[Federal Register Volume 79, Number 207 (Monday, October 27, 2014)]
[Proposed Rules]
[Pages 63841-63846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-25418]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 79, No. 207 / Monday, October 27, 2014 / 
Proposed Rules

[[Page 63841]]



DEPARTMENT OF AGRICULTURE

7 CFR Part 3201

RIN 0599-AA23


Guidelines for Designating Biobased Products for Federal 
Procurement

AGENCY: Office of Procurement and Property Management, USDA.

ACTION: Proposed rule.

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

SUMMARY: The U.S. Department of Agriculture (USDA) is proposing to 
amend its regulations concerning guidelines for designating biobased 
products for Federal procurement, to incorporate statutory changes to 
section 9002 of the Farm Security and Rural Investment Act (the 2002 
Farm Bill) that went into effect when the Agricultural Act of 2014 (the 
2014 Farm Bill) was signed into law on February 7, 2014.

DATES: USDA will accept public comments on these proposed rule 
amendments until December 26, 2014.

ADDRESSES: You may submit comments by any of the following methods. All 
submissions received must include the agency name and Regulatory 
Information Number (RIN). The RIN for this rulemaking is 0599-AA23. 
Also, please identify submittals as pertaining to the ``Proposed 
Amendments to BioPreferred Program Guidelines.''
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#b0d2d9dfc0c2d5d6d5c2c2d5d4f0c5c3d4d19ed7dfc6"><span class="__cf_email__" data-cfemail="a8cac1c7d8dacdcecddadacdcce8dddbccc986cfc7de">[email protected]</span></a>. Include RIN number 0599-AA23 
and ``Proposed Amendments to BioPreferred Program Guidelines'' on the 
subject line. Please include your name and address in your message.
    <bullet> Mail/commercial/hand delivery: Mail or deliver your 
comments to: Ron Buckhalt, USDA, Office of Procurement and Property 
Management, Room 361, Reporters Building, 300 7th St. SW., Washington, 
DC 20024.
    <bullet> Persons with disabilities who require alternative means 
for communication for regulatory information (Braille, large print, 
audiotape, etc.) should contact the USDA TARGET Center at (202) 720-
2600 (voice) and (202) 690-0942 (TTY).

FOR FURTHER INFORMATION CONTACT: Ron Buckhalt, USDA, Office of 
Procurement and Property Management, Room 361, Reporters Building, 300 
7th St. SW., Washington, DC 20024; email: <a href="/cdn-cgi/l/email-protection#f2909b9d828097949780809796b287819693dc959d84"><span class="__cf_email__" data-cfemail="e082898f909285868592928584a095938481ce878f96">[email protected]</span></a>; phone 
(202) 205-4008. Information regarding the Federal biobased preferred 
procurement program (one part of the BioPreferred Program) is available 
on the Internet at http://www.biopreferred.gov.

SUPPLEMENTARY INFORMATION: The information presented in this preamble 
is organized as follows:

I. Authority
II. Background
III. Executive Summary
IV. Discussion of This Proposed Rule
V. Request for Comment
VI. Regulatory Information
    A. Executive Orders 12866 and 13563: Regulatory Planning and 
Review
    B. Regulatory Flexibility Act (RFA)
    C. Executive Order 12630: Governmental Actions and Interference 
With Constitutionally Protected Property Rights
    D. Executive Order 12988: Civil Justice Reform
    E. Executive Order 13132: Federalism
    F. Unfunded Mandates Reform Act of 1995
    G. Executive Order 12372: Intergovernmental Review of Federal 
Programs
    H. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    I. Paperwork Reduction Act
    J. E-Government Act Compliance

I. Authority

    The Guidelines for Designating Biobased Products for Federal 
Procurement (the Guidelines) are established under the authority of 
section 9002 of the Farm Security and Rural Investment Act of 2002 (the 
2002 Farm Bill), as amended by the Food, Conservation, and Energy Act 
of 2008 (the 2008 Farm Bill), and further amended by the Agricultural 
Act of 2014 (the 2014 Farm Bill), 7 U.S.C. 8102. (Section 9002 of the 
2002 Farm Bill, as amended by the 2008 and the 2014 Farm Bills, is 
referred to in this document as ``section 9002'').

II. Background

    As originally enacted, section 9002 provides for the preferred 
procurement of biobased products by Federal agencies. USDA proposed the 
Guidelines for implementing this preferred procurement program on 
December 19, 2003 (68 FR 70730-70746). The Guidelines were promulgated 
on January 11, 2005 (70 FR 1792), and are contained in 7 CFR part 3201, 
``Guidelines for Designating Biobased Products for Federal 
Procurement.''
    The Guidelines identify various procedures Federal agencies are 
required to follow in implementing the requirements of section 9002. 
They were modeled in part on the ``Comprehensive Procurement Guidelines 
for Products Containing Recovered Materials'' (40 CFR part 247), which 
the Environmental Protection Agency (EPA) issued pursuant to the 
Resource Conservation Recovery Act (``RCRA''), 40 U.S.C. 6962.
    On June 18, 2008, the 2008 Farm Bill was signed into law. Section 
9001 of the 2008 Farm Bill included several provisions that amended the 
provisions of section 9002. USDA subsequently amended the Guidelines to 
incorporate those provisions of the 2008 Farm Bill (79 FR 44641).
    The purpose of these proposed rule amendments is to further revise 
the Guidelines to incorporate additional changes to section 9002 that 
were included in the 2014 Farm Bill. These proposed guidelines will not 
affect products that have already been designated for Federal 
procurement preference. Any changes necessary to the existing 
designation status of products will be established by future rule-
makings.

III. Executive Summary

    USDA is proposing to amend 7 CFR part 3201 to incorporate statutory 
changes to section 9002 of the Farm Security and Rural Investment Act 
made by enactment of the Agricultural Act of 2014 on February 7, 2014. 
The remainder of this section presents a brief summary of the proposed 
amendments to the existing Guidelines and Section IV of this preamble 
presents more detailed discussions.

A. Purpose of the Regulatory Action

1. Need for the Regulatory Action
    The 2014 Farm Bill contains legislative requirements related to the 
Biobased Markets Program that cannot be implemented without the 
establishment of further guidance. For

[[Page 63842]]

example, the proposed amendments provide the framework for implementing 
the requirement that USDA promote biobased products regardless of the 
date of entry into the marketplace, thus overriding previous regulatory 
provisions excluding ``mature market'' \a\ products. The proposed 
action also responds to Congressional direction that USDA promote 
biobased products, including forest products, that apply an innovative 
approach to growing, harvesting, sourcing, procuring, processing, 
manufacturing, or application of biobased products regardless of the 
date of entry into the marketplace. This proposed regulatory action 
revises the definition of ``biobased product'' to state that the term 
includes forest products that meet biobased content requirements, 
notwithstanding the market share the product holds, the age of the 
product, or whether the market for the product is new or emerging. This 
proposed rule establishes procedures to carry out this and other 
provisions of the Agricultural Act of 2014.
---------------------------------------------------------------------------

    \a\ Mature market products previously were defined as those that 
had a significant market share prior to 1972. USDA developed this 
exclusion based on the legislative history of the 2002 Farm Bill.
---------------------------------------------------------------------------

2. Legal Authority for the Regulatory Action
    Enactment of the Agricultural Act of 2014 (Pub. L. 113-79) on 
February 7, 2014 provides the legal authority for the proposed rule.

B. Summary of Major Provisions of the Proposed Rule

1. Revisions to the BioPreferred Program Definitions
    USDA is proposing to amend 7 CFR 3201.2 by revising one definition 
and adding two new definitions for terms that are used in the 
Guidelines as a result of revisions to section 9002 made by the 2014 
Farm Bill. USDA is proposing to revise the definition of ``biobased 
product'' to state that the term includes forest products that meet 
biobased content requirements, notwithstanding the market share the 
product holds, the age of the product, or whether the market for the 
product is new or emerging.
    USDA is adding definitions for the terms ``forest product'' and 
``renewable chemical.'' These terms were defined in the text of the 
2014 Farm Bill and USDA is proposing to add them verbatim to the 
BioPreferred Program Guidelines.
    USDA is also proposing to delete the current definition of 
``forestry materials'' from section 3201.2. USDA is proposing to delete 
the existing definition of the term ``forestry materials'' because the 
newly defined term ``forest product'' is more appropriate and, thus, 
will generally replace the existing term.
2. Addition of Reporting Requirements
    USDA is also proposing to add a new paragraph (b)(1)(iv) to section 
3201.4 to require Federal agencies to report the quantities and types 
of biobased products purchased. This proposed new paragraph responds to 
specific language included in the 2014 Farm Bill and is intended to 
provide a means by which the effectiveness of the BioPreferred program 
can be measured.
3. Addition of Targeted, Biobased-Only Purchasing Requirement
    USDA is also proposing to add a new paragraph (b)(4) to section 
3201.4 ``Procurement programs.'' This new paragraph would add the 2014 
Farm Bill requirement that Federal procuring agencies establish a 
targeted biobased-only procurement requirement under which the 
procuring agency must issue a certain number of biobased-only contracts 
when the agency is purchasing products, or purchasing services that 
include the use of products, that are included in a biobased product 
category designated by the Secretary.
4. Addition of Criteria for Evaluating ``Innovative Approaches''
    USDA is also proposing to add paragraphs to section 3201.5 
``Category designation'' to expand the description of the procedures 
and considerations for designating product categories, including those 
product categories that were excluded from the BioPreferred program 
under the previous mature market products exclusion. The Conference 
Report on the 2014 Farm Bill states: ``It is the Managers' intention 
that all products in the program use innovative approaches in the 
growing, harvesting, sourcing, procuring, processing, manufacturing, or 
application of the biobased product.'' USDA is, therefore, proposing 
criteria to be used when evaluating whether biobased products meet the 
requirement to use ``innovative approaches.''

C. Costs, Benefits, and Transfers

----------------------------------------------------------------------------------------------------------------
               Type                          Costs                    Benefits                  Transfers
----------------------------------------------------------------------------------------------------------------
Quantitative.....................  Unable to quantify at      Unable to quantify at     Unable to quantify at
                                    this time; USDA seeks      this time; USDA seeks     this time; USDA seeks
                                    comments that would help   comments that would       comments that would
                                    to inform a quantitative   help to inform a          help to inform a
                                    estimate of impacts.       quantitative estimate     quantitative estimate
                                                               of impacts.               of impacts.
Qualitative......................  1. Costs of developing     Advances the objectives   1. Opens new (Federal)
                                    biobased alternative       of the BioPreferred       market for biobased
                                    products;                  program, as envisioned    products that USDA
                                   2. Costs to gather and      by Congress in            newly designates.
                                    submit biobased product    developing the 2002,     2. Opportunity for newly
                                    information for            2008, and 2014 Farm       developed biobased
                                    BioPreferred Web site;.    Bills.                    products to be
                                                                                         publicized via
                                                                                         BioPreferred Web site.
                                                                                        3. Loss of market share
                                                                                         by manufacturers who
                                                                                         choose not to offer
                                                                                         biobased versions of
                                                                                         products.
----------------------------------------------------------------------------------------------------------------

IV. Discussion of This Proposed Rule

    USDA is proposing to amend four sections of 7 CFR part 3201, as 
described below.

A. 7 CFR 3201.2--Definitions

    USDA is proposing to amend 7 CFR 3201.2 by revising one existing 
definition and adding two new definitions for terms that are used in 
the Guidelines as a result of revisions to section 9002 made by the 
2014 Farm Bill.
    USDA is proposing to revise the existing definition of the term 
``biobased product'' to include a statement that the term includes 
forest products that meet biobased content requirements,

[[Page 63843]]

notwithstanding the market share the product holds, the age of the 
product, or whether the market for the product is new or emerging. The 
addition of this statement to the definition of ``biobased product'' is 
taken directly from the language in the 2014 Farm Bill and emphasizes 
Congress' intention that the mature market exclusion be removed and 
that most forest products be accepted into the BioPreferred program.
    USDA is adding definitions for the terms ``forest product'' and 
``renewable chemicals.'' These terms were defined in the text of the 
2014 Farm Bill and USDA is proposing to add them verbatim to the 
BioPreferred Program Guidelines. The term ``forest product'' is used in 
language clarifying Congress' intent that these products, regardless of 
the market share the product holds, the age of the product, or whether 
the product's market is new or emerging, are eligible for the 
procurement and labeling program as long as the product meets biobased 
content requirements and use innovative approaches in the growing, 
harvesting, sourcing, procuring, processing, manufacturing, or 
application of the biobased product.
    The term ``renewable chemical'' is also defined in the 2014 Farm 
Bill and USDA is proposing to add this definition to the BioPreferred 
Program Guidelines. Both the 2008 and 2014 Farm Bills emphasize 
Congress' intent that USDA include intermediate ingredients and 
feedstock materials in the BioPreferred program and renewable chemicals 
make up a significant portion of these biobased materials. USDA 
believes that having a clear definition of the term ``renewable 
chemicals'' will be useful as intermediate ingredients and feedstock 
materials are incorporated into the BioPreferred program.
    USDA is proposing to delete the existing definition of the term 
``forestry materials'' because it is no longer needed. The term 
``forest product'' is more appropriate and, thus, will essentially 
replace the existing term.

B. 7 CFR 3201.4--Procurement Programs

    USDA is proposing to add a new paragraph (b)(1)(iv) to section 
3201.4 to address the language in the 2014 Farm Bill that requires 
Federal agencies to report the quantities and types of biobased 
products purchased. This proposed reporting requirement is intended to 
provide a means by which the effectiveness of the BioPreferred program 
can be measured.
    USDA is also proposing to add a new paragraph (b)(4) that specifies 
that Federal procuring agencies must establish a targeted biobased-only 
procurement requirement under which the procuring agency shall issue a 
certain number of biobased-only contracts when the procuring agency is 
purchasing products, or purchasing services that include the use of 
products, that are included in a biobased product category designated 
by the Secretary. This requirement is specified in the text of the 2014 
Farm Bill and USDA is proposing to incorporate it into the Guidelines 
using the language as it appears there. The targeted biobased-only 
procurement requirement will result in increased opportunities for 
biobased product manufacturers to market their products.

C. 7 CFR 3201.5--Category Designation

    The text of the 2014 Farm Bill includes a statement that the 
Guidelines for the BioPreferred program shall ``promote biobased 
products, including forest products, that apply an innovative approach 
to growing, harvesting, sourcing, procuring, processing, manufacturing, 
or application of biobased products regardless of the date of entry 
into the marketplace.'' Product categories that were previously 
considered to be mature market products and, thus, ineligible for the 
BioPreferred program will now be included in the program if 
manufacturers demonstrate that they apply an ``innovative approach'' in 
the life cycle of their product. Working in conjunction with the USDA 
Forest Products Laboratory, as required by the 2014 Farm Bill (Section 
9002(h)), USDA has developed proposed criteria that would be used in 
evaluating whether the ``innovative approach'' requirement has been met 
for a product category under consideration for designation. USDA is 
proposing that reserved paragraph (b)(2) of section 3201.5 now be used 
to present the criteria for evaluating products that were excluded 
under the mature markets exclusion.
    USDA is proposing that any one or more of four possible criteria 
must be met to demonstrate that a biobased product uses ``innovative 
approaches.'' The first possible criterion would require that the 
product or material is either used or applied in applications that 
differ from historical applications or that the product or material is 
grown, harvested, manufactured, processed, sourced, or applied in other 
innovative ways. There is an unknown, ever changing, and potentially 
very large number of innovative approaches that may be used in the 
manufacturing and/or application of biobased products. Therefore, USDA 
will review information supporting claims of meeting criterion number 
one and will approve the claims on a case-by-case basis.
    The second possible criterion would require that the product or 
material is manufactured or processed using renewable, biomass energy 
or using technology that is demonstrated to increase energy efficiency 
or reduce reliance on fossil fuel based energy sources or that the 
product or material is manufactured or processed with technologies that 
ensure high feedstock material recovery and use.
    The third possible criterion would require that the product or 
material has a current Environmental Product Declaration as defined by 
International Standard ISO 14025, Environmental Labels and 
Declarations--Type III Environmental Declarations--Principles and 
Procedures.
    The fourth possible criterion would require that the product or 
material is either:
    1. Sourced from a Legal Source (see Note below), a Responsible 
Source, or a Certified Source as designated by ASTM D7612-10, Standard 
Practice for Categorizing Wood and Wood-Based Products According to 
Their Fiber Sources, or
    2. 100% resourced or recycled (such as material obtained from 
building deconstruction), or
    3. from an urban environment and is acquired as a result of 
activities related to a natural disaster, land clearing, right-of-way 
maintenance, tree health improvement, or public safety.

    Note:  In item 1 above, the term ``legal source'' (also referred 
to as a ``non-controversial source'') means that the wood fibers are 
from jurisdictions with a low risk of illegal activity or from 
controlled wood standards, stair-step standards, legality 
assessments, or other proprietary standards. Products from non-
controversial sources are traceable to the applicable jurisdiction, 
or chain of custody.
    ``Responsible source'' means that the wood fibers are acquired 
from a legal source utilizing independently certified procurement 
standards or are from a proprietary forestry standard or from 
jurisdictions with regulatory or quasi-regulatory programs to 
implement best management practices.
    ``Certified sources'' means wood fiber acquired in accordance 
with, and independently certified to, an internationally recognized 
voluntary forest certification standard or equivalent.

    USDA believes that meeting any one or more of these four criteria 
would be an acceptable demonstration that a biobased product uses 
innovative approaches in either the growing, harvesting, sourcing, 
procuring, processing, manufacturing, or application of the product.

[[Page 63844]]

D. 7 CFR 3201.6--Providing Product Information to Federal Agencies

    USDA is proposing to revise paragraph (a)(1) to read ``The Web site 
will, as determined to be necessary by the Secretary based on the 
availability of data, provide information as to the availability, 
price, biobased content, performance and environmental and public 
health benefits of the designated product categories and designated 
intermediate ingredient or feedstock categories. The 2014 Farm Bill 
added the phrase ``as determined to be necessary by the Secretary based 
on the availability of data'' to the description of the types of data 
to be provided by USDA.

V. Request for Comment

    USDA is requesting comment on all aspects of these proposed 
amendments to the Guidelines. In particular, USDA requests that 
stakeholders provide comment on the following topics:
    1. Whether the proposed definitions are clear, complete, and 
appropriate.
    2. Whether the criteria that are being proposed for use in 
determining if biobased products meet the requirement to apply an 
``innovative approach'' are appropriate and, if not, specific 
recommendations on alternative criteria. USDA is particularly 
interested in expanding the criteria to apply to products made from 
traditional materials such as cotton, wool, leather, or other biobased 
materials.
    3. Whether the requirement that Federal procuring agencies 
establish a targeted biobased-only procurement requirement under which 
the procuring agency must issue a certain number of biobased-only 
contracts when the agency is purchasing products, or purchasing 
services that include the use of products should be more specific 
(i.e., establish a minimum percentage to define the ``certain number of 
biobased-only contracts'').

VI. Regulatory Information

A. Executive Orders 12866 and 13563: Regulatory Planning and Review

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a ``significant regulatory 
action'' under section 3(f) of Executive Order 12866. Accordingly, the 
rule has been reviewed by the Office of Management and Budget.
1. Need for the Rule
    This proposed rule would amend the BioPreferred Program Guidelines 
to establish the regulatory framework for the designation of product 
categories that were previously excluded from the Federal procurement 
preference because they were mature market products. The designation of 
such products is specifically required under the Agricultural Act of 
2014, which states that the Guidelines shall: ``(vi) promote biobased 
products, including forest products, that apply an innovative approach 
to growing, harvesting, sourcing, procuring, processing, manufacturing, 
or application of biobased products regardless of the date of entry 
into the marketplace.''
2. Transfers
    This rule advances the objectives of the BioPreferred program, as 
envisioned by Congress in the 2002, 2008 and 2014 Farm Bills, by 
expanding the scope of products that may be considered for Federal 
procurement preference. The entry into the BioPreferred program of 
biobased products that were previously considered to be mature market 
products will open a new Federal market for biobased products that are 
designated by USDA and also provides newly developed biobased products 
to be publicized via the BioPreferred Web site. Thus, the rule is 
expected to increase demand for these products once designated, which, 
in turn, is expected to increase demand for those agricultural products 
that can serve as ingredients and feedstocks. This Federal procurement 
preference will thus yield private benefits for businesses producing 
these ingredients and feedstocks.
    Simultaneously, this action would reduce demand for products that 
do not receive Federal Procurement Preference designation. Producers of 
biobased products, including intermediate ingredients and feedstocks, 
that are not so designated or producers of non-biobased products could 
face a loss of market share within Federal procurement. We request 
information that would help us quantify the shift in product sales 
resulting from this action.
3. Costs
    Manufacturers of biobased products will incur the actual costs of 
developing the biobased products as well as the costs to gather and 
submit the biobased product information for the BioPreferred Web site. 
The costs of developing and marketing new products is, in this case, a 
voluntary expense if manufacturers choose to pursue a share of the 
biobased product market.
    Although this proposed rule would amend or establish procedures for 
designating qualifying biobased product categories, no product 
categories are proposed to be designated today. The actual designation 
of biobased product categories under this program will be accomplished 
through future rulemaking actions and the effect of those rulemakings 
on the economy will be addressed at that time.

B. Regulatory Flexibility Act (RFA)

    The RFA, 5 U.S.C. 601-602, generally requires an agency to prepare 
a regulatory flexibility analysis of any rule subject to notice and 
comment rulemaking requirements under the Administrative Procedure Act 
or any other statute unless the agency certifies that the rule will not 
have a significant economic impact on a substantial number of small 
entities. Small entities include small businesses, small organizations, 
and small governmental jurisdictions.
    Although the BioPreferred program ultimately may have a direct 
impact on a substantial number of small entities, USDA has determined 
that this proposed rule itself will not have a direct significant 
economic impact on a substantial number of small entities. This rule 
will directly affect Federal agencies, which will be required to 
consider designated products for purchase. In addition, private sector 
manufacturers and vendors of biobased products voluntarily may provide 
information to USDA through the means set forth in this rule. However, 
the rule imposes no requirement on manufacturers and vendors to do so, 
and does not differentiate between manufacturers and vendors based on 
size. USDA does not know how many small manufacturers and vendors may 
opt to participate at this stage of the program.
    As explained above, when USDA issues a proposed rulemaking to 
designate product categories for preferred procurement under this 
program, USDA will assess the anticipated impact of such designations, 
including the impact on small entities. USDA anticipates that this 
program will positively impact small entities that manufacture or sell 
biobased products. For example, once product categories are designated, 
this program will provide additional opportunities for small businesses 
to manufacture and

[[Page 63845]]

sell biobased products to Federal agencies. This program also will 
impact indirectly small entities that supply biobased materials to 
manufacturers. Additionally, this program may decrease opportunities 
for small businesses that manufacture or sell non-biobased products or 
provide components for the manufacturing of such products. It is 
difficult for USDA to definitively assess these anticipated impacts on 
small entities until USDA proposes product categories for designation. 
This rule does not designate any product categories.

C. Executive Order 12630: Governmental Actions and Interference With 
Constitutionally Protected Property Rights

    This proposed rule has been reviewed in accordance with Executive 
Order 12630, Governmental Actions and Interference with 
Constitutionally Protected Property Rights, and does not contain 
policies that would have implications for these rights.

D. Executive Order 12988: Civil Justice Reform

    This proposed rule has been reviewed in accordance with Executive 
Order 12988, Civil Justice Reform. This rule would not preempt State or 
local laws, is not intended to have retroactive effect, and would not 
involve administrative appeals.

E. Executive Order 13132: Federalism

    This proposed rule would not have sufficient federalism 
implications to warrant the preparation of a Federalism Assessment. 
Provisions of this rule would not have a substantial direct effect on 
States or their political subdivisions or on the distribution of power 
and responsibilities among the various government levels.

F. Unfunded Mandates Reform Act of 1995

    This proposed rule contains no Federal mandates under the 
regulatory provisions of Title II of the Unfunded Mandates Reform Act 
of 1995 (UMRA), 2 U.S.C. 1531-1538, for State, local, and tribal 
governments, or the private sector. Therefore, a statement under 
section 202 of UMRA is not required.

G. Executive Order 12372: Intergovernmental Review of Federal Programs

    For the reasons set forth in the Final Rule Related Notice for 7 
CFR part 3015, subpart V (48 FR 29115, June 24, 1983), this program is 
excluded from the scope of the Executive Order 12372, which requires 
intergovernmental consultation with State and local officials. This 
program does not directly affect State and local governments.

H. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This proposed rule has been reviewed in accordance with the 
requirements of Executive Order 13175, Consultation and Coordination 
with Indian Tribal Governments. The review reveals that this proposed 
regulation will not have substantial and direct effects on Tribal 
governments and will not have significant Tribal implications.

I. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 through 3520), the information collection under the Guidelines is 
currently approved under OMB control number 0503-0011.

J. E-Government Act Compliance

    USDA is committed to compliance with the E-Government Act, which 
requires Government agencies, in general, to provide the public the 
option of submitting information or transacting business electronically 
to the maximum extent possible. USDA is implementing an electronic 
information system for posting information voluntarily submitted by 
manufacturers or vendors on the products they intend to offer for 
Federal preferred procurement under each designated item. For 
information pertinent to E-Government Act compliance related to this 
rule, please contact Ron Buckhalt at (202) 205-4008.

List of Subjects in 7 CFR Part 3201

    Biobased products, Procurement.

    For the reasons stated in the preamble, the Department of 
Agriculture is proposing to amend 7 CFR part 3201 as follows:

PART 3201--GUIDELINES FOR DESIGNATING BIOBASED PRODUCTS FOR FEDERAL 
PROCUREMENT

0
1. The authority citation for part 3201 continues to read as follows:

    Authority:  7 U.S.C. 8102.

0
2. Section 3201.2 is amended by:
0
a. Revising the definition of ``Biobased product'';
0
b. Removing the definition of ``Forestry materials''; and
0
c. Adding, in alphabetical order, definitions for ``Forest product'' 
and ``Renewable chemical''.
    The revision and additions read as follows:


Sec.  3201.2  Definitions.

* * * * *
    Biobased product. (1) A product determined by USDA to be a 
commercial or industrial product (other than food or feed) that is:
    (i) Composed, in whole or in significant part, of biological 
products, including renewable domestic agricultural materials and 
forestry materials; or
    (ii) An intermediate ingredient or feedstock.
    (2) The term ``biobased product'' includes, with respect to 
forestry materials, forest products that meet biobased content 
requirements, notwithstanding the market share the product holds, the 
age of the product, or whether the market for the product is new or 
emerging.
* * * * *
    Forest product. A product made from materials derived from the 
practice of forestry or the management of growing timber. The term 
``forest product'' includes:
    (1) Pulp, paper, paperboard, pellets, lumber, and other wood 
products; and
    (2) Any recycled products derived from forest materials.
* * * * *
    Renewable chemical. A monomer, polymer, plastic, formulated 
product, or chemical substance produced from renewable biomass.
* * * * *
0
3. Section 3201.4 is amended by revising paragraphs (b)(1)(i) through 
(iii) and adding paragraphs (b)(1)(iv) and (b)(4) to read as follows:


Sec.  3201.4  Procurement programs.

* * * * *
    (b) * * *
    (1) * * *
    (i) A preference program for purchasing qualified biobased 
products;
    (ii) A promotion program to promote the preference program;
    (iii) Provisions for the annual review and monitoring of the 
effectiveness of the procurement program; and
    (iv) Provisions for reporting quantities and types of biobased 
products purchased by the Federal agency.
* * * * *
    (4) No later than [insert date 1 year after publication of final 
rule in the Federal Register], each Federal agency shall establish a 
targeted biobased-only procurement requirement under which the 
procuring agency shall issue a certain number of biobased-only 
contracts when the procuring agency is purchasing products, or 
purchasing services that include the use of products, that are included 
in a

[[Page 63846]]

biobased product category designated by the Secretary.
* * * * *
0
4. Section 3201.5 is amended by adding paragraph (b)(2) to read as 
follows:


Sec.  3201.5  Category designation.

    (b) * * *
    (2) In designating product categories and intermediate ingredient 
or feedstock categories for the BioPreferred program, USDA will 
consider as eligible only those products that use innovative approaches 
in the growing, harvesting, sourcing, procuring, processing, 
manufacturing, or application of the biobased product. USDA will 
consider products that meet one or more of the criteria in paragraphs 
(b)(2)(i) through (iv) of this section to be eligible for the 
BioPreferred program. USDA may exclude from the BioPreferred program 
any products whose manufacturers are unable to provide USDA with the 
documentation necessary to verify claims that innovative approaches are 
used in the growing, harvesting, sourcing, procuring, processing, 
manufacturing, or application of their biobased products.
    (i) Product applications. (A) The product or material is used or 
applied in applications that differ from historical applications; or
    (B) The product or material is grown, harvested, manufactured, 
processed, sourced, or applied in other innovative ways.
    (ii) Manufacturing and processing. (A) The product or material is 
manufactured or processed using renewable, biomass energy or using 
technology that is demonstrated to increase energy efficiency or reduce 
reliance on fossil-fuel based energy sources; or
    (B) The product or material is manufactured or processed with 
technologies that ensure high feedstock material recovery and use.
    (iii) Environmental Product Declaration. The product has a current 
Environmental Product Declaration as defined by International Standard 
ISO 14025, Environmental Labels and Declarations--Type III 
Environmental Declarations--Principles and Procedures.
    (iv) Raw material sourcing. (A) The raw material used in the 
product is sourced from a Legal Source, a Responsible Source, or a 
Certified Source as designated by ASTM D7612-10, Standard Practice for 
Categorizing Wood and Wood-Based Products According to Their Fiber 
Sources, or:
    (B) The raw material used in the product is 100% resourced or 
recycled (such as material obtained from building deconstruction), or
    (C) The raw material used in the product is from an urban 
environment and is acquired as a result of activities related to a 
natural disaster, land clearing, right-of-way maintenance, tree health 
improvement, or public safety.
* * * * *
0
5. Section 3201.6 is amended by revising the first sentence of 
paragraph (a)(1) to read as follows:


Sec.  3201.6  Providing product information to Federal agencies.

    (a)
    (1) * * * The Web site will, as determined to be necessary by the 
Secretary based on the availability of data, provide information as to 
the availability, price, biobased content, performance and 
environmental and public health benefits of the designated product 
categories and designated intermediate ingredient or feedstock 
categories. * * *
* * * * *

    Dated: October 15, 2014.
Gregory L. Parham,
Assistant Secretary For Administration, U.S. Department of Agriculture.
[FR Doc. 2014-25418 Filed 10-24-14; 8:45 am]
BILLING CODE 3410-93-P


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