for Environmental and Economic Sustainability” (BEES) • http://www.bfrl.nist.gov/oae/software/bees.html • “Design for the Environment” (DfE) Program • http://www.epa.gov/opptintr/dfe/pubs/about/index.htm

32. Information Resources (continued) • General Services Administration Environmental Products Guide (GSA) • GSA Advantage • www.gsa.gov • Defense Logistics Agency (DLA) Environmental Products Catalog • EMALL (DLA Environmental Attribute Codes) • http://www.emall.dla.mil • Tel: 1-800-352-2852 (Defense General Supply Center) • Federal Trade Commission • “Green Guides”

33. EPP Database • Launched in 1999 in response to customer demand for a one-stop-shop for environmental information on products and services purchased by the federal government • Links to standards and guidelines for environmentally preferable products and services • Contract language and specifications created and used by governments • Vendor lists and product brands meeting the standard • Other useful information on environmental preferability EPP database • http://yosemite1.epa.gov/oppt/eppstand2.nsf

34. EPP Case Studies • Painting the Town Green: The Aberdeen Proving Ground Paint Pilot Project • Paving the Road to Success: The Department of Defense’s Parking Lot Repair and Maintenance Contract For in-depth information on these case studies, or for more examples http://www.epa.gov/opptintr/epp/pubs/doccase.htm

35. EPP Case Studies • Cleaning Products Pilot Project • Green Spending: A Case Study of Massachusetts’ Environmental Purchasing Program For in-depth information on these case studies, or for more examples, http://www.epa.gov/opptintr/epp/pubs/doccase.htm

36. Conclusions

37. Conclusion • EPA wants more standards that incorporate environmental and life-cycle elements that can be referenced and/or recommended as the basis for both public and private sector purchasing decisions • EPP considerations can be achieved by working within the framework of previously developed environmental standards, reviewing the success of pilot projects and working cooperatively with federal agencies to address an industry’s needs.

38. For more information American National Standards Institute ATTN: Public Policy and Government Affairs via e-mail: info@ansi.org