[Federal Register Volume 60, Number 83 (Monday, May 1, 1995)]
[Rules and Regulations]
[Pages 21370-21384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10509]




[[Page 21369]]

_______________________________________________________________________

Part V





Environmental Protection Agency





_______________________________________________________________________



40 CFR Part 247



Comprehensive Guideline for Procurement of Products Containing 
Recovered Materials; Final Rule

Federal Register / Vol. 60, No. 83 / Monday, May 1, 1995 / Rules and 
Regulations 
[[Page 21370]] 

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 247

[FRL-5198-7]
RIN 2050-AE16


Comprehensive Guideline for Procurement of Products Containing 
Recovered Materials

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: Today, the Environmental Protection Agency (EPA) is 
promulgating a final regulation designating the following 19 items that 
are or can be made with recovered materials: Engine coolants, 
structural fiberboard, laminated paperboard, carpet, floor tile, patio 
blocks, cement and concrete containing ground granulated blast furnace 
slag, traffic cones, traffic barricades, playground surfaces, running 
tracks, hydraulic mulch, yard trimmings compost, office recycling 
containers, office waste receptacles, plastic desktop accessories, 
toner cartridges, binders, and plastic trash bags. The CPG also 
consolidates the designations from EPA's five earlier procurement 
guidelines, which were previously codified at 40 CFR parts 248, 249, 
250, 252, and 253. These five items, in addition to the 19 new items 
designated today, will be incorporated into a new Comprehensive 
Procurement Guideline codified at 40 CFR part 247.
    This regulation is issued under the authority of section 6002(e) of 
the Resource Conservation and Recovery Act (RCRA). This action will 
promote recycling by using government purchasing to expand markets for 
recovered materials. RCRA section 6002 requires EPA to designate items 
that are or can be produced with recovered materials and to recommend 
practices for the procurement of designated items by procuring 
agencies. Once EPA designates an item, RCRA section 6002 requires that 
any procuring agency, when using appropriated Federal funds to procure 
that item, shall purchase it with the highest percentage of recovered 
materials practicable.
    Executive Order 12873 sets forth procedures for EPA to follow in 
implementing RCRA section 6002(e). Specifically, it calls for EPA to 
designate section 6002 items in a Comprehensive Procurement Guideline 
(CPG) and to provide recommended procurement practices in a related 
Recovered Materials Advisory Notice (RMAN).
    For the items designated in today's rule, EPA is issuing a 
Recovered Materials Advisory Notice (RMAN), which is published in the 
notice section of today's Federal Register. This RMAN includes EPA's 
consolidated recommendations to procuring agencies for meeting their 
section 6002 obligations with respect to the new and existing 
designated items. In the case of most designated items, the RMAN 
contains recommended minimum recovered materials content levels. For 
other items, an alternative approach is recommended. In addition, the 
RMAN revises the recommended recovered materials content levels 
originally contained in the building insulation guideline issued in 
1988. The purpose of the recommendations contained in the RMAN is to 
assist procuring agencies in fulfilling their obligations under RCRA 
section 6002 and Executive Order 12873 to purchase designated items 
composed of the highest percentages of recovered materials practicable.

EFFECTIVE DATE: The Comprehensive Procurement Guideline is effective on 
May 1, 1996.

ADDRESSES: The public record for this rulemaking (Docket Number F-95-
PRMF-FFFFF) is located at the following address: U.S. Environmental 
Protection Agency, RCRA Information Center (RIC), Room M2616, 401 M 
Street SW., Washington, DC 20460.
    The RIC is open from 9 a.m. to 4 p.m. Monday through Friday, except 
for Federal holidays. To review docket materials, the public must make 
an appointment by calling (202) 260-9327. Materials may be copied for 
$0.15 per page.

FOR FURTHER INFORMATION CONTACT: ``Comprehensive Procurement 
Guideline--Supporting Analyses'' is the primary supporting document for 
the final Comprehensive Procurement Guideline. Today's Federal Register 
notice and the supporting document will be available in electronic 
format on the Internet System through the EPA Public Access Server at 
gopher.epa.gov. For a paper copy of the Federal Register notice or 
``Comprehensive Procurement Guideline--Supporting Analyses,'' please 
contact the RCRA Hotline at 800-424-9346, or, in the Washington, DC 
metropolitan area, (703) 412-9810. Paper copies also are available in 
the RCRA Docket at the address listed in the previous section.
    For general information, contact the RCRA Hotline. For technical 
information on individual item designations, contact the following EPA 
staff: Yard trimmings compost, Plastic pipe and fittings, Geotextiles, 
Carpet, Floor tile and Patio blocks, Playground surfaces and Running 
tracks, Temporary traffic control devices--Terry Grist, (703) 308-7257; 
Engine coolant--Tracy Bone, (703) 308-7259; Cement and concrete 
containing ground granulated blast furnace slag and Hydraulic mulch--
Dana Arnold, (703) 308-7279; Structural fiberboard and Laminated 
paperboard, Office recycling containers and Office waste receptacles, 
Plastic desktop accessories, Toner cartridges, Binders, and Plastic 
trash bags--Beverly Goldblatt, (703) 308-7278. For all other technical 
information, contact Beverly Goldblatt at (703) 308-7278, or Terry 
Grist at (703) 308-7257.

Accessing Internet

1. Through Gopher: Go to: gopher.epa.gov
    From the main menu, choose ``EPA Offices and Regions''. Next, 
choose ``Office of Solid Waste and Emergency Response (OSWER)''. Next, 
choose ``Office of Solid Waste''. Then, choose ``Non-Hazardous Waste--
RCRA Subtitle D''. Finally, choose ``Procurement/CPG''.
2. Through FTP: Go to: ftp.epa.gov
    Login: anonymous
    Password: Your Internet Address
    Files are located in directories/pub/gopher. All OSW files are in 
directories beginning with ``OSW''.
3. Through MOSAIC: Go to: http://www.epa.gov
    Choose the EPA Public Access Gopher. From the main (Gopher) menu, 
choose ``EPA Offices and Regions''. Next, choose ``Office of Solid 
Waste and Emergency Response (OSWER).'' Next, choose ``Office of Solid 
Waste''. Then, choose ``Non-Hazardous Waste--RCRA Subtitle D''. 
Finally, choose ``Procurement/CPG''.
4. Through dial-up access:
    Dial 919-558-0335. Choose EPA Public Access Gopher. From the main 
(Gopher) menu, choose ``EPA Offices and Regions''. Next, choose 
``Office of Solid Waste and Emergency Response (OSWER)''. Next, choose 
``Office of Solid Waste''. Then, choose ``Non-Hazardous Waste--RCRA 
Subtitle D''. Finally, choose ``Procurement/CPG''.

SUPPLEMENTARY INFORMATION:

Preamble Outline

I. Authority
II. Background
    A. Purpose of the Procurement Guidelines
    B. RCRA Section 6002
    C. Executive Order 12873
    D. Other Requirements and Policies [[Page 21371]] 
    E. Existing Procurement Guidelines
    F. Summary of Proposed Rule
III. Comment Summary and Agency's Response
A. General Comments
    1. Designation of Material Specific Items
    2. Purpose, Scope, and Applicability
    3. Definitions
    4. Affirmative Procurement Program
B. Items Proposed for Designation
    1. Engine Coolants
    2. Plastic Pipe and Fittings
    3. Geotextiles
    4. Cement and Concrete Containing Ground Granulated Blast 
Furnace Slag
    5. Carpet
    6. Floor Tiles
    7. Yard Trimmings Compost
    8. Office Recycling Containers and Waste Receptacles
    9. Toner Cartridges
    10. Binders
C. Other Items Considered for Designation
D. Public Participation in Future Updates to the CPG
IV. Availability of Designated Items
V. Economic Impact Analysis
    A. Requirements of Executive Order 12866
    B. Unfunded Mandates Reform Act of 1995 and Consultation with 
State, Local, and Tribal Governments
    C. Summary of Benefits
    D. Summary of Costs
    E. Product Cost
    F. Regulatory Flexibility Analysis
VI. Supporting Information
    Appendix I

I. Authority

    This guideline is promulgated under the authority of sections 
2002(a) and 6002 of the Solid Waste Disposal Act, as amended by the 
Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. 
6912(a) and 6962, and section 502 of Executive Order 12873 (58 FR 
54911; October 22, 1993).

II. Background

    RCRA section 6002 and Executive Order 12873 set forth requirements 
for the procurement of products containing recovered materials and the 
issuance of procurement guidelines. The requirements of RCRA section 
6002 apply to ``procuring agencies,'' as defined in RCRA section 1004; 
Executive Order requirements apply only to Federal ``Executive 
agencies,'' as defined in section 202 of Executive Order 12873. Under 
RCRA section 1004(17), a ``procuring agency'' means 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 any such agency with respect to work 
performed under such contract.''

A. Purpose of the Procurement Guidelines

    In RCRA, Congress acknowledged the importance of recycling in 
helping to manage the nation's solid waste and recognized that 
recycling is not merely the collection of materials, but includes the 
manufacture of products with these materials and the purchase of 
recycled content products by consumers. RCRA section 6002 established 
the government's buy-recycled program, which uses Federal purchasing 
power to stimulate the demand for products made with recovered 
materials. The statute does this by requiring EPA to issue guidelines 
to be used by government when procuring recycled products. The 
guidelines are used not only by Federal agencies but also by state and 
local agencies and their contractors. Many state and local agencies 
have urged EPA to designate additional items to increase markets for 
recovered materials. President Clinton's Executive Order 12873 further 
bolsters the Federal government's commitment to buy products containing 
recovered materials by ``streamlining'' the process used by EPA in 
fulfilling its obligation under RCRA section 6002 to designate items 
that are or can be made with recovered materials.
    Executive Order 12873 recognizes that the nation's interest is 
served when the Federal government makes more efficient use of natural 
resources by maximizing recycling and preventing waste wherever 
possible. The E.O. also recognizes that the Federal government should--
through cost-effective waste prevention and recycling activities--work 
to conserve disposal capacity, and serve as a model in this regard for 
private and other public institutions. For many products, the use of 
recovered materials in manufacturing can result in significantly lower 
energy and material input costs than when virgin raw materials are 
used. Use of recovered materials may reduce the generation and release 
of air and water pollutants often associated with manufacturing 
(including air emissions that contribute to the level of ``greenhouse 
gases'' and ozone depletion). Using recovered materials also reduces 
the environmental impacts of mining, harvesting, and other extraction 
of natural resources, while conserving non-renewable resources for 
future use. Recycling can also divert large amounts of materials from 
landfills. This reduces the need to expand existing or site new 
disposal facilities, allowing local officials to devote more attention 
to health, education, and safety issues.
    Executive Order 12873 also points out that the use of recycled 
content products by the Federal government can spur private sector 
development of new technologies and use of such products, thereby 
creating business and employment opportunities that enhance local, 
regional, and national economies. Technological innovation associated 
with the use of recovered materials can translate into economic growth 
and make American industry more competitive in the global economy.
    Both RCRA and the E.O. recognize the interdependence between buying 
recycled content products and the success of recycling. For recycling 
to occur, industry must use recovered materials as feedstock for the 
manufacture of new products. Despite the environmental and economic 
efficiencies that can be realized by using recovered materials as 
feedstock, a manufacturer's primary responsibility remains to produce 
items that meet the demands of the consumer. The Federal government, 
through its purchasing decisions as a consumer, can play a key role in 
influencing manufacturers' decisions on products made with recovered 
materials. By purchasing products containing recovered materials 
pursuant to the guidelines established under RCRA and Executive Order 
12873, the Federal government and other procuring agencies have the 
opportunity to increase markets for recovered materials and to 
contribute to an increased level of recycling in this country.
    EPA also strongly encourages the private sector to use these 
guidelines when making purchasing decisions. Private sector purchases 
of most designated items far exceed government purchases. By seeking 
products made with recovered materials, the private sector can further 
stimulate markets for recovered materials, reduce the generation of air 
and water pollutants associated with virgin material extraction and 
beneficiation, and, in some instances, contribute to reductions in our 
nation's energy usage.

B. RCRA Section 6002

    RCRA section 6002 requires EPA to designate items that are or can 
be made with recovered materials and to recommend practices to assist 
procuring agencies in purchasing the designated items. Once an item is 
designated by EPA, procuring agencies are required to purchase it 
composed of the highest percentage of recovered materials practicable 
(and in the case of paper, the highest percentage of postconsumer 
recovered materials), taking into consideration the limitations set 
forth in [[Page 21372]] section 6002(c)(1) (A) through (C) (i.e., 
competition, price, availability, and performance). The requirement 
applies when the purchase price of the item exceeds $10,000 or when the 
total cost of such items, or of functionally equivalent items, 
purchased during the preceding fiscal year was $10,000 or more.
    Within one year after EPA designates an item, RCRA section 
6002(d)(2) requires that Federal agencies revise their specifications 
to require the use of recovered materials to the maximum extent 
possible without jeopardizing the intended end-use of the item. Section 
6002(d)(1) further requires Federal agencies responsible for drafting 
or reviewing specifications to review all of their product 
specifications to eliminate both provisions prohibiting the use of 
recovered materials and requirements specifying the exclusive use of 
virgin materials. This revision process should have been completed by 
May 8, 1986.
    Once EPA designates an item, responsibility for complying with RCRA 
section 6002 rests with the procuring agencies. As noted, after the 
date specified in the designation, each procuring agency must procure 
designated items with the highest recovered materials content 
practicable. After the effective date, contracting officers must 
require their vendors to certify that the recovered materials content 
of their product meets the required content level. Furthermore, for 
each item designated by EPA, RCRA section 6002(i) requires each 
procuring agency to develop an affirmative procurement program, which 
sets forth the agency's policies and procedures for implementing the 
requirements of RCRA section 6002. The program must assure that the 
agency purchases items composed of recovered materials to the maximum 
extent practicable and that these purchases are made consistent with 
applicable provisions of Federal procurement law. In accordance with 
RCRA section 6002(i), the affirmative procurement program must contain 
at least four elements:

(1) A recovered materials preference program;
(2) An agency promotion program;
(3) A program for requiring vendors to reasonably estimate, certify, 
and verify the recovered materials content of their products; and
(4) A program to monitor and annually review the effectiveness of the 
affirmative procurement program.

C. Executive Order 12873

    Executive Order 12873, entitled ``Federal Acquisition, Recycling, 
and Waste Prevention,'' was signed by President Clinton on October 20, 
1993. The Order establishes a new, two-part process for EPA to use when 
developing and issuing the procurement guidelines for products 
containing recovered materials. The first part, the Comprehensive 
Procurement Guideline, contains EPA's designations of items that are or 
can be made with recovered materials. Because this is an activity 
requiring rulemaking, the CPG was developed using formal notice-and-
comment rulemaking procedures and will be codified in the Code of 
Federal Regulations. Today's final CPG was developed under the 
procedures established in the Executive Order.
    The second part, the Recovered Materials Advisory Notice, provides 
recommendations to procuring agencies on purchasing the items 
designated in the CPG. The Executive Order directs EPA to publish the 
RMAN in the Federal Register for public comment. The RMAN for items 
designated in today's CPG appears in the notice section of today's 
Federal Register.
    A detailed description of the Executive Order provisions was 
included in the preamble to the proposed CPG (59 FR 18858; April 20, 
1994).

D. Other Requirements and Policies

    There are several other policies and procedures that may affect the 
procurement of products containing recovered materials by Federal and 
other government agencies. For the convenience of the reader, in 
Appendix I of this preamble, EPA has briefly summarized requirements 
and policies set forth in the Federal Acquisition Regulation, OFPP 
Policy Letter 92-4, and OMB Circulars A-102, A-119, and A-131.

E. Existing Procurement Guidelines

    Between 1983 and 1989, EPA issued five guidelines for the 
procurement of products containing recovered materials. The guidelines 
issued prior to today's effort are listed in the following table:

     Table 1.--EPA Guidelines for Procurement of Products Containing    
                           Recovered Materials                          
------------------------------------------------------------------------
                                 40 CFR                                 
           Guideline              Part               Date(FR)           
------------------------------------------------------------------------
Cement and Concrete Containing       249  January 28, 1983 (48 FR 4230).
 Fly Ash.                                                               
Paper and Paper Products......       250  June 22, 1988 (53 FR 23546).  
Re-Refined Lubricating Oils...       252  June 30, 1988 (53 FR 24699).  
Retread Tires.................       253  November 17, 1988 (53 FR      
                                           46558).                      
Building Insulation...........       248  February 17, 1989 (54 FR      
                                           7327).                       
------------------------------------------------------------------------

F. Summary of Proposed Rule

    On April 20, 1994, EPA proposed a Comprehensive Procurement 
Guideline that, when finalized, would designate 21 items that are or 
can be made with recovered materials. The items were arranged into 
product categories as shown below:

Vehicular Products

Reclaimed engine coolants

Construction Products

Structural fiberboard
Laminated paperboard
Plastic pipe and fittings
Geotextiles
Cement/concrete containing ground granulated blast furnace slag
Carpet
Floor tiles
Patio blocks

Transportation Products

Traffic barricades
Traffic cones

Park and Recreation Products

Playground Surfaces
Running Tracks

Landscaping Products

Hydraulic Mulch
Yard Trimmings Compost

Non-Paper Office Products

Office recycling containers
Office waste receptacles
Plastic desktop accessories
Remanufactured toner cartridges
Binders
Plastic Trash Bags

    In addition to proposing to designate the 21 new items, EPA (1) 
identified items for potential future designation, depending on the 
receipt of additional information; (2) identified items deemed not 
appropriate for designation at this time; (3) announced the Agency's 
intention to establish a process for the public to suggest items that 
could be added to future updates to the CPG; and (4) requested comment 
on how EPA might be able to increase public 
[[Page 21373]] participation in developing future updates to the CPG.
    EPA also proposed to delete the outdated guidance in 40 CFR part 
247, which pre-dated the 1984 amendments to the Resource Conservation 
and Recovery Act and to consolidate the existing five procurement 
guidelines and new item designations into a new part 247. The proposed 
new part 247 consisted of two subparts: Subpart A--General, which 
included the general requirements of RCRA section 6002 and definitions, 
and Subpart B--Item Designations (see 59 FR 18862, April 20, 1994). As 
explained in the preamble to the proposed CPG, EPA did not seek comment 
on the existing item designations for paper and paper products, re-
refined lubricating oil, building insulation, cement and concrete 
containing fly ash, or retread tires.
    The legal basis, methodology, and factual conclusions that formed 
the basis of the proposal were described in substantial detail in the 
notice of proposed rulemaking (see 59 FR 18853-18882).
    Interested persons were invited to participate in the rulemaking by 
submitting written comments by June 20, 1994.

III. Comment Summary and Agency's Response

    EPA received submittals from over 300 commenters in response to the 
proposed CPG. These commenters represented various interests, including 
Federal agencies, State agencies, local governments, product 
manufacturers, product users, public interest groups, waste management 
companies, and members of Congress. EPA has carefully considered all of 
these comments. A discussion of the major comments follows.

A. General Comments

1. Designation of Material Specific Items
    Comment: One commenter suggested that EPA designate items in a 
material neutral manner. In other words, rather than designating items 
made of specific materials (e.g., ``plastic'' trash bags), EPA should 
simply designate the items in generic terms (e.g., trash bags).
    Response: EPA believes that such an approach is not appropriate for 
all items. Under RCRA section 6002(c)(1), each procuring agency which 
procures ``any items'' designated by EPA is required to procure such 
items composed of the highest percentage of recovered materials 
practicable. As a result, if EPA designates a generic category of 
items, procuring agencies are obligated to try to purchase all items 
within that category containing recovered materials. For example, when 
EPA designated ``paper and paper products'' or ``building insulation 
products,'' procuring agencies were obligated to purchase all types of 
paper products or building insulation containing recovered materials, 
even though EPA did not provide content recommendations for all 
products within these categories. In other instances, where EPA is not 
aware that items manufactured from other types of materials are made 
with or could contain recovered materials, EPA has limited its 
designations so as not to create an unnecessary burden on agencies to 
try to purchase an item that is not available. When EPA learns that the 
generic item is being made with additional recovered materials, EPA 
will evaluate the new information and consider amending the item 
designation accordingly.
    In implementing this process for the items listed in the proposed 
CPG, EPA sometimes had information on the availability of a particular 
item made with a specific recovered material (e.g., plastic), but no 
information on the availability of the item made from a different 
recovered material or any indication that it is possible to make the 
item with a different recovered material. In these instances, EPA 
concluded that it was appropriate to include the specific material in 
the item designation in order to provide vital information to procuring 
agencies as they seek to fulfill their obligations to purchase 
designated items composed of the highest percentage of recovered 
materials practicable. This information enables the agencies to focus 
their efforts on products that are currently available for purchase, 
reducing their administrative burden. EPA also included information in 
the proposed CPG, as well as in the draft RMAN that accompanied the 
proposed CPG, that advised procuring agencies that EPA is not 
recommending the purchase of an item made from one particular material 
over a similar item made from another material. For example, EPA 
included the following statement in the preamble discussion for plastic 
desktop accessories (59 FR 18879): ``This designation does not preclude 
a procuring agency from purchasing desktop accessories manufactured 
from another material, such as wood. It simply requires that a 
procuring agency, when purchasing plastic desktop accessories, purchase 
these accessories made with recovered materials * * *''
2. Purpose, Scope, and Applicability
    Comment: A commenter inquired about the applicability of RCRA 
section 6002 to designated items that are leased rather than purchased 
by a procuring agency.
    Response: Section 6002 applies to ``any purchase or acquisition'' 
in excess of $10,000 by a procuring agency. The Federal Acquisition 
Regulation (FAR) defines ``acquisition'' to include the acquiring of 
supplies or services (including construction) by means of a lease (48 
CFR 2.101). Therefore, RCRA section 6002 and the procurement guidelines 
developed under its authority apply to a procuring agency's lease 
contracts for designated items. Under the definition of ``procuring 
agency,'' lessor contractors are subject to the section 6002 
requirements for work performed under the lease contract.
    Comment: Commenters inquired when RCRA section 6002 applies to 
contractors.
    Response: The requirements of RCRA section 6002 apply to 
contractors in the following circumstances. A contractor must comply 
with section 6002 with respect to work under the contract if the 
contractor is (1) contracting with a Federal agency or a State agency 
which is using appropriated Federal funds for a procurement and (2) 
purchasing or acquiring a designated item whose purchase price exceeds 
$10,000 or the quantity of the item purchased in the previous year was 
$10,000 or more.
    Under both circumstances, it is immaterial for purposes of the 
$10,000 threshold whether the contractor purchased or acquired the 
designated items as a ``procuring agency'' (with respect to work 
performed under a contract with a Federal or State agency) or in its 
private capacity. All the purchases of a designated item should be 
aggregated in order to determine whether the $10,000 threshold for 
section 6002 applicability is met. However, the obligations of section 
6002 are prospective. The contractor must determine whether the $10,000 
threshold is met only after it is a ``procuring agency.'' That is, 
purchases exceeding the $10,000 threshold in the year prior to the year 
in which a contractor becomes a ``procuring agency'' do not trigger 
section 6002(a) requirements. Furthermore, while the contractor is 
subject to section 6002 requirements once it exceeds the threshold, the 
RCRA requirements apply only with respect to work performed under the 
contract (i.e, when supplying the designated item to any State or 
Federal agency). [[Page 21374]] 
    For example, in Year One, Contractor X contracts to supply $500 of 
hydraulic mulch to a State agency using appropriated Federal funds to 
purchase the hydraulic mulch. Therefore, in Year One, Contractor X is a 
``procuring agency.'' During Year One, Contractor X also purchases 
hydraulic mulch for its own use and to supply the requirements of its 
other customers, with total purchases of hydraulic mulch exceeding 
$10,000. In Year One, while Contractor X is a procuring agency, 
Contractor X is not subject to the section 6002 requirements for 
hydraulic mulch supplied to the State agency because the contract price 
does not exceed $10,000. In Year Two, Contractor X is subject to 
section 6002 requirements for hydraulic mulch provided to the State 
agency for the procurement regardless of the amount of the contracted 
purchase, because, while a ``procuring agency'' in Year One, it 
purchased in excess of $10,000 of hydraulic mulch.
    In another example, in Year One, Contractor Y purchases $10,000 of 
hydraulic mulch but none was purchased on behalf of a government agency 
using appropriated Federal funds. In Year One, Contractor Y is not a 
procuring agency. In Year Two, Contractor Y contracts to supply less 
than $10,000 of hydraulic mulch to a State agency using appropriated 
Federal funds for the purchase. In Year Two, Contractor Y is a 
procuring agency, but is not subject to section 6002 requirements for 
its purchases of hydraulic mulch because it was not a procuring agency 
during the previous year when it acquired in excess of $10,000 of 
hydraulic mulch.
3. Definitions
    In the proposed CPG, EPA explained that the definitions found in 
the five existing guidelines would be incorporated into a new part 247 
(59 FR 18863, April 20, 1994). The new part 247 would include the 
relevant definitions found in RCRA, the definitions of items, and 
definitions of terms used in the companion RMAN. EPA has concluded that 
it will be easier for procuring agencies to use the definitions if they 
are limited to those terms used in the CPG. Therefore, in the final 
CPG, the definitions section contains only terms used in the CPG.
4. Affirmative Procurement Program
    Comment: Several commenters expressed concern with the 
administrative requirements associated with individual item 
designations. In particular, many commenters objected to the 
requirement that procuring agencies develop affirmative procurement 
programs for all designated items, including items that they may not 
purchase or that they are unable to obtain with recovered materials 
content.
    Response: In the proposed CPG (59 FR 18864, April 20, 1994), EPA 
recommended that procuring agencies develop one comprehensive 
affirmative procurement program with a structure that provides for the 
integration of new items as they are designated. EPA believes that 
developing a single affirmative procurement program will substantially 
reduce procuring agencies' administrative burdens under RCRA that 
result from today's item designations.
    EPA also recommends that if a procuring agency does not purchase a 
specific designated item, it should simply include a statement in its 
preference program to that effect. Similarly, if a procuring agency is 
unable to obtain a particular item for one or more of the reasons cited 
in RCRA section 6002(c)(1), a similar statement should be included in 
the preference program along with the appropriate justification.
    For example, if a state agency procures cement and concrete using 
appropriated Federal funds and has determined that ground granulated 
blast furnace slag is not available in the state due to high 
transportation costs, then that state agency would include the 
following or similar statement in its preference program:

    The State currently is unable to use ground granulated blast 
furnace slag in cement and concrete products due to the high 
transportation costs of this material. Therefore, this State has 
concluded that, based on RCRA section 6002(c)(1)(C), it is not 
required to procure this material.

    EPA notes that, in accordance with RCRA section 6002(i)(2)(D), it 
is the procuring agency's responsibility to monitor and regularly 
update its affirmative procurement program. Should an item that was 
previously unobtainable become available, then the procuring agency 
should modify its affirmative procurement program accordingly.

B. Items Proposed for Designation

    No commenters opposed the designations of the following items: 
Structural fiberboard, laminated paperboard, patio blocks, traffic 
barricades, traffic cones, playground surfaces, running tracks, 
hydraulic mulch, plastic desktop accessories, and plastic trash bags. 
Therefore, today, EPA is promulgating these item designations as 
proposed. The following subsections discuss the significant comments 
pertaining to the remaining proposed item designations.
1. Engine Coolants
    Comment: Two commenters asked that EPA clarify that the proposed 
designation applies only to engine coolants used in vehicles and not to 
other glycol-based coolants used in other types of machinery such as 
generator motors.
    Response: EPA believed that inclusion of engine coolants in the 
Vehicular Products Category clarifies that the designation is limited 
to vehicular engine coolants and does not apply to other non-vehicular 
coolants. However, to remove any ambiguity, EPA is revising the engine 
coolant designation to specify that it applies to vehicles only.
    Comment: Two commenters urged EPA to limit the designation to 
ethylene-glycol based engine coolants and exclude other types of engine 
coolants. These two commenters stated that propylene glycol is not 
currently being reclaimed and that, therefore, propylene glycol-based 
engine coolants do not meet the statutory requirements for designation. 
Furthermore, one commenter noted that U.S. automobile manufacturers 
``currently disallow the use of propylene glycol engine coolants in 
their products. Products which are not ethylene glycol-based fail to 
meet the appropriate chemical properties requirement and are therefore 
not qualified for use in American Automobile Manufacturers Association 
members' vehicles.''
    Response: EPA believes that propylene glycol-based engine coolants 
are not currently being recovered and processed into reclaimed engine 
coolants. However, EPA is unaware of any technical reason that would 
prevent this from occurring. RCRA directs EPA to ``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 (Section 6002 of RCRA).'' Rather than precluding procuring 
agencies from purchasing propylene glycol-based engine coolants and 
reclaiming them, EPA concludes that it is inappropriate to limit the 
item designation to ethylene glycol-based engine coolants only. If 
propylene glycol-based engine coolants do not meet a procuring agency's 
performance requirements, the agency need not purchase them. Thus, EPA 
has decided to finalize the engine coolants designation as proposed. 
[[Page 21375]] 
2. Plastic Pipe and Fittings
    Comment: While one commenter supported the proposed designation of 
plastic pipe and fittings, EPA received numerous comments expressing 
concern about the possible liability and adverse effects were there to 
be failures of plastic pipe containing recovered materials. These 
commenters stated that the American Society for Testing and Materials 
(ASTM) and American Association of State Highway and Transportation 
Officials (AASHTO) are currently reviewing their material 
specifications that preclude the use of recovered materials in plastic 
pipe and fittings for possible revision to allow the use of these 
materials. These commenters suggested that ASTM and other reliable 
specifications are necessary to ensure the quality of plastic pipe 
containing recovered materials, and that EPA should not designate 
plastic pipe containing recovered materials until such specifications 
are in place.
    Response: As described in the proposed CPG, several manufacturers 
have conducted performance testing on pipe made with recovered 
materials and demonstrated that the pipe meets applicable ASTM 
performance specifications. However, there currently exist ASTM and 
other material specifications that preclude the use of recovered 
materials in plastic pipe and fittings. As pointed out by commenters, 
there is a major effort underway to review these specifications for 
possible revision to allow the use of recovered materials. This effort 
is not yet completed. Based on the comments received, EPA has become 
aware that many manufacturers and users of plastic pipe do not believe 
that adequate testing, especially field testing, has been conducted and 
that designation should be delayed until such testing is conducted. For 
this reason, EPA has determined that it is premature to designate 
plastic pipe and fittings, even for non-pressure applications.
    Many commenters in industry and government, particularly state 
transportation officials, expressed a strong interest in working with 
EPA to overcome the barriers to using plastic pipe made of recovered 
materials. At least one state transportation office currently is 
conducting field testing of HDPE drain pipe made of recovered 
materials. EPA will continue to follow developments in this area and 
will reconsider designating plastic pipe when these barriers have been 
overcome. In the meantime, EPA encourages manufacturers and users of 
plastic pipe made with recovered materials to keep the Agency apprised 
of new developments in product performance testing and revision of 
material specifications.
3. Geotextiles
    Comment: Although many commenters supported the proposed 
designation of geotextiles, the majority of commenters opposed it. 
Those in support of the designation stated that there are non-woven 
geotextiles available made with postconsumer recovered polyethylene 
terephthalate (PET) and they are being used in a variety of 
applications. These commenters also stated that adequate performance 
testing has been conducted to justify the designation of geotextiles 
made with recovered materials. Commenters opposed to the proposed 
designation of geotextiles expressed concern that using recovered 
resins in geotextiles could result in catastrophic failures if used in 
critical applications, such as in landfills or in road construction. 
These commenters stated that evidence does not exist on the long-term 
performance of geotextiles made with recovered resin or on the chemical 
compatibility of geotextiles containing recovered materials when used 
in landfill applications. Additional commenters claimed that no 
manufacturers actually make geotextiles with postconsumer 
polypropylene, that the technology does not exist to make geotextiles 
with recovered polypropylene, and that high-quality postconsumer 
polypropylene is not available in sufficient quantities for use in 
making geotextiles.
    Response: EPA has not yet been able to resolve the numerous 
technical issues raised during the comment period. To do so would have 
meant a delay in issuance of the final CPG and a delay in the date on 
which procuring agencies would be required to begin purchasing the 19 
additional items that are being designated at this time. Thus, EPA 
determined that it would be best to issue the CPG for those items on 
which the Agency is ready to proceed and to defer a final decision on 
the designation of geotextiles until a future update of the CPG.
    EPA will continue to track developments in this area, evaluate the 
issues raised by commenters, and maintain a dialog with manufacturers 
and users of geotextiles. EPA encourages manufacturers of geotextiles 
made with recovered materials to keep the Agency apprised of new 
products being manufactured with recovered materials, the availability 
of recovered polypropylene, and developments in product performance 
testing.
4. Cement and Concrete Containing Ground Granulated Blast Furnace Slag
    Comment: Several commenters opposed the designation of ground 
granulated blast furnace (GGBF) slag because of its lack of 
availability.
    Response: EPA has concluded that availability is not a barrier to 
designating GGBF slag. Data provided in comments by GGBF slag producers 
indicate that granulators currently are located at four steel plants, 
an additional five steel companies are considering the installation of 
granulation capacity at locations in six states, ten cement 
manufacturers in nine states currently grind granulated blast furnace 
slag, and excess capacity is available to supply granulated blast 
furnace slag to additional customers. Additionally, EPA's Report to 
Congress on special wastes from mineral processing<SUP>1 indicates that 
most U.S. primary iron producers are expected to modernize their blast 
furnaces and install slag granulation facilities, resulting in greater 
availability of granulated blast furnace slag for use in cement and 
concrete.

    \1\ ``Report to Congress on Special Wastes from Mineral 
Processing,'' Volume II: Methods and Analyses, U.S. Environmental 
Protection Agency, Office of Solid Waste, July 1990, Chapter 8.
---------------------------------------------------------------------------

    While GGBF slag currently is used primarily in Eastern states and 
states located just west of the Mississippi River, the product also has 
been used in states more remote from the nation's steel centers (e.g., 
Texas, Oklahoma, and Colorado), indicating that this item can be made 
available to states that are not proximate to steel mills. In light of 
the Agency's past experience with the positive effect of an item 
designation on markets, EPA concludes that designation of cement and 
concrete containing GGBF slag will encourage additional states to 
consider the use of GGBF slag, thereby creating expanded markets for 
this item.
    If a procuring agency determines that cement or concrete containing 
GGBF slag is not available, it is not required to purchase this item. 
Section 6002 of RCRA provides that procuring agencies need not purchase 
a designated item if the item is not reasonably available within a 
reasonable period of time or the item is available only at an 
unreasonable price. The procuring agency must, however, take the 
affirmative step of inquiring whether the item is or can be made 
available.
    Comment: The comments contained both positive and negative 
information about the performance of cement and concrete containing 
GGBF slag. Several states commented that they use GGBF 
[[Page 21376]] slag in cement or concrete for its positive attributes. 
A federal agency also cited several positive attributes of this 
material. The positive attribute most often cited was GGBF slag-
cement's contribution to a reduction in alkali-silica reactivity. It 
also adds cementitious properties.
    Commenters also cited negative performance factors about the use of 
GGBF slag, although conflicting information was provided about almost 
all of these factors. For example, commenters noted that concrete 
containing GGBF slag has a slower set time than concrete without GGBF 
slag. This fact could limit the time of year in which the product is 
used. However, considering that 70% of concrete is used in warmer 
months, other commenters stated that slower set time, in an of itself, 
is not a barrier to using this product in most projects.
    Response: EPA's detailed response to each of these comments is 
contained in ``Comprehensive Procurement Guideline--Supporting 
Analyses.'' In many instances, the negative attributes cited by 
commenters were cited as positive attributes by others. For example, 
slower setting times are often advantageous, especially in warm weather 
when 70 percent of concrete is placed. With respect to other 
performance criteria, other commenters provided conflicting 
information. For example, while some commenters cited a problem with 
the workability of concrete containing GGBF slag, a Federal agency 
commented that GGBF slag will generally improve the workability of 
concrete. Based on a review of the information submitted by commenters, 
EPA agrees with one commenter that GGBF slag is suitable for some, but 
not all, concrete applications and, therefore, should not be blindly 
substituted for Portland cement without regard for its effects on the 
characteristics of the concrete mix.
    For the following reasons, EPA concludes that cement and concrete 
containing GGBF slag should be designated: (1) The use of GGBF slag in 
cement and concrete can provide beneficial properties to users of 
concrete, such as reduced alkali-silica reactions, (2) the use of GGBF 
slag in cement and concrete can reduce the quantities of this material 
requiring disposal, and (3) cement and concrete containing GGBF slag is 
used on a widespread basis in several states. Additionally, EPA 
believes that the designation of this item will encourage procuring 
agencies to learn more about this product, which will, in turn, 
increase the likelihood that they will begin to purchase it where it is 
available and meets their performance requirements.
    Under the exceptions in RCRA section 6002, in those instances where 
the use of GGBF slag will not meet a procuring agency's reasonable 
performance requirements, the agency is not required to purchase the 
product.
    Comment: Several state agencies commented that coal fly ash is 
generated and used in their state. They stated that a designation of 
GGBF slag could result in reduced markets for coal fly ash because GGBF 
slag would compete with coal fly ash.
    Response: EPA's designation of GGBF slag does not require procuring 
agencies to favor this item over coal fly ash. Because it is an 
expansion of the existing cement and concrete designation, the GGBF 
slag designation simply requires that procuring agencies use cement and 
concrete containing either coal fly ash or GGBF slag when it meets 
their price and performance objectives. Which type of cement or 
concrete a procuring agency purchases will depend on a number of 
factors, including the performance requirements for the construction 
project, product availability, competition, and product price.
5. Carpet
    Comment: Several commenters were concerned about the proposed 
designation of polyester carpet, stating that this item generally does 
not meet the performance standards for commercial applications. 
Commenters stated that nylon carpeting is preferred in commercial 
applications because of the fiber's superior performance 
characteristics, while polyester carpeting is mainly suited for low-
wear or residential applications. Another commenter stated that nylon 
fibers can be made in a loop pile construction, whereas polyester 
fibers are typically made in a cut-pile construction which is prone to 
faster wear.
    Response: EPA is aware that polyester carpeting may not perform as 
well as nylon carpeting in high-wear and severe-wear applications. For 
this reason, EPA proposed to designate polyester carpet for low- and 
medium-wear applications only. The designation of polyester carpet 
applies only in those cases where procuring agencies have determined 
that polyester carpet has suitable performance characteristics to meet 
the agencies' particular applications. Where it is determined that 
polyester carpet is suitable, procuring agencies should purchase 
polyester carpet containing recovered materials.
6. Floor Tiles
    Comment: No commenters opposed the proposed designation of floor 
tiles. However, commenters explained that floor tiles containing 
recovered materials are not typically used in certain applications, 
such as for standard office flooring. Commenters explained that their 
use has been limited to certain heavy-duty applications.
    Response: EPA is not aware of any floor tiles containing recovered 
materials being used in standard office flooring applications; 
consistent with information submitted by commenters, their use has been 
limited to heavy-duty, commercial applications. For this reason, EPA is 
limiting the recommendations contained in the Recovered Materials 
Advisory Notice that accompanies today's rule to rubber and plastic 
floor tiles used in heavy-duty, commercial applications. If other uses, 
such as for standard office flooring are identified in the future, EPA 
will consider revising its recommendations to incorporate these 
applications.
7. Yard Trimmings Compost
    Comment: One commenter expressed concern about the proposed 
designation of yard trimmings compost because there are a lack of 
national standards for this item.
    Response: The Agency does not believe that a lack of national 
standards will inhibit the general use of yard trimmings compost, or 
that national standards are a necessary prerequisite for its 
designation. As noted in the preamble to the proposed rule, compost can 
have many different applications, each of which may require compost 
with differing characteristics. For instance, using compost for turf 
establishment would typically require a mature, cured compost, while an 
application for landfill cover might utilize less mature compost. As 
explained in EPA's draft RMAN issued concurrently with the proposed 
CPG, the State of Maine has developed quality standards for six 
different types of compost ranging from topsoil (three classes), to 
wetlands substrate, to mulch (two classes) (see 59 FR 18906, April 20, 
1994). These standards are being used by many State agencies in 
purchasing compost and can serve as a guide to anyone purchasing this 
item.
    In addition to the guidance afforded by the State of Maine's 
quality standards, compost suppliers can assist procuring agencies in 
determining the type(s) of compost needed for particular applications. 
The agency recommends, therefore, that when purchasing yard 
[[Page 21377]] trimmings compost, the specific use of the compost 
should be described to the supplier to ensure the purchase of a product 
compatible with the intended use.
    In the preamble to the proposed CPG, EPA also noted that the 
Composting Council, a diverse group of professionals engaged in 
promoting the beneficial use of compost, as well as a number of State 
agencies are developing standards and specifications for compost (see 
59 FR 18878, April 20, 1994). As these standards are developed, EPA 
will make their availability known to procuring agencies by referencing 
them in a future Recovered Materials Advisory Notice.
8. Office Recycling Containers and Waste Receptacles
    Comment: One commenter questioned EPA's proposed designation of 
steel office recycling containers and office waste receptacles, stating 
that the amount of steel used to manufacture such items is 
inconsequential when compared to the amount of steel produced in the 
U.S. Another commenter stated that the designation of recycling 
containers and waste receptacles made from multiple materials (i.e., 
plastic, steel, and paper) could encourage the purchase of plastic and 
paper containers rather than the traditional steel containers.
    Response: EPA encourages the use of all recovered materials in 
products and does not favor one material over another. If EPA did not 
include steel containers in its designation, procuring agencies might 
assume that EPA was recommending the use of plastic or paper containers 
only, when this is not the case. Additionally, steel containers made 
from recovered materials are readily available as are containers made 
from plastic and paper. For these reasons, the Agency believes it is 
appropriate to designate containers made from steel, paper, and 
plastic. EPA also believes that the type of containers purchased should 
be the sole decision of the procuring agencies and that they can best 
choose the product that meets their needs.
9. Toner Cartridges
    Comment: Two commenters contested EPA's designation of 
remanufactured toner cartridges, citing RCRA section 6002(e)(1) and 
Executive Order 12873 as requiring EPA to designate items made with 
``recovered,'' not ``remanufactured'' materials. The commenters further 
stated that, should EPA proceed with its designation of remanufactured 
toner cartridges, it should expand the designation to include new toner 
cartridges made from recovered materials as well.
    Response: EPA believes that the designation of remanufactured toner 
cartridges is consistent with the directives contained in RCRA section 
6002 and Executive Order 12873. EPA believes that the reuse of 
materials in remanufacturing operations falls within the statutory 
definition of ``recovered materials'' in that these are materials 
``which have been recovered or diverted from solid waste, but * * * not 
* * * generated from, and commonly reused within, an original 
manufacturing process.'' Additionally, in 1988, the Agency designated 
retread tires as a guideline item (53 FR 46558, November 17, 1988). 
Retread tires are also remanufactured items.
    EPA now has information that toner cartridges made with recovered 
materials are available for purchase. Thus, EPA agrees with the 
commenters that it is appropriate at this time to designate toner 
cartridges made with recovered materials as well as remanufactured 
toner cartridges. Therefore, the Agency has changed its designation 
from ``remanufactured toner cartridges'' to ``toner cartridges'' to 
include new cartridges made with recovered materials.
10. Binders
    Comment: Two commenters stated that EPA's proposed item designation 
for binders was incomplete because it did not mention binders made from 
pressboard.
    Response: The commenters are correct. EPA inadvertently omitted 
reference to pressboard in the proposed CPG under the erroneous 
assumption that ``pressboard'' was included in the term ``chipboard.'' 
EPA has since determined that this is not the case. For this reason, 
today's final item designation for binders references chipboard and 
pressboard, both of which are paper and paperboard products. As 
explained in the final Recovered Materials Advisory Notice that 
accompanies this final CPG, procuring agencies should rely on the 
guidance provided in Section II, Part A of the Recovered Materials 
Advisory Notice that accompanies this final CPG and in the draft Paper 
Products Recovered Materials Advisory Notice (60 FR 14182, March 15, 
1995) when purchasing chipboard or pressboard binders.

C. Other Items Considered for Designation

    In addition to the items proposed for designation, EPA listed and 
requested information on 23 items as potential items for future 
designation and 4 items that the Agency believed were inappropriate for 
designation at this time (59 FR 18881, April 20, 1994).
    EPA received comments on most of the 23 items listed as potential 
items for future designation. In addition, EPA received comments on 
pallet stretch wrap and strapping, which, at proposal, were two of the 
items EPA believed to be inappropriate to designate (59 FR 18812, April 
20, 1994). Three commenters provided information on pallet stretch wrap 
and one on strapping, indicating that these two items may be suitable 
for designation. The information provided in the comments will be 
considered when the Agency evaluates items for possible designation in 
a future update of the CPG.

D. Public Participation in Future Updates to the CPG

    In the proposed rule, the Agency announced it would develop 
procedures that would allow the public to suggest items for inclusion 
in future updates of the CPG and to provide information on products 
made from recovered materials. The proposal also solicited public 
comment on possible options for increasing public participation in 
developing updates to the CPG and RMAN. EPA did not receive any 
comments relating to this issue.
    EPA still intends to establish such a process and will issue a 
future Federal Register notice that describes this process.

IV. Availability of Designated Items

    EPA has developed lists of manufacturers and vendors of the items 
designated in today's final CPG. These lists will be updated 
periodically as new sources are identified and EPA becomes aware of 
changes in product availability. To assist procuring agencies, the 
lists will be made available at no charge by calling EPA's RCRA Hotline 
at (800) 424-9346, or, in the Washington, DC area, at (703) 412-9810. 
They also will be available for review in the RCRA Information Center 
(RIC). For additional details about the location and operating schedule 
of the RIC, see the ``Address'' section at the beginning of this 
Federal Register notice. Procuring agencies are encouraged to contact 
manufacturers and vendors directly to discuss their specific needs and 
to obtain detailed information on the availability and price of 
recycled content products meeting those needs.
    The U.S. General Services Administration (GSA) publishes an 
``Environmental Products Guide,'' which lists items available through 
its [[Page 21378]] Federal Supply Service. This Guide is updated 
periodically as new items become available. Copies of the GSA 
``Environmental Products Guide'' can be obtained by contacting GSA's 
Centralized Mailing List Service in Fort Worth, Texas at (817) 334-
5215.
    In addition to the information provided by EPA and GSA, there are 
other publicly-available sources of information about products 
containing recovered materials. For example, the ``Official Recycled 
Products Guide'' (RPG) was established in March 1989 to provide a broad 
range of information on recycled content products. Listings include 
product, company name, address, contact, telephone, fax, type of 
company (manufacturer or distributor), and minimum recycled content. 
Price information is not included. The RPG is available on a 
subscription basis from American Recycling Market, Inc., (800) 267-
0707. Private corporations that have researched recycled product 
availability may also be willing to make this information publicly 
available. For instance, as part of the McRecycle USA<Register> 
program, the McDonald's Corporation established a Registry Service for 
manufacturers and suppliers of recycled content products. The 
Corporation has compiled a database of registrants and makes this 
information available upon request. More information on the McRecycle 
USA<Register> Registry Service is available by calling (800) 220-3809.
    State and local recycling programs are also a potential source of 
information on local distributors and availability. In addition, state 
and local government purchasing officials that are contracting for 
recycled content products may have relative price information. A list 
of state purchasing/procurement officials has been placed in the RIC 
and will be updated periodically. Also included in the public docket is 
a list of states with recycled content products purchasing programs, 
current as of April 1994. Information is also available from trade 
associations whose members manufacture or distribute products 
containing recovered materials. A list of such trade associations is 
also included in the RIC.

V. Economic Impact Analysis

A. Requirements of Executive Order 12866

    Executive Order 12866 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 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; or (4) raise 
novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in the Executive 
Order.
    The cost of the rule is below the $100 million threshold. However, 
EPA believes that the rule may raise policy issues and, therefore, is 
considering it a significant regulatory action. To enable the Agency to 
evaluate the potential impact of today's action, EPA has conducted an 
Economic Impact Analysis (EIA), discussed below. For more information 
on the EIA, see ``Technical Background Document for the Comprehensive 
Procurement Guideline.''

B. Unfunded Mandates Reform Act of 1995 and Consultation With State, 
Local, and Tribal Governments

    Under section 202 of the Unfunded Mandates Reform Act of 1995 (the 
Act), Pub. L. 104-4, which was signed into law on March 22, 1995, EPA 
generally must prepare a written statement for rules with Federal 
mandates that may result in estimated costs to State, local, or tribal 
governments in the aggregate, or to the private sector, of $100 million 
or more in any one year. When such a statement is required for EPA 
rules, under section 205 of the Act EPA must identify and consider 
alternatives, including the least costly, most cost-effective or least 
burdensome alternative that achieves the objectives of the rule. EPA 
must select that alternative, unless the Administrator explains in the 
final rule why it was not selected or it is inconsistent with law. 
Before EPA establishes regulatory requirements that may significantly 
or uniquely affect small governments, including tribal governments, it 
must develop under section 203 of the Act a small government agency 
plan. The plan must provide for notifying potentially affected small 
governments, giving them meaningful and timely input in the development 
of EPA regulatory proposals with significant Federal intergovernmental 
mandates, and informing, educating, and advising them on compliance 
with the regulatory requirements.
    EPA has determined that this rule does not include a Federal 
mandate that may result in estimated annualized costs of $100 million 
or more to either State, local and tribal governments in the aggregate, 
or to the private sector. To the extent enforceable duties arise as a 
result of today's rule on State, local and tribal governments, they are 
exempt from inclusion as Federal intergovernmental mandates if such 
duties are conditions of Federal assistance. Even if they are not 
conditions of Federal assistance, such enforceable duties do not result 
in a significant regulatory action being imposed upon State, local and 
tribal governments since the estimated aggregate cost of compliance for 
them are not expected to exceed, at the maximum, $5.1 million annually. 
The cost of enforceable duties which may arise as a result of today's 
rule on the private sector are estimated not to exceed $130,000 
annually. Thus, today's rule is not subject to the written statement 
requirement in sections 202 and 205 of the Act.
    The newly designated items included in the CPG may give rise to 
additional obligations under section 6002(i) (requiring procuring 
agencies to adopt an affirmative procurement program and to amend their 
specifications) for state and local governments and tribal authorities. 
As noted above, the expense associated with any additional costs is not 
expected to exceed, at the maximum, $5.1 million annually. In 
compliance with E.O. 12875, which requires the involvement of State, 
local and tribal governments in the development of certain Federal 
regulatory actions, EPA conducted a wide outreach effort and actively 
sought the input of representatives of state, local and tribal 
governments in the process of developing the final designation. Thus, 
Agency personnel have met with their representatives in a number of 
different forums. For example, EPA staff involved in development of the 
CPG spoke and met with attendees at the annual meeting of the National 
Institute for Government Purchasing, Inc., which includes 
representatives of government purchasing offices. EPA representatives 
have met with government officials at trade association gatherings such 
as the National Recycling Coalition annual conference.
    The requirements do not significantly affect small governments 
because they are subject to the same requirements as other entities 
whose duties result from today's rule. As discussed above, the expense 
associated with any additional costs to State, local and tribal 
[[Page 21379]] governments, is not expected to exceed, at the maximum, 
$5.1 million annually. The requirements do not uniquely affect small 
governments because they have the same ability to purchase these 
designated items as other entities whose duties result from today's 
rule. Additionally, use of designated items affects small governments 
in the same manner as other such entities. Thus, any applicable 
requirements of section 203 have been satisfied.

C. Summary of Benefits

    EPA anticipates that this rule will result in increased 
opportunities for recycling and waste prevention. Waste prevention can 
reduce the nation's reliance on natural resources by reducing the 
amount of materials used in making products. This results in a 
commensurate reduction in energy use and in the generation and release 
of air and water pollutants associated with manufacturing. 
Additionally, waste prevention leads to a reduction in the 
environmental impacts of mining, harvesting, and other extraction 
processes.
    Recycling can effect the more efficient use of natural resources. 
For many products, the use of recovered materials in manufacturing can 
result in significantly lower energy and material input costs than when 
virgin raw materials are used; reduce the generation and release of air 
and water pollutants often associated with manufacturing; and reduce 
the environmental impacts of mining, harvesting, and other extraction 
of natural resources. In addition to conserving non-renewable 
resources, recycling can also divert large amounts of materials from 
landfills, conserving increasingly valuable space for the management of 
materials that truly require disposal. This reduces the need to expand 
existing or site new disposal facilities, allowing local government 
officials to devote more attention to health, education, and safety 
issues.
    By purchasing products made from recovered materials, government 
agencies can increase opportunities for realizing these benefits. On a 
national and regional level, this rule can result in expanding and 
strengthening markets for materials diverted or recovered through 
public and private collection programs. Also, since many State and 
local governments, as well as private enterprises, reference EPA 
guidelines when purchasing designated items, the CPG can result in 
increased purchase of recycled products, locally, regionally, and 
nationally.
    Finally, purchase and use of recycled products by government 
agencies can also spur private sector development of new technologies, 
creating business and employment opportunities that enhance local, 
regional, and national economies. Technological innovation associated 
with the use of recovered materials can translate into economic growth 
and make American industry more competitive in the global economy.

D. Summary of Costs

    As discussed in Section III, EPA received several comments 
regarding the cost estimates presented in the proposed CPG. Based on 
these comments and actual cost information submitted by commenting 
Federal agencies, EPA modified its approach to estimating costs 
attributable to the CPG. Details on EPA's approach for estimating costs 
presented in this subsection are included in ``Technical Background 
Document for the Comprehensive Procurement Guideline.'' This document 
is included in the RCRA docket for this rulemaking.
    As shown in Table 2 below, EPA estimates that the annualized costs 
of today's rule will range from $10 to $13 million, with costs being 
spread across all procuring agencies (i.e., Federal agencies, State and 
local agencies that use appropriated Federal funds to procure 
designated items, and contractors to all three). These costs are 
annualized over a 10-year period at a three percent discount rate. 
Because there is considerable uncertainty regarding several of the 
parameters that drive the costs, EPA conducted a sensitivity analysis 
to identify the range of potential costs of this rule. Thus, high-end 
and low-end estimates are presented along with the best estimate. The 
primary parameters affecting the range of cost estimates are the number 
of products each procuring agency is assumed to procure each year and 
the number of contractors that will be affected by this rule.

 Table 2.--Summary of Annualized Costs of CPG to All Procuring Agencies 
------------------------------------------------------------------------
                                                                 Best   
                                                               estimate 
                                                   Total         total  
              Procuring agency                  annualized    annualized
                                               costs($1000)      costs  
                                                                ($1000) 
------------------------------------------------------------------------
Federal agencies............................  $8,100-$7,500       $8,100
States......................................  1,600-1,000          1,600
Local governments...........................  3,500-1,800          2,800
Contractors.................................   130-26                 79
                                             ---------------------------
      Total.................................  13,300-10,300       12,600
------------------------------------------------------------------------

    RCRA section 6002(g) requires the Office of Federal Procurement 
Policy to report to Congress every two years on the actions taken by 
Federal agencies to comply with RCRA section 6002. In developing this 
report, OFPP requests information and data from Federal agencies 
regarding their affirmative procurement programs and related 
activities. Table 3 below presents the estimated annualized costs to 
Federal agencies, including (1) specification revision and affirmative 
procurement program modification/implementation costs, and (2) 
recordkeeping and reporting costs. The recordkeeping and reporting 
costs presented below are the likely costs that would be incurred by 
Federal agencies to maintain and compile information for and complete 
the annual OFPP information request using the existing OFPP reporting 
format (i.e., the format used to collect information for fiscal years 
1993 and 1994).

  Table 3.--Summary of Best Estimate Annualized Costs of CPG to Federal 
                                Agencies                                
------------------------------------------------------------------------
                        Specification     Recordkeeping        Total    
   Federal agency     revision and APP    and reporting     annualized  
                        costs($1000)      costs($1000)     costs($1000) 
------------------------------------------------------------------------
Civilian Agencies...            $1,100             1,600          $2,700
Defense Agencies....             2,000             3,400           5,400
                     ---------------------------------------------------
      Total.........             3,100             5,000           8,100
------------------------------------------------------------------------

    [[Page 21380]] Many Federal agencies have stated that the current 
OFPP format is overly burdensome and costly to complete. To address 
these concerns, the Office of the Federal Environmental Executive has 
formed a workgroup which includes representatives from OFPP and several 
Federal agencies to examine methods of streamlining the current 
reporting format. Based on information and data submitted by two 
Federal agencies, EPA estimates that if OFPP revised the current format 
to request data on purchases made at and above the small purchase 
threshold and only anecdotal information on small purchases and 
bankcard acquisitions, Federal recordkeeping and reporting costs could 
be reduced by 75 percent.

E. Product Cost

    Another potential cost of today's action is the possible price 
differential between an item made with recovered materials and an 
equivalent item manufactured using virgin materials. As discussed in 
the proposed CPG (59 FR 18859), relative prices of recycled content 
products compared to prices of comparable virgin products vary. In many 
cases, recycled content products may be less expensive than their 
virgin counterparts. In other cases, virgin products may have lower 
prices than recycled content products. However, other factors can also 
affect the price of virgin products. For example, temporary 
fluctuations in the overall economy can create oversupplies of virgin 
products, leading to a decrease in prices for these items. Under RCRA 
section 6002(c), procuring agencies are not required to purchase a 
product containing recovered materials if it is only available at an 
unreasonable price. However, the decision to pay more or less for such 
a product is left to the procuring agency.

F. Regulatory Flexibility Analysis

    The primary purpose of the Regulatory Flexibility Analysis is to 
identify if there is an adverse impact to small businesses that are 
directly regulated by the rule and to examine regulatory alternatives 
that fall within the scope of the statutory requirements that would 
reduce impacts to small businesses, small organizations, or small 
governmental jurisdictions subject to the regulation. The RCRA 
procurement requirements apply to procuring agencies that procure more 
than $10,000 of a designated product. No exemption is included in the 
statute for small businesses. Therefore, EPA has decided that 
alternative regulatory approaches for small businesses are not 
appropriate for this rule.
    With regard to possible impacts to small businesses, there may be 
both positive and negative impacts to individual businesses. EPA 
anticipates that this rule will provide additional opportunities for 
small recycling businesses to begin supplying recovered materials to 
manufacturers and products made from recovered materials to procuring 
agencies. In addition, other small businesses that do not directly 
contract with procuring agencies may be affected positively by the 
increased demand for recovered materials. These include small 
businesses involved in materials recovery programs and materials 
recycling. Municipalities that run recycling programs are also expected 
to benefit from the increased demand for certain recovered materials.
    EPA is unable to determine the number of small businesses that may 
be adversely impacted by this rule. It is possible that if a small 
business that currently supplies products to a procuring agency uses 
virgin materials only, the CPG may reduce its ability to compete for 
future contracts. However, the CPG will not affect existing purchase 
orders, nor will it preclude businesses from adapting their product 
lines to meet new specification or solicitation requirements for 
products containing recovered materials. Thus, many small businesses 
that market to procuring agencies have the option to adapt their 
product lines to meet specifications.

VI. Supporting Information

    In addition to the documents listed in the preamble to the proposed 
rule (59 FR 18885-18886; April 20, 1994), EPA relied on information 
contained in the following documents when developing today's final 
Comprehensive Procurement Guideline:

--``Comprehensive Procurement Guideline--Supporting Analyses,'' 
April 1995.
--``Technical Background Document for the Comprehensive Procurement 
Guideline,'' April 1995.
--``Final Summary of Responses to the Proposed Comprehensive 
Guideline for Procurement of Products Containing Recovered 
Materials,'' prepared for EPA by Science Applications International 
Corporation, Inc., March 1995.
--``Report on Research in Response to Comments on the Comprehensive 
Procurement Guideline,'' prepared for EPA by Science Applications 
International Corporation, Inc., February 1995.
--``Missing the (Steel) Mark: EPA Procurement Guidelines Fail to 
Recognize Steel,'' Bill Heenan, The Recycling Magnet, Fall 1994, p. 
2.
--Memoranda to the record and notes from ex parte communications 
with industry and other representatives.

Appendix I--Other Procedures and Policies Affecting Procurement of 
Products Containing Recovered Materials

A. Federal Acquisition Regulation

    The Federal Acquisition Regulation (FAR) (48 CFR 1) is the primary 
regulation used by Executive agencies in their acquisition of supplies 
and services. Part 23 sets forth requirements and procedures for 
Federal agencies to use when procuring EPA-designated items.

B. OFPP Policy Letter 92-4

    The White House Office of Federal Procurement Policy's Policy 
Letter 92-4, ``Procurement of Environmentally-Sound and Energy-
Efficient Products and Services'' (57 FR 53362), establishes Executive 
branch policies for the acquisition and use of environmentally-sound, 
energy-efficient products and services. In addition to reiterating the 
requirements of RCRA section 6002, the Policy Letter requires Executive 
agencies to (1) identify and procure products and services that, all 
factors taken into consideration, are environmentally-sound and energy-
efficient, and (2) employ life cycle cost analysis to assist in making 
product and service selections.

C. OMB Circular A-102

    On October 14, 1994, the White House Office of Management and 
Budget published revisions to OMB Circular A-102, ``Grants and 
Cooperative Agreements with State and Local Governments'' (59 FR 
52224). Paragraph 2(h) of the circular requires State and local 
government recipients of Federal assistance funding to comply with RCRA 
section 6002.

D. OMB Circular A-119

    OMB Circular A-119, ``Federal Participation in the Development and 
Use of Voluntary Standards'' (54 FR 57645), sets forth policy for 
Executive agencies to follow in working with voluntary standards bodies 
and in adopting and using voluntary standards. Paragraph 7(a)(4) 
recommends that Federal agencies give preference to adopting and using 
standards that ``foster materials, products, systems, or practices that 
are environmentally-sound and energy-efficient.''

E. OMB Circular A-131

    OMB Circular A-131, ``Value Engineering'' (58 FR 31056), requires 
Executive agencies to use value engineering as a management tool to 
reduce program and acquisition costs. Paragraph 8(b) requires agencies 
to [[Page 21381]] develop guidelines for both in-house personnel and 
contractors to identify programs/projects with the most potential to 
yield savings from the application of value engineering techniques. 
Paragraph 3(b)(4) further requires this guidance to ensure that the 
application of value engineering to construction and other projects/
programs includes consideration of environmentally-sound and energy-
efficient results.

List of Subjects

40 CFR Part 247

    Environmental protection, Carpet, Cement industry, Engine coolant, 
Floor tiles, Government procurement, Insulation, Landscaping industry, 
Office products, Paper and paper products industry, Park and recreation 
products, Patio blocks, Petroleum, Recycling, Tires, Traffic control 
devices.

40 CFR Parts 248, 249, 250, 252, and 253

    Cement industry, Government procurement, Insulation, Paper and 
paper products industry, Petroleum, Recycling.

    Dated: April 21, 1995.
Carol M. Browner,
Administrator.

    For the reasons set out in the preamble, title 40 of the Code of 
Federal Regulations, parts 247, 248, 249, 250, 252, and 253, are 
amended as set forth below.

PARTS 248, 249, 250, 252, AND 253--[REMOVED]

    1. Parts 248, 249, 250, 252, and 253 are removed.
    2. Part 247 is revised to read as follows.

PART 247--COMPREHENSIVE PROCUREMENT GUIDELINE FOR PRODUCTS 
CONTAINING RECOVERED MATERIALS

Subpart A--General

Sec.
247.1  Purpose and scope.
247.2  Applicability.
247.3  Definitions.
247.4  Contracting officer requirements.
247.5  Specifications.
247.6  Affirmative procurement programs.
247.7  Effective date.

Subpart B--Item Designations

247.10  Paper and paper products.
247.11  Vehicular products.
247.12  Construction products.
247.13  Transportation products.
247.14  Park and recreation products.
247.15  Landscaping products.
247.16  Non-paper office products.
247.17  Miscellaneous products. [Reserved]

    Authority: 42 U.S.C. 6912(a) and 6962; E.O. 12873, 58 FR 54911.

Subpart A--General


Sec. 247.1  Purpose and scope.

    (a) The purpose of this guideline is to assist procuring agencies 
in complying with the requirements of section 6002 of the Solid Waste 
Disposal Act, as amended by the Resource Conservation and Recovery Act 
of 1976 (RCRA), as amended, 42 U.S.C. 6962, and Executive Order 12873, 
as they apply to the procurement of the items designated in subpart B 
of this part.
    (b) This guideline designates items that are or can be made with 
recovered materials and whose procurement by procuring agencies will 
carry out the objectives of section 6002 of RCRA. EPA's recommended 
practices with respect to the procurement of specific designated items 
are found in the companion Recovered Materials Advisory Notice(s).
    (c) EPA believes that adherence to the recommendations in the 
Recovered Materials Advisory Notice(s) constitutes compliance with RCRA 
section 6002. However, procuring agencies may adopt other types of 
procurement programs consistent with RCRA section 6002.


Sec. 247.2  Applicability.

    (a)(1) This guideline applies to all procuring agencies and to all 
procurement actions involving items designated by EPA in this part, 
where the procuring agency purchases $10,000 or more worth of one of 
these items during the course of a fiscal year, or where the cost of 
such items or of functionally equivalent items purchased during the 
preceding fiscal year was $10,000 or more.
    (2) This guideline applies to Federal agencies, to State and local 
agencies using appropriated Federal funds to procure designated items, 
and to persons contracting with any such agencies with respect to work 
performed under such contracts. Federal procuring agencies should note 
that the requirements of RCRA section 6002 apply to them whether or not 
appropriated Federal funds are used for procurement of designated 
items.
    (3) The $10,000 threshold applies to procuring agencies as a whole 
rather than to agency subgroups such as regional offices or subagencies 
of a larger department or agency.
    (b) The term ``procurement actions'' includes:
    (1) Purchases made directly by a procuring agency and purchases 
made directly by any person (e.g., a contractor) in support of work 
being performed for a procuring agency, and
    (2) Any purchases of designated items made ``indirectly'' by a 
procuring agency, as in the case of procurements resulting from grants, 
loans, funds, and similar forms of disbursements of monies.
    (c)(1) This guideline does not apply to purchases of designated 
items which are unrelated to or incidental to Federal funding, i.e., 
not the direct result of a contract or agreement with, or a grant, 
loan, or funds disbursement to, a procuring agency.
    (2) This guideline also does not apply to purchases made by private 
party recipients (e.g., individuals, non-profit organizations) of 
Federal funds pursuant to grants, loans, cooperative agreements, and 
other funds disbursements.


Sec. 247.3  Definitions.

    As used in this procurement guideline and the related Recovered 
Materials Advisory Notice(s):
    Act or RCRA means the Solid Waste Disposal Act, as amended by the 
Resource Conservation and Recovery Act, as amended, 42 U.S.C 6901 et 
seq;
    Blanket insulation means relatively flat and flexible insulation in 
coherent sheet form, furnished in units of substantial area. Batt 
insulation is included in this term;
    Board insulation means semi-rigid insulation preformed into 
rectangular units having a degree of suppleness, particularly related 
to their geometrical dimensions;
    Building insulation means a material, primarily designed to resist 
heat flow, which is installed between the conditioned volume of a 
building and adjacent unconditioned volumes or the outside. This term 
includes but is not limited to insulation products such as blanket, 
board, spray-in-place, and loose-fill that are used as ceiling, floor, 
foundation, and wall insulation;
    Cellulose fiber loose-fill means a basic material of recycled wood-
based cellulosic fiber made from selected paper, paperboard stock, or 
ground wood stock, excluding contaminated materials which may 
reasonably be expected to be retained in the finished product, with 
suitable chemicals introduced to provide properties such as flame 
resistance, processing and handling characteristics. The basic 
cellulosic material may be processed into a form suitable for 
installation by pneumatic or pouring methods;
    Engine lubricating oils means petroleum-based oils used for 
reducing friction in engine parts;
    Federal agency means any department, agency, or other 
instrumentality of the Federal government; any independent agency or 
[[Page 21382]] establishment of the Federal government including any 
government corporation; and the Government Printing Office;
    Fiberglass insulation means insulation which is composed 
principally of glass fibers, with or without binders;
    Foam-in-place insulation is rigid cellular foam produced by 
catalyzed chemical reactions that hardens at the site of the work. The 
term includes spray-applied and injected applications such as spray-in-
place foam and pour-in-place;
    Gear oils means petroleum-based oils used for lubricating machinery 
gears;
    Hydraulic fluids means petroleum-based hydraulic fluids;
    Hydraulic mulch means a mulch that is a cellulose-based (paper or 
wood) protective covering that is mixed with water and applied through 
mechanical spraying in order to aid the germination of seeds and to 
prevent soil erosion;
    Hydroseeding means the process of spraying seeds mixed with water 
through a mechanical sprayer (hydroseeder). Hydraulic mulch, 
fertilizer, a tacking agent, or a wetting agent can also be added to 
the water/seed mix for enhanced performance;
    Laminated paperboard means board made from one or more plies of 
kraft paper bonded together, with or without facers, that is used for 
decorative, structural, or insulating purposes;
    Loose-fill insulation means insulation in granular, nodular, 
fibrous, powdery, or similar form, designed to be installed by pouring, 
blowing or hand placement;
    Mineral fiber insulation means insulation (rock wool or fiberglass) 
which is composed principally of fibers manufactured from rock, slag or 
glass, with or without binders;
    Paper means one of two broad subdivisions of paper products, the 
other being paperboard. Paper is generally lighter in basis weight, 
thinner, and more flexible than paperboard. Sheets 0.012 inch or less 
in thickness are generally classified as paper. Its primary uses are 
for printing, writing, wrapping, and sanitary purposes. However, in 
this guideline, the term paper is also used as a generic term that 
includes both paper and paperboard.
    Paper product means any item manufactured from paper or paperboard. 
The term paper product is used in this guideline to distinguish such 
items as boxes, doilies, and paper towels from printing and writing 
papers.
    Perlite composite board means insulation board composed of expanded 
perlite and fibers formed into rigid, flat, rectangular units with a 
suitable sizing material incorporated in the product. It may have on 
one or both surfaces a facing or coating to prevent excessive hot 
bitumen strike-in during roofing installation;
    Person means an individual, trust, firm, joint stock company, 
corporation (including a government corporation), partnership, 
association, Federal agency, State, municipality, commission, political 
subdivision of a State, or any interstate body;
    Phenolic insulation means insulation made with phenolic plastics 
which are plastics based on resins made by the condensation of phenols, 
such as phenol or cresol, with aldehydes;
    Polyisocyanurate insulation means insulation produced principally 
by the polymerization of polymeric polyisocyanates, usually in the 
presence of polyhydroxyl compounds with the addition of cell 
stabilizers, blowing agents, and appropriate catalyst to produce a 
polyisocyanurate chemical structure;
    Polystyrene insulation means an organic foam composed principally 
of polymerized styrene resin processed to form a homogenous rigid mass 
of cells;
    Polyurethane insulation means insulation composed principally of 
the catalyzed reaction product of polyisocyanates and polyhydroxyl 
compounds, processed usually with a blowing agent to form a rigid foam 
having a predominantly closed cell structure;
    Postconsumer material means a material or finished product that has 
served its intended use and has been diverted or recovered from waste 
destined for disposal, having completed its life as a consumer item. 
Postconsumer material is a part of the broader category of recovered 
materials.
    Postconsumer recovered paper means:
    (1) Paper, paperboard and fibrous wastes from retail stores, office 
buildings, homes and so forth, after they have passed through their 
end-usage as a consumer item including: Used corrugated boxes; old 
newspapers; old magazines; mixed waste paper; tabulating cards and used 
cordage; and
    (2) All paper, paperboard and fibrous wastes that enter and are 
collected from municipal solid waste;
    Practicable means capable of being used consistent with: 
Performance in accordance with applicable specifications, availability 
at a reasonable price, availability within a reasonable period of time, 
and maintenance of a satisfactory level of competition;
    Procurement item means any device, good, substance, material, 
product, or other item, whether real or personal property, which is the 
subject of any purchase, barter, or other exchange made to procure such 
item;
    Procuring agency means 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 any such agency with respect to work performed under 
such contract;
    Purchasing means the act of and the function of responsibility for 
the acquisition of equipment, materials, supplies, and services, 
including: Buying, determining the need, selecting the supplier, 
arriving at a fair and reasonable price and terms and conditions, 
preparing the contract or purchase order, and follow-up;
    Recovered materials means waste materials and byproducts which have 
been recovered or diverted from solid waste, but such term does not 
include those materials and byproducts generated from, and commonly 
reused within, an original manufacturing process;
    Recovered materials, for purposes of purchasing paper and paper 
products, means waste material and byproducts that have been recovered 
or diverted from solid waste, but such term does not include those 
materials and byproducts generated from, and commonly reused within, an 
original manufacturing process. In the case of paper and paper 
products, the term recovered materials includes:
    (1) Postconsumer materials such as--
    (i) Paper, paperboard, and fibrous wastes from retail stores, 
office buildings, homes, and so forth, after they have passed through 
their end-usage as a consumer item, including: Used corrugated boxes; 
old newspapers; old magazines; mixed waste paper; tabulating cards; and 
used cordage; and
    (ii) All paper, paperboard, and fibrous wastes that enter and are 
collected from municipal solid waste, and
    (2) Manufacturing, forest residues, and other wastes such as--
    (i) Dry paper and paperboard waste generated after completion of 
the papermaking process (that is, those manufacturing operations up to 
and including the cutting and trimming of the paper machine reel in 
smaller rolls of rough sheets) including: Envelope cuttings, bindery 
trimmings, and other paper and paperboard waste, resulting from 
printing, cutting, forming, and other converting operations; bag, box, 
and carton manufacturing wastes; and butt rolls, mill wrappers, and 
rejected unused stock; and
    (ii) Finished paper and paperboard from obsolete inventories of 
paper and [[Page 21383]] paperboard manufacturers, merchants, 
wholesalers, dealers, printers, converters, or others;
    (iii) Fibrous byproducts of harvesting, manufacturing, extractive, 
or wood-cutting processes, flax, straw, linters, bagasse, slash, and 
other forest residues;
    (iv) Wastes generated by the conversion of goods made from fibrous 
material (that is, waste rope from cordage manufacture, textile mill 
waste, and cuttings); and
    (v) Fibers recovered from waste water which otherwise would enter 
the waste stream.
    Re-refined oils means used oils from which the physical and 
chemical contaminants acquired through previous use have been removed 
through a refining process;
    Retread tire means a worn automobile, truck, or other motor vehicle 
tire whose tread has been replaced;
    Rock wool insulation means insulation which is composed principally 
from fibers manufactured from slag or natural rock, with or without 
binders;
    Specification means a description of the technical requirements for 
a material, product, or service that includes the criteria for 
determining whether these requirements are met. In general, 
specifications are in the form of written commercial designations, 
industry standards, and other descriptive references;
    Spray-in-place insulation means insulation material that is sprayed 
onto a surface or into cavities and includes cellulose fiber spray-on 
as well as plastic rigid foam products;
    Spray-in-place foam is rigid cellular polyurethane or 
polyisocyanurate foam produced by catalyzed chemical reactions that 
hardens at the site of the work. The term includes spray-applied and 
injected applications;
    State means any of the several states, the District of Columbia, 
the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American 
Samoa, and the Commonwealth of the Northern Mariana Islands;
    Structural fiberboard means a fibrous-felted, homogenous panel made 
from lignocellulosic fibers (usually wood, cane, or paper) and having a 
density of less than 31 lbs/ft\3\ but more than 10 lbs/ft\3\. It is 
characterized by an integral bond which is produced by interfelting of 
the fibers, but which has not been consolidated under heat or pressure 
as a separate stage of manufacture;
    Tire means the following types of tires: Passenger car tires, 
light- and heavy-duty truck tires, high-speed industrial tires, bus 
tires, and special service tires (including military, agricultural, 
off-the-road, and slow-speed industrial);


Sec. 247.4  Contracting officer requirements.

    Within one year after the effective date of each item designation, 
contracting officers shall require that vendors:
    (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 total material utilized for the 
performance of the contract which is recovered materials.


Sec. 247.5  Specifications.

    (a) RCRA section 6002(d)(1) required Federal agencies that have the 
responsibility for drafting or reviewing specifications for procurement 
items procured by Federal agencies to revise their specifications by 
May 8, 1986, to eliminate any exclusion of recovered materials and any 
requirement that items be manufactured from virgin materials.
    (b) RCRA section 6002(d)(2) requires that within one year after the 
publication date of each item designation by the EPA, each procuring 
agency must assure that its specifications for these items require the 
use of recovered materials to the maximum extent possible without 
jeopardizing the intended end use of these items.


Sec. 247.6  Affirmative procurement programs.

    RCRA section 6002(i) provides that each procuring agency which 
purchases items designated by EPA must establish an affirmative 
procurement program, containing the four elements listed below, for 
procuring such items containing recovered materials to the maximum 
extent practicable:
    (a) Preference program for purchasing the designated items;
    (b) Promotion program;
    (c) Procedures for obtaining estimates and certifications of 
recovered materials content and for verifying the estimates and 
certifications; and
    (d) Annual review and monitoring of the effectiveness of the 
program.


Sec. 247.7  Effective date.

    Within one year after the date of publication of any item 
designation, procuring agencies which purchase that designated item 
must comply with the following requirements of RCRA: affirmative 
procurement of the designated item (6002(c)(1) and (i)), specifications 
revision (6002(d)(2)), vendor certification and estimation of recovered 
materials content of the item (6002(c)(3) and (i)(2)(C)), and 
verification of vendor estimates and certifications (6002(i)(2)C)).

Subpart B--Item Designations


Sec. 247.10  Paper and paper products.

    Paper and paper products, excluding building and construction paper 
grades.


Sec. 247.11  Vehicular products.

    (a) Lubricating oils containing re-refined oil, including engine 
lubricating oils, hydraulic fluids, and gear oils, excluding marine and 
aviation oils.
    (b) Tires, excluding airplane tires.
    (c) Reclaimed engine coolants, excluding coolants used in non-
vehicular applications.


Sec. 247.12  Construction products.

    (a) Building insulation products, including the following items:
    (1) Loose-fill insulation, including but not limited to cellulose 
fiber, mineral fibers (fiberglass and rock wool), vermiculite, and 
perlite;
    (2) Blanket and batt insulation, including but not limited to 
mineral fibers (fiberglass and rock wool);
    (3) Board (sheathing, roof decking, wall panel) insulation, 
including but not limited to structural fiberboard and laminated 
paperboard products, perlite composite board, polyurethane, 
polyisocyanurate, polystyrene, phenolics, and composites; and
    (4) Spray-in-place insulation, including but not limited to foam-
in-place polyurethane and polyisocyanurate, and spray-on cellulose.
    (b) Structural fiberboard and laminated paperboard products for 
applications other than building insulation, including building board, 
sheathing, shingle backer, sound deadening board, roof insulating 
board, insulating wallboard, acoustical and non-acoustical ceiling 
tile, acoustical and non-acoustical lay-in panels, floor underlayments, 
and roof overlay (coverboard).
    (c) Cement and concrete, including concrete products such as pipe 
and block, containing coal fly ash or ground granulated blast furnace 
(GGBF) slag.
    (d) Carpet made of polyester fiber for use in low- and medium-wear 
applications.
    (e) Floor tiles and patio blocks containing recovered rubber or 
plastic.


Sec. 247.13  Transportation products.

    Traffic barricades and traffic cones used in controlling or 
restricting vehicular traffic. [[Page 21384]] 


Sec. 247.14  Park and recreation products.

    Playground surfaces and running tracks containing recovered rubber 
or plastic.


Sec. 247.15  Landscaping products.

    (a) Hydraulic mulch products containing recovered paper or 
recovered wood used for hydroseeding and as an over-spray for straw 
mulch in landscaping, erosion control, and soil reclamation.
    (b) Compost made from yard trimmings, leaves, and/or grass 
clippings for use in landscaping, seeding of grass or other plants on 
roadsides and embankments, as a nutritious mulch under trees and 
shrubs, and in erosion control and soil reclamation.


Sec. 247.16  Non-paper office products.

    (a) Office recycling containers and office waste receptacles.
    (b) Plastic desktop accessories.
    (c) Toner cartridges.
    (d) Binders.
    (e) Plastic trash bags.


Sec. 247.17  Miscellaneous products. [Reserved]

[FR Doc. 95-10509 Filed 4-28-95; 8:45 am]
BILLING CODE 6560-50-P