Module 3: Environmentally Preferrable Purchasing

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1 Module 3: Environmentally Preferrable Purchasing

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3 Module 3: Environmentally Preferable Purchasing (EPP) Overview: Why Integrate Environmental Factors into Purchasing? The United States consumes about 25 percent of the world s resources, but has 5 percent of the world s population! According to the U.S. Census Bureau s 2012 Statistical Abstract of the United States, personal-consumption expenditures reached over $10 trillion in That s over $30,000 for every man, woman, and child in the U.S. Every individual purchase we make impacts the environment either by our consumption of raw materials or discard of waste, or both. From buying groceries to buying homes, each purchasing decision we make is an environmental decision. The U.S. Economy Is Driven By Commerce Transactions are the basis of commerce. A transaction signifies an agreement between two parties to exchange one thing for another. Every transaction represents an explicit agreement to accept a product and service offered to meet a specific need. EPP expands the transaction discussion beyond product or service function to the implicit agreement to accept the impact of the product or service on the environment during manufacturing, use, and ultimate disposal. Purchasing Decisions = Economic Decisions + Environmental Decisions Environmentally Preferable Purchasing What Is It All About? EPP includes environmental considerations with the price and performance criteria businesses use to make purchasing (transaction) decisions. EPP refers to the procurement of goods and services that have a reduced effect on human health and the environment as compared to competing goods and services serving the same purpose. It attempts to identify and reduce environmental impact and to maximize resource efficiency. EPP is also referred to as Environmental Purchasing, Affirmative Procurement, Green Procurement, and Green Purchasing. EPP is a process that deals with buying products or services that will reduce impact on human health and the environment. Factors considered when determining if products or services are environmentally preferable may include: How raw materials are acquired The production and manufacturing methods Product packaging The means of distribution The ability for reuse when the product is obsolete or damaged Operation and maintenance requirements A final disposal option when the item is no longer serviceable Energy Efficiency and Waste Reduction Resources and Practices for Government Agencies 30

4 Environmentally Preferred Purchasing has not been universally defined. This lack of universal definition creates one obstacle to implementation, but many organizations have chosen to move forward in demonstrating their commitment and ability to make purchases that reduce their impact on the environment. If you want to move forward immediately here are ten simple ways (developed by the City of San Francisco) to create an effective EPP program: Assemble a Green Team Establish a process of working together Define the scope of the EPP initiative Prioritize contracts to change Research environmentally preferable alternatives Revise bid specifications Evaluate bids Advertise the EP products to staff and conduct training Solicit feedback from staff members about product effectiveness Track and publicize success The following concepts are common to all of these green-purchasing efforts: Pollution Prevention Avoiding the creation of wastes from the start of a process, through the practices of source reduction and waste reduction. Reducing or eliminating toxicity, air emissions, and water emissions. Preventing transfer of pollution from one environmental medium (air, water, or land) to another. Life-Cycle Perspective Looking at costs beyond the purchase price. Considering costs and environmental impacts over the lifetime of a product or service (raw-material extraction, manufacturing, packaging, transport, energy consumption, maintenance, disposal). Resource Efficiency Give preference to reusable content and recycled materials over virgin materials, as well as to conserving water, energy and other resources in the manufacturing process. Protection of Natural Resources Natural resources include air, water, minerals, fossil fuels, plants, and animals. These resources consist of both renewable and nonrenewable elements. Protection implies sustainability, equitable access, and conservation of these resources. Management of the Supply Chain This involves the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply-chain management involves coordinating and integrating these flows both within and among organizations. It is concerned with planning, implementing, and controlling the flows of raw materials, in-process inventory, and finished goods from the point of origin to the point of consumption, and the corresponding information flows. It includes purchasing, manufacturing, and delivery of the product or service. 31 Energy Efficiency and Waste Reduction Resources and Practices

5 Product Stewardship An approach to environmental protection in which manufacturers, retailers, and consumers are encouraged (or required) to assume responsibility for reducing a product s impact on the environment. An example of this approach is Oklahoma s requirement that computer manufacturers take back their product for recycling or disposal at the end of its useful life. It includes all of the following terms, which represent various approaches to product stewardship: product responsibility, shared product responsibility, producer responsibility, manufacturer responsibility, extended product responsibility, extended producer responsibility, and other terms. Resources The Pacific Northwest Pollution Prevention Resource Center (PPRC) has compiled information that will assist purchasers in their efforts to establish or maintain an environmental purchasing program. Included is information that can assist in identifying green products, setting up an environmental purchasing program, general and specific resources that are available to purchasers, guides for locating green products, and examples of procurement programs that can be used as a guide for purchasers building or improving their own programs. A number of these resources also provide concrete examples identifying the overall cost savings in using environmentally preferable products achieved due to longer life of the product, reduced operating costs and/or reduced maintenance costs. EPP Programs and Strategies: Integrating Environmental and Social Factors into Procurement Practices for Government Agencies 32

6 Module 4: Water Efficiency Overview Water-efficiency programs can result in savings in the cost of water, sewer, and energy. This module provides an overview of water efficiency in institutional and commercial buildings with the intention of evaluating types of water uses, current water-efficient technologies available, and potential water-conservation savings that could be achieved. Regulatory Guidance The Energy Policy Act of 1992 (EPAct 1992) establishes minimum energy- and water-efficiency levels for classes of covered products as shown in Table 1. The US Green Building Council s Leadership in Energy and Environmental Design (LEED) rating system uses these EPAct standards to establish water-use baselines. Points are earned for reducing water use beyond the baseline results. LEED ratings are described further in Module 6: Green Building. * gpf = Gallons per Flush ** gpm = Gallons per Minute *** psi = Pounds per Square Inch Primary Water Uses in Institutional and Commercial Buildings Institutional and commercial uses of water mainly encompass domestic uses (toilet flushing, hand washing), heating and cooling, and landscape irrigation. Domestic water use usually represents the highest water use at 35 50% (Vickers 2001). Approximately 9% of the total water use in commercial and institutional facilities in the U.S. takes place in office buildings. The three largest uses of water in office buildings are restrooms, heating and cooling, and landscaping. Download the Office Buildings Fact Sheet This publication is issued by the Oklahoma Department of Environmental Quality authorized by Scott A. Thompson, Executive Director. Copies have been prepared at a cost of $0.336 each. Copies have been deposited with the publications clearinghouse of the Oklahoma Department of Libraries. (OEA\Energy Efficiency and Waste Prevention Practices for Government Agencies Module 3.indd 9/2017.)