Buying Smart: Environmental Purchasing Made Simple

Transcription

1 Buying Smart: Environmental Purchasing Made Simple Washington NIGP 2008 Green Purchasing Workshop Alicia Culver Green Purchasing Institute Tel:

2 Green Purchasing Institute Helps government agencies, businesses and institutions purchase environmentally preferable (sustainable) goods and services

3 Overview What is environmentally preferable purchasing and what are the benefits? What types of EPP policies and programs have local governments implemented? Why and how should localities include product recycling in their contracts? What obstacles are you likely to encounter? What resources and strategies can you use to make EPP easier?

4 What are EPPs? Environmentally preferable products (EPPs) have a reduced negative effect or increased positive effect on human health and the environment when compared with competing products that serve the same purpose. Seattle s Sustainable Purchasing Policy, 11/06/03

5 Sustainable Products are Made with recycled content Highly energy efficient Designed to be long lasting Recyclable or compostable Made from renewable resources Less toxic than conventional goods Manufactured locally and responsibly Fairly traded Safely managed at the end of their life

6 Why Sustainable Purchasing? Progress towards: Climate action commitments Zero waste goals Reduced water/air pollution/consumption Minimizing toxic chemical exposures to people and the environment Changing market place and product options Securing green building (LEED) certification Creating local green color job

7 EPP Simplified EPP = Environment + Price + Performance

8 EPP Compatible with Procurement Procedures Nothing contained in this policy shall be construed as requiring a department or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, or are not available at a reasonable price in a reasonable period of time. City of San Mateo Environmental Purchasing Policy

9 EPP is Best Value Procurement Considers overall (life-cycle) costs of ownership: Initial price Utility costs (energy, water) Maintenance costs (labor and replacement) End-of-life costs (disposal and recycling)

10 Low Bidder Vs Best Value

11 Government Purchasing Substantial buying power nationwide 13% GNP = State & Local Procurement Local governments pioneers for states, federal government, businesses, schools, public Lead by example Build on existing Buy Recycled Programs

12 Green Purchasing in WA Washington State and local government entities (including educational facilities) spend over $4 billion/year on goods and services, much using state contracts.

13 Executive Order on State Sustainability Calls on state agencies to establish sustainability objectives and modify their purchasing practices to: minimize energy, water and paper use shift to clean energy for facilities, fleets choose environmentally preferable goods and services reduce waste

14 Reduce Energy Usage Executive Order directs WA State agencies to use all practical and cost-effective means available to reduce energy purchases by 10% from FY 2003 levels. meet LEED Silver (green building) standards on major construction projects See EO Establishing Sustainability and Efficiency Goals for State Operations

15 Energy-related Spending by States and Localities $50-70 billion: Energy-related products $12 billion: Energy bills $1 billion: Potential savings from energy-efficient purchasing Source: Consortium for Energy Efficiency,

16 Opportunities for Green Purchasing Commodity contracts Service agreements Construction projects Purchase orders Credit cards E-procurement

17 Green Purchasing Programs Save $ In 2006, King County, WA purchased $36 million in EPPs and saved $640,000 compared to conventional products. In 2007, San Diego expanded its EPP program noting the City is already purchasing many environmentally preferable products, resulting in savings of millions of dollars annually.

18 Green Building Cost-Effective A 2003 report to California s Sustainable Building Task Force found a 2% investment in green design will yield a 10-fold return on investment. For more information on WA s Green Building Program, see

19 Green Building Yields Economic Benefits WA Executive Order 05-01, Establishing Sustainability and Efficiency Goals for State Operations, states: the use of green building practices can improve employee productivity, improve building operational performance, reduce building operational costs

20 How Green Products Can Save Money Lower upfront costs Conserve energy or water Reduce paper or fuel use Lower maintenance costs Extend product life Avoid disposal/cleanup costs Offset environmental/ health program costs

21 Remanufactured Toner and Ink Cartridges Cost 30-60% less per copy than virgin cartridges NYC saved ~$50 per cartridge King County, WA saved $300,000 in 2006 buying 5,680 remanufactured toner cartridges for $235,000 (and returned empties to vendor) Need strict performance specifications

22 Recycled Paint CASE STUDY Portland, OR found recycled paint performs well and costs 50% less than virgin latex paint Portland requires use of recycled paint whenever it meets need

23 Furniture Repair CASE STUDY NYC saved over $100,000 by contracting with a local firm (for $15,000) to repair its furniture 1000 pieces, 66 tons recovered in 2 years $10,000/year in disposal costs avoided Local jobs created

24 Re-refined Motor Oil Santa Monica purchases re-refined motor oil for all vehicles maintained by its Fleet Maintenance Division; costs 25% less than comparable virgin motor oil Case study, specs from King County, WA

25 Reduce Paper Use Executive Order directs WA State agencies to take all reasonable actions to reduce the life-cycle impacts of paper products reduce use of office paper by 30% from FY 2003 levels See EO Establishing Sustainability and Efficiency Goals for State Operations

26 Duplexing Printers & Copiers Save money on paper, postage and document storage CASE STUDY: Columbia University saved $105,000 in one year by defaulting to 2-sided printing in its computer center Requires vendors to ship printers with duplex default on and train employees to use duplexing equipment

27 WA State Sustainable Fleet Policy directs State agencies to: Reduce petroleum use 20% in operation of State vehicles by September 1, 2009 Purchase/rent fuel efficient/low emission vehicles (>30 mpg; no 4WD SUVs without permission) Replace standard diesel with B20 biodiesel Conduct fleet efficiency audit and submit fleet management plans (for large fleets)

28 Hybrid Electric Vehicles Cost more initially but save $ by: Cutting fuel use by up to 50% Having lower maintenance costs Yielding a higher resale value WA was first state to award a contract for hybrid vehicles in 2000; over 600 purchased For more info on hybrids, see

29 Seattle s Clean Fleets Program Goal: 100% of fleet to be clean and green All diesel engines now use B20 (20% biodiesel + 80% ultra-low-sulfur diesel) (reduces asthma-causing particulates, hazardous air pollutants, PBTs) Reduced purchase of SUVs; increased use of hybrids and other alt fuel vehicles Cut fleet size

30 EPA s SmartWay Transport Program Aims to reduce emissions of GHG from freight transport Purchasers can require suppliers to demonstrate they are a SmartWay Transport Partner or pledge to become a Partner once your contract is awarded

31 Climate Protection Purchasing Policies Proliferation of laws and executive orders (some address purchasing specifically) Greenhouse gas reductions Energy efficiency Vehicle fuel efficiency Renewable energy Green building (LEED)

32 Energy-Efficient Equipment Appliances Stoves and refrigerators Washers and dryers Office Equipment Copiers, printers Lighting fixtures, exit signs CASE STUDY: Chicago, IL public housing authority cut its annual electric bill $500,000 by purchasing 10,000 ENERGY STAR refrigerators

33 OPTIMIZE: Energy efficiency Lamp life Green Lighting Toxicity reduction Policy Goals Recycling (convenient, private sector-financed) Sustainable manufacturing

34 Compact Fluorescent Lights CASE STUDY: New York City recently adopted a policy to eliminate all incandescent light bulbs in its buildings whenever there is a drop-in CFL replacement available. Find CFLs on WA State lamps contract (#00802) and Grainger contract (#11305)

35 Sustainability Guidelines for CFL Giveaways In January 2008, Sierra Club adopted comprehensive Guidelines for Selecting Distributing and Recycling Environmentally Preferable Light Bulbs During Mass Giveaways ENERGY STAR Long-life (10,000 hours +) Preference for 3 mg or less, lead-free Sustainable manufacturing (encapsulated dosing) Recycling (preferably via retail/private sector programs)

36 High-performance, Low- mercury Lamps Contracts Issued by State of California, Santa Monica, and soon by City/County of San Francisco Established environmental and performance standards for high-volume fluorescent lamps Minimum Efficiency/Light Quality (CRI) Minimum rated life Maximum mercury content (disclosure and independent verification) Require all vendors to offer lamp recycling State of California Bid Spec:

37 LEDs Exit and Business signs Traffic signals Street lights Night lights & pathway lighting Elevator lights Task and Track Lighting Replacements for CFLs Specialty (e.g., underwater) lighting Holiday lighting

38 LED Traffic Signals & Lights CASE STUDY Ann Arbor, MI saved $49,000/year replacing incandescent traffic signal lights with LEDs Much lower maintenance costs (50, ,000 vs hours) Safety benefits: fewer burned out lamps, less replacement time, improved visibility Testing LED street lamps with 50-80% energy savings ($100/yr/lamp; 4.7-year payback); mercury-free

39 LED Street Lights 50-80% energy savings 3-5 year payback Growing # of LED cities

40 Water Conservation The nation s water & energy use are inextricably entwined. Energy is needed to pump, treat, transport, heat, cool, and recycle water. (California Energy Commission) Running hot water for 5 minutes = 60 watt bulb for 14 hours Water conservation saves energy at ~60% of cost of energy conservation Source: California Energy Commission,

41 Water Sense Label Third-party tested Meet EPA s efficiency specifications Standards exist or are in development for the following product categories: Bathroom sink faucets Landscaping irrigation services (certifies professionals) Showerheads (in development) Toilets (certified for performance and efficiency) Urinals (in development) (Source:

42 Precautionary Purchasing in San Francisco Based on Precautionary Principle Prevent Harm Right to Know Full-cost Accounting Alternatives Assessment Participatory/Transparent Decision-making

43 San Francisco s Precautionary Purchasing Priorities 10 product categories chosen based on: Human health risks (acute, chronic, EJ/impacts on sensitive populations) Potential environmental effects (climate, ozone, deforestation) Quantity purchased Ease of implementation, benefits (availability of existing standards) National supply chain impacts, innovation

44 Portland s Toxics Reduction Program Goal to buy products without persistent toxins, carcinogens, reproductive toxins, hormone disruptors, or asthma triggers Targeted products include: cleaners, food, lamps, electronics, paints, medical/office supplies, building materials, vehicles/fuel

45 Seattle s Pesticide Use Reduction Program Goal 1: Eliminate most hazardous (Toxicity Category 1) pesticides in city operations Goal 2: Reduce other pesticides in city operations by at least 30% Parks Department (largest user) reduced pesticide use 80% by 2007

46 What is Green Cleaning? Products and practices that protect human health and environment Choosing safer products Reducing quantity of chemicals Minimizing exposure

47 Why Avoid Toxic Cleaning Products? Protect workers health Improve indoor air quality (IAQ) Children = most vulnerable Reduce environmental impacts Smog, ozone depletion, global warming Toxicity to fish, wildlife

48 Health Hazards of Cleaning Chemicals ~5 billion pounds used annually 6 out of every 100 janitors injured each year 20% of injuries are severe chemical burns to eyes/skin

49 Choose Certified Green Cleaners Address wide range of health/environmental impacts No ingredients that can cause cancer or birth defects Not corrosive to eyes or skin Devoid of ingredients that can cause asthma Won t kill fish or destroy ozone; will biodegrade Concentrated to reduce transportation impacts Package recyclable Limits on fragrances used Certain ingredients prohibited Performance tested Vendor training available

50 Green Seal-certified Cleaning Products Available General/Multi/All Purpose Cleaner Restroom Cleaners Floor Cleaner/Finish/Stripper Toilet Bowl Cleaner/Descaler Tub & Tile/Grout Cleaner Glass Cleaner Degreaser Carpet Cleaner Hand Soap See

51 Green Cleaning Products Screen out toxic chemicals that can cause cancer, birth defects, eye and skin irritation Prohibit ingredients that are toxic to fish, deplete the ozone layer, or persist in the environment Are available on two WA contracts Grainger Industrial Supplies (11305) WSCA Green Cleaners Contract

52 Green Cleaning Saves Money CASE STUDY Minneapolis, MN conducted 3-year green cleaning pilot test and reported: Cost savings moving to metered dilution system away from hand mixing Fewer sick days for custodial staff Reduced waste and other liabilities Improved indoor air quality (IAQ)

53 Benefits Documented in Pilot Tests Cost savings Health & safety improvements Equivalent or better performance Time savings Smaller storage footprint Environmental benefits

54 Cost Savings: Disinfectants Product Size Cost Cost/Gal Conventional (NABC) 55 gal drum ~$380 $6.90 Conventional (NABC) 55 1-gallon bottles ~$660 $12.00 Green Alpha HP (1:64) 2 1/5 1.5L bottles ~$54 $0.96

55 Try Microfiber Cost-effective (life-cycle basis) Reduce chemical use (~1/2) Minimize water use (up to 95%) Prevent injuries (chemical exposure, back strain, accidents) Effective (reduce dirt, avoid cross-contamination) pdf

56 Avoid Aerosols Fine mist can penetrate lungs Many contain toxic ingredients Propellants hazardous/flammable Cans may explode Expensive Often ineffective

57 Avoid Anti-bacterial Cleansers American Medical Association position: No more effective than soap & water May increase germs resistance to antibiotics Strips off oil, which protects skin from cracking Kills friendly bacteria More expensive than regular hand soap

58 Bio-based Lubricants Meet same performance specs and offer economic and performance advantages Case Studies: King County uses vegetable-based hydraulic fluids to protect sensitive waterways and comply with Endangered Species Act; Seattle Public Utilities is replacing aerosol lubricants containing chlorinated solvents

59 Purchase for Zero Waste Avoid single-use items (e.g., disposable cutlery, paper towels, food service ware) Invest in water filters instead of bottled water Specify recyclable/compostable Choose reusable items (e.g., rechargeable batteries) Buy recycled-content products

60 Paper Calculator Developed by Environmental Defense Fund Promotes better paper choices by calculating benefits such as reductions in GHG emissions, energy, water and waste.

61 Environmental Benefits of Buying Recycled Paper

62 Rechargeable Batteries Can be re-charged up to 1000 times Reduces replacement and disposal costs Can be recycled free by the industryfinanced Rechargeable Battery Recycling Corp. (RBRC) Call2Recycle Program Can be found on WA State s Electrical Supplies contract (07400) and through Office Depot and Grainger

63 What is EPR? Extended producer responsibility (EPR) is a policy approach in which manufacturers take physical and/or financial responsibility for their products at the end of their useful life.

64 Encourage Take-Back in Purchasing Contracts Saves time by shifting responsibility for recycling to manufacturers and distributors Stimulates infrastructure for efficient recycling Encourages manufacturers to redesign their products to be more durable, more easily recyclable, and less toxic

65 How Do Municipalities Recycle Universal Waste Some don t Now? Some pay for recycling a la carte Some use HHW program Some negotiate contracts Product specific Category specific All hazardous materials All recyclables

66 Contracting for Producer Responsibility Options GOOD: Require VENDORS to collect and recycle products/packaging they sell you. Make sure vendors give proof they are recycling responsibly. First step: links recycling to product purchase. No assurance it will influence brand owners.

67 Contracting for Producer Responsibility Options BETTER: Require VENDORS to participate in manufacturer-financed recycling program

68 Carpet Recycling Carpet industry has established Carpet America Recovery Effort (CARE) to enhance infrastructure for carpet recycling CA Gold Carpet Standard requires operational recovery program and 8% reclamation rate; extra points given if higher reclamation rates met

69 Beware of Industry Self- Certified Green Products Industry standards are usually weaker than those set by independent third party organizations. Some industry-based certification programs include: Green Globes (green building) CRI (Carpet and Rug Institute)

70 Independent EPP Certifications Green Seal (low-toxicity cleaners, paints) Environmental Choice (Canada EcoLogo) Green Guard for Children and Schools (low-emitting materials) EPEAT (green computers) Green-e (renewable energy) USDA Organic/Fair Trade Energy Star (energy-efficient office equipment, CFLs and appliances)

71 Green Computer Equipment New certification for environmentally preferable CPUs, monitors & laptops EPEAT: Electronic Products Environmental Assessment Tool Toxins minimized: lead, mercury, cadmium, brominated flame retardants Energy-efficient, easily recyclable Manufacturers must offer takeback >800 green computer listings at

72 How EPEAT Works 3 tiers of EPEAT certification: Bronze (meets required criteria) Silver (meets required + 50% of optional criteria) Gold (meets required + 75% of optional criteria)

73 Who is using EPEAT? New York State (Office of General Services) Commonwealth of Massachusetts Province of Nova Scotia City of San Francisco City of Seattle Los Angeles County, CA City of San Jose, CA King County, WA Government of Canada New Zealand Ministry for the Environment US Marine Corps Executive Office of the President NASA US Department of Defense US Department of Energy US Department of Homeland Security US Department of Transportation US Department of Veterans Affairs US Department of Homeland Security US Environmental Protection Agency US General Services Administration

74 Who is using EPEAT? Seattle (May 2008) All electronic hardware provided to the City by under this Agreement shall meet or exceed the minimum criteria for Bronze environmental performance of the Electronic Products Environmental Assessment Tool (EPEAT), a program of the Green Electronics Council. The City will not purchase any electronic hardware that is not listed as an EPEAT-registered product. President Bush s Executive Order Strengthening Federal Environmental, Energy, and Transportation Management, requires that federal agencies when acquiring an electronic product to meet [agency] requirements, meets at least 95 percent of those requirements with an Electronic Product Environmental Assessment Tool (EPEAT)-registered electronic product.

75 Contracting for Producer Responsibility Options BEST: Buy products made by MANUFACTURERS that offer collection and recycling systems they operate or finance

76 Computer Take-Back CASE STUDY Portland, OR saved $9,000 using Dell s recycling service in its computer contract 800 units recycled Recyclers must sign Pledge of True Stewardship Addressing polystyrene packaging

77 Reusable Shipping Containers CASE STUDY: City of Seattle required their computer equipment to be delivered in reusable shipping containers All packaging is reusable or easily recyclable (corrugated cardboard)

78 Portland s Sustainable Procurement Strategy Coordinated with neighboring county Insures to maximum extent feasible goods and services comply with Sustainable City Principles Balances environmental, economic and equity issues Encourages decisions based on long-term costs

79 San Francisco s Sweat-free Procurement Ordinance Prohibits vendors from offering to SF departments products made in sweatshops Established Sweatfree Procurement Advisory Group Requires vendors to list factories used by manufacturers and their subcontractors Hired independent monitor

80 Sustainable Food Purchasing Food industry in top 3 for overall environmental impacts Give preference to food that is locally grown; organic/sustainable; fairly traded Portland, OR bought 45% local produce for county jail at no extra cost Sustainable Food Procurement policies target commodity and service contracts, caterers, concessions, vending machines

81 Key Elements of EPP Program EPP Policy Top Level Support Dedicated Staff Technical Support Agency Involvement Outreach Program Tracking and Recognition

82 10 Steps to Start Buying Green 1. Assemble a Green Team 2. Establish a process for working together (get top level support) 3. Define scope of the EPP initiative/policy 4. Prioritize contracts to change 5. Research environmentally preferable alternatives (evaluate availability, cost and performance)

83 10 Steps to Start Buying Green (continued) 6. Revise bid specifications 7. Evaluate bids 8. Advertise availability of environmental products on new contracts 9. Get feedback from end-users 10. Track and publicize successes

84 Key Elements of EPP Policy Define scope Reference applicable local laws Detail roles and responsibilities Set goals and measurement methods Give authority for Best Value procurement

85 Tracking and Reporting Collect baseline information, if possible Set goals that are easy to track Require vendors to submit data as part of their contracts Report annually on progress & future goals Consider e-procurement

86 E-Procurement Facilitate EPP during decentralized purchasing by requiring vendors to: Clearly label environmentally preferable products that meet YOUR criteria Require greenest products to be listed first via online searches Block products that do not meet environmental criteria Report periodically on $ amount of compliant and non-compliant purchases sold on your contract

87 Portland s Sustainable Procurement Education Program Education subcommittee Active agency involvement Lead agency; dedicated staff to conduct outreach Website Recognition program Evaluation process

88 Performance Testing Set performance criteria Draft technical specifications Should be no trade-off Certifications should address performance Request product samples prior to bidding process Conduct pilot tests Use existing standards (e.g., ASTM)

89 Provide Input Participate in product evaluation meetings Help identify products causing health problems Provide feedback to facility staff about new products

90 EPP Resources Responsible Purchasing Network: EPPNet List-serv: Local/State/Governments California Product Stewardship Council: Federal government: Independent green product certification programs (such as Green Seal)

91 For Assistance on EPP from Ecology, Contact: Karin Kraft Tina Simcich

92 Washington State s EPP Website List several environmentally preferable products State agencies, localities, school districts and other public entities can order Energy-efficient (low-mercury) lighting products Alternative fuel vehicles (hybrids and flex-fuel) EPEAT-certified computers and other electronics Recycled paint, carpeting and other green building products

93 King County Environmental Purchasing Bulletins Construction Leadership in green building Recycled concrete and impervious pavement Recycled-content carpet and carpet recycling Certified wood Office Supplies Recycled-content supply contracts ENERGY STAR requirements Remanufactured office furniture Fleets Hybrid vehicles (including diesel-electric buses) Biodiesel See

94 Questions? Comments? Info (at) greenpurchasing.org