63846 Federal Register / Vol. 79, No. 207 / Monday, October 27, 2014 / Proposed Rules 

biobased product category designated by 

the Secretary. 

* * * * * 

■ 4. Section 3201.5 is amended by 

adding paragraph (b)(2) to read as 

follows: 

§ 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 fossilfuel 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. 

* * * * * 

■ 5. Section 3201.6 is amended by 

revising the first sentence of paragraph 

(a)(1) to read as follows: 

§ 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 

DEPARTMENT OF AGRICULTURE 

7 CFR Part 3202 

RIN 0599–AA22 

Voluntary Labeling Program for 

Biobased Products 

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 the 

Voluntary Labeling Program for 

Biobased Products, 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–AA22. Also, 

please identify submittals as pertaining 

to the ‘‘Proposed Amendments to 

Voluntary Labeling Program for 

Biobased Products.’’ 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: biopreferred@usda.gov. 

Include RIN number 0599–AA22 and 

‘‘Proposed Amendments to the 

Voluntary Labeling Program for 

Biobased Products’’ on the subject line. 

Please include your name and address 

in your message. 

• 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. 

• 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: 

biopreferred@usda.gov; phone (202) 

205–4008. Information regarding the 

Voluntary Labeling Program for 

Biobased Products (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 Voluntary Labeling Program for 

Biobased Products was established 


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aMature 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. 

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 

Section 9002 establishes a program for 

preferred procurement of biobased 

products by Federal agencies and a 

voluntary program for the labeling of 

biobased products. These two programs 

are referred to collectively by USDA as 

the BioPreferred® program. 

Under the preferred procurement 

program, Federal agencies and their 

contractors are required to purchase 

biobased products, as defined in 

regulations implementing the statute, 

that are within designated product 

categories when the cumulative 

purchase price of the products to be 

procured is more than $10,000 or when 

the quantities of functionally equivalent 

items purchased over the preceding 

fiscal year equaled $10,000 or more. The 

final rules under which the preferred 

procurement program operates are 

found at 7 CFR part 3201, ‘‘Guidelines 

for Designating Biobased Products for 

Federal Procurement.’’ In a separate 

rulemaking, the provisions of the 

Guidelines are being amended to reflect 

the provisions of the 2014 Farm Bill. 

The final rules for the voluntary 

labeling program, under which USDA 

authorizes manufacturers and vendors 

of biobased products to use a ‘‘USDA 

Certified Biobased Product’’ label 

(hereafter referred to in this preamble as 

‘‘the certification mark’’), are found at 7 

CFR part 3202. The voluntary labeling 

program is intended to encourage the 

purchase and use of biobased products 

by reaching beyond the Federal 

purchasing community and promoting 

the purchase of biobased products by 

commercial entities and the general 

public. In establishing this program, 

USDA identified the criteria to 

determine those products on which the 

certification mark may be used and 

developed specific requirements for 

how the mark can be used. It is USDA’s 

intent that the presence of the 

certification mark on a product will 

mean that the labeled product is one for 

which credible factual information is 

available as to the biobased content, 

consistently measured across labeled 

products by use of the American Society 

of Testing and Materials (ASTM) 

radioisotope test D6866. 

On July 31, 2009, USDA published a 

proposed rule for the voluntary labeling 

program under the authority of section 

9002 (74 CFR 38295). The voluntary 

labeling program final rule was 

promulgated on January 20, 2011 (76 FR 

3790). 

On February 7, 2014, the 2014 Farm 

Bill was signed into law and included 

several provisions that amended the 

provisions of section 9002. The primary 

purpose of this proposed rule 

amendments is to revise the voluntary 

labeling program final rule to 

incorporate changes to section 9002 that 

were included in the 2014 Farm Bill. 

USDA is also proposing certain 

clarifying amendments to the program 

rules based on several years of operating 

experience. These proposed 

amendments will not affect the status of 

products that have already been 

certified by USDA to display the 

certification mark. However, when Stage 

3 of the auditing program (7 CFR part 

3202, section 3202.10) is conducted in 

2016, manufacturers whose product 

certification is at least 5 years old will 

incur additional costs of about $400 per 

certified product for biobased content 

re-testing. 

III. Executive Summary 

USDA is proposing to amend 7 CFR 

part 3202 to incorporate the 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. USDA is also 

proposing amendments that clarify the 

rules under which the voluntary 

labeling program operates. The 

remainder of this section presents a 

brief summary of the proposed 

amendments to the existing voluntary 

labeling program rules 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 further 

guidance. For 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 products.a 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 2014 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 amendments. 

B. Summary of Major Provisions of the 

Proposed Rule 

The following paragraphs present a 

brief summary of the changes being 

proposed to the voluntary labeling 

program rules by this action. More 

detailed discussions of the proposed 

changes are presented in Section IV of 

this preamble. 

1. Revisions to Section 3202.2

‘‘Definitions’’ 

USDA is proposing to amend 7 CFR 

3202.2 by deleting the definitions of 

‘‘BioPreferred Product,’’ ‘‘Designated 

item,’’ and ‘‘Mature market products.’’ 

USDA is also proposing to revise the 

definitions of ‘‘Biobased product,’’ 

‘‘Certification mark artwork,’’ and 

‘‘Intermediate ingredient or feedstock’’ 

and to add new definitions for 

‘‘Designated product category,’’ ‘‘Forest 

product,’’ ‘‘Qualified biobased product,’’ 

and ‘‘Renewable chemical.’’ These 

changes are proposed to bring the 

voluntary labeling rule up to date with 

the BioPreferred program Guidelines 

and the 2014 Farm Bill. 

2. Revisions to Section 3202.4

‘‘Criteria for Product Eligibility To Use 

the Certification Mark’’ 

USDA is proposing to add a paragraph 

and subparagraphs to section 3202.4 

that describe the biobased content 

criteria for complex assemblies. 

Procedures for designating complex 

assemblies for the Federal preferred 

procurement initiative have been added 

to the BioPreferred program Guidelines 

and this proposed action would update 


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63848 Federal Register / Vol. 79, No. 207 / Monday, October 27, 2014 / Proposed Rules 

the voluntary labeling program rules to 

include these products. 

USDA is also proposing to add 

paragraphs to section 3202.4 to present 

the criteria for evaluating whether 

products use ‘‘innovative approaches.’’ 

The Conference Report on the 2014 

Farm Bill states that ‘‘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.’’ 

3. Revisions to Section 3202.5 ‘‘Initial 

Approval Process’’ 

USDA is proposing to amend 

paragraph (a)(1) to specifically address 

situations where a manufacturer seeks 

certification for a new product that is 

composed of the same biobased 

ingredients and has the same biobased 

content as a previously certified 

product. In these cases, where a new 

product for which certification is sought 

is composed of the same biobased 

ingredients and has the same biobased 

content as a product that has already 

been certified, the manufacturer may, in 

lieu of having the new product tested, 

self-declare the biobased content of the 

new product by referencing the tested 

biobased content of the certified 

product. Certification of the original 

product must have been obtained by 

either the manufacturer of the new 

product or by the supplier of the 

biobased ingredients used in the new 

product. This proposed provision would 

result in reduced biobased content 

testing, and thus a cost savings, for 

manufacturers who use the same 

biobased ingredients to formulate 

products that differ in size or shape or 

that are marketed for different 

applications. 

USDA is also proposing to amend 

paragraph (c)(5) to state that 

manufacturers wishing to change the 

name of their company or the name of 

a certified product must notify USDA in 

writing within 30 days of making such 

changes. 

USDA is also proposing to amend 

paragraph (d)(2) to clarify that, although 

certifications do not have a 

predetermined expiration date, they are 

subject to mandatory periodic auditing 

activities and to suspension or 

revocation if biobased content violations 

are identified. USDA is also amending 

this paragraph to allow for the 

revocation of a certification if it is 

discovered that certification was issued 

as a result of error(s) on the part of 

USDA during the approval process. 

4. Revisions to Section 3202.8

‘‘Violations’’ 

USDA is proposing to amend 

paragraph 3202.8(c)(3) to correct an 

error in a reference cited in the 

paragraph. The reference to 7 CFR part 

3017 is incorrect. The appropriate 

references are 2 CFR part 417 and 48 

CFR subpart 9.4. 

5. Revisions to Section 3202.10

‘‘Oversight and Monitoring’’ 

USDA is proposing to add a new 

section 3202.10(d) that identifies three 

auditing efforts that will be ongoing for 

the voluntary labeling program. The 

2014 Farm Bill contained specific 

language authorizing USDA to perform 

auditing and compliance activities 

necessary to ensure that the label is 

used only on products that meet the 

established eligibility criteria. 

USDA expects to conduct audits of 

the voluntary labeling program on an 

ongoing basis with audit activities 

conducted every other calendar year (biannually). Audit activities will include 

three stages and will be conducted in 

sequential order. Stage 1 was conducted 

in 2012, Stage 2 will be conducted in 

2014, and Stage 3 will be conducted in 

2016. In 2018, the sequence will start 

over with Stage 1. 

Stage 1 auditing includes contacting 

all participants via email and requesting 

that they complete a ‘‘Declaration of 

Conformance Form.’’ Program 

participants are asked to confirm that 

they still manufacture the product and 

that the formulation and manufacturing 

processes remain the same. 

Stage 2 auditing consists of a random 

sampling of certified products to 

confirm the accuracy of biobased 

content percentages claimed. The 

participants whose products are 

selected will be required to submit 

product samples to be tested by 

independent testing labs at USDA 

expense. 

Stage 3 auditing requires 

manufacturers of products that have 

been certified for 5 years or more to 

have their products re-tested at their 

expense to confirm that the biobased 

content remains at or above the level at 

which the product was originally 

certified. 

USDA believes that the audit program 

outlined above will be a valuable tool in 

ensuring the integrity of the program 

and compliance with the voluntary 

labeling program rules. 

C. Costs, Benefits, and Transfers 

Type Costs Benefits Transfers 

Quantitative ............. Unable to quantify at this time; USDA 

seeks comments that would help to 

inform a quantitative estimate of impacts.

Unable to quantify at this time; USDA 

seeks comments that would help to 

inform a quantitative estimate of impacts.

Unable to quantify at this time; USDA 

seeks comments that would help to 

inform a quantitative estimate of impacts. 

Qualitative ............... 1. Costs of developing biobased alternative products; 

2. Costs to gather and submit 

biobased product information for 

BioPreferred Web site; 

Advances the objectives of the BioPreferred program, as envisioned by 

Congress in developing the 2002, 

2008, and 2014 Farm Bills.

1. Opens new (Federal) market for 

biobased products that USDA newly 

designates. 

2. Opportunity for newly developed 

biobased 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 five 

sections of 7 CFR part 3202, as 

described below. 

A. 7 CFR 3202.2—Definitions 

USDA is proposing to amend 7 CFR 

3202.2 by revising three existing 

definitions and adding four new 

definitions for terms that are used in the 

voluntary labeling program rules as a 

result of revisions to section 9002 made 

by the 2014 Farm Bill. USDA is also 

proposing to delete three definitions 

that are no longer applicable. The 

proposed changes to section 3202.2 are 


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discussed in more detail in the 

following paragraphs. 

USDA is proposing to revise the 

existing definition of the term ‘‘biobased 

product’’ to add a statement 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. 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 forest products be accepted 

into the BioPreferred program. 

USDA is proposing to revise the 

definition of the term ‘‘certification 

mark artwork’’ by replacing the graphic 

images of the three variations of the 

certification mark with slightly updated 

images. In the updated images, the ‘‘FP’’ 

letters indicating that the product is 

eligible for Federal preferred 

procurement have been moved so that 

they show up better and a solid line has 

been added between the text ‘‘USDA 

Certified Biobased Product’’ and the text 

that presents the product’s biobased 

content. These changes in the 

certification mark graphics were made 

by the BioPreferred program after the 

current rule was finalized but before the 

voluntary labeling program began 

certifying products to display the mark. 

Therefore, this proposed update will 

merely bring the graphics presented in 

the rule in line with the graphics 

currently being issued and will not 

require any participants to revise their 

label graphics. 

USDA is proposing to revise the 

definition of the term ‘‘intermediate 

ingredient or feedstock’’ to align the 

definition with the one presented in 

subpart A of 7 CFR 3201 (the 

BioPreferred program Guidelines). The 

definition presented in the Guidelines 

was revised in response to the language 

in the 2008 Farm Bill (79 FR 44641; 

August 1, 2014). 

USDA is proposing to add a new 

definition for the term ‘‘designated 

product category.’’ This term has been 

adopted in the Guidelines as a 

replacement for the term ‘‘designated 

item’’ because of confusion caused by 

the inconsistent use of the word ‘‘item.’’ 

This proposal would bring the 

terminology used in the voluntary 

labeling rules in line with the existing 

Guidelines. 

USDA is proposing to add a new 

definition for the term ‘‘qualified 

biobased product’’ to indicate a 

biobased product that is eligible for 

Federal preferred procurement. This 

term is used in the Guidelines and 

adding it to the voluntary labeling rule 

would help in understanding the 

difference between a ‘‘qualified 

biobased product’’ and a ‘‘certified 

biobased product’’ (one that has been 

certified to display the certification 

mark). 

USDA is also proposing to add 

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 

voluntary labeling rule. 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 Federal 

preferred procurement and for the 

voluntary 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 voluntary labeling 

program rules. 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 terms 

‘‘BioPreferred product’’ and ‘‘Designated 

item’’ because the use of the terms has 

led to confusion and the terms have 

been replaced with other, more accurate 

terms. The term ‘‘BioPreferred product’’ 

is being replaced with the terms 

‘‘certified biobased product’’ and 

‘‘qualified biobased product’’ because 

these terms account for the fact that the 

BioPreferred program has two 

initiatives, the voluntary labeling 

program and the Federal preferred 

procurement program, and products 

may be eligible for either initiative. 

USDA is proposing to delete the term 

‘‘Designated item’’ and replace it with 

the term ‘‘Designated product category,’’ 

as discussed above. This change has 

already been made in the Guidelines 

and is being proposed to make the 

voluntary labeling rule consistent. 

USDA is proposing to delete the 

definition of the term ‘‘Mature market 

products.’’ The 2014 Farm Bill clearly 

stated Congress’ intent that the 

BioPreferred program should ‘‘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. Therefore, the 

use of the term ‘‘mature market 

products’’ is no longer applicable for the 

BioPreferred program and the definition 

of the term is not needed. 

B. 7 CFR 3202.4—Criteria for Product 

Eligibility To Use the Certification Mark 

Two significant changes to this 

section are being proposed in this 

action. The first proposed change is to 

add a paragraph (b)(4) that presents the 

minimum biobased content requirement 

for a product that would be considered 

a ‘‘complex assembly’’ (a multicomponent assembled product with one 

or more component(s) being made with 

biobased material). A key feature of 

complex assemblies is that their 

biobased content cannot be determined 

using ASTM D6866 because of their size 

and/or shape. USDA has incorporated 

into the BioPreferred program 

Guidelines a procedure for determining 

the biobased content of a complex 

assembly using an equation that yields 

the ratio of the mass of biobased carbon 

in the assembly to the mass of total 

organic carbon in the assembly. USDA 

has also added procedures to the 

Guidelines for incorporating complex 

assemblies into the Federal preferred 

procurement initiative of the 

BioPreferred program. This proposal 

incorporating a minimum biobased 

content requirement into the voluntary 

labeling rule is consistent with the 

Guidelines and language in the 2014 

Farm Bill that directs USDA to ‘‘begin 

issuing criteria for determining which 

assembled and finished products may 

qualify to receive the label’’ within one 

year of enactment of the Farm Bill. 

The text of the 2014 Farm Bill 

includes a statement that 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 


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63850 Federal Register / Vol. 79, No. 207 / Monday, October 27, 2014 / Proposed Rules 

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 a 

biobased product is eligible for the 

voluntary labeling program because it 

uses ‘‘innovative approaches.’’ USDA is 

proposing that any one or more of four 

possible criteria must be met to 

demonstrate that a biobased product 

uses ‘‘innovative approaches.’’ This 

proposal to incorporate criteria for 

determining ‘‘innovative approaches’’ is 

consistent with the 2014 Farm Bill 

language and, in a separate rulemaking, 

USDA is also proposing to add the 

criteria to the BioPreferred program 

Guidelines. 

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, rightof-way maintenance, tree health 

improvement, or public safety. 

Note: In item 1 above, the term ‘‘legal 

source’’ (also referred to as a ‘‘noncontroversial 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 quasiregulatory 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. 

C. 7 CFR 3202.5—Initial Approval 

Process 

USDA is proposing to amend 

paragraph (a)(1) to specifically address 

situations where a manufacturer seeks 

certification for a new product that is 

composed of the same biobased 

ingredients and has the same biobased 

content as a previously certified 

product. In these cases, where a new 

product for which certification is sought 

is composed of the same biobased raw 

materials and has the same biobased 

content as a product that has already 

been certified, the manufacturer may, in 

lieu of having the new product tested, 

self-declare the biobased content of the 

new product by referencing the tested 

biobased content of the certified 

product. This proposed provision would 

result in reduced biobased content 

testing, and thus a cost savings, for 

manufacturers who use the same 

biobased raw materials to formulate 

different products. 

USDA is proposing to amend 

paragraph (c)(5) to state that 

manufacturers wishing to change the 

name of their company or the name of 

a certified product must notify USDA in 

writing within 30 days of making such 

changes. 

USDA is also proposing to amend 

paragraph (d)(2) to clarify that, although 

certifications do not have a 

predetermined expiration date, they are 

subject to mandatory periodic auditing 

activities and to suspension or 

revocation if biobased content violations 

are identified. USDA is also amending 

this paragraph to allow for the 

revocation of a certification if it is 

discovered that certification was issued 

as a result of error(s) on the part of 

USDA during the approval process. 

D. 7 CFR 3202.8—Violations 

USDA is proposing to correct a 

reference in paragraph (c)(3). The 

original reference to 7 CFR part 3017 is 

incorrect and should refer instead to 2 

CFR part 417 and 48 CFR subpart 9.4. 

E. 7 CFR 3202.10—Oversight and 

Monitoring 

USDA is proposing to add a new 

section 3202.10(d) that identifies three 

auditing efforts that will be ongoing for 

the voluntary labeling program. The 

2014 Farm Bill contained specific 

language authorizing USDA to perform 

auditing and compliance activities 

necessary to ensure that the label is 

used only on products that meet the 

established eligibility criteria. 

USDA expects to conduct audits of 

the voluntary labeling program on an 

ongoing basis with audit activities 

conducted every other calendar year (biannually). Audit activities will include 

three stages and will be conducted in 

sequential order. Stage 1 was conducted 

in 2012, Stage 2 will be conducted in 

2014, and Stage 3 will be conducted in 

2016. In 2018, the sequence will start 

over with Stage 1. 

Stage 1 auditing includes contacting 

all participants via email and requesting 

that they complete a ‘‘Declaration of 

Conformance Form.’’ Program 

participants are asked to confirm that 

they still manufacture the product and 

that the formulation and manufacturing 

processes remain the same. Participants 

are also asked to list all active products 

and advise the USDA of any complaints 

regarding the claim of the biobased 

content. The first Stage 1 auditing 

activity was completed in 2012 and the 

second Stage 1 audit will be conducted 

in 2018. 

Stage 2 auditing consists of a random 

sampling of certified products to 

confirm the accuracy of biobased 


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content percentages claimed. The 

participants whose products are 

selected will be required to submit 

product samples to be tested by 

independent testing labs at USDA 

expense. The first Stage 2 auditing 

activity is scheduled to be completed 

during 2014 and includes the re-testing 

of 50 randomly selected products. The 

second Stage 2 audit will be conducted 

in 2020. 

USDA chose to re-test 50 products 

during the initial Stage 2 audit because 

that number was believed to be 

sufficient to meet the objective of 

preserving the integrity of the labeling 

program. In addition, ASTM Standard 

E2234 Standard Practice for Sampling a 

Stream of Product by Attributes Indexed 

by AQL (acceptance quality limit) calls 

for 50 samples when the total lot size is 

between 1,201 and 3,200 and following 

general inspection level 1. At the time 

the audit Stage 2 plans were developed 

there were slightly less than 1,500 

certified products. 

Stage 3 auditing requires 

manufacturers of products that have 

been certified for 5 years or more to 

have their products re-tested at their 

expense to confirm that the biobased 

content remains at or above the level at 

which the product was originally 

certified. The first Stage 3 auditing 

activity is scheduled to be completed 

during 2016 and the second Stage 3 

audit will be conducted in 2022. The 

voluntary labeling program was 

initiated in 2011 and, at the time of the 

first Stage 3 audit, only those products 

certified during the first year of the 

program will require re-testing. 

USDA believes that the audit program 

outlined above will be a valuable tool in 

ensuring the integrity of the program 

and compliance with the voluntary 

labeling program rules. 

V. Request for Comment 

USDA is requesting comment on all 

aspects of these proposed amendments 

to the voluntary labeling program rules. 

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. 

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 

voluntary labeling program rules to 

establish the regulatory framework for 

the labeling of products that were 

previously excluded from the program 

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. Costs, Benefits and 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 certified to display 

the USDA Certified Biobased Product 

certification mark. The entry into the 

voluntary labeling program of biobased 

products that were previously 

considered to be mature market 

products provides newly developed 

biobased products the opportunity to be 

publicized via the BioPreferred Web 

site. Thus, the rule is expected to 

increase demand for these products, 

which, in turn, is expected to increase 

demand for those agricultural products 

that can serve as ingredients and 

feedstocks. This expansion of the 

voluntary labeling program will, thus, 

yield private benefits for businesses 

producing these ingredients and 

feedstocks. 

Simultaneously, this action would 

reduce demand for competing products 

that are not eligible for the voluntary 

labeling program. Producers of biobased 

products, including intermediate 

ingredients and feedstocks, that are not 

certified for labeling or producers of 

non-biobased products could face a loss 

of market share within both the public 

and Federal agencies. USDA does not 

have sufficient information on the 

expected extent of this potential loss of 

market share to assign a dollar value to 

this impact. 

As part of the proposed Stage 3 

auditing process to be conducted during 

calendar year 2016, manufacturers of 

biobased products that have been 

certified for five or more years will be 

required to have their products biobased 

content re-tested. We estimate that the 

cost for product re-testing is about $300 

to $400 per product. The labeling 

program was implemented in 2011 and 

only those products that were certified 

during 2011 will incur the re-testing 

cost of the Stage 3 audit to be conducted 

during 2016. There were 1,338 

applications for certification received 

during 2011 and USDA estimates that 

1,000 of the products represented by 

those applications continue to display 

the label under the original certification. 

Thus, the total estimated cost of the 

auditing effort to all manufacturers 

would be, at most, $400,000 (1,000 

products × $400 per test) during 2016. 

Considering that this total cost would be 

spread over several hundred 

manufacturers making these products 

and that no additional re-testing costs 

are expected until the year 2022, USDA 

believes that the cost to any one 

manufacturer is reasonable. 

We request information that would 

help us quantify the shift in product 

sales potentially resulting from this 

action. 

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 voluntary labeling 

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. 

Private sector manufacturers and 


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63852 Federal Register / Vol. 79, No. 207 / Monday, October 27, 2014 / Proposed Rules 

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 in 

the voluntary labeling program. USDA 

anticipates that this program will 

positively impact small entities which 

manufacture or sell biobased products 

by allowing them to display the 

certification mark and to list their 

products in the BioPreferred program 

Web site catalog. However, this program 

may decrease opportunities for small 

businesses that manufacture or sell nonbiobased products or provide 

components for the manufacturing of 

such products. It is, however, not 

possible for USDA to definitively assess 

these anticipated impacts on small 

entities. 

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 voluntary labeling 

program is currently approved under 

OMB control number 0503–0020. 

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 for which they intend 

to seek certification to display the label 

or which 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 

Labeling, Procurement, USDA 

Certified Biobased Product. 

For the reasons stated in the 

preamble, the Department of Agriculture 

is proposing to amend 7 CFR part 3202 

as follows: 

PART 3202—VOLUNTARY LABELING 

PROGRAM FOR BIOBASED 

PRODUCTS 

■ 1. The authority citation for part 3202 

continues to read as follows: 

Authority: 7 U.S.C. 8102. 

■ 2. Section 3202.2 is amended by: 

■ a. Removing the definitions of 

‘‘BioPreferred Product,’’ ‘‘Designated 

item,’’ and ‘‘Mature market products’’; 

and 

■ b. Revising the definitions of 

‘‘Biobased product,’’ ‘‘Certification mark 

artwork,’’ ‘‘Intermediate ingredient or 

feedstock’’; and 

■ c. Adding, in alphabetical order, 

definitions for ‘‘Designated product 

category,’’ ‘‘Forest product,’’ ‘‘Qualified 

biobased product,’’ and ‘‘Renewable 

chemical.’’ 

The revisions and additions read as 

follows: 

§ 3202.2 Definitions. 

* * * * * 

Biobased product. A product 

determined by USDA to be a 

commercial or industrial product (other 

than food or feed) that is: 

(1) Composed, in whole or in 

significant part, of biological products, 

including renewable domestic 

agricultural materials and forestry 

materials; or 

(2) An intermediate ingredient or 

feedstock. 

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. 

* * * * * 

Certification mark artwork. The 

distinctive image, as shown in Figures 

1–3, that identifies products as USDA 

Certified. 

BILLING CODE 3410–93–P 


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BILLING CODE 3410–93–C 


tkelley on DSK3SPTVN1PROD with PROPOSALSEP27OC14.002</GPH>

Figure 1. USDA Certified Biobased Product Certification 

Mark 

(Note: actual size will vary depending on application) 

Figure 2. USDA Certified Biobased Product: Package 

Certification Mark 

(Note: actual size will vary depending on application) 

Figure 3. USDA Certified Biobased Product & Package 

Certification Mark 

(Note: actual size will vary depending on application) 
63854 Federal Register / Vol. 79, No. 207 / Monday, October 27, 2014 / Proposed Rules 

* * * * * 

Designated product category. A 

generic grouping of biobased products, 

including those final products made 

from designated intermediate 

ingredients or feedstocks, or complex 

assemblies identified in subpart B of 7 

CFR part 3201, that is eligible for the 

procurement preference established 

under section 9002 of FSRIA. 

* * * * * 

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. 

* * * * * 

Intermediate ingredient or feedstock. 

A material or compound made in whole 

or in significant part from biological 

products, including renewable 

agricultural materials (including plant, 

animal, and marine materials) or 

forestry materials that have undergone 

value added processing (including 

thermal, chemical, biological, or a 

significant amount of mechanical 

processing), excluding harvesting 

operations, offered for sale by a 

manufacturer or vendor and that is 

subsequently used to make a more 

complex compound or product. 

* * * * * 

Qualified biobased product. A 

product that is eligible for Federal 

preferred procurement because it meets 

the definition and minimum biobased 

content criteria for one or more 

designated product categories, or one or 

more designated intermediate ingredient 

or feedstock categories, as specified in 

subpart B of 7 CFR part 3201. 

* * * * * 

Renewable chemical. A monomer, 

polymer, plastic, formulated product, or 

chemical substance produced from 

renewable biomass. 

* * * * * 

■ 3. Section 3202.4 is amended by 

revising the introductory text and the 

headings for paragraphs (b)(1) and (2) 

and adding paragraphs (b)(4) and (c) to 

read as follows: 

§ 3202.4 Criteria for product eligibility to 

use the certification mark. 

A product must meet each of the 

criteria specified in paragraphs (a) 

through (c) of this section in order to be 

eligible to receive biobased product 

certification. 

* * * * * 

(b) * * * 

(1) Qualified Biobased Products. 

* * * 

(2) Finished biobased products that 

are not Qualified Biobased Products. 

* * * 

* * * * * 

(4) Finished products that are 

complex assemblies. 

(i) If the product is a complex 

assembly, as defined in subpart A of 7 

CFR part 3201, that is not eligible for 

Federal preferred procurement at the 

time the application for certification is 

submitted, the applicable minimum 

biobased content is 25 percent. The 

biobased content shall be determined 

using the procedures specified in 

§ 3201.7(c)(3) of this chapter. 

Manufacturers, vendors, groups of 

manufacturers and/or vendors, and 

trade associations may propose an 

alternative applicable minimum 

biobased content for the product by 

developing, in consultation with USDA, 

and conducting an analysis to support 

the proposed alternative applicable 

minimum biobased content. If approved 

by USDA, the proposed alternative 

applicable minimum biobased content 

would become the applicable minimum 

biobased content for the complex 

assembly to be labeled. 

(ii) If a product certified under 

paragraph (b)(4)(i) of this section is 

within a category that USDA 

subsequently designates for Federal 

preferred procurement, the applicable 

minimum biobased content shall 

become, as of the effective date of the 

final designation rule, the minimum 

biobased content specified for the item 

as found in subpart B of 7 CFR part 

3201. 

(c) Innovative approach. In 

determining eligibility for certification 

under 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 

(c)(1) through (4) of this section to be 

eligible for certification. USDA may 

deny certification for 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. 

(1) Product applications. (i) The 

product or material is used or applied 

in applications that differ from 

historical applications; or 

(ii) The product or material is grown, 

harvested, manufactured, processed, 

sourced, or applied in other innovative 

ways. 

(2) Manufacturing and processing. (i) 

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 fossilfuel based energy sources; or 

(ii) The product or material is 

manufactured or processed with 

technologies that ensure high feedstock 

material recovery and use. 

(3) 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. 

(4) Raw material sourcing. (i) 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: 

(ii) The raw material used in the 

product is 100% resourced or recycled 

(such as material obtained from building 

deconstruction), or 

(iii) 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. 

■ 4. Section 3202.5 is amended by: 

■ a. Revising paragraph (a)(1); 

■ b. Adding a sentence to the end 

paragraph (c) introductory text; 

■ c. Adding paragraph (c)(5); 

■ d. Revising paragraph (d)(1); and 

■ e. Adding paragraphs (d)(2)(iv) and 

(v). 

The revisions and additions read as 

follows: 

§ 3202.5 Initial approval process. 

(a) * * * 

(1) General content. The applicant 

must provide contact information and 

product information including all brand 

names or other identifying information, 

intended uses of the product, 

information to document that one or 

more of the innovative approach criteria 

specified in section 3202.4(c) has been 

met, and, if applicable, the 

corresponding product category 

classification for Federal preferred 

procurement. The applicant must also 

provide a sample of the product to be 

analyzed by a third-party, ISO 9001 

conformant, testing entity for 


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determination of the biobased content. 

In situations where a new product for 

which certification is sought is 

composed of the same biobased 

ingredients and has the same biobased 

content as a product that has already 

been certified, the manufacturer may, in 

lieu of having the new product tested, 

self-declare the biobased content of the 

new product by referencing the tested 

biobased content of the original certified 

product. Certification of the original 

product must have been obtained by 

either the manufacturer of the new 

product or by the supplier of the 

biobased ingredients used in the new 

product. 

(c) * * * Paragraph (c)(5) of this 

section presents the procedures for 

revising the information provided under 

paragraphs (c)(1) through (4) of this 

section after a notice of certification has 

been issued. 

* * * * * 

(5) If at any time, during the 

application process or after a product 

has been certified, any of the 

information specified in paragraphs 

(c)(1) through (4) of this section 

changes, the applicant must notify 

USDA of the change within 30 days. 

Such notification must be provided in 

writing to USDA. 

(d) * * * 

(1) The effective date of certification 

is the date on which the applicant 

receives a notice of certification from 

USDA. Except as specified in 

paragraphs (d)(2)(i) through (d)(2)(v) of 

this section, certifications will remain in 

effect as long as the product is 

manufactured and marketed in 

accordance with the approved 

application and the requirements of this 

subpart. 

(2) * * * 

(iv) All certifications are subject to 

USDA periodic auditing activities, as 

described in § 3202.10(d). If a 

manufacturer or vendor of a certified 

biobased product fails to participate in 

such audit activities or if such audit 

activities reveal biobased content 

violations, as specified in § 3202.8(b)(1), 

the certification will be subject to 

suspension and revocation according to 

the procedures specified in § 3202.8(c). 

(v) If USDA discovers that a 

certification has been issued for an 

ineligible biobased product as a result of 

errors on the part of USDA during the 

approval process, USDA will notify the 

product’s manufacturer or vendor in 

writing that the certification is revoked 

effective 30 days from the date of the 

notice. 

■ 5. Section 3202.8 is amended by 

revising paragraph (c)(3) to read as 

follows: 

§ 3202.8 Violations. 

* * * * * 

(c) * * * 

(3) Other remedies. In addition to the 

suspension or revocation of the 

certification to use the label, depending 

on the nature of the violation, USDA 

may pursue suspension or debarment of 

the entities involved in accordance with 

2 CFR part 417 and 48 CFR subpart 9.4. 

USDA further reserves the right to 

pursue any other remedies available by 

law, including any civil or criminal 

remedies, against any entity that 

violates the provisions of this part. 

■ 6. Section 3202.10 is amended by 

adding paragraph (d) to read as follows: 

§ 3202.10 Oversight and monitoring. 

* * * * * 

(d) Audits. USDA expects to conduct 

audits of the voluntary labeling program 

on an ongoing basis with audit activities 

conducted every other calendar year (biannually). Audit activities will include 

three stages and will be conducted in 

sequential order as follows: 

(1) Stage 1 auditing includes 

contacting all participants via email and 

requesting that they complete a 

‘‘Declaration of Conformance Form.’’ 

Program participants are asked to 

confirm that they still manufacture the 

product and that the formulation and 

manufacturing processes remain the 

same. Participants are also asked to list 

all active products and advise the USDA 

of any complaints regarding the claim of 

the biobased content. The first Stage 1 

auditing activity was completed in 2012 

and the second Stage 1 audit will be 

conducted in 2018. 

(2) Stage 2 auditing consists of a 

random sampling of certified products 

to confirm the accuracy of biobased 

content percentages claimed. The 

participants whose products are 

selected will be required to submit 

product samples to be tested by 

independent testing labs at USDA 

expense. The first Stage 2 auditing 

activity is scheduled to be completed 

during 2014 and the second Stage 2 

audit will be conducted in 2020. 

(3) Stage 3 auditing requires 

manufacturers of products that have 

been certified for 5 years or more to 

have their products re-tested at their 

expense to confirm that the biobased 

content remains at or above the level at 

which the product was originally 

certified. The first Stage 3 auditing 

activity is scheduled to be completed 

during 2016 and the second Stage 3 

audit will be conducted in 2022. 

Dated: October 15, 2014. 

Gregory L. Parham, 

Assistant Secretary For Administration, U.S. 

Department of Agriculture. 

[FR Doc. 2014–25427 Filed 10–24–14; 8:45 am] 

BILLING CODE 3410–93–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–1088; Directorate 

Identifier 2008–SW–76–AD] 

RIN 2120–AA64 

Airworthiness Directives; Sikorsky 

Aircraft Corporation Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to revise 

airworthiness directive (AD) 2014–12– 

11 for Sikorsky Aircraft Corporation 

(Sikorsky) Model S–92A helicopters. AD 

2014–12–11 currently requires revising 

the Rotorcraft Flight Manual (RFM) to 

include the appropriate operating 

limitations for performing Class D 

external load-combination operations. 

As published, AD 2014–12–11 

references an incorrect date for Revision 

No. 12 of Sikorsky RFM SA S92A– 

RFM–003, Part 1. This proposed AD 

would correct the error while retaining 

the requirements of AD 2014–12–11. 

These proposed actions are intended to 

require appropriate operating 

limitations to allow operators to perform 

Class D external load-combination 

operations, including human external 

cargo, in this model helicopter that now 

meets the Category A performance 

standard. 

DATES: We must receive comments on 

this proposed AD by November 12, 

2014. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Docket: Go to 

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

online instructions for sending your 

comments electronically. 

• Fax: 202–493–2251. 

• Mail: Send comments to the U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE., Washington, 

DC 20590–0001. 

• Hand Delivery: Deliver to the 

‘‘Mail’’ address between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 


tkelley on DSK3SPTVN1PROD with PROPOSALS