Selected approaches to sustainable public procurement policies: Cases of the US and Japan

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Lynn Anastasia Morrison
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1 Selected approaches to sustainable public procurement policies: Cases of the US and Japan Chikako Takase Division for Sustainable Development DESA/UN

2 The United States of America Federal Government s procurement size: $275 billion per year Legislations: The Resource Conservation and Recovery Act (RCRA), 1976 Executive Order 13101, 1998: Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition (supersedes Executive Order 12873) Other relevant legislation / regulation The Federal Acquisition Regulation Executive Order (2000): Greening the Government Through Leadership in Environmental Management Executive Order (2000): Greening the Government Through Federal Fleet and Transportation Efficiency

3 RCRA EPA to identify products made with recycled waste materials or solid waste by-products to develop guidance for purchasing these products Comprehensive Procurement Guidelines (CPG) Procurement Agencies to establish programs for purchasing these products (Affirmative Procurement Programs) within one year after EPA designates an item in CPG when spending more than $10,000 a year on that item, including micro-purchases. Procurement Agencies: federal, state, and local agencies, their contractors that use appropriated federal funds

4 CPG Designates products that are or can be made with recovered materials. Once a product is designated, procurement agencies are required to purchase it with the highest recovered material content level practicable. Recovered Materials Advisory Notices (RMAN) recommend recycled-content ranges for CPG products. EPA s list of designated products: 54 products, 8 categories: Construction products; Landscaping products; Non-paper Office products; Paper and paper products; Park and Recreation products; Transportation products; Vehicular products; and Miscellaneous products

5 CPG Each category: - Recommended Recovered Materials Content Ranges: Postconsumer content Total Recovered Materials content - Product specifications: Relevant published specification - Product information: Database of manufacturers and suppliers Link to GSA Advantage! (on-line order system) - Additional Links

6 CPG example: Office Recycling Containers EPA's Recommended Recovered Materials Content Levels: Ma Materials Plastic Postconsumer content Total recovered materials content Paper -Corrugated -Solid fiber boxes -Industrial paperboard Additional Links: 2000 Buy-Recycled Series: Non-paper Office Products Technical Background Documents

7 Executive Order (1998): Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition Encourages federal agencies to buy products that are environmentally preferable and/or bio-based Environmentally preferable products: Those that have a lesser or reduced adverse effect on human health and the environment when compared with competing products that serve the same purpose. EPA to develop guidance on environmentally preferable products. Environmentally Preferable Purchasing (EPP) program

8 Executive Order (1998): Biobased products: Those made from biological products or renewable domestic agricultural (plant, animal, and marine) or forestry materials. USDA to compile a list of biobased products. Section 9002 of the 2002 farm bill (Farm Security and Rural Investment Act of 2002) establishes a Federal biobased products purchasing program similar to the buyrecycled program under RCRA. Plans to designate products in 11 categories: Adhesives; Construction materials and composites; Fibers, paper and packaging; Fuels and fuel additives; Inks; Landscaping materials and composted livestock and crop residue; Lubricants and functional fluids; Paints and coatings; Plastics monomers and polymers; Solvents and cleaners; Sorbents

9 EPP program A federal-wide program that encourages and assists Executive agencies in the purchasing of environmentally preferable products and services. EO 13101, section 503: (1) EPA to develop guidance (2) agencies to immediately test and evaluate the principles and concepts contained in the EPA Guidance through pilot projects

10 EPP program EPA s Final Guidance on EPP, 1999 Guiding principles: Recommends that each Executive agency issue a Policy Directive promoting the practice Recommends that agencies expand the scope of their affirmative procurement programs to include environmentally preferable products and services Pilot projects EPA to coordinate the development and standardization of environmental information about potential product and services

11 EPA s Final Guidance on EPP, 1999 Guiding principles: ❶ Environment + Price + Performance = EPP ❷ Pollution Prevention ❸ Life Cycle Perspective / Multiple Attributes ❹ Comparison of Environmental Impacts ❺ Environmental Performance Information

12 EPP program Database of Environmental Information for Products and Services includes vender lists of: - Environmental information on over 600 products and services - Links to: Contract language and specifications Environmental standards and guidelines Vender list of products brands which meet the above through the links to other databases, eg. Energy Star Other sources of information

13 Results of reviews Ref.: Qualitative Measurement of Environmentally Preferable Purchasing Among Federal Employees in 2000, EPA Better Guidance and Monitoring Needed to Assess purchases of Environmentally Friendly Products, US General Accounting Office (GSA), 2001

14 EPA study Interview with more than 130 federal employees involving in procurement In order to: Study federal procurement practices and behaviours Explore what motivates the federal workers to link environment to purchasing-related decision-making Test the recognition and usefulness of the EPP outreach materials

15 GSA Study Four agencies that account for 85% of all federal procurements: Department of Defense Department of Energy General Services Administration (GSA) NASA To determine the status of federal agencies efforts to: Implement RCRA requirements for procuring products with recycled-contents Purchase environmentally preferable and biobased products

16 Key Findings Identifying products using the guidance is difficult and time-consuming Agencies have not adequately monitored their purchases Promotion of awareness about RCRA is limited Agencies have not changed to increase the purchases of EP and biobased products EPA and USDA have been slow to develop and implement the programs Agencies indicated that it would be easier, if there is a product list as in CPG

17 Key Findings (continued) EO provisions on the Greening of Government are not perceived to be mandates Agency- or department-specific mandates motivate federal purchasers more than EOs Few recognized EPP Responsibility for EPP is perceived as lying elsewhere Awareness of EPP tools and resources is low

18 Japan : Action Plan for Greening Government Operations : The Law Concerning the Promotion of Procurement of Eco-Friendly Goods and Services by the Sate and Other Entities (Law on Promotion of Green Purchasing)

19 Action Plan for Greening Government Operations Specific targets: compared to 1996 level 1. The volume of paper: no increase 2. Total content of virgin pulp in the paper: to be reduced to 80 % 3. The ratio of low-impact vehicles: to be increased to 10% of the total 4. Electricity consumption per unit of office space: to be reduced to 90 % 5. Water consumption per unit of office space: to be reduced to 90 % 6. The amount of fuel consumption by government vehicles, for both gasoline and light oil: 90 % 7. The amount of fuel consumption in government buildings for heavy oil, kerosene, city gas, LPG: to reduce by 10 % 8. The volume of waste generated from each office: to be reduced to less than 75 % 9. The volume of waste which can be incinerated: to be reduced to less than 70 % 10. Emission of CO 2 : to be limited based on the Action Program to arrest Global Warming. The level to be estimated by the end of FY1996

20 Action Plan for Greening Government Operations Targets achieved The content of virgin pulp:44 % Water consumption: 82 % Gasoline consumption by cars: 88% LPG consumption in government buildings: 4 % Targets unmet Volume of paper: 109 % Low-impact cars: 5 % Electricity consumption: 115 % Light oil consumption by cars: 97 % Heavy oil consumption: 92 % Kerosene consumption: 99 % City gas consumption: 152 % The volume of waste: 132 % The volume of waste that can be incinerated: 143 %

21 The Law Concerning the Promotion of Procurement of Eco- Friendly Goods and Services by the Sate and Other Entities (Law on Promotion of Green Purchasing): Objectives: 1. To promote Greener Purchasing by Public Organizations 2. To provide information on Eco-friendly goods and services Establishing environmentally sound and sustainable society Basic Policy on Promoting Green purchasing Database on eco-friendly goods, etc.

22 Basic Policy on Promoting Green Purchasing Outlines the basic principle Defines eco-friendly goods, etc. Identifies designated procurement items specifies Environmental Evaluation Criteria 152 items Government bodies to publish a quantified procurement target for designated procurement items and the summary of track record

23 Basic Policy on Promoting Green Purchasing Designated Products and Criteria Example: Paper Copier paper Evaluation Criteria 1) 100 % recycled paper content and no more than approximately 70 % bleaching; 2) If coated, both sides totaling no more than 12 g/m 2 Factors for consideration Packaging takes into account ease of recycling and reduced environmental impact if incinerated

24 Database for designated products by the Law on Promoting Green Purchasing Hosted by Green Purchasing Network (GPN) Information is submitted by suppliers Information includes: Name of the commodity Name of the producer Value for each evaluation criterion Eg. For Copier paper: content of recycled paper degree of bleaching amount of coating

25 Basic Policy on Promoting Green Purchasing Reporting: Fixed format a. Category and item b. Target (as a ratio of total amount) c. Total amount of procurement d. Procurement of designated item e. Ratio of procurement of designated item (d/c) f. Achievement (e/b) g. Procurement of items surpassing the level of designated item: amount, description h. Procurement of items under the level of designated item: amount, description, main reason

26 Comparison of US and Japanese approaches USA: The findings of the review: Need specific programs Agency-specific mandate is needed Lack of monitoring Easier to have a list of designated products Japan: Law on Promoting Green Purchasing Basic Policy Government bodies are required to make their own plans Requirement for publishing the reports List of designated products with criteria Database for products

27 Green Purchasing Network (GPN) Established in 1996 to promote green purchasing As of June 2002, 2668 member organizations: 2038 corporations 362 local gov. and government agencies 268 NGOs Publishes purchasing guidelines: 15 product groups Publishes GPN Data Books: 16 product groups, 9144 products

28 GPN: Data Book Both hard copies and on-line Example: Paper Whether the product meets the criteria of the Green Procurement Law Proportion of recycled waste paper Degree of bleaching Proportion of elemental chlorine free (ECF) pulp Amount of coating Difficulty with recycling Nature of the pulp Other environmental information Major usage and special features

Green Purchasing Overview and Update

Green Purchasing Overview and Update Dana Arnold, Director Program Analysis Division, Office of Acquisition Management April 17, 2013 What Do We Mean By Green? Federal agencies are required by statutes