80_FR_34144 80 FR 34030 - Voluntary Labeling Program for Biobased Products

80 FR 34030 - Voluntary Labeling Program for Biobased Products

DEPARTMENT OF AGRICULTURE
Office of Procurement and Property Management

Federal Register Volume 80, Issue 114 (June 15, 2015)

Page Range34030-34039
FR Document2015-14417

The U.S. Department of Agriculture (USDA) is amending its regulations concerning the Voluntary Labeling Program for Biobased Products, to incorporate statutory changes to section 9002 of the Farm Security and Rural Investment Act (the 2002 Farm Bill) that went into effect when the Agricultural Act of 2014 (the 2014 Farm Bill) was signed into law on February 7, 2014.

Federal Register, Volume 80 Issue 114 (Monday, June 15, 2015)
[Federal Register Volume 80, Number 114 (Monday, June 15, 2015)]
[Rules and Regulations]
[Pages 34030-34039]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14417]


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DEPARTMENT OF AGRICULTURE

Office of Procurement and Property Management

7 CFR Part 3202

RIN 0599-AA22


Voluntary Labeling Program for Biobased Products

AGENCY: Office of Procurement and Property Management, USDA.

ACTION: Final rule.

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SUMMARY: The U.S. Department of Agriculture (USDA) is amending its 
regulations concerning the Voluntary Labeling Program for Biobased 
Products, to incorporate statutory changes to section 9002 of the Farm 
Security and Rural Investment Act (the 2002 Farm Bill) that went into 
effect when the Agricultural Act of 2014 (the 2014 Farm Bill) was 
signed into law on February 7, 2014.

DATES: This rule is effective July 15, 2015.

FOR FURTHER INFORMATION CONTACT: Ron Buckhalt, USDA, Office of 
Procurement and Property Management, Room 361, Reporters Building, 300 
7th St. SW., Washington, DC 20024; email: 
[email protected]; phone (202) 205-4008. Information 
regarding the Voluntary Labeling Program for Biobased Products (one 
part of the BioPreferred[supreg] Program) is available on the Internet 
at http://www.biopreferred.gov.

SUPPLEMENTARY INFORMATION: The information presented in this preamble 
is organized as follows:

I. Executive Summary
II. Authority
III. Background
IV. Summary of Changes
V. Discussion of Public Comments
VI. Regulatory Information
    A. Executive Orders 12866 and 13563: Regulatory Planning and 
Review
    B. Regulatory Flexibility Act (RFA)
    C. Executive Order 12630: Governmental Actions and Interference 
With Constitutionally Protected Property Rights
    D. Executive Order 12988: Civil Justice Reform
    E. Executive Order 13132: Federalism
    F. Unfunded Mandates Reform Act of 1995
    G. Executive Order 12372: Intergovernmental Review of Federal 
Programs
    H. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    I. Paperwork Reduction Act
    J. E-Government Act Compliance
    K. Congressional Review Act

I. Executive Summary

    USDA is amending 7 CFR part 3202 to incorporate the statutory 
changes to section 9002 of the Farm Security and Rural Investment Act 
made by enactment of the Agricultural Act of 2014 on February 7, 2014. 
USDA is also finalizing amendments that clarify the rules under which 
the voluntary labeling program operates. The remainder of this section 
presents a brief summary of the amendments to the existing voluntary 
labeling program rules and Section IV of this preamble presents more 
detailed discussions.

A. Summary of Major Provisions of the Final Rule

1. Revisions to Section 3202.2 ``Definitions''
    USDA is amending 7 CFR 3202.2 by deleting the definitions of 
``BioPreferred Product,'' ``Designated item,'' and ``Mature market 
products.'' USDA is also revising the definitions of ``Biobased 
product,'' ``Certification mark artwork,'' and ``Intermediate 
ingredient or feedstock'' and adding new definitions for ``Designated 
product category,'' ``Forest product,'' ``Qualified biobased product,'' 
and ``Renewable chemical.'' These changes are being made to bring the 
voluntary labeling rule up to date with the BioPreferred Program 
Guidelines and the 2014 Farm Bill.
2. Revisions to Section 3202.4 ``Criteria for Product Eligibility To 
Use the Certification Mark''
    USDA is adding a paragraph and subparagraphs to section 3202.4 that 
describe the biobased content criteria for complex assemblies. 
Procedures for designating complex assemblies for the federal preferred 
procurement initiative have been added to the BioPreferred Program 
Guidelines and this final rule updates the voluntary labeling program 
rules to include these products.
    USDA is also adding paragraphs to section 3202.4 to present the 
criteria for evaluating whether products use ``innovative approaches.'' 
The Conference Report on the 2014 Farm Bill states that ``It is the 
Managers'

[[Page 34031]]

intention that all products in the program use innovative approaches in 
the growing, harvesting, sourcing, procuring, processing, 
manufacturing, or application of the biobased product.'' USDA is, 
therefore, adopting criteria to be used when evaluating whether 
biobased products meet the requirement to use ``innovative 
approaches.''
3. Revisions to Section 3202.5 ``Initial Approval Process''
    USDA is amending paragraph (a)(1) to specifically address 
situations where a manufacturer seeks certification for a new product 
that is composed of the same biobased ingredients and has the same 
biobased content as a previously certified product. In these cases, 
where a new product for which certification is sought is composed of 
the same biobased ingredients and has the same biobased content as a 
product that has already been certified, the manufacturer may, in lieu 
of having the new product tested, self-declare the biobased content of 
the new product by referencing the tested biobased content of the 
certified product. Certification of the original product must have been 
obtained by either the manufacturer of the new product or by the 
supplier of the biobased ingredients used in the new product. This 
provision will result in reduced biobased content testing, and thus a 
cost savings, for manufacturers who use the same biobased ingredients 
to formulate products that differ in size or shape or that are marketed 
for different applications.
    USDA is also amending paragraph (c)(5) to state that manufacturers 
wishing to change the name of their company or the name of a certified 
product must notify USDA in writing within 30 days of making such 
changes.
    USDA is also amending paragraph (d)(2) to clarify that, although 
certifications do not have a predetermined expiration date, they are 
subject to mandatory periodic auditing activities and to suspension or 
revocation if biobased content violations are identified. USDA is 
amending this paragraph to allow for the revocation of a certification 
if it is discovered that certification was issued as a result of 
error(s) on the part of USDA during the approval process.
4. Revisions to Section 3202.8 ``Violations''
    USDA is amending paragraph 3202.8(c)(3) to correct an error in a 
reference cited in the paragraph. The reference to 7 CFR part 3017 is 
incorrect. The appropriate references are 2 CFR part 417 and 48 CFR 
subpart 9.4.
5. Revisions to Section 3202.10 ``Oversight and Monitoring''
    USDA is adding a new section 3202.10(d) that identifies three 
auditing efforts that will be ongoing for the voluntary labeling 
program. The 2014 Farm Bill contained specific language authorizing 
USDA to perform auditing and compliance activities necessary to ensure 
that the label is used only on products that meet the established 
eligibility criteria.
    USDA expects to conduct audits of the voluntary labeling program on 
an ongoing basis with audit activities conducted every other calendar 
year (bi-annually). Audit activities will include three stages and will 
be conducted in sequential order. Stage 1 was conducted in 2012, Stage 
2 will be conducted in 2014, and Stage 3 will be conducted in 2016. In 
2018, the sequence will start over with Stage 1.
    Stage 1 auditing includes contacting all participants via email and 
requesting that they complete a ``Declaration of Conformance Form.'' 
Program participants are asked to confirm that they still manufacture 
the product and that the formulation and manufacturing processes remain 
the same.
    Stage 2 auditing consists of a random sampling of certified 
products to confirm the accuracy of biobased content percentages 
claimed. The participants whose products are selected will be required 
to submit product samples to be tested by independent testing labs at 
USDA expense.
    Stage 3 auditing requires manufacturers of products that have been 
certified for 5 years or more to have their products re-tested at their 
expense to confirm that the biobased content remains at or above the 
level at which the product was originally certified.
    USDA believes that the audit program outlined above will be a 
valuable tool in ensuring the integrity of the program and compliance 
with the voluntary labeling program rules.

B. Costs, Benefits, and Transfers

----------------------------------------------------------------------------------------------------------------
                 Type                           Costs                   Benefits                Transfers
----------------------------------------------------------------------------------------------------------------
Quantitative.........................  Unable to quantify at    Unable to quantify at    Unable to quantify at
                                        this time.               this time.               this time.
Qualitative..........................  1. Costs of developing   Advances the objectives  1. Opens new (federal)
                                        biobased alternative     of the BioPreferred      market for biobased
                                        products;                Program, as envisioned   products that USDA
                                       2. Costs to gather and    by Congress in           newly designates.
                                        submit biobased          developing the 2002,    2. Opportunity for
                                        product information      2008, and 2014 Farm      newly developed
                                        for BioPreferred Web     Bills.                   biobased products to
                                        site;.                                            be publicized via
                                                                                          BioPreferred Web site.
                                                                                         3. Loss of market share
                                                                                          by manufacturers who
                                                                                          choose not to offer
                                                                                          biobased versions of
                                                                                          products.
----------------------------------------------------------------------------------------------------------------

II. Authority

    The Voluntary Labeling Program for Biobased Products was 
established under the authority of section 9002 of the Farm Security 
and Rural Investment Act of 2002 (the 2002 Farm Bill), as amended by 
the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill), 
and further amended by the Agricultural Act of 2014 (the 2014 Farm 
Bill), 7 U.S.C. 8102. (Section 9002 of the 2002 Farm Bill, as amended 
by the 2008 and the 2014 Farm Bills, is referred to in this document as 
``section 9002'').

III. Background

    Section 9002 establishes a program for preferred procurement of 
biobased products by federal agencies and a voluntary program for the 
labeling of biobased products. These two programs are referred to 
collectively by USDA as the BioPreferred[supreg] program.
    Under the preferred procurement program, federal agencies and their 
contractors are required to purchase biobased products, as defined in 
regulations implementing the statute, that are within designated 
product categories when the cumulative purchase price of the products 
to be procured is more than $10,000 or when the quantities of 
functionally equivalent items purchased over the preceding fiscal year 
equaled $10,000 or more. The final rules under which the preferred 
procurement program operates are

[[Page 34032]]

found at 7 CFR part 3201, ``Guidelines for Designating Biobased 
Products for Federal Procurement.'' In a separate rulemaking, the 
provisions of the Guidelines are being amended to reflect the 
provisions of the 2014 Farm Bill.
    The final rules for the voluntary labeling program, under which 
USDA authorizes manufacturers and vendors of biobased products to use a 
``USDA Certified Biobased Product'' label (hereafter referred to in 
this preamble as ``the certification mark''), are found at 7 CFR part 
3202. The voluntary labeling program is intended to encourage the 
purchase and use of biobased products by reaching beyond the federal 
purchasing community and promoting the purchase of biobased products by 
commercial entities and the general public. In establishing this 
program, USDA identified the criteria to determine those products on 
which the certification mark may be used and developed specific 
requirements for how the mark can be used. It is USDA's intent that the 
presence of the certification mark on a product will mean that the 
labeled product is one for which credible factual information is 
available as to the biobased content, consistently measured across 
labeled products by use of the American Society of Testing and 
Materials (ASTM) radioisotope test D6866.
    On July 31, 2009, USDA published a proposed rule for the voluntary 
labeling program under the authority of section 9002 (74 FR 38296-01). 
The voluntary labeling program final rule was promulgated on January 
20, 2011 (76 FR 3790-01).
    On February 7, 2014, the 2014 Farm Bill was signed into law and 
included several provisions that amended the provisions of section 
9002. The primary purpose of these rule amendments is to revise the 
voluntary labeling program final rule to incorporate changes to section 
9002 that were included in the 2014 Farm Bill. USDA is also finalizing 
certain clarifying amendments to the program rules based on several 
years of operating experience. These amendments will not affect the 
status of products that have already been certified by USDA to display 
the certification mark. However, when Stage 3 of the auditing program 
(7 CFR part 3202, section 3202.10) is conducted in 2016, manufacturers 
whose product certification is at least 5 years old will incur 
additional costs of about $400 per certified product for biobased 
content re-testing.

IV. Summary of Changes

    As a result of public comments received on the proposed amendments 
to the Voluntary Labeling Program regulations, USDA has made changes in 
finalizing the amendments. These changes are summarized in the 
remainder of this section. A summary of each comment received, USDA's 
response to the comment or group of related comments, and the rationale 
for any change made in the final rule is presented in section V.

A. 7 CFR 3202.2--Definitions

    USDA is finalizing the proposed definitions with no changes.

B. 7 CFR 3202.4--Criteria for Product Eligibility To Use the 
Certification Mark

    USDA revised the proposed language in paragraph (c)(2) to add the 
word ``biobased'' to the description of products or materials that 
qualify under criterion 1 and also added a paragraph (iii) stating that 
products meet the criteria if the biobased content of the product or 
material makes its composition different from products or material used 
for the same historical uses or applications.
    In the final rule, USDA added a sentence at 3202.4(c)(4) to clarify 
that evidence of an innovative approach will not be restricted to only 
those innovative criteria listed in the Guidelines and that 
consideration of other evidence will be on a case-by-case basis.

C. 7 CFR 3202.5--Initial Approval Process

    This section has been finalized as proposed.

D. 7 CFR 3202.8--Violations

    This section has been finalized as proposed.

E. 7 CFR 3202.10--Oversight and Monitoring

    This section has been finalized as proposed.

V. Discussion of Public Comments

    USDA solicited comments on the proposed amendments for 60 days 
ending on December 26, 2014. USDA received eight comments by that date. 
One of the comments was from an individual citizen, five were from 
industry trade groups, one was from an academic institution, and one 
was from a biobased product manufacturer. The comments are presented 
below, along with USDA's responses, and are grouped by the Code of 
Federal Regulation (CFR) section numbers to which they apply.

A. General Comments on BioPreferred Program

    Comment: One commenter expressed concern that the proposed 
amendments to the Voluntary Labeling Program will ``reduce consumer 
protection.'' The commenter did not specify which part of the proposed 
amendments she was referring to but stated that she expects the 
government to inform and protect her and not to create an easier 
process for ``controversial production activities including ongoing use 
and further development of GMO's.''
    Response: USDA appreciates the commenter's interest in the 
BioPreferred Program but disagrees with the idea that the proposed 
amendments might reduce consumer protection. The purpose of the 
voluntary labeling program is to inform the consumer regarding the 
biobased content of certified products. USDA does not make or 
specifically endorse any claims of performance nor consumer protection 
or risks. The BioPreferred Program also does not evaluate or 
investigate the use of genetically modified organisms (GMOs) and the 
use of such materials is neither defended nor endorsed by the Program.
    Comment: Another commenter recommended including in the Voluntary 
Labeling Program biochar and the process used to produce this material. 
The commenter described briefly what biochar is and how it may be 
produced. In addition, the commenter provided USDA with a research 
paper that may provide background information on this material.
    Response: USDA agrees with the commenter and notes that a biochar 
product has already been certified to display the label. No change to 
the proposed rule language is required in response to this comment.

B. 7 CFR 3202.2--Definitions

    Comment: One commenter stated their agreement with USDA's proposed 
definitions for ``Biobased product,'' ``Certification mark artwork,'' 
and ``Forest product'' and none of the commenters provided adverse 
comments.
    Response: USDA appreciates the support of the commenters.

C. 7 CFR 3202.4--Criteria for Product Eligibility To Use the 
Certification Mark

    Comment: One commenter believed that a ``federal preference 
program'' should not endorse products on the grounds that they contain 
biobased ingredients and that they are ``new and different'' from the 
way products were manufactured historically instead of

[[Page 34033]]

considering whether the products are better for the environment and 
human health, or perform better than those that are currently 
available.
    Response: While USDA understands the commenter's position, the 
statutory requirements of the 2002 Farm Bill, as amended in the 2008 
and 2014 Farm Bills, mandate that the BioPreferred Program promote and 
give a preference to the purchase of biobased products, particularly 
those using ``innovative approaches.'' USDA does not have the authority 
nor the resources to evaluate the life cycle environmental and human 
health impacts of biobased products compared to those of traditional 
petroleum based products. USDA does present manufacturer-supplied 
information regarding the performance of products in cases where the 
manufacturer provides such information. However, as with life cycle 
impacts, USDA does not have the statutory authority or the resources to 
independently investigate the performance of products that participate 
in the Program.
    Comment: One commenter asked USDA whether this proposed rule would 
be applied in a ``multi-plant manufacturing scenario'': Would it be 
applied at the product or at the manufacturing plant level, and would 
one plant's compliance be sufficient for all plants?
    Response: USDA certification of biobased products to display the 
label is product specific, but is independent of the actual 
manufacturing plant in which the product is produced. That is, if a 
manufacturer produces product A in two different locations and the 
product is otherwise identical, the manufacturer only has to apply for 
certification once and the manufacturer may select a sample for 
biobased content testing from either manufacturing plant. USDA believes 
that this procedural question is adequately covered in the Program 
operating procedures and has not made changes to the actual rule 
language.
1. 7 CFR 3202.4(b)(4)--Finished Products That Are Complex Assemblies
    Comment: One commenter stated that calculating the biobased content 
of a complex assembly is complicated and recommended that USDA provide 
extra guidance via written communication or webinars for companies 
interested in receiving certification to display the USDA Certified 
Biobased Product label on products that would be considered complex 
assemblies. The commenter explained that because ``complex products'' 
have not yet been designated as a product category for federal 
procurement preference they should meet or exceed the default 25% 
minimum biobased content requirement to receive certification to 
display the USDA Certified Biobased Product label. The commenter stated 
that companies and stakeholders will need assistance from USDA to 
determine appropriate eligibility conditions to ``support a proposed 
alternative applicable minimum biobased content.''
    Response: USDA appreciates the support expressed by the commenter 
regarding the labeling of complex assemblies and agrees that additional 
guidance for applicants would be beneficial. As the labeling of complex 
assemblies is initiated, USDA will prepare training materials that will 
be provided to applicants. USDA routinely provides training and 
guidance materials to applicants seeking to certify their products and 
will expand the coverage of such materials as the BioPreferred Program 
expands. No revisions to the proposed rule language are expected as a 
result of this comment.
2. 7 CFR 3202.4(c)--Innovative Approach
    Comment: One commenter expressed concern that Sec.  3202.4(c) was 
written specifically for forestry products, which may cause issues for 
non-forestry products. The commenter suggested clarifying the first 
paragraph in Sec.  3202.4(c) by adding the word ``biobased'' in front 
of ``product'' and ``products.'' The commenter also suggested 
clarifying Sec.  3202.4(c)(2)(i) and (ii) to read:

    (i) Product composition and applications. (A) The biobased 
product or material is used or applied in applications that differ 
from historical applications; (B) The biobased product or material 
is grown, harvested, manufactured, processed, sourced, or applied in 
other innovative ways; or (C) The biobased content of the product or 
material makes its composition different from products used for the 
same historical uses or applications.
    (ii) Manufacturing and processing. (A) The biobased product or 
material is manufactured or processed using renewable, biomass 
energy or using technology that is demonstrated to increase energy 
efficiency or reduce reliance on fossil fuel based energy sources; 
or (B) The biobased product or material is manufactured or processed 
with technologies that ensure high feedstock material recovery and 
use; or (C) The product or material is manufactured or processed in 
a way that adds biobased content.

    Response: USDA agrees with the commenter that certain edits to the 
proposed language add clarity to the rule and, thus, will revise the 
proposed language for the final rule. However, USDA disagrees with the 
commenter's recommendation to include the statement that the 
manufacturing and processing criteria should be revised to specifically 
include processes that ``add biobased content.'' Many biobased products 
are made by replacing petroleum-based components of traditional 
products with biobased components, which could be characterized as 
adding biobased content, and these products would be covered by 
criterion (i)(C) in the commenter's edited paragraphs. Thus, there 
would be no benefit to adding a third item to the manufacturing and 
processing criterion.
3. 7 CFR 3202.4(c)(3)--Environmental Product Declaration
    Comment: One commenter was concerned that the proposed criterion 
for an Environmental Product Declaration (EPD) would ``expand the 
reach'' of the BioPreferred Program ``beyond what was originally 
intended.'' This commenter added that the EPD should merely supplement 
the product's participation in the BioPreferred Program, instead of 
being a requirement for it.
    A second commenter provided USDA with two examples of a Type III 
EPD and noted that the EPD requires a product to meet ``Product 
Category Rules.'' The commenter pointed out that this information ``may 
or may not be available and would require time to develop.'' The 
commenter added that the ``LCA related data'' included in the EPD will 
assist in comparing products but inquired how federal agencies will use 
this data. Additionally, the commenter asked if there is an advantage 
to using this data as one means of defining ``biobased purchasing.''
    Response: In response to both commenters, USDA points out that the 
proposal did not make it a ``requirement'' that a manufacturer submit 
an EPD to participate in the BioPreferred Program. Submitting an EPD is 
one of the means available for manufacturers to demonstrate that their 
biobased products meet the ``innovative approach'' criteria. Various 
other types of documentation are also acceptable. Also, in response to 
the second commenter, USDA agrees that not all manufacturers have EPDs 
for their products and that the completion of an EPD can be time 
consuming. The purpose of requesting documentation such as, but not 
limited to, an EPD is to demonstrate that the manufacturer meet 
Congress' intention that ``all products in the program use innovative 
approaches in the growing, harvesting, sourcing, procuring, processing, 
manufacturing, or application of the biobased product.'' Because not 
all manufacturers have

[[Page 34034]]

performed an EPD, USDA does not believe that it would be beneficial to 
require this type of data in defining ``biobased purchases'' by federal 
agencies. USDA's position is that purchases of biobased products that 
have been accepted into the BioPreferred Program and are, thus, listed 
in the Program's Biobased product catalog are eligible to be counted as 
``biobased purchases.''
4. 7 CFR 3202.4(c)(4)--Raw Material Sourcing
    Comment: One commenter wanted USDA to take into account that a 
finished wood product may be sourced domestically or globally; thus, 
the commenter cautioned USDA that the criteria proposed in Sec.  
3202.4(c)(4) do not ``inadvertently create a technical barrier to 
trade'' and do not exclude imported wood products that were harvested 
and exported legally in the U.S. and their country of harvest. This 
commenter recommended that USDA recognize in the proposed rule that new 
certification measures for forestry products develop every year and 
encouraged USDA to include ``new legality systems,'' for example, the 
Voluntary Partnership Agreements under the European Union's Forest Law 
Enforcement, Governance and Trade Action Plan as another way to 
demonstrate innovation. In addition, the commenter advised USDA to be 
aware that the definitions for ``legal, responsible, or certified 
sources are not applied in a manner that prevents innovation in 
forestry management and certification.'' The commenter looked forward 
to ``working closely with USDA'' to help implement these rules.
    Response: USDA agrees with the commenters that the proposed 
innovative criteria should not be considered as an all-inclusive list. 
USDA recognizes that sustainability advances are occurring worldwide 
and does not intend that new and valid certifications be excluded from 
consideration by the BioPreferred Program. In the final rule, USDA will 
clarify that evidence of an innovative approach will not be restricted 
to only those innovative criteria listed in the Guidelines and that 
consideration of other evidence will be on a case-by-case basis.

D. 7 CFR 3202.5--Initial Approval Process

    Comment: While one commenter specifically supported this section of 
the proposed rule, another expressed concern regarding a manufacturer's 
ability to waive testing via ASTM D6866 and to self-declare its 
product's biobased content by referencing the tested biobased content 
of a product that has already been certified if both products share the 
same biobased ingredients and biobased content. The commenter indicated 
that this approach would work smoothly if these products are made by 
the same manufacturer; however, ``complications'' could arise if the 
manufacturers are different. Thus, the commenter suggested that USDA 
clarify how manufacturers are supposed to proceed and recommended that 
USDA make sure this proposed approach does not cause the manufacturer 
of the initially certified product to have a disadvantage, as that 
manufacturer ``would carry the entire burden and cost of testing.'' 
Thus, the commenter stated that USDA should consider any obligations 
that the manufacturer of the initially certified product may have to 
check the biobased content of the new product before sharing its 
certification. The commenter added that because USDA has not provided 
guidance on the conditions in which certifications may be shared, USDA 
should be ``proactive'' in doing so to address any questions that 
manufacturers will have.
    The same commenter stated appreciation for the proposed rule but 
recommended that USDA develop methods for downstream companies that use 
USDA Certified Biobased chemicals/products in their formulations. The 
commenter stated that companies that choose to blend USDA Certified 
Biobased chemicals/products in their products should be able to display 
the USDA Certified Biobased Product label.
    Response: USDA agrees with the commenter that the ``self-declare'' 
procedure should not result in a situation where one manufacturer is 
relieved of the cost of testing the biobased content of their product 
at the expense of another manufacturer without permission. The proposed 
rule language restricts the use of this provision to (1) manufacturers 
seeking certification of additional products they manufacture that have 
the same formulation as a previously certified product and (2) 
manufacturers whose products are made from certified intermediate 
ingredients in those cases where the manufacturer of the certified 
intermediate ingredient gives permission to use the test results from 
their product. It is not OPPM's intention that one manufacturer be 
allowed to use the test results from another manufacturer without the 
approval and cooperation of the party who paid for the testing. USDA 
also points out that the commenter's statement regarding ``downstream'' 
companies is addressed by USDA plans to designate for federal 
procurement those finished products that are made from designated 
intermediate ingredients and feedstock materials. USDA does not believe 
the any changes in the proposed rule language are necessary as a result 
of this comment.

E. 7 CFR 3202.8--Violations

    No comments were received on the revisions proposed for this 
section.

F. 7 CFR 3202.10--Oversight and Monitoring

    Comment: One commenter expressed support specifically for USDA's 
periodic auditing activities.
    Response: USDA appreciates the commenter's support for the auditing 
plans as described in the proposed rule.

VI. Regulatory Information

A. Executive Orders 12866 and 13563: Regulatory Planning and Review

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a ``non-significant 
regulatory action'' under section 3(f) of Executive Order 12866. 
Accordingly, the final rule was not reviewed by the Office of 
Management and Budget.
1. Need for the Rule
    This final rule amends the voluntary labeling program rules to 
establish the regulatory framework for the labeling of products that 
were previously excluded from the program because they were mature 
market products. The designation of such products is specifically 
required under the Agricultural Act of 2014, which states that the 
Guidelines shall: ``(vi) Promote biobased products, including forest 
products, that apply an innovative approach to growing, harvesting, 
sourcing, procuring, processing, manufacturing, or application of 
biobased products regardless of the date of entry into the 
marketplace.''
2. Costs, Benefits and Transfers
    This rule advances the objectives of the BioPreferred Program, as 
envisioned by Congress in the 2002, 2008 and 2014

[[Page 34035]]

Farm Bills, by expanding the scope of products that may be certified to 
display the USDA Certified Biobased Product certification mark. The 
entry into the voluntary labeling program of biobased products that 
were previously considered to be mature market products provides newly 
developed biobased products the opportunity to be publicized via the 
BioPreferred Web site. Thus, the rule is expected to increase demand 
for these products, which, in turn, is expected to increase demand for 
those agricultural products that can serve as ingredients and 
feedstocks. This expansion of the voluntary labeling program will, 
thus, yield private benefits for businesses producing these ingredients 
and feedstocks.
    Simultaneously, this action could reduce demand for competing 
products that are not eligible for the voluntary labeling program. 
Producers of biobased products, including intermediate ingredients and 
feedstocks, that are not certified for labeling or producers of non-
biobased products could face a loss of market share within both the 
public and federal agencies. USDA does not have sufficient information 
on the expected extent of this potential loss of market share to assign 
a dollar value to this impact.
    As part of the Stage 3 auditing process to be conducted during 
calendar year 2016, manufacturers of biobased products that have been 
certified for five or more years will be required to have their 
products biobased content re-tested. We estimate that the cost for 
product re-testing is about $300 to $400 per product. The labeling 
program was implemented in 2011 and only those products that were 
certified during 2011 will incur the re-testing cost of the Stage 3 
audit to be conducted during 2016. There were 1,338 applications for 
certification received during 2011 and USDA estimates that 1,000 of the 
products represented by those applications continue to display the 
label under the original certification. Thus, the total estimated cost 
of the auditing effort to all manufacturers is expected to be, at most, 
$400,000 (1,000 products x $400 per test) during 2016. Considering that 
this total cost would be spread over several hundred manufacturers 
making these products and that no additional re-testing costs are 
expected until the year 2022, USDA believes that the cost to any one 
manufacturer is reasonable.

B. Regulatory Flexibility Act (RFA)

    The RFA, 5 U.S.C. 601-602, generally requires an agency to prepare 
a regulatory flexibility analysis of any rule subject to notice and 
comment rulemaking requirements under the Administrative Procedure Act 
or any other statute unless the agency certifies that the rule will not 
have a significant economic impact on a substantial number of small 
entities. Small entities include small businesses, small organizations, 
and small governmental jurisdictions.
    Although the voluntary labeling program ultimately may have a 
direct impact on a substantial number of small entities, USDA has 
determined that this final rule itself will not have a direct 
significant economic impact on a substantial number of small entities. 
Private sector manufacturers and vendors of biobased products 
voluntarily may provide information to USDA through the means set forth 
in this rule. However, the rule imposes no requirement on manufacturers 
and vendors to do so, and does not differentiate between manufacturers 
and vendors based on size. USDA does not know how many small 
manufacturers and vendors may opt to participate in the voluntary 
labeling program. USDA anticipates that this program will positively 
impact small entities which manufacture or sell biobased products by 
allowing them to display the certification mark and to list their 
products in the BioPreferred Program Web site catalog. However, this 
program may decrease opportunities for small businesses that 
manufacture or sell non-biobased products or provide components for the 
manufacturing of such products. It is, however, not possible for USDA 
to definitively assess these anticipated impacts on small entities.

C. Executive Order 12630: Governmental Actions and Interference With 
Constitutionally Protected Property Rights

    This final rule has been reviewed in accordance with Executive 
Order 12630, Governmental Actions and Interference with 
Constitutionally Protected Property Rights, and does not contain 
policies that have implications for these rights.

D. Executive Order 12988: Civil Justice Reform

    This final rule has been reviewed in accordance with Executive 
Order 12988, Civil Justice Reform. This rule does not preempt State or 
local laws, is not intended to have retroactive effect, and does not 
involve administrative appeals.

E. Executive Order 13132: Federalism

    This final rule does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment. The provisions of 
this rule do not have a substantial direct effect on States or their 
political subdivisions or on the distribution of power and 
responsibilities among the various government levels.

F. Unfunded Mandates Reform Act of 1995

    This final rule contains no federal mandates under the regulatory 
provisions of Title II of the Unfunded Mandates Reform Act of 1995 
(UMRA), 2 U.S.C. 1531-1538, for State, local, and tribal governments, 
or the private sector. Therefore, a statement under section 202 of UMRA 
is not required.

G. Executive Order 12372: Intergovernmental Review of Federal Programs

    For the reasons set forth in the Final Rule Related Notice for 7 
CFR part 3015, subpart V (48 FR 29115, June 24, 1983), this program is 
excluded from the scope of the Executive Order 12372, which requires 
intergovernmental consultation with State and local officials. This 
program does not directly affect State and local governments.

H. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This final rule has been reviewed in accordance with the 
requirements of Executive Order 13175, Consultation and Coordination 
with Indian Tribal Governments. The review reveals that this final rule 
will not have substantial and direct effects on Tribal governments and 
will not have significant Tribal implications.

I. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 through 3520), the information collection under the voluntary 
labeling program is currently approved under OMB control number 0503-
0020.

J. E-Government Act Compliance

    USDA is committed to compliance with the E-Government Act, which 
requires Government agencies, in general, to provide the public the 
option of submitting information or transacting business electronically 
to the maximum extent possible. USDA is implementing an electronic 
information system for posting information voluntarily submitted by 
manufacturers or vendors on the products they intend to offer for 
federal preferred procurement under each designated item. For 
information pertinent to E-Government Act compliance related to this 
rule, please contact Ron Buckhalt at (202) 205-4008.

[[Page 34036]]

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, that includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. USDA has submitted a report containing this rule and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register.

List of Subjects in 7 CFR Part 3202

    Biobased products, Procurement.
    For the reasons stated in the preamble, the Department of 
Agriculture is amending 7 CFR part 3202 as follows:

PART 3202--VOLUNTARY LABELING PROGRAM FOR BIOBASED PRODUCTS

0
1. The authority citation for part 3202 continues to read as follows:

    Authority:  7 U.S.C. 8102.


0
2. In Sec.  3202.2:
0
a. Revise the definition of ``Biobased product'';
0
b. Remove the definition of ``BioPreferred Product'';
0
c. Revise the definition of ``Certification mark artwork'';
0
d. Remove the definition of ``Designated item'';
0
e. Add in alphabetical order definitions of ``Designated product 
category'' and ``Forest product'';
0
f. Remove the definition of ``Intermediate ingredients or feedstocks'';
0
g. Add in alphabetical order a definition of ``Intermediate ingredient 
or feedstock'';
0
h. Remove the definition of ``Mature market products''; and
0
i. Add in alphabetical order definitions of Qualified biobased 
product'' and ``Renewable chemical''.
    The revisions and additions read as follows:


Sec.  3202.2  Definitions.

* * * * *
    Biobased product. (1) A product determined by USDA to be a 
commercial or industrial product (other than food or feed) that is:
    (i) Composed, in whole or in significant part, of biological 
products, including renewable domestic agricultural materials and 
forestry materials; or
    (ii) An intermediate ingredient or feedstock.
    (2) The term ``biobased product'' includes, with respect to 
forestry materials, forest products that meet biobased content 
requirements, notwithstanding the market share the product holds, the 
age of the product, or whether the market for the product is new or 
emerging.
* * * * *
    Certification mark artwork. The distinctive image, as shown in 
Figures 1-3, that identifies products as USDA Certified.

[[Page 34037]]

[GRAPHIC] [TIFF OMITTED] TR15JN15.000

    Designated product category. A generic grouping of biobased 
products, including those final products made from designated 
intermediate ingredients or feedstocks, or complex assemblies 
identified in subpart B of 7

[[Page 34038]]

CFR part 3201, that is eligible for the procurement preference 
established under section 9002 of FSRIA.
* * * * *
    Forest product. A product made from materials derived from the 
practice of forestry or the management of growing timber. The term 
``forest product'' includes:
    (1) Pulp, paper, paperboard, pellets, lumber, and other wood 
products; and
    (2) Any recycled products derived from forest materials.
* * * * *
    Intermediate ingredient or feedstock. A material or compound made 
in whole or in significant part from biological products, including 
renewable agricultural materials (including plant, animal, and marine 
materials) or forestry materials that have undergone value added 
processing (including thermal, chemical, biological, or a significant 
amount of mechanical processing), excluding harvesting operations, 
offered for sale by a manufacturer or vendor and that is subsequently 
used to make a more complex compound or product.
* * * * *
    Qualified biobased product. A product that is eligible for federal 
preferred procurement because it meets the definition and minimum 
biobased content criteria for one or more designated product 
categories, or one or more designated intermediate ingredient or 
feedstock categories, as specified in subpart B of 7 CFR part 3201.
    Renewable chemical. A monomer, polymer, plastic, formulated 
product, or chemical substance produced from renewable biomass.
* * * * *

0
3. Section 3202.4 is amended by revising the introductory text and the 
headings for paragraphs (b)(1) and (2) and adding paragraphs (b)(4) and 
(c) to read as follows:


Sec.  3202.4  Criteria for product eligibility to use the certification 
mark.

    A product must meet each of the criteria specified in paragraphs 
(a) through (c) of this section in order to be eligible to receive 
biobased product certification.
* * * * *
    (b) * * *
    (1) Qualified Biobased Products. * * *
    (2) Finished biobased products that are not Qualified Biobased 
Products. * * *
* * * * *
    (4) Finished products that are complex assemblies. (i) If the 
product is a complex assembly, as defined in subpart A of 7 CFR part 
3201, that is not eligible for federal preferred procurement at the 
time the application for certification is submitted, the applicable 
minimum biobased content is 25 percent. The biobased content shall be 
determined using the procedures specified in Sec.  3201.7(c)(3) of this 
chapter. Manufacturers, vendors, groups of manufacturers and/or 
vendors, and trade associations may propose an alternative applicable 
minimum biobased content for the product by developing, in consultation 
with USDA, and conducting an analysis to support the proposed 
alternative applicable minimum biobased content. If approved by USDA, 
the proposed alternative applicable minimum biobased content would 
become the applicable minimum biobased content for the complex assembly 
to be labeled.
    (ii) If a product certified under paragraph (b)(4)(i) of this 
section is within a category that USDA subsequently designates for 
federal preferred procurement, the applicable minimum biobased content 
shall become, as of the effective date of the final designation rule, 
the minimum biobased content specified for the item as found in subpart 
B of 7 CFR part 3201.
    (c) Innovative approach. In determining eligibility for 
certification under the BioPreferred Program, USDA will consider as 
eligible only those products that use innovative approaches in the 
growing, harvesting, sourcing, procuring, processing, manufacturing, or 
application of the biobased product. USDA will consider products that 
meet one or more of the criteria in paragraphs (c)(1) through (4) of 
this section to be eligible for certification. USDA will also consider 
other documentation of innovative approaches in the growing, 
harvesting, sourcing, procuring, processing, manufacturing, or 
application of biobased products on a case by case basis. USDA may deny 
certification for any products whose manufacturers are unable to 
provide USDA with the documentation necessary to verify claims that 
innovative approaches are used in the growing, harvesting, sourcing, 
procuring, processing, manufacturing, or application of their biobased 
products.
    (1) Product applications. (i) The biobased product or material is 
used or applied in applications that differ from historical 
applications; or
    (ii) The biobased product or material is grown, harvested, 
manufactured, processed, sourced, or applied in other innovative ways; 
or
    (iii) The biobased content of the product or material makes its 
composition different from products or material used for the same 
historical uses or applications.
    (2) Manufacturing and processing. (i) The biobased product or 
material is manufactured or processed using renewable, biomass energy 
or using technology that is demonstrated to increase energy efficiency 
or reduce reliance on fossil-fuel based energy sources; or
    (ii) The biobased product or material is manufactured or processed 
with technologies that ensure high feedstock material recovery and use.
    (3) Environmental Product Declaration. The product has a current 
Environmental Product Declaration as defined by International Standard 
ISO 14025, Environmental Labels and Declarations--Type III 
Environmental Declarations--Principles and Procedures.
    (4) Raw material sourcing. (i) The raw material used in the product 
is sourced from a Legal Source, a Responsible Source, or a Certified 
Source as designated by ASTM D7612--10, Standard Practice for 
Categorizing Wood and Wood-Based Products According to Their Fiber 
Sources; or
    (ii) The raw material used in the product is 100% resourced or 
recycled (such as material obtained from building deconstruction); or
    (iii) The raw material used in the product is from an urban 
environment and is acquired as a result of activities related to a 
natural disaster, land clearing, right-of-way maintenance, tree health 
improvement, or public safety.

0
4. Section 3202.5 is amended by:
0
a. Revising paragraph (a)(1);
0
b. Adding a sentence to the end of paragraph (c) introductory text;
0
c. Adding paragraph (c)(5);
0
d. Revising paragraph (d)(1); and
0
e. Adding paragraphs (d)(2)(iv) and (v).
    The revisions and additions read as follows:


Sec.  3202.5  Initial approval process.

    (a) * * *
    (1) General content. The applicant must provide contact information 
and product information including all brand names or other identifying 
information, intended uses of the product, information to document that 
one or more of the innovative approach criteria specified in section 
3202.4(c) has been met, and, if applicable, the corresponding product 
category classification for federal preferred procurement. The 
applicant must also provide a sample of the product to be

[[Page 34039]]

analyzed by a third-party, ISO 9001 conformant, testing entity for 
determination of the biobased content. In situations where a new 
product for which certification is sought is composed of the same 
biobased ingredients and has the same biobased content as a product 
that has already been certified, the manufacturer may, in lieu of 
having the new product tested, self-declare the biobased content of the 
new product by referencing the tested biobased content of the original 
certified product. Certification of the original product must have been 
obtained by either the manufacturer of the new product or by the 
supplier of the biobased ingredients used in the new product.
    (c) * * * Paragraph (c)(5) of this section presents the procedures 
for revising the information provided under paragraphs (c)(1) through 
(4) of this section after a notice of certification has been issued.
* * * * *
    (5) If at any time, during the application process or after a 
product has been certified, any of the information specified in 
paragraphs (c)(1) through (4) of this section changes, the applicant 
must notify USDA of the change within 30 days. Such notification must 
be provided in writing to USDA.
    (d) * * *
    (1) The effective date of certification is the date on which the 
applicant receives a notice of certification from USDA. Except as 
specified in paragraphs (d)(2)(i) through (d)(2)(v) of this section, 
certifications will remain in effect as long as the product is 
manufactured and marketed in accordance with the approved application 
and the requirements of this subpart.
    (2) * * *
    (iv) All certifications are subject to USDA periodic auditing 
activities, as described in Sec.  3202.10(d). If a manufacturer or 
vendor of a certified biobased product fails to participate in such 
audit activities or if such audit activities reveal biobased content 
violations, as specified in Sec.  3202.8(b)(1), the certification will 
be subject to suspension and revocation according to the procedures 
specified in Sec.  3202.8(c).
    (v) If USDA discovers that a certification has been issued for an 
ineligible biobased product as a result of errors on the part of USDA 
during the approval process, USDA will notify the product's 
manufacturer or vendor in writing that the certification is revoked 
effective 30 days from the date of the notice.

0
5. Section 3202.8 is amended by revising paragraph (c)(3) to read as 
follows:


Sec.  3202.8  Violations.

* * * * *
    (c) * * *
    (3) Other remedies. In addition to the suspension or revocation of 
the certification to use the label, depending on the nature of the 
violation, USDA may pursue suspension or debarment of the entities 
involved in accordance with 2 CFR part 417 and 48 CFR subpart 9.4. USDA 
further reserves the right to pursue any other remedies available by 
law, including any civil or criminal remedies, against any entity that 
violates the provisions of this part.

0
6. Section 3202.10 is amended by adding paragraph (d) to read as 
follows:


Sec.  3202.10  Oversight and monitoring.

* * * * *
    (d) Audits. USDA expects to conduct audits of the voluntary 
labeling program on an ongoing basis with audit activities conducted 
every other calendar year (bi-annually). Audit activities will include 
three stages and will be conducted in sequential order as follows:
    (1) Stage 1 auditing includes contacting all participants via email 
and requesting that they complete a ``Declaration of Conformance 
Form.'' Program participants are asked to confirm that they still 
manufacture the product and that the formulation and manufacturing 
processes remain the same. Participants are also asked to list all 
active products and advise the USDA of any complaints regarding the 
claim of the biobased content. The first Stage 1 auditing activity was 
completed in 2012 and the second Stage 1 audit will be conducted in 
2018.
    (2) Stage 2 auditing consists of a random sampling of certified 
products to confirm the accuracy of biobased content percentages 
claimed. The participants whose products are selected will be required 
to submit product samples to be tested by independent testing labs at 
USDA expense. The first Stage 2 auditing activity began in 2014 and is 
scheduled to be completed during 2015 and the second Stage 2 audit will 
be conducted in 2020.
    (3) Stage 3 auditing requires manufacturers of products that have 
been certified for 5 years or more to have their products re-tested at 
their expense to confirm that the biobased content remains at or above 
the level at which the product was originally certified. The first 
Stage 3 auditing activity is scheduled to be completed during 2016 and 
the second Stage 3 audit will be conducted in 2022.

    Dated: June 5, 2015.
Gregory L. Parham,
Assistant Secretary for Administration, U.S. Department of Agriculture.
[FR Doc. 2015-14417 Filed 6-12-15; 8:45 am]
 BILLING CODE 3410-TX-P



                                                  34030               Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations

                                                  used in the growing, harvesting,                        public health benefits of the designated                 D. Executive Order 12988: Civil Justice
                                                  sourcing, procuring, processing,                        product categories and designated                           Reform
                                                  manufacturing, or application of their                  intermediate ingredient or feedstock                     E. Executive Order 13132: Federalism
                                                                                                                                                                   F. Unfunded Mandates Reform Act of 1995
                                                  biobased products.                                      categories. * * *
                                                                                                                                                                   G. Executive Order 12372:
                                                     (i) Product applications. (A) The                    *    *      *   *      *                                    Intergovernmental Review of Federal
                                                  biobased product or material is used or                                                                             Programs
                                                                                                            Dated: June 5, 2015.
                                                  applied in applications that differ from                                                                         H. Executive Order 13175: Consultation
                                                                                                          Gregory L. Parham,
                                                  historical applications; or                                                                                         and Coordination With Indian Tribal
                                                     (B) The biobased product or material                 Assistant Secretary for Administration, U.S.                Governments
                                                  is grown, harvested, manufactured,                      Department of Agriculture.                               I. Paperwork Reduction Act
                                                  processed, sourced, or applied in other                 [FR Doc. 2015–14418 Filed 6–12–15; 8:45 am]              J. E-Government Act Compliance
                                                  innovative ways; or                                     BILLING CODE 3410–TX–P                                   K. Congressional Review Act
                                                     (C) The biobased content of the                                                                             I. Executive Summary
                                                  product or material makes its
                                                                                                          DEPARTMENT OF AGRICULTURE                                 USDA is amending 7 CFR part 3202
                                                  composition different from products or
                                                                                                                                                                 to incorporate the statutory changes to
                                                  material used for the same historical
                                                                                                          Office of Procurement and Property                     section 9002 of the Farm Security and
                                                  uses or applications.
                                                     (ii) Manufacturing and processing. (A)               Management                                             Rural Investment Act made by
                                                                                                                                                                 enactment of the Agricultural Act of
                                                  The biobased product or material is
                                                                                                          7 CFR Part 3202                                        2014 on February 7, 2014. USDA is also
                                                  manufactured or processed using
                                                                                                                                                                 finalizing amendments that clarify the
                                                  renewable, biomass energy or using                      RIN 0599–AA22
                                                                                                                                                                 rules under which the voluntary
                                                  technology that is demonstrated to
                                                                                                          Voluntary Labeling Program for                         labeling program operates. The
                                                  increase energy efficiency or reduce
                                                                                                          Biobased Products                                      remainder of this section presents a
                                                  reliance on fossil-fuel based energy
                                                                                                                                                                 brief summary of the amendments to the
                                                  sources; or                                             AGENCY:  Office of Procurement and
                                                     (B) The biobased product or material                                                                        existing voluntary labeling program
                                                                                                          Property Management, USDA.                             rules and Section IV of this preamble
                                                  is manufactured or processed with
                                                                                                          ACTION: Final rule.                                    presents more detailed discussions.
                                                  technologies that ensure high feedstock
                                                  material recovery and use.                              SUMMARY:   The U.S. Department of                      A. Summary of Major Provisions of the
                                                     (iii) Environmental Product                          Agriculture (USDA) is amending its                     Final Rule
                                                  Declaration. The product has a current                  regulations concerning the Voluntary
                                                  Environmental Product Declaration as                                                                           1. Revisions to Section 3202.2
                                                                                                          Labeling Program for Biobased Products,
                                                  defined by International Standard ISO                                                                          ‘‘Definitions’’
                                                                                                          to incorporate statutory changes to
                                                  14025, Environmental Labels and                         section 9002 of the Farm Security and                     USDA is amending 7 CFR 3202.2 by
                                                  Declarations—Type III Environmental                     Rural Investment Act (the 2002 Farm                    deleting the definitions of ‘‘BioPreferred
                                                  Declarations—Principles and                             Bill) that went into effect when the                   Product,’’ ‘‘Designated item,’’ and
                                                  Procedures.                                             Agricultural Act of 2014 (the 2014 Farm                ‘‘Mature market products.’’ USDA is
                                                     (iv) Raw material sourcing. (A) The                  Bill) was signed into law on February 7,               also revising the definitions of
                                                  raw material used in the product is                     2014.                                                  ‘‘Biobased product,’’ ‘‘Certification mark
                                                  sourced from a Legal Source, a                          DATES: This rule is effective July 15,                 artwork,’’ and ‘‘Intermediate ingredient
                                                  Responsible Source, or a Certified                      2015.                                                  or feedstock’’ and adding new
                                                  Source as designated by ASTM D7612–                                                                            definitions for ‘‘Designated product
                                                                                                          FOR FURTHER INFORMATION CONTACT: Ron
                                                  10, Standard Practice for Categorizing                                                                         category,’’ ‘‘Forest product,’’ ‘‘Qualified
                                                  Wood and Wood-Based Products                            Buckhalt, USDA, Office of Procurement                  biobased product,’’ and ‘‘Renewable
                                                  According to Their Fiber Sources; or                    and Property Management, Room 361,                     chemical.’’ These changes are being
                                                     (B) The raw material used in the                     Reporters Building, 300 7th St. SW.,                   made to bring the voluntary labeling
                                                  product is 100% resourced or recycled                   Washington, DC 20024; email:                           rule up to date with the BioPreferred
                                                  (such as material obtained from building                BioPreferred_Support@amecfw.com;                       Program Guidelines and the 2014 Farm
                                                  deconstruction); or                                     phone (202) 205–4008. Information                      Bill.
                                                     (C) The raw material used in the                     regarding the Voluntary Labeling
                                                  product is from an urban environment                    Program for Biobased Products (one part                2. Revisions to Section 3202.4 ‘‘Criteria
                                                  and is acquired as a result of activities               of the BioPreferred® Program) is                       for Product Eligibility To Use the
                                                  related to a natural disaster, land                     available on the Internet at http://                   Certification Mark’’
                                                  clearing, right-of-way maintenance, tree                www.biopreferred.gov.                                     USDA is adding a paragraph and
                                                  health improvement, or public safety.                   SUPPLEMENTARY INFORMATION: The                         subparagraphs to section 3202.4 that
                                                  *       *    *     *    *                               information presented in this preamble                 describe the biobased content criteria
                                                  ■ 5. Section 3201.6 is amended by                       is organized as follows:                               for complex assemblies. Procedures for
                                                  revising the first sentence of paragraph                I. Executive Summary                                   designating complex assemblies for the
                                                  (a)(1) to read as follows:                              II. Authority                                          federal preferred procurement initiative
                                                                                                          III. Background                                        have been added to the BioPreferred
                                                  § 3201.6 Providing product information to               IV. Summary of Changes                                 Program Guidelines and this final rule
wreier-aviles on DSK5TPTVN1PROD with RULES




                                                  Federal agencies.                                       V. Discussion of Public Comments                       updates the voluntary labeling program
                                                    (a) * * *                                             VI. Regulatory Information                             rules to include these products.
                                                    (1) * * * The Web site will, as                          A. Executive Orders 12866 and 13563:                   USDA is also adding paragraphs to
                                                  determined to be necessary by the                             Regulatory Planning and Review                   section 3202.4 to present the criteria for
                                                                                                             B. Regulatory Flexibility Act (RFA)
                                                  Secretary based on the availability of                     C. Executive Order 12630: Governmental              evaluating whether products use
                                                  data, provide information as to the                           Actions and Interference With                    ‘‘innovative approaches.’’ The
                                                  availability, price, biobased content,                        Constitutionally Protected Property              Conference Report on the 2014 Farm
                                                  performance and environmental and                             Rights                                           Bill states that ‘‘It is the Managers’


                                             VerDate Sep<11>2014   15:17 Jun 12, 2015   Jkt 235001   PO 00000   Frm 00008   Fmt 4700   Sfmt 4700   E:\FR\FM\15JNR1.SGM   15JNR1


                                                                         Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations                                                 34031

                                                  intention that all products in the                          wishing to change the name of their                       conducted every other calendar year (bi-
                                                  program use innovative approaches in                        company or the name of a certified                        annually). Audit activities will include
                                                  the growing, harvesting, sourcing,                          product must notify USDA in writing                       three stages and will be conducted in
                                                  procuring, processing, manufacturing,                       within 30 days of making such changes.                    sequential order. Stage 1 was conducted
                                                  or application of the biobased product.’’                     USDA is also amending paragraph                         in 2012, Stage 2 will be conducted in
                                                  USDA is, therefore, adopting criteria to                    (d)(2) to clarify that, although                          2014, and Stage 3 will be conducted in
                                                  be used when evaluating whether                             certifications do not have a                              2016. In 2018, the sequence will start
                                                  biobased products meet the requirement                      predetermined expiration date, they are                   over with Stage 1.
                                                  to use ‘‘innovative approaches.’’                           subject to mandatory periodic auditing
                                                                                                                                                                           Stage 1 auditing includes contacting
                                                                                                              activities and to suspension or
                                                  3. Revisions to Section 3202.5 ‘‘Initial                                                                              all participants via email and requesting
                                                                                                              revocation if biobased content violations
                                                  Approval Process’’                                                                                                    that they complete a ‘‘Declaration of
                                                                                                              are identified. USDA is amending this
                                                     USDA is amending paragraph (a)(1) to                     paragraph to allow for the revocation of                  Conformance Form.’’ Program
                                                  specifically address situations where a                     a certification if it is discovered that                  participants are asked to confirm that
                                                  manufacturer seeks certification for a                      certification was issued as a result of                   they still manufacture the product and
                                                  new product that is composed of the                         error(s) on the part of USDA during the                   that the formulation and manufacturing
                                                  same biobased ingredients and has the                       approval process.                                         processes remain the same.
                                                  same biobased content as a previously                                                                                    Stage 2 auditing consists of a random
                                                  certified product. In these cases, where                    4. Revisions to Section 3202.8
                                                                                                                                                                        sampling of certified products to
                                                  a new product for which certification is                    ‘‘Violations’’
                                                                                                                                                                        confirm the accuracy of biobased
                                                  sought is composed of the same                                 USDA is amending paragraph                             content percentages claimed. The
                                                  biobased ingredients and has the same                       3202.8(c)(3) to correct an error in a                     participants whose products are
                                                  biobased content as a product that has                      reference cited in the paragraph. The                     selected will be required to submit
                                                  already been certified, the manufacturer                    reference to 7 CFR part 3017 is                           product samples to be tested by
                                                  may, in lieu of having the new product                      incorrect. The appropriate references are                 independent testing labs at USDA
                                                  tested, self-declare the biobased content                   2 CFR part 417 and 48 CFR subpart 9.4.                    expense.
                                                  of the new product by referencing the
                                                  tested biobased content of the certified                    5. Revisions to Section 3202.10                              Stage 3 auditing requires
                                                  product. Certification of the original                      ‘‘Oversight and Monitoring’’                              manufacturers of products that have
                                                  product must have been obtained by                             USDA is adding a new section                           been certified for 5 years or more to
                                                  either the manufacturer of the new                          3202.10(d) that identifies three auditing                 have their products re-tested at their
                                                  product or by the supplier of the                           efforts that will be ongoing for the                      expense to confirm that the biobased
                                                  biobased ingredients used in the new                        voluntary labeling program. The 2014                      content remains at or above the level at
                                                  product. This provision will result in                      Farm Bill contained specific language                     which the product was originally
                                                  reduced biobased content testing, and                       authorizing USDA to perform auditing                      certified.
                                                  thus a cost savings, for manufacturers                      and compliance activities necessary to                       USDA believes that the audit program
                                                  who use the same biobased ingredients                       ensure that the label is used only on                     outlined above will be a valuable tool in
                                                  to formulate products that differ in size                   products that meet the established                        ensuring the integrity of the program
                                                  or shape or that are marketed for                           eligibility criteria.                                     and compliance with the voluntary
                                                  different applications.                                        USDA expects to conduct audits of                      labeling program rules.
                                                     USDA is also amending paragraph                          the voluntary labeling program on an
                                                  (c)(5) to state that manufacturers                          ongoing basis with audit activities                       B. Costs, Benefits, and Transfers

                                                           Type                                   Costs                                           Benefits                                    Transfers

                                                  Quantitative ............    Unable to quantify at this time ..............   Unable to quantify at this time ..............   Unable to quantify at this time.
                                                  Qualitative ..............   1. Costs of developing biobased alter-           Advances the objectives of the BioPre-           1. Opens new (federal) market for
                                                                                 native products;                                 ferred Program, as envisioned by                 biobased products that USDA newly
                                                                               2. Costs to gather and submit                      Congress in developing the 2002,                 designates.
                                                                                 biobased product information for Bio-            2008, and 2014 Farm Bills.                     2. Opportunity for newly developed
                                                                                 Preferred Web site;                                                                               biobased products to be publicized
                                                                                                                                                                                   via BioPreferred Web site.
                                                                                                                                                                                 3. Loss of market share by manufac-
                                                                                                                                                                                   turers who choose not to offer
                                                                                                                                                                                   biobased versions of products.



                                                  II. Authority                                               and the 2014 Farm Bills, is referred to                   contractors are required to purchase
                                                                                                              in this document as ‘‘section 9002’’).                    biobased products, as defined in
                                                    The Voluntary Labeling Program for                                                                                  regulations implementing the statute,
                                                  Biobased Products was established                           III. Background
                                                                                                                                                                        that are within designated product
                                                  under the authority of section 9002 of                         Section 9002 establishes a program for                 categories when the cumulative
                                                  the Farm Security and Rural Investment
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                                                                                                              preferred procurement of biobased                         purchase price of the products to be
                                                  Act of 2002 (the 2002 Farm Bill), as                        products by federal agencies and a                        procured is more than $10,000 or when
                                                  amended by the Food, Conservation,                          voluntary program for the labeling of
                                                                                                                                                                        the quantities of functionally equivalent
                                                  and Energy Act of 2008 (the 2008 Farm                       biobased products. These two programs
                                                  Bill), and further amended by the                                                                                     items purchased over the preceding
                                                                                                              are referred to collectively by USDA as
                                                                                                                                                                        fiscal year equaled $10,000 or more. The
                                                  Agricultural Act of 2014 (the 2014 Farm                     the BioPreferred® program.
                                                  Bill), 7 U.S.C. 8102. (Section 9002 of the                     Under the preferred procurement                        final rules under which the preferred
                                                  2002 Farm Bill, as amended by the 2008                      program, federal agencies and their                       procurement program operates are



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                                                  34032               Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations

                                                  found at 7 CFR part 3201, ‘‘Guidelines                  to the Voluntary Labeling Program                      A. General Comments on BioPreferred
                                                  for Designating Biobased Products for                   regulations, USDA has made changes in                  Program
                                                  Federal Procurement.’’ In a separate                    finalizing the amendments. These                          Comment: One commenter expressed
                                                  rulemaking, the provisions of the                       changes are summarized in the                          concern that the proposed amendments
                                                  Guidelines are being amended to reflect                 remainder of this section. A summary of                to the Voluntary Labeling Program will
                                                  the provisions of the 2014 Farm Bill.                   each comment received, USDA’s                          ‘‘reduce consumer protection.’’ The
                                                     The final rules for the voluntary                    response to the comment or group of                    commenter did not specify which part
                                                  labeling program, under which USDA                      related comments, and the rationale for                of the proposed amendments she was
                                                  authorizes manufacturers and vendors                    any change made in the final rule is
                                                  of biobased products to use a ‘‘USDA                                                                           referring to but stated that she expects
                                                                                                          presented in section V.                                the government to inform and protect
                                                  Certified Biobased Product’’ label
                                                  (hereafter referred to in this preamble as              A. 7 CFR 3202.2—Definitions                            her and not to create an easier process
                                                  ‘‘the certification mark’’), are found at 7                                                                    for ‘‘controversial production activities
                                                  CFR part 3202. The voluntary labeling                     USDA is finalizing the proposed                      including ongoing use and further
                                                  program is intended to encourage the                    definitions with no changes.                           development of GMO’s.’’
                                                  purchase and use of biobased products                                                                             Response: USDA appreciates the
                                                                                                          B. 7 CFR 3202.4—Criteria for Product                   commenter’s interest in the BioPreferred
                                                  by reaching beyond the federal                          Eligibility To Use the Certification Mark
                                                  purchasing community and promoting                                                                             Program but disagrees with the idea that
                                                  the purchase of biobased products by                       USDA revised the proposed language                  the proposed amendments might reduce
                                                  commercial entities and the general                     in paragraph (c)(2) to add the word                    consumer protection. The purpose of
                                                  public. In establishing this program,                   ‘‘biobased’’ to the description of                     the voluntary labeling program is to
                                                  USDA identified the criteria to                         products or materials that qualify under               inform the consumer regarding the
                                                  determine those products on which the                   criterion 1 and also added a paragraph                 biobased content of certified products.
                                                  certification mark may be used and                      (iii) stating that products meet the                   USDA does not make or specifically
                                                  developed specific requirements for                     criteria if the biobased content of the                endorse any claims of performance nor
                                                  how the mark can be used. It is USDA’s                  product or material makes its                          consumer protection or risks. The
                                                  intent that the presence of the                         composition different from products or                 BioPreferred Program also does not
                                                  certification mark on a product will                    material used for the same historical                  evaluate or investigate the use of
                                                  mean that the labeled product is one for                uses or applications.                                  genetically modified organisms (GMOs)
                                                  which credible factual information is                                                                          and the use of such materials is neither
                                                                                                             In the final rule, USDA added a                     defended nor endorsed by the Program.
                                                  available as to the biobased content,                   sentence at 3202.4(c)(4) to clarify that
                                                  consistently measured across labeled                                                                              Comment: Another commenter
                                                                                                          evidence of an innovative approach will                recommended including in the
                                                  products by use of the American Society                 not be restricted to only those
                                                  of Testing and Materials (ASTM)                                                                                Voluntary Labeling Program biochar and
                                                                                                          innovative criteria listed in the                      the process used to produce this
                                                  radioisotope test D6866.                                Guidelines and that consideration of
                                                     On July 31, 2009, USDA published a                                                                          material. The commenter described
                                                                                                          other evidence will be on a case-by-case               briefly what biochar is and how it may
                                                  proposed rule for the voluntary labeling
                                                                                                          basis.                                                 be produced. In addition, the
                                                  program under the authority of section
                                                  9002 (74 FR 38296–01). The voluntary                    C. 7 CFR 3202.5—Initial Approval                       commenter provided USDA with a
                                                  labeling program final rule was                         Process                                                research paper that may provide
                                                  promulgated on January 20, 2011 (76 FR                                                                         background information on this
                                                  3790–01).                                                 This section has been finalized as                   material.
                                                     On February 7, 2014, the 2014 Farm                   proposed.                                                 Response: USDA agrees with the
                                                  Bill was signed into law and included                                                                          commenter and notes that a biochar
                                                                                                          D. 7 CFR 3202.8—Violations
                                                  several provisions that amended the                                                                            product has already been certified to
                                                  provisions of section 9002. The primary                   This section has been finalized as                   display the label. No change to the
                                                  purpose of these rule amendments is to                  proposed.                                              proposed rule language is required in
                                                  revise the voluntary labeling program                                                                          response to this comment.
                                                  final rule to incorporate changes to                    E. 7 CFR 3202.10—Oversight and
                                                                                                          Monitoring                                             B. 7 CFR 3202.2—Definitions
                                                  section 9002 that were included in the
                                                  2014 Farm Bill. USDA is also finalizing                                                                           Comment: One commenter stated
                                                                                                            This section has been finalized as                   their agreement with USDA’s proposed
                                                  certain clarifying amendments to the
                                                                                                          proposed.                                              definitions for ‘‘Biobased product,’’
                                                  program rules based on several years of
                                                  operating experience. These                             V. Discussion of Public Comments                       ‘‘Certification mark artwork,’’ and
                                                  amendments will not affect the status of                                                                       ‘‘Forest product’’ and none of the
                                                  products that have already been                           USDA solicited comments on the                       commenters provided adverse
                                                  certified by USDA to display the                        proposed amendments for 60 days                        comments.
                                                  certification mark. However, when Stage                 ending on December 26, 2014. USDA                         Response: USDA appreciates the
                                                  3 of the auditing program (7 CFR part                   received eight comments by that date.                  support of the commenters.
                                                  3202, section 3202.10) is conducted in                  One of the comments was from an
                                                                                                          individual citizen, five were from                     C. 7 CFR 3202.4—Criteria for Product
                                                  2016, manufacturers whose product                                                                              Eligibility To Use the Certification Mark
                                                                                                          industry trade groups, one was from an
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                                                  certification is at least 5 years old will
                                                  incur additional costs of about $400 per                academic institution, and one was from                   Comment: One commenter believed
                                                  certified product for biobased content                  a biobased product manufacturer. The                   that a ‘‘federal preference program’’
                                                  re-testing.                                             comments are presented below, along                    should not endorse products on the
                                                                                                          with USDA’s responses, and are                         grounds that they contain biobased
                                                  IV. Summary of Changes                                  grouped by the Code of Federal                         ingredients and that they are ‘‘new and
                                                    As a result of public comments                        Regulation (CFR) section numbers to                    different’’ from the way products were
                                                  received on the proposed amendments                     which they apply.                                      manufactured historically instead of


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                                                                      Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations                                          34033

                                                  considering whether the products are                    meet or exceed the default 25%                         processing criteria should be revised to
                                                  better for the environment and human                    minimum biobased content requirement                   specifically include processes that ‘‘add
                                                  health, or perform better than those that               to receive certification to display the                biobased content.’’ Many biobased
                                                  are currently available.                                USDA Certified Biobased Product label.                 products are made by replacing
                                                     Response: While USDA understands                     The commenter stated that companies                    petroleum-based components of
                                                  the commenter’s position, the statutory                 and stakeholders will need assistance                  traditional products with biobased
                                                  requirements of the 2002 Farm Bill, as                  from USDA to determine appropriate                     components, which could be
                                                  amended in the 2008 and 2014 Farm                       eligibility conditions to ‘‘support a                  characterized as adding biobased
                                                  Bills, mandate that the BioPreferred                    proposed alternative applicable                        content, and these products would be
                                                  Program promote and give a preference                   minimum biobased content.’’                            covered by criterion (i)(C) in the
                                                  to the purchase of biobased products,                      Response: USDA appreciates the                      commenter’s edited paragraphs. Thus,
                                                  particularly those using ‘‘innovative                   support expressed by the commenter                     there would be no benefit to adding a
                                                  approaches.’’ USDA does not have the                    regarding the labeling of complex                      third item to the manufacturing and
                                                  authority nor the resources to evaluate                 assemblies and agrees that additional                  processing criterion.
                                                  the life cycle environmental and human                  guidance for applicants would be
                                                  health impacts of biobased products                                                                            3. 7 CFR 3202.4(c)(3)—Environmental
                                                                                                          beneficial. As the labeling of complex                 Product Declaration
                                                  compared to those of traditional                        assemblies is initiated, USDA will
                                                  petroleum based products. USDA does                     prepare training materials that will be                   Comment: One commenter was
                                                  present manufacturer-supplied                           provided to applicants. USDA routinely                 concerned that the proposed criterion
                                                  information regarding the performance                   provides training and guidance                         for an Environmental Product
                                                  of products in cases where the                          materials to applicants seeking to certify             Declaration (EPD) would ‘‘expand the
                                                  manufacturer provides such                              their products and will expand the                     reach’’ of the BioPreferred Program
                                                  information. However, as with life cycle                coverage of such materials as the                      ‘‘beyond what was originally intended.’’
                                                  impacts, USDA does not have the                         BioPreferred Program expands. No                       This commenter added that the EPD
                                                  statutory authority or the resources to                 revisions to the proposed rule language                should merely supplement the product’s
                                                  independently investigate the                           are expected as a result of this comment.              participation in the BioPreferred
                                                  performance of products that participate                                                                       Program, instead of being a requirement
                                                  in the Program.                                         2. 7 CFR 3202.4(c)—Innovative                          for it.
                                                     Comment: One commenter asked                         Approach                                                  A second commenter provided USDA
                                                  USDA whether this proposed rule                            Comment: One commenter expressed                    with two examples of a Type III EPD
                                                  would be applied in a ‘‘multi-plant                     concern that § 3202.4(c) was written                   and noted that the EPD requires a
                                                  manufacturing scenario’’: Would it be                   specifically for forestry products, which              product to meet ‘‘Product Category
                                                  applied at the product or at the                        may cause issues for non-forestry                      Rules.’’ The commenter pointed out that
                                                  manufacturing plant level, and would                    products. The commenter suggested                      this information ‘‘may or may not be
                                                  one plant’s compliance be sufficient for                clarifying the first paragraph in                      available and would require time to
                                                  all plants?                                             § 3202.4(c) by adding the word                         develop.’’ The commenter added that
                                                     Response: USDA certification of                      ‘‘biobased’’ in front of ‘‘product’’ and               the ‘‘LCA related data’’ included in the
                                                  biobased products to display the label is               ‘‘products.’’ The commenter also                       EPD will assist in comparing products
                                                  product specific, but is independent of                 suggested clarifying § 3202.4(c)(2)(i) and             but inquired how federal agencies will
                                                  the actual manufacturing plant in which                 (ii) to read:                                          use this data. Additionally, the
                                                  the product is produced. That is, if a                                                                         commenter asked if there is an
                                                  manufacturer produces product A in                        (i) Product composition and applications.            advantage to using this data as one
                                                                                                          (A) The biobased product or material is used
                                                  two different locations and the product                                                                        means of defining ‘‘biobased
                                                                                                          or applied in applications that differ from
                                                  is otherwise identical, the manufacturer                historical applications; (B) The biobased              purchasing.’’
                                                  only has to apply for certification once                product or material is grown, harvested,                  Response: In response to both
                                                  and the manufacturer may select a                       manufactured, processed, sourced, or applied           commenters, USDA points out that the
                                                  sample for biobased content testing from                in other innovative ways; or (C) The biobased          proposal did not make it a
                                                  either manufacturing plant. USDA                        content of the product or material makes its           ‘‘requirement’’ that a manufacturer
                                                  believes that this procedural question is               composition different from products used for           submit an EPD to participate in the
                                                  adequately covered in the Program                       the same historical uses or applications.              BioPreferred Program. Submitting an
                                                                                                            (ii) Manufacturing and processing. (A) The           EPD is one of the means available for
                                                  operating procedures and has not made
                                                                                                          biobased product or material is manufactured           manufacturers to demonstrate that their
                                                  changes to the actual rule language.                    or processed using renewable, biomass
                                                                                                                                                                 biobased products meet the ‘‘innovative
                                                  1. 7 CFR 3202.4(b)(4)—Finished                          energy or using technology that is
                                                                                                          demonstrated to increase energy efficiency or          approach’’ criteria. Various other types
                                                  Products That Are Complex Assemblies                                                                           of documentation are also acceptable.
                                                                                                          reduce reliance on fossil fuel based energy
                                                     Comment: One commenter stated that                   sources; or (B) The biobased product or                Also, in response to the second
                                                  calculating the biobased content of a                   material is manufactured or processed with             commenter, USDA agrees that not all
                                                  complex assembly is complicated and                     technologies that ensure high feedstock                manufacturers have EPDs for their
                                                  recommended that USDA provide extra                     material recovery and use; or (C) The product          products and that the completion of an
                                                  guidance via written communication or                   or material is manufactured or processed in            EPD can be time consuming. The
                                                  webinars for companies interested in                    a way that adds biobased content.                      purpose of requesting documentation
                                                  receiving certification to display the                    Response: USDA agrees with the                       such as, but not limited to, an EPD is to
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                                                  USDA Certified Biobased Product label                   commenter that certain edits to the                    demonstrate that the manufacturer meet
                                                  on products that would be considered                    proposed language add clarity to the                   Congress’ intention that ‘‘all products in
                                                  complex assemblies. The commenter                       rule and, thus, will revise the proposed               the program use innovative approaches
                                                  explained that because ‘‘complex                        language for the final rule. However,                  in the growing, harvesting, sourcing,
                                                  products’’ have not yet been designated                 USDA disagrees with the commenter’s                    procuring, processing, manufacturing,
                                                  as a product category for federal                       recommendation to include the                          or application of the biobased product.’’
                                                  procurement preference they should                      statement that the manufacturing and                   Because not all manufacturers have


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                                                  34034               Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations

                                                  performed an EPD, USDA does not                         biobased content by referencing the                    ‘‘downstream’’ companies is addressed
                                                  believe that it would be beneficial to                  tested biobased content of a product that              by USDA plans to designate for federal
                                                  require this type of data in defining                   has already been certified if both                     procurement those finished products
                                                  ‘‘biobased purchases’’ by federal                       products share the same biobased                       that are made from designated
                                                  agencies. USDA’s position is that                       ingredients and biobased content. The                  intermediate ingredients and feedstock
                                                  purchases of biobased products that                     commenter indicated that this approach                 materials. USDA does not believe the
                                                  have been accepted into the                             would work smoothly if these products                  any changes in the proposed rule
                                                  BioPreferred Program and are, thus,                     are made by the same manufacturer;                     language are necessary as a result of this
                                                  listed in the Program’s Biobased product                however, ‘‘complications’’ could arise if              comment.
                                                  catalog are eligible to be counted as                   the manufacturers are different. Thus,
                                                                                                                                                                 E. 7 CFR 3202.8—Violations
                                                  ‘‘biobased purchases.’’                                 the commenter suggested that USDA
                                                                                                          clarify how manufacturers are supposed                   No comments were received on the
                                                  4. 7 CFR 3202.4(c)(4)—Raw Material                                                                             revisions proposed for this section.
                                                                                                          to proceed and recommended that
                                                  Sourcing
                                                                                                          USDA make sure this proposed                           F. 7 CFR 3202.10—Oversight and
                                                     Comment: One commenter wanted                        approach does not cause the                            Monitoring
                                                  USDA to take into account that a                        manufacturer of the initially certified
                                                  finished wood product may be sourced                    product to have a disadvantage, as that                  Comment: One commenter expressed
                                                  domestically or globally; thus, the                     manufacturer ‘‘would carry the entire                  support specifically for USDA’s periodic
                                                  commenter cautioned USDA that the                       burden and cost of testing.’’ Thus, the                auditing activities.
                                                  criteria proposed in § 3202.4(c)(4) do                  commenter stated that USDA should                        Response: USDA appreciates the
                                                  not ‘‘inadvertently create a technical                  consider any obligations that the                      commenter’s support for the auditing
                                                  barrier to trade’’ and do not exclude                   manufacturer of the initially certified                plans as described in the proposed rule.
                                                  imported wood products that were                        product may have to check the biobased                 VI. Regulatory Information
                                                  harvested and exported legally in the                   content of the new product before
                                                  U.S. and their country of harvest. This                 sharing its certification. The commenter               A. Executive Orders 12866 and 13563:
                                                  commenter recommended that USDA                         added that because USDA has not                        Regulatory Planning and Review
                                                  recognize in the proposed rule that new                 provided guidance on the conditions in                    Executive Orders 13563 and 12866
                                                  certification measures for forestry                     which certifications may be shared,                    direct agencies to assess all costs and
                                                  products develop every year and                         USDA should be ‘‘proactive’’ in doing                  benefits of available regulatory
                                                  encouraged USDA to include ‘‘new                        so to address any questions that                       alternatives and, if regulation is
                                                  legality systems,’’ for example, the                    manufacturers will have.                               necessary, to select regulatory
                                                  Voluntary Partnership Agreements                           The same commenter stated                           approaches that maximize net benefits
                                                  under the European Union’s Forest Law                   appreciation for the proposed rule but                 (including potential economic,
                                                  Enforcement, Governance and Trade                       recommended that USDA develop                          environmental, public health and safety
                                                  Action Plan as another way to                           methods for downstream companies                       effects, distributive impacts, and
                                                  demonstrate innovation. In addition, the                that use USDA Certified Biobased                       equity). Executive Order 13563
                                                  commenter advised USDA to be aware                      chemicals/products in their                            emphasizes the importance of
                                                  that the definitions for ‘‘legal,                       formulations. The commenter stated                     quantifying both costs and benefits, of
                                                  responsible, or certified sources are not               that companies that choose to blend                    reducing costs, of harmonizing rules,
                                                  applied in a manner that prevents                       USDA Certified Biobased chemicals/                     and of promoting flexibility. This rule
                                                  innovation in forestry management and                   products in their products should be                   has been designated a ‘‘non-significant
                                                  certification.’’ The commenter looked                   able to display the USDA Certified                     regulatory action’’ under section 3(f) of
                                                  forward to ‘‘working closely with                       Biobased Product label.                                Executive Order 12866. Accordingly,
                                                  USDA’’ to help implement these rules.                      Response: USDA agrees with the                      the final rule was not reviewed by the
                                                     Response: USDA agrees with the                       commenter that the ‘‘self-declare’’                    Office of Management and Budget.
                                                  commenters that the proposed                            procedure should not result in a
                                                  innovative criteria should not be                       situation where one manufacturer is                    1. Need for the Rule
                                                  considered as an all-inclusive list.                    relieved of the cost of testing the                       This final rule amends the voluntary
                                                  USDA recognizes that sustainability                     biobased content of their product at the               labeling program rules to establish the
                                                  advances are occurring worldwide and                    expense of another manufacturer                        regulatory framework for the labeling of
                                                  does not intend that new and valid                      without permission. The proposed rule                  products that were previously excluded
                                                  certifications be excluded from                         language restricts the use of this                     from the program because they were
                                                  consideration by the BioPreferred                       provision to (1) manufacturers seeking                 mature market products. The
                                                  Program. In the final rule, USDA will                   certification of additional products they              designation of such products is
                                                  clarify that evidence of an innovative                  manufacture that have the same                         specifically required under the
                                                  approach will not be restricted to only                 formulation as a previously certified                  Agricultural Act of 2014, which states
                                                  those innovative criteria listed in the                 product and (2) manufacturers whose                    that the Guidelines shall: ‘‘(vi) Promote
                                                  Guidelines and that consideration of                    products are made from certified                       biobased products, including forest
                                                  other evidence will be on a case-by-case                intermediate ingredients in those cases                products, that apply an innovative
                                                  basis.                                                  where the manufacturer of the certified                approach to growing, harvesting,
                                                                                                          intermediate ingredient gives                          sourcing, procuring, processing,
                                                  D. 7 CFR 3202.5—Initial Approval
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                                                                                                          permission to use the test results from                manufacturing, or application of
                                                  Process                                                 their product. It is not OPPM’s intention              biobased products regardless of the date
                                                    Comment: While one commenter                          that one manufacturer be allowed to use                of entry into the marketplace.’’
                                                  specifically supported this section of the              the test results from another
                                                  proposed rule, another expressed                        manufacturer without the approval and                  2. Costs, Benefits and Transfers
                                                  concern regarding a manufacturer’s                      cooperation of the party who paid for                     This rule advances the objectives of
                                                  ability to waive testing via ASTM D6866                 the testing. USDA also points out that                 the BioPreferred Program, as envisioned
                                                  and to self-declare its product’s                       the commenter’s statement regarding                    by Congress in the 2002, 2008 and 2014


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                                                                      Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations                                          34035

                                                  Farm Bills, by expanding the scope of                   subject to notice and comment                          Assessment. The provisions of this rule
                                                  products that may be certified to display               rulemaking requirements under the                      do not have a substantial direct effect on
                                                  the USDA Certified Biobased Product                     Administrative Procedure Act or any                    States or their political subdivisions or
                                                  certification mark. The entry into the                  other statute unless the agency certifies              on the distribution of power and
                                                  voluntary labeling program of biobased                  that the rule will not have a significant              responsibilities among the various
                                                  products that were previously                           economic impact on a substantial                       government levels.
                                                  considered to be mature market                          number of small entities. Small entities
                                                  products provides newly developed                       include small businesses, small                        F. Unfunded Mandates Reform Act of
                                                  biobased products the opportunity to be                 organizations, and small governmental                  1995
                                                  publicized via the BioPreferred Web                     jurisdictions.                                            This final rule contains no federal
                                                  site. Thus, the rule is expected to                        Although the voluntary labeling                     mandates under the regulatory
                                                  increase demand for these products,                     program ultimately may have a direct                   provisions of Title II of the Unfunded
                                                  which, in turn, is expected to increase                 impact on a substantial number of small                Mandates Reform Act of 1995 (UMRA),
                                                  demand for those agricultural products                  entities, USDA has determined that this                2 U.S.C. 1531–1538, for State, local, and
                                                  that can serve as ingredients and                       final rule itself will not have a direct               tribal governments, or the private sector.
                                                  feedstocks. This expansion of the                       significant economic impact on a                       Therefore, a statement under section
                                                  voluntary labeling program will, thus,                  substantial number of small entities.                  202 of UMRA is not required.
                                                  yield private benefits for businesses                   Private sector manufacturers and
                                                                                                                                                                 G. Executive Order 12372:
                                                  producing these ingredients and                         vendors of biobased products
                                                                                                                                                                 Intergovernmental Review of Federal
                                                  feedstocks.                                             voluntarily may provide information to
                                                     Simultaneously, this action could                                                                           Programs
                                                                                                          USDA through the means set forth in
                                                  reduce demand for competing products                    this rule. However, the rule imposes no                  For the reasons set forth in the Final
                                                  that are not eligible for the voluntary                 requirement on manufacturers and                       Rule Related Notice for 7 CFR part 3015,
                                                  labeling program. Producers of biobased                 vendors to do so, and does not                         subpart V (48 FR 29115, June 24, 1983),
                                                  products, including intermediate                        differentiate between manufacturers and                this program is excluded from the scope
                                                  ingredients and feedstocks, that are not                vendors based on size. USDA does not                   of the Executive Order 12372, which
                                                  certified for labeling or producers of                  know how many small manufacturers                      requires intergovernmental consultation
                                                  non-biobased products could face a loss                 and vendors may opt to participate in                  with State and local officials. This
                                                  of market share within both the public                  the voluntary labeling program. USDA                   program does not directly affect State
                                                  and federal agencies. USDA does not                     anticipates that this program will                     and local governments.
                                                  have sufficient information on the                      positively impact small entities which
                                                  expected extent of this potential loss of                                                                      H. Executive Order 13175: Consultation
                                                                                                          manufacture or sell biobased products                  and Coordination With Indian Tribal
                                                  market share to assign a dollar value to                by allowing them to display the
                                                  this impact.                                                                                                   Governments
                                                                                                          certification mark and to list their
                                                     As part of the Stage 3 auditing process              products in the BioPreferred Program                     This final rule has been reviewed in
                                                  to be conducted during calendar year                    Web site catalog. However, this program                accordance with the requirements of
                                                  2016, manufacturers of biobased                         may decrease opportunities for small                   Executive Order 13175, Consultation
                                                  products that have been certified for five              businesses that manufacture or sell non-               and Coordination with Indian Tribal
                                                  or more years will be required to have                  biobased products or provide                           Governments. The review reveals that
                                                  their products biobased content re-                     components for the manufacturing of                    this final rule will not have substantial
                                                  tested. We estimate that the cost for                   such products. It is, however, not                     and direct effects on Tribal governments
                                                  product re-testing is about $300 to $400                possible for USDA to definitively assess               and will not have significant Tribal
                                                  per product. The labeling program was                   these anticipated impacts on small                     implications.
                                                  implemented in 2011 and only those                      entities.
                                                  products that were certified during 2011                                                                       I. Paperwork Reduction Act
                                                  will incur the re-testing cost of the Stage             C. Executive Order 12630:                                 In accordance with the Paperwork
                                                  3 audit to be conducted during 2016.                    Governmental Actions and Interference                  Reduction Act of 1995 (44 U.S.C. 3501
                                                  There were 1,338 applications for                       With Constitutionally Protected Property               through 3520), the information
                                                  certification received during 2011 and                  Rights                                                 collection under the voluntary labeling
                                                  USDA estimates that 1,000 of the                          This final rule has been reviewed in                 program is currently approved under
                                                  products represented by those                           accordance with Executive Order 12630,                 OMB control number 0503–0020.
                                                  applications continue to display the                    Governmental Actions and Interference                  J. E-Government Act Compliance
                                                  label under the original certification.                 with Constitutionally Protected Property
                                                  Thus, the total estimated cost of the                   Rights, and does not contain policies                     USDA is committed to compliance
                                                  auditing effort to all manufacturers is                 that have implications for these rights.               with the E-Government Act, which
                                                  expected to be, at most, $400,000 (1,000                                                                       requires Government agencies, in
                                                  products × $400 per test) during 2016.                  D. Executive Order 12988: Civil Justice                general, to provide the public the option
                                                  Considering that this total cost would be               Reform                                                 of submitting information or transacting
                                                  spread over several hundred                               This final rule has been reviewed in                 business electronically to the maximum
                                                  manufacturers making these products                     accordance with Executive Order 12988,                 extent possible. USDA is implementing
                                                  and that no additional re-testing costs                 Civil Justice Reform. This rule does not               an electronic information system for
                                                                                                                                                                 posting information voluntarily
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                                                  are expected until the year 2022, USDA                  preempt State or local laws, is not
                                                  believes that the cost to any one                       intended to have retroactive effect, and               submitted by manufacturers or vendors
                                                  manufacturer is reasonable.                             does not involve administrative appeals.               on the products they intend to offer for
                                                                                                                                                                 federal preferred procurement under
                                                  B. Regulatory Flexibility Act (RFA)                     E. Executive Order 13132: Federalism                   each designated item. For information
                                                    The RFA, 5 U.S.C. 601–602, generally                    This final rule does not have                        pertinent to E-Government Act
                                                  requires an agency to prepare a                         sufficient federalism implications to                  compliance related to this rule, please
                                                  regulatory flexibility analysis of any rule             warrant the preparation of a Federalism                contact Ron Buckhalt at (202) 205–4008.


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                                                  34036               Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations

                                                  K. Congressional Review Act                             PART 3202—VOLUNTARY LABELING                             The revisions and additions read as
                                                                                                          PROGRAM FOR BIOBASED                                   follows:
                                                    The Congressional Review Act, 5                       PRODUCTS
                                                  U.S.C. 801 et seq., as added by the Small                                                                      § 3202.2   Definitions.
                                                  Business Regulatory Enforcement                         ■ 1. The authority citation for part 3202              *      *    *     *     *
                                                  Fairness Act of 1996, generally provides                continues to read as follows:                            Biobased product. (1) A product
                                                  that before a rule may take effect, the                     Authority: 7 U.S.C. 8102.                          determined by USDA to be a
                                                  agency promulgating the rule must                                                                              commercial or industrial product (other
                                                  submit a rule report, that includes a                   ■  2. In § 3202.2:                                     than food or feed) that is:
                                                                                                          ■  a. Revise the definition of ‘‘Biobased
                                                  copy of the rule, to each House of the                                                                           (i) Composed, in whole or in
                                                                                                          product’’;
                                                  Congress and to the Comptroller General                 ■ b. Remove the definition of                          significant part, of biological products,
                                                  of the United States. USDA has                          ‘‘BioPreferred Product’’;                              including renewable domestic
                                                  submitted a report containing this rule                 ■ c. Revise the definition of                          agricultural materials and forestry
                                                  and other required information to the                   ‘‘Certification mark artwork’’;                        materials; or
                                                  U.S. Senate, the U.S. House of                          ■ d. Remove the definition of                            (ii) An intermediate ingredient or
                                                  Representatives, and the Comptroller                    ‘‘Designated item’’;                                   feedstock.
                                                  General of the United States prior to                   ■ e. Add in alphabetical order                           (2) The term ‘‘biobased product’’
                                                  publication of the rule in the Federal                  definitions of ‘‘Designated product                    includes, with respect to forestry
                                                  Register.                                               category’’ and ‘‘Forest product’’;                     materials, forest products that meet
                                                                                                          ■ f. Remove the definition of
                                                                                                                                                                 biobased content requirements,
                                                  List of Subjects in 7 CFR Part 3202                     ‘‘Intermediate ingredients or                          notwithstanding the market share the
                                                                                                          feedstocks’’;                                          product holds, the age of the product, or
                                                     Biobased products, Procurement.                      ■ g. Add in alphabetical order a
                                                                                                                                                                 whether the market for the product is
                                                     For the reasons stated in the                        definition of ‘‘Intermediate ingredient or
                                                                                                                                                                 new or emerging.
                                                  preamble, the Department of Agriculture                 feedstock’’;
                                                  is amending 7 CFR part 3202 as follows:                 ■ h. Remove the definition of ‘‘Mature                 *      *    *     *     *
                                                                                                          market products’’; and                                   Certification mark artwork. The
                                                                                                          ■ i. Add in alphabetical order                         distinctive image, as shown in Figures
                                                                                                          definitions of Qualified biobased                      1–3, that identifies products as USDA
                                                                                                          product’’ and ‘‘Renewable chemical’’.                  Certified.
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               Federal Register/Vol. 80, No. 114/Monday, June 15, 2015 /Rules and Regulations                    34037




          Figure 1.         USDA Certified Biobased Product Certification Mark
             (Note:         actual size will vary depending on application)




                                                              CE TEFIED


                 Figure 2.       USDA Certified Biobased Product:  Package
                                       Certification Mark
                (Note:       actual size will vary depending on application




                 Figure 3.         USDA Certified Biobased Product & Package
                                         Certification Mark
                  (Note:       actual size will vary depending on application




  Designated product category. A         including those final products made   ingredients or feedstocks, or complex
generic grouping of biobased products,   from designated intermediate          assemblies identified in subpart B of 7


                                                  34038               Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations

                                                  CFR part 3201, that is eligible for the                 subpart A of 7 CFR part 3201, that is not                 (iii) The biobased content of the
                                                  procurement preference established                      eligible for federal preferred                         product or material makes its
                                                  under section 9002 of FSRIA.                            procurement at the time the application                composition different from products or
                                                  *      *    *     *     *                               for certification is submitted, the                    material used for the same historical
                                                     Forest product. A product made from                  applicable minimum biobased content                    uses or applications.
                                                  materials derived from the practice of                  is 25 percent. The biobased content                       (2) Manufacturing and processing. (i)
                                                  forestry or the management of growing                   shall be determined using the                          The biobased product or material is
                                                  timber. The term ‘‘forest product’’                     procedures specified in § 3201.7(c)(3) of              manufactured or processed using
                                                  includes:                                               this chapter. Manufacturers, vendors,                  renewable, biomass energy or using
                                                     (1) Pulp, paper, paperboard, pellets,                groups of manufacturers and/or                         technology that is demonstrated to
                                                  lumber, and other wood products; and                    vendors, and trade associations may                    increase energy efficiency or reduce
                                                     (2) Any recycled products derived                    propose an alternative applicable                      reliance on fossil-fuel based energy
                                                  from forest materials.                                  minimum biobased content for the                       sources; or
                                                  *      *    *     *     *                               product by developing, in consultation                    (ii) The biobased product or material
                                                     Intermediate ingredient or feedstock.                with USDA, and conducting an analysis                  is manufactured or processed with
                                                  A material or compound made in whole                    to support the proposed alternative                    technologies that ensure high feedstock
                                                  or in significant part from biological                  applicable minimum biobased content.                   material recovery and use.
                                                  products, including renewable                           If approved by USDA, the proposed                         (3) Environmental Product
                                                  agricultural materials (including plant,                alternative applicable minimum                         Declaration. The product has a current
                                                  animal, and marine materials) or                        biobased content would become the                      Environmental Product Declaration as
                                                  forestry materials that have undergone                  applicable minimum biobased content                    defined by International Standard ISO
                                                  value added processing (including                       for the complex assembly to be labeled.                14025, Environmental Labels and
                                                  thermal, chemical, biological, or a                        (ii) If a product certified under                   Declarations—Type III Environmental
                                                  significant amount of mechanical                        paragraph (b)(4)(i) of this section is                 Declarations—Principles and
                                                  processing), excluding harvesting                       within a category that USDA                            Procedures.
                                                  operations, offered for sale by a                       subsequently designates for federal                       (4) Raw material sourcing. (i) The raw
                                                  manufacturer or vendor and that is                      preferred procurement, the applicable                  material used in the product is sourced
                                                  subsequently used to make a more                        minimum biobased content shall                         from a Legal Source, a Responsible
                                                  complex compound or product.                            become, as of the effective date of the                Source, or a Certified Source as
                                                                                                          final designation rule, the minimum                    designated by ASTM D7612—10,
                                                  *      *    *     *     *
                                                     Qualified biobased product. A                        biobased content specified for the item                Standard Practice for Categorizing Wood
                                                  product that is eligible for federal                    as found in subpart B of 7 CFR part                    and Wood-Based Products According to
                                                  preferred procurement because it meets                  3201.                                                  Their Fiber Sources; or
                                                                                                             (c) Innovative approach. In                            (ii) The raw material used in the
                                                  the definition and minimum biobased
                                                                                                          determining eligibility for certification              product is 100% resourced or recycled
                                                  content criteria for one or more
                                                                                                          under the BioPreferred Program, USDA                   (such as material obtained from building
                                                  designated product categories, or one or
                                                                                                          will consider as eligible only those                   deconstruction); or
                                                  more designated intermediate ingredient                                                                           (iii) The raw material used in the
                                                  or feedstock categories, as specified in                products that use innovative approaches
                                                                                                                                                                 product is from an urban environment
                                                  subpart B of 7 CFR part 3201.                           in the growing, harvesting, sourcing,
                                                                                                                                                                 and is acquired as a result of activities
                                                     Renewable chemical. A monomer,                       procuring, processing, manufacturing,
                                                                                                                                                                 related to a natural disaster, land
                                                  polymer, plastic, formulated product, or                or application of the biobased product.
                                                                                                                                                                 clearing, right-of-way maintenance, tree
                                                  chemical substance produced from                        USDA will consider products that meet
                                                                                                                                                                 health improvement, or public safety.
                                                  renewable biomass.                                      one or more of the criteria in paragraphs
                                                                                                          (c)(1) through (4) of this section to be               ■ 4. Section 3202.5 is amended by:
                                                  *      *    *     *     *                                                                                      ■ a. Revising paragraph (a)(1);
                                                  ■ 3. Section 3202.4 is amended by
                                                                                                          eligible for certification. USDA will also
                                                                                                                                                                 ■ b. Adding a sentence to the end of
                                                  revising the introductory text and the                  consider other documentation of
                                                                                                          innovative approaches in the growing,                  paragraph (c) introductory text;
                                                  headings for paragraphs (b)(1) and (2)                                                                         ■ c. Adding paragraph (c)(5);
                                                  and adding paragraphs (b)(4) and (c) to                 harvesting, sourcing, procuring,
                                                                                                                                                                 ■ d. Revising paragraph (d)(1); and
                                                  read as follows:                                        processing, manufacturing, or
                                                                                                                                                                 ■ e. Adding paragraphs (d)(2)(iv) and
                                                                                                          application of biobased products on a
                                                                                                                                                                 (v).
                                                  § 3202.4 Criteria for product eligibility to            case by case basis. USDA may deny                         The revisions and additions read as
                                                  use the certification mark.                             certification for any products whose                   follows:
                                                     A product must meet each of the                      manufacturers are unable to provide
                                                  criteria specified in paragraphs (a)                    USDA with the documentation                            § 3202.5   Initial approval process.
                                                  through (c) of this section in order to be              necessary to verify claims that                          (a) * * *
                                                  eligible to receive biobased product                    innovative approaches are used in the                    (1) General content. The applicant
                                                  certification.                                          growing, harvesting, sourcing,                         must provide contact information and
                                                  *      *     *    *     *                               procuring, processing, manufacturing,                  product information including all brand
                                                     (b) * * *                                            or application of their biobased                       names or other identifying information,
                                                     (1) Qualified Biobased Products.                     products.                                              intended uses of the product,
                                                  * * *                                                      (1) Product applications. (i) The                   information to document that one or
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                                                     (2) Finished biobased products that                  biobased product or material is used or                more of the innovative approach criteria
                                                  are not Qualified Biobased Products.                    applied in applications that differ from               specified in section 3202.4(c) has been
                                                  * * *                                                   historical applications; or                            met, and, if applicable, the
                                                  *      *     *    *     *                                  (ii) The biobased product or material               corresponding product category
                                                     (4) Finished products that are                       is grown, harvested, manufactured,                     classification for federal preferred
                                                  complex assemblies. (i) If the product is               processed, sourced, or applied in other                procurement. The applicant must also
                                                  a complex assembly, as defined in                       innovative ways; or                                    provide a sample of the product to be


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                                                                      Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations                                                34039

                                                  analyzed by a third-party, ISO 9001                     suspension and revocation according to                 to confirm the accuracy of biobased
                                                  conformant, testing entity for                          the procedures specified in § 3202.8(c).               content percentages claimed. The
                                                  determination of the biobased content.                     (v) If USDA discovers that a                        participants whose products are
                                                  In situations where a new product for                   certification has been issued for an                   selected will be required to submit
                                                  which certification is sought is                        ineligible biobased product as a result of             product samples to be tested by
                                                  composed of the same biobased                           errors on the part of USDA during the                  independent testing labs at USDA
                                                  ingredients and has the same biobased                   approval process, USDA will notify the                 expense. The first Stage 2 auditing
                                                  content as a product that has already                   product’s manufacturer or vendor in                    activity began in 2014 and is scheduled
                                                  been certified, the manufacturer may, in                writing that the certification is revoked              to be completed during 2015 and the
                                                  lieu of having the new product tested,                  effective 30 days from the date of the                 second Stage 2 audit will be conducted
                                                  self-declare the biobased content of the                notice.                                                in 2020.
                                                  new product by referencing the tested                   ■ 5. Section 3202.8 is amended by                        (3) Stage 3 auditing requires
                                                  biobased content of the original certified              revising paragraph (c)(3) to read as                   manufacturers of products that have
                                                  product. Certification of the original                  follows:                                               been certified for 5 years or more to
                                                  product must have been obtained by                                                                             have their products re-tested at their
                                                                                                          § 3202.8    Violations.
                                                  either the manufacturer of the new                                                                             expense to confirm that the biobased
                                                  product or by the supplier of the                       *     *     *     *     *                              content remains at or above the level at
                                                  biobased ingredients used in the new                      (c) * * *                                            which the product was originally
                                                                                                            (3) Other remedies. In addition to the
                                                  product.                                                                                                       certified. The first Stage 3 auditing
                                                                                                          suspension or revocation of the
                                                     (c) * * * Paragraph (c)(5) of this                                                                          activity is scheduled to be completed
                                                                                                          certification to use the label, depending
                                                  section presents the procedures for                                                                            during 2016 and the second Stage 3
                                                                                                          on the nature of the violation, USDA
                                                  revising the information provided under                                                                        audit will be conducted in 2022.
                                                                                                          may pursue suspension or debarment of
                                                  paragraphs (c)(1) through (4) of this                   the entities involved in accordance with                 Dated: June 5, 2015.
                                                  section after a notice of certification has             2 CFR part 417 and 48 CFR subpart 9.4.                 Gregory L. Parham,
                                                  been issued.                                            USDA further reserves the right to                     Assistant Secretary for Administration, U.S.
                                                  *      *      *     *    *                              pursue any other remedies available by                 Department of Agriculture.
                                                     (5) If at any time, during the                       law, including any civil or criminal                   [FR Doc. 2015–14417 Filed 6–12–15; 8:45 am]
                                                  application process or after a product                  remedies, against any entity that                      BILLING CODE 3410–TX–P
                                                  has been certified, any of the                          violates the provisions of this part.
                                                  information specified in paragraphs                     ■ 6. Section 3202.10 is amended by
                                                  (c)(1) through (4) of this section                      adding paragraph (d) to read as follows:               DEPARTMENT OF THE TREASURY
                                                  changes, the applicant must notify
                                                  USDA of the change within 30 days.                      § 3202.10    Oversight and monitoring.
                                                                                                                                                                 Office of the Comptroller of the
                                                  Such notification must be provided in                   *      *    *     *     *                              Currency
                                                  writing to USDA.                                           (d) Audits. USDA expects to conduct
                                                     (d) * * *                                            audits of the voluntary labeling program
                                                                                                                                                                 12 CFR Parts 4, 5, 7, 14, 24, 32, 34, 100,
                                                                                                          on an ongoing basis with audit activities
                                                     (1) The effective date of certification                                                                     116, 143, 144, 145, 146, 150, 152, 159,
                                                                                                          conducted every other calendar year (bi-
                                                  is the date on which the applicant                                                                             160, 161, 162, 163, 174, 192, 193
                                                                                                          annually). Audit activities will include
                                                  receives a notice of certification from
                                                                                                          three stages and will be conducted in                  [Docket ID OCC–2014–0007]
                                                  USDA. Except as specified in                            sequential order as follows:
                                                  paragraphs (d)(2)(i) through (d)(2)(v) of                  (1) Stage 1 auditing includes                       RIN 1557–AD80
                                                  this section, certifications will remain in             contacting all participants via email and
                                                  effect as long as the product is                        requesting that they complete a                        Integration of National Bank and
                                                  manufactured and marketed in                            ‘‘Declaration of Conformance Form.’’                   Federal Savings Association
                                                  accordance with the approved                            Program participants are asked to                      Regulations: Licensing Rules
                                                  application and the requirements of this                confirm that they still manufacture the
                                                  subpart.                                                                                                       Correction
                                                                                                          product and that the formulation and
                                                     (2) * * *                                            manufacturing processes remain the                       In rule document 2015–11229
                                                     (iv) All certifications are subject to               same. Participants are also asked to list              beginning on page 28346 in the issue of
                                                  USDA periodic auditing activities, as                   all active products and advise the USDA                Monday, May 18, 2015, make the
                                                  described in § 3202.10(d). If a                         of any complaints regarding the claim of               following correction:
                                                  manufacturer or vendor of a certified                   the biobased content. The first Stage 1                Appendix 1 to Part 24 [Corrected]
                                                  biobased product fails to participate in                auditing activity was completed in 2012
                                                  such audit activities or if such audit                  and the second Stage 1 audit will be                     On pages 28475 through 28477, in
                                                  activities reveal biobased content                      conducted in 2018.                                     Appendix 1 to Part 24, the form should
                                                  violations, as specified in § 3202.8(b)(1),                (2) Stage 2 auditing consists of a                  appear as follows:
                                                  the certification will be subject to                    random sampling of certified products                  BILLING CODE 1505–01–D
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Document Created: 2015-12-15 15:13:30
Document Modified: 2015-12-15 15:13:30
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective July 15, 2015.
ContactRon Buckhalt, USDA, Office of Procurement and Property Management, Room 361, Reporters Building, 300 7th St. SW., Washington, DC 20024; email: [email protected]; phone (202) 205-4008. Information regarding the Voluntary Labeling Program for Biobased Products (one part of the BioPreferred[supreg] Program) is available on the Internet at http://www.biopreferred.gov.
FR Citation80 FR 34030 
RIN Number0599-AA22
CFR AssociatedBiobased Products and Procurement

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