# Presentation: 345083

## Overview of Sustainable Purchasing Regulations and Reporting Requirementsat the U.S. Department of Energy

## Definition of Environmentally Preferable (Green) Purchasing

- Acquisition of 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.  (EO13423 Instructions)

## Drivers that Direct FederalAgencies to Purchase Green Products 

- Acts of Congress:  Energy Policy Act of 2005, Farm Security and Rural Investment Act Section 9002, Resource Conservation and Recovery Act Section 6002
- Executive Orders 13423 and 13221
- Specify environmental preferability in environmental management systems, adds Electronic Stewardship and Sustainable Design, includes standby power devices
- Federal Electronics Challenge Memo of Understanding
- Federal Leadership in High Performance and Sustainable Buildings Memo of Understanding
- Federal Acquisition Regulation (FAR)
- DOE Acquisition Regulation (DEAR)
- DOE Orders 450.1 & 430.1
- DOE Acquisition Guide (Chapter 23) and letters
- See http://www.hss.energy.gov/nuclearsafety/nsep/p2/epp/drivers_and_guidelines.html for information on regulations affecting Green Purchasing

## DEAR Flow Down Clause for Contractors and Sub-Contracts 

**970.5223-2 Affirmative procurement program.**
**	****As prescribed in 48 CFR (DEAR) 970.2304-2, insert the following clause in contracts for the management and operation of DOE facilities, including national laboratories. **
**AFFIRMATIVE PROCUREMENT PROGRAM (MAR 2003)**
** ****	****(a)  In the performance of this contract, the ****Contractor shall comply with the requirements of Executive Order 13423**** and the U.S. Department of Energy (DOE) Affirmative Procurement Program Guidance.  This guidance includes requirements concerning environmentally preferable products and services, recycled content products and biobased products.  This guidance is available on the Internet.**
**	****(c)  The ****Contractor shall prepare and submit reports****, at the end of the Federal fiscal year, on matters related to the acquisition of items designated in EPA's Comprehensive Procurement Guidelines that Federal agencies and their Contractors are to procure with recovered/recycled content. **
**	****(d) ****If the Contractor subcontracts**** a significant portion of the operation of the Government facility which includes the acquisition of items designated in EPA's Comprehensive Procurement Guidelines, ****the subcontract shall contain a clause substantially the same as this clause. ...Examples of such a subcontract would be operation of the facility supply function, construction or remodeling at the facility, or maintenance of the facility motor vehicle fleet****.**** **

## Why Does the Government Target Itself for Green Purchasing?

- U.S. consumes approximately 25% of the world’s resources with 5% of the world’s population
- Federal government is country’s largest purchaser of goods and services:  over $370 billion
- Government creates markets for more environmental products, leading to greater product availability and competitive pricing
- P-Card purchases = 5% of federal purchases (over $17 billion in FY06) = target for opportunity and GAO audits

## U.S. Department of Energy policy is to implement the Federal Acquisition Regulation (FAR), which for Environmentally Preferable Purchasing is to
Implement cost-effective contracting preference programs promoting energy-efficiency, water conservation, and the acquisition of environmentally preferable products and services
Employ acquisition strategies that affirmatively implement the following environmental objectives (FAR 23.703):
Maximize use of environmentally preferable products and services, which includes products with recovered or biobased content designated by the U.S. Environmental Protection Agency or the U.S. Department of Agriculture
Promote energy/water efficiency by purchasing ENERGY STAR®/FEMP qualified products
Eliminate or reduce the generation of hazardous waste and the need for special material processing (including special handling, storage, treatment, and disposal)
Promote the use of nonhazardous and recovered material
Realize life-cycle cost savings
Promote cost-effective waste reduction when creating plans, drawings, specifications, standards, and other product descriptions authorizing material substitutions,         extensions of shelf-life, and process improvements
Substitute safe alternatives to ozone-depleting substances (FAR 23.803) 

- Implement cost-effective contracting preference programs promoting energy-efficiency, water conservation, and the acquisition of environmentally preferable products and services
- Employ acquisition strategies that affirmatively implement the following environmental objectives (FAR 23.703):
- Maximize use of environmentally preferable products and services, which includes products with recovered or biobased content designated by the U.S. Environmental Protection Agency or the U.S. Department of Agriculture
- Promote energy/water efficiency by purchasing ENERGY STAR®/FEMP qualified products
- Eliminate or reduce the generation of hazardous waste and the need for special material processing (including special handling, storage, treatment, and disposal)
- Promote the use of nonhazardous and recovered material
- Realize life-cycle cost savings
- Promote cost-effective waste reduction when creating plans, drawings, specifications, standards, and other product descriptions authorizing material substitutions,         extensions of shelf-life, and process improvements
- Substitute safe alternatives to ozone-depleting substances (FAR 23.803)

**Why Does DOE Target Itself for ****Green Purchasing?**

## Green Purchasing Benefits

- Makes good business $ense
- Conserves nation’s resources
- Conserves DOE’s resources
- Conserves Contractor’s resources
- Meets federal regulations
- Meets DOE policy

## Cost Comparison Examples of Green Purchasing

- Paint (latex)					$16/gal
- Recycled (meets commercial paint specs)	$8.25
- Toner Cartridge (Canon Machines) 	$67.74
- 	Remanufactured Toner Cartridge	$30.67
- Paper (truck-load)				$3.13/ream
- 	Recycled Paper				$2.55
- Binders (3” White slant “D” /w clear covers)	$11.59
- 	Recycled Binders				$6.28

## Principles of Green Purchasing

- Reduce purchases
- Reuse products
- Use life cycle analyses to select green products with
- Designated attributes
- Other environmentally preferable attributes, such as non-toxic

## Reduce Purchases

- Is the product needed?
- Would purchasing a laptop with a docking station reduce the need for staff to have both a desktop and a laptop computer?
- Would specifying waxless flooring eliminate the need to purchase wax, polish, and wax remover?
- Is the product repairable rather than replaceable?
- Can the carpet seam be mended?
- Is there an alternative?
- Could the research be conducted electronically rather than with chemicals?
- Would a benign substitute perform as well?
- Can hazardous cleaning chemicals be replaced with non-hazardous?

## Reuse Products

- Is the product available for free through materials exchanges:
- DOE Complex Wide Materials Exchange
- Your state’s materials exchange
- Your site’s office product/chemical/ other materials exchange

## Use Life Cycle Analyses to Select Green Products

- With specified attributes
- Alternative fuels/vehicles
- Biobased/recycled content
- Energy/water efficient
- EPEAT registered electronic equipment
- Non-ozone depleting
- Sustainable building materials
- With other environmentally preferable attributes, such as non-toxic

## What life cycle aspects should you consider when selecting products?

- Raw materials (renewable resource?)
- Manufacturing process (energy/water efficient?)
- Packaging (returnable?)
- Distribution/transportation (locally produced?)

- Operation (energy/water efficient?)
- Maintenance (healthy for staff?)
- Disposal (reusable or at least recyclable?)

## What product categories have been designated for preferred procurement by Federal agencies? 

**Biobased content**
- Farm Security and Rural Investment Act
**Recycled content**
- Resource Conservation and Recovery Act
**Alternative fuels/vehicles**
- Energy Policy Act of 2005
**Electronic equipment**
- Executive Order 13423/Memo of Understanding
**Energy and water efficient**
- Energy Policy Act of 2005
**Non-ozone depleting substances**
- Clean Air Act (Title VI)
**Sustainable Building Materials**
- Executive Order 13423/Memo of Understanding

## When Using or Preparing the Following, Remember to Specify Green Products

- Purchasing Card
- Purchase Request
- Statements of Work/Requests for Proposal
- Contracts/Preferred Customer Agreements
- Template language for a wide variety of products available at _http://yosemite.epa.gov/oppt/eppstand2.nsf/Pages/Search.html?Open_

## Verify Products and Services Meet the Requirements

- Ask for _percentage_ of biobased/recycled content not just yes or no
- Ask for demonstration of their products and quality assurance program
- Verify products meet all other national standards (ANSI, ASTM, etc.)  for commercial products
-  Ask for free products to test
- Ask for free training on how to install/use products
- Set up closed loop contracts for carpet, cartridges, ceiling tiles, etc.

## Join Forces to Push Prices Down

- Take advantage of Centralized Purchasing – Advantage of bulk purchasing prices
- Take advantage of Decentralized Purchasing – Preferred Customer Agreements leverage same advantage
- Compare prices with other DOE sites
- Check out DOE-HQ Blanket Ordering Agreements (http://www.management.energy.gov/1364.htm)

## Reporting Requirements

- Overview of Green Purchasing Reporting Requirements

| DOE Site Data Input | Due Date | Various Destinations |
| --- | --- | --- |
| EPP Data Website
https://www.hss.energy.gov/NuclearSafety/NSEP/p2/ap/zzlogin.cfm
P2 Data Website
http://www.hss.energy.gov/NuclearSafety/NSEP/p2/dataentry.html
FAST
https://fastweb.inel.gov/ 
Federal Bldgs Database
www.eere.energy.gov/femp/highperformance/index.cfm  | Annually Dec

 | OMB Scorecard Reports
OFEE EPP Report to Congress
DOE P2 and Sustainable  Environmental Stewardship Goals (DOE Order 450.1) Report
FEMP Reports:  Energy/Water, Alternative Fuels/Vehicles, Sustainable Buildings
 |
|  |  |  |

- Giving preference to all designated products is required in contracts and purchases.
- Reporting is only required for some products

## OMB Scorecard Reports 

- Environmental Scorecard – Green Purchasing
- Meets all EO13423 EMS criteria at all appropriate facilities, including incorporating Green Purchasing Program in EMS
- Has a comprehensive, written green purchasing plan which includes biobased/recycled, energy/water efficient, non-ozone depleting and other environmentally preferable products
- Demonstrates compliance in representative acquisitions
- Audits compliance annually
- Develops corrective action plan if applicable
- Has sustainability program for electronic stewardship, which includes 95 percent of computer purchases be EPEAT registered
- Complies with Guiding Principles for Sustainable Buildings, which          includes environmental construction materials

## OMB Scorecard Reports

- Energy/Water Scorecard – Energy Efficiency Purchases
- Improves energy efficiency and reduces greenhouse gas emissions by 3% annually (6% by 2007) or a total of 30% by end of FY2015 (baseline year of 2003)
- Increases renewable energy use 3% annually and at least half from new renewable sources and, where feasible, implements renewable energy generation projects on agency property for agency use
- Meets 100% of metering plan milestones
- Submits water baseline data for 2007
- Reduces water consumption by 2% annually or a total of 16% by the end of FY2015 (baseline year of 2007)
- Designs 100% of new buildings 30% more energy efficient than code
- Transportation Scorecard – Fleet Efficiency Purchases
- Demonstrates 75% of newly acquired, covered vehicles are alternative fuel vehicles and requires the use of alternative fuels in those vehicles
- Reduces fleet’s total consumption of petroleum products by 2% annually
- Increases total non-petroleum fuel consumption by 10% annually

## OFEE Annual EPP Data Questionnaire

- Electronics Stewardship – EPEAT registered products (http://www.epeat.net )
- Biobased Content Products – USDA designated products (http://www.biobased.oce.usda.gov/fb4p/DesignationItems.aspx )
- Recycled Content Products – EPA designated products (http://www.epa.gov/epaoswer/non-hw/procure/products.htm)

## OFEE Annual EPP Data Questionnaire

- Electronics Stewardship
- Total dollar value spent on EPEAT-registered
- Desktop computers
- Monitors
- Laptops/Notebooks

## OFEE Annual EPP Data Questionnaire

- Biobased Content
- Type of product
- Dollar total spent on each type of product
- Supplier of each type of product (GSA, DLA, commercial source)

## OFEE Annual EPP Data Questionnaire

- Recycled Content
- Total dollar value spent on designated products
- Both with and without specified recycled content
- With recycled content
- Without recycled content but are justified exceptions
- Total % of success
- Without justified exceptions (recycled dollar value divided by the total dollar value)
- With justified exceptions (recycled dollar value + justified exceptions value divided by total dollar value)
- Reasons for inability to purchase recycled
- Plan of action to overcome obstacles

## OFEE Annual EPP Data Questionnaire

- Recycled & Biobased Content Reporting Requirements apply to
- All DOE program offices and facilities, contractor-operated DOE facilities, and applicable state and local agencies receiving Federal funds
- All acquisitions, including micropurchases (at or below $2500), in which a product with a designated attribute is acquired
- Each designated product for which DOE’s (all sites combined) total annual purchases exceed $10,000 in the current fiscal year or exceeded $10,000 in the previous fiscal year.

## Annual DOE P2/450.1 Reporting  – EPP Input  

- Established EPP purchasing objectives and measurable targets in the Environmental Management System
- Identified sources needed to implement EPP goal and site-specific objectives in budget
- Participated in voluntary partnerships, such as WasteWi$e and Federal Electronics Challenge
- Received EPP awards

## Celebrate Successes with Pats on the Back and Awards

- Establish Green Purchaser Pat-on-the-Back Awards
- Ideas:  Certificate of recognition or recycled bag or...
- Initiatives:  Mugs with your logo + gift certificate
- Major:  Quarterly roving trophy and gift certificate or financial recognition
- Publish/advertise success stories
- Nominate your staff for DOE-HQ awards

## Where to Find Green Products

**DOE Environmentally Preferable Purchasing****                           ****http://www.hss.energy.gov/nuclearsafety/nsep/p2/epp/index.html**
**Alternative Fuels/Vehicles ****http://www1.eere.energy.gov/vehiclesandfuels/epact/federal/index.html**
**Biobased Products**** ****http://www.biobased.oce.usda.gov/fb4p/Catalog.aspx**
**Electronic Equipment****  ****http://www.epeat.net/ **
**Energy/Water Efficient Products ****http://www.energystar.gov/index.cfm?c=bulk_purchasing.bus_purchasing****http://www.eere.energy.gov/femp/**** **** **
**Non-Ozone Depleting Substances ****http://www.epa.gov/docs/ozone/snap/index.html ****  **
**Recycled Products****                               **_[http://www.epa.gov/epaoswer/non-hw/procure/products.htm](http://www.epa.gov/epaoswer/non-hw/procure/products.htm)_

## Where to Find Other Green Product Info

**Excess/Free Supplies such as at ****http://wastenot.er.doe.gov/DOEmatex/login.asp**
**Fed Center   ****                                                                                            ****http://www.fedcenter.gov/programs/buygreen/ **
**Office of the Federal Environmental Executive****  ****          ****http://www.ofee.gov**
**EPA EPP Database**** ****http://yosemite.epa.gov/oppt/eppstand2.nsf/Pages/Search.html?Open**
**DOE-HQ Blanket Ordering Agreements ****http://www.management.energy.gov/1364.htm**

## To Help You Buy Greenat DOE, Contact

**Your Preferred Procurement Team**
**Procurement - Richard Langston **(Office of Procurement and Assistance Management) – Tel. 202-287-1339
**Environmentally Preferable, Biobased/Recycled Products - Don Lentzen **(Office of Nuclear Safety and Environmental Assistance)** - **Tel. 202-586-7428
**Electronic Equipment – Jeff Eagan **(Office of Nuclear Safety and Environmental Assistance) – Tel. 202-586-4598
**Energy/Water Efficient Products - Shelley Launey **(Office of the Federal Energy Management Program) and Rich Karney (ENERGY** **STAR) – Tel. 202-586-1573 and     202-586-9127
**Construction Materials and Equipment - Anne Crawley/Matt Gray **(Office of the Federal Energy Management Program) – Tel. 202-586-1505/202-586-0067
**Non-Ozone Depleting Substances – Ted Koss/Emile Boulos (**Office of Nuclear Safety and Environmental Assistance) – Tel. 202 586-7964/202-596-1306
**Vehicle Efficient/Alternative Fuels- Shab Fardanesh **(Office of the Federal Energy Management Program) – Tel. 202-586-7011
**Environmentally Preferable Purchasing Technical Support – Sandra Cannon** –       Tel. 509-529-1535
- 		  			  **	****	**