This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

31841 

Vol. 83, No. 132 

Tuesday, July 10, 2018 

DEPARTMENT OF AGRICULTURE 

Office of Procurement and Property 

Management 

7 CFR Part 3201 

RIN 0599–AA27 

Designation of Product Categories for 

Federal Procurement 

AGENCY: Office of Procurement and 

Property Management, USDA. 

ACTION: Final rule. 

SUMMARY: The U.S. Department of 

Agriculture (USDA) is amending the 

Guidelines for Designating Biobased 

Products for Federal Procurement to add 

12 sections that designate product 

categories within which biobased 

products will be afforded Federal 

procurement preference by Federal 

agencies and their contractors. 

DATES: This rule is effective August 9, 

2018. 

FOR FURTHER INFORMATION CONTACT: 

Karen Zhang, USDA, Office of 

Procurement and Property Management, 

1400 Independence Ave. SW, 

Washington, DC 20250; email: 

biopreferred_support@amecfw.com; 

phone (202) 401–4747. Information 

regarding the Federal preferred 

procurement program (one part of the 

BioPreferred Program) is available on 

the internet at http://

www.biopreferred.gov. 

SUPPLEMENTARY INFORMATION: The 

information presented in this preamble 

is organized as follows: 

I. Authority 

II. Background 

III. Discussion of Public Comments 

IV. Summary of Changes 

V. Regulatory Information 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

B. Regulatory Flexibility Act (RFA) 

C. Executive Order 12630: Governmental 

Actions and Interference With 

Constitutionally Protected Property 

Rights 

D. Executive Order 12988: Civil Justice 

Reform 

E. Executive Order 13132: Federalism 

F. Unfunded Mandates Reform Act of 1995 

G. Executive Order 12372: 

Intergovernmental Review of Federal 

Programs 

H. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

I. Paperwork Reduction Act 

J. E-Government Act 

K. Congressional Review Act 

I. Authority 

These product categories are 

designated under the authority of 

section 9002 of the Farm Security and 

Rural Investment Act of 2002 (the 2002 

Farm Bill), as amended by the Food, 

Conservation, and Energy Act of 2008 

(the 2008 Farm Bill), and further 

amended by the Agricultural Act of 

2014 (the 2014 Farm Bill), 7 U.S.C. 

8102. (Section 9002 of the 2002 Farm 

Bill, as amended by the 2008 and the 

2014 Farm Bills, is referred to in this 

document as ‘‘section 9002’’.) 

II. Background 

As part of the BioPreferred Program, 

USDA published, on January 13, 2017, 

a proposed rule in the Federal Register 

(FR) for the purpose of designating a 

total of 12 product categories for the 

preferred procurement of biobased 

products by Federal agencies (referred 

to hereafter in this FR notice as the 

‘‘preferred procurement program’’). This 

proposed rule can be found at 82 FR 

4206. This rulemaking is referred to in 

this preamble as Round 11 (RIN 0599– 

AA24). 

The term ‘‘product category’’ is used 

as a generic term in the designation 

process to mean a grouping of specific 

products that perform a similar 

function. As originally finalized, the 

Guidelines included provisions for the 

designation of product categories that 

were composed of finished, consumer 

products such as mobile equipment 

hydraulic fluids, penetrating lubricants, 

or hand cleaners and sanitizers. 

The 2008 and 2014 Farm Bills 

directed USDA to expand the scope of 

the Guidelines to include the 

designation of product categories 

composed of intermediate ingredients 

and feedstock materials. Specifically, 

the 2008 Farm Bill stated that USDA 

shall ‘‘designate those intermediate 

ingredients and feedstocks that are or 

can be used to produce items that will 

be subject’’ to the Federal preferred 

procurement program. The term 

‘‘intermediate ingredient and feedstock’’ 

is defined in the Farm Bill as ‘‘a 

material or compound made in whole or 

in significant part from biological 

products, including renewable 

agricultural materials (including plant, 

animal, and marine materials) or 

forestry materials, that are subsequently 

used to make a more complex 

compound or product.’’ The term 

‘‘intermediates’’ is used in the titles of 

the product categories being designated 

today to distinguish these categories 

from the finished, consumer products 

previously designated by USDA. 

Although the Federal government does 

not typically purchase large quantities 

of intermediate ingredients and 

feedstock materials, designating such 

materials represents a means to identify 

and include finished products made 

from such designated materials in the 

Federal preferred procurement program. 

In the proposed rule, USDA proposed 

designating the following 12 product 

categories for the preferred procurement 

program: Intermediates—Plastic Resins; 

Intermediates—Chemicals; 

Intermediates—Paint and Coating 

Components; Intermediates—Textile 

Processing Materials; Intermediates— 

Foams; Intermediates—Fibers and 

Fabrics; Intermediates—Lubricant 

Components; Intermediates—Binders; 

Intermediates—Cleaner Components; 

Intermediates—Personal Care Product 

Components; Intermediates—Oils, Fats, 

and Waxes; and Intermediates—Rubber 

Materials. 

This final rule designates the 

proposed product categories within 

which biobased products will be 

afforded Federal procurement 

preference. USDA has determined that 

each of the product categories being 

designated under this rulemaking meets 

the necessary statutory requirements; 

that they are being produced with 

biobased products; and that their 

procurement will carry out the 

following objectives of section 9002: to 

improve demand for biobased products; 

to spur development of the industrial 

base through value-added agricultural 

processing and manufacturing in rural 

communities; and to enhance the 

Nation’s energy security by substituting 


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biobased products for products derived 

from imported oil and natural gas. 

When USDA designates by 

rulemaking a product category for 

preferred procurement under the 

BioPreferred Program, manufacturers of 

all products under the umbrella of that 

product category that meet the 

requirements to qualify for preferred 

procurement can claim that status for 

their products. To qualify for preferred 

procurement, a product must be within 

a designated product category and must 

contain at least the minimum biobased 

content established for the designated 

product category. With the designation 

of these specific product categories, 

USDA invites the manufacturers and 

vendors of qualifying products to 

provide information on the product, 

contacts, and performance testing for 

posting on its BioPreferred website, 

http://www.biopreferred.gov. Procuring 

agencies will be able to utilize this 

website as one tool to determine the 

availability of qualifying biobased 

products under a designated product 

category. Once USDA designates a 

product category, procuring agencies are 

required generally to purchase biobased 

products within the designated product 

category where the purchase price of the 

procurement product exceeds $10,000 

or where the quantity of such products 

or of functionally equivalent products 

purchased over the preceding fiscal year 

equaled $10,000 or more. 

Minimum Biobased Contents. The 

minimum biobased contents being 

established with this rulemaking are 

based on products for which USDA has 

biobased content test data. USDA 

obtains biobased content data in 

conjunction with product 

manufacturer’s applications for 

certification to use the USDA Certified 

Biobased Product label. Products that 

are certified to display the label must 

undergo biobased content testing by an 

independent, third party testing lab 

using ASTM D6866, ‘‘Standard Test 

Methods for Determining the Biobased 

Content of Solid, Liquid, and Gaseous 

Samples Using Radiocarbon Analysis’’. 

These test data become part of the 

BioPreferred Program database and their 

use in setting the minimum biobased 

content for designated product 

categories results in a more efficient 

process for both the Program and 

manufacturers of products within the 

product categories. 

Overlap with EPA’s Comprehensive 

Procurement Guideline program for 

recovered content products under the 

Resource Conservation and Recovery 

Act (RCRA) Section 6002. Some of the 

products that are within biobased 

product categories designated for 

Federal preferred procurement under 

this program may also be within 

categories the Environmental Protection 

Agency (EPA) has designated under the 

EPA’s Comprehensive Procurement 

Guideline (CPG) for products containing 

recovered (or recycled) materials. 

Because this rule designates 

intermediate ingredient product 

categories rather than categories of 

finished, consumer-use products, USDA 

does not believe that there is a direct 

overlap between these categories and 

CPG categories. However, if such an 

overlap situation is discovered, USDA is 

asking manufacturers of qualifying 

biobased products to make additional 

product and performance information 

available to Federal agencies conducting 

market research to assist them in 

determining whether the biobased 

products in question are, or are not, the 

same products for the same uses as the 

recovered content products. 

Federal Government Purchase of 

Sustainable Products. The Federal 

government’s sustainable purchasing 

program includes the following three 

mandatory preference programs for 

designated products: the BioPreferred 

Program, the EPA’s Comprehensive 

Procurement Guideline for products 

containing recovered materials, and the 

Environmentally Preferable Purchasing 

program. 

Other Preferred Procurement 

Programs. Federal procurement officials 

should also note that many biobased 

products may be available for purchase 

by Federal agencies through the 

AbilityOne Program (formerly known as 

the Javits-Wagner-O’Day (JWOD) 

program). Under this program, members 

of organizations including the National 

Industries for the Blind (NIB) and 

SourceAmerica (formerly known as the 

National Industries for the Severely 

Handicapped) offer products and 

services for preferred procurement by 

Federal agencies. A search of the 

AbilityOne Program’s online catalog 

(www.abilityone.gov) indicated that the 

types of intermediate ingredient product 

categories being designated in this final 

rule are not available through the 

AbilityOne Program. USDA notes, 

however, that if such materials are 

offered at some point in the future, their 

procurement through the AbilityOne 

Program would further the objectives of 

both the AbilityOne Program and the 

Federal preferred procurement program. 

Outreach. To augment its own 

research, USDA consults with industry 

and Federal stakeholders to the Federal 

preferred procurement program during 

the development of the rulemaking 

packages for the designation of product 

categories. USDA consults with 

stakeholders to gather information used 

in determining the order of product 

category designation and in identifying: 

Manufacturers producing and marketing 

products that are categorized within a 

product category being designated; 

performance standards used by Federal 

agencies evaluating products to be 

procured; and warranty information 

used by manufacturers of end user 

equipment and other products with 

regard to biobased products. 

III. Discussion of Public Comments 

USDA solicited comments on the 

proposed rule for 90 days ending on 

April 13, 2017. USDA received eight 

comments by that date. Four of the 

comments were from manufacturers of 

biobased products, and four were from 

trade associations. The comments are 

presented below, along with USDA’s 

responses, and are shown under the 

product categories to which they apply. 

General Process Comments 

Comment: One commenter believes 

that the scope of the proposed 

intermediate categories is too broad and 

that the proposed categories are too 

widely defined. The commenter 

recommends categorizing intermediates 

based on functional use descriptions. 

Further, the commenter notes that by 

defining intermediates according to 

their function in finished products, 

USDA can refine the minimum percent 

biobased content required for each 

group. 

Response: USDA agrees that the scope 

of many of the proposed intermediate 

ingredient product categories is broad. 

That is by design. There were, however, 

several factors that had to be considered 

in creating the product categories. 

USDA first considered the primary 

rationale for the designation of these 

intermediate ingredients. Section 9002 

directs USDA to designate intermediate 

ingredients and also to designate 

finished products made from those 

intermediate ingredients. The 

designation of intermediate ingredients 

as proposed was intended to facilitate 

the future designation of the finished 

products that are made from the 

intermediate ingredients. USDA 

believes that the designation of finished 

products made from intermediate 

ingredients will provide a significant 

boost in the market for these products. 

The Federal government is not expected 

to purchase significant quantities of 

intermediate materials even after they 

are designated for the preferred 

procurement. 

USDA also had to consider the 

potentially conflicting goals of keeping 

the proposed number of intermediate 


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ingredient product categories reasonable 

while creating a mechanism for the 

subsequent designation of as many 

finished product categories as possible. 

The decision was made that one way to 

accomplish this was to define many of 

the intermediate ingredient product 

categories broadly. One example of this 

is the proposed category of 

‘‘intermediate ingredients—plastic 

resins.’’ There are numerous types of 

biobased plastic resins either already in 

use or under development. These resins 

are then used to make a vast number of 

biobased plastic finished products. 

USDA chose to propose a product 

category that included essentially all 

plastic resins to be as inclusive as 

possible. 

Another significant factor that 

affected USDA’s decision-making when 

creating the intermediate ingredient 

product categories was the availability 

of product data. USDA created more 

specific product categories where data 

were available to support creating those 

categories. For example, USDA had data 

supporting the designation of categories 

specifically for biobased ingredients that 

are used in the manufacturing of 

finished products in the textiles, 

lubricants, cleaners, and personal care 

industries. Thus, the decision was made 

to go with a broad definition in hopes 

that most, if not all, biobased chemicals 

that are used as intermediate ingredients 

would be covered. 

Finally, USDA points out that the 

BioPreferred Program has traditionally 

created product categories that are 

defined by their function and intends to 

continue to do so when creating product 

categories for the finished products that 

are made from the intermediate 

ingredients being designated in this 

rulemaking. USDA has taken the 

approach that for the designation of 

intermediate ingredients, however, the 

designation of broadly defined 

categories is more reasonable and more 

inclusive than attempting to create a 

very large number of function-specific 

categories. 

Comment: One commenter 

recommends that a validation study be 

performed to better understand the 

ranges of inaccuracies of the test 

method, ASTM D6866, across a number 

of intermediates and products. 

Response: USDA relies on ASTM and 

the relevant stakeholder committee to 

confirm the validity of the test method. 

ASTM D6866 underwent a review and 

revision during 2016, and USDA is 

confident that the method yields results 

that are reliable. 

Comment: One commenter supports 

the designation of intermediate product 

categories and encourages USDA to 

develop a more efficient mechanism for 

adding future new product categories. 

The commenter acknowledges that the 

Federal government may not acquire 

significant amounts of biobased 

intermediates, but the commenter 

believes that having product categories 

that cover renewable chemicals used in 

final products allows for greater 

flexibility in the acquisition of biobased 

products and easier identification of 

biobased products that would qualify as 

biobased under the Program. 

Further, the commenter notes that the 

development of biobased products and 

renewable chemicals is occurring at a 

rapid pace. Thus, the commenter 

encourages USDA to explore 

opportunities to streamline the process 

of designating new product categories. 

Response: USDA appreciates the 

commenter’s support for the proposed 

designation of intermediate ingredient 

product categories. USDA agrees that 

innovation is constantly occurring in 

the biobased products industry; the 

development of these biobased 

intermediate ingredients, and the 

products made from them, is 

progressing rapidly. The process of 

designating new product categories is 

one that USDA is constantly seeking to 

improve. USDA will continue to 

evaluate changes to the Program that 

have the potential to streamline the 

process for designating product 

categories. 

Comment: One commenter supports 

the purpose and implementation of the 

USDA BioPreferred Program and 

acknowledges the challenge of 

identifying the wide range of biobased 

intermediate ingredients and feedstock 

materials. The commenter encourages 

USDA to carefully review the technical 

information it receives regarding 

finished products that are being made 

from these intermediates or feedstocks. 

The commenter believes that after 

reviewing this technical information, 

USDA may want to consider adjusting 

the definitions, setting subcategories, or 

adjusting the minimum biobased 

content requirements for the twelve 

proposed intermediates categories. 

The commenter also supports the use 

of subcategories at the finished product 

level and not at the intermediate 

ingredient or feedstock material level. 

Further, the commenter believes USDA 

should consider the need to create 

subcategories to allow for variations in 

the minimum biobased content of 

different end use products. When 

setting the minimum biobased content 

for finished products, the commenter 

encourages USDA to verify that there 

are products within a given category or 

subcategory that are commercially 

available. 

The commenter believes that the 

designation of intermediate categories 

will have a positive impact on many 

small businesses that are now using or 

would like to use biobased materials in 

their finished products. 

The commenter also believes that the 

designation of intermediate ingredients 

and feedstocks will allow small 

businesses easy access to useable 

information on the types and categories 

of biobased materials that are available 

for use in finished products. The 

commenter states that the use of 

biobased materials is one way for small 

businesses to distinguish themselves in 

both the government and private sector 

marketplaces. 

The commenter also supports and 

encourages USDA to continue and 

expand outreach efforts as stated in the 

Federal Register. 

Response: USDA thanks the 

commenter for their support of the 

BioPreferred Program and for their 

suggestions on technical considerations 

such as revising the definitions, creating 

subcategories, and adjusting the 

minimum biobased contents of the 

intermediate ingredient product 

categories. USDA is aware that the 

information used to support the 

designation of these intermediate 

ingredient product categories is often a 

small sample of the universe of 

knowledge related to a specific biobased 

technology or material. As additional 

information becomes available, USDA 

will evaluate the need to revise or adjust 

the technical components of the 

rulemaking (such as definitions, 

subcategories, and minimum biobased 

content requirements). If such revisions 

or adjustments are found to be 

warranted, USDA will undertake a new 

rulemaking to amend the Guidelines as 

needed. In the case of upcoming 

rulemakings to designate finished 

products, USDA will continue to gather 

and evaluate technical information from 

the biobased products industry to 

support the decisions that go into the 

rulemaking. 

USDA appreciates the support for the 

approach of defining product categories 

at the finished product level as opposed 

to the intermediate ingredient level. As 

discussed earlier, USDA believes that 

broad definitions of the intermediate 

ingredient product categories and, 

subsequently, more specific functional 

definitions at the finished product 

category level is a reasonable approach. 

USDA also appreciates the 

commenter’s statements regarding the 

positive impact of the BioPreferred 


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Program and biobased products on the 

industry’s small businesses. 

Intermediates—Plastic Resins 

Comment: One commenter suggests 

that the proposed definition be 

amended to include polymers. 

Response: Although the name of the 

product category was not changed, 

USDA has revised the proposed 

definition of this product category to 

include the term ‘‘polymers.’’ 

Comment: One commenter supports 

designating the proposed 

intermediates—plastic resins category. 

The commenter believes that the 

proposal to certify intermediates has the 

potential to streamline the certification 

process for future finished products. 

Response: USDA thanks the 

commenter for their support of the 

proposed designation of the 

intermediate ingredients product 

categories. 

Comment: One commenter believes 

the minimum biobased content should 

be set at 17%. The commenter states 

that there are commercial plastic films 

available that contain 20% biobased 

content, and these films are stronger 

than films made from petro-based 

resins. The commenter believes that 

setting the minimum biobased content 

at 17% could have a significant positive 

impact by encouraging more recycling 

of films and bags. 

Response: USDA did not revise the 

proposed minimum biobased content 

for this product category. As discussed 

in the Preamble to the proposed rule, 

USDA has data from over 60 

manufacturers who make about 150 

biobased plastic resins. These resins are 

used to make a wide variety of finished 

products. The biobased contents of the 

resins in the database range from 25 

percent to 100 percent. USDA believes 

that setting the minimum biobased 

content requirement for this product 

category at 22 percent is reasonable. 

USDA also points out that the product 

mentioned by the commenter (plastic 

film) is already included in the 

designated product category ‘‘Films’’ 

found in § 3201.27. The Films product 

category includes subcategories for 

semi-durable films and non-durable 

films and the minimum biobased 

content requirements are 45 percent and 

85 percent, respectively. 

Intermediates—Chemicals 

Comment: One commenter states that 

the proposed intermediates—chemicals 

category is too widely defined as it 

includes reactants, building block 

chemicals, secondary chemicals, and 

chemicals with specific functional 

properties. Moreover, the commenter 

believes that the proposed minimum of 

22 percent gives no incentive for 

chemical producers to increase biobased 

content. The commenter recommends 

that USDA instead categorize by 

function, which will allow for increased 

minimums for several functional 

classes. 

Response: As discussed in previous 

responses, USDA believes that creating 

more specific definitions based on the 

product’s function is more appropriate 

for the finished products made from 

intermediate ingredients. USDA also 

believes that the goal of including as 

many renewable chemicals in the 

Program as possible is best met by being 

more inclusive when designating the 

intermediate ingredient product 

categories. USDA also believes that for 

the broadly defined product category 

setting the minimum biobased content 

at the proposed 22 percent level is 

appropriate and that competition among 

manufacturers will tend to drive the 

actual biobased contents higher than the 

required minimum. Maintaining the 

level at 22 percent will also allow many 

chemical producers to participate in the 

Program while they make technological 

improvements that increase the 

biobased content rather than excluding 

them from the Program as they strive for 

improvement. USDA also believes that 

it is appropriate to set more specific 

minimum biobased content 

requirements at the finished product 

level. The consumers of finished 

products are expected to be the 

motivating force that encourages 

manufacturers to increase the biobased 

content of the products they make and 

hope to sell. USDA believes that the 

most reasonable approach is to include 

a wide range of intermediate ingredients 

in the Program and then let the demand 

for finished products with high 

biobased contents encourage advances 

in intermediate ingredients. 

Comment: One commenter suggests 

that the proposed definition be 

amended to include viscosity reducers, 

rheology modifiers, adhesion agents, 

polyols, and polymers. 

Response: The definition, as 

proposed, was not intended to be an allinclusive list. USDA agrees with the 

commenter that the materials they listed 

are reasonable additions to the proposed 

definition and has revised the final 

definition to include them. However, 

USDA points out that the list is still not 

considered to be all-inclusive. It is 

likely that biobased intermediate 

ingredients exist that are not specifically 

included in the definition and it is 

USDA’s intention that they be eligible 

for preferred procurement under the 

Program. 

Intermediates—Paint and Coating 

Components 

Comment: One commenter suggests 

that the proposed definition be 

amended to include humectants/open 

time additives, coalescent alkyd latex 

resins, and polymers. 

Response: The definition, as 

proposed, included examples of the 

types of components intended to be 

covered by the product category and 

was not intended to be an all-inclusive 

list. USDA agrees with the commenter 

that the materials they listed are 

reasonable additions to the proposed 

definition and has revised the final 

definition to include them. However, 

USDA points out that the list is still not 

considered to be all-inclusive. It is 

likely that biobased intermediate 

ingredients exist that are not specifically 

included in the definition and it is 

USDA’s intention that they be eligible 

for preferred procurement under the 

Program. 

Intermediates—Foams 

Comment: One commenter states that 

foams are used in a wide variety of 

products, and as such, there is a wide 

variety of foams with biobased contents 

that have been developed to meet the 

performance needs of the foam 

containing products. The commenter 

believes that the proposed 

intermediates—foams category is one for 

which USDA should establish 

subcategories based on the types of end 

uses and corresponding performance 

requirements of the foams. Further, the 

commenter believes that USDA should 

set minimum biobased contents for 

these subcategories, noting that the 

proposed 22% minimum for 

intermediates—foams will be too high 

for some applications. 

Response: USDA thanks the 

commenter for their input regarding this 

proposed product category. USDA also 

agrees that this product category 

certainly includes a wide variety of 

products used to make a large number 

of finished products. As the commenter 

pointed out, USDA requested 

information from intermediate 

ingredient manufacturers on finished 

products made from their intermediates. 

Unfortunately, for the product category 

intermediates-foams, no additional 

information was provided. USDA is, 

therefore, finalizing this product 

category as proposed; however, USDA is 

continuing the process of gathering data 

to support the upcoming designation of 

finished products make from these 

designated intermediate ingredients. As 

additional product data are obtained 

and evaluated, USDA will consider 


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revisions or adjustments that may need 

to be made in this (and all other) 

intermediate ingredient product 

categories. Such revisions could include 

creating subcategories, clarifying 

changes to the definitions, or 

adjustments to the required minimum 

biobased content. 

Intermediates—Binders 

Comment: One commenter suggests 

that the proposed definition be 

amended to include ‘‘binders are 

generally polymers or polymer 

precursors (such as epoxies) and 

include the polymeric materials used to 

formulate coatings, adhesives, sealants 

and elastomers.’’ The commenter also 

believes that the proposed definition 

should include adhesives and glues that 

are finished products. 

Response: USDA has revised the 

proposed definition to include the 

phrase recommended by the 

commenter. As discussed earlier, USDA 

agrees that including examples in the 

definitions may provide more clarity but 

cautions that such examples are not 

intended to be all-inclusive or to restrict 

the definition so that it only applies to 

those examples. 

USDA disagrees with the commenter’s 

suggestion to revise the proposed 

definition so that it includes finished 

product adhesives and glues. These 

types of products will be included in 

the upcoming rulemaking that 

designates finished products made from 

designated intermediate ingredients. 

Intermediates—Cleaner Components 

Comment: One commenter notes that 

the proposed intermediates—cleaner 

components category includes a wide 

range of substances that perform very 

different functions in cleaning products. 

The commenter further states that this 

definition does not include an 

exhaustive list of cleaning ingredients. 

Response: As discussed in previous 

responses, USDA has intentionally 

established intermediate ingredient 

product categories that are very broad in 

scope. The commenter is also correct 

that the definitions do not attempt to 

include exhaustive lists of materials that 

are covered by the definition. Examples 

of the types of materials that fit within 

the definition are provided in most 

cases. Because of the continuing 

technological advances within the 

biobased products industry, USDA does 

not believe it is reasonable to attempt to 

create exhaustive or all-inclusive lists of 

materials that could result in the 

exclusion of materials still under 

development. 

Intermediates—Personal Care Product 

Components 

Comment: One commenter states that 

the personal care product industry and 

the cleaning industry use many of the 

same ingredients. Thus, the commenter 

believes that the proposed 

intermediates—personal care product 

components category overlaps with the 

proposed intermediates—cleaner 

components category and is redundant. 

Response: USDA agrees that there is 

a strong probability that some 

intermediate ingredients may be used in 

both the personal care product 

components and the cleaner 

components categories. Because many 

of the intermediate ingredient materials 

being designated are very basic, multipurpose chemicals, their use in multiple 

finished product categories is expected. 

There are also expected to be some 

ingredients that are unique to one 

category or the other. USDA believes 

that creating these intermediate 

ingredient product categories (and 

others with potential overlapping 

materials) will ultimately make the 

process of cataloging product 

information simpler for the BioPreferred 

Program and will make it easier for 

manufacturers of finished products, 

Federal procuring officials, and the 

consuming public, to identify and locate 

biobased products that are available to 

them. 

Intermediates—Oils, Fats and Waxes 

Comment: One commenter notes that 

the proposed minimum biobased 

content is lower than the content found 

naturally in oils, fats, and waxes. 

Response: USDA evaluated data on 24 

intermediate ingredient materials within 

this category. These materials ranged in 

biobased content from 68 percent to 100 

percent. The proposed 65 percent 

minimum biobased content was based 

on the sample with the lowest biobased 

content. Raw materials that are 100 

percent fats and oils derived from 

animals and plants would be expected 

to be essentially 100 percent biobased. 

However, it is likely that many of the 

products that would fall into this 

category have been modified, blended, 

or in some way altered in the process of 

extracting or refining them. It is also 

likely that the commercial products that 

are produced within this category are a 

combination of ingredients, not all of 

which may be 100 percent biobased. 

Because of these possibilities, USDA has 

not changed the minimum biobased 

content proposed for this product 

category. 

Comment: One commenter suggests 

that the proposed definition be 

amended to include proteins and 

carbohydrates. 

Response: USDA has not revised the 

proposed definition because the term 

‘‘oils, fats, and waxes’’ is believed to be 

sufficiently broad to cover the materials 

that are expected to be found in this 

product category. Also, proteins and 

carbohydrates are, generally, chemically 

different from oils, fats, and waxes. Oils, 

fats, and waxes are typically made up of 

long carbon chains where proteins and 

carbohydrates have a lower carbon to 

non-carbon molecule ratio. USDA 

believes that the types of intermediate 

ingredient materials derived from 

proteins and carbohydrates are more 

likely to be included in the 

intermediate—chemicals product 

category. 

New Categories 

Comment: One commenter suggests 

designating a product category for ‘‘can 

liners.’’ The commenter notes that the 

Federal government uses a large number 

of can liners and that can liners are 

typically made from non-biobased 

materials. Thus, the commenter believes 

that there would be significant benefit 

in designating a ‘‘can liners’’ category in 

the next round. 

Another commenter believes that it is 

important to have a product category 

designation for FSC code 4253 

Hazardous Material Spill Containment 

and Clean-up Equipment. 

Response: USDA thanks the 

commenters for their interest in the 

BioPreferred Program and their 

suggestions regarding possible new 

product categories. The product 

categories suggested by these 

commenters will be evaluated along 

with the potential categories of finished 

products made from designated 

intermediate ingredients. USDA plans to 

propose a rulemaking action that will 

identify those categories selected for 

possible designation and the public will 

be invited to submit comments. 

IV. Summary of Changes 

After consideration of the public 

comments received in response to the 

proposed rule, USDA made several 

changes in the final rule. These changes 

are summarized below. 

In the final rule, USDA has revised 

the definition of the categories 

intermediates—plastic resins, 

intermediates—chemicals, 

intermediates—paint and coating 

components, and intermediates— 

binders as explained in the following 

paragraph. These changes were made to 

clarify or add examples of intermediates 

that can be included in each of these 

categories. 


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The definition for the intermediate— 

plastic resins category has been revised 

to include the term ‘‘polymers.’’ The 

definition for the intermediates— 

chemicals category has been revised to 

list additional materials such as 

viscosity reducers, rheology modifiers, 

adhesion agents, polyols, and polymers. 

Additional examples of paint and 

coating components, such as 

humectants, open time additives, and 

polymers, have been added to the 

definition of the intermediates—paint 

and coating components category. The 

intermediates—binders category 

definition has been revised to expand 

on the types of chemicals that typically 

make up binders. Additionally, the 

definition has been expanded to include 

examples of materials that binders can 

be used to formulate. The definition for 

this category has been revised to include 

the phrase ‘‘binders are generally 

polymers or polymer precursors (such 

as epoxies) and include the polymeric 

materials used to formulate coatings, 

adhesives, sealants and elastomers.’’ 

V. Regulatory Information 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

Executive Order 12866, as 

supplemented by Executive Order 

13563, requires agencies to determine 

whether a regulatory action is 

‘‘significant.’’ The Order defines a 

‘‘significant regulatory action’’ as one 

that is likely to result in a rule that may: 

‘‘(1) Have an annual effect on the 

economy of $100 million or more or 

adversely affect, in a material way, the 

economy, a sector of the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 

State, local, or tribal governments or 

communities; (2) Create a serious 

inconsistency or otherwise interfere 

with an action taken or planned by 

another agency; (3) Materially alter the 

budgetary impact of entitlements, 

grants, user fees, or loan programs or the 

rights and obligations of recipients 

thereof; or (4) Raise novel legal or policy 

issues arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in this Executive Order.’’ 

This final rule has been determined 

by the Office of Management and 

Budget to be not significant for purposes 

of Executive Order 12866. We are not 

able to quantify the annual economic 

effect associated with this final rule. As 

discussed in the preamble to the 

proposed rulemaking, USDA made 

extensive efforts to obtain information 

on the Federal agencies’ usage within 

the 12 designated product categories. 

These efforts were largely unsuccessful. 

Therefore, attempts to determine the 

economic impacts of this final rule 

would require estimation of the 

anticipated market penetration of 

biobased products based upon many 

assumptions. In addition, because 

agencies have the option of not 

purchasing biobased products within 

designated product categories if price is 

‘‘unreasonable,’’ the product is not 

readily available, or the product does 

not demonstrate necessary performance 

characteristics, certain assumptions may 

not be valid. While facing these 

quantitative challenges, USDA relied 

upon a qualitative assessment to 

determine the impacts of this final rule. 

Consideration was also given to the fact 

that agencies may choose not to procure 

designated items due to unreasonable 

price. 

1. Summary of Impacts 

This final rule is expected to have 

both positive and negative impacts to 

individual businesses, including small 

businesses. USDA anticipates that the 

biobased preferred procurement 

program will provide additional 

opportunities for businesses and 

manufacturers to begin supplying 

products under the designated biobased 

product categories to Federal agencies 

and their contractors. However, other 

businesses and manufacturers that 

supply only non-qualifying products 

and do not offer biobased alternatives 

may experience a decrease in demand 

from Federal agencies and their 

contractors. USDA is unable to 

determine the number of businesses, 

including small businesses that may be 

adversely affected by this final rule. The 

final rule, however, will not affect 

existing purchase orders, nor will it 

preclude businesses from modifying 

their product lines to meet new 

requirements for designated biobased 

products. Because the extent to which 

procuring agencies will find the 

performance, availability and/or price of 

biobased products acceptable is 

unknown, it is impossible to quantify 

the actual economic effect of the rule. 

2. Benefits of the Final Rule 

The designation of these 12 product 

categories provides the benefits outlined 

in the objectives of section 9002: to 

increase domestic demand for many 

agricultural commodities that can serve 

as feedstocks for production of biobased 

products, and to spur development of 

the industrial base through value-added 

agricultural processing and 

manufacturing in rural communities. On 

a national and regional level, this final 

rule can result in expanding and 

strengthening markets for biobased 

materials used in these product 

categories. 

3. Costs of the Final Rule 

Like the benefits, the costs of this 

final rule have not been quantified. Two 

types of costs are involved: Costs to 

producers of products that will compete 

with the preferred products and costs to 

Federal agencies to provide 

procurement preference for the 

preferred products. Producers of 

competing products may face a decrease 

in demand for their products to the 

extent Federal agencies refrain from 

purchasing their products. However, it 

is not known to what extent this may 

occur. Pre-award procurement costs for 

Federal agencies may rise minimally as 

the contracting officials conduct market 

research to evaluate the performance, 

availability and price reasonableness of 

preferred products before making a 

purchase. 

B. Regulatory Flexibility Act (RFA) 

The RFA, 5 U.S.C. 601–602, generally 

requires an agency to prepare a 

regulatory flexibility analysis of any rule 

subject to notice and comment 

rulemaking requirements under the 

Administrative Procedure Act or any 

other statute unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. Small entities 

include small businesses, small 

organizations, and small governmental 

jurisdictions. 

USDA evaluated the potential impacts 

of its designation of these product 

categories to determine whether its 

actions would have a significant impact 

on a substantial number of small 

entities. Because the preferred 

procurement program established under 

section 9002 applies only to Federal 

agencies and their contractors, small 

governmental (city, county, etc.) 

agencies are not affected. Thus, the final 

rule will not have a significant 

economic impact on small governmental 

jurisdictions. 

USDA anticipates that this program 

will affect entities, both large and small, 

that manufacture or sell biobased 

products. For example, the designation 

of product categories for preferred 

procurement will provide additional 

opportunities for businesses to 

manufacture and sell biobased products 

to Federal agencies and their 

contractors. Similar opportunities will 

be provided for entities that supply 

biobased materials to manufacturers. 

The intent of section 9002 is largely 

to stimulate the production of new 


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biobased products and to energize 

emerging markets for those products. 

Because the program is focused on 

innovative developments within the 

biobased products industry, which is 

still in its infancy, it is unknown how 

many businesses will ultimately be 

affected. While USDA has no data on 

the number of small businesses that may 

choose to develop and market biobased 

products within the product categories 

designated by this rulemaking, the 

number is expected to be small because 

this industry is still materializing. As 

such, USDA anticipates that only a 

small percentage of all manufacturers, 

large or small, are expected to develop 

and market biobased products. Thus, 

the number of small businesses 

manufacturing biobased products 

affected by this rulemaking is not 

expected to be substantial. 

The Federal preferred procurement 

program may decrease opportunities for 

businesses that manufacture or sell nonbiobased products or provide 

components for the manufacturing of 

such products. Most manufacturers of 

non-biobased products within the 

product categories being designated for 

Federal preferred procurement in this 

rule are expected to be included under 

the following NAICS codes: 324191 

(petroleum lubricating oil and grease 

manufacturing), 325320 (pesticide and 

other agricultural chemicals 

manufacturing), 325411 (medicinal and 

botanical manufacturing), 325412 

(pharmaceutical preparation 

manufacturing), 325510 (paint and 

coating manufacturing), 325612 (polish 

and other sanitation goods 

manufacturing), and 325620 (toilet 

preparation manufacturing). USDA 

obtained information on these seven 

NAICS categories from the U.S. Census 

Bureau’s Economic Census database. 

USDA found that the Economic Census 

reports about 4,756 companies within 

these 7 NAICS categories and that these 

companies own a total of about 5,374 

establishments. Thus, the average 

number of establishments per company 

is about 1.13. The Census data also 

reported that of the 5,374 individual 

establishments, about 5,228 (97.3 

percent) have fewer than 500 

employees. USDA also found that the 

overall average number of employees 

per company among these industries is 

about 92 and that the pharmaceutical 

preparation manufacturing segment 

(with an average of about 250) is the 

only segment reporting an average of 

more than 100 employees per company. 

Thus, nearly all of the businesses meet 

the Small Business Administration’s 

definition of a small business (less than 

500 employees, in most NAICS 

categories). 

USDA does not have data on the 

potential adverse impacts on 

manufacturers of non-biobased products 

within the product categories being 

designated, but believes that the impact 

will not be significant. Most of the 

product categories being designated in 

this rulemaking are not typical 

consumer products widely used by the 

general public and by industrial/ 

commercial establishments that are not 

subject to this rulemaking. Thus, USDA 

believes that the number of small 

businesses manufacturing non-biobased 

products within the product categories 

being designated and selling significant 

quantities of those products to 

government agencies affected by this 

rulemaking will be relatively low. Also, 

this final rule will not affect existing 

purchase orders and it will not preclude 

procuring agencies from continuing to 

purchase non-biobased products when 

biobased products do not meet the 

availability, performance, or reasonable 

price criteria. This final rule will also 

not preclude businesses from modifying 

their product lines to meet new 

specifications or solicitation 

requirements for these products 

containing biobased materials. 

After considering the economic 

impacts of this final rule on small 

entities, USDA certifies that this action 

will not have a significant economic 

impact on a substantial number of small 

entities. 

While not a factor relevant to 

determining whether the final rule will 

have a significant impact for RFA 

purposes, USDA has concluded that the 

effect of the rule will be to provide 

positive opportunities to businesses 

engaged in the manufacture of these 

biobased products. Purchase and use of 

these biobased products by procuring 

agencies increase demand for these 

products and result in private sector 

development of new technologies, 

creating business and employment 

opportunities that enhance local, 

regional, and national economies. 

C. Executive Order 12630: 

Governmental Actions and Interference 

With Constitutionally Protected Property 

Rights 

This final rule has been reviewed in 

accordance with Executive Order 12630, 

Governmental Actions and Interference 

with Constitutionally Protected Property 

Rights, and does not contain policies 

that would have implications for these 

rights. 

D. Executive Order 12988: Civil Justice 

Reform 

This final rule has been reviewed in 

accordance with Executive Order 12988, 

Civil Justice Reform. This rule does not 

preempt State or local laws, is not 

intended to have retroactive effect, and 

does not involve administrative appeals. 

E. Executive Order 13132: Federalism 

This final rule does not have 

sufficient federalism implications to 

warrant the preparation of a Federalism 

Assessment. Provisions of this final rule 

will not have a substantial direct effect 

on States or their political subdivisions 

or on the distribution of power and 

responsibilities among the various 

government levels. 

F. Unfunded Mandates Reform Act of 

1995 

This final rule contains no Federal 

mandates under the regulatory 

provisions of Title II of the Unfunded 

Mandates Reform Act of 1995 (UMRA), 

2 U.S.C. 1531–1538, for State, local, and 

tribal governments, or the private sector. 

Therefore, a statement under section 

202 of UMRA is not required. 

G. Executive Order 12372: 

Intergovernmental Review of Federal 

Programs 

For the reasons set forth in the Final 

Rule Related Notice for 7 CFR part 3015, 

subpart V (48 FR 29115, June 24, 1983), 

this program is excluded from the scope 

of Executive Order 12372, which 

requires intergovernmental consultation 

with State and local officials. This 

program does not directly affect State 

and local governments. 

H. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

This final rule does not significantly 

or uniquely affect ‘‘one or more Indian 

tribes . . . the relationship between the 

Federal Government and Indian tribes, 

or . . . the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes.’’ Thus, 

no further action is required under 

Executive Order 13175. 

I. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

through 3520), the information 

collection under this final rule is 

currently approved under OMB control 

number 0503–0011. 

J. E-Government Act Compliance 

USDA is committed to compliance 

with the E-Government Act, which 

requires Government agencies, in 


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general, to provide the public the option 

of submitting information or transacting 

business electronically to the maximum 

extent possible. USDA allows for 

posting information voluntarily 

submitted by manufacturers or vendors 

on the products they intend to offer for 

preferred procurement under each 

designated product category at http://

www.biopreferred.gov. For information 

pertinent to E-Government Act 

compliance related to this rule, please 

contact Karen Zhang at (202) 401–4747. 

K. Congressional Review Act 

The Congressional Review Act, 5 

U.S.C. 801 et seq., as added by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996, generally provides 

that before a rule may take effect, the 

agency promulgating the rule must 

submit a rule report, that includes a 

copy of the rule, to each House of the 

Congress and to the Comptroller General 

of the United States. USDA has 

submitted a report containing this rule 

and other required information to the 

U.S. Senate, the U.S. House of 

Representatives, and the Comptroller 

General of the United States prior to 

publication of the rule in the Federal 

Register. 

List of Subjects in 7 CFR Part 3201 

Biobased products, Procurement. 

For the reasons stated in the 

preamble, the Department of Agriculture 

is amending 7 CFR chapter XXXII as 

follows: 

CHAPTER XXXII—OFFICE OF 

PROCUREMENT AND PROPERTY 

MANAGEMENT 

PART 3201—GUIDELINES FOR 

DESIGNATING BIOBASED PRODUCTS 

FOR FEDERAL PROCUREMENT 

■ 1. The authority citation for part 3201 

continues to read as follows: 

Authority: 7 U.S.C. 8102. 

■ 2. Add §§ 3201.108 through 3201.119 

to subpart B to read as follows: 

Sec. 

3201.108 Intermediates—Plastic Resins. 

3201.109 Intermediates—Chemicals. 

3201.110 Intermediates—Paint and Coating 

Components. 

3201.111 Intermediates—Textile Processing 

Materials. 

3201.112 Intermediates—Foams. 

3201.113 Intermediates—Fibers and 

Fabrics. 

3201.114 Intermediates—Lubricant 

Components. 

3201.115 Intermediates—Binders. 

3201.116 Intermediates—Cleaner 

Components. 

3201.117 Intermediates—Personal Care 

Product Components. 

3201.118 Intermediates—Oils, Fats, and 

Waxes. 

3201.119 Intermediates—Rubber Materials. 

§ 3201.108 Intermediates—Plastic Resins. 

(a) Definition. Intermediates—Plastic 

Resins are materials that are typically 

viscous liquids with the ability to 

harden permanently and may exist in 

liquid or solid (powder or pellets) states. 

Intermediates—Plastic Resins may be 

used in a variety of finished products 

neat, consisting of a single resin or 

polymer, or a homogeneous blend of 

two or more neat resins or polymers, or 

a composite, containing two or more 

distinct materials such as fiberreinforced resins. Additionally, 

Intermediates—Plastic Resins may be 

used in finished products as additives 

such as plasticizers, pigments, thermal 

stability agents, or impact modifiers. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 22 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Plastic Resins. By that date, Federal 

agencies responsible for drafting or 

reviewing specifications for products to 

be procured shall ensure that the 

relevant specifications require the use of 

biobased Intermediates—Plastic Resins. 

§ 3201.109 Intermediates—Chemicals. 

(a) Definition. Intermediates— 

Chemicals are those used as reactants 

for organic synthesis reactions rather 

than for their functional properties in a 

chemical mixture; those used as 

building block chemicals and secondary 

chemicals such as glycerol, succinic 

acid, propanediol, and monomers such 

as lactic acid and propylene; those used 

for specific functional properties during 

manufacturing of other products such as 

pH regulators, flocculants, precipitants, 

neutralizing agents, emulsifiers, 

viscosity reducers, rheology modifiers, 

adhesion agents, detergents, wetting 

agents, foaming agents, or dispersants; 

those that are added to end-use products 

for their specific functional properties 

including polyols, polymers, and 

solvents for thinning and drying 

applications but excluding solvents 

used for cleaning; and those used for 

dyes, pigments, and scents including 

flavorings for non-food products such as 

lip balm. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 22 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Chemicals. By that date, Federal 

agencies responsible for drafting or 

reviewing specifications for products to 

be procured shall ensure that the 

relevant specifications require the use of 

biobased Intermediates—Chemicals. 

§ 3201.110 Intermediates—Paint and 

Coating Components. 

(a) Definition. Intermediates—Paint 

and Coating Components are ingredients 

used to formulate finished waterborne 

or solvent borne paint and coating 

products. Examples of Intermediates— 

Paint and Coating Components include 

binders, pigments, thickeners, curing 

agents, modifiers, humectants, open 

time additives, alkyd latex resins, 

polymers, polyols, reactive oligomers, or 

reactive diluents. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 22 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Paint and Coating Components. By that 

date, Federal agencies responsible for 

drafting or reviewing specifications for 

products to be procured shall ensure 

that the relevant specifications require 

the use of biobased Intermediates— 

Paint and Coating Components. 

§ 3201.111 Intermediates—Textile 

Processing Materials. 

(a) Definition. Intermediates—Textile 

Processing Materials are used to treat or 

finish textiles for the purposes of 

altering textile characteristics such as 

color, fading, wrinkle resistance, 

texture, or moisture management. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 22 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 


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percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Textile Processing Materials. By that 

date, Federal agencies responsible for 

drafting or reviewing specifications for 

products to be procured shall ensure 

that the relevant specifications require 

the use of biobased Intermediates— 

Textile Processing Materials. 

§ 3201.112 Intermediates—Foams. 

(a) Definition. Intermediates—Foams 

are dry polymer foams used for nonconstruction purposes, such as cushions 

for furniture. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 22 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Foams. By that date, Federal agencies 

responsible for drafting or reviewing 

specifications for products to be 

procured shall ensure that the relevant 

specifications require the use of 

biobased Intermediates—Foams. 

§ 3201.113 Intermediates—Fibers and 

Fabrics. 

(a) Definition. Intermediates—Fibers 

and Fabrics encompasses plant and 

animal fibers, fibers made from plantderived polymers that are not yet 

formed into more complex products 

such as carpet or fabrics, fabrics made 

from natural fibers, fabrics made from 

synthetic fibers, or fabrics made from a 

blend of the two. These materials are 

used to manufacture finished products 

such as clothing, upholstery, or drapes. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 25 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Fibers and Fabrics. By that date, Federal 

agencies responsible for drafting or 

reviewing specifications for products to 

be procured shall ensure that the 

relevant specifications require the use of 

biobased Intermediates—Fibers and 

Fabrics. 

§ 3201.114 Intermediates—Lubricant 

Components. 

(a) Definition. Intermediates— 

Lubricant Components are ingredients 

that used specifically to formulate 

finished lubricant products. Examples 

of Intermediates—Lubricant 

Components include base oils, base 

fluids, additives, or friction modifiers. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 44 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Lubricant Components. By that date, 

Federal agencies responsible for drafting 

or reviewing specifications for products 

to be procured shall ensure that the 

relevant specifications require the use of 

biobased Intermediates—Lubricant 

Components. 

§ 3201.115 Intermediates—Binders. 

(a) Definition. Intermediates—Binders 

are materials used to provide 

cohesiveness throughout an entire 

finished product. Binders are generally 

polymers or polymer precursors (such 

as epoxies) and include the polymeric 

materials used to formulate coatings, 

adhesives, sealants, and elastomers. The 

product category does not include 

adhesives and glues that are finished 

products used to attach the surfaces of 

two or more distinct and separate 

components to one another. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 47 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Binders. By that date, Federal agencies 

responsible for drafting or reviewing 

specifications for products to be 

procured shall ensure that the relevant 

specifications require the use of 

biobased Intermediates—Binders. 

§ 3201.116 Intermediates—Cleaner 

Components. 

(a) Definition. Intermediates—Cleaner 

Components are intermediate 

ingredients used specifically for 

formulating finished cleaning products. 

Examples of Intermediates—Cleaner 

Components include chelating agents, 

surfactants, hydrotropes, fatty acids, or 

solvents. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 55 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Cleaner Components. By that date, 

Federal agencies responsible for drafting 

or reviewing specifications for products 

to be procured shall ensure that the 

relevant specifications require the use of 

biobased Intermediates—Cleaner 

Components. 

§ 3201.117 Intermediates—Personal Care 

Product Components. 

(a) Definition. Intermediates— 

Personal Care Product Components are 

ingredients used to formulate finished 

personal care products. Examples of 

Intermediates—Personal Care Product 

Components include surfactants, oils, 

humectants, emollients, or emulsifiers. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 62 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Personal Care Product Components. By 

that date, Federal agencies responsible 

for drafting or reviewing specifications 

for products to be procured shall ensure 

that the relevant specifications require 

the use of biobased Intermediates— 

Personal Care Product Components. 

§ 3201.118 Intermediates—Oils, Fats, and 

Waxes. 

(a) Definition. Intermediates—Oils, 

Fats, and Waxes include raw or 

modified fats and oils derived from 

plants or animals. 

(b) Minimum biobased content. The 

Federal preferred procurement product 


amozie on DSK3GDR082PROD with RULES
31850 Federal Register / Vol. 83, No. 132 / Tuesday, July 10, 2018 / Rules and Regulations 

must have a minimum biobased content 

of at least 65 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Oils, Fats, and Waxes. By that date, 

Federal agencies responsible for drafting 

or reviewing specifications for products 

to be procured shall ensure that the 

relevant specifications require the use of 

biobased Intermediates—Oils, Fats, and 

Waxes. 

§ 3201.119 Intermediates—Rubber 

Materials. 

(a) Definition. Intermediates—Rubber 

Materials are used in finished products 

such as rubber gloves, vehicle tires, 

footwear, sports apparel and equipment, 

bedding and pillow foams, tubing, 

catheters, gasketing, or cosmetic 

adhesives and bases. 

(b) Minimum biobased content. The 

Federal preferred procurement product 

must have a minimum biobased content 

of at least 96 percent, which shall be 

based on the amount of qualifying 

biobased carbon in the product as a 

percent of the weight (mass) of the total 

organic carbon in the finished product. 

(c) Preference compliance date. No 

later than July 10, 2019, procuring 

agencies, in accordance with this part, 

will give a procurement preference for 

qualifying biobased Intermediates— 

Rubber Materials. By that date, Federal 

agencies responsible for drafting or 

reviewing specifications for products to 

be procured shall ensure that the 

relevant specifications require the use of 

biobased Intermediates—Rubber 

Materials. 

Donald K. Bice, 

Deputy Assistant Secretary For 

Administration, U.S. Department of 

Agriculture. 

[FR Doc. 2018–14594 Filed 7–9–18; 8:45 am] 

BILLING CODE 3410–TX–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2018–0606; Product 

Identifier 2018–CE–018–AD; Amendment 

39–19321; AD 2018–14–01] 

RIN 2120–AA64 

Airworthiness Directives; Piper 

Aircraft, Inc. 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

Piper Aircraft, Inc. (Piper) Models PA– 

46–600TP (M600) airplanes. This AD 

requires inserting temporary airspeed 

limitations into the pilot’s operating 

handbook, installing a temporary 

placard, inspecting rivets on the cockpit 

canopy above the left and right cockpit 

side windows, and installing a repair kit 

based on the findings of the rivet 

inspection. This AD was prompted by a 

report of undersized fasteners installed 

during manufacturing. We are issuing 

this AD to address the unsafe condition 

on these products. 

DATES: This AD is effective July 25, 

2018. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of July 25, 2018. 

We must receive comments on this 

AD by August 24, 2018. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

For service information identified in 

this final rule, contact Piper Aircraft, 

Inc., 2926 Piper Drive, Vero Beach, 

Florida 32960; telephone: (772) 567– 

4361; internet: www.piper.com. You 

may view this service information at the 

FAA, Policy and Innovation Division, 

901 Locust, Kansas City, Missouri 

64106. For information on the 

availability of this material at the FAA, 

call (816) 329–4148. It is also available 

on the internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2018– 

0606. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2018– 

0606; or in person at Docket Operations 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The AD docket contains this final rule, 

the regulatory evaluation, any 

comments received, and other 

information. The street address for 

Docket Operations (phone: 800–647– 

5527) is listed above. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: Dan 

McCully, Aerospace Engineer, FAA, 

Atlanta ACO Branch, 1701 Columbia 

Avenue, College Park, Georgia 30337; 

telephone: (404) 474–5548; fax: (404) 

474–5606; email: william.mccully@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We received a report from Piper that 

some rivets installed through the 

fuselage skin at the cockpit area during 

manufacture are below the minimum 

required strength on certain Model PA– 

46–600TP (M600) airplanes. This 

condition, if not corrected, could result 

in failure of the skin joint resulting in 

loss of pressurization or fuselage 

structural failure. We are issuing this 

AD to correct the unsafe condition on 

these products. 

Related Service Information Under 1 

CFR Part 51 

We reviewed Piper Aircraft, Inc. 

Service Bulletin No. 1318B, dated June 

7, 2018. The service bulletin describes 

procedures for incorporating temporary 

airspeed limitations into the pilot’s 

operating handbook (POH) and 

fabricating and installing an airspeed 

limitations placard on the airplane until 

an inspection is completed and a 

minimum of 16 specific rivets are 

replaced. The service bulletin also 

describes procedures for the inspection 

of the rivets on the cockpit canopy 

above the left and right cockpit side 

window and the replacement of the 

rivets. This service information is 

reasonably available because the 


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