CALIFORNIA ERIC GARCETTI MAYOR. January 24, Subject: ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) ANNUAL REPORT FY

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1 BOARD OF PUBLIC WORKS MEMBERS KEVIN JAMES PRES!DENT MONICA RODRIGUEZ VICE-PRESIDENT MATI SZABO PRESIDENT PRO TEMPORE MICHAEL DAVIS COMMISSIONER BARBARA ROMERO COMMISSIONER CITY OF Los ANGELES CALIFORNIA ERIC GARCETTI MAYOR January 24, 2014 BOARD OFFICE OF THE OF PUBLIC WORKS 200 NORTH SPRING STREET ROOM 361, CITY HAll LOS ANGELES, CA (213) 976-D261 (213) Fax ARLEEN P. TAYLOR EXECllTNE OFFICER #1 BOS Mayor Eric Garcetti Room No. 305 City Hall Attn: Mandy Morales City Council Room No. 395 City Hall Subject: ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) ANNUAL REPORT FY As recommended in the accompanying report of the Director of the Bureau of Sanitation, which this Board has adopted, the Board of Public Works hereby requests your approval to continue with the following recommendations: 1. Receive and file the Environmentally Preferable Purchasing (EPP) Annual Report FY That the Bureau of Sanitation continue to educate City employees about the EPP Program to increase awareness so that employees purchase environmentally preferable products in place of traditional products where feasible. 3. That the Bureau of Sanitation continue to test a tracking method for Sanitation's EPP purchases to create a model for other departments. Also, that the General Services Department (GSD) work with purchasing system vendor to test out a system tracking method.. 4. That the Bureau of Sanitation continue to research greenhouse gas (GHG) calculators and work with the contracted vendors and departments to evaluate the impact of using EPP products to reduce GHG emissions.

2 Mayor and Council -2- #1 BOS 1/24/14 5. That GSD continue to review and analyze stock items provided by the GSD Distribution Center Group (DCG) to ensure that green products are identifiable in the DCG catalog and are available for purchase. 6. That the Bureau of Sanitation keep the focus of the Clean Your Files Month campaign on the impacts of paper usage on GHG emissions by City offices. FISCAL IMPACT Board approval of this report will have no fiscal impact on the General Fund as this program does not require expenditures for EPP products above the cost of conventional products. The EPP Ordinance stipulates that the City of Los Angeles increase its purchase of environmentally friendly products while remaining fiscally responsible. Respectfully submitted, APT:mp

3 DEPARTMENT BUREAU OF SANITATION January 24,2014 OF PUBLIC WORKS ADOPTED BYTHE BOARD PUBLIC WORKS OF THE CITY A... oflosanlle.le.s California..., REfERRED TOTHE MAYOR AND REfEd~ td~jbl.ouncil '" CD: ALL ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) ANNUAL REPORT FY RECOMMENDATIONS The Bureau of Sanitation (Sanitation) recommends that the Board of Public Works approve and forward this report to the Mayor and City Council and continue with the following recommendations: 1. Recommend that Council receive and file this report. 2. Sanitation continues to educate City employees about the EPP Program to increase awareness so employees purchase environmentally preferable products in place of traditional products where feasible. 3. Sanitation continues to test a tracking method for Sanitation's EPP purchases to create a model for other departments. General Services Department (GSD) to work with purchasing system vendor to test out a system tracking method. 4. Sanitation continues to research greenhouse gas (GHG) calculators and work with the contracted vendors and departments to evaluate the impact of using EPP products to reduce GHG emissions. 5. GSD continues to review and analyze stock items provided by the GSD Distribution Center Group (DCG) to ensure that green products are identifiable in the DCG catalog and are available for purchase. 6. Sanitation keeps the focus of the Clean Your Files Month campaign on the impacts of paper usage on greenhouse gas emissions (GHG) by City offices. TRANSMITTALS 1. Vendor EPP Reports 2. Department EPP Reports 3. Proprietary Department EPP Reports Clean Your Files Campaign Flyer 5. Greenhouse Gas Reports: Paper, Gasoline, Concrete, and Toner Cartridges

4 BUREAUOF SANITATION BOARDREPORTNO; 1 January24, 2014 FISCAL IMPACT Board approval of this report will have no fiscal impact on the General Fund as this program does not require expenditures for EPP products above the cost of conventional products. The EPP Ordinance stipulates that the City of Los Angeles increase its purchase of environmentally friendly products while remaining fiscally responsible. DISCUSSION Background The City of Los Angeles adopted the Environmentally Preferable Purchasing (EPP) Program in June 2009 through Ordinance The Ordinance expanded the existing green purchasing policies established through Buy Recycled 2000 and requires each City department to report annually regarding their environmentally preferable purchasing practices. Sanitation took over the program from GSD in July Environmental factors to be considered in selecting products include the following: recyclability, recycled-content, pollutant releases, waste generation, energy consumption, depletion of natural resources, and potential impact on human health and the environment. The City's purchases help foster a market for environmentally preferable products by motivating more companies to produce them. GSD reports on the City's Buy Recycled Program on a calendar year basis for the State's mandated report per AB939. For calendar year 2012, the City purchased approximately $12M in recycled products including re-refined oil, retread tires, auto parts, etc. Green Vendors for the City of Los Angeles Vendor participation is a key component in providing EPP information on an annual basis. City departments have also been asked to provide information about their EPP practices as required by the EPP Ordinance. Sanitation received environmental purchasing reports from twelve of the Cit~'s green vendors, including the following: Grainger@, Haworth", Hewlett-Packard', Jones Lumber", Liberty Paper", Office Depot", Printing Technology, Inc. (PTi ), Recycled Aggregate Materials Company (RAMCO), SC Fuels"; Spicers, Unisource", Vista Paint"

5 January 24, 2014 Page 3 Grainger Grainger provides the City with a wide array of custodial supplies including low Volatile Organic Compound (VOC) cleaning chemicals and adhesives, non-corrosive degreasers, Energy Star rated power tools such as power drills, recycled-content ladders and trash bags, and LED lamps. The City of Los Angeles spent $145,745 on environmentally friendly products from Grainger. These products have several EPP attributes including lower energy consumption, low-toxicity, made of recycled material, or contain low or novocs. Haworth The City purchases recycled-content cubicle and office furniture through Haworth". Recycled-content levels vary from 10% recycled-content to 98% recycled-content depending on the product selected. The City spent $86,976 on goods from Haworth", with products containing an average of 57% recycled-content. Hewlett-Packard (Hp ) Hp provides the City with computer equipment and printers. The City spent $7,524 on EPEA~ and Energy Star certified equipment. EPEAT is a third-party certification that reviews electronic equipment and identifies greener computer and electronic equipment options. They review attributes beyond energy efficiency. EPEA~ certified computers tend to be less toxic, are easier to recycle, and are also more energy efficient. Jones Lumber Jones Lumber provides the City with recycled-content building material. The City spent $43,165 on four percent (4%) and thirty-three percent (33%)recycled-content building material. Office Depot Office Depot@ has two contracts with the City of Los Angeles. Contract provides the City's Council-controlled departments with various office supplies and Contract provides the City with recycled-content ergonomic chairs.. Office Depot has a large line of "green" products in its Green Book catalog and the GreenerOffice website. The company continues to create new ways of reducing waste and is expanding the green product line offered to its customers. It has a "shade of green" rating system for its green products, indicating Light Green, Mid Green, and Dark Green, with the Dark Green products having either multiple green attributes or the highest level of a single green attribute.

6 January 24, 2014 Page 4 The City purchased ergonomic chairs that are made of 27% recycled-content and are also Greenguard certified, meeting indoor air quality pollutant guidelines. The City spent $777,134 on EPP office supplies through Office Depot which is 31% of the total amount purchased. The City also spent $326,450 in ergonomic, recycled-content, low VOC chairs. PTi PTi provides the City of los Angeles with remanufactured toner cartridges for use in a variety of City-owned printers. Remanufactured toner cartridges reduce waste as used cartridges are collected, repaired, and refilled instead of being discarded. PTi also provides a free pickup of empty cartridges for City departments and remanufacturers them at their location in Chatworth. The City spent $212,159 on 6,378 remanufactured toner cartridges from PTi. PTi collected 8,890 used toner and inkjet cartridges from City facilities for use in the remanufacturing process. RAMCO RAMCO collects and recycles concrete and asphalt from the City through a program with the Department of Public Works Bureau of Street Services. In FY , the program recycled 152,344 tons. They recycle the concrete and asphalt into aggregate base material. The base is turned into various products such as Greenrock, a 100% recycled concrete ground cover; and Recycled Concrete Aggregate (RCA) that is used as fill sand for pipe bedding. The City spent $32,783 to purchase 6,801 tons of the recycled crushed base materials from RAMCO. SC Fuels'" SC Fuels1M is the City's current contracted vendor for reformulated gasoline. Reformulated gasoline is fuel made from a minimum of 10% ethanol. This minimum is mandated by the State of California. Reformulated gasoline provides many benefits to the environment, including reduced airborne pollutants and emissions. A 2002 environmental report by the California Environmental Protection Agency's Air Resources Board showed that statewide use of reformulated gasoline provided significant reductions in ozone, particulate matter precursor emissions, and toxic air pollutants.

7 January 24,2014 Page 5 The City reduced its fuel usage from FY to FY by 74,673 gallons through fuel efficiency efforts by City employees such as using public transportation such as the DASH, carpooling to events and meetings, etc. The reduction resulted in an estimated decrease of 664 metric tons of GHG emissions. Spicers and Liberty Paper Spicers and Liberty Paper were the City's contracted vendors for office paper for FY The Spicers contract offered a variety of recycled-content paper including 10% recycled-content. 30% percent recycled-content. and up to 100% recycled-content paper. Thirty percent (30%) recycled-content paper was the most purchased product by City departments. Of the total 456 tons of recycled-content paper that was purchased, 30% recycled-content paper made up 453 tons of that amount. The City spent a total of $889,256 on paper for various printing jobs for all departments. $235,149 of that total amount purchased was non-recycled paper. As of September 15, 2012, Liberty Paper was the City's contracted vendor for office paper for remainder of FY The contract offered a variety of recycled-content paper including 30% recycled-content, 50% percent recycled-content, and up to 100% recycled-content paper. Thirty percent (30%) recycled-content paper was the most purchased product by City departments and totaled 1,307 tons. The City spent a total of $888,214 on paper for various printing jobs for all departments. Only $20,071 of that total amount purchased was non-recycled paper. By using recycled-content paper the City reduced its greenhouse gas (GHG) emissions (See Attachment 5 for more details). Unisource The City currently has four contracts that supply different categories of janitorial products; unlsource" is one of the main contracts for cleansers and disinfectants. untsource" also holds a similar contract with the Los Angeles World Airports. Unlsource" provides a variety of "green" options ranging from, third-party certified bathroom cleansers, to paper towel rolls and dispensers which reduce paper usage and disposal. The City spent $1.2M on green products' from Unisource", Unlsource'" provides some City facilities with chemical-free floor strippers. The floor strippers use only water and specialized stripping brushes. By using these floor strippers, the City saves money on the purchase of stripping chemicals, and avoids the airborne toxins normally released from traditional floor stripping chemicals.

8 January 24, 2014 Page 6 Of the $1.2M spent on green products from Unlsource", $184,515 was spent on toilet paper and paper towels that have been certified by Green Seal and EcoLogo. Vista Paint Vista Paint provides the City with EPP options for paint, sealers, primer, and stain killer. They are LEED compliant products that have low odor or low-voc attributes. The City spent $66,275 on green certified paint, sealers, primer, and stain killer. City Department Green Purchasing Sanitation requested that each City Department, Proprietary Department, and Council Office submit a report summarizing their EPP purchases for the fiscal year, addressing any EPP products they tested, and highlighting any EPP program that was implemented. Highlights of these individual reports are below. Note, not all departmental activities have been mentioned. The full reports submitted by departments are in Attachments 2 and 3. The Department of Aging reduced the number of printers in use by 90% after they moved to Figueroa Plaza. The move to the new building also enabled employees to use the DASH, reducing the use of City fleet vehicles by 116 trips, thus reducing fuel usage. The Department of Animal Services spent over $40,000 on toners, 100% of which were EPP products. They have also purchased recycled-content paper from both Spicers and Liberty Paper. They will continue to implement various EPP products in the future as long as they perform well and are cost effective. The Office of the Controller reports that the EPP products they tested from Office Depot performed as well as the products they previously used. The~ also found that the remanufactured toner cartridges they purchased from PTi performed well and cost less than cartridges previously purchased. Ninety-one percent (91 %) of the toner cartridges they purchased from PTi were EPP office products. The City Administrative Office (CAO) spent $8,094 in recycled-content paper, making 100% of their paper purchases EPP. The City Ethics Commission uses many recycled-content products through the Office Depot contract. They purchase refillable white out tape and pens, which reduces their office supply waste.

9 January24, 2014 Page7 The Los Angeles Convention Center follows a Sustainable Purchasing Policy - Material and Resources, implementing the purchase of EPP products. They purchase citrus cleaner in bulk using 55 gallon drums to reduce product packaging waste. The cleaner is biodegradable and the drums are returned to the manufacturer for reuse. They also purchase rechargeable batteries and use energy-efficient lighting. The Los Angeles Fire and Police Pensions purchased many recycledcontent office supplies. Ninety-two percent (92%) of their paper purchases from both Spicers and Liberty Paper@were EPP products. The General Services Department (GSD) purchased printers with low-voc plates and soy-based ink. They also purchased other EPP products such as reclaimed motor oil, retreaded tires, and recycled-content paper. The Los Angeles Housing Department (LAHD) implemented an Upcycling Scratch Pad program, where they gather scratch paper that has been used on one side, cut it into quarter sheets, and created paper pads through GSD's Printshop. This greatly reduces the department's paper waste. They also require employees to take the DASH when traveling from the LAHD Main Office to the Civic Center (with a few exceptions). This results in fuel use reduction in their fleet vehicles. The Department of Public Works, Bureau of Contract Administration (BCA) purchased over $4,500 of paper from Liberty Paper. One-hundred percent (100%) of their paper purchases were EPP products, consisting of 50% recycled-content paper. They also rely on the purchase of office supplies with minimal packaging and encourage their employees to use public transportation. The Department of Public Works, Bureau of Engineering (BOE) returns old cell phones, accessories, and cartridges for recycling. They spent $58,368 on Office Depot supplies, forty-eight percent (48%) of which were EPP products. The Department of Public Works, Bureau of Sanitation (Sanitation) implemented the use of more EPP office supplies making 50% of their total office supply purchases EPP products. Two Sanitation divisions purchase 100% recycled-content paper as the standard paper. In FY12-13, the Solid Resources Collection fleet which collects solid resources from residents, includes 554 clean fuel vehicles operating on 4.1 million gallons of natural gas (LNG or CNG). Based on this volume of LNG, the corresponding total GHG emission reduction was estimated at 4000 MTC02e for FY Clean fuel vehicles make up seventy-eight (78%) of the Solid Resources collection fleet.

10 BUREAUOF SANITATION BOARDREPORTNO.1 January24,2014 Page8 The Department of Public Works, Bureau of Street Services (BOSS) purchased $17,427 worth of Liberty Paper, making seventy-seven percent (77%) of their paper purchases EPP products. They are also looking into implementing EPP products into everyday office supplies for the Bureau. The Department of Public Works, Bureau of Street Lighting (BSL) spent over $5.5 million dollars on Light Emitting Diode (LED) lights and materials for the LED Conversion Program. BSL estimates that upgrading City street lights to LED lights would lead to 40% in energy savings. They also provided environmental education by putting up posters encouraging the purchasing of recycled-content office supplies. The Los Angeles Zoo spent over $215,000 on EPP products, including remanufactured toner cartridges, pharmaceuticals, cleaning supplies, office.supplies, and construction equipment. The department makes a conscious effort to purchase supplies which utilized recycled materials in the packaging, were made from recycled-content, or contained recyclable materials. Proprietary Department Green Purchasing The EPP Ordinance requires the City's proprietary departments to create a similar response to the City's move to environmentally preferable products. In line with this, the Department of Water and Power (DWP), the Los Angeles World Airports (LAWA), and the Harbor Department (Harbor) submitted statistics from their department's green activities. Some of those highlights include: DWP installed solar panels and uses them to generate clean, renewable energy. They offer Free Water Conservation Equipment, such as faucets and showerheads. They also recycle the used motor oil and antifreeze from their fleet vehicles. LAWA's custodial supply contracts currently contain EPP-qualified products. The department spent over $2.3M on custodial products including recycledcontent paper towels, toilet paper, trash liners, liquid hand soap, and bathroom cleaners. Seventy-six percent (76%) of their office supply purchases went towards EPP products, a forty-two percent (42%) increase from last fiscal year. Harbor spent over $1M on alternative fuel passenger vehicles that were either hybrid or electric. The department also purchased the following electric vehicles: a sedan, cart, and forklift. Fifty-eight percent (58%) of their office supply purchases went towards EPP products, while one hundred percent (100%) of their janitorial cleaning products were classified as EPP.

11 January 24, 2014 Page 9 Sanitation EPP Activities for FY Sanitation revamped its annual Clean Your Files Month campaign to focus on the impacts of paper usage on greenhouse gas emissions. (See campaign flyer in Attachment 4). Clean Your Files Month is an annual campaign held every April for City facilities that focuses on clearing out old paperwork and reducing paper usage. The 2013 campaign also challenged departments to upgrade 10 cases of the standard 30% recycled-content paper to 50% or 100% recycled-content paper. The financial impact would be minimal. By accepting the challenge and upgrading the 10 cases of paper, the environmental benefits would be as follows: Recycled-Content 50% 100% Trees Saved 1 4 Greenhouse Gas Reduction 1031bs. CO2 3621bs. CO 2 Water Savings 561 gallons 1963 gallons City Departmental Education Sanitation provides EPP training for City departments to educate employees about how EPP products can be incorporated into their regular purchases. Sanitation gave six EPP classes, training 80 City employees from LAPD, GSD, Sanitation, and the Library Department. Attendees were provided with samples of various EPP products to test in their office. Sanitation will continue to provide EPP training for City departments. For efficiency purposes, recycling and EPP training have been incorporated into one class. Contract Review Sanitation has been reviewing the commodity contracts established by GSD to establish a baseline listing of contracts containing EPP-compliant products vs. contracts that do not contain them, but have the potential to contain EPP products. Once the list is established, Sanitation will send it to GSD for review and discussion to move forward with updating bid specifications. EPPTracking Code Sanitation will continue to test a tracking method through the use of a subtask in the funding string before creating a model for other departments to follow. Not all departments will be able to use this method since some departments already have a designated use for their subtask, per Controller's Office. However, it is a possible option to assist departments in compiling purchasing data for their Annual EPP Report. The key to using this tracking method is to ensure that purchasing staff use the subtask. Sanitation staff has been reminded to continue using the funding string for FY It has been noted that the use of the substask is tedious and may not be the most efficient method of tracking EPP purchases. A meeting with buyers from each division will be held to discuss other options that are more efficient for tracking.

12 January 24, 2014 Page 10 Environmental Impact of the EPP Program Sanitation researched various GHG calculators. The City has several thousand commodities, and calculators do not exist for all of them. Additionally, each calculator requires different information that mayor may not be readily available. Each calculator provides guestimates. Calculators were found for concrete, Raper, cartridges, and fuel. Using data provided by RAMCO, Spicers, Liberty Paper", PTi, and SC Fuels'", Sanitation found that the City was able to reduce its GHG emissions by 8,312 MTC0 2 e through its EPP practices related to the four commodities. The GHG reports from the various calculators are detailed in Attachment 5. BSL estimates that the LED Conversion Program will reduce carbon emissions by approximately 40,500 metric tons per year and anticipates a savings of over $10 million per year in energy and repair costs, and an overall 40% energy reduction. Through the use of 554 clean fuel vehicles BOS estimates that it reduced its GHG emissions by 4,000 metric tons for FY The GHG reductions based on the six commodities are summarized below. Green house Gas S avmas. FY Base d on S' IX Commo di ltles. GHG Reduction Commoditv Purchases (MTC02e) Equivalencies Cartridges 6378 remanufactured cartridges 19 Saved 45 barrels of oil Concrete 6801 tons recycled concrete 318 Saved 40,919 gallons of fuel Paper 1,473 tons recycled-content paper 499 Saved 12,783 trees Reduced fuel consumption Removed 138 cars from Fuel by 74,673 gallons 664 the road for 1 year (compared to FY11-12) Vehicles 554 refuse collection clean fuel vehicles Lights LED lights for City streets 40,500 Total GHG Reduction (based on six commodities) 46,000 4,000 Saved 9,302 barrels of oil Electricity to power 5,572 homes for 1 year

13 January 24,2014 Page 11 Sanitation will continue to research the various GHG calculators available and work with the vendors and departments to further evaluate the impact of purchasing EPP products on the environment based on the information that is available. The City's EPP program is having a positive impact on the environment in helping to reduce resource and energy consumption. Sanitation will continue its efforts to continue to educate City employees about the positive effect environmentally preferable purchasing can have on the environment. ~~~;<R, Sanitation Prepared by: Marivic Sabillo, SRCRD (213)