[Federal Register Volume 64, Number 156 (Friday, August 13, 1999)]
[Notices]
[Pages 44185-44193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21103]


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DEPARTMENT OF AGRICULTURE

Office of the Secretary


Procedures for Submission of Biobased Products for Listing by 
USDA

AGENCY: U.S. Department of Agriculture.

ACTION: Notice and request for comment.

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SUMMARY: As required by Executive Order 13101, the U.S. Department of 
Agriculture (USDA) is proposing guidelines for listing commercially 
available commercial and industrial biobased products (a commercial or 
industrial product (other than food or feed) that utilizes biological 
products or renewable domestic agricultural (plant, animal, and marine) 
or forestry materials) available for purchase by Federal agencies. This 
notice includes a generic definition of biobased products, suggested 
criteria for including biobased items in a list to be put together by 
USDA, and a description of the process USDA will use in considering 
items for inclusion on the USDA Biobased Products List. USDA is seeking 
specific public comment on the criteria and process and other comments 
as appropriate. USDA will, after development of the first list, also be 
accepting items for listing on an on-going basis.

DATES: Comments should be received on or before September 13, 1999.

ADDRESSES: Individuals wishing to comment must send an original and two 
copies of their written comments to: J. R. Holcombe, Jr.; Office of 
Procurement and Property Management; U.S. Department of Agriculture; 
Mail Stop 9303; 1400 Independence Avenue, SW; Washington, DC 20250. 
Please place the phrase ``USDA Biobased Products List'' on your 
envelopes containing comments. The comments themselves also should be 
identified with the phrase ``USDA Biobased Products List''.

FOR FURTHER INFORMATION CONTACT: J. R. Holcombe, Jr., at the address 
above or by E-mail at [email protected]. Persons requiring 
accommodations, including sign language interpreters, should call J. R. 
Holcombe, Jr. through Terry Thir at (202)720-2531 or TDD (202)720-
8372).

SUPPLEMENTARY INFORMATION:

[[Page 44186]]

Table of Contents

I. Authority
II. Background
III. Definitions
IV. Model
V. Methodology
VI. Criteria for Proposing Biobased Products
    1. Contain biobased materials
    2. Readily available
    3. Reasonably priced
    4. Performance
    5. Meets EPA's EPP Guiding Principles
VII. Proposed Categories of Products for Consideration
    Category 1: Absorbents/Adsorbents
    Category 2: Adhesives/Inks/Coatings
    Category 3: Alternative Fuels and Fuel Additives
    Category 4: Construction Materials/Composites
    Category 5: Lubricants/Functional Fluids
    Category 6: Renewable Alternative Fiber Papers/Packaging
    Category 7: Solvents/Cleaners/Surfactants
    Category 8: Plant Based Plastics/Degradable Polymers/Films
    Category 9: Landscaping Products
    Category 10: Bioremediation Products
    Category 11: New Fibers/Filler/Yarn/Insulation
    Category 12: Enzymes/Intermediate Chemicals
    Category 13: Other
    (A.) Cosmetics
    (B.) Pharmaceuticals/Nutraceuticals
    (C.) Products no longer under consideration or for which USDA 
has inadequate information
    (D.) Products USDA has decided not to designate
VII. Questions and Answers
IX. Appendix
    1.USDA Biobased Products Coordination Council Functions by 
Member
    2. Other Resources

I. Authority

    The designation and consideration of biobased products is 
authorized by Executive Order (EO) 13101, Greening the Government 
Through Waste Prevention, Recycling, and Federal Acquisition, dated 
September 14, 1998, as follows:

    Sec. 504. Designation of Biobased Items by the USDA. The USDA 
Biobased Products Coordination Council shall, in consultation with 
the FEE (Federal Environmental Executive), issue a Biobased Products 
List. (a) The Biobased Products List shall be published in the 
Federal Register by the USDA within 180 days after the date of this 
order and shall be updated biannually after publication to include 
additional items; (b) Once the Biobased Products List has been 
published, agencies are encouraged to modify their affirmative 
procurement program to give consideration to those products.

    The requirement for Federal agencies to consider biobased products 
is not only in Executive Order 13101, but also in Office of Management 
and Budget (OMB)/Office of Federal Procurement Policy (OFPP) Policy 
Letter 92-4 and applies to all Federal agencies. E.O. 13101 is silent 
on micro-purchases, thus there is no threshold or other exception which 
would discourage agencies from purchasing biobased products. Nor is 
there any exemption for purchases using Federal credit cards. While 
there is no stated equivalent encouragement for state and local 
governments to purchase biobased products, generally state and local 
governments follow the Federal lead in such matters.

II. Background

    Sustained economic growth depends on having a secure raw material 
source for industrial production. Petroleum, today's prevalent 
industrial feed stock, is neither sustainable nor environmentally 
friendly. Biobased products offer alternatives to petroleum and 
mineral-derived industrial products currently in the marketplace which 
may have negative environmental impacts. Biological plant and animal 
systems and processing streams in the U.S. food, feed and fiber 
industries are renewable over a short time frame and, in general, at 
the end of their life cycle are either recycled, or allowed to return 
in an environmentally friendly manner to the environment. Utilizing 
biobased materials to produce industrial products will expand the 
nation's capabilities to take advantage of new and exciting 
technologies and America's agricultural abundance.
    From a procurement perspective, a broader range of biobased 
industrial products will assist agencies in successfully meeting 
environmental goals as outlined in E.O. 13101. From the USDA 
perspective, the issues extend well beyond good stewardship of the 
nation's resources.
    USDA is engaged in research and development activities for biobased 
industrial products. These activities are conducted in-house, through 
universities and colleges, through private business, and through USDA's 
Alternative Agricultural Research and Commercialization Corporation. 
Partnerships with universities, industry, state and local government 
and other Federal agencies to create, apply and transfer knowledge and 
technology, have resulted in a broad range of non-food and non-feed 
products to meet expanding market needs. Some of these products offer 
many performance advantages over conventional products such as enhanced 
quality, durability, flexibility, and strength, and are biodegradable 
when appropriate.
    Buying biobased products ensures that ``biobased industrial 
products will be a major U.S. economic growth area in the next century 
as fossil-based industrial products, such as synthetic chemicals and 
liquid fuels, were in the 20th century. Biobased industrial products 
will improve economic security through use of domestic versus imported 
resources, optimal use of currently unused or underused land, and 
geographically widespread production and manufacture across the U.S.'' 
(Quote from Vision for Agricultural Research and Development in the 
21st Century, December 14, 1998, prepared by the National Agricultural 
Biotechnology Council).
    The Biobased Products List (BPL) does not qualify as a rule making 
under the Administrative Procedure Act, 5 U.S.C. 551 et seq. The 
Biobased Products Coordination Council (BPCC) listing of biobased 
products is without a binding effect. Agencies are not required to 
purchase biobased products, and listing does not guarantee any sales of 
such products. Listing heightens awareness in the Federal acquisition 
community that such products are available. Listing acknowledges that 
these products contain certain features that may make the products more 
desirable for Federal agencies. The BPCC also is not requiring any 
action be taken by the private sector. The listing is simply 
information dissemination. Even though not a rule, USDA is eager to 
obtain public involvement in the formulation of the biobased products 
list to develop a more utilitarian, comprehensive, and informed list. 
For those reasons, USDA is soliciting public comment through this 
notice.
    As stated above, the designation of products by USDA and the 
resulting BPL is part of USDA's efforts to heighten awareness among 
those in the Federal acquisition community regarding the availability 
of such products. Simultaneously, as a collateral benefit, USDA 
believes such listing will promote the use of products made from 
agricultural materials. The intent of E.O. 13101 is to use the 
purchasing power of the Federal government to create new markets and 
stimulate the development of new environmentally preferable products, 
including biobased products, for the Federal market. As with recycled 
content products, Federal agency procurement of biobased products will: 
(1) demonstrate their performance and quality; (2) help to provide 
markets, thereby encouraging manufacturing; (3) drive the development 
of product specifications; (4) promote wider availability; (5) provide 
a model for State and local governments; and (6) remove barriers to 
procurement and use of these products.
    The Federal market place is already well aware of mature biobased 
products,

[[Page 44187]]

such as cotton shirts and dimensional lumber. Because of the 
anticipated large number of biobased products of which Federal 
officials are unaware, and to help keep the BPL manageable and useful 
as an effective and efficient procurement information resource, USDA 
has decided not to list commonly known mature products. Instead, USDA 
is publishing the BPL to promote new uses for conventional crops, non-
conventional crops, biological products, marine products, or forestry 
materials. Additionally, by increasing the acquisition of the number 
and kinds of biobased products available for purchase by Federal 
procurement officials, competition in contracting will be strengthened. 
Successful implementation of E.O. 13101 will have significant outcomes 
for U.S. agriculture and the environment. There will be economic, 
environmental and societal advantages from the development of 
industrial feed stocks from agricultural materials.

III. Definitions

    A ``biobased product' is defined in E.O. 13101 as a commercial or 
industrial product (other than food or feed) that utilizes biological 
products or renewable domestic agricultural (plant, animal, and marine) 
or forestry materials.
    ``Mature markets'' means a product area that exists with sufficient 
commercial sales so that, within the judgment of USDA, no marketing 
support is needed.
    ``Environmentally preferable products'' means products that have a 
lesser negative impact on human health or the environment when compared 
with competing products that serve the same purpose. This comparison 
should use principles recommended in guidance issued by the U.S. 
Environmental Protection Agency (EPA) (see Federal Acquisition 
Regulation 23.703).
    These are commonly recognized definitions. The public is encouraged 
to comment on these definitions and suggest others.

IV. Model

    This notice, and the proposed USDA methodology for designating 
biobased products, is patterned after the Guidelines for Procurement of 
Products Containing Recovered Material (Comprehensive Procurement 
Guidelines--CPG) published by the U.S. Environmental Protection Agency 
(EPA) which designates items that are or can be made with recovered 
materials (59 FR 18852, April 20, 1994). In like manner, the USDA BPL 
will identify commercial or industrial products made from agricultural, 
forestry and marine materials. The CPG implements section 6002(e) of 
the Resource Conservation and Recovery Act (RCRA), as amended by the 
Hazardous and Solid Waste Amendments of 1984, section 502 of E.O. 
12873, and E.O. 13101. RCRA requires EPA to designate items that can be 
produced with recovered materials and to recommend practices for the 
procurement of designated items by procuring agencies. E.O. 12873 and 
E.O. 13101 set forth procedures for EPA to follow in implementing 
section 6002(e) of RCRA. Specifically, EPA designates products for 
agencies to purchase and provides recommendations for purchasing those 
products containing recovered materials. Similarly, E.O. 13101 directs 
that USDA identify biobased products and prepare a list of biobased 
products and ``agencies are encouraged to modify their affirmative 
procurement program to give consideration to those products.'' Updated 
information on CPG can be found at the web site: http://www.epa.gov/
cpg.

V. Methodology

    As soon as E.O. 13101 was signed on September 14, 1998, USDA began 
its efforts to compile a list of biobased products as required by the 
E.O. A committee was appointed by USDA's BPCC to prepare the 
appropriate notice for the Federal Register.
    The committee is made up of individuals with commercialization, 
legal, legislative, marketing, procurement, rural development, 
research, and other technical expertise and who meet to work on the 
list. Early in the process, draft copies of the proposed listing 
process were shared with other Federal agencies, environmental 
organizations, and agri-industry groups, including the major commodity 
representatives. The Federal Trade Commission was contacted to seek 
their guidance with respect to labeling products biobased. The 
committee also utilized existing documents on biobased products 
referenced in the appendix of this document. Based on public input, 
research and the expertise of the committee, this notice for comment 
was prepared.
    A number of questions were raised during the committee 
deliberations. Many of these related to the standard procurement 
requirements of price, performance, and availability. Some are answered 
below under the criteria section, while a number of other 
considerations are conveyed under section VII entitled ``Questions and 
Answers'.
    USDA proposes to designate biobased products by establishing and 
maintaining a list of product categories. For this document we have 
combined some categories of commercial and industrial products. Other 
categories are not listed because they do not designate products which 
are purchased by government procurement officials. This document is 
presented to the public for comment. USDA is providing an opportunity 
for interested parties to suggest changes (alterations, additions or 
deletions) to the designated categories. USDA will consider the timely 
comments and publish its decision in the Federal Register as a notice. 
Over time USDA will determine whether the world wide web or a similar 
electronic communication system may be adequate to allow open public 
review and comment. If this determination is made, the electronic 
system will be used to supplement publication in the Federal Register.
    USDA also will issue guidance in the Federal Register on buying 
biobased products in a Biobased Products Advisory Notice (BPAN). The 
BPANs will recommend biobased content ranges or other descriptors for 
biobased products and will be based on current information on 
commercially available biobased content products. Content levels will 
be updated as marketplace conditions change. BPANs will be prepared and 
published in the Federal Register for public comment in the same manner 
as the BPL.
    USDA will list products and sources for these products on a world 
wide web site to allow buyers to use the designation of products as a 
``yellow pages'' to seek out biobased products for their use. Biobased 
products which USDA is aware of will be listed on the site. USDA will 
not guarantee the validity of the advertising claims presented by the 
vendor to inform USDA of the product. Vendors are advised that their 
advertising, labeling, and other marketing claims should comply with 
the U.S. Federal Trade Commission's Guides for the Use of Environmental 
Marketing Claims, 16 CFR Part 260. USDA also does not endorse any 
products on the list. Vendors may submit information to describe their 
products and its availability at any time after a suitable category is 
developed.
    Products may be listed in more than one category. The extent of 
information to be offered USDA to support listing a product is 
determined by the vendor. Should USDA reject a proposed listing,

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the vendor will be informed of the reasons and allowed to resubmit.
    While directed primarily at Federal executive branch agencies, the 
BPL and BPAN information is helpful to everyone interested in 
purchasing biobased-content products. It is expected that state and 
local governments and commercial businesses will find the BPL and 
supporting information helpful.
    As part of the BPL designation process, USDA will make its 
supporting documentation and background information available. In 
addition, product research information will be published in a technical 
background document that discusses product availability, performance, 
relevant specifications, government purchasing, and other pertinent 
issues.
    All proposals, designations, and recommendations will be published 
in the Federal Register with a brief description for each of the 
designated products listed (BPAN). The public also can view USDA's 
recommended biobased content range, or other descriptors and a list 
identifying manufacturers, vendors, and suppliers for each product at a 
web site to be created.
    USDA's method for identifying, proposing, and designating BPL 
products is developed based on the experience of EPA in the designation 
of recycled-content products and on the direction set up in E.O. 13101, 
section 504. Prior to issuing or revising the BPL, USDA will consult 
with Federal acquisition officials, EPA and the Federal Environmental 
Executive (FEE) required under E.O. 13101, to identify additional 
criteria to consider when selecting (product areas) products for 
designation.
    However, these product categories are not all inclusive and other 
categories may be suggested through the comment process. Many of the 
products under these categories in this first list are those known to 
USDA or its partners because USDA has performed research, initiated 
technology transfer, or provided commercialization assistance for these 
products. USDA realizes there are many biobased industrial products 
developed by the private sector with little or no Federal assistance. 
These will also be considered for listing without bias. The biobased 
industrial products list will be amended periodically to incorporate 
additional products or categories based on public participation. 
Following is a summary of USDA's selection criteria.

VI. Criteria for Proposing Biobased Products

    USDA proposes to evaluate five primary concerns, which every 
product must meet, when examining products for proposed listing. 
Products proposed for listing must:

(1) Contain Biobased Materials

    Products with a higher percentage of biobased content, are 
considered better. Products must be manufactured with raw materials 
that are domestically produced from agricultural production--farming, 
ranching, forestry, aquaculture--or from materials derived during the 
processing of these biobased products. Particular attention is paid to 
those products produced from materials that are a significant component 
of the waste stream.

(2) Readily Available

    The products USDA selects for designation are available from 
national, regional, or local sources. The relative availability of a 
product influences the ability of a procuring agency to secure a 
reasonable price and an adequate level of competition when procuring 
it. USDA does not intend to designate experimental or developmental 
products until it can be shown that they meet these evaluation 
criteria, in particular, commercial availability. Several of the 
technologies behind the products are new and supported by patents. Some 
of these products have been developed through Cooperative Research and 
Development Agreements (CRADAs) while other companies have licensed 
USDA developed technologies. Given this knowledge, the committee felt 
it would be in the Government's interest to purchase those products 
developed with Federal research and commercialization dollars. Sole-
source products may be listed. Additionally, although competition is 
desirable, all applicable patents shall be recognized. However it was 
also felt that the promotion of these technologies would encourage 
other companies to commit funds to enter the market thus leading to 
greater competition.

(3) Reasonably Priced

    It also is important for the product to be priced competitively. It 
is highly desirable that there is adequate competition among suppliers 
of the product.

(4) Performance

    Products must meet commercial or Federal performance standards and 
specifications.
    If product and service providers make marketing claims regarding 
the environmental attributes of their product or service, including 
claims of environmental preferability, the claims should conform to the 
Federal Trade Commission's (FTC's) Guides for the Use of Environmental 
Marketing Claims (Green Guides), 16 CFR Part 260. A copy of the Green 
Guides can be obtained through FTC's website: www.ftc.gov (select 
``Consumer Protection'', then select ``Environment'', then select 
``Guides''). As explained in the FTC Green Guides (16 CFR 260.5), any 
party making a claim concerning a product's environmental attribute 
``must, at the time the claim is made, possess and rely upon a 
reasonable basis substantiating the claim. A reasonable basis consists 
of competent and reliable evidence. In the context of environmental 
marketing claims, such substantiation will often require competent and 
reliable scientific evidence, defined as tests, analyses, research, 
studies or other evidence based on the expertise of professionals in 
the relevant area, conducted and evaluated in an objective manner by 
persons qualified to do so, using procedures generally accepted in the 
profession to yield accurate and reliable results.'' The Green Guides 
(16 CFR 260.5) provide guidance on the use of environmentally 
preferable claims, as well as other claims such as biodegradable, 
recycled, recyclable, non-toxic, and ozone friendly.
    The Green Guides state that either an unqualified or inadequately 
qualified claim that a product is environmentally preferable implies to 
consumers that a product is generally environmentally superior to 
others. Such an overall superiority claim would be difficult to 
substantiate. Accordingly, environmentally preferable claims should be 
accompanied by language limiting the preferability claim to the 
particular attributes that can be substantiated. In other words, the 
claim should explain which specific product features or attributes 
benefit the environment (for example, the product is non-toxic, 
contains no VOCs, and comes in a recycled package). In addition, the 
Green Guides state in 16 CFR 260.6, 260.7 that when environmental 
seals-of-approval or other certifications are used, they should be 
accompanied by information explaining the basis for the award.

(5) Meets EPA's EPP Guiding Principles

    Products must meet the Environmentally Preferable Products (EPP) 
Guiding Principles as published by the EPA. (See definitions section 
III above for the definition of EPP. The EPP Guiding Principles are 
listed below.)

[[Page 44189]]

Guiding Principle 1: Environment + Price + Performance = EPP
    Environmental considerations should become part of normal 
purchasing practice, consistent with such traditional factors as 
product safety, price, performance, and availability.
Guiding Principle 2: Pollution Prevention
    Consideration of environmental preferability should begin early in 
the acquisition process and be rooted in the ethic of pollution 
prevention which strives to eliminate or reduce, up front, potential 
risks to human health and the environment.
Guiding Principle 3: Life Cycle Perspective/Multiple Attributes
    A product's or service's environmental preferability is a function 
of multiple attributes from a life cycle perspective.
Guiding Principle 4: Magnitude of Impact
    Determining environmental preferability might involve comparing 
environmental impacts. In comparing environmental impacts, Federal 
agencies should consider: the reversibility and geographic scale of the 
environmental impacts, the degree of difference among competing 
products or services, and the overriding importance of protecting human 
health.
Guiding Principle 5: Environmental Performance Information
    Comprehensive, accurate, and meaningful information about the 
environmental performance of products or services is necessary in order 
to determine environmental preferability.
    Copies of EPA's final EPP guidance document can be obtained by 
calling the Pollution Prevention Information Clearinghouse (PPIC) at 
(202) 260-1023. The text included here is our understanding of the 
guidance being finalized. We intend to use the final guidance published 
by EPA in operation of the Biobased Products List. The proposed EPP 
guidance was published for public comment at 60 FR 50722, September 29, 
1995, and is available on the Internet at (http://www/epa.gov/docs/EPA-
TOX/1995/September/Day-29/pr-139.html). We will rely on manufacturers' 
advertising claims as a self-certification of these five principles.

VII. Proposed Categories of Products for Consideration

    A key component of the BPL program is USDA's list of designated 
products and the accompanying biobased content recommendations. USDA is 
proposing to designate products in the categories listed below. USDA 
also will publish final or proposed biobased content recommendations 
for each product. At this point, the proposed categories are listed for 
informational and discussion purposes only. USDA is interested in 
learning about category areas for potential future designation. There 
is not a specific list of the information, which USDA requires before 
considering a product, although the discussion above under ``Criteria 
for Proposing Biobased Products'' should provide general guidance for 
those wishing to submit products for listing.
    More details about USDA's information needs and the agency's 
decision-making process will be provided after public input is received 
from this notice.

Category 1: Absorbents/Adsorbents

    Within this category, the environmental preferability of the entire 
product (e.g., absorbent/adsorbent and the casing or framework holding 
or enclosing the absorbent/adsorbent) must be addressed by the buyer. 
Product examples under consideration for listing include:

Vegetable starch
Cotton and cotton linters (cotton pads, oil absorbents)
Wool (low value wool is used to make adsorbent pads)
Kenaf (oil absorbent)
Agricultural wastes (such as corn stover, peanut hulls, and other crop 
residues to absorb liquids and petroleum)

Category 2: Adhesives/Inks/Coatings

    Within this category a number of adhesives have been developed 
which utilize plant proteins, plant starches and plant oils. These 
adhesives generally have low or no emissions (below EPA standards where 
applicable) of hazardous air pollutants and volatile organic compounds 
(VOC's). Examples of products using biobased adhesive under 
consideration for listing include:

Plywood
Finger-jointed lumber
Engineered wood building components (laminated beams, trusses, etc.)
Decorative composites
Fiber board panels
Paper board

    Plant oils are used to make inks. To be considered a plant-based 
ink, the ink must contain a minimum of 20 percent by volume of plant 
oil (Vegetable Ink Printing Act of 1994, Pub.L. 103-348). Examples 
under consideration for listing include:

Soy ink

    (In regards to this product, in its own agency print shops, the 
Federal government buys ink. However, it also buys printing. The intent 
of this designation is to have Federal procurement officials purchase 
soy inks for in-house use and specify the ink for contracted printing.) 
Also in the development stage at this time is a broader range of inks 
such as silkscreen and flexography, toners for copiers and laser 
printers, inkjet printer inks, textile inks and higher soy content UV 
cured inks for a variety of purposes. When these products are 
commercially available, they will be designated if appropriate. Plant 
oils are also used in a number of paints and coatings. Examples under 
consideration include:

Concrete sealants and waterproofing
Concrete stains
Wood sealers and waterproofing
Architectural coatings
Metal coatings
Form release agents
Corrosion inhibitors and polishes.

Category 3: Alternative Fuels and Fuel Additives

    Within this category agricultural raw materials, derivatives, or 
byproducts have been used to develop alternative fuels. Examples under 
consideration for listing include:

Motor Fuels
    Biodiesel (made from plant based oils or animal fats)
    Ethanol (made from corn or other biomass)
Energy Fuels

    Fuel pellets (Generally such products contain over 60 percent by 
weight agricultural, forest, or other woody fiber, produce less than 20 
percent ash after complete combustion, and contain less than 15 percent 
moisture.)

Category 4: Construction materials/Composites

    This category includes wood products and composites from woody and 
agricultural materials, residues, and wastes. Within this category, 
products must be derived from agricultural crop, forest materials, or 
crop residue (includes woody materials). The woody materials can be 
from activities such as thinning, or fuel reduction in plantation 
stands, regenerated forest stands, or intensively cultured short 
rotation woody stands, i.e. less than 10 years, or from wood residue, 
or recovered wood products. Products produced from recovered 
agricultural wastes (including waste paper) need not meet the short 
rotation woody crop requirement during the manufacturing process. 
Examples under consideration for listing include:

Wall systems made from compressed wheat straw or other plant fibers

[[Page 44190]]

Fiber board made from wheat or other cereal straw, sugarcane bagasse, 
or other plant fibers
Composites made from soybean meal or other plant proteins
Molded auto parts from vegetable fibers
Building or office furnishings (desks, tables, cabinets, etc.) made 
from biobased composites
    This category includes wood products and composites from woody and 
agricultural materials which are bound with biobased resins. Examples 
under consideration for listing include:

Plywood
Finger-jointed lumber
Engineered wood building components (laminated beams,trusses, etc.)
Decorative composites

    The category may also include thermoset plastics and reinforced 
plastic parts and plastic foam insulation materials made from vegetable 
oil or protein-based resins. Examples under consideration include:

Rigid foam insulation
Door and window components
Molded reinforced plastic automotive and equipment parts

Category 5: Lubricants/Functional fluids

    Within this category products include oils and greases. Products 
are generally made from soybean, canola, rapeseed, corn or other plant 
materials. Examples under consideration for listing include:

Vehicle lubricants (crankcase oils, transmission fluids, fifth wheel 
grease, all purpose total loss lubricants)
Vehicle fluids (windshield washer fluid from ethanol)
Air-cooled engine lubricants (crankcase oils, greases)
Hydraulic fluids
Gearbox oils
Metal working fluids and cutting oils

    Total loss lubricants: (including 2-cycle engine oils, rail and 
flange lubricants, wire rope and cable lubricants, pump drip oils, bar 
chain oils, lumber skid lubricants, asphalt release agents, concrete 
form release oils, and penetrating oils).

Category 6: Renewable alternative fiber papers/Packaging

    Within this category, products must have at least 30 percent 
recovered content fiber (E.O. 13101), in addition to biobased content, 
and the manufacturing process should use less (or zero) chlorine during 
bleaching than traditional tree fiber produced papers. Crops must be of 
short rotation (less than ten years) cropping system required. Examples 
under consideration include papers which have as their raw materials 
source:

Kenaf
Other short term fibers

    Because they are mature markets, rag and linen papers are not 
suggested for consideration.

Category 7: Solvents/Cleaners/Surfactants

    Within this category examples of products under consideration for 
listing include:

Citrus based cleaners
Soy-based cleaners and degreasers
Soy-based solvents
Soy-based paint strippers and graffiti removers
Soy-based adhesive removers
Pesticide adjuvants and surfactants
Dormant oil sprays for disease and insect control
Other plant oil based solvents and cleaners

Category 8: Plant based plastics /Degradable polymers/films

    Within this category examples under consideration for listing 
include:

Plant starch compostable cutlery
Polylactic acid (PLA) compostable cutlery
Paper plates coated with starch
Protein derivatives or PLA (compostable)
Plant protein used to make films and biodegradable bags
Loose fill packing peanuts from starch or other natural plant materials
Flexible polyurethane foams made with soybean oil based polyols (molded 
cushions and pads for furniture, automotive seats, dashboards, etc.)
Resilient polyurethane components made with soybean oil based polyols 
(molded cases and covers for appliances, telephones, computers, etc.)
Rigid insulating foams made from soy proteins (insulation for 
refrigerators, freezers, coolers, appliances)

Category 9: Landscaping products

    Within this category a number of landscape materials are produced 
by composting green wastes. Some biobased materials, when used as 
absorbents, can also bioremediate hydrocarbons. Examples under 
consideration for listing include:

Potting soil
Soil amendments
Protein-based mulching films

Category 10: Biocontrol/Bioremediation Media

    Within this category are products which contain microbes which 
prevent plant diseases thus reducing or eliminating the need for 
chemical pesticides. Bioremediation products may also be used to 
simultaneously remove or separate toxic or hazardous substances from 
soil or surface water while promoting the development of native microbe 
populations to hasten biodegradation of residual amounts of hazardous 
substances. Examples under consideration for listing include:

    Biocontrol potting mix
    Cotton linters
    Oil spill clean-up materials

Category 11: New fibers/Filler/Yarn/Insulation

    Within this category several new fibers, or fibers which were once 
common in the U.S., are under development or redevelopment. Examples 
under consideration for listing include:

Kenaf (used as absorbent, paper, and clothes)
Flax (clothes)
Ramie (clothes)
Low grade wool
Low grade cotton
Milkweed (yarn, pillow filler, oil)
Plant lignin as adhesives

Category 12: Enzymes/Intermediate Chemicals

    Enzymes are sometimes referred to as biocatalysts. They can be used 
to accelerate a broad range of chemical reactions, which occur in 
everyday life and are used in production of a variety of materials. 
Agriculturally-based enzymes and chemicals are found in such products 
as pharmaceuticals, detergents, cleaning agents, cotton textile surface 
treatments, personal care products, and microbial agents. The committee 
had difficulty with this category. While we realize these are important 
manufacturing processes and utilize agricultural raw materials, we felt 
there was a need to directly link the use of an agricultural enzyme/
chemical to a commercial product which would be available for purchase 
by Federal procurement officials, because that is the primary focus of 
this notice. Thus, we have only mentioned broad product categories. We 
seek public comment to decide what individual products should be listed 
under this category. We also seek public comments as to whether or not 
this should even be a category at all.

Category 13: Other

    Cosmetics: Vegetable oils and small molecule plant starches are one 
of the raw ingredients in a number of cosmetic applications.
    Pharmaceuticals/nutraceuticals: Bioactive compounds and complexes 
are being extracted from plant materials

[[Page 44191]]

for prevention and treatment of diseases.
Products No Longer Under Consideration
    No entries at this time.
Products That USDA Has Decided Not To Designate
    The committee has made the determination to focus on commercial and 
industrial products and to avoid mature products, be they product areas 
or products themselves. The committee does not foresee a need to 
designate products such as cotton fabrics or dimensional lumber 
presently in the commercial marketplace. Composite lumber, which 
utilizes low value woods or other fiber waste and is made using 
environmentally friendly glues and processes, would be considered 
however. Products must be produced from renewable and sustainable 
resources. Our emphasis is on biobased organic products, not natural or 
organic. Thus, mined products are generally not under consideration. 
Petroleum-based products are generally not under consideration unless 
the end product is distinguished by the incorporation of renewable 
biobased materials.

VIII. Questions and Answers

What is the Biobased Products Coordination Council (BPCC)?

    The BPCC was established by virtue of a Decision Memorandum signed 
by the Secretary of Agriculture on September 13, 1995. The Council is 
chaired by the USDA Under Secretary for Research, Education, and 
Economics. The Council promotes commercial and industrial biobased 
product research, development, and commercialization through 
information sharing, implementation of strategic planning, and 
provision of policy advice to the Secretary. Ten USDA agencies are 
members of the Council and include: Forest Service, Agricultural 
Research Service, Cooperative State Research, Education, and Extension 
Service, Office of Energy Policy and New Uses, Alternative Agricultural 
Research and Commercialization Corporation, Foreign Agricultural 
Service, Natural Resources Conservation Service, Agricultural Marketing 
Service, Rural Business-Cooperative Service, and the Office of the 
Assistant Secretary for Administration.

Why Are Biobased Products Environmentally Preferable?

    Because of their carbohydrate chemistry, biobased products are 
believed, within USDA, to be generally preferable to those made from 
hydrocarbons. However, not all biobased products are environmentally 
preferable. For the purposes of E.O. 13101, USDA is listing only those 
products which are considered by USDA to be within the U.S. 
Environmental Protection Agency (EPA) Environmentally Preferable 
Products Guidelines.

Should the Biobased Product List Contain Only Products That Are 
Commercially Available, or Should Products Now in the Research Stage 
Also Be Included? Is the Product Available Only in a Limited Geographic 
Area?

    The committee unanimously agreed that generally only those products 
in commercial production and generally available nationally should be 
included. However, geographic exceptions can be considered. For 
instance, landscaping materials are usually produced and consumed 
regionally since it is not economical to transport such materials over 
long distances. Starch-based packing peanuts are another example. Both 
these products should be used near the point of production. In some 
instances, a company may be national in scope but have regional 
operations to address transportation and other economic issues.

Should There Be a Minimum Percentage of Biobased Materials in the 
Products Suggested for Listing?

    Since the biobased products cover a wide range of industries, it 
was felt no one percentage could be fairly applied across the board. 
Instead, the committee agreed that each category of products could have 
their own percentage requirements by weight or volume based on what the 
committee could learn about that category. The committee does believe 
that the products should contain the largest percentage of biobased raw 
materials possible. Persons commenting on this notice are encouraged to 
address the percentage issue.

What About One Biobased Product Replacing Another?

    In its deliberations, the committee considered the possibility of 
one biobased material displacing another biobased material as 
feedstock, thereby resulting in no net reduction in materials 
available. We also discussed whether the diversion of biobased 
materials from one product to another could possibly create shortages 
in feedstocks for one or both products; and the ability of 
manufacturers to obtain biobased materials in sufficient quantity to 
produce the product under consideration. The committee believes the 
likelihood of these displacements happening is not great, and that it 
is more important, at this juncture, to stimulate the production of 
biobased products. If substitution occurs at some future date, USDA 
will consider developing guidelines to deal with the situation.

Will Products Be Listed by Company Name?

    One of the issues considered was whether or not to list products by 
manufacturer name and address in the initial notice. The committee 
believes it was prudent to first get full public comment on the 
guidelines, categories, criteria and methodology (process) before 
proceeding to list products by manufacturers. It is the intent of the 
USDA to incorporate these public comments into a notice 60 days after 
the publication of this request for comment. That notice will call for 
the submission of information from companies which have products they 
believe will fit the defined criteria. A document (BPAN) listing 
products by company name, address, phone numbers, and sales contact 
information will be produced in the future after all interested parties 
have had a reasonable opportunity to submit their information for 
listing. Those submissions will be evaluated by a team of technical 
experts and published in a separate document and will also be available 
on a web site to be created at a later date.

IX. Appendix

1. Biobased Products Coordination Council

    Biobased products from agricultural and forestry resources provide 
renewable raw materials for the processing and manufacturing of a broad 
range of nonfood and nonfeed products, such as chemicals, fibers, 
construction materials, and energy sources. Development and 
commercialization of such products provide new and expanded markets, 
accelerate successful market penetration, and diversify agriculture 
while fostering rural and sustainable development.
    The Biobased Products Coordination Council, established by the 
Secretary of Agriculture, is chaired by the USDA Under Secretary for 
Research, Education, and Economics. The Council promotes biobased 
industrial product research, development, and commercialization through 
information sharing, implementation of strategic planning, and 
provision of policy advice to the Secretary. Currently ten USDA 
agencies are members of the Council.

[[Page 44192]]

The activities of these agencies in the area of biobased industrial 
products are described as follows:
Forest Service
    The Forest Service (FS) has Federal responsibility for national 
leadership in forestry and forestry-related issues. Through its 
research arm, the FS develops and communicates scientific and 
technological information to protect, manage, and use the Nation's 1.6 
billion acres of forest and related rangeland.
    The FS Resource Valuation and Use Research program and Cooperative 
Forestry program develop and provide scientific and technological 
information to support the harvesting, production, and use of wood 
products in ways that are efficient, safe, and environmentally 
beneficial. Specific areas of development include improved wooden 
transportation systems; fiber-reinforced cement products; uses for 
waste wood and plastics (ranging from very inexpensive, low-performance 
composites to expensive, high-performance building materials); housing 
components and systems made from recycled wood waste and wastepaper; 
and novel enzymes used to treat virgin and recycled wood fibers in the 
production of a variety of chemicals.
Agricultural Research Service
    As the in-house research arm of USDA, the Agricultural Research 
Service (ARS) develops new knowledge and technology needed to solve a 
broad range of technical and agricultural problems of high national 
priority. ARS aims to ensure adequate production of high-quality food 
and agricultural products to meet the nutritional needs of the American 
consumer, to sustain a viable food and agricultural economy, and to 
maintain a quality environment and natural resource base.
    Biobased industrial product research and development focuses on 
areas such as chemicals and industrial products from crops, cattle, and 
animal fats; starch-based biodegradable plastics; polysaccharide 
encapsulating agents; and new products from soybean oil, which are 
useful as additives to lubricants, fuels, and plastics, as surface 
coatings; and as inks for the printing industry. Additional areas 
include development of ion exchange resins based on agricultural 
residues, cotton-based fabrics with versatile new and improved 
properties, and fiber crops for specialized uses.
Cooperative State Research, Education, and Extension Service
    The Cooperative State Research, Education, and Extension Service 
(CSREES), USDA's principal link to academia, participates in a 
nationwide agricultural research planning and coordination system that 
includes State land-grant universities and the agricultural industry. 
CSREES advances research and development in new uses for industrial 
crops and products through its Agricultural Materials program, National 
Research Initiative, Small Business Innovation Research program, and 
other activities.
    Areas of interest include paints and coatings from new crops such 
as vernonia, euphorbia, and lesquerella; fuels and lubricants from 
soybeans, crambe, rapeseed, and canola; fiber products from kenaf and 
hesperaloe; natural rubber from guayule; and biobased polymers from 
vegetable oils and starches.
Office of Energy Policy and New Uses
    The Office of Energy Policy and New Uses provides leadership, 
oversight, coordination, and evaluation for all USDA energy and energy-
related activities with the exception of those delegated to the USDA 
Assistant Secretary for Administration. The Office analyzes existing 
and proposed energy policies, strategies, and regulation concerning or 
potentially affecting agriculture or rural America. It also evaluates 
the feasibility of new uses for agricultural products.
    In collaboration with the U.S. Department of Energy and the U.S. 
Environmental Protection Agency, projects have focused on technologies 
that convert plant cellulose and hemicellulose into ethanol and 
electricity production using direct combustion or gasification 
technologies.
Alternative Agricultural Research and Commercialization Corporation
    Created by Congress as part of the Farm Bill in 1990, the 
Alternative Agricultural Research and Commercialization Corporation 
(AARC) is a USDA agency that makes equity investments to commercialize 
industrial products from agricultural and forestry materials and animal 
byproducts. This activity complements the work of USDA's research 
agencies. AARC policy and program direction is provided by a nine-
person Board of Directors--eight of whom are non-Federal--representing 
processing, financial, producer, and scientific interests.
    Development and commercialization projects include vegetable oil 
lubricants for engines and transmissions; building materials made from 
wheat straw; cleaners and biodiesel fuel made from vegetable oil; a 
lightweight, high-strength molded fiber panel made from waste wood and 
kenaf; windshield washer solvent using ethanol made from corn; oil 
spill absorbents made from natural fibers; and a nontoxic biodegradable 
concrete release agent.
Foreign Agricultural Service
    The Foreign Agricultural Service (FAS) maintains 75 overseas posts 
with the overall goal of supporting U.S. exports of agricultural, 
forest, and fish products. This is accomplished by reducing trade 
barriers, collecting and disseminating global trade and market 
information; and developing markets through the use of promotion, loan 
guarantees, food aid, and economic development activities.
    FAS works through private industry to identify overseas markets for 
new products, promote exports of such products, and research and 
develop new products. FAS supports these activities through the Market 
Access Program, the Foreign Market Development Program, and scientific 
exchanges sponsored by the International Cooperation and Development 
program.
Natural Resources Conservation Service
    The Natural Resources Conservation Service (NRCS) has national 
responsibility for helping farmers, ranchers, and other private 
landowners develop and implement voluntary efforts to conserve and 
protect our Nation's natural resources. Key NRCS programs provide 
technical assistance to land users and local government to sustain 
agricultural productivity while protecting and enhancing the natural 
resource base.
    Activities emphasize reduction of soil erosion; improvements in 
soil and water quantity and quality; wetland conservation and 
improvement; enhancement of fish and wildlife habitat; improvements in 
air quality; improvements in the conditions of pastures and rangelands; 
reduction in upstream flooding; and improved woodlands.
Agricultural Marketing Service
    The mission of the Agricultural Marketing Service (AMS) is to 
facilitate the strategic marketing of agricultural products in domestic 
and international markets while ensuring fair trading practices and 
promoting a competitive, efficient marketing system. Working with other 
government agencies, and the public, AMS establishes grades and 
standards for a wide array of

[[Page 44193]]

agricultural commodities and products and provides grading and classing 
services to certify the quality or condition of products in marketing 
channels.
    AMS provides oversight of federally sanctioned marketing orders and 
agreements and industry wide market research and promotion programs. In 
addition, the agency administers certain pesticide reporting 
requirements, compiles data concerning pesticide residues on certain 
products, and conducts or administers research and technical assistance 
programs to improve the efficiency of the marketing and transportation 
system and to identify new or expanding market opportunities for U.S. 
farmers and agribusiness.
Rural Business-Cooperative Service
    The Rural Business-Cooperative Service promotes economic 
development in rural communities by financing needed facilities, 
assisting business development and rural cooperatives, and planning 
national strategies for rural economic development.
Office of the Assistant Secretary for Administration
    The USDA Assistant Secretary for Administration provides leadership 
and oversight in acquisition, asset management, civil rights, internal 
energy conservation, and recycling. As the USDA Energy Management 
Executive and the Environmental Executive (dual assignment with the 
Under Secretary for Research, Education and Economics), the Deputy 
Assistant Secretary has responsibility for coordinating environmentally 
preferable and energy-efficient initiatives and serves as an advocate 
for coordination of these initiatives in USDA facilities and programs 
across the country.

2. Other Resources

    Agricultural Research, Extension, and Education Reform Act of 1998, 
Sec. 404 (7 U.S.C. 7624), provides authority to increase and coordinate 
biobased product activities in USDA.
    Sustainable America, A New Consensus for Prosperity, Opportunity, 
and a Healthy Environment for the Future, President's Council on 
Sustainable Development, Washington, D.C., 186 pp., 1996. Contains a 
national action strategy for sustainable development which includes 
actions to: (1) Diversify the mix of agricultural goods produced to 
enhance profitability and environmental quality; and (2) promote 
ongoing efforts to achieve sustainable forest management.
    Strategic Direction for Biobased Products Work in USDA Through the 
Biobased Products Coordination Council (BPCC ), BPCC, Washington, DC, 
16 pp, 1999. A plan to carry out programs to increase the domestic 
research, development and commercialization of biobased industrial and 
commercial products.
    Executive Order 13101, Greening the Government Through Waste 
Prevention, Recycling, and Federal Acquisition, 63 FR 49643, 
Washington, D.C., September 16, 1998. Establishes guidelines and policy 
for each executive agency to increase and expand markets for recovered 
materials to create Federal Government preference and demands for such 
products.
    The National Research Council, Biobased Industrial Products, 
National Academy Press, Washington D.C. (In Press). Provides an 
analysis of the potential benefits of encouraging a transition to more 
biobased industrial products through future public policies. Biological 
sciences are likely to make the same impact on the formation of new 
industries in the next century as the physical and chemical sciences 
have had on industrial development throughout the century now coming to 
a close. The biological sciences, when combined with recent and future 
advances in process engineering, can become the foundation for 
producing a wide variety of industrial products from renewable plant 
resources. These ``biobased industrial products'' will include fuels, 
chemicals, lubricants, plastics, and building materials. * * * The 
long-term growth of biobased industrial products will depend on 
development of cost-competitive technologies and access to diverse 
markets.
    1995 Federal Research and Development Program in Materials Science 
and Technology, The Materials Technology Subcommittee of the National 
Science and Technology Council, Gaithersburg, MD, 1995. This report 
describes the materials R&D programs of nine Federal departments and 
agencies to facilitate collaboration among the public and private 
sector members of the broad materials R&D community.
    Plant/Crop-Based Renewable Resources 2020 Program--A Vision to 
Enhance U.S. Economic Security Through Renewable Plant/Crop-Based 
Resource Use, Department of Energy, Washington, D.C., 1998. Develops a 
program to provide continued economic growth, healthy standards of 
living, and strong national security through the development of plant/
crop-based renewable resources as a viable alternative to diminishing 
fossil feedstocks for biobased products.
    Agenda 2020-A Technology Vision and Research Agenda for America's 
Forest, Wood and Paper Industry, American Forest and Paper Association, 
Washington, D.C., 1994. Develops a long-term strategy for 
sustainability of forest products by increasingly leveraging the virgin 
raw material with material recovery and recycling.
    Vision for Agricultural Research and Development in the 21st 
Century, National Agriculture Biotechnology Council, Ithaca, NY 1998. 
Supports agricultural research and development to take the lead in 
providing technology for a biobased economy in the 21st century.

    Done at Washington, D.C., on this 10th day of August, 1999.
I. Miley Gonzalez,
Under Secretary, Research, Education and Extension.
[FR Doc. 99-21103 Filed 8-12-99; 8:45 am]
BILLING CODE 3410-01-P