Procurement of Products

Containing Recovered Material:

A Summary of Activities in Seven

States

Office of Recycled Materials

U.S. Department of Commerce

National Bureau of Standards

Washington, DC 20234

July 1981

DEPARTMENT OF COMMERCE

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.U5G

riONAL BUREAU OF STANDARDS

81-2316

1981

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NBSIR 81-2316

PROCUREMENT OF PRODUCTS

CONTAINING RECOVERED MATERIAL:

A SUMMARY OF ACTIVITIES IN SEVEN

STATES

AU6 1 8 1931

no-i c>- A CJoseph G. Berke and

Catherine H. Hudson

Office of Recycled Materials

U.S. Department of Commerce

National Bureau of Standards

Washington, DC 20234

July 1981

U.S. DEPARTMENT OF COMMERCE, Malcolm Baldrige, Secretary

NATIONAL BUREAU OF STANDARDS, Ernest Ambler, Director
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TABLE OF CONTENTS

Page

INTRODUCTION AND BACKGROUND 1

RECOMMENDATIONS 24

State of Florida, Recommendations 25

State of Colorado, Recommendations 30

State of Michigan, Recommendations 34

State of Minnesota, Summary of Recommendations 36

State of New Jersey, Recommendations by Project Team 38

State of New York, Conclusion and Recommendations 41

State of Washington, Recommendations 43

NASPO POSITION PAPER 46

APPENDIX A 59

APPENDIX B 66

APPENDIX C 68

APPENDIX D 70
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INTRODUCTION AND BACKGROUND

This report provides a summary, conclusions, and recommendations gleaned

from a series of studies carried out in seven states on the procurement of

products containing recovered or recycled materials. The participating

states were Washington, Colorado, Minnesota, Michigan, New York, New Jersey

and Florida. In addition to the seven states, the National Association of

State Purchasing Officials (NASPO) participated as project observer and has

provided a position paper reflecting the study and the future directions of

public purchasing related to the procurement of products containing recycled

or recovered materials.

The role of the National Bureau of Standards in this specific area of

public purchasing originates with the mandates of Sections 5002, 5003, and

6002 of the Resource Conservation and Recovery Act (RCRA) (P.L. 94-580) as amended

(P.L. 96-462). The relevant sections of these two laws are reproduced in

Appendix A.

In selecting the participating states the NBS endeavored to select one

state in each Federal region. However, several states that were approached

could not participate at that time. It was then decided that in addition

to the states that could participate in the study to select some states

with contiguous boundaries so that the reader of the state reports might

compare the experiences of these states with regard to products, manufacturers,

and local distributors within the same geographical region. These state

pairs were Minnesota and Michigan, and New York and New Jersey.
The states were first approached through their respective Office of

Procurement. If the Office of Procurement could not directly take a

grant or could not carry out the tasks for any reason, they were asked

to recommend a group who could undertake the project. These recommendations

are reflected in the title pages of the individual state reports. The

state procurement office in each state did offer full cooperation with the

study teams and worked closely with them.

The task activities that NBS asked the states to perform are indicated

in the following work statement:

1. Survey and report on state statutes pertaining to the procurement

of products containing recovered materials.

2. Report on past, current or future programs and other State activities

related to the procurement of products containing recovered materials.

3. Identify and report any legal, institutional, procedural, economic,

or technical barriers to the state procurement of products with

recovered materials.

4. Identify and report on any successful or unsuccessful attempts to

procure products with recovered materials. This should include those

initiated by state solicitation or offerings by suppliers and

manufacturers.

5. Provide a listing of the State's top ten products purchased based

on volume and/or dollar value. This should include any cooperative

purchases for local governments, special districts or agencies.

2
6. Provide a listing, based on the best knowledge and experience in

the State, of products that are most amenable to the inclusion of

recovered materials. If not included in listing of ten products in

item (5), then please provide volume and dollar value of such purchases.

7. For the list of products selected for item 6, provide all pertinent

specifications, test methods, performance criteria and other information

related to the procurement of each product.

The summary section which follows is presented in the order that the

activities are listed in the work statement. The information was compiled

from reading the individual state reports and summarizing the results.

Highlights of specific state activities are presented following a general

summary of each task. For further details regarding any of the participating

states, interested parties are advised to read the specific state reports.

Summary of Responses to Task Activities

1. SURVEY AND REPORT ON STATE STATUTES PERTAINING TO THE PROCUREMENT

OF PRODUCTS CONTAINING RECOVERED MATERIALS.

The purpose of this task was to determine if, in fact, there are

specific prohibitions regarding the purchase of products containing

recycled materials within each specific state. Lack, or removal,

of such barriers could set the stage for the state to create the market

demand cited as the main ingredient for recycling to take place.

3
There are no statutory prohibitions in the seven states surveyed to

the procurement of products containing recovered materials. In fact,

some states have statutes Indicating a preference for these products.

The states all make reference in their respective laws concerning

recycling, resource recovery and procurement. Many states encourage

the recycling of waste materials, but the lack of specific statutes and/or

state procurement programs limits the extent to which the states are

able to carry out federal policy with respect to the spirit of RCRA.

At present the thrust toward procurement of materials originally

destined for waste stems from the use of recovered materials as a

means to achieve energy conservation. Minnesota, Washington, Michigan

and New York have specific solid waste management acts or resource

recovery acts that clearly indicate the Intent of each state to

procure products containing recovered materials. Colorado, Florida

and New Jersey activities in procurement are covered under several

other state acts or plans. Summaries of state statutes pertaining to

procurement follow.

Colorado : The only current pieces of legislation dealing with

recovered materials are the Colorado Land Use Act which encourages,

but does not mandate, the recycling of waste materials and the reuse

of water, and a section in Article 20 of the State Statutes that

requires labeling of recycled oil.

4
The State feels that there are no legal barriers to the procurement

and use of such products. The State Director of Purchasing has

issued several memoranda to staff outlining methods for implementing

the provisions of Section 6002 of RCRA. The primary method for

accomplishing the objectives set forth was the use of a formula adjusting an incoming bid to account for energy conservation which in many

cases could be accomplished through the use of reclaimed materials.

Details of the formula and the memoranda are shown in the Appendix to

the Colorado report.

Florida : There is no legislation specifically requiring or favoring

the procurement of products containing recovered materials in the

State of Florida. Existing legislation pertaining to recycled

product procurement does so tangentially. For example, Chapter 350

(Florida Public Service Commission) Section 350-12(l)(E) declares

that freight rates should "... not discriminate against the transport

of solid waste, recovered resources, or recycled materials and which

rates shall, whenever practicable, provide an incentive for resource

recovery and recycling."

The State Energy Conservation Plan contains a portion on procurement,

but specific wording concerning the use of recovered material as a

means for energy conservation is absent. The report indicates that

there are no legal barriers to the procurement of products containing

recovered materials in the state.

5
Michigan : State statutes in Michigan neither help nor hinder the

procurement of products containing recycled materials. The Solid

Waste Management Act requires regions or counties to consider

a comprehensive waste management approach. Although not explicitly

stated, procurement could be construed to be included in this approach.

The Resource Recovery Act refers indirectly to the issue by promoting

the use of recycled materials by business and the general public.

Although there is a lack of state legislative directives and specific

programs aimed at procurement, nothing was found to expressly or

indirectly prohibit or exclude the purchase of recycled products.

Minnesota : The State's role in the area of procurement comes under

the Solid and Hazardous Waste Management Act, which contains a charge

to the Commission to issue guidelines for procurement of both

commodities that can be recycled as well as products containing

recycled materials. Procurement guidelines are to be written defining

percentages of recovered material, performance specifications and

any preferences necessary to procure such commodities.

New Jersey : State Senate Bill 2174, passed March 1971, establishes a

preference for the purchase of products containing recovered materials

whenever the price is competitive and the quality suitable. Such

preference is to be stated in the advertisement for bids. A complete

text of the Senate bill is shown in the Appendix to the New Jersey

report.

6
New York: The Resource Recovery Act, in the 1980 laws of New York

#

State, makes a policy statement encouraging resource recovery. The

Commissioner of the Department of Environmental Conservation is

charged to review the state plan annually and recommend legislation

for encouraging procurement, and provide incentives for developing

or expanding markets that promote the return of recycled materials to

productive use. Section 201 of the Act directs the purchase of

recycled paper when price and quality are acceptable, directs

elimination of discrimination against recycled paper products, and

directs state agencies to cooperate. Chapter 597 of the laws of 1979

addresses the use of re-refined oil by the state, and directs the

commissioner to investigate the possible use of such oil.

Washington : The State Solid Waste Management Act, first passed in

1969 and amended in 1976, directs the Department of Ecology with

responsibility for solid waste management as well as resource recovery

and recycling. There is no specific statute pertaining to

procurement of products containing recovered material, but the solid

waste management plan does include encouragement for the purchase

of products containing secondary materials.

2. REPORT ON PAST, CURRENT OR FUTURE PROGRAMS AND OTHER STATE ACTIVITIES

RELATED TO THE PROCUREMENT OF PRODUCTS CONTAINING RECOVERED MATERIALS

Programs and other activities relating to procurement of products

containing recycled materials varied from state to state. In general,

procurement programs centered on paper products, reclaimed oil.

7
and asphaltic road materials. Other commodity procurements were

attempted with varying degrees of success. It is evident from the

capsules of state activity which follow that a great deal of

experimentation with recycled material and procurement of products

containing such material is going on in a manner that best fits the

state, local characteristics, and the availability of suitable products.

Colorado : The State's attempts to procure recycled products stem

from the energy conservation programs and involve paper, highway

construction materials, and recycled lubricating oil. The Division

of Highways is examining possibilities for recycling of asphalt, cement

and rubber. Four major tests have been conducted with recycled asphalt

since 1977. Old concrete roads are broken up for use as "aggregate"

base for new roads - a recycling effort found to be successful and

economical. Glass beads used for making reflective paint come from

100 percent recovered glass. Methylene chloride from the State asphalt

lab is recycled by a contract vendor and sold back to the state.

Currently the State's 1980 tax forms were printed on 100 percent

recycled paper. In general, procurement of other types of paper

have been unsuccessful due to barriers to be addressed later in

this report. Bids were solicited for recycled motor oil, but there

were no responses.

Florida : Activities in the State include the procurement of paper

with various amounts of recycled fiber which began in 1971. The

State Department of Transportation is testing asphalt-rubber mixes

for road paving. The rubber for the mix comes from used tires.

8
Currently, sixteen state specifications require and 10 specifications

allow recycled materials originally destined for waste to be included

in the products purchased.

Michigan : Current activities include the purchase of recapped tires

and re-refined oil. In addition, an attempt was made to procure

polypropylene garbage bags made from recovered plastic. These

bags did not have performance features equal to the virgin product,

and therefore were not purchased.

Minnesota : This State is looking into the use of re-refined

lubricating oil for the state automotive fleet. The Department

of Transportation is investigating the potential for recycling asphalt

road materials, the substitution of plasticized sulphur for Portland

Cement, and the use of asphalt-rubber (tires) mixtures for road paving.

New Jersey : Almost all paper products purchased by the state contain

some recycled fiber. Printing papers currently used contain 45 percent

recycled fibers. Data processing printer ribbon is reprocessed for

reuse by the State. This saves the State 70 percent compared to

the cost of new ribbons.

Other procurements include cloth wiping rags with no discrimination

as to fiber content or source, reflective glass beads from cullet,

silver recovery from photo processes for resale, and the recycling

of bituminous concrete for road applications. A cooperative

9
effort on the part of the Department of Energy and the Department

of Environmental Protection has developed the New Jersey Advisory

Committee on Recycling to investigate and recommend recycling

activities within the state.

New York : Current activities include procurement of paper and paper

towels with recycled fiber, reflective glass spheres from cullet, and

wool coats containing recycled wool. Asphalt - rubber mixes are used

for paving and maintenance. Additional information on the other

activities of the state are given in the state report.

Washington : The State is currently purchasing pellets of wood

waste for use as a fuel for heating various state facilities. The

State Highway Division is also experimenting with asphalt-rubber

(tires) mixtures as well as reusing old asphalt in road building.

3. IDENTIFY AND REPORT ANY LEGAL, INSTITUTIONAL, PROCEDURAL, ECONOMIC,

OR TECHNICAL BARRIERS TO THE STATE PROCUREMENT OF PRODUCTS WITH

RECOVERED MATERIALS.

As cited in the response to task activity 1, there are no legal barriers

to the procurement by the states of goods containing recovered material.

Lack of specific guidelines, specifications, product performance

criteria, test methods, or general information regarding the use of

recovered material in products offered for public purchase apparently

leads to uncertainty in procuring one product over its virgin counterpart, as well as to reluctance of suppliers or manufacturers to offer

10
or to publicize the use of recovered materials in products. This

study has shown that many products procured today do contain recovered

or recycled materials, but in many instances the purchasing officials

are not aware of that fact when they buy the commodity.

Quite often products with recovered material tend to be more

costly than the virgin counterpart due to the costs of recovery,

transportation and manufacturing. Public purchasing officials must,

in most cases, adhere to age-old policies of low bid buying.

This policy tends to reduce the competitive nature of the recycled

with respect to the virgin counterpart.

Product availability is another barrier to procurement. The lack

of supply. of a particular product in a city, state or region tends

to reduce or entirely eliminate the number of bidders. This

causes concern on the part of the purchasing official that the

bids - and consequently his agency customers requirement for a

product will not be met. Thus, the purchasing official is often

reluctant to solicit bids. On the other hand, distributors of

products with recycled materials are hesitant to order or stock such

products because the market is not large enough to warrant the

associated cost of obtaining, warehousing, and delivering these

products. The individual state reports cite many examples of the

problems associated with product availability.

When a purchasing official does decide to purchase products containing

recycled materials, the amount of recycled material in a product is

usually difficult to ascertain. In some cases manufacturers are

11
reluctant to list the percentages of recycled material because of

fears, real or imagined, that the product may be viewed as inferior.

State purchasing agents who may use recycled content as a means of

determining the winning bid, may be reluctant to accept the

percentages cited by vendors. A program defining recycled materials

and establishing labeling requirements, supported by test methods,

could help alleviate this problem.

Another barrier arises from societal attitudes toward recycled

materials. Both the "man-in-the-street" and the customer agency,

will consistently select new products over a recycled one. A

coordinated education/information program promoting the quality,

performance and desirability of recycled products may prove helpful

in developing more equitable attitudes among manufacturers, vendors,

buyers and users. The following is a synopsis of the individual

state responses on the question of barriers to procurement.

Florida : No direct legal barriers prevent the state from procuring

recycled goods. However, manufacturers are often reluctant to reveal

percentages of recycled material due to fear of rejection by the

prospective consumer or to protect any competitive edge that may

have been gained due to the use of such material. Purchasers

within individual agencies are able to circumvent the normal

procurement route and purchase through their own agency if they do

not wish to purchase recycled products on state contracts. Because

customers do not usually order large quantities of items

12
containing recyclables, inventories do not turn over quickly;

products remain in the distributor's warehouse for long period

of time. There is no specific clause in the bid package allowing

or encouraging the use of recycled materials. There are very few

manufacturers in Florida who use recovered materials in the

manufacturing process, thus transportation costs become an

important factor in the bid price for these products.

New Jersey : The State uses the low-bid approach when purchasing

products and thereby effectively reduces the ability of recycled

products to compete with virgin product counterparts. Freight

rates and taxes on recovered material are also problems which

increase product cost. The State also cites the difficulty involved

with identifying secondary material content, lack of performance

specifications for products and consumer attitudes as other

significant barriers to the procurement of products containing

recycled materials. For paper, the State cites increased product

cost, longer delivery time and lack of vendors as the major barriers

to procurement.

Michigan : Lack of a coordinated education/information program

promoting the purchase and use of recycled products hinders state

efforts in this direction. No specific state legislation directs the

state to procure recycled products. This, coupled with the low-bid

approach, tends to restrict competition of recycled products compared

with virgin products. General apathy toward recycled products as

an aid to energy and resource conservation is also prevalent. If

13
direct dollar savings are not immediately obvious, the level

of cooperation is extremely low. There are no precedents on

product performance criteria, the procedure to follow when tests

are to be conducted, nor the manner in which information is to be

gathered, evaluated and reported. Finally, buyers are in need

of positive support from the parent agency when they take the

risk of procuring and using recycled products.

Minnesota : No state statutes prohibit Minnesota from procuring

recycled products, products with reclaimed or recycled parts, rebuilt

or refurbished products, or used products. The major barrier

to procuring these products is the state mandate to award bids

to the lowest bidder who is responsive to both quality and performance.

The State also cites the "preference for recycled products" in competition with other programs such as awarding bids to economically or

socially disadvantaged business, small business, handicapped or

rehabilitation industries and correctional industries. Because of

these existing preferential procurement policies, there is general

resistance to giving preference to recycled products unless better

product performance could be proven.

There appear to be significant attitudinal barriers against recycled,

remanufactured or used products, especially with regard to rebuilt

engine parts and re-refined oil. The development of educational and

information programs is needed to allay negative feelings and to

separate fact from fiction.

14
Finally, lack of staff time and technical information tends to

reduce any incentive to try new approaches, test new products,

or evaluate bids and thus continually improve, modify or update

purchasing specifications.

New York : New York cites the lack of manpower, performance criteria,

test methods, information, product availability, and price, as

deterrents to procurement. In addition, the words "new equipment!'

"new" and "used" all require clarification when defined with

respect to recycled materials. Here again it is indicated that

supply of products and the reluctance to cite the percentage of

recycled materials in a product apparently inhibits the

purchase of such products in the normal procurement process.

Colorado : This western state shares many of the same barriers as

those listed above: lack of information on products; lack of

indicating of the percentage of recycled materials in a product;

lack of proper definition of what is considered a recovered material;

lack of product standards; and limited supply and availability.

State purchasing agents lack confidence regarding the information they

receive from the vendors. They are also unsure of where the

procurement of recycled products fits in with other preferential

programs such as small business or correctional institution industry.

Washington : There are few legal barriers to procurement of

recyclables which can be identified within the codes of the State

of Washington. Standard practice is to buy new equipment since

15
bidders are requested to give latest date of manufacturing and

latest state-of-the-art; a need for new products rather than

used, rebuilt or recycled products is thus implied. There is

also a need for more definitive guidelines regarding the best

method by which the intent of RCRA might be carried out.

4. IDENTIFY AND REPORT ON ANY SUCCESSFUL OR UNSUCCESSFUL ATTEMPTS

TO PROCURE PRODUCTS WITH RECOVERED MATERIALS. THIS SHOULD

INCLUDE THOSE INITIATED BY STATE SOLICITATION OR OFFERINGS

BY SUPPLIERS AND MANUFACTURERS.

All of the states taking part in this study have procured products

with recovered material. This material may have been "home" or

"prompt" scrap, from municipal waste, or rebuilt or remanufactured

items. Although the definition of waste as defined by RCRA has

not been the main focus, procurement of recycled products in these

states has been going on for a long time and should be considered

in a positive fashion.

The seven states all tried to procure recycled paper with varying

degrees of success. The least successful was the procurement of

fine bond paper. The most successful efforts were those concerned

with "lesser quality" paper products such as tissues, towels, boxes,

tablets, etc.

All the states involved in this study are investigating the use

16
of recycled materials in road surfacing and as sealants for

road maintenance. A hot mix asphalt pavement mixture has been

used effectively in Minnesota; up to 75 percent of the used

asphaltic pavement has thus been kept out of landfills. New York

has issued contracts for experimental road work using recycled rubber

from tires in sealants, expansion joints and asphalt pavements.

These programs are being carried out on an experimental basis. It is

not yet standard practice to contract for these items on a regular

basis.

Programs for recycling and re-refining oil are underway in

Minnesota, Michigan, New Jersey and Washington. Michigan recently

invited four oil re- refiners to bid on the state automotive fleet

contract. If a re-refiner's bid is successful, all state vehicles

will be using re-refined oil. In addition, the 540 local

governments who use the state contract to obtain oil will also

use re-refined oil.

Other areas where attempts were made to procure recycled products

include glass beads for use in reflective highway paint, retread

tires, polypropylene liner bags for trash, wool coats, wood waste

for secondary fuel, steel posts for street signs, aluminum sign

blanks, and batteries using recycled lead. Many of these and

other attempts to procure recycled products were'ihampered by

inadequate or nonexistent guidelines, specifications and test

17
methods for such products.

Summaries of specific state attempts to procure recycled products

taken from the state reports follow.

Colorado : The State purchases beads for reflective paint made from

glass cullet. A company offered 100 percent recycled aluminum

sheet stock to the State for the manufacture of license plates.

The bid was not accepted because the sheet stock could not pass the

performance criteria required for the plates.

The State of Colorado has tried to procure recycled fine papers

with no success. Over a three year period, the State had 138 nonresponses to bids. In responses to bids for envelopes over the three

year period, only one out of 27 bidders stated a percent range of

recycled material. The bid was not accepted because of unreliable

figures. Currently, state tax forms are printed on 100 percent

recycled paper.

Michigan: The State has consistently purchased products that

contain 60 - 100 percent recycled material. Examples include computer

hardware components, steel sign posts, batteries with recycled

lead and glass beads for road use. In 1975 the State purchased a

small number of "hot cap" retread tires, but performance of these

tires was unacceptable. Presently the State is evaluating a

"cold-cap" retreading process. If tests are successful, the State

would begin to purchase retread tires for fleet use. Since

18
April 1980, Michigan has been studying the availability and performance

characteristics of recycled paper. If availability, performance and

price are competitive, the State will add such paper to the list of

approved products.

New York : The State currently procures paper towels with recycled fiber.

Glass beads for pavement striping are 100 percent recovered glass. The

contract for men's coats allow for the use of 100 percent reprocessed or

reused wool; the State has purchased 468 dozen of such coats. Current

investigations deal with recycling of asphalt road surfaces, use of

glass and rubber in road surfaces to improve durability and skid

resistance, and use of re-refined lubricating oil. The State also

is recovering silver from film processing operations in various

state facilities.

Florida : In addition to the programs indicated in task two, the State

of Florida has contacted suppliers and manufacturers to obtain lists

of avail^ible products that contain recycled materials. Responses

from various companies indicate that one company has aluminum products

containing 90 percent recycled aluminum, while another company can

provide lower cost drums to be used as road barriers. In the

area of paper products, a manufacturer is interested in producing

recycled natural gradecut-size paper, but is unsure of the market.

Another paper company informed Florida that their bond contains

70 percent post-consumer waste fibers. This same company also outlined

the manufacture of envelopes using recycled material whose

19
composition is similar to that of the bond paper containing 70 percent

post-consumer waste fibers.

Washington : Responses to this task are similar in nature to task two.

In discussing items other than those described in task two, Washington

is still in a developmental stage. The State solicited bids for

office copiers containing recycled materials and received responses

from potential suppliers. However, the lack of state guidelines makes

it difficult for purchasing officials to interpret the laws, thus

hindering full implementation of RCRA. This in turn makes it difficult

for equipment containing recovered material to successfully compete

with new equipment on a price basis. The Washington State Purchasing

Division requested the supplier to suggest changes in the State law to

alleviate these procurement problems.

New Jersey : Activity in New Jersey with regard to attempts to procure

recyclables centered around paper for legislative printing, as well as

most of the paper products purchased by the State. Reprocessed printer

ribbons cost 70 percent less than new products. The Department of

Transportation in New Jersey is using recycled material in road surfaces

and in maintenance projects. Other purchases are mentioned in response

to task two.

Minnesota : In addition to purchase of paper products containing

recovered material, Minnesota purchases steel and aluminum and glass

products, fuel oil, wiping rags, and asphalt products. Recycled

asphalt aggregate is 30-70 percent recycled material and is used in a

majority of road surfaces in Minnesota. Many of the Minnesota

purchases are directed at energy conservation measures which are

20
included in life cycle costing formulas so as to ensure the purchase

of the best product.

5. PROVIDE A LISTING OF THE STATE'S TOP TEN PRODUCTS PURCHASED BASED

ON VOLUME AND/OR DOLLAR VALUE. THIS SHOULD INCLUDE ANY COOPERATIVE

PURCHASES FOR LOCAL GOVERNMENTS, SPECIAL DISTRICTS OR AGENCIES.

When the seven states indicated the top ten products purchased by their

state by dollar value, several categories appeared on more than half

of the lists. These categories were:

Category # of States

Fuel oil 6

Automotive, major 6

transportation equipment

Office machines and equipment 4

Paper and office supplies 4

Medical, dental, hospital and 4

laboratory supplies

The following chart indicates the ranking of products purchased by

the states based on volume and/or dollar value. The category listings

in the chart indicate that in most cases, some recycled products could

be or are included when items in these categories are procured. In

some instances, products do contain recycled materials, but this fact

is not indicated in the bid because of fear of rejection based on attitude,

poor labeling practices, or lack of knowledge.

21
RANKING OF PRODUCTS PURCHASED BASED ON' VOLUME/DOLLAR VALUE

Item

o

C_J

<o

Ed. and rec. supplies and services

Buildings and improvements

Food and food services

Land, land improvements

Medical, dental, hospital, laboratory supplies

Light and power

Building and grounds construction materials

Telephone and telegraph

Motor vehicle repairs and supplies

Printing and reproduction, photo supplies

Heat

Automotive—major transportation equipment

Lamps— lighting

Fuel oil --residential

Fuel oil— heating; diesel and kerosene

Reflective sign material

Closed circuit TV

Tires and tubes

Salt Croadl

Paper and office supplies

Drugs

Ofc, machines, computers, typewriters, copy machines

Coal

Food other than meat and poultry

Chemical products

Books, maps, publications

Gasoline

Bituminous concrete and materials

Lumber and basic wood materials

Ofc, furnishings and furniture

Radio equipment

Paint, general and highway

Word processing equipment

22

8

9

10

11

12

3,4

6

9

10

7,8

10

4

5

8

1

9

2

10

4

5

6

2

7

8

4,6

1,10

8

7

5

2

3

2

10

8

5

2

6

7

3

9

10

Wash
6. PROVIDE A LISTING, BASED ON THE BEST KNOWLEDGE AND EXPERIENCE IN THE

STATE, OR PRODUCTS THAT ARE MOST AMENDABLE TO THE INCLUSION OF RECOVERED

MATERIALS. . IF NOT INCLUDED IN LISTING OF TEN PRODUCTS IN ITEM (5),

THEN PLEASE PROVIDE VOLUME AND DOLLAR VALUE OF SUCH PURCHASES.

When the states were queried as to the types of products that they

considered amenable to the inclusion of recovered materials almost

every one indicated various types of paper and paper products, materials

for road resurfacing and maintenance, aluminum, steel, glass, plastics,

and oil. Many of these items were included within the list in response

to item (5). Specific items designated by each state may be seen in

the individual state reports.

23
RECOMMENDATIONS

The states participating in this study indicate that purchases made by

their procurement divisions do, in fact, include many products containing

recycled materials. In some instances, the purchasing agent is unaware

that the procured product contains recycled material because it is not

labelled as to content, or the vendor chooses not to disclose such

information for fear that the product may be viewed as inferior. There

has been a long-standing bias against purchasing recycled goods and a

preference for goods made from virgin materials, even when the

quality of the two items is comparable.

Many states indicate that the lack of standards and specifications for

recycled products inhibits state procurement of products containing

recycled materials. This information is needed by procurement offices

in all states so that proper procurement decisions might be made. The

importance of the link between products containing recycled materials

and energy conservation is noted by several states. This point should

be stressed in an educational program in order that more efficient

allocation of resources might be effected.

The following pages set forth recommendations taken verbatim from the

seven state reports and express the position of each individual state

that participated in the study.

24
STATE OF FLORIDA

RECOMMENDATIONS

° The Legislature should amend Chapter 287 of the Florida Statutes,

entitled "Department of General Services, Duties", by extending

’. C, ^ the life-cycle cost concept under 287.083(5) to include the amount

of energy used in the processing and manufacturing of a product.

A formula similar to that adopted by the State of Colorado

(see Appendix IV), which takes into consideration the percentage

of recovered material in a product, should be studied/revised/adopted

for use by the State of Florida.

° bid invitations for products that potentially may contain recovered material should include a clause requiring a certification of the percentage of recovered material within the product.

The certification should originate from the raw material manufacturer;

an average range should be indicated if an exact percentage is

impossible; and a failure to respond should be interpreted as

0 percent recovered material.

° The definition of "recovered material" in the bid should be the same

as that adopted in the federal "Solid Waste Disposal Act Amendments

of 1980":

The term "recovered material" means waste material and by-products

25
which have been recovered or diverted from solid waste, but such term

does not include those materials and by-products generated from, and

commonly used within, an original manufacturing process.

All product suppliers should be aware of the State's policy to procure

goods containing recovered materials. A clause similar to the following,

adopted from the State of Colorado (see Appendix IV) should be included

in all bids:

"The State of Florida encourages the purchase of goods using recycled/

recovered materials. Bids will be adjusted downward so as to include

the energy conservation value of products that contain some percentage

of recycled/recovered materials. Please certify on your bid the

amount of recycled/recovered material by percent of total weight of

each component."

The Governor's Energy Office should endorse the procurement of

products containing recovered materials as a means of conserving

energy and specifically include this strategy in the "State Energy

Conservation Plan".

The Governor and Cabinet should revise in stronger terms and issue

another resolution to the state agencies supporting the procurement

of products containing recovered material. It should be the responsibility of the Division of Purchasing to publicize the resolution

and administer the directives.

26
o The Division of Purchasing should publicize all the advantages of

procuring products containing recovered materials (e.g., energy

savings, raw material savings, buff color of recycled paper better

for the eyes, etc.). This should be accomplished through the

Division's quarterly newsletter and workshops around the State.

The Department of General Services or another designated governmental

body should enforce the purchasing regulations described in both

Chapter 287 of the Florida Statutes and the Rules and Regulations of

.5. the Division of Purchasing. State agencies must not be allowed to

procure other than contract items, excluding defined exceptions.

If a product containing recovered material is awarded a bid and meets

all specifications and quality and quantity requirements, the products

should be the only choice on contract. It should not be offered

as an alternative.

In the event of a low bid tie for a certain contract, the Division

of Purchasing should award the contract to the product with the

higher percentage of recovered material.

The Legislature should amend Chapter 212 of the Florida

Statutes, entitled "Tax on Sales, Use, and Other Transactions,"

by extending the tax exemption under 212.08(7) (p) to all resource

recovery equipment, and striking the clause limiting the exemption

to equipment" ...owned or operated by or on behalf of any county or

municipal ity.

27
o The Public Service Commission should investigate the rate schedules

charged for the transport of both recycled and virgin materials to

reveal whether or not the directive of 350.12 (1) (e) of the Florida

Statutes, which states that "...rates shall, whenever practicable,

provide an incentive for resource recovery and recycling," has

been instituted.

The Legislature should amend Chapter 556 of the Florida Statutes,

entitled "Bedding Inspection," by revising the separate labeling

requirements for new and used material under Section 556.061 (4) (c)

,

if the quality and sanitation of the new and used material are comparable.

The Bureau of Standards should review the specifications for Paper Milk

Cartons and Cotton Core Matresses to revise the prohibitive

language applying to recycled material.

The Bureau of Standards should encourage the nationally recognized

testing laboratories to hasten their efforts to adopt test procedures

and standards for all potentially recyclable materials.

28
The Division of Purchasing should publicize the purchasing requirements of the federal Resource Conservation and Recovery Act as they

apply to state procurement using federal funds.

The Division of Purchasing should investigate the possibility to

procure and use re-manufactured/re-built products. For example,

IBM is apparently capable and willing to supply its equipment with

70 percent recovered materials (re-used casings, etc.).

The State should research the feasibility of purchasing a warehouse

in the Tallahassee area to store and subsequently supply products

for the local state agencies.

An effort should be made to develop a national directory to consolidate

the names, addresses, and types of products of manufacturers using

recovered materials in the production process.

The Division of Purchasing the Governor's Energy Office; and

the Department of Environmental Regulation, Resource Recovery Section;

should coordinate an information exchange program on the procurement

of products containing recovered materials so that relevant facts

can be communicated to all parties and the efforts of each agency

are not duplicated.

The Governor's Energy Office should renew the contract with the

Energy Management Office of the Division of Purchasing to administer

and implement the recommendations of this report.

29
STATE OF COLORADO

RECOMMENDATIONS

Procurement of products made from recycled/ recovered materials will

not be truly feasible until all of society is indoctrinated towards

the possibilities of and the need for recycling. It needs to

become a way of thinking that is integrated into our lifestyles,

requiring an attitudinal change for each person. A national structure

needs to be created whereby used materials are collected, separated

and recycled.

Purchasing agents cannot buy recycled goods because no such goods

are available. Their only hope is that if they are persistent

enough, some supplier will see that there exists a virtually untapped

market and provide buyers with what they want. Currently the demand

is not great enough to generate a supply. If they work consistently

together, government purchasing agents can help create a stability

in the market demand structure but they cannot do it alone. Private

industry and individual consumers must be enlisted to assist in

this effort.

Purchasing agent should consider all three stages of a product, its

manufacture, its use, and its disposal. Both the amount of resources

used to manufacture the item and the environmental problems in

doing so should be taken into consideration.^^ Questions must be

17

Arthur H. Purcell, "The Waste Watchers", Anchor Books, Garden

City, 1980.

30
answered concerning the amount of resources the item uses over its

lifetime, the amount of environmental damage it causes, its durability

and its repairability.

One must consider, then, whether or not it is wise to lock purchasing

agents into buying recycled materials. Allowing flexibility

in purchasing decisions might be the best answer, as long as purchasing

agents are supplied with information concerning the multitude of

choices.

The first priority on a national scale should be the creation of a

labeling program. For a purchasing agent to successfully choose

between recycled goods and products made from virgin materials it

must be clear to him or her how much of a certain item has been

recycled. Without this information no objective decision can be

made.

A national program establishing a variety of standards for products

would be helpful in creating an atmosphere of stability for recycled

materials. The most important would be standards that successfully

assure people that a particular recycled product is of the same

quality as an equivalent item manufactured from virgin materials.

Perhaps products should also be labeled according to performance

characterisitics and not just point or source of origin.

31
o A more difficult set of standards to implement would be those,

previously mentioned, regarding packaging. N.B.S. might want to

consider helping develop standards requiring a higher level of

durability for packaging or requiring that packaging be limited to

only one or two recyclable or recycled materials.

Standards that require that a product contain a minimum amount of

recycled material should be explored but implemented only with

reluctance.

There are several programs that might better be directed on a more

local scale. The most effective of these would be a motivational

program directed towards both the purchasing agent and the requisitioner.

The main object of such a program would be to change people's

awareness or perception of a situation and by doing so change their

behavior.

One of the ways for a purchasing agent to become motivitated to use

a new tool is to incorporate that tool into the purchasing system

so that it is more difficult not to use than to use. In addition,

it must be clear to the purchasing agent that the tool adequately

satisfies a need. One of these tools is the incentive formula.

One of the reasons it has not been incorporated into bids is that

it is far easier not to use it. For it to be used it must become a

regular feature in bid invitations rather than the optional insert

that it is now.

32
ft

Two other tools could be created that would help purchasing agents

procure recycled materials. One would be a catalogue listing

vendors throughout the nation that sell goods containing recycled/

recovered materials. Secondly, in order to insure that those

ordering goods are aware that recycled options are available,

awards should note those products that contain recycled materials.

Each of these tools would decrease the amount of time a purchasing

agent would need to procure a recycled item and thereby increase

the amount of such items purchased.

In order to ensure a large enough demand for recycled goods.

States and possibly the regions of the Federal Government might

consider banding together to place some of their orders for products.

Such a large demand would very likely generate its own supply. This

type of ordering policy could also result in lower prices. An added

benefit might result from the concentration of buyers. There would

be less duplication of efforts across States.

Another policy that might indirectly help promote paper recycling

is the passage of a law requiring less intense paper brightness. As

noted earlier, such paper would be beneficial for health reasons,

use less energy due to the decreased amount needed in the bleaching

of the paper and help keep recycled paper competitive.

20

The National Buyers' Guide to Recycled Paper (Environmental Educators

Inc.) was an early attempt at this type of catalogue.

33
STATE OF MICHIGAN

RECOMMENDATIONS

The following recommendations are based on findings and conclusions from

the MERRA study of Michigan practices in the procurement of products

containing recovered materials. These recommendations are designed to

stimulate greater state and local procurement of recycled products.

® An individual should be designated within the Purchasing Division

to advocate, promote, and assist the procurement of products

containing recovered materials. This individual, through the

Purchasing Division, would research and test any recycled product

sought by a governmental department or section. The presence

of such an advocate would advertise and strengthen the state's

commitment to energy efficient procurement. The Energy Engineer,

now assigned to the Purchasing Division, could fill this assignment.

° A statewide survey of local procurement practices should be

conducted to assess current practices, needs, and future directions

of energy- related local procurement.

° A follow-up program based on the survey should then provide the

information, expertise, and motivation necessary to help local

governments procure recycled products.

° A liason person should be designated to inform Michigan

34
government units involved in solid waste management planning about

the close relationship of recycled product acquisition to waste disposal.

The person would coordinate the various groups concerned to promote

the purchase and use of recycled products.

A study should be conducted in Michigan to determine if establishment of a legislative preference for recycled goods is desirable

or practicable.

1

A government-wide promotional campaign should be implemented to

inform and educate purchasers and consumers about the link between recycled products and energy conservation. The negative

view of recycled products should be systematically replaced with

a positive attitude, receptive awareness, and readiness to try

products containing recovered materials.

The state should encourage the development of Michigan industries

engaged in resource recovery and the manufacture of products

incorporating recovered materials.

35

agencies coupled with positive public relations efforts may help to

eliminate the negative connotation of "recycled."

Procurement divisions need a product catalog of vendors and

manufacturers of products that contain recovered materials, remanufactured

or rebuilt parts.

While the procurement of products with recovered materials should be

a major concern as it relates to energy and resource conservation and

waste management, state governments can make an equally important

contribution through sound resource management practices in the areas of

waste reduction, resource conservation, waste management, and resource

recovery.

37
STATE OF NEW JERSEY

RECOMMENDATIONS BY PROJECT TEAM

That the recycled quantity certificate curently included on

a number of paper contracts be expanded to all state paper contracts.

This vendor self-certification is the only method currently

available to assist the government in verifying recycled material

content.

That a clear and up-to-date definition of "recycled" be included

in contracts for products which are amenable to inclusion of

recovered materials (particularly paper). The current 6SA

definition should be used. In addition, a statement on the front

of the bid package should specify that the State of New Jersey

is interested in expanding its purchase and use of recycled products.

That a complete review be devoted to studying the feasibility of

revising the State's lubrication contract to allow for the use

of re-refined oil. The military specification has already made

the first step by removing the requirement that lubricating oils

contain only virgin oil.

That the Division of Purchase and Property's Business Specialist

be assigned to assist the buying staff in locating additional

firms which market products using recycled materials. This

will provide the State with new sources of supply and will

38
continue the work of the Project Staff who through the use of

survey questionnaires were able to add 25 vendors to the State's

bidding list. (16 paper-products companies, 7 retreaders and

2 oil re-refiners.)

That a contact be made with the State's DOT in order to discuss

the possibility of revising the crushed stone aggregates and

bituminous concrete contracts to allow recycled materials. Since

the DOT has already successfully contracted for the breaking

up, reprocessing and use of asphalt this may be implemented without too much difficulty.

That continued research be devoted to the study of the use of

retreaded tires. Although their use may be in limited applications,

it appears that cost savings are possible. Contacts have already

been made with five of the major national tire companies.

That the necessary language be included in all State printing contracts

requesting that the printer use recycled papers whenever possible.

That a Circular Letter be sent by the Purchase Bureau to all State

using agencies describing the requirements of the Federal Resource

Conservation and Recovery Act, P.L. 94-580 as it relates to the

purchase of recycled products when using federal funds.

39
o That a federal specification and testing unit be established

(possibly jointly through EPA, GSA and NBS). This group could

provide direction to the states by serving as a central storehouse

of case studies, specifications and quality tests.

Education regarding recycled misconceptions, bias, etc. is necessary

for state vendors, using agencies, and buyers.

Advocate the expansion of cost-effective resource recovery programs

in order to increase the material feedstocks for industry. Procurement success depends on a constant supply and stable prices.

The individual states, possibly through the National Association

of State Purchasing Officials (HASPO) or the National Institute

of Governmental Purchasing (NIGP) should begin a catalog file of

all firms that they currently do business with which market

recycled products. This would be broken down by commodities

(eg: paper, oil, tires, etc.) and could eventually be printed and

disseminated to all states for their use in future bids. This

would provide exposure to the affected firms and surely bring

many unknown firms to the attention of government procurers.

Report to the appropriate Federal and State officials barriers

which exist that adversely effect the recycling industry and press

for remedial action.

40
STATE OF NEW YORK

CONCLUSION AND RECOMMENDATIONS

Conclusion

° We strongly suspect that there are larger numbers of goods

purchased containing recycled materials than we were able

to identify within the time constraints of this report. We

are optimistic that the stigma associated with recycled materials

will diminish through the use of standards and test procedures

that guarantee an acceptable level of quality. As this transpires,

more recovered products will be identified and new products will

become available containing recovered materials.

° Development of specifications and test procedures guaranteeing

quality will allow removal of many of the barriers to the

procurement of products containing recycled- recovered materials.

As public confidence in products containing recycled products increases,

industry may then be willing to more heavily invest in the production

of goods containing recycled material as they will be assured

of a competitive market.

Recommendations

° Establish and fund a federal recycled/recovered materials

specification review program. This group in conjunction with

other standards organizations such as ASTM, would review federal

41
and standards organization specifications, and test procedures, for

possible restrictions to products containing recovered materials.

Once specifications were identified, the group would work toward

developing, where reasonable and practical, specifications and test

procedures guaranteeing quality, and "neutral" to the inclusion of

recovered materials. This group could be a central clearinghouse

with information on recycled product specifications and test procedures

that would be made available for voluntary inclusion in State

purchasing solicitations.

Encourage funding of technical type individuals in each State's

purchasing function to concentrate on recycled materials. This

group could recommend when the incorporation of specifications

developed in the federal program might be included in the State's

purchase solicitations. The above would also identify and remove

restrictions and write purchase specifications and test procedures

containing clauses to accept recovered materials for specific

purchases. Once a product area amenable to recovered materials was

Identified, the group would work with the appropriate State agencies

and legislative officials in guaranteeing a waste stream so that

the used product would be available for recycling.

42
STATE OF WASHINGTON

RECOMMENDATIONS

That consideration be given to combining the procurement programs

required under EPCA and RCRA into one program with adequate funding

and personnel to insure the success of both.

That a clear definition of the difference between "used” and

reclaimed or recycled materials be developed, and that a contract

clause be developed by NBS or NASPO for use by procuring activities

reflecting that difference.

That no attempt be made to develop "preferences" for vendors using

recycled materials, but that no limitation be placed on a vendor

wishing to go into an area of interest, and further that barriers

resulting from any existing preference programs be eliminated.

That standards, qualified products lists, and specifications be

developed centrally by NBS, NASPO, and other centralized activities

in order to generate a universal document useable by all rather

than simply a regional approach. This would apply to large item

procurements, such as paper, tires, asphalt, typewriters, etc.

which are bought by every government agency.

That in developing methods of buying materials containing reclaimed

or recycled materials, the principal consideration be the percentage

43
of recycled material used equated to energy savings.

That area differences be considered in developing procurement

procedures i.e,, the Northeast is different from the Northwest

and NBS attempts at centralization must accept that fact.

That NBS define and develop recovery procedures and programs to be

used with precious metals, spelling out what net returns should be

and what the states can expect if they implement such programs.

That attachment 0 to the Federal Circular AllO published by 0MB

and OFPP be rewritten to include the general provisions of RCRA as

it pertains to procurement when using federal funds.

That the State Purchasing Division (S.P.D.) conduct an extensive

training program both in house and throughout the political

subdivisions which rely on S.P.D. for procurement actions as to

the intent and meaning of RCRA.

That buyers be made aware that appraisal of their manner of performance

will reflect their application or lack thereof of the intent of

the Act.

That solicitations for bids always contain the provision that.

44
unless there is statutory exclusion, the use of reclaimed materials

in the fabrication of a supplied item will be given equal consideration

with new materials.

That NBS and the Department of Commerce work more closely with

manufacturers to insure ready identification of products containing

reclaimed or recycled materials in an attempt to remove the stigma

attached to "used" equipment.

45
NASPO POSITION PAPER

The National Association of State Purchasing Officials (NASPO) is

pleased to participate in the survey and report by the Office of

Recycled Materials of the National Bureau of Standards regarding

the interest and activities of state purchasing offices in buying

recycled products. Questions and answers are overdue with respect

to the purchasing functions of the states and the reduction of solid

waste. Thus, in this inquiry the Bureau is touching upon a resource

whose usefulness has not been given adequate attention.

Since its formation following World War II, NASPO, an affiliate of

The Council of State Governments, has consistenly sought to identify

and foster the best principles and practices in public purchasing. In

doing so, the interest of the taxpayer is kept paramount. This tradition,

coupled with the responisbility of its members for contracting for

some eight to ten billions of dollars annually of equipment, materials,

and supplies, suggests that the Association should play a constructive

role in developing policies and recommendations for encouraging the

practicable recovery and re-use of such items.

In selecting seven states for a limited study, the Office of Recycled

Materials sought primarily to ascertain whether there are barriers --

legal, institutional, procedural, economic, or technical -- which hamper

or prevent the purchase of recycled products by these states.

Prior to discussing the results of the survey, however, it should be

46
recognized that recycled products come about in several ways. There are

products made from discarded material, some of which are bought and sold

in the regular course of business. Where such manufacture is the market

practice and is offered in the form of of standard products, as in the

case of wiping rags, glass spheres for reflective paints and signs, and

coarse paper items such as chipboard, impediments to their purchase are

insignificant or non-existent.

Further, there are items offered in the normal course of trade which

are generally thought of a "recycled"; among these are retread tires and

data processing hardware. Then there are such things as building

materials and wood pellets used for fuel that are made from unused waste

products. Finally, there are numerous items which can be and are rebuilt,

ranging from automotive parts to concert grand pianos.

Production utilizing material in any of these forms reduces the amount

of solid waste and in this commentary, therefore, NASPO gives consideration

to the use or re-use of materials and products either recovered or diverted

from waste, essentially as described under Section 1004 (14), amended, of

the federal Solid Waste Disposal Act.

Generally, impediments to the purchase of these products are most evident

where such a product has characteristics regarded as inferior to the

virgin product, has a higher acquisition or use cost, or both. Bond

papers, for example, made from recovered paper material for use as a letterheads or for duplicating, typically are darker in tone (that is, are

more gray; have lower "brightness") where whiteness is esteemed; have

47
inferior erasability; and often are higher in price. Resistance to

their purchase and use, therefore, tends to be wide-spread.

An interesting difference can be observed here. When manufactured with

a content of recovered cotton fiber, usually twenty-five percent or

more, from waste cloth, the paper takes on a premium quality as to appearance and performance and commands a higher price than the best grade

"all-sulphite" bond sheet.

Continuing with bond paper as an example, when made from recovered paper it

suffers from another failing, lack of availability, which further operates

as a barrier to its purchase. On one hand, the State purchasing or contracting

authority requires reliability of supply to satisfy the needs of the numerous

using agencies its office must serve. On the other hand, the mill that

produces such paper must depend upon a supply of waste papers which is

often uncertain and erratic.

This example of bond paper acknowledges the close identification that has

become established between the use of post consumer waste paper and

recycling as a whole. Such a tie-in is almost invariably made a part of

law, policy, and discussion of recovered material. But perhaps it is

appropraite to question whether there is not an overemphasis on the

recovery of paper for re-use as paper in relation to the overall aspects

of recycling equipment, materials, and supplies. Alternatively, for

example, waste paper (especially the low grade, ground wood compositions

which constitute a high percentage of the waste volume) can be used

48
as fuel, or as insulation, agricultural mulch, and other things; if not

recovered it biodegrades.

Performance, price, and availability, then, are major market influencing

factors which surround, and thereby may deter or prevent, the purchase

of any product but perhaps they apply more critically to recycled or

used items.

Taken together, the questions raised and problems cited in the responses

from the seven states selected for the study are seen by NASPO to be

broadly representative of those existing among all the states. It is

significant to note that there are few if any direct legal barriers to

the purchase of recycled products. On the contrary, at least one-half

of the states surveyed have law or policies supporting the purchase of

them. There are, however, certain legally implied impediments which

need to be properly understood.

One encumbrance relates to fundamentals of competitive sealed bidding,

the procurement method under which state governments generally are required

to obtain equipment, materials, and supplies. The courts hold that the

purpose of competitive bidding is the conservation of public funds.

Tenders submitted under competitive bidding are evaluated, therefore,

as to suitability and economy for the state. Products offered which are

made from recovered material frequently are less suitable for the purposes

intended and/or are less economical to buy or to use.

Economy is not, of course, necessarily equivalent to or determined by

49
initial price. State purchasing is Increasingly concerned about the

cost-effectiveness of the products it buys. Its objectives are becoming more results oriented. Thus, in evaluating competitive bids

on differing brands and on products with differing characteristics,

price/performance relationships are established to arrive at optimum economy.

In recent years this practice has become extensive especially in the

purchase of products which consume energy, wherein the cost of energy

required for operation is calculated and made a factor in determining

overall cost. This results not only in conservation of energy and

greater economy, but provides incentive for manufacturers to make their

products more energy efficient. Other identifiable costs of owning and

using the item proffered also are added to the bid, or acquisition, price.

In terms of economy, some recycled products, such as retread tires and

wiping rags, are found to be cost effective, while others are not.

Another legally related impediment involves the view the purchasing

office takes of its responsibilities. It sees as a basic function the

duty to meet in an economical and timely manner the legitimate needs of

the program agencies it serves. Where products containing recovered

material fulfill these criteria under the principles of competitive bidding,

barriers to purchasing them do not exist or essentially are eliminated, with

the caveat that while objection to a characteristic or a product (such

as low brightness in a bond paper) on the part of using agencies does not

necessarily govern the purchasing decision, neither is it likely to

be completely ignored.

50
As a manifestation of its duty to serve the needs of using agencies,

purchasing offices tend to favor the purchase of new products, and as

a general policy they may provide that all offerings by bidders shall

be new products unless specifically provided otherwise in the Invitation

for Bids. Such natural averseness to the uncertainties inherent in the

purchase of used merchandise has been seen within purchasing as prudent

and in keeping with good practice. To the extent this way of thinking

acts to impede the purchase of recycled products, however, it could be

substantially relieved by education and appropriate definitions.

Difficulties attending the fluctuating availability of various

products made from recovered material are magnified by the fact that

states buy most of these types of items under indefinite quantity contracts, a technique which attracts favorable prices while simultaneously

reducing administrative costs. These "term" contracts, usually advertised

for competitive bids and awarded on an annual basis, establish the

supplier and price of an item but do not designate specific quantities

or delivery dates. Instead, orders are placed, or releases made, for

delivery as needed throughout the contract period. This requires

the supplier to have the contract item in stock or readily available in

order to make prompt deliveries of diverse quantities against numerous

unscheduled orders, if the contract is to work successfully.

Finally, a broad based problem which has a negative effect on the

purchase of products containing recovered materials has to do with

51
standards, specifications, tests, and other criteria necessary for

product comparison and evaluation. To the extent that such standards are

made high to improve quality and acceptability, availability is adversely

affected. Similarly, to the extent that specifications are written rigidly,

competition as well as availability is adversely affected. On the

other hand, widening the limits of standards and specifications is not

appropriate without workable criteria for making comparative price/performance

evaluations.

The complexity of this technical problem is somewhat illustrated by the

indefiniteness of a provision often found in policy statements and

specifications applicable to products made from recovered materials. The

provision stipulates that the products shall utilize "recovered materials

to the maximum extent possible," and usually adds that vendors shall certify

the amounts of recovered materials used in the products offered.

While this may favorably influence increased use of recovered material,

without adequate performance criteria such information is not sufficient

for making sound purchasing decisions.

On the whole, then, barriers to the purchase of products made from recovered

material are associated with practicalities. And the obstacles can best

be overcome by finding practical solutions, not by mandate.

Of primary importance on an item by item basis is the matter of costeffectiveness. This goes directly to the public purchasing objectives

of economy and conservation of funds. Crucial to establishing costeffectiveness is the technical work necessary in developing effective

52
standards and specifications, and criteria for evaluating price/performance factors. Beyond this, are there particular cost benefits resulting

from reductions in solid waste that can be denominated and taken into account?

Enhancing the acceptability of recycled products involves both technological

and educational efforts. Quality and performance of the products are

improved through technology. This in turn improves acceptability, as does

favorable use experience. Much can be done to dispel negative attitudes

on the part of using agencies by successful experience gained from the

purchase of rebuilt or remanufactured items with adequate safeguards as

to condition and performance, such as transformers, auto and truck

parts, laundry equipment, engines, pianos, electric motors, and office

machines. No one questions the efficacy of this today in the case of

data processing equipment; it has become standard trade practice.

However, the purchase of such items can be economical as well as reduce

solid waste.

Not only can technology improve the performance and acceptability of

a recycled product, as has recently occurred with engine lubricating oil,

it can reduce the price to be competitive with, or lower than, a comparable

product using virgin material. Another factor in reducing price is increased production, which is motivated by greater acceptability and

larger demand. Concomitantly, increased production brings about improved

supply and availability.

Replies to the survey tend to support information from other experience

to the effect that there is need for more discourse between the purchasing

53
community and manufacturers in various product areas in order to advance

mutual understanding regarding technology, availability, and competitive

evaluations. Accomplishing this would likely depend upon initiatives

on the part of the former.

NASPO views this undertaking by the NBS Office of Recycled Products as

useful and productive, especially if construed as an initial step. Responses

to the several components of the project work statement were indicative

of three important conclusions: (1) that the state purchasing offices

appreciate the need to expand purchases of recycled products and reduce

solid waste: (2) that the principal barriers to accomplishing this are

lack of suitable standards, specifications, and price/performance criteria

for individual materials; (3) that there is need for a continuing means of

interstate communication to focus attention, inspire cooperation, and

transmit experiences.

The validity and practicality of these conclusions could be tested by

experiments involving all states working in a few selected product areas.

Acceptability of recycling as a concept is likely to be affected in a

positive way by growing economic considerations. This is already noticeable

in the case of waste lubricating oils, as evidenced by visits during

March 1981, of more than IQO purchasing, energy, and other administrators and

officials from 47 states to the new re-refining plant being operated by

the State of North Carolina. Traditionally, the United States has

recovered some 20 percent of its waste paper for production of additional

54
tr

paper; in Germany, the figure exceeds 30 percent, and Japan imports

certain grades of waste paper for this purpose. Declining highway

revenues are spurring states to use more reclaimed materials in road

construction and maintenance. These and other examples of the effect

of economic factors suggest that in terms of procurement, perhaps the

substantive aspects of recycling are only beginning to get underway.

Collectively, the purchasing programs of the fifty states have extensive

capacity for new and progressive ideas. But unfortunately, there is no

mechanism or system available for stimulating, assembling, organizing,

disseminating and exchanging these ideas. If the problems pertaining to

the purchase of recycled products were identified and articulated in a

manner to challenge state purchasing programs, and if an effective information exchange could be established, it could be expected that workable

solutions would be forthcoming to the extent they are available.

This broad-based, unique resource for innovation needs to be instituted

and utilized to its full advantage.

Finally, there are supplementary ways by which NASPO might conduce to

more buying and use of recycled products. An established information

exchange would strengthen the success potential of related endeavors in

which NASPO engages with other professional organizations, including

current programs with ASTM (American Society for Testing and Materials)

and NIGP (National Institute for Governmental Purchasing). And the

Association could supply additional motivational support by institutional

55
means such as consideration by its Executive Committee of formal endorsement of the concept, or a resolution to this purpose presented to the full

membership for adoption at its annual conference.

If the purchasing knowledge and resources of the states are to be applied

to the manifold questions inherent in the buying of recycled products,

NASPO recommends that it be done by means of a program under the aegis and

direction of the Council of State Governments.

One way in which such a program could test, and demonstrate, its effectiveness would be by assigning selected product areas to different groups

of states. Thus, one group could focus on the policies and problems

associated with the purchase of rebuilt and remanufactured items. Another

group could work in the field of recovered papers. A third group could

concentrate on the entire spectrum of energy resource items, including the

extended use or reclamation of oils. Among additional areas of examination

could be the recycling of highway construction materials, and the inhouse

reconditioning of various kinds of equipment (office, transportation,

furniture, etc.).

The program would require experimentation, and as appropriate, a trial and

error approach. Test procurements would be made. Experiences would be

analyzed, summarized, and disseminated to all of the states and to numerous

interested parties. The Council of State Governments would exercise

coordination in providing a policy or oversight component, and in securing

the active participation of the industrial sector, local governments, trade

associations, and of standards and specifications groups such as the

56
American Society for Testii^g and Materials and the American National Standards

Institute. The cooperation and assistance of a number of Federal agencies

would also be needed.

Benefits from such a program, properly managed, would be many and varied,

including gains which could be considered both short-term and long-term,

primary and secondary, practical and theoretical. In addition to reduction

of solid waste would be, for example, the fostering or the achievement

' '* • of:

° A deeper understanding of the need for recycling

° More clearly defined and usable standards and specifications

° More complete and reliable information from manufacturers

° Increased realization of savings through use of recycled items

° More serviceable product labeling

° A greater commitment by purchasing to the acquisition of recycled

products

° More explicit performance criteria for comparing recycled and

virgin products

° A better ability to calculate "social" cost benefits in

evaluating bids

° More artful drafting of Invitations for Bids

° Added acceptability of recycled articles on the part of program

agencies

57
° Improved testing and evaluation capabilities of the individual

states

® A larger market for recycled products

° More widely disseminated information among the purchasing community

as to availability of recycled commodities

° A better identification of problems capable of solution; of those not

so amenable; and of alternatives

° The inception of an ongoing public purchasing information exchange

system

° Increased conservation of public funds

58
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PUBLIC LAW 94-580—OCT. 21, 1976

42 use 6951.

Publication of

guidelines. 42 use 6952.

Cooperation with

national ttandards<8etting

organixations.

42 use 6953.

42 use 6954.

“Subtitle E—Duties of the Secretary of Commerce in Resource and

Recovery

“ruNcnoNS

“Sec. 5001. The Secretary of Commerce shall encourage greater

commercialization of proven resource recovery technology by pro- viding

“(1) accurate specifications for recovered materials;

“(2^ stimulation of development of markets for recovered

materials;

“(3) promotion of proven technology ; and

“(4) a forum for the exchange of technical and economic data

relating to resource recovery facilities.

“development of specifications for secondary MAa”ERIAL8

“Sec. 5002. The Secretary of Commerce, acting through the

National Bureau of Standards, and in conjunction with national

standards-setting organizations in resource recovery, shall, after

public hearings, and not later than two years after the date of the

enactment of this Act, publish guidelines for the development of

specifications for the cla.ssirication of materials recovered from waste

which were destined fer disposal. The speciricjitions shall pertain to the physical and chemical properties and characteristics of such materials with regard to tiioir use in replacing virgin materials in various

industrial, commercial, and governmental uses. In establishing such

guidelines the Secretary shall also, to the e.xtont fe.asible, provide such

inforn'.at ion as may be necessary to assist Federal agencies witli pro- curement of items containing recovered materials. The Secretary shall continue to cooperate with national standards-setting organizations,

as may be necessary, to encourage the publication, promulgation and

updating of standards for recovered materials and for the use of

recovered materials in various industrial, commercial, and governmental uses.

*

“development of markets for recovered haterials

“Sec. 5003. The Secietary of Commerce shall within two years

after tiie enact njent of tlii.s Act take such actions as may be necessary

“(1) identify the geographical location of existing or potential markets for recovered materials;

“(2) identify the economic and technical barriers to the use of

lecovered materials ; and

“(3) encourage the development of new uses for recovered

materials.

“technology PROMOTION

“Sec. 5004. The Secretary of Cominerce is authorized to evaluate

the commercial feasibility of resource recovery facilities and to publish the results of such evaluation, and to develop a data base for

purposes of assisting persons in choosing such a system.

60
“Subtitle F—Federal Responsibilities

“application of fedkral, state, and local law to

FEDERAL FACILITIES

“Sec. 6001. Each department, agency, and instrumentality of the

executive, legislative, and judicial branches of the Federal Government (1) having jurisdiction over any solid waste management

facility or disposal site, or (2) engaged in any activity resultmg, or which may result, in the disposal or management of solid waste or hazardous waste

shall be subject to, and comply with, all Federal, State, interstate, and

local requirements, both substantive and procedural (including any

requirement for pennits or reporting or any provisions for injunctive

relief and such sanctions as may be imposed by a court to enforce

such relief), respecting control and abatement of solid waste or hazardous waste disposal in the same manner, and to the same extent, as any person is subject to such reijuirements, including the pa30nent

of reasonable service charges. Neither the United States, nor any

agent, employee, or officer tliereof, shall be immune or exempt from

any pi-ocess or sanction of any State or Federal Court with respect

to the enforcement of any such injunctive relief. The President may

exempt any solid 'A'aste management facility of any department,

agency, or instrumentality in the executive branch from compliance

with such a requirement if he determines it to be in the paramount

interest of the United States to do so. No such exemption shall be

granted due to lack of appropriation unless the President shall have

specifically requested such appropriation as a part of the budgetanr

process and the Congress shall have failed to make available such

requested appropriation. Any exemption shall be for a period not in excess of one year, but additional exemptions may be granted for

periods not to exceed one year upon the President’s making a new

determination. The President shall report each January to the Congress all exemptions from the requirements of this section granted

during the preceding calendar year, together with his reason for

granting each such exemption.

“federal FROCUREME.VT

“Sec. 6002. (a) Application of Section.—

E

xcept as provided in

subsection (b), a pri^uring agency shall comply with the require- ments set forth in this section and any regulations issued under this

rection, with respect to any purchase or acquisition of a procurement

Item where the purchase price of the item exceeds $10,000 or where the

quantity of such items or of functionally equivalent items purchased

or acquired in the course of the preceding fiscal year was $10,000 or more.

(b) Procurement Subject to Other Law.—

A

ny procurement, by any procuring agency, which is subject to regulations of the

Administrator under section 6004 (as promulgated before the date of

enactment of this section under comparable provisions of prior law)

shall not be svibject to the requirements of this section to the extent

that such requirements are inconsistent with such regulations.

(c) Requirements.—(1) After two years after the date of

enactment of this section, each procuring agency shall procure items

composed of the highest percentage of recovered materials practicable

consistent with maintaining a satisfactory level of competition. The

decision not to procure such items shall be based on a (^termination

that such procurement items

*'(A) ttre not reasonably available within a reasonable period

of time

;

"(B) fail to meet the performance standards set forth in the

applicable specifications or fail to meet the reasonable performance standards of the prex^uring agencies ; or "(C) are only available at an unreasonable price. Any determination under clause (ii) shall be made on the basis of the

guideline of the Bureau of Standards in any case in which such

material is covered by such guidelines.

42 use 6961.

Exemptioiu.

Presidentul

report to Congieta.

42 use 6962.

61
"(2) Agencies that generate heat, mechanical, or electrical energy

from fossil fuel in systems that have the technical capability of using

recovered material and recovered-material-derived fuel as a primary

or supplementary fuel shall use such capability to the maximum

extent practicable.

"(3)After the date specified in any applicable guidelines prepared

pursuant to subsection (e) of this section, contracting officers shall require that vendors certify the percentage of the total material

utilized for the performance of the contract which is recovered

materials.

“(d) Specifications.—(1) All Federal agencies that have the

responsibility for drafting or reviewing specifications for procurement item procured by Federal agencies shall, in reviewing those

specifications, ascertain whether such specifications violate the prohibitions contained in subparagraphs (A) through (C) of paragraph

(2). Such review shall be undeitaken not later than eighteen months

after the date of enactment of this section. “(2) In drafting or revising such specifications, after the date of

enactment of this section

“(A) any exclusion of recovered materials shall be eliminated;

“(B) such specification shall not require the item to be manufactured from virgin materials; and

“(C) such specifications shall require reclaimed materials to

the maximum extent possible without jeopardizing the intended

end use of the item.

“(e) Guidelines.—The Administrator, after consultation with the

Administrator of General Services, the Secretary of Commerce (acting through the Bureau of Standards) , and the Fublic Printer, ^all

prepare, and from time to time revise, guidelines for the use of

procuring agencies in complying with the requirements of this section. Such guidelines shall set forth recommended practices with respect

to the procurement of recovered materials and items containing such

materials and with respect to certification by vendors of the

percentage of recovered materials used, and shall provide

information as to the availability, sources of supply, and potential uses of such materials and items.

“(f) Pkocurement of Services.—A procuring agency shall, to the

maximum extent practicable, manage or arrange for the procurement

of solid waste management services in a manner which maximizes

energy and resource recovery. “(g) Executive Office.—The Office of Procurement Policy in

the Executive Office of the President, in cooperation with the Administrator, shall implement the policy expressed in this section. It shall be the responsibility of the Office of Procurement Policy to coordinate

this policy with other policies for Federal procurement, in such a way as to maximize the use of recovered resources, and to annually

report to the Congress on actions taken by Federal agencies and the

progress made in the implementation of such policy.

“cooperation with environmental protection agency

“Sec. 6003. All Federal agencies having functions relating to solid ^2 USC6963.

waste or hazardous waste shall cooperate to the maximum extent permitted by lav/ with the Administrator in carrying out his functions under this Act and shall make all appropriate information,

facilities, personnel, and other resources available, on a reimbursable

basis, to the Administrator upon his request.

62
“applicability of solid waste disposal guidelines to executive

AGENCIES

“Sec. 6004. (a) Compliance.—(1) If

“(A) an Executive agency (as defined in section 105 of title

5, United States Code] has jurisdiction over any real property

or facility the operation or administration of which involves

such agency in solid waste management activities, or

“(1>) sucli'an agency entei-s into a contract with any person

for the operation by such person of any Federal property or

facility, and the performance of such contract involves such

person in solid waste management activities,

then such agency shall insure compliance with the guidelines recom- mended under section 1008 and the purposes of this Act in the operation or administration of such property or facilityj or the performance

of such contract, as the case may be. “(2) Each Executive agency which conducts any activity

“(A) which generates solid waste, and

“(R) which, if conducted by a person other than such agency,

would require a permit or license from such agency in order to dispose of such solid waste,

shall insure compliance with such guidelines and the purposes of this

Act in conducting such activity.

“(3) Each Executive agency which permits the use of Federal

property for purposes of disposal of solid waste shall insure compliance with such guidelines and the purposes of this Act in the

disposal of such waste. “(4) The President shall prescribe regulations to carry out this subsection.

“(b) Licenses and Permits.—Each Executive agency which issues any license or permit for disposal of solid waste shall, prior to the

issuance of such license or permit, consult with tlie Administrator to insure compliance with guidelines recommended under section 1008

and the purposes of this Act.

42 use 6964.

Ante, p. 2803.

Regulations.

/

Ante, p. 2803.

63
PUBLIC LAW 96-482—OCT. 21, 1980

42 use 6952.

42 use 6953.

Marketing

policies, establishment. 42 use 6055.

42 use 6962.

Federal procurement

items.

Sec. 21. (a) Section 5002 of the Solid Waste Disposal Act is amended

by striking out “the date of the enactment of this Act” and inserting

in lieu thereof “September 1, 1979”.

(b) Section 5003 of such Act is amended by striking out “the

enactment of this Act” and inserting in lieu thereof “September 1, 1979,”.

(c)(1) Subtitle E of such Act is amended by inserting the following new section after section 5004:

“nondiscrimination requirement

“Sec. 5005. In establishing any policies which may affect the

development of new markets for recovered materials and in making

i. ^y determination concerning whether or not to impose monitoring

or other controls on any marketing or transfer of recovered materials, the Secretary of Commerce may consider whether to establish the same or similar policies or impose the same or similar monitoring or other controls on virgin materials.”.

(2) The table of contents for such Act is amended by inserting the

following new item after the item relating to section 5004:

“Sec. 5005. Nondiscrimination requirement.”. Sec. 22. Section 6002 of the Solid Waste Disposal Act is amended as

follows:

(1) in subsection (c)(1), by deleting the first sentence and

inserting in lieu thereof the following: “After the date specified

in applicable guidelines prepared pursuant to subsection (e) of

this section, each procuring agency which procures any items

designated in such guidelines shall procure such items composed

of the highest percentage of recovered materials practicable,

consistent with maintaining a satisfactory level of competition,

considering such guidelines.^’;

(2) in subsection (c)(1)(C), by striking “clause (ii)” and inserting

in lieu thereof “subparagraph (B)”;

(3) in subsection (c)(2), by deleting “recovered material and

recovered-material-derived fuel” and inserting in lieu thereof

the following: “energy or fuels derived from solid waste”;

(4) in subsection (c)(3), by deleting everything after “vendors”

and inserting in lieu thereof a colon and the following:

“(A) certify that the percentage of recovered materials to be used in the performance of the contract will be at least the

amount required by applicable specifications or other contractual requirements and

“(B) estimate the percentage of the total material utilized for the performance of the contract which is recovered

materials.”;

(5) by amending subsection (d), to read as follows:

. “(d) Specifications.—All Federal agencies that have the responsibility for drafting or reviewing specifications for procurement items

procured by Federal agencies shall

“(1) as expeditiously as possible but in any event no later than

five years after the date of enactment of this Act, eliminate from

such specifications

“(A) any exclusion of recovered materials and

“(B) any requirement that items be manufactured from

virgin materials; and

“(2) within one year after the date of publication of applicable

guidelines under subsection (e), or as otherwise specified in such

guidelines, assure that such specifications require the use of

recovered materials to the maximum extent possible without

jeopardizing the intended end use of the item.”.

64
(6) in subsection (e), by deleting the second sentence and

inserting in lieu thereof the following: “Such guidelines shall

“(1) designate those items which are or can be produced with

recovered materials and whose procurement by procuring agencies will carry out the objectives of this section; and

“(2) set forth recommended practices with respect to the

procurement of recovered materials and items containing such

materials and with respect to certification by vendors of the

percentage of recovered materials used,

and shall provide information as to the availability, relative price,

and performance of such materials and items and where appropriate

shall recommend the level of recovered material to be contained in the procured product. The Administrator shall prepare final guidelines for at least three product categories, including paper, by May 1, 1981, and for two additional product categories, including construction materials, by September 30, 1982. In making the designation

under para^aph (1), the Administrator shall consider, but is not

limited in his considerations, to

“(A) the availability of such items;

“(B) the impact of the procurement of such items by procuring

agencies on the volume of solid waste which must be treated,

stored or disposed of; “(C) the economic and technological feasibility of producing

and using such items; and

" (D) other uses for such recovered materials.”. Sec. 23. Section 6004 of the Solid Waste Disposal Act is amended

by—

(1) inserting immediately after “an executive agency (as

defined in section 105 of title 5, United States Code)” in subsection (a)(1), “or any unit of the legislative branch of the Federal

Government”;

(2) inserting after “Each Executive agency” in subsection (a)(2), “or any unit of the legislative branch of the Federal Government”; and

(3) inserting after “The President” in subsection (aK4) “or the

Committee on House Administration of the House of Representatives and the Committee on Rules and Administration of the

Senate with regard to any unit of the legislative branch of the

Federal Government”.

“cooperation with the environmental protection agency

“Sec. 6003. (a) General Rule.—All Federal agencies shall assist

the Administrator in carrying out his functions under this Act and

shall promptly make available all requested information concerning

past or present Agency waste management practices and past or present Agency owned, leased, or operated solid or hazardous waste

facilities. This information shall be provided in such format as may

be determined by the Administrator.

“(b) Information Relating to Energy and Materials Conservation AND Recovery.—The Administrator shall collect, maintain, and

disseminate information concerning the market potential of energy

and materials recovered from solid waste, including materials obtained through source separation, and information concerning the

savings potential of conserving resources contributing to the waste

stream. The Administrator shall identify the regions in which the

increased substitution of such energy for energy derived from fossil fuels and other sources is most likely to be feasible, and , provide

information on the technical and economic aspects of developing

integrated resource conservation or recovery systems which provide

for the recovery of source-separated materials to be recycled or the

conservation of resources. The Administrator shall utilize the authorities of subsection (a) in carrying out this subsection.”.

Product

categories,

guidelines.

42 use 6964.

42 use 6963.

65
*r<> S.

APPENDIX B

\^'

I

66
STATE REPORTS

OCR # Title

NBS-6CR 81-308 Procurement of Products Containing

Recycled/Recovered Materials in the

State of Colorado

NBS-GCR-91-309 State of Florida: The Procurement of

Products Containing Recovered Materials

NBS-GCR 81-310 Procurement of Products Containing

Recovered Materials: A Study of State

of Michigan Practices

NBS-GCR 81-311 A Study of Resource and Energy

Conservation Practices in the Procurement

and Management of Commodities (Minnesota)

NBS-GCR 81-312 Procurement of Produces Containing

Recycled Materials in the State of

New Jersey

NBS-GCR 81-313 Procurement Practices in New York State

of Products Containing Recycled Materials

NBS-GCR 81-314 State of Washington: A Study of

Procurement of Products Containing

Recycled Materials

NBS-GCR 81-309

Supplement 1 An Analysis of the Procurement Policies

of: Dade County, The City of Miami,

The Dade County School System, Miami

Dade Community College

67
ir-'

t ;

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j

'ft?

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2 f.*'>7’'*-'’‘“*''

APPENDIX C

2^50^ To'-i- / v'- ' ’ ' '''

-•- - 4 '-',rv.

' >'v •• -. :> '

'

r

^'' 'i- I

<

vi’-.'i; .•••'
PROJECT REVIEW WORKSHOP

ATTENDEES

Keith Sherman

Energy Enterprises, N.W.

4632 Norcross Ct. , S.E.

Olympia, WA 98501

(206) 459-4296

George A. McElroy

Division of Purchase

and Property

135 West Hanover Street

Trenton, NJ 08625

(609) 984-4883

Thomas Galbraith

Division of Purchase

and Property

135 West Hanover Street

Trenton, NJ 08625

(609) 292-4797

S. Chris Wryzenski

Senior Specifications Writer

Energy Task Force

OGS Division of Standards

and Quality Control

37th Floor Tower,

Empire State Plaza

Albany, NY 12242

(518) 474-6703

Ron Hoffman

State Purchasing Division

216 General Administration

Building, AX-22

Olympia, WA 98502

(206) 753 0540

Paul Alexander

Legislative Council

State Capitol Building, Room 46

Denver, CO 80203

(303) 866-3521

Bert Luer

Resource Recovery Section

Department of Environmental Regulation

2600 Blairstone Road

Tallahassee, FL 32301

(904) 488-0300

Mark Eaton

State Services Building, Room 712

Denver, CO 80203

(303) 866-2289

Norma Cameron

Resource Recovery Office

Administration Building, Room 203

St. Paul, MN 55155

(612) 296-2397

Alice Turnwall

Senior Buyer

Procurement, State of Minnesota

112 Administration Building

St. Paul, MN 55155

(612) 296-2360

E. R. Roon

Division of Purchasing

1525 Sherman, Room 712

Denver, CO 80203

(303) 866-3267

Ray Moreau

Dept, of Environmental Regulation

Resource Recovery Section

2600 Blairstone Road

Tallahassee, FL 32301

(904) 488-0300

Darrell D. Perry

Council of State Governments

P. 0. Box 11910

Lexington, KY 40578

C606) 252-2291

Janice M. Kittel

MERRA

328 Executive Plaza

1200 6th Street

Detroit, MI 48226

(313) 964-5030

69
70
* IViational Bureau of Standards

P VA/aehinn^nn H P

« UNITED STATES DEPARTMENT OF COMMERCE

Washington, D.C. 2D234

October 2, 1979

Memorandum For The Record

From: Joseph G. Berke, Manag(

Resource Recovery Progi

Subject: Mandatory Procurement Policies Under

EPCA (PL 94-163) and RCRA (PL 94-580)

The purpose of this memo is to highlight the mandatory procurement

policies of the Energy Policy and Conservation Act (EPCA) PL 94-163 and

the Resource Conservation and Recovery Act (RCRA) PL 94-580. This

preliminary analysis will examine the overlaps and impacts of these Acts

on (1) State and local purchasing practices and (2) technical support

necessary to enable procuring agencies to meet the objectives of these

acts.

From the intent of both acts, the common nature of many products,

and the fact that State and local procurement officials are called upon

to fulfill the objectives of both acts, it is imperative that close

working relations be developed between and among State solid waste

offices. State Energy Offices, procurement agencies and industry.

Furthermore, in order to effectively carry out the mandates of the Acts,

the procurement agencies and their staff must be supported both technologically

and politically.

EPCA requires, under section 362C,3 that every proposed state ~ energy conservation plan, in order to be eligible for Federal assistance,

must include “ mandatory standards and policies relating to energy efficiency

to govern the procurement practices of such State and its political

subdivisions . " RCRA, in turn, requires via section 6002 that any procuring

agency".., shall procure items composed of the highest percentage of

recovered materials practicable consistent with maintaining a satisfactory

l evel of competition ." RCRA further defines, in section 1004, #17,

"procuring agency" as any Federal agency or any State agency or agency

of a political subdivision of a State which is using appropriated Federal

funds for such procurement, or any person contracting with such agency

with respect to work performed under such contract.

For those products that are of concern from both an energy and

.resource recovery viewpoint the entire public procurement process is

essentially dictated by Federal statute. To be more specific, a product

common to both acts (i.e., recycled oil, tires, paper) must be procured

on an energy efficiency/conservation basis under EPCA; in addition if

more than $10,000 of Federal funds are used cumulatively, the requirements

of RCRA become effective. EPCA, via section 383, provides further

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directives dealing with recycled oil. This section Is concerned with

the promotion of the use of recycled oil, reduction of environmental

hazards from waste oil, development of test procedures for determination

of substantial equivalency or re-refined or otherwise processed used oil

to new oils. This is particularly relevant to the preparation of procurement

specifications for this oil. Finally, this section also provides for

educating persons employed by Federal and state governments and

private sectors of the economy..." In RCRA, via section 5002, (c), (b),

the recycled oil problem is addressed by requiring agencies to use the

product as a recovered-material-derived fuel to the maximum extent

practicable. Once again, procurement plays a major role in the specification

and acquisition process for the customer agency.

The technological support required to carry out resource and energy

conserving procurements are discussed and provided for in the two acts.

RCRA, via section 5002, provides the mechanisms for State and lopal.

agencies to obtain information on materials recovered from waste. , this

section provides for development of specifications that "... shall

pertain to the physical and chemical properties and characteristics of

such materials with regard to their use in replacing virgin materials in

various industrial, commercial and governmental uses." This is the

basic information required if procurement must consider material substitution, replacement or recycling in products offered to public markets.

RCRA, via section 5003, provides for developing the economic

feasibilities, new uses for, and the locations of existing and potential

markets for recovered materials. Economics and market potential information

can provide the basis for changing previously restrictive purchasing

policies (i.e., low price vs. life cycle cost purchasing). Finally,

RCRA, via section 2003, provides on-site technological support via the

"Resource Conservation and Recovery Panels." These panels consist of

teams of personnel including Federal, State and local employees or contractors to provide State and local governments upon request with

technical assistance on solid waste management, resource recovery and

resource conservation. Procurement plays a major role in resource recovery

and conservation and thus becomes eligible for assistance. The services

of such teams shall be provided without charge to State and local

governments.

EPCA provides technical information on various products, test

methods and procedures as well as product labeling. Section 322 identifies

the coverage of products for initial attention. As an example, furnaces

under this section may eventually be burning refuse derived fuels and

thus provides potential overlap with RCRA. EPCA in section 323 provides

for the development of test procedures for operating costs, useful measures

of energy consumption and other data to assist consumers in making

purchasing decisions. Public procurement is a large "consumer group"

requiring similar information on how to most efficiently spend the

public dollar and at the same time conserve energy and resources. EPCA,

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in section 363, provides technical assistance to States, upon request in

a way similar to that of RCRA. For products common to both acts, any

technical assistance stemming from EPCA and RCRA should be coordinated.

Since the offering of products to the public markets is a voluntary

function on the part of industry, the product specifications, performance

factors, and procurement policies must be developed in close cooperation

with the manufacturing and supply sectors. EPCA and RCRA procurement

and technical support mandates lend themselves very well to some form of

continuing industry/government forum to address energy and resource

conservation through procurement.

73
NBS-n4A (REV. 2»6C) U.S. DEPT. OF COMM.

BIBLIOGRAPHIC DATA

SHEET (See instructions)

1 . PUBLICATION OR

REPORT NO.

NBSIR 81-2316

2. Performing Organ. Report NoJ 3. Publication Date

July 1981

4. TITLE AND SUBTITLE

PROCUREMENT OF PRODUCTS CONTAINING RECOVERED MATERIAL: A SUMMARY OF

ACTIVITIES IN SEVEN STATES

5. AUTHOR(S)

Joseph G. Berke and Catherine H. Hudson

6. PERFORMING ORGANIZATION (If joint or other than NBS, see instructions)

NATIONAL BUREAU OF STANDARDS

DEPARTMENT OF COMMERCE

WASHINGTON, D.C. 20234

7. Contract/Grant No.

8. Type of Report & Period Covered

9. SPONSORING ORGANIZATION NAME AND COMPLETE ADDRESS (Street, City, State, ZIP)

Office of Recycled Materials

National Bureau of Standards

Washington, DC 20234

10.

SUPPLEMENTARY NOTES

This report summarizes seven individual state reports on the procurement of

products containing recovered materials.

Document describes a computer program; SF-185, FIPS Software Summary, is attached.

11.

ABSTRACT (A 200-word or less factual summary of most significant information. If document includes a significant

bi bliography or literature survey, mention it here)

This report sunmarizes the major study carried out in seven states dealing

with the procurement of products containing recycled/recovered materials as specified in the Resource Conservation and Recovery Act (P.L. 94-580) and its

amendments (P.L. 96-482). The report lists current state activities, regulations,

statutes and policies, as well as technical, institutional and economic barriers

to the public procurement of recycled products. A list of recommendations and

suggested actions are also included. 12.

KEY WORDS (Six to twelve entries; alphabetical order; capitalize only proper names; and separate key words by semicolon s) Economic, institutional, technical barriers; procurement; purchasing;

recovered/recycled materials; resource recovery

13. AVAILABILITY 14. NO. OF

PRINTED PAGES

[yn Uni imited 75

[33] Fo'' Official Distribution. Do Not Release to NTIS

1 1 Order From Superintendent of Documents, U.S. Government Printing Office, Washington, D.C.

20402. 15. Price

1331 Order From National Technical Information Service (NTIS), Springfield, VA. 22161 $8.00

USCOMM-DC 6043-P80