[Federal Register Volume 61, Number 217 (Thursday, November 7, 1996)]
[Proposed Rules]
[Pages 57748-57759]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28733]



[[Page 57747]]


_______________________________________________________________________

Part III





Environmental Protection Agency





_______________________________________________________________________



40 CFR Part 247



Comprehensive Guideline for Procurement of Products Containing 
Recovered Materials; Proposed Rule and Notice

  Federal Register / Vol. 61, No. 217 / Thursday, November 7, 1996 / 
Proposed Rules  

[[Page 57748]]



ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 247

[SWH-FRL-5628-4]
RIN 2050-AE23


Comprehensive Guideline for Procurement of Products Containing 
Recovered Materials

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency today is proposing an 
amendment to the May 1, 1995 Comprehensive Procurement Guideline (CPG). 
EPA is designating 13 new items that are or can be made with recovered 
materials. These items include shower and restroom dividers; latex 
paint; parking stops; channelizers; delineators; flexible delineators; 
snow fencing; garden and soaker hoses; lawn and garden edging; printer 
ribbons; ink jet cartridges; plastic envelopes; and pallets. In 
addition, this action clarifies EPA's previous designation of floor 
tiles, structural fiberboard, and laminated paperboard as items that 
can be made with recovered materials.
    The CPG implements a section of the Resource Conservation and 
Recovery Act (RCRA). This section requires EPA to designate items that 
are or can be produced with recovered materials and to recommend 
practices for the procurement of designated items by procuring 
agencies. Once EPA designates an item, RCRA requires any procuring 
agency using appropriated Federal funds to procure that item to 
purchase it with the highest percentage of recovered materials 
practicable. Today's proposed action will foster markets for materials 
recovered from solid waste by using government purchasing power to 
stimulate the use of these materials in the manufacture of new 
products.
    Today's proposed amendment also includes the procurement 
limitations set forth in RCRA on competition, price, availability, and 
performance. These limitations describe the circumstances in which 
procurement of designated items is not required. They were 
inadvertently omitted from the May 1, 1995 CPG.

DATES: EPA will accept public comments on this proposed rule until 
February 5, 1997.

ADDRESSES: To comment on this proposal, please send an original and two 
copies of comments to: RCRA Information Center (5305W), U.S. 
Environmental Protection Agency, 401 M Street, SW., Washington, DC 
20460. Please place the docket number F-96-CP2P-FFFFF on your comments.
    If any information is confidential, it should be identified as 
such. An original and two copies of Confidential Business Information 
(CBI) must be submitted under separate cover to: Document Control 
Officer (5305W), Office of Solid Waste, U.S. Environmental Protection 
Agency, 401 M Street, SW., Washington, DC 20460.
    Documents related to today's proposal are available for viewing at 
the RCRA Information Center (RIC), located at: U.S. Environmental 
Protection Agency, 1235 Jefferson Davis Highway, Ground Floor, Crystal 
Gateway One, Arlington, VA 22202. The RIC is open from 9 a.m. to 4 p.m. 
Monday through Friday, except for Federal holidays. The public must 
make an appointment to review docket materials. Call (703) 603-9230 for 
appointments. Copies cost $.15 per page.

FOR FURTHER INFORMATION CONTACT: For general information contact the 
RCRA Hotline at (800) 424-9346 or, in the Washington, D.C. area at 
(703) 412-9810. For technical information on individual item 
designations, contact the following EPA staff: Construction, 
landscaping, transportation, and park and recreation products'Terry 
Grist, (703) 308-7257; Non-paper office products--Janice Johnson, (703) 
308-7280; Vehicular and miscellaneous products--Sue Nogas, (703) 308-
7251; Paper and paper products--Dana Arnold, (703) 308-7279. For all 
other technical information, contact Terry Grist at (703) 308-7257.

SUPPLEMENTARY INFORMATION:

Regulated Entities

    This action may potentially affect those procuring agencies that 
purchase the following: shower and restroom dividers, latex paint, 
floor tiles, structural fiberboard, laminated paperboard, parking 
stops, temporary traffic control devices, snow fencing, garden and 
soaker hose, lawn and garden edging, printer ribbons, ink jet 
cartridges, plastic envelopes, or pallets. For purposes of RCRA section 
6002, procuring agencies include the following: (1) Any Federal agency; 
(2) any State or local agencies using appropriated Federal funds for a 
procurement; or (3) any contractors with these agencies (with respect 
to work performed under the contract). The requirements of section 6002 
apply to such procuring agencies only when procuring designated items 
where the price of the item exceeds $10,000 or the quantity of the item 
purchased in the previous year exceeded $10,000. Potential regulated 
entities for this rule are shown in Table 1.

   Table 1.--Entities Potentially Subject to Section 6002 Requirements  
                       Triggered by CPG Amendments                      
------------------------------------------------------------------------
                Category                 Examples of regulated  entities
------------------------------------------------------------------------
Federal Government.....................  Federal departments or agencies
                                          that procure $10,000 or more  
                                          worth of a designated item in 
                                          a given year.                 
State Government.......................  A State agency that uses       
                                          appropriated Federal funds to 
                                          procure $10,000 or more worth 
                                          of a designated item in a     
                                          given year.                   
Local Government.......................  A local agency that uses       
                                          appropriated Federal funds to 
                                          procure $10,000 or more worth 
                                          of a designated item in a     
                                          given year.                   
Contractor.............................  A contractor working on a      
                                          project funded by appropriated
                                          Federal funds that purchases  
                                          $10,000 or more worth of a    
                                          designated item in a given    
                                          year.                         
------------------------------------------------------------------------

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be affected by this 
action. This table lists the types of entities of which EPA is now 
aware that could potentially be subject to regulatory requirements 
triggered by this action. To determine whether your procurement 
practices are affected by this action, you should carefully examine the 
applicability criteria in 40 CFR 247.2. If you have questions regarding 
the applicability of this action to a particular entity, consult the 
person listed in the preceding FOR FURTHER INFORMATION CONTACT section.

Preamble Outline

I. Authority
II. Background
    A. Criteria for Selecting Items for Designation
    B. Request for Comments
    C. Additional Information
III. Procurement Limitations of RCRA Section 6002
IV. Clarification of Floor Tiles, Structural Fiberboard and 
Laminated Paperboard Designations
    A. Floor Tiles
    B. Structural Fiberboard and Laminated Paperboard
V. Definitions
VI. Construction Products
    A. Shower and Restroom Dividers
    1. Background
    2. Rationale for Designation

[[Page 57749]]

    B. Latex Paint
    1. Background
    2. Rationale for Designation
VII. Transportation Products
    A. Parking Stops
    1. Background
    2. Rationale for Designation
    B. Temporary Traffic Control Devices
    1. Background
    2. Rationale for Designation
VIII. Park and Recreation Products
    A. Snow Fencing
    1. Background
    2. Rationale for Designation
IX. Landscaping Products
    A. Garden and Soaker Hoses
    1. Background
    2. Rationale for Designation
    B. Lawn and Garden Edging
    1. Background
    2. Rationale for Designation
X. Non-Paper Office Products
    A. Printer Ribbons
    1. Background
    2. Rationale for Designation
    B. Ink Jet Cartridges
    1. Background
    2. Rationale for Designation
    C. Plastic Envelopes
    1. Background
    2. Rationale for Designation
XI. Miscellaneous Products
    A. Pallets
    1. Background
    2. Rationale for Designation
XII. Designated Item Availability
XIII. Economic Impact Analysis
    A. Requirements of E.O. 12866
    1. Summary of Costs
    2. Product Cost
    3. Summary of Benefits
    B. Unfunded Mandates Reform Act of 1995 and Consultation with 
State, Local, and Tribal Governments
    C. Impacted Entities
    D. Regulatory Flexibility Act and Small Business Regulatory 
Enforcement Fairness Act
XIV. Supporting Information and Accessing Internet

I. Authority

    This guideline is proposed under the authority of sections 2002(a) 
and 6002 of the Solid Waste Disposal Act, as amended by the Resource 
Conservation and Recovery Act of 1976, as amended, 42 U.S.C. 6912(a) 
and 6962, and section 502 of Executive Order 12873, Federal 
Acquisition, Recycling, and Waste Prevention'' (58 FR 54911, October 
22, 1993).

II. Background

    Section 6002(e) of the Resource Conservation and Recovery Act of 
1976 (RCRA or the Act) requires EPA to designate items that are or can 
be made with recovered materials and to recommend practices to assist 
procuring agencies in meeting their obligations with respect to 
designated items under RCRA section 6002. After EPA designates an item, 
RCRA requires that each procuring agency, when purchasing a designated 
item, must purchase that item composed of the highest percentage of 
recovered materials practicable.
    Executive Order 12873 (Executive Order) establishes the procedure 
for EPA to follow in implementing RCRA section 6002(e). Section 502 of 
the Executive Order directs EPA to issue a Comprehensive Procurement 
Guideline (CPG) that designates items that are or can be made with 
recovered materials. Concurrent with the CPG, EPA must publish its 
recommended procurement practices for purchasing designated items, 
including recovered materials content levels, in a related Recovered 
Materials Advisory Notice (RMAN). The Executive Order also directs EPA 
to update the CPG annually and to issue RMANs periodically to reflect 
changing market conditions. The CPG was published on May 1, 1995 (60 FR 
21370). It established eight product categories, designated 19 new 
items, and consolidated five earlier item designations.
    Today, EPA is clarifying the previous designations for floor tiles, 
structural fiberboard, and laminated paperboard, and is also proposing 
to designate 13 additional items. The items proposed for designation 
are listed below under their associated product category.

Construction Products
    Floor tiles (clarification)
    Structural Fiberboard and Laminated Paperboard (clarification)
    Shower and restroom dividers
    Latex paint
Transportation Products
    Parking stops
    Channelizers
    Delineators
    Flexible delineators
Park and Recreation Products
    Snow fencing
Landscaping Products
    Garden and soaker hoses
    Lawn and garden edging
Non-Paper Office Products
    Printer ribbons
    Ink jet cartridges
    Plastic envelopes
Miscellaneous
    Pallets

A. Criteria for Selecting Items for Designation

    While not limiting consideration to these criteria, RCRA section 
6002(e) requires EPA to consider the following when determining which 
items it will designate:
    (1) Availability of the item;
    (2) Potential impact of the procurement of the item by procuring 
agencies on the solid waste stream;
    (3) Economic and technological feasibility of producing the item; 
and
     (4) Other uses for the recovered materials used to produce the 
item.
    EPA also consulted with Federal procurement and requirement 
officials to identify other criteria to consider when selecting items 
for designation. Based on these discussions, the Agency concluded that 
the limitations set forth in RCRA section 6002(c) should also be 
factored into its selection decisions. This provision requires each 
procuring agency that procures an item designated by EPA to procure the 
item composed of the highest percentage of recovered materials 
practicable, while maintaining a satisfactory level of competition. A 
procuring agency, however, may decide not to procure an EPA-designated 
item containing recovered materials if it determines: (1) The item is 
not reasonably available within a reasonable period of time; (2) the 
item fails to meet the performance standards set forth in the agency's 
specification; or (3) the item is available only at an unreasonable 
price.
    EPA recognized that the above criteria limit the conditions under 
which procuring agencies must purchase EPA-designated items with 
recovered materials content, and, thereby, could limit the potential 
impact of an individual item designation. (The limitations of section 
6002(c) also effectively describe the circumstances in which a 
designated item is ``available'' for purposes of the statute.) For 
these reasons, EPA is also taking into account the limitations cited in 
RCRA section 6002(c) in its selection of items for designation in 
today's proposed CPG. Thus, the Agency developed the following criteria 
for use in selecting items for designation: use of materials found in 
solid waste, economic and technological feasibility and performance, 
impact of government procurement, availability and competition, and 
other uses for recovered materials. These criteria are discussed in 
detail in Section II of the document entitled, ``Comprehensive 
Procurement Guideline (CPG) II--Supporting Analyses.'' A copy of this 
document is included in the RCRA public docket for this rule.
    EPA has adopted two approaches in its designation of items that are 
made with recovered materials. For some items, such as floor tiles, the 
Agency designated broad categories of items and provided information in 
the RMAN as to their appropriate applications or uses. For other items, 
such as plastic trash bags, EPA designated specific items, and, in some 
instances, included in the designation the specific types of recovered 
materials or applications to which the designation applies. The

[[Page 57750]]

Agency explained these approaches to designating items in the preamble 
to the CPG (60 FR 21373, May 1, 1995).

    EPA sometimes had information on the availability of a 
particular item made with a specific recovered material (e.g., 
plastic), but no information on the availability of the item made 
from a different recovered material or any indication that it is 
possible to make the item with a different recovered material. In 
these instances, EPA concluded that it was appropriate to include 
the specific material in the item designation in order to provide 
vital information to procuring agencies as they seek to fulfill 
their obligations to purchase designated items composed of the 
highest percentage of recovered materials practicable. This 
information enables the agencies to focus their efforts on products 
that are currently available for purchase, reducing their 
administrative burden. EPA also included information in the proposed 
CPG, as well as in the draft RMAN that accompanied the proposed CPG, 
that advised procuring agencies that EPA is not recommending the 
purchase of an item made from one particular material over a similar 
item made from another material. For example, EPA included the 
following statement in the preamble discussion for plastic desktop 
accessories (59 FR 18879, April 20, 1994): This designation does not 
preclude a procuring agency from purchasing desktop accessories 
manufactured from another material, such as wood. It simply requires 
that a procuring agency, when purchasing plastic desktop 
accessories, purchase these accessories made with recovered 
materials. * * *''

    The Agency understands that some procuring agencies may believe 
that the designation of a broad category of items in the CPG requires 
them (1) to procure all items included in such category with recovered 
materials content and (2) to establish an affirmative procurement 
program for the entire category of items, even where specific items 
within the category may not meet current performance standards. This is 
clearly not required under RCRA as implemented through the CPG and the 
RMAN. RCRA section 6002 does not require a procuring agency to purchase 
items with recovered materials content that are not available or that 
do not meet a procuring agency's specifications or reasonable 
performance standards for the contemplated use. Further, section 6002 
does not require a procuring agency to purchase such items if the item 
with recovered materials content is only available at an unreasonable 
price or the purchase of such item is inconsistent with maintaining a 
reasonable level of competition. However, EPA stresses that, when 
procuring any product for which a recovered materials alternative is 
available that meets the procuring agency's performance needs, if all 
other factors are equal, the procuring agency should seek to purchase 
the product made with highest percentage of recovered materials 
practicable.
    The items proposed for designation today have all been evaluated 
with respect to the EPA's criteria. Details of these evaluations are 
discussed in Sections VI-XI of the ``Supporting Analyses'' background 
document. Sections VI-XI of this action provide a summary of EPA's 
rationale for designating these items.

B. Request for Comments

    EPA requests comments and information throughout this preamble. In 
general, the Agency is requesting comments on: (1) The items selected 
for designation and (2) the accuracy of the information presented in 
the discussions of the basis of the item designations. Requests for 
specific comments and information are included in the narrative 
discussions for each of the designated items, which follow in sections 
VI through XI.
    EPA also is requesting comment on the draft RMAN. The RMAN can be 
found in the notice section of today's Federal Register. It recommends 
recovered materials content levels and procurement methods for each of 
the items EPA proposes to designate today.

C. Additional Information

    For additional background information, including information on 
RCRA requirements, Executive Order directives, the criteria and 
methodology for selecting the proposed designated items, and a list of 
other items considered for designation, please consult ``Comprehensive 
Procurement Guideline (CPG) II--Supporting Analyses.'' Information on 
obtaining this background document is provided in the section XIV, 
Supporting Information and Internet Access.

III. Procurement Limitations of RCRA Section 6002

    In the May 1, 1995 CPG, the Agency amended 40 CFR 247.2 to include 
the RCRA provisions on the applicability of the guidelines to procuring 
agencies. (See 60 FR 21381.) In that amendment, EPA inadvertently 
failed to include the statutory limitations set forth in section 
6002(c)(1) (A) through (C). These provisions authorize a procuring 
agency to decide not to purchase EPA designated items with recovered 
materials based on the following determinations:

    1. The agency is unable to secure a satisfactory level of 
competition;
    2. The item is not reasonably available within a reasonable 
period of time;
    3. The item fails to meet the reasonable performance standards 
set forth in the agency's specification; and
    4. The item is available only at an unreasonable price.

    Today, in Sec. 247.2(d), EPA is proposing to add the procurement 
limitations set forth in RCRA section 6002(c)(1) (A) through (C) which 
were inadvertently omitted in the May 1, 1995 CPG.

IV. Clarification of Floor Tiles, Structural Fiberboard and Laminated 
Paperboard Designations

    In the May 1, 1995 CPG, EPA designated floor tiles, structural 
fiberboard, and laminated paperboard and, in the RMAN, provided 
recommendations, including recovered materials content levels for these 
items. Since that publication, EPA has learned that there may be some 
confusion on the part of procuring agencies as to their obligation to 
purchase these items for specific applications. In fact, the Agency 
received inquiries regarding the requirements to purchase floor tile 
and structural fiberboard for use as acoustical ceiling tile. Based on 
these inquiries, the Agency concluded that it should clarify the 
obligations of procuring agencies with respect to these items. The 
Agency soon will publish an action further clarifying these issues.

A. Floor Tiles

    In the CPG, EPA designated 19 items that are, or can be, produced 
with recovered materials content, including floor tiles and patio 
blocks containing recovered rubber or plastic (40 CFR 247.12(e)). The 
Agency designated these items as broad categories of items, 
encompassing many different applications. In the RMAN, however, the 
Agency recommended that procuring agencies purchase floor tiles with 
specified minimum recovered rubber or plastic content for ``heavy duty/
commercial type'' applications only. EPA limited the recommended 
applications to heavy-duty/commercial-type uses because, at the time 
the CPG was issued, the Agency was not aware of any manufacturers that 
made floor tile with recovered materials for standard office flooring. 
However, at least two manufacturers were reportedly considering using 
recovered materials in standard office flooring and one manufacturer 
indicated that these products would be available in 1995, the year the 
CPG was issued. This information suggested to the Agency that floor 
tiles could be made with recovered materials for standard office 
flooring. Therefore, the Agency elected to broadly designate floor 
tiles and limit its initial recommendations to heavy-

[[Page 57751]]

 duty/commercial type uses. The Agency has no information that standard 
office floor tiles are currently commercially available containing 
recovered materials.
    In the original CPG and RMAN, EPA used the term ``heavy-duty, 
commercial-type uses'' because there were no published industry-wide 
definitions to describe the applications to which the recovered 
materials requirements of the CPG should be applied. In the supporting 
analysis for the RMAN, EPA explained what it meant by ``heavy-duty, 
commercial-type applications.'' There, the Agency described, in general 
terms, a number of commercial and industrial settings where the use of 
such tiles with recovered materials content would be appropriate. These 
would include entranceways in airports and stores, furniture showrooms, 
skating rinks and fitness centers. EPA has learned that this discussion 
may have caused some confusion. Some procuring agencies may have 
confused EPA's description of the areas where, given special 
circumstances, such tiles might be appropriate, with an EPA 
recommendation that such tile should always be used in such settings. 
This was not the Agency's intention. Therefore, the Agency is today 
clarifying its recommendation that the use of these tiles would be 
appropriate for specialty purpose uses at such locations (e.g., raised, 
open-web tiles for drainage on school kitchen flooring). Such specialty 
purpose uses involve limited flooring areas where grease, tar, snow, 
ice, wetness or similar substances or conditions are likely to be 
present. Thus, EPA is not, at this time, recommending floor tile made 
with recovered materials for standard office or more general purpose 
uses.

B. Structural Fiberboard and Laminated Paperboard

    In the CPG, EPA designated structural fiberboard and laminated 
paperboard products for applications other than building insulation (40 
CFR 247.12(b)). EPA further included acoustical and non-acoustical 
ceiling tiles and lay-in panels in its list of applications to which 
the designation applies. Since the CPG was issued, one manufacturer of 
mineral fiber ceiling products has expressed concern over the scope of 
the structural fiberboard and laminated paperboard designations, 
particularly as they apply to acoustical and non-acoustical ceiling 
tiles and lay-in panels. EPA wants to clarify that the specific 
applications included in the structural fiberboard and laminated 
paperboard designation, i.e., building board, sheathing, shingle 
backer, sound deadening board, roof insulating board, insulating 
wallboard, acoustical and non-acoustical ceiling tile, acoustical and 
non-acoustical lay-in panels, floor underlayments, and roof overlay 
(coverboard), apply to the purchase of cellulosic fiber structural 
fiberboard and laminated paperboard products only. The listed 
applications, and therefore the designation, do not apply to products 
made from other similar or competing materials. In other words, if a 
procuring agency is purchasing a cellulosic fiberboard acoustical 
ceiling tile, then the agency should purchase the ceiling tile made 
with recovered materials. However, if the agency prefers to purchase a 
ceiling tile made with mineral fiber rather than fiberboard, it is free 
to do so. In the latter instance, there is no requirement to purchase a 
cellulosic fiberboard ceiling tile.

V. Definitions

    Today, in Sec. 247.3, EPA is proposing to add definitions for the 
following new item-specific terms: channelizers, delineators, flexible 
delineators, garden hoses, ink jet cartridges, latex paint, lawn 
edging, pallets, parking stops, printer ribbons, restroom dividers, 
shower dividers, snow fencing, and soaker hoses. These definitions are 
based on industry definitions, including ASTM or other standard 
specifications, or represent descriptions of the scope of items being 
designated. EPA specifically requests comment on each of these 
definitions.
    For several items being proposed for designation, EPA recommends in 
the RMAN, two-part content levels--a postconsumer recovered content 
component and a total recovered materials component. In these 
instances, EPA found that both types of materials were being used to 
manufacture a product. Recommending only postconsumer content levels 
would fail to acknowledge the contribution to solid waste management 
made by manufacturers using other manufacturers' byproducts as 
feedstock.
    Because the item designations in today's action use the terms 
``postconsumer materials'' and ``recovered materials,'' the definitions 
for these terms are repeated in this action as a reference for the 
convenience of the reader. These definitions were part of the May 1, 
1995 CPG and can be found at 40 CFR 247.3. The Agency is not proposing 
to change these definitions and will not consider any comments 
submitted on these terms.

    Postconsumer materials means a material or finished product that 
has served its intended end use and has been diverted or recovered 
from waste destined for disposal, having completed its life as a 
consumer item. Postconsumer material is part of the broader category 
of recovered materials.
    Recovered materials means waste materials and byproducts which 
have been recovered or diverted from solid waste, but such term does 
not include those materials and byproducts generated from, and 
commonly reused within an original manufacturing process.

VI. Construction Products

A. Shower and Restroom Dividers

    Based on the information obtained by EPA, shower and restroom 
dividers containing recovered materials are currently made using steel 
or various recovered plastics. Today, in Sec. 247.12(f), EPA proposes 
to designate shower and restroom dividers containing recovered plastic 
or steel as items whose procurement will carry out the objectives of 
section 6002 of RCRA. A final designation would not preclude a 
procuring agency from purchasing shower and restroom dividers 
manufactured from another material, such as wood. It simply requires 
that a procuring agency, when purchasing shower and restroom dividers 
made from plastic or steel, purchase these items made with recovered 
materials when these items meet applicable specifications and 
performance requirements.
1. Background
    Shower and restroom dividers are used to create privacy by 
separating individual shower, toilet, and urinal compartments in 
commercial and institutional facilities. They are made from various 
plastics, steel, or wood.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, plastic and steel represent a significant component of the 
solid waste stream. Shower and restroom dividers are available made 
from steel or postconsumer and other recovered plastics, including high 
density polyethylene (HDPE), low density polyethylene (LDPE), and 
polypropylene (PP). EPA is not aware of shower and restroom dividers 
made from recovered wood and requests information in this regard.
    EPA identified nine manufacturers of plastic dividers containing 
recovered materials and 21 manufacturers of dividers containing 
recovered steel. EPA did not identify any national or Federal 
specifications that preclude the use of recovered materials in shower 
or restroom dividers. Federal agencies, including the U.S. Army Corps 
of Engineers, and State and local

[[Page 57752]]

governments procure shower and restroom dividers. For a more detailed 
discussion of the criteria used to propose this item for designation, 
see the ``Comprehensive Procurement Guideline (CPG) II--Supporting 
Analyses'' document located in the public docket for this action.

B. Latex Paint

    Based on the information obtained by EPA, latex paint is available 
containing recovered and postconsumer latex paint. Today, in 
Sec. 247.12(g), EPA proposes to designate latex paint containing 
recovered materials as an item whose procurement will carry out the 
objectives of section 6002 of RCRA.
1. Background
    Latex paint is water-based paint widely used for interior and 
exterior architectural applications for residential and commercial 
buildings, as well as on vehicles, equipment, and for other special 
purposes. However, the Agency has limited information on paint used for 
non-architectural applications and requests further information. Latex 
paint is available containing postconsumer recovered paint from 
household hazardous waste (HHW) programs and paint-only or curbside 
collection programs. Latex paint can also be made from non-postconsumer 
recovered paint, which includes paint that is mis-tinted, out-of-date, 
or otherwise not sold to a consumer, which is returned by a 
distributor, retailer, or contractor to the manufacturer or to a paint 
recycler.
    ``Paint recyclers'' use postconsumer and other recovered latex 
paint to produce two different end products. Paint reprocessing 
produces a latex paint with consistent characteristics that are 
comparable to equivalent grade virgin latex paint. This paint is 
suitable for exterior and interior architectural applications. Paint 
consolidation, which involves blending postconsumer paint, results in a 
100 percent postconsumer content mixture with characteristics that vary 
significantly from batch to batch. Consolidated paint, typically given 
away by the recycler, is generally suitable only for limited exterior 
applications such as covering graffiti.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, latex paint represents a significant component of the solid 
waste stream. Latex paint is available made from postconsumer and other 
recovered latex paint.
    EPA identified seven manufacturers of reprocessed latex paint and 
consolidated latex paint. EPA did not identify any national or Federal 
specifications that preclude the use of recovered materials in latex 
paint, although there are specifications that establish limits for 
metals (including mercury and lead), cyanide, volatile and semi-
volatile compounds, and polychlorinated biphenyls. According to the 
General Services Administration (GSA), over 69 military bases and other 
Federal purchasers as well as 28 private or local government agencies 
have purchased reprocessed latex paint through GSA. The Department of 
Navy's Chief of Naval Operations office issued a message encouraging 
the use of ``recycled'' latex paint for facilities maintenance. The 
U.S. Coast Guard also reports favorable results with ``recycled'' latex 
paint. For a more detailed discussion of the reasons for proposing the 
item for designation, see the ``Comprehensive Procurement Guideline 
(CPG) II--Supporting Analyses'' document located in the public docket 
for this action.

VII. Transportation Products

A. Parking Stops

    Based on the information obtained by EPA, parking stops are 
available containing postconsumer and other recovered plastic and/or 
rubber. Some manufacturers use wood chips, sawdust, or fiberglass in 
combination with plastic or rubber to make composite parking stops. In 
addition, parking stops may be made from cement and concrete containing 
coal fly ash or ground granulated blast furnace (GGBF) slag. These 
stops are typically made from concrete which is left over from 
construction-related projects. Today, in Sec. 247.13(b), EPA proposes 
to designate parking stops made from concrete or containing recovered 
plastic and/or rubber as items whose procurement will carry out the 
objectives of section 6002 of RCRA. A final designation would not 
preclude a procuring agency from purchasing parking stops manufactured 
from another material. It simply requires that a procuring agency, when 
purchasing parking stops made from plastic, rubber, or concrete, 
purchase these items made with recovered materials when these items 
meet applicable specifications and performance requirements.
1. Background
    Parking stops are barriers used to mark parking spaces and to keep 
parked vehicles from rolling beyond a designated parking area. Parking 
stops may be made from concrete, wood, rubber, or plastic.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, rubber, plastic, coal fly ash, and GGBF slag all represent 
significant components of the solid waste stream. Parking stops are 
available made with postconsumer and other recovered plastics and 
rubber. Postconsumer sources include milk jugs, water bottles, and 
other containers, mixed plastic, and rubber (from used tires). Although 
EPA did not obtain specific information on parking stops made from 
cement and concrete containing coal fly ash or GGBF slag, the agency 
believes that, since cement and concrete can be made with GGBF, it is 
technically feasible to include these recovered materials in cement and 
concrete parking stops. EPA is not aware of parking stops made with 
recovered wood and requests information on whether they are 
commercially available.
    EPA identified 57 manufacturers and vendors of parking stops 
containing postconsumer and other recovered materials. EPA is unaware 
of any national or Federal specifications or standards that preclude 
the use of recovered materials in parking stops. The U.S. National Park 
Service, various military bases, and State departments of 
transportation and park authorities purchase parking stops. For a more 
detailed discussion of the criteria used to propose this item for 
designation, see the ``Comprehensive Procurement Guideline (CPG) II--
Supporting Analyses'' document located in the public docket for this 
action.

B. Temporary Traffic Control Devices

    EPA designated traffic cones and traffic barricades in the original 
CPG (60 FR 21383, May 1, 1995). Based on the information obtained by 
EPA, additional temporary traffic control devices are available 
containing postconsumer and other recovered plastic, rubber, and steel. 
Today, in Sec. 247.13(c) through (e), EPA is proposing to designate 
channelizers, delineators, and flexible delineators containing 
recovered plastic, rubber, or steel as items whose procurement will 
carry out the objectives of section 6002 of RCRA. A final designation 
of these items would not preclude a procuring agency from purchasing 
these temporary traffic control devices manufactured from another 
material. It simply requires that a procuring agency, when purchasing 
these devices made from plastic, rubber, or steel, purchase these items 
made with recovered materials when these items meet applicable 
specifications and performance requirements.

[[Page 57753]]

1. Background
    Temporary traffic control devices are used to divert, channel, or 
restrict traffic flow. They include channelizers, delineators, and 
flexible delineators. Channelizers are barrels or drums that can be 
positioned to direct traffic through detours. Delineators are highly 
visible pavement markers that can be positioned to direct traffic or 
define boundaries. Flexible delineators bend if struck by a vehicle to 
prevent damage to the vehicle or the delineator.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, plastic, rubber and steel are significant components of the 
solid waste stream. Channelizers, delineators, and flexible delineators 
are available made with recovered plastic, rubber and steel.
    EPA identified three manufacturers of channelizers, eight 
manufacturers of delineators and three manufacturers of flexible 
delineators containing postconsumer and other recovered materials. The 
Federal Highway Administration (FHWA) publishes the ``Manual on Uniform 
Traffic Control Devices,'' which contains specifications used by most 
States for the size, shape, mounting, and placement of traffic control 
devices. The FHWA specifications do not preclude the use of recovered 
materials in these devices. The States of North Carolina and Florida 
have specifications that require the use of recovered materials in 
their flexible delineators. The Veterans Administration and Federal 
Emergency Management Agency purchase temporary traffic control devices, 
and EPA believes that virtually every State department of 
transportation also purchases the items. For a more detailed discussion 
of the criteria used to propose these items for designation, see the 
``Comprehensive Procurement Guideline (CPG) II--Supporting Analyses'' 
document located in the public docket for this action.

VIII. Park and Recreation Products

A. Snow Fencing

    Based on the information obtained by EPA, snow fencing is available 
containing recovered plastic. Today, in Sec. 247.14(b), EPA proposes to 
designate snow fencing containing recovered plastic as an item whose 
procurement will carry out the objectives of section 6002 of RCRA. A 
final designation of this items would not preclude a procuring agency 
from purchasing snow fencing manufactured from another material, such 
as wood. It simply requires that a procuring agency, when purchasing 
snow fencing made from plastic, purchase this item made with recovered 
materials when this item meets applicable specifications and 
performance requirements.
1. Background
    Snow fencing is constructed from plastic in an open-weave pattern 
or from wooden slats held together with wire strands. It is used to 
control drifting snow, to delineate construction areas, and to protect 
sand dunes.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, plastic represents a significant component of the solid waste 
stream. Snow fencing is available made with postconsumer and other 
recovered HDPE plastic from milk jugs, water bottles, and other 
containers. EPA is not aware of snow fencing made from recovered wood 
and requests information on whether it is now commercially available.
    EPA identified three manufacturers of snow fencing containing 
recovered and postconsumer HDPE. According to information obtained by 
EPA, there are no national or Federal specifications that preclude the 
use of recovered materials in the manufacture of snow fencing. Federal 
agencies, such as the National Park Service and the Army Corps of 
Engineers, and State agencies purchase snow fencing. According to at 
least two State agencies, recovered-content snow fencing met the 
performance requirements for the applications in which it was used. For 
a more detailed discussion of the criteria used to propose this item 
for designation, see the ``Comprehensive Procurement Guideline (CPG) 
II--Supporting Analyses'' document located in the public docket for 
this action.

IX. Landscaping Products

A. Garden and Soaker Hoses

    Based on the information obtained by EPA, garden and soaker hoses 
are available containing recovered plastic or rubber. Today, in 
Sec. 247.15(c), EPA proposes to designate garden and soaker hoses 
containing recovered plastic or rubber as items whose procurement will 
carry out the objectives of section 6002 of RCRA. A final designation 
of these items would not preclude a procuring agency from purchasing 
garden and soaker hoses manufactured from another material. It simply 
requires that a procuring agency, when purchasing garden and soaker 
hoses made from plastic or rubber, purchase this item made with 
recovered materials when these items meet applicable specifications and 
performance requirements.
1. Background
    A garden hose is flexible tubing used to conduct water to a 
specific location. It is usually made from PVC plastic or rubber. A 
soaker hose is perforated flexible tubing used to deliver gentle 
irrigation to plants and is typically made of rubber.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, rubber and plastic represent a significant component of the 
solid waste stream. Garden and soaker hoses are available made with 
postconsumer and other recovered PVC plastic or rubber.
    EPA identified five manufacturers of postconsumer- and other 
recovered- content landscaping hoses; two that only produce garden 
hoses, one that only produces soaker hoses, and two that produce both. 
All five companies use PVC plastic and/or rubber to manufacture their 
products. There is an American Society for Testing and Materials (ASTM) 
specification for garden hose that addresses physical and performance 
characteristics, but does not preclude the use of recovered materials. 
Green Seal, an independent standards organization, specifies the use of 
50 percent postconsumer rubber in garden hose and 65 percent 
postconsumer rubber in soaker hose. The U.S. Department of Defense, 
National Park Service, and State agencies purchase garden and soaker 
hoses. For a more detailed discussion of the criteria used to propose 
this item for designation, see the ``Comprehensive Procurement 
Guideline (CPG) II--Supporting Analyses'' document located in the 
public docket for this action.

B. Lawn and Garden Edging

    Based on the information obtained by EPA, lawn and garden edging is 
available containing recovered plastics or rubber. Today, in 
Sec. 247.15(d), EPA proposes to designate lawn and garden edging 
containing recovered plastic or rubber as items whose procurement will 
carry out the objectives of section 6002 of RCRA. A final designation 
of these items would not preclude a procuring agency from purchasing 
lawn and garden edging manufactured from another material, such as 
wood. It simply requires that a procuring agency, when purchasing lawn 
and garden edging made from plastic or rubber, purchase these items 
made with

[[Page 57754]]

recovered materials when these items meet applicable specifications and 
performance requirements.
1. Background
    Lawn and garden edging is used as a barrier between lawns and 
landscaped areas or garden beds to prevent grass, roots, or weeds from 
spreading to the landscaped areas. It is manufactured from postconsumer 
and other recovered HDPE, mixed plastics, and/or rubber.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, rubber and plastics represent a significant component of the 
solid waste stream. Lawn and garden edging is available made with 
postconsumer and other recovered plastics. Postconsumer sources of 
materials used in lawn and garden edging include milk jugs, water 
bottles, and other containers, various mixed plastic resins, and rubber 
(from tires). Edging may also be manufactured using wood; however, EPA 
is not aware of any lawn and garden edging made from recovered wood and 
requests information on whether these items are commercially available.
    EPA identified seven manufacturers of lawn and garden edging 
containing postconsumer and other recovered materials. According to 
information obtained by EPA, there are no national or Federal 
specifications that preclude the use of recovered materials in the 
manufacture of lawn and garden edging. Although EPA was unable to 
obtain any information on the purchase of lawn and garden edging by 
government agencies, EPA is aware that lawn and garden edging is 
procured by such agencies as the National Park Service and State and 
local parks and recreation offices. For a more detailed discussion of 
the criteria used to propose this item for designation, see the 
``Comprehensive Procurement Guideline (CPG) II--Supporting Analyses'' 
document located in the public docket for this action.

X. Non-Paper Office Products

A. Printer Ribbons

    Based on the information obtained by EPA, printer ribbons used in 
impact printers can be remanufactured by reinking the ribbon or 
reloading the printer ribbon cartridge with new ribbon. Today, in 
Sec. 247.16(f), EPA proposes to designate printer ribbons as an item 
whose procurement will carry out the objectives of section 6002 of 
RCRA.
1. Background
    Printer ribbons are used in dot matrix and other types of impact 
printers used in homes, offices, and retail stores across the United 
States. The ribbons are housed in an outer plastic casing (cartridge), 
which contains the ribbon and internal gears.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, plastic represents a significant component of the solid waste 
stream. The plastic contained in printer ribbon cartridges can be 
diverted from the waste stream if the printer ribbon is reinked or the 
cartridge is reloaded with new ribbon.
    EPA identified 18 companies that service printer ribbons for reuse. 
Seven of the companies reink ribbons and five reload the cartridges 
with new ribbon; EPA was unable to obtain information from the 
remaining six companies. The U.S. Postal Service Processing and 
Distribution Center in Portland, Maine, EPA Region 6, and the States of 
Alabama and Florida have used remanufactured printer ribbons 
successfully. For a more detailed discussion of the criteria used to 
propose this item for designation, see the ``Comprehensive Procurement 
Guideline (CPG) II--Supporting Analyses'' document located in the 
public docket for this action.

B. Ink Jet Cartridges

    Based on the information obtained by EPA, ink jet ribbon cartridges 
for ink jet printers and facsimile machines can be remanufactured by 
refilling the cartridge with ink. Today, in Sec. 247.16(g), EPA 
proposes to designate ink jet cartridges as an item whose procurement 
will carry out the objectives of section 6002 of RCRA.
1. Background
    Ink jet cartridges are plastic cases containing ink, a pump, 
filter, nozzle, and internal circuitry. They are used in ink jet 
printers and in some types of facsimile machines and plotters.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, plastic represents a significant component of the solid waste 
stream. The plastic contained in ink jet cartridges can be diverted 
from the waste stream if the cartridge is refilled with new ink.
    EPA identified 24 companies that refill ink jet cartridges for 
customers nationwide. In addition to remanufacturers, do-it-yourself 
kits are available for customers to refill their own ink jet 
cartridges. EPA Region 6, the U.S. Army Corps of Engineers, the City of 
Tucson, and the States of Colorado and Florida have used refilled ink 
jet cartridges. For a more detailed discussion of the criteria used to 
propose this item for designation, see the ``Comprehensive Procurement 
Guideline (CPG) II--Supporting Analyses'' document located in the 
public docket for this action.

C. Plastic Envelopes

    Based on the information obtained by EPA, plastic envelopes are 
available containing recovered plastics. Today, in Sec. 247.16(h), EPA 
proposes to designate plastic envelopes containing recovered materials 
as an item whose procurement will carry out the objectives of section 
6002 of RCRA. A final designation of this item would not preclude a 
procuring agency from purchasing envelopes manufactured from paper 
products, but would simply require that a procuring agency, when 
purchasing plastic envelopes, purchase them made with recovered 
materials when these items meet applicable specifications and 
performance requirements. When purchasing envelopes made from paper, 
procuring agencies should consult the Paper Products RMAN which was 
issued in the Federal Register on May 29, 1996 at 61 FR 26985.
1. Background
    Plastic envelopes are manufactured from a trademarked spunbonded 
olefin or from tri-extruded polyolefins or polyethylenes. They are used 
most commonly by the express mail, insurance, bank, legal, medical, and 
international mail industries in heavy-duty, security-related, and 
other specialized mailing applications.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, plastic represents a significant component of the solid waste 
stream. Plastic envelopes are available made with postconsumer and 
other recovered plastics. Postconsumer sources include milk jugs, water 
bottles, and other containers.
    EPA identified three manufacturers of plastic envelopes containing 
postconsumer and other recovered LDPE or HDPE. According to information 
obtained by EPA, there are no national or Federal specifications that 
preclude the use of recovered materials in the manufacture of plastic 
envelopes. Plastic envelopes are purchased or used by most government 
agencies, although the U.S. Navy

[[Page 57755]]

requests that they not be used to transport materials to ships because 
they complicate onboard disposal practices. For a more detailed 
discussion of the criteria used to propose this item for designation, 
see the ``Comprehensive Procurement Guideline (CPG) II--Supporting 
Analyses'' document located in the public docket for this action.

XI. Miscellaneous Products

A. Pallets

    Based on the information obtained by EPA, cargo and freight pallets 
are available containing recovered wood, plastic, or paperboard. Today, 
in Sec. 247.17(a), EPA proposes to designate pallets containing 
recovered wood, plastic, or paperboard as an item whose procurement 
will carry out the objectives of section 6002 of RCRA. A final 
designation of this item would not preclude a procuring agency from 
purchasing pallets manufactured from another material. It simply 
requires that a procuring agency, when purchasing pallets made from 
plastic, wood, or paperboard, purchase these items made with recovered 
materials when these items meet applicable specifications and 
performance requirements.
1. Background
    Pallets are portable platforms for storing or moving cargo or 
freight. They can be manufactured from wood, plastic, or corrugated 
paperboard.
2. Rationale for Designation
    As discussed in Appendix V of the CPG II ``Supporting Analysis'' 
document, wood, plastic, and corrugated paperboard represent 
significant components of the solid waste stream. Pallets are available 
manufactured from postconsumer and other recovered wood, plastic or old 
corrugated containers.
    EPA obtained information from eight manufacturers of recovered and 
postconsumer wood pallets, 19 manufacturers of recovered and 
postconsumer plastic pallets, and two manufacturers of recovered and 
postconsumer corrugated pallets. EPA identified one specification for 
pallets, developed by the Grocery Manufacturers of America; it does not 
preclude the use of recovered materials in pallets. Army Logistics is 
developing a performance-based pallet specification that may limit the 
use of remanufactured pallets to specific applications. The Defense 
Logistics Agency procures millions of pallets of varying sizes each 
year. For a more detailed discussion of the criteria used to propose 
this item for designation, see the ``Comprehensive Procurement 
Guideline (CPG) II--Supporting Analyses'' document located in the 
public docket for this action.

XII. Designated Item Availability

    EPA has identified a number of manufacturers and vendors of the 
items proposed for designation in today's rule. Once the item 
designations in today's proposal become final, these lists will be 
placed in the RCRA docket for this action and updated periodically as 
new sources are identified and product information changes. Procuring 
agencies should contact the manufacturers/vendors directly to discuss 
their specific needs and to obtain detailed information on the 
availability and price of recycled products meeting those needs.
    Other information is available from the General Services 
Administration (GSA), the Defense Logistics Agency (DLA), State and 
local recycling offices, private corporations, and trade associations. 
Refer to Section X of the document, ``Comprehensive Procurement 
Guideline (CPG) II--Supporting Analyses,'' located in the RCRA public 
docket, for more detailed information on these sources of information.

XIII. Economic Impact Analysis

A. Requirements of Executive Order 12866

    Executive Order 12866 requires agencies to determine whether a 
regulatory action is ``significant.'' The Order defines a 
``significant'' regulatory action as one that is likely to result in a 
rule that may: (1) Have an annual effect on the economy of $100 million 
or more or adversely affect, in a material way, the economy, a sector 
of the economy, productivity, competition, jobs, the environment, 
public health or safety, or State, local, or tribal governments or 
communities; (2) create serious inconsistency or otherwise interfere 
with an action taken or planned by another agency; (3) materially alter 
the budgetary impact of entitlements, grants, user fees, or loan 
programs or the rights and obligations of recipients; or (4) raise 
novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in the Executive 
Order.
    EPA estimates that the costs associated with this proposed rule is 
well below the $100 million threshold. To enable the Agency to evaluate 
the potential impact of today's action, EPA has prepared an Economic 
Impact Analysis (EIA), as discussed below. For more information on the 
estimated economic impact of this proposed rule, see the ``Economic 
Impact Analysis for the Comprehensive Procurement Guideline (CPG) II,'' 
located in the RCRA public docket for the proposed rule.
1. Summary of Costs
    As shown in Table 2 below, EPA estimates that the annualized costs 
of today's rule will range from $4.7 to $8.7 million, with costs being 
spread across all procuring agencies (i.e., Federal agencies, State and 
local agencies that use appropriated Federal funds to procure 
designated items, and contractors to all three). These costs are 
annualized over a 10-year period at a three percent discount rate. 
Because there is considerable uncertainty regarding several of the 
parameters that drive the costs, EPA conducted sensitivity analyses to 
identify the range of potential costs of today's rule. Thus, high-end 
and low-end estimates are presented along with the best estimate. The 
primary parameter affecting the range of cost estimates is the number 
of products each procuring agency is assumed to procure each year. 
Details of the costs associated with this proposed rule are provided in 
the Economic Impact Analysis for this rule, located in the RCRA public 
docket.

Table 2.--Summary of Annualized Costs of CPG Amendments to All Procuring
                                Agencies                                
------------------------------------------------------------------------
                                                                 Best   
                                                               estimate,
                                                   Total         total  
              Procuring agency                  annualized    annualized
                                               costs ($1000)     costs  
                                                                ($1000) 
------------------------------------------------------------------------
Federal Agencies............................  $5,400-$2,900       $5,400
States......................................  970-530                970
Local Governments...........................  2,300-1,260          1,700
Contractors.................................    79-26                 54
                                             ---------------------------
      Total.................................  8,700-4,700          8,100
------------------------------------------------------------------------

    As a result of today's proposed rule, procuring agencies will be 
required to perform certain activities pursuant to RCRA section 6002. 
The costs shown in Table 2, represent the estimated annualized costs 
associated with these activities, which include: rule review and 
implementation; estimation, certification, and verification of 
designated item procurement; and for Federal agencies, reporting and 
recordkeeping. Table 2 also includes estimates for Federal agency's 
that will incur costs for specification revisions

[[Page 57756]]

and affirmative procurement program modification. More details of the 
costs associated with today's rule are included in the aforementioned 
Economic Impact Analysis.
    With regard to possible impacts to business, including small 
businesses, there may be both positive and negative impacts to 
individual businesses. EPA anticipates that this proposed rule will 
provide additional opportunities for recycling businesses to begin 
supplying recovered materials to manufacturers and products made from 
recovered materials to procuring agencies. In addition, other 
businesses, including small businesses, that do not directly contract 
with procuring agencies may be affected positively by the increased 
demand for recovered materials. These include businesses involved in 
materials recovery programs and materials recycling. Municipalities 
that run recycling programs are also expected to benefit from increased 
demand for certain recovered materials.
    EPA is unable to determine the number of businesses, including 
small businesses, that may be adversely impacted by this proposed rule. 
It is possible that if a business that currently supplies products to a 
procuring agency uses virgin materials only, the amendments proposed to 
the CPG may reduce its ability to compete for future contracts. 
However, the proposed amendments to the CPG will not affect existing 
purchase orders, nor will it preclude businesses from adapting their 
product lines to meet new specifications or solicitation requirements 
for products containing recovered materials. Thus, many businesses, 
including small businesses, that market to procuring agencies have the 
option to adapt their product lines to meet specifications.
2. Product Cost
    Another potential cost of today's action is the possible price 
differential between an item made with recovered materials and an 
equivalent item manufactured using virgin materials. As discussed in 
Appendices I and IV of the ``Supporting Analyses,'' relative prices of 
recycled content products compared to prices of comparable virgin 
products vary. In many cases, recycled content products are less 
expensive than their virgin counterparts. In other cases, virgin 
products have lower prices than recycled content products. Many factors 
can affect the price of various products. For example, temporary 
fluctuations in the overall economy can create oversupplies of virgin 
products, leading to a decrease in prices for these items. Under RCRA 
section 6002(c), procuring agencies are not required to purchase a 
product containing recovered materials if it is only available at an 
unreasonable price. However, the decision to pay more or less for such 
a product is left to the procuring agency.
3. Summary of Benefits
    EPA anticipates that this rule will result in increased 
opportunities for recycling and waste prevention. Waste prevention can 
reduce the nation's reliance on natural resources by reducing the 
amount of materials used in making products. Less raw materials use 
results in a commensurate reduction in energy use and a reduction in 
the generation and release of air and water pollutants associated with 
manufacturing. Additionally, waste prevention leads to a reduction in 
the environmental impacts of mining, harvesting, and other extraction 
processes.
    Recycling can effect the more efficient use of natural resources. 
For many products, the use of recovered materials in manufacturing can 
result in significantly lower energy and material input costs than when 
virgin raw materials are used; reduce the generation and release of air 
and water pollutants often associated with manufacturing; and reduce 
the environmental impacts of mining, harvesting, and other extraction 
of natural resources. In addition to conserving non-renewable 
resources, recycling can also divert large amounts of materials from 
landfills, conserving increasingly valuable space for the management of 
materials that truly require disposal. This reduces the need to expand 
existing or site new disposal facilities, allowing local government 
officials to devote more attention to health, education, and safety 
issues.
    By purchasing products made from recovered materials, government 
agencies can increase opportunities for realizing these benefits. On a 
national and regional level, the proposed rule can result in expanding 
and strengthening markets for materials diverted or recovered through 
public and private collection programs. Also, since many State and 
local governments, as well as private companies, reference EPA 
guidelines when purchasing designated items, this rule can result in 
increased purchase of recycled products, locally, regionally, and 
nationally and provide opportunities for businesses engaged in 
recycling activities.

B. Unfunded Mandates Reform Act of 1995 and Consultation With State, 
Local, and Tribal Governments

    Under section 202 of the Unfunded Mandates Reform Act of 1995 (the 
Act), P.L. 104-4, which was signed into law on March 22, 1995, EPA 
generally must prepare a written statement for rules with Federal 
mandates that may result in estimated costs to State, local, or tribal 
governments in the aggregate, or to the private sector, of $100 million 
or more in any one year. When such a statement is required for EPA 
rules, under section 205 of the Act EPA must identify and consider 
alternatives, including the least costly, most cost-effective or least 
burdensome alternative that achieves the objectives of the rule. EPA 
must select that alternative, unless the Administrator explains in the 
final rule why it was not selected or it is inconsistent with law. 
Before EPA establishes regulatory requirements that may significantly 
or uniquely affect small governments, including tribal governments, it 
must develop under section 203 of the Act a small government agency 
plan. The plan must provide for notifying potentially affected small 
governments, giving them meaningful and timely input in the development 
of EPA regulatory proposals with significant Federal intergovernmental 
mandates, and informing, educating, and advising them on compliance 
with the regulatory requirements.
    EPA has determined that this proposed rule does not include a 
Federal mandate that may result in estimated annualized costs of $100 
million or more to either State or local governments in the aggregate, 
or to the private sector. To the extent enforceable duties arise as a 
result of this proposed rule on State and local governments, they are 
exempt from inclusion as Federal intergovernmental mandates if such 
duties are conditions of Federal assistance. Even if they are not 
conditions of Federal assistance, such enforceable duties do not result 
in a significant regulatory action being imposed upon State and local 
governments since the estimated aggregate cost of compliance for them 
are not expected to exceed, at the maximum, $3.3 million annually. The 
cost of enforceable duties which may arise as a result of today's 
proposed rule on the private sector are estimated not to exceed $79,000 
annually. Thus, the proposed rule is not subject to the written 
statement requirement in sections 202 and 205 of the Act.
    The newly designated items included in the CPG may give rise to 
additional

[[Page 57757]]

obligations under section 6002(i) (requiring procuring agencies to 
adopt affirmative procurement program and to amend their 
specifications) for state and local governments. As noted above, the 
expense associated with any additional costs is not expected to exceed, 
at the maximum, $3.3 million annually. In compliance with E.O. 12875, 
which requires the involvement of State and local governments in the 
development of certain Federal regulatory actions, EPA conducted a wide 
outreach effort and actively sought the input of representatives of 
state and local governments in the process of developing its 
guidelines.
    When EPA proposes to designate items in the CPG, information about 
the proposal is distributed to governmental organizations so that they 
can inform their members about the proposals and solicit their 
comments. These organizations include the U.S. Conference of Mayors, 
the National Association of Counties, the National Association of Towns 
and Townships, the National Association of State Purchasing Officials, 
and the American Association of State Highway and Transportation 
Officials. EPA also provides information to potentially affected 
entities through relevant recycling, solid waste, environmental, and 
industry publications. In addition, EPA's regional offices sponsor and 
participate in regional and state meetings at which information about 
proposed and final designations of items in the CPG is presented. 
Finally, EPA has sponsored buy-recycled education and outreach 
activities by organizations such as the U.S. Conference of Mayors, the 
Northeast Recycling Council, the Environmental Defense Fund, Keep 
America Beautiful, and the California Local Government Commission, 
whose target audience includes small governmental entities.
    The requirements do not significantly affect small governments 
because they are subject to the same requirements as other entities 
whose duties result from today's rule. As discussed above, the expense 
associated with any additional costs to State and local governments, is 
not expected to exceed, at the maximum, $3.3 million annually. The 
requirements do not uniquely affect small governments because they have 
the same ability to purchase these designated items as other entities 
whose duties result from today's rule. Additionally, use of designated 
items affects small governments in the same manner as other such 
entities. Thus, any applicable requirements of section 203 have been 
satisfied.

C. Impacted Entities

    RCRA section 6002 applies to procuring agencies that use at least a 
portion of Federal funds to procure over $10,000 worth of a designated 
product in a given year. EPA estimates that this rule would apply to 35 
Federal agencies, all 56 states and territories and 1,900 local 
governments. EPA calculated the number of local entities that would be 
impacted based on information regarding the amount of Federal funds 
that are dispersed to specific counties. In addition, EPA assumed that 
between 100 and 1,000 contractors may be affected. A description of 
this information is provided in the Economic Impact Analysis for 
today's rule.

D. Regulatory Flexibility Act and Small Business Regulatory Enforcement 
Fairness Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.), as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), provides that, whenever an agency proposes a rule under 
5 U.S.C. 553, the agency must prepare, and make available for public 
comment, a regulatory flexibility analysis that describes the impact of 
a proposed for final rule on small entities (i.e., small businesses, 
small organizations, and small governmental jurisdictions). The purpose 
of the RFA is to establish procedures that ensure that Federal agencies 
solicit and consider alternatives to rules so as to minimize their 
burdensome impact on small entities. The Act is designed to encourage 
agencies to tailor their rules to the size and nature of those to be 
regulated whenever this is consistent with the underlying statute 
authorizing the rule.
    However, the RFA does not require a regulatory flexibility analysis 
if the head of an agency certifies the rule will not have significant 
economic impact on a substantial number of small entities. 5 U.S.C. 604 
& 605. SBREFA amended the RFA to require Federal agencies to provide a 
statement of the factual basis for certifying that a rule will not have 
a significant economic impact on a substantial number of small 
entities. Pursuant to 5 U.S.C. 605(b), therefore, I certify that 
today's proposed rule will not, if promulgated, have a significant 
adverse impact on a substantial number of small entities.
    In the case of small entities which are small governmental 
jurisdictions, EPA has concluded that the proposal, if promulgated, 
will not have a significant economic impact. EPA concluded that no 
small government with a population of less than 50,000 is likely to 
incur costs associated with the designation of the 13 items because it 
is improbable that such jurisdictions will purchase more than $10,000 
of any designated item. Consequently, section 6002 would not apply to 
their purchases of designated items. Moreover, there is no evidence 
that complying with the requirements of section 6002 would impose 
significant additional costs on the small governmental entity to comply 
in the event that a small governmental jurisdiction purchased more than 
$10,000 worth of a designated item. This is the case because in many 
instances items with recovered materials content may be less expensive 
than items produced from virgin material.
    Furthermore, EPA similarly concluded that the economic impact on 
small businesses would not be significant. Any costs to small 
businesses that are ``procuring agencies'' (and subject to section 
6002) are likely to be insubstantial. To the extent there are increased 
costs, such costs are directly associated with compliance with a 
contract with a Federal agency for a designated procurement items and 
should be recovered in the contract price for the item. Further, any 
subsidiary costs associated with a small business's status as a 
``procuring agency'' would not be substantial. Even if a small business 
is required to purchase other items with recovered materials content, 
it is unclear that such items will necessarily be more expensive than 
items with virgin content.
    The basis for EPA's conclusions that the proposal, if adopted, will 
not have a significant impact on a substantial number of small entities 
is described in greater detail in the ``Economic Impact Analysis'' for 
the proposed rule which is located in the RCRA public docket.
1. Small Businesses
    The CPG applies to small businesses that are ``procuring 
agencies.'' The potential economic impact of the CPG on small 
businesses that are ``procuring agencies'' is minimal. RCRA section 
6002 applies to the contractor with a Federal agency (or a state or 
local agency that is a procuring agency under Section 6002) when the 
contractor is purchasing a designated item, is using Federal money to 
do so, and exceeds the $10,000 threshold. There is an exception for 
purchases that are ``incidental to'' the purposes of the contract, 
i.e., not the direct result of the funds disbursement. Therefore, for 
example, a courier service contractor is

[[Page 57758]]

not required to purchase re-refined oil and retread tires for its 
fleets because purchases of these items are incidental to the purpose 
of the contract. Therefore, as a practical matters, there would be very 
limited circumstances when a contractor's status as a ``procuring 
agency'' for section 6002 purposes would impose additional costs on the 
contractor. Thus, for example, if the State or Federal agency is 
contracting with a supplier to obtain a designated item, then the cost 
of the designated item (and any associated costs of meeting section 
6002 requirements) to the supplier presumably will be fully recovered 
in the contract price.
    Based on the above, EPA has determined that the effect of today's 
proposed rule on small entities would be minimal.
    While not a factor relevant to determining whether the rule will 
have a significant impact for RFA purposes, EPA believes that the 
effect of today's rule would be to provide positive opportunities to 
businesses engaged in recycling and the manufacture of recycled 
products. Purchase and use of recycled product by procuring agencies 
increases demand for these products and result in private sector 
development of new technologies, creating business and employment 
opportunities that enhance local, regional, and national economies. 
Technological innovation associated with the use of recovered materials 
can translate into economic growth and increased industry 
competitiveness worldwide, thereby, creating opportunities for small 
entities.

XIV. Supporting Information and Accessing Internet

    The index of supporting materials for the proposed rule is 
available in the RIC and on the Internet. The address and telephone 
number of the RIC are provided in ADDRESSES above. The following 
supporting materials are available on the Internet:
    ``Comprehensive Procurement Guideline (CPG) II--Supporting 
Analyses,'' U.S. EPA, Office of Solid Waste and Emergency Response, 
August 1, 1996.
    ``Recovered Materials Advisory Notice (RMAN) II--Supporting 
Analyses,'' U.S. EPA, Office of Solid Waste and Emergency Response, 
August 1, 1996.
    Copies of the following supporting materials are available for 
viewing at the RIC only:
    ``Recovered Materials Product Research for the Comprehensive 
Procurement Guideline II,'' prepared for U.S. EPA by Eastern Research 
Group, July 24, 1996.
    ``Research on Items for Designation in the Comprehensive 
Procurement Guideline,'' December 19, 1995.
    ``Summary of Information Submitted in Response to EPA's Request for 
Information on the Designation of Items for the CPG,'' prepared for 
U.S. EPA by Eastern Research Group, April 12, 1996.
    Follow these instructions to access the information electronically:

Gopher: gopher.epa.gov
WWW: http://www.epa.gov
Dial-up: 919 558-0335

    The materials can be accessed off the main EPA Gopher menu, in the 
directory EPA Offices and Regions/Office of Solid Waste and Emergency 
Response (OSWER)/Office of Solid Waste (RCRA)/[Non-Hazardous Waste--
RCRA Subtitle D/Procurement/CPG].

FTP: ftp.epa.gov
    Login: anonymous
    Password: your Internet address
    Files are located in /pub/gopher/OSWRCRA.

List of Subjects in 40 CFR Part 247

    Environmental protection, Channelizers, Delineators, Flexible 
delineators, Floor tile, Garden and soaker hose, Government 
procurement, Ink jet cartridge, Laminated paperboard, Landscaping 
industry, Latex paint, Lawn and garden edging, Office products, 
Pallets, Park and recreation products, Parking stops, Printer ribbon, 
Recycling, Shower and restroom dividers, Snow fencing, Structural 
fiberboard, Temporary traffic control devices.

    Dated: November 1, 1996.
Carol M. Browner,
Administrator.

    For the reasons set out in the preamble, EPA proposes to amend 40 
CFR Part 247 as follows:

PART 247--COMPREHENSIVE PROCUREMENT GUIDELINE FOR PRODUCTS 
CONTAINING RECOVERED MATERIALS

    1. The authority citation for Part 247 continues to read as 
follows:

    Authority: 42 U.S.C. 6912(a) and 6962; E.O. 12873, 58 FR 54911.

    2. In Sec. 247.2, paragraph (d) is added to read as follows:


Sec. 247.2  Applicability.

* * * * *
    (d) RCRA section 6002(c)(1) requires procuring agencies to procure 
designated items composed of the highest percentage of recovered 
materials practicable, consistent with maintaining a satisfactory level 
of competition, considering such guidelines. Procuring agencies may 
decide not to procure such items if they are not reasonably available 
in a reasonable period of time; fail to meet reasonable performance 
standards; or are only available at an unreasonable price.
    3. In Sec. 247.3, the following definitions are added 
alphabetically:
* * * * *
    Channelizers means highly visible barrels or drums that can be 
positioned to direct traffic through detours;
* * * * *
    Delineator means a highly visible pavement marker that can be 
positioned to direct traffic or define boundaries;
* * * * * *
    Flexible delineator means a highly visible marker that can be 
positioned to direct traffic or define boundaries and that will flex if 
struck by a vehicle to prevent damage to the vehicle or the delineator;
* * * * *
    Garden hose means a flexible tubing that conducts water to a 
specific location;
* * * * *
    Ink jet cartridge means a casing containing ink used in ink jet 
printers and some types of facsimile machines and plotters;
* * * * *
    Latex paint means a water-based decorative or protective covering 
having a latex binder;
* * * * *
    Lawn edging means a barrier used between lawns and landscaped areas 
or garden beds to prevent grass roots or weeds from spreading to the 
landscaped areas;
* * * * *
    Pallet means a portable platform for storing or moving cargo or 
freight;
* * * * *
    Parking stop means a barrier used to mark parking spaces and keep 
parked vehicles from rolling beyond a designated parking area;
* * * * *
    Printer ribbon means a nylon fabric designed to hold ink and used 
in dot matrix and other types of impact printers;
* * * * *
    Restroom divider means a barrier used to provide privacy in public 
restroom facilities;
* * * * *
    Shower divider means a water-proof barrier used to provide privacy 
in public shower facilities;
* * * * *

[[Page 57759]]

    Snow fencing means a barrier with an open-weave pattern that can be 
used to control drifting snow or sand by restricting the force of wind;
* * * * *
    Soaker hose means a perforated flexible tubing that is used to 
deliver gentle irrigation to plants;
* * * * *
    4. Section 247.12 is amended by adding new paragraphs (f) and (g) 
to read as follows:


Sec. 247.12  Construction products.

* * * * *
    (f) Shower and restroom dividers containing recovered plastic or 
steel.
    (g) Latex paint.
    5. Section 247.13 is amended by designating the existing text as 
paragraph (a) and by adding new paragraphs (b), (c), (d), and (e) to 
read as follows:


Sec. 247.13  Transportation products.

* * * * *
    (b) Parking stops made from concrete or containing recovered 
plastic or rubber.
    (c) Channelizers containing recovered plastic or rubber.
    (d) Delineators containing recovered plastic, rubber, or steel.
    (e) Flexible delineators containing recovered plastic.
    6. Section 247.14 is amended by redesignating the existing text as 
paragraph (a) and by adding a new paragraph (b) to read as follows:


Sec. 247.14  Park and recreation products.

* * * * *
    (b) Snow fencing containing recovered plastic.
    7. In Sec. 247.15, new paragraphs (c) and (d) are added to read as 
follows:


Sec. 247.15  Landscaping products.

* * * * *
    (c) Garden and soaker hoses containing recovered plastic or rubber.
    (d) Lawn and garden edging containing recovered plastic or rubber.
    8. In Sec. 247.16, new paragraphs (f), (g), and (h) are added to 
read as follows:


Sec. 247.16  Non-paper office products.

* * * * *
    (f) Printer ribbons.
    (g) Ink jet cartridges.
    (h) Plastic envelopes.
    9. Section 247.17 is revised to read as follows:


Sec. 247.17  Miscellaneous Products.

    (a) Pallets containing recovered wood, plastic, or paperboard.
    (b) (Reserved)

[FR Doc. 96-28733 Filed 11-6-96; 8:45 am]
BILLING CODE 6560-50-P