82_FR_4215 82 FR 4206 - Designation of Product Categories for Federal Procurement

82 FR 4206 - Designation of Product Categories for Federal Procurement

DEPARTMENT OF AGRICULTURE
Office of Procurement and Property Management

Federal Register Volume 82, Issue 9 (January 13, 2017)

Page Range4206-4221
FR Document2016-31128

The U.S. Department of Agriculture (USDA) is proposing to amend the Guidelines for Designating Biobased Products for Federal Procurement (Guidelines) to add 12 sections that will designate 12 product categories composed of intermediate ingredient and feedstock materials within which biobased products would be afforded procurement preference by Federal agencies and their contractors. USDA is also proposing minimum biobased contents for each of these product categories.

Federal Register, Volume 82 Issue 9 (Friday, January 13, 2017)
[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)]
[Proposed Rules]
[Pages 4206-4221]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31128]


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DEPARTMENT OF AGRICULTURE

Office of Procurement and Property Management

7 CFR Part 3201

RIN 0599-AA24


Designation of Product Categories for Federal Procurement

AGENCY: Office of Procurement and Property Management, USDA.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The U.S. Department of Agriculture (USDA) is proposing to 
amend the Guidelines for Designating Biobased Products for Federal 
Procurement (Guidelines) to add 12 sections that will designate 12 
product categories composed of intermediate ingredient and feedstock 
materials within which biobased products would be afforded procurement 
preference by Federal agencies and their contractors. USDA is also 
proposing minimum biobased contents for each of these product 
categories.

DATES: USDA will accept public comments on this proposed rule until 
March 14, 2017.

ADDRESSES: You may submit comments by any of the following methods. All 
submissions received must include the agency name and Regulatory 
Information Number (RIN). The RIN for this rulemaking is 0599-AA24. 
Also, please identify submittals as pertaining to the ``Proposed 
Designation of Product Categories.''
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include RIN number 
0599-AA24 and ``Proposed Designation of Product Categories'' on the 
subject line. Please include your name and address in your message.
     Mail/commercial/hand delivery: Mail or deliver your 
comments to: Marie Wheat, USDA, Office of Procurement and Property 
Management, Room 361, Reporters Building, 300 7th St. SW., Washington, 
DC 20024.
     Persons with disabilities who require alternative means 
for communication for regulatory information (Braille, large print, 
audiotape, etc.) should contact the USDA TARGET Center at (202) 720-
2600 (voice) and (202) 690-0942 (TTY).

FOR FURTHER INFORMATION CONTACT: Marie Wheat, USDA, Office of 
Procurement and Property Management, Room 361, Reporters Building, 300 
7th St. SW., Washington, DC 20024; email: 
[email protected]; phone (202) 239-4502. Information 
regarding the Federal preferred procurement program (one initiative of 
the BioPreferred Program) is available on the Internet at http://www.biopreferred.gov.

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

I. Authority
II. Background
III. Summary of Today's Proposed Rule
IV. Designation of Product Categories, Minimum Biobased Contents, 
and Time Frame
    A. Background
    B. Product Categories and Minimum Biobased Contents Proposed for 
Designation
    C. Compliance Date for Procurement Preference and Incorporation 
Into Specifications
V. Where can agencies get more information on these USDA-designated 
product categories?
VI. Regulatory Information
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 13563: Improving Regulation and Regulatory 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

I. Authority

    The designation of these product categories is proposed 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''.)

II. Background

    Section 9002 provides for the preferred procurement of biobased 
products by Federal procuring agencies and is referred to hereafter in 
this Federal Register notice as the ``Federal preferred procurement 
program.'' Under the provisions specified in the ``Guidelines for 
Designating Biobased Products for Federal Procurement'' (7 CFR part 
3201) (Guidelines), the USDA BioPreferred Program ``designates'' 
product categories to which the preferred procurement requirements 
apply by listing them in subpart B of 7 CFR part 3201.
    The term ``product category'' is used as a generic term in the 
designation process to mean a grouping of specific products that 
perform a similar function. As originally finalized, the Guidelines 
included provisions for the designation of product categories that were 
composed of finished, consumer products such as mobile equipment 
hydraulic fluids, penetrating lubricants, or hand cleaners and 
sanitizers.
    The 2008 and 2014 Farm Bills directed USDA to expand the scope of 
the Guidelines to include the designation of product categories 
composed of intermediate ingredients and feedstock materials. 
Specifically, the 2008 Farm Bill stated that USDA shall ``designate 
those intermediate ingredients and feedstocks that are or can be used 
to produce items that will be subject'' to the Federal preferred 
procurement program. The term ``intermediate ingredient and feedstock'' 
is defined in the Farm Bill as ``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 are subsequently used to make a more 
complex compound or product.'' The term ``intermediates'' is used in 
the titles of the product categories being proposed for designation 
today to distinguish these proposed categories from the finished, 
consumer products previously designated by USDA. Additionally, in 
section 9001 of the 2014 Farm Bill, the term ``renewable chemical'' is 
defined as ``a monomer, polymer, plastic, formulated product, or 
chemical substance produced from renewable biomass.'' Thus, most 
products that are described as ``renewable chemicals'' will be eligible 
for the Federal preferred procurement program because they meet the 
definition of one or more of the intermediate product categories 
included in today's proposed rule.

[[Page 4207]]

    For example, the chemical substance known as citric acid, if 
biobased, may be considered as a renewable chemical and an intermediate 
ingredient for finished products in the cleaning, personal care, or 
textiles industries. Thus, biobased citric acid could be categorized in 
one or all of the following intermediate product categories that are 
proposed for designation today: Intermediates--Chemicals, 
Intermediates--Textile Processing Materials, Intermediates--Cleaner 
Components, or Intermediates--Personal Care Product Components. 
Additionally, the chemical substance known as oleic acid may be 
considered as a renewable chemical and an intermediate ingredient for 
finished products in the cleaning, personal care, or lubricant 
industries. Therefore, oleic acid could be categorized in one or all of 
the following intermediate product categories that are proposed for 
designation today: Intermediates--Chemicals, Intermediates--Lubricant 
Components, Intermediates--Cleaner Components, or Intermediates--
Personal Care Product Components. These examples show that the 
intermediate product categories being proposed today may accommodate a 
variety of renewable chemical substances.
    Although the Federal government does not typically purchase large 
quantities of intermediate ingredients and feedstock materials, 
designating such materials represents a means to identify and include 
finished products made from such designated materials in the Federal 
preferred procurement program. In the August 1, 2014 Federal Register 
(79 FR 44641), USDA finalized amendments to the Guidelines establishing 
procedures for designating intermediate ingredient or feedstock 
categories. Today's proposed rule follows the established procedures 
for designating intermediate ingredient product categories. Soon, USDA 
will propose designating product categories comprised of finished 
products made from intermediate ingredients that may be categorized 
within the product categories proposed for designation in today's rule. 
Therefore, USDA requests manufacturers and members of the public to 
submit technical information related to the designation of such 
finished product categories to [email protected]. 
Specific technical information to submit includes the following: A 
finished product category name, descriptions of finished products that 
belong in this product category, how these finished products are used, 
any special features of these finished products, estimated or tested 
biobased contents for each finished product, applicable performance 
standards that the finished products meet, and which intermediate 
ingredient and feedstock categories are used to make these finished 
products. Such information will be valuable in supporting the selection 
of product categories for designation but will be evaluated 
independently from today's proposed rule. Please refer to Section IV.B. 
of today's proposed rule for further details on the information 
required to designate product categories for Federal procurement 
preference.
    Once USDA designates a product category, procuring agencies are 
required, with some exceptions, to purchase biobased products within 
these designated product categories where the purchase price of the 
procurement product exceeds $10,000 or where the quantity of such 
products or the functionally equivalent products purchased over the 
preceding fiscal year equaled $10,000 or more. Procuring agencies must 
procure biobased products within each product category unless they 
determine that products within a product category are not reasonably 
available within a reasonable period of time, fail to meet the 
reasonable performance standards of the procuring agencies, or are 
available only at an unreasonable price. As stated in the Guidelines, 
biobased products that are merely incidental to Federal funding are 
excluded from the Federal preferred procurement program; that is, the 
requirements to purchase biobased products do not apply to such 
purchases if they are unrelated to or incidental to the purpose of the 
Federal contract. For example, if a janitorial service company 
purchases cleaning supplies to be used in the performance of a Federal 
contract, the cleaning supplies would be subject to the authority of 
the Federal preferred procurement program. However, cleaning supplies 
purchased to maintain the offices from which the janitorial service 
company manages the Federal contract would be incidental to the 
performance of the contract and, as such, would not be subject to the 
authority of the Federal preferred procurement program. In implementing 
the Federal preferred procurement program for biobased products, 
procuring agencies should follow their procurement rules and Office of 
Federal Procurement Policy guidance on buying non-biobased products 
when biobased products exist and should document exceptions taken for 
price, performance, and availability. The definition of ``procuring 
agency'' in section 9002 includes both Federal agencies and ``a person 
that is a party to a contract with any Federal agency, with respect to 
work performed under such a contract.'' Thus, Federal contractors, as 
well as Federal agencies, are expressly subject to the procurement 
preference provisions of section 9002.
    USDA recognizes that the performance needs for a given application 
are important criteria in making procurement decisions. USDA is not 
requiring procuring agencies to limit their choices to biobased 
products that are categorized within the product categories proposed 
for designation in this proposed rule. Rather, the effect of the 
designation of the product categories is to require procuring agencies 
to determine their performance needs, determine whether there are 
qualified biobased products that are categorized within the designated 
product categories that meet the reasonable performance standards for 
those needs, and purchase such qualified biobased products to the 
maximum extent practicable as required by section 9002.
    Section 9002(a)(3)(B) requires USDA to provide information to 
procuring agencies on the availability, relative price, and performance 
of such products and to recommend, where appropriate, the minimum level 
of biobased content to be contained in the procured products.
    Subcategorization. Most of the product categories USDA has 
designated for Federal preferred procurement cover a wide range of 
products. For some product categories, there are subgroups of products 
that meet different requirements, uses and/or different performance 
specifications. For example, within the product category ``hand 
cleaners and sanitizers,'' products that are used in medical offices 
may be required to meet performance specifications for sanitizing, 
while other products that are intended for general purpose hand washing 
may not need to meet these specifications. Where such subgroups exist, 
USDA intends to create subcategories. Thus, for example, for the 
product category ``hand cleaners and sanitizers,'' USDA determined that 
it was reasonable to create a ``hand cleaner'' subcategory and a ``hand 
sanitizer'' subcategory. Sanitizing specifications are applicable to 
the latter subcategory, but not the former. In sum, USDA looks at the 
products within each product category to evaluate whether there are 
groups of products within the category that have unique characteristics 
or that meet different performance specifications and, if USDA finds 
these types of differences within a given product category, it intends 
to create subcategories with the

[[Page 4208]]

minimum biobased content based on the tested products within the 
subcategory.
    For some product categories, however, USDA may not have sufficient 
information at the time of proposal to create subcategories. For 
example, USDA may know that there are different performance 
specifications that metal cleaners and corrosion remover products are 
required to meet, but it may have information on only one type of metal 
cleaner and corrosion remover product. In such instances, USDA may 
either designate the product category without creating subcategories 
(i.e., defer the creation of subcategories) or designate one 
subcategory and defer designation of other subcategories within the 
product category until additional information is obtained. Once USDA 
has received sufficient additional information to justify the 
designation of a subcategory, the subcategory will be designated 
through the proposed and final rulemaking process.
    USDA has not created subcategories for any of the product 
categories being proposed for designation in today's rule. USDA 
requests public comment, along with supporting data, on the need to 
create subcategories within any of the proposed product categories. If 
public comments are received that support the creation of 
subcategories, USDA will consider the supporting data and may create 
subcategories in the final rule.
    Minimum Biobased Contents. The minimum biobased contents being 
proposed in this rule are based on products for which USDA has biobased 
content test data. USDA obtains biobased content data in conjunction 
with product manufacturer's applications for certification to use the 
USDA Certified Biobased Product label. Products that are certified to 
display the label must undergo biobased content testing by an 
independent, third party testing lab using ASTM D6866, ``Standard Test 
Methods for Determining the Biobased Content of Solid, Liquid, and 
Gaseous Samples Using Radiocarbon Analysis''. These test data become 
part of the BioPreferred Program database and their use in setting the 
minimum biobased content for designated product categories results in a 
more efficient process for both the Program and manufacturers of 
products within the product categories.
    As a result of public comments received on the first designated 
product categories rulemaking proposal, USDA decided to account for the 
slight imprecision in the analytical method used to determine biobased 
content of products when establishing the minimum biobased content. 
Thus, rather than establishing the minimum biobased content for a 
product category at the tested biobased content of the product selected 
as the basis for the minimum value, USDA is establishing the minimum 
biobased content for each product category at a level three (3) 
percentage points lower than the tested value. USDA believes that this 
adjustment is appropriate to account for the expected variations in 
analytical results. USDA encourages procuring agencies to seek products 
with the highest biobased content that is practicable in all of the 
proposed designated product categories.
    In addition to considering the biobased content test data for each 
product category, USDA also considers other factors including product 
performance information. USDA evaluates this information to determine 
whether some products that may have a lower biobased content also have 
unique performance or applicability attributes that would justify 
setting the minimum biobased content at a level that would include 
these products. For example, a lubricant product that has a lower 
biobased content than others within a product category but is 
formulated to perform over a wider temperature range than the other 
products may be more desirable to Federal agencies. Thus, it would be 
beneficial to set the minimum biobased content for the product category 
at a level that would include the product with superior performance 
features.
    USDA also considers the overall range of the tested biobased 
contents within a product category, groupings of similar values, and 
breaks (significant gaps between two groups of values) in the biobased 
content test data array. For example, in a previously proposed product 
category, the biobased contents of 7 tested products ranged from 17 to 
100 percent, as follows: 17, 41, 78, 79, 94, 98, and 100 percent. 
Because this is a very wide range, and because there is a significant 
gap in the data between the 41 percent biobased product and the 78 
percent biobased product, USDA reviewed the product literature to 
determine whether subcategories could be created within this product 
category. USDA found that the available product information did not 
justify creating a subcategory based on the 17 percent product or the 
41 percent biobased content product. Further, USDA did not find any 
performance claims that would justify setting the minimum biobased 
content based on either the 17 percent or the 41 percent biobased 
content products. Thus, USDA set the minimum biobased content for this 
product category at 75 percent, based on the product with a tested 
biobased content of 78 percent. USDA believes that this evaluation 
process allows it to establish minimum biobased contents based on a 
broad set of factors to assist the Federal procurement community in its 
decisions to purchase biobased products.
    USDA makes every effort to obtain biobased content test data on 
multiple products within each product category. For most designated 
product categories, USDA has biobased content test data on more than 
one product within the category. However, in some cases, USDA has been 
able to obtain biobased content data for only a single product within a 
designated product category. As USDA obtains additional data on the 
biobased contents of products within these designated product 
categories or their subcategories, USDA will evaluate whether the 
minimum biobased content for a designated product category or 
subcategory will be revised.
    Overlap with EPA's Comprehensive Procurement Guideline program for 
recovered content products under the Resource Conservation and Recovery 
Act (RCRA) Section 6002. Some of the products that are within biobased 
product categories designated for Federal preferred procurement under 
this program may also be within categories the Environmental Protection 
Agency (EPA) has designated under the EPA's Comprehensive Procurement 
Guideline (CPG) for products containing recovered (or recycled) 
materials. Because today's proposed rule would designate intermediate 
ingredient product categories rather than categories of finished, 
consumer-use products, USDA does not believe that there is a direct 
overlap between these categories and CPG categories. However, if such 
an overlap situation is discovered, USDA is asking manufacturers of 
qualifying biobased products to make additional product and performance 
information available to Federal agencies conducting market research to 
assist them in determining whether the biobased products in question 
are, or are not, the same products for the same uses as the recovered 
content products. Manufacturers are asked to provide information 
highlighting the sustainable features of their biobased products and to 
indicate the various suggested uses of their product and the 
performance standards against which a particular product has been 
tested. In addition, depending on the type of biobased product, 
manufacturers are being asked to provide other types of information, 
such as whether the product contains fossil energy-based components 
(including petroleum, coal, and natural gas) and whether the product 
contains

[[Page 4209]]

recovered materials. Federal agencies also may review available 
information on a product's biobased content. Federal agencies may then 
use this information to make purchasing decisions based on the 
sustainability features of the products.
    Where a biobased product is used for the same purposes and to meet 
the same Federal agency performance requirements as an EPA-designated 
recovered content product, the Federal agency must purchase the 
recovered content product. For example, if a biobased hydraulic fluid 
is to be used as a fluid in hydraulic systems and because ``lubricating 
oils containing re-refined oil'' has already been designated by EPA for 
that purpose, then the Federal agency must purchase the EPA-designated 
recovered content product, ``lubricating oils containing re-refined 
oil.'' If, on the other hand, the biobased hydraulic fluid is to be 
used to address a Federal agency's certain environmental or health 
performance requirements that the EPA-designated recovered content 
product would not meet, then the biobased product should be given 
preference, subject to reasonable price, availability, and performance 
considerations.
    Federal Government Purchase of Sustainable Products. The Federal 
government's sustainable purchasing program includes the following 
three mandatory preference programs for designated products: The 
BioPreferred Program, the EPA's Comprehensive Procurement Guideline for 
products containing recovered materials, and the Environmentally 
Preferable Purchasing program. The Office of the Chief Sustainability 
Officer (OCSO) and the Office of Management and Budget (OMB) encourage 
agencies to implement these components comprehensively when purchasing 
products and services.
    Procuring agencies should note that not all biobased products are 
``environmentally preferable.'' For example, unless cleaning products 
contain no or reduced levels of metals and toxic or hazardous 
constituents, they can be harmful to aquatic life, the environment, 
and/or workers. Household cleaning products that are formulated to be 
disinfectants are required, under the Federal Insecticide, Fungicide 
and Rodenticide Act (FIFRA), to be registered with EPA (unless they are 
formulated with exempt ingredients) and must meet specific labeling 
requirements warning of the potential risks associated with misuse of 
such products. When purchasing environmentally preferable cleaning 
products, many Federal agencies specify that products must meet Green 
Seal standards for institutional cleaning products or that the products 
have been reformulated in accordance with recommendations from the 
EPA's Safer Choice Program (previously known as the ``Design for the 
Environment'' (DfE) program). Both the Green Seal standards and the 
Safer Choice program identify chemicals of concern in cleaning 
products. These include zinc and other metals, formaldehyde, ammonia, 
alkyl phenol ethoxylates, ethylene glycol, and volatile organic 
compounds. In addition, both require that cleaning products have 
neutral pH.
    In contrast, some biobased products may be environmentally 
preferable to some products that meet Green Seal standards for 
institutional cleaning products or that have been reformulated in 
accordance with EPA's Safer Choice program. To fully compare products, 
one must look at the ``cradle-to-grave'' impacts of the manufacture, 
use, and disposal of products. USDA has been unable to perform the 
analyses necessary to determine the ``cradle-to-grave'' impacts of 
products within the product categories being proposed for designation 
because of resource constraints.
    One consideration of a product's impact on the environment is 
whether (and to what degree) it introduces new, fossil carbon into the 
atmosphere. Fossil carbon is derived from non-renewable sources 
(typically fossil fuels such as coal and oil), whereas renewable 
biomass carbon is derived from renewable sources (biomass). Qualifying 
biobased products offer the user the opportunity to manage his or her 
impact on the carbon cycle and reduce the introduction of new fossil 
carbon into the atmosphere.
    Other Federal Preferred Procurement Programs. Federal procurement 
officials should also note that many biobased products may be available 
for purchase by Federal agencies through the AbilityOne Program 
(formerly known as the Javits-Wagner-O'Day (JWOD) program). Under this 
program, members of organizations including the National Industries for 
the Blind (NIB) and SourceAmerica (formerly known as the National 
Industries for the Severely Handicapped) offer products and services 
for preferred procurement by Federal agencies. A search of the 
AbilityOne Program's online catalog (www.abilityone.gov) indicated that 
the types of intermediate ingredient product categories being proposed 
for designation in today's proposed rule are not available through the 
AbilityOne Program. USDA notes, however, that if such materials are 
offered at some point in the future, their procurement through the 
AbilityOne Program would further the objectives of both the AbilityOne 
Program and the Federal preferred procurement program.
    Outreach. To augment its own research, USDA consults with industry 
and Federal stakeholders to the Federal preferred procurement program 
during the development of the rulemaking packages for the designation 
of product categories. USDA consults with stakeholders to gather 
information used in determining the order of product category 
designation and in identifying: Manufacturers producing and marketing 
products that are categorized within a product category proposed for 
designation; performance standards used by Federal agencies evaluating 
products to be procured; and warranty information used by manufacturers 
of end user equipment and other products with regard to biobased 
products.

III. Summary of Today's Proposed Rule

    USDA is proposing to designate the following product categories for 
Federal preferred procurement: Intermediates--Plastic Resins; 
Intermediates--Chemicals; Intermediates--Paint and Coating Components; 
Intermediates--Textile Processing Materials; Intermediates--Foams; 
Intermediates--Fibers and Fabrics; Intermediates--Lubricant Components; 
Intermediates--Binders; Intermediates--Cleaner Components; 
Intermediates--Personal Care Product Components; Intermediates--Oils, 
Fats, and Waxes; and Intermediates--Rubber Materials. In addition, USDA 
is proposing a minimum biobased content for each of these product 
categories and subcategories. Lastly, USDA is proposing a date by which 
Federal agencies must incorporate these designated product categories 
into their procurement specifications (see Section IV.E).
    USDA is working with manufacturers and vendors to make all relevant 
product and manufacturer contact information available on the 
BioPreferred Program's Web site. Steps USDA has implemented, or will 
implement, include: Making direct contact with submitting companies 
through email and phone conversations to encourage completion of 
product listing; coordinating outreach efforts with intermediate 
material producers to encourage participation of their customer base; 
conducting targeted outreach with industry and commodity groups to 
educate stakeholders on the importance of providing complete product 
information; participating in industry conferences and meetings to 
educate companies on program benefits

[[Page 4210]]

and requirements; and communicating the potential for expanded markets 
beyond the Federal government, to include State and local governments, 
as well as the general public markets. Section V provides instructions 
to agencies on how to obtain this information on products within these 
product categories through the BioPreferred Program's Web site: http://www.biopreferred.gov.
    Comments. USDA invites public comment on the proposed designation 
of these intermediate ingredient product categories, including the 
definition, proposed minimum biobased content, and any of the relevant 
analyses performed during their selection. In addition, USDA invites 
comments and information in the following areas:
    1. We have attempted to identify relevant and appropriate 
performance standards and other relevant measures of performance for 
each of the proposed product categories. If you know of other such 
standards or relevant measures of performance for any of the proposed 
product categories, USDA requests that you submit information 
identifying such standards and measures, including their name (and 
other identifying information as necessary), identifying who is using 
the standard/measure, and describing the circumstances under which the 
product is being used.
    2. Many biobased products within the product categories being 
proposed for designation will have positive environmental and human 
health attributes. USDA is seeking comments on such attributes in order 
to provide additional information on the BioPreferred Program's Web 
site. This information will then be available to Federal procuring 
agencies and will assist them in making informed sustainable 
procurement decisions. When possible, please provide appropriate 
documentation to support the environmental and human health attributes 
you describe.
    3. Some product categories being proposed for designation today 
have wide ranges of tested biobased contents. For the reasons discussed 
later in this preamble, USDA is proposing a minimum biobased content 
for these product categories that would allow most of the tested 
products to be eligible for Federal preferred procurement. USDA 
welcomes comments on the appropriateness of the proposed minimum 
biobased contents for these product categories and whether there are 
potential subcategories within the product categories that should be 
considered.
    4. Today's proposed rule is expected to have both positive and 
negative impacts on individual businesses, including small businesses. 
USDA anticipates that the biobased Federal preferred procurement 
program will provide additional opportunities for businesses and 
manufacturers to begin supplying products under the proposed designated 
biobased product categories to Federal agencies and their contractors. 
However, other businesses and manufacturers that supply only non-
qualifying products and do not offer biobased alternatives may 
experience a decrease in demand from Federal agencies and their 
contractors. Because USDA has been unable to determine the number of 
businesses, including small businesses, which may be adversely affected 
by today's proposed rule USDA requests comment on how many small 
entities may be affected by this rule and on the nature and extent of 
that effect.
    All comments should be submitted as directed in the ADDRESSES 
section above.
    5. As stated in Section II of today's proposed rule, USDA will soon 
propose designating product categories comprised of finished products 
made from intermediate ingredients that may be categorized within the 
product categories proposed for designation in today's rule. Therefore, 
USDA requests manufacturers and members of the public to submit 
technical information related to the designation of such finished 
product categories to [email protected]. Specific 
technical information to submit includes the following: A finished 
product category name, descriptions of finished products that belong in 
this product category, how these finished products are used, any 
special features of these finished products, estimated or tested 
biobased contents for each finished product, applicable performance 
standards that the finished products meet, and which intermediate 
ingredient and feedstock categories are used to make these finished 
products. Such information will be valuable in supporting the selection 
of product categories for designation but will be evaluated 
independently from today's proposed rule. Please refer to Section IV.B. 
of today's proposed rule for further details on the information 
required to designate product categories for Federal procurement 
preference.

IV. Designation of Product Categories, Minimum Biobased Contents, and 
Time Frame

A. Background

    When designating product categories for Federal preferred 
procurement, section 9002 requires USDA to consider: (1) The 
availability of biobased products within the product categories and (2) 
the economic and technological feasibility of using those products.
    In considering a product's availability, USDA uses several sources 
of information. The primary source of information for the product 
categories being proposed for designation is USDA's database of 
manufacturers and products that have been certified to display the USDA 
Certified Biobased Product label. In addition, USDA performs Internet 
searches, contacts trade associations and commodity groups, and 
contacts manufacturers and vendors to identify those with biobased 
products within product categories being considered for designation. 
USDA uses the results of these same searches to determine if a product 
category is generally available.
    In considering a product category's economic and technological 
feasibility, USDA examines evidence pointing to the general commercial 
use of a product and its life-cycle cost and performance 
characteristics. This information is obtained from the sources used to 
assess a product's availability. Commercial use, in turn, is evidenced 
by any manufacturer and vendor information on the availability, 
relative prices, and performance of their products as well as by 
evidence of a product being purchased by a procuring agency or other 
entity, where available. In sum, USDA considers a product category 
economically and technologically feasible for purposes of designation 
if products within that product category are being offered and used in 
the marketplace.
    As discussed earlier, USDA has implemented, or will implement, 
several steps intended to educate the manufacturers and other 
stakeholders on the benefits of this program and the need to make 
relevant information, including manufacturer contact information, 
available to procurement officials via the BioPreferred Program Web 
site. Additional information on specific products within the product 
categories proposed for designation may also be obtained directly from 
the manufacturers of the products. USDA has also provided information 
on the BioPreferred Program Web site for manufacturers and vendors who 
wish to position their businesses as biobased product vendors to the 
Federal Government. This information can be accessed by clicking on the 
``Selling Biobased'' tab on the left side of the home page of the 
BioPreferred Program's Web site.

[[Page 4211]]

    USDA recognizes that information related to the functional 
performance of biobased products is a primary factor in making the 
decision to purchase these products. USDA is gathering information on 
industry standard test methods and performance standards that 
manufacturers are using to evaluate the functional performance of their 
products. (Test methods are procedures used to provide information on a 
certain attribute of a product. For example, a test method might 
determine how many bacteria are killed. Performance standards identify 
the level at which a product must perform in order for it to be 
``acceptable'' to the entity that set the performance standard. For 
example, a performance standard might require that a certain percentage 
(e.g., 95 percent) of bacteria must be killed through the use of the 
product.) The primary sources of information on these test methods and 
performance standards are manufacturers of biobased products within 
these product categories. Additional test methods and performance 
standards are also identified during meetings of the interagency 
council and during the review process for each proposed rule. We have 
listed, under the detailed discussion of each product category proposed 
for designation (presented in Section IV.B), the functional performance 
test methods, performance standards, product certifications, and other 
measures of performance associated with the functional aspects of 
products identified during the development of this Federal Register 
notice for these product categories.
    While this process identifies many of the relevant test methods and 
standards, USDA recognizes that those identified herein do not 
represent all of the methods and standards that may be applicable for a 
product category or for any individual product within the category. As 
noted earlier in this preamble, USDA is requesting identification of 
other relevant performance standards and measures of performance. As 
the program becomes fully implemented, these and other additional 
relevant performance standards will be available on the BioPreferred 
Program's Web site.
    To propose a product category for designation, USDA must have 
sufficient information on a sufficient number of products within the 
category to be able to assess its availability and its economic and 
technological feasibility. For some product categories, there may be 
numerous products available. For others, there may be very few products 
currently available. Given the infancy of the market for some product 
categories, it is expected that categories with only a single product 
will be identified.
    Further, given that the intent of section 9002 is largely to 
stimulate the production of new biobased products and to energize 
emerging markets for those products, USDA has determined it is 
appropriate to designate a product category or subcategory for Federal 
preferred procurement even when there is only a single product with a 
single supplier. Similarly, the documented availability and benefits of 
even a very small percentage of all products that may exist within a 
product category are also considered sufficient to support designation.
    Exemptions. Products that are exempt from the biobased procurement 
preference are military equipment, defined as any product or system 
designed or procured for combat or combat-related missions, and 
spacecraft systems and launch support equipment. However, USDA points 
out that it is not the intent of these exemptions to imply that 
biobased products are inferior to non-biobased products and agencies 
are encouraged to purchase biobased products wherever performance, 
availability and reasonable price indicates that such purchases are 
justified.
    Although each product category in today's proposed rule would be 
exempt from the procurement preference requirement when used in 
spacecraft systems or launch support application or in military 
equipment used in combat and combat-related applications, this 
exemption does not extend to contractors performing work other than 
direct maintenance and support of the spacecraft or launch support 
equipment or combat or combat-related missions. For example, if a 
contractor is applying a paint remover product as a step in 
refurbishing office furniture on a military base, the paint remover the 
contractor purchases should be a qualifying biobased paint remover. The 
exemption does apply, however, if the product being purchased by the 
contractor is for use in combat or combat-related missions or for use 
in space or launch applications. After reviewing the regulatory 
requirement and the relevant contract, where contractors have any 
questions on the exemption, they should contact the cognizant 
contracting officer.

B. Product Categories and Minimum Biobased Contents Proposed for 
Designation

    In today's proposed rule, USDA is proposing to designate the 
following product categories for the Federal preferred procurement 
program: Intermediates--Plastic Resins; Intermediates--Chemicals; 
Intermediates--Paint and Coating Components; Intermediates--Textile 
Processing Materials; Intermediates--Foams; Intermediates--Fibers and 
Fabrics; Intermediates--Lubricant Components; Intermediates--Binders; 
Intermediates--Cleaner Components; Intermediates--Personal Care Product 
Components; Intermediates--Oils, Fats, and Waxes; and Intermediates--
Rubber Materials.
    USDA has determined that each of these product categories meets the 
necessary statutory requirements--namely, that they are being produced 
with biobased materials and that their procurement by procuring 
agencies will carry out the following objectives of section 9002:
     To increase demand for biobased products, which would in 
turn increase demand for agricultural commodities that can serve as 
feedstocks for the production of biobased products;
     To spur development of the industrial base through value-
added agricultural processing and manufacturing in rural communities; 
and
     To enhance the Nation's energy security by substituting 
biobased products for products derived from imported oil and natural 
gas.
    Further, USDA anticipates that the designation of these 
intermediate ingredient product categories will facilitate the 
designation of the many categories of finished consumer products that 
are made from these biobased intermediate ingredients. This designation 
of finished products made from designated ingredients was one key 
addition to Section 9002 made by the 2008 Farm Bill.
    In addition, because of the participation by the manufacturers of 
these products in the voluntary labeling initiative, USDA has 
sufficient information on these product categories to determine their 
availability and to conduct the requisite analyses to determine their 
biobased content and their economic and technological feasibility.
    The proposed designated product categories are discussed in the 
following sections.
1. Intermediates--Plastic Resins (Minimum Biobased Content 22 Percent)
    Intermediates--Plastic Resins are materials that are typically 
viscous liquids with the ability to harden permanently and may exist in 
liquid or solid (powder or pellets) states. Intermediates--Plastic 
Resins may be

[[Page 4212]]

used in a variety of finished products neat, consisting of a single 
resin, or as a homogeneous blend of two or more neat resins, or 
composite, containing two or more distinct materials such as fiber-
reinforced resins. Additionally, Intermediates--Plastic Resins may be 
used in finished products as additives such as plasticizers, pigments, 
thermal stability agents, or impact modifiers.
    USDA identified 62 manufacturers and suppliers of 150 biobased 
Intermediates--Plastic Resins. These manufacturers and suppliers do not 
include all manufacturers and suppliers of biobased Intermediates--
Plastic Resins, merely those identified through the USDA Certified 
Biobased Products in the BioPreferred Program's database. These 150 
biobased Intermediates--Plastic Resins range in biobased content from 
25 percent to 100 percent, as measured by ASTM D6866. In establishing 
the minimum biobased content requirement for this product category, 
USDA did not find a reason to exclude any of the products categorized 
as Intermediates--Plastic Resins. Thus, the proposed minimum biobased 
content for this product category is 22 percent, based on the products 
with a tested biobased content of 25 percent.
    Information supplied by these manufacturers and suppliers indicates 
that these products are being used commercially. In addition, some of 
these manufacturers and suppliers identified nine test methods (as 
shown below) used in evaluating products within the product category. 
While there may be additional test methods, as well as performance 
standards, product certifications, and other measures of performance, 
applicable to products within this product category, the test methods 
identified by the manufacturers and suppliers include:
     ASTM D256; Standard Test Methods for Determining the Izod 
Pendulum Impact Resistance of Plastics,
     ASTM D638; Standard Test Method for Tensile Properties of 
Plastics,
     ASTM D790; Standard Test Methods for Flexural Properties 
of Unreinforced and Reinforced Plastics and Electrical Insulating 
Materials,
     ASTM D882; Standard Test Method for Tensile Properties of 
Thin Plastic Sheeting,
     ASTM D6400; Standard Specification for Labeling of 
Plastics Designed to be Aerobically Composted in Municipal or 
Industrial Facilities,
     ASTM D6868; Standard Specification for Labeling of End 
Items that Incorporate Plastics and Polymers as Coatings or Additives 
with Paper and Other Substrates Designed to be Aerobically Composted in 
Municipal or Industrial Facilities,
     BPI Certification; Compostable in Municipal and Industrial 
Composting Facilities
     ISO 9001; Quality Management Systems--Requirements, and
     Vin[ccedil]otte; OK COMPOST.
    USDA has been unable to obtain data on the amount of 
Intermediates--Plastic Resins purchased by Federal procuring agencies. 
As discussed earlier, the primary benefit of designating intermediate 
ingredient product categories is not to promote their direct purchase 
by Federal agencies but, rather, to establish the framework for 
designation of the extensive number of finished products that are made 
from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics has been 
collected on 150 Intermediates--Plastic Resins and may be found on the 
BioPreferred Program's Web site.
2. Intermediates--Chemicals (Minimum Biobased Content: 22 Percent)
    Intermediates--Chemicals are those used as reactants for organic 
synthesis reactions rather than for their functional properties in a 
chemical mixture; those used as building block chemicals and secondary 
chemicals such as glycerol, succinic acid, propanediol, and monomers 
such as lactic acid and propylene; those used for specific functional 
properties during manufacturing of other products such as pH 
regulators, flocculants, precipitants, neutralizing agents, 
emulsifiers, detergents, wetting agents, foaming agents, or 
dispersants; those that are added to end-use products for their 
specific functional properties including solvents for thinning and 
drying applications but excluding solvents used for cleaning; and those 
used for dyes, pigments, and scents including flavorings for non-food 
products such as lip balm.
    USDA identified 27 manufacturers and suppliers of 70 biobased 
Intermediates--Chemicals. These 27 manufacturers and suppliers do not 
necessarily include all manufacturers and suppliers of Intermediates--
Chemicals, merely those identified through the USDA Certified Biobased 
Products in the BioPreferred Program's database. These 70 biobased 
Intermediates--Chemicals range in biobased content from 25 percent to 
100 percent, as measured by ASTM D6866. In establishing the minimum 
biobased content requirement for this product category, USDA did not 
find a reason to exclude any of the products categorized as 
Intermediates--Chemicals. Thus, the proposed minimum biobased content 
for this product category is 22 percent, based on the products with a 
tested biobased content of 25 percent.
    Relevant product information supplied by these manufacturers and 
suppliers indicates that these products are being used commercially. 
However, these 27 manufacturers and suppliers did not identify any 
applicable performance standards, test methods, or other industry 
measures of performance against which these products have been tested. 
USDA points out that the lack of identified performance standards is 
not relevant to the designation of a product category for Federal 
preferred procurement because it is not one of the criteria section 
9002 requires USDA to consider in order to designate a product category 
for Federal preferred procurement. If and when performance standards, 
test methods, and other relevant measures of performance are identified 
for this product category, USDA will provide such information on the 
BioPreferred Program's Web site.
    USDA has been unable to obtain data on the amount of 
Intermediates--Chemicals purchased by Federal procuring agencies. As 
discussed earlier, the primary benefit of designating intermediate 
ingredient product categories is not to promote their direct purchase 
by Federal agencies but, rather, to establish the framework for 
designation of the extensive number of finished products that are made 
from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on these 70 Intermediate--Chemicals products and is available 
on the BioPreferred Program's Web site.
3. Intermediates--Paint and Coating Components (Minimum Biobased 
Content 22 Percent)
    Intermediates--Paint and Coating Components are ingredients used to 
formulate finished waterborne or solvent borne paint and coating 
products. Examples of Intermediates--Paint and Coating Components 
include binders, pigments thickeners, curing agents, modifiers, alkyd 
latex resins, polyols, reactive oligomers, or reactive diluents.
    USDA identified 13 manufacturers and suppliers of 51 biobased 
Intermediates--Paint and Coating Components. These manufacturers and 
suppliers do not include all manufacturers and suppliers of biobased

[[Page 4213]]

Intermediates--Paint and Coating Components, merely those identified 
through the USDA Certified Biobased Products in the BioPreferred 
Program's database. These 51 biobased Intermediates--Paint and Coating 
Components range in biobased content from 25 percent to 100 percent, as 
measured by ASTM D6866. In establishing the minimum biobased content 
requirement for this product category, USDA did not find a reason to 
exclude any of the products categorized as Intermediates--Paint and 
Coating Components. Thus, the proposed minimum biobased content for 
this product category is 22 percent, based on the products with a 
tested biobased content of 25 percent.
    Information supplied by these manufacturers and suppliers indicates 
that these products are being used commercially. However, these 
manufacturers and suppliers did not identify any applicable performance 
standards, test methods, or other industry measures of performance 
against which these products have been tested. USDA points out that the 
lack of identified performance standards is not relevant to the 
designation of a product category for Federal preferred procurement 
because it is not one of the criteria section 9002 requires USDA to 
consider in order to designate a product category for Federal preferred 
procurement. If and when performance standards, test methods, and other 
relevant measures of performance are identified for this product 
category, USDA will provide such information on the BioPreferred 
Program's Web site.
    USDA has been unable to obtain data on the amount of 
Intermediates--Paint and Coating Components purchased by Federal 
procuring agencies. As discussed earlier, the primary benefit of 
designating intermediate ingredient product categories is not to 
promote their direct purchase by Federal agencies but, rather, to 
establish the framework for designation of the extensive number of 
finished products that are made from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics has been 
collected on these 51 Intermediates--Paint and Coating Components and 
may be found on the BioPreferred Program's Web site.
4. Intermediates--Textile Processing Materials (Minimum Biobased 
Content 22 Percent)
    Intermediates--Textile Processing Materials are used to treat or 
finish textiles for the purposes of altering textile characteristics 
such as color, fading, wrinkle resistance, texture, or moisture 
management.
    USDA identified four manufacturers and suppliers of 24 biobased 
Intermediates--Textile Processing Materials. These manufacturers and 
suppliers do not include all manufacturers and suppliers of biobased 
Intermediates--Textile Processing Materials, merely those identified 
through the USDA Certified Biobased Products in the BioPreferred 
Program's database. These 24 biobased Intermediates--Textile Processing 
Materials range in biobased content from 25 percent to 98 percent, as 
measured by ASTM D6866. In establishing the minimum biobased content 
requirement for this product category, USDA did not find a reason to 
exclude any of the products categorized as Intermediates--Textile 
Processing Materials. Thus, the proposed minimum biobased content for 
this product category is 22 percent, based on the products with a 
tested biobased content of 25 percent.
    Information supplied by these manufacturers and suppliers indicates 
that these products are being used commercially. However, these 
manufacturers and suppliers did not identify any applicable performance 
standards, test methods, or other industry measures of performance 
against which these products have been tested. USDA points out that the 
lack of identified performance standards is not relevant to the 
designation of a product category for Federal preferred procurement 
because it is not one of the criteria section 9002 requires USDA to 
consider in order to designate a product category for Federal preferred 
procurement. If and when performance standards, test methods, and other 
relevant measures of performance are identified for this product 
category, USDA will provide such information on the BioPreferred 
Program's Web site.
    USDA has been unable to obtain data on the amount of 
Intermediates--Textile Processing Materials purchased by Federal 
procuring agencies. As discussed earlier, the primary benefit of 
designating intermediate ingredient product categories is not to 
promote their direct purchase by Federal agencies but, rather, to 
establish the framework for designation of the extensive number of 
finished products that are made from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on these 24 Intermediates--Textile Processing Materials and 
may be found on the BioPreferred Program's Web site.
5. Intermediates--Foams (Minimum Biobased Content 22 Percent)
    Intermediates--Foams are dry polymer foams used for non-
construction purposes, such as cushions for furniture.
    USDA identified seven manufacturers and suppliers of eight biobased 
Intermediates--Foams. These manufacturers and suppliers do not include 
all manufacturers and suppliers of biobased Intermediates--Foams, 
merely those identified through the USDA Certified Biobased Products in 
the BioPreferred Program's database. These eight biobased 
Intermediates--Foams were each measured by ASTM D6866 to have 25, 30, 
30, 33, 33, 40, 53, and 53 percent biobased contents. In establishing 
the minimum biobased content requirement for this product category, 
USDA did not find a reason to exclude any of the products categorized 
as Intermediates--Foams. Thus, the proposed minimum biobased content 
for this product category is 22 percent, based on the product with a 
tested biobased content of 25 percent.
    Information supplied by these manufacturers and suppliers indicates 
that these products are being used commercially. In addition, some of 
these manufacturers and suppliers identified three test methods (as 
shown below) used in evaluating products within the product category. 
While there may be additional test methods, as well as performance 
standards, product certifications, and other measures of performance, 
applicable to products within this product category, the test methods 
identified by the manufacturers and suppliers include:
     ASTM D97; Standard Test Method for Pour Point of Petroleum 
Products,
     ASTM D6868; Standard Specification for Labeling of End 
Items that Incorporate Plastics and Polymers as Coatings or Additives 
with Paper and Other Substrates Designed to be Aerobically Composted in 
Municipal or Industrial Facilities, and
     California Technical Bulletin 117; Requirements, Test 
Procedure and Apparatus for Testing the Flame Retardance of Resilient 
Filling Materials Used In Upholstered Furniture.
    USDA has been unable to obtain data on the amount of 
Intermediates--Foams purchased by Federal procuring agencies. As 
discussed earlier, the primary benefit of designating intermediate 
ingredient product categories is not to promote their direct purchase 
by Federal agencies but, rather, to establish the framework for

[[Page 4214]]

designation of the extensive number of finished products that are made 
from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on these eight Intermediates--Foams and may be found on the 
BioPreferred Program's Web site.
6. Intermediates--Fibers and Fabrics (Minimum Biobased Content 25 
Percent)
    Intermediates--Fibers and Fabrics encompasses plant and animal 
fibers, fibers made from plant-derived polymers that are not yet formed 
into more complex products such as carpet or fabrics, fabrics made from 
natural fibers, fabrics made from synthetic fibers, or fabrics made 
from a blend of the two. These materials are used to manufacture 
finished products such as clothing, upholstery, or drapes.
    USDA identified 16 manufacturers and suppliers of 48 biobased 
Intermediates--Fibers and Fabrics. These manufacturers and suppliers do 
not include all manufacturers and suppliers of biobased Intermediates--
Fibers and Fabrics, merely those identified through the USDA Certified 
Biobased Products in the BioPreferred Program's database. These 48 
biobased Intermediates--Fibers and Fabrics range in biobased content 
from 28 percent to 100 percent, as measured by ASTM D6866. In 
establishing the minimum biobased content requirement for this product 
category, USDA did not find a reason to exclude any of the products 
categorized as Intermediates--Fibers and Fabrics. Thus, the proposed 
minimum biobased content for this product category is 25 percent, based 
on the product with a tested biobased content of 28 percent.
    Information supplied by these manufacturers and suppliers indicates 
that these products are being used commercially. In addition, some of 
these manufacturers and suppliers identified seven test methods (as 
shown below) used in evaluating products within the product category. 
While there may be additional test methods, as well as performance 
standards, product certifications, and other measures of performance, 
applicable to products within this product category, the test methods 
identified by the manufacturers and suppliers include:
     AATCC 79; Absorbency of Textiles,
     AATCC 197; Vertical Wicking of Textiles,
     AATCC 198; Horizontal Wicking of Textiles,
     ACT Physical Properties Performance Guidelines,
     ASTM D737; Standard Test Method for Air Permeability of 
Textile Fabrics,
     ASTM D6868; Standard Specification for Labeling of End 
Items that Incorporate Plastics and Polymers as Coatings or Additives 
with Paper and Other Substrates Designed to be Aerobically Composted in 
Municipal or Industrial Facilities, and
     Oeko-Tex Standard 100; Tests for Harmful Substances in 
Textiles.
    USDA has been unable to obtain data on the amount of 
Intermediates--Fibers and Fabrics purchased by Federal procuring 
agencies. As discussed earlier, the primary benefit of designating 
intermediate ingredient product categories is not to promote their 
direct purchase by Federal agencies but, rather, to establish the 
framework for designation of the extensive number of finished products 
that are made from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on 48 Intermediates--Fibers and Fabrics and may be found on 
the BioPreferred Program's Web site.
7. Intermediates--Lubricant Components (Minimum Biobased Content 44 
Percent)
    Intermediates--Lubricant Components are ingredients that used 
specifically to formulate finished lubricant products. Examples of 
Intermediates--Lubricant Components include base oils, base fluids, 
additives, or friction modifiers.
    USDA identified nine manufacturers and suppliers of 35 biobased 
Intermediates--Lubricant Components. These manufacturers and suppliers 
do not include all manufacturers and suppliers of biobased 
Intermediates--Lubricant Components, merely those identified through 
the USDA Certified Biobased Products in the BioPreferred Program's 
database. These 35 biobased Intermediates--Lubricant Components range 
in biobased content from 47 percent to 100 percent, as measured by ASTM 
D6866. In establishing the minimum biobased content requirement for 
this product category, USDA did not find a reason to exclude any of the 
products categorized as Intermediates--Lubricants. Thus, the proposed 
minimum biobased content for this product category is 44 percent, based 
on the products with a tested biobased content of 47 percent.
    Information supplied by these manufacturers and suppliers indicates 
that these products are being used commercially. In addition, one of 
these manufacturers and suppliers identified one test method used in 
evaluating products within the product category. While there may be 
additional test methods, as well as performance standards, product 
certifications, and other measures of performance, applicable to 
products within this product category, the test method identified by 
the manufacturer and supplier is NSF H1 Nonfood Compound Product 
Registration Program.
    USDA has been unable to obtain data on the amount of 
Intermediates--Lubricant Components purchased by Federal procuring 
agencies. As discussed earlier, the primary benefit of designating 
intermediate ingredient product categories is not to promote their 
direct purchase by Federal agencies but, rather, to establish the 
framework for designation of the extensive number of finished products 
that are made from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on these 35 Intermediates--Lubricant Components and may be 
found on the BioPreferred Program's Web site.
8. Intermediates--Binders (Minimum Biobased Content 47 Percent)
    Intermediates--Binders are materials used to provide cohesiveness 
throughout an entire finished product. The product category does not 
include adhesives and glues that are finished products used to attach 
the surfaces of two or more distinct and separate components to one 
another.
    USDA identified one manufacturer and supplier of one biobased 
Intermediates--Binders. This manufacturer and supplier is not expected 
to be the only manufacturer and supplier of biobased Intermediates--
Binders, merely the only one that was identified through the USDA 
Certified Biobased Products in the BioPreferred Program's database. The 
biobased content of this Intermediates--Binders product is 50 percent, 
as measured by ASTM D6866. As discussed earlier, the tested value was 
reduced by 3 percentage points to account for the inherent variability 
in the test method. Thus, the proposed minimum biobased content for 
this product category is 47 percent.
    Information supplied by this manufacturer indicates that this 
product is being used commercially. However, this manufacturer and 
supplier did not identify any applicable performance

[[Page 4215]]

standards, test methods, or other industry measures of performance 
against which this product has been tested. USDA points out that the 
lack of identified performance standards is not relevant to the 
designation of a product category for Federal preferred procurement 
because it is not one of the criteria section 9002 requires USDA to 
consider in order to designate a product category for Federal preferred 
procurement. If and when performance standards, test methods, and other 
relevant measures of performance are identified for this product 
category, USDA will provide such information on the BioPreferred 
Program's Web site.
    USDA has been unable to obtain data on the amount of 
Intermediates--Binders purchased by Federal procuring agencies. As 
discussed earlier, the primary benefit of designating intermediate 
ingredient product categories is not to promote their direct purchase 
by Federal agencies but, rather, to establish the framework for 
designation of the extensive number of finished products that are made 
from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on this one Intermediates--Binders product and may be found 
on the BioPreferred Program's Web site.
9. Intermediates--Cleaner Components (Minimum Biobased Content 55 
Percent)
    Intermediates--Cleaner Components are intermediate ingredients used 
specifically for formulating finished cleaning products. Examples of 
Intermediates--Cleaner Components include chelating agents, 
surfactants, hydrotropes, fatty acids, or solvents.
    USDA identified eight manufacturers and suppliers of 19 different 
biobased Intermediates--Cleaner Components. These eight manufacturers 
and suppliers do not necessarily include all manufacturers and 
suppliers of biobased Intermediates--Cleaner Components, merely those 
identified through the USDA Certified Biobased Products in the 
BioPreferred Program's database. These 19 biobased Intermediates--
Cleaner Components range in biobased content from 58 percent to 99 
percent, as measured by ASTM D6866. In establishing the minimum 
biobased content requirement for this product category, USDA did not 
find a reason to exclude any of the products categorized as 
Intermediates--Cleaner Components. Thus, the proposed minimum biobased 
content for this product category is 55 percent, based on the products 
with a tested biobased content of 58 percent.
    Information supplied by these manufacturers and suppliers indicates 
that these products are being used commercially. In addition, one of 
the manufacturers and suppliers identified five test methods (as shown 
below) used in evaluating its product within the product category. 
While there may be additional test methods, as well as performance 
standards, product certifications, and other measures of performance, 
applicable to products within this product category, the test methods 
identified by the manufacturer and supplier include:
     ASTM D93; Standard Test Methods for Flash Point by Pensky-
Martens Closed Cup Tester,
     ASTM D1133; Standard Test Method for Kauri-Butanol Value 
of Hydrocarbon Solvents,
     ASTM D2887; Standard Test Method for Boiling Range 
Distribution of Petroleum Fractions by Gas Chromatography, and
     EPA Method 24; Determination of Volatile Matter Content, 
Water Content, Density, Volume Solids, and Weight Solids of Surface 
Coatings.
    USDA has been unable to obtain data on the amount of 
Intermediates--Cleaner Components purchased by Federal procuring 
agencies. As discussed earlier, the primary benefit of designating 
intermediate ingredient product categories is not to promote their 
direct purchase by Federal agencies but, rather, to establish the 
framework for designation of the extensive number of finished products 
that are made from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on these 19 Intermediates--Cleaner Components and may be 
found on the BioPreferred Program's Web site.
10. Intermediates--Personal Care Product Components (Minimum Biobased 
Content 62 Percent)
    Intermediates--Personal Care Product Components are ingredients 
used to formulate finished personal care products. Examples of 
Intermediates--Personal Care Product Components include surfactants, 
oils, humectants, emollients, or emulsifiers.
    USDA identified nine manufacturers and suppliers of 37 biobased 
Intermediates--Personal Care Product Components. These manufacturers 
and suppliers do not include all manufacturers and suppliers of 
biobased Intermediates--Personal Care Product Components, merely those 
identified through the USDA Certified Biobased Products in the 
BioPreferred Program's database. These 37 biobased Intermediates--
Personal Care Product Components range in biobased content from 65 
percent to 100 percent, as measured by ASTM D6866. In establishing the 
minimum biobased content requirement for this product category, USDA 
did not find a reason to exclude any of the products categorized as 
Intermediates--Personal Care Product Components. Thus, the proposed 
minimum biobased content for this product category is 62 percent, based 
on the products with a tested biobased content of 65 percent.
    Information supplied by these manufacturers and suppliers indicates 
that these products are being used commercially. In addition, some 
these manufacturers and suppliers identified 3 test methods (as shown 
below) used in evaluating products within the product category. While 
there may be additional test methods, as well as performance standards, 
product certifications, and other measures of performance, applicable 
to products within this product category, the test methods identified 
by the manufacturers and suppliers include:
     ASTM D6868; Standard Specification for Labeling of End 
Items that Incorporate Plastics and Polymers as Coatings or Additives 
with Paper and Other Substrates Designed to be Aerobically Composted in 
Municipal or Industrial Facilities, and
     EPA Method 24; Determination of Volatile Matter Content, 
Water Content, Density, Volume Solids, and Weight Solids of Surface 
Coatings.
    USDA has been unable to obtain data on the amount of 
Intermediates--Personal Care Product Components purchased by Federal 
procuring agencies. As discussed earlier, the primary benefit of 
designating intermediate ingredient product categories is not to 
promote their direct purchase by Federal agencies but, rather, to 
establish the framework for designation of the extensive number of 
finished products that are made from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on 37 Intermediates--Personal Care Product Components and may 
be found on the BioPreferred Program's Web site.

[[Page 4216]]

11. Intermediates--Oils, Fats, and Waxes (Minimum Biobased Content 65 
Percent)
    Intermediates--Oils, Fats, and Waxes include raw or modified fats 
and oils derived from plants or animals.
    USDA identified five manufacturers and suppliers of 24 biobased 
Intermediates--Oils, Fats, and Waxes. These manufacturers and suppliers 
do not include all manufacturers and suppliers of biobased 
Intermediates--Oils, Fats, and Waxes, merely those identified through 
the USDA Certified Biobased Products in the BioPreferred Program's 
database. These 24 biobased Intermediates--Oils, Fats, and Waxes range 
in biobased content from 68 percent to 100 percent, as measured by ASTM 
D6866. In establishing the minimum biobased content requirement for 
this product category, USDA did not find a reason to exclude any of the 
products categorized as Intermediates--Oils, Fats, and Waxes. Thus, the 
proposed minimum biobased content for this product category is 65 
percent, based on the products with a tested biobased content of 68 
percent.
    Information supplied by these manufacturers and suppliers indicates 
that these products are being used commercially. In addition, one of 
these manufacturers and suppliers identified one test method used in 
evaluating a product within the product category. While there may be 
additional test methods, as well as performance standards, product 
certifications, and other measures of performance, applicable to 
products within this product category, the test method identified by 
the manufacturer and supplier is California Technical Bulletin 117.
    USDA has been unable to obtain data on the amount of 
Intermediates--Oils, Fats, and Waxes purchased by Federal procuring 
agencies. As discussed earlier, the primary benefit of designating 
intermediate ingredient product categories is not to promote their 
direct purchase by Federal agencies but, rather, to establish the 
framework for designation of the extensive number of finished products 
that are made from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on these 24 Intermediates--Oils, Fats, and Waxes and may be 
found on the BioPreferred Program's Web site.
12. Intermediates--Rubber Materials (Minimum Biobased Content 96 
Percent)
    Intermediates--Rubber Materials are used in finished products such 
as rubber gloves, vehicle tires, footwear, sports apparel and 
equipment, bedding and pillow foams, tubing, catheters, gasketing, or 
cosmetic adhesives and bases.
    USDA identified one manufacturer and supplier of two biobased 
Intermediates--Rubber Materials. This manufacturer and supplier is not 
expected to be the only manufacturer and supplier of biobased 
Intermediates--Rubber Materials, merely the only one identified through 
the USDA Certified Biobased Products in the BioPreferred Program's 
database. These two biobased Intermediates--Rubber Materials have 
biobased contents of 99 percent and 100 percent, as measured by ASTM 
D6866. In establishing the minimum biobased content requirement for 
this product category, USDA did not find a reason to exclude any of the 
products categorized as Intermediates--Rubber Materials. Thus, the 
proposed minimum biobased content for this product category is 96 
percent, based on the products with a tested biobased content of 99 
percent.
    The Information supplied by this manufacturer and supplier 
indicates that these products are being used commercially. However, 
this manufacturer and supplier did not identify any applicable 
performance standards, test methods, or other industry measures of 
performance against which these products have been tested. USDA points 
out that the lack of identified performance standards is not relevant 
to the designation of a product category for Federal preferred 
procurement because it is not one of the criteria section 9002 requires 
USDA to consider in order to designate a product category for Federal 
preferred procurement. If and when performance standards, test methods, 
and other relevant measures of performance are identified for this 
product category, USDA will provide such information on the 
BioPreferred Program's Web site.
    USDA has been unable to obtain data on the amount of 
Intermediates--Rubber Materials purchased by Federal procuring 
agencies. As discussed earlier, the primary benefit of designating 
intermediate ingredient product categories is not to promote their 
direct purchase by Federal agencies but, rather, to establish the 
framework for designation of the extensive number of finished products 
that are made from these intermediate ingredients.
    Specific product information, including company contact, intended 
use, biobased content, and performance characteristics, has been 
collected on these two Intermediates--Rubber Materials and may be found 
on the BioPreferred Program's Web site.

C. Compliance Date for Procurement Preference and Incorporation Into 
Specifications

    USDA intends for the final rule to take effect thirty (30) days 
after publication of the final rule. USDA proposes that starting from 
the date of publication of the final rule, procuring agencies have a 
one-year transition period before the procurement preference for 
biobased products within a designated product category takes effect. 
This proposed timeframe is based on section 9002(a)(3)(B)(viii) of the 
2014 Farm Bill, which clearly provides a compliance date for amendments 
to the Guidelines of up to one year after publication of a final rule.
    Therefore, USDA is proposing a one-year period before the 
procurement preferences would take effect because, as indicated in 7 
CFR 3201.4(c), it recognizes that Federal agencies will need sufficient 
time to incorporate the preferences into procurement documents and to 
revise existing standardized specifications. Additionally, procuring 
agencies will need time to evaluate the economic and technological 
feasibility of the available biobased products for their agency-
specific uses and for compliance with agency-specific requirements.
    By the time these product categories are promulgated for 
designation, Federal agencies will have had a minimum of 18 months 
(from the date of this Federal Register notice), and much longer 
considering when the Guidelines were first proposed and these 
requirements were first laid out, to implement these requirements.
    Therefore, USDA proposes that the mandatory preference for biobased 
products under the designated product categories take effect one year 
after promulgation of the final rule, which will provide these agencies 
with ample time to evaluate the economic and technological feasibility 
of biobased products for a specific use and to revise the 
specifications accordingly. Some agencies may be able to complete these 
processes more expeditiously and not all uses will require extensive 
analysis or revision of existing specifications. Although it is 
allowing up to one year, USDA encourages procuring agencies to 
implement the procurement preferences

[[Page 4217]]

as early as practicable for procurement actions involving any of the 
designated product categories.

V. Where can agencies get more information on these USDA-designated 
product categories?

    The information used to develop this proposed rule was voluntarily 
submitted by the manufacturers of products that are categorized within 
the product categories being proposed. These manufacturers sought to 
participate in the BioPreferred Program's USDA Certified Biobased 
Product labeling initiative and submitted product information necessary 
for certification. Information on each of these products can be found 
on the BioPreferred Program's Web site (http://www.biopreferred.gov).
    Further, once the product category designations in today's proposal 
become final, manufacturers and vendors voluntarily may make available 
additional information on specific products for posting by the Agency 
on the BioPreferred Program's Web site. USDA has begun performing 
periodic audits of the information displayed on the BioPreferred 
Program's Web site and, where questions arise, is contacting the 
manufacturer or vendor to verify, correct, or remove incorrect or out-
of-date information. Procuring agencies should contact the 
manufacturers and vendors directly to discuss specific needs and to 
obtain detailed information on the availability and prices of biobased 
products meeting those needs.
    By accessing the BioPreferred Program's Web site, agencies may also 
be able to obtain any voluntarily-posted information on each product 
concerning: Relative price; life-cycle costs; hot links directly to a 
manufacturer's or vendor's Web site (if available); performance 
standards (industry, government, military, ASTM/ISO) that the product 
has been tested against; and environmental and public health 
information.

VI. Regulatory Information

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    Executive Order 12866, as supplemented by Executive Order 13563, 
requires agencies to determine whether a regulatory action is 
``significant.'' The Order defines a ``significant regulatory action'' 
as one that is likely to result in a rule that may: ``(1) Have an 
annual effect on the economy of $100 million or more or adversely 
affect, in a material way, the economy, a sector of the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities; (2) 
Create a serious inconsistency or otherwise interfere with an action 
taken or planned by another agency; (3) Materially alter the budgetary 
impact of entitlements, grants, user fees, or loan programs or the 
rights and obligations of recipients thereof; or (4) Raise novel legal 
or policy issues arising out of legal mandates, the President's 
priorities, or the principles set forth in this Executive Order.''
    Today's proposed rule has been determined by the Office of 
Management and Budget to be not significant for purposes of Executive 
Order 12866. We are not able to quantify the annual economic effect 
associated with today's proposed rule. USDA attempted to obtain 
information on the Federal agencies' usage within the 12 designated 
product categories. These efforts were largely unsuccessful. Therefore, 
attempts to determine the economic impacts of today's proposed rule 
would require estimation of the anticipated market penetration of 
biobased products based upon many assumptions. In addition, because 
agencies have the option of not purchasing products within designated 
product categories if price is ``unreasonable,'' the product is not 
readily available, or the product does not demonstrate necessary 
performance characteristics, certain assumptions may not be valid. 
While facing these quantitative challenges, USDA relied upon a 
qualitative assessment to determine the impacts of today's proposed 
rule. Consideration was also given to the fact that agencies may choose 
not to procure products within designated product categories due to 
unreasonable price.
1. Summary of Impacts
    Today's proposed rule is expected to have both positive and 
negative impacts to individual businesses, including small businesses. 
These positive and negative impacts are expected to be minimized 
because Federal agencies do not typically purchase significant 
quantities of the types of intermediate ingredient products that are 
the subject of today's proposed rule. However, USDA anticipates that 
the Federal preferred procurement program will ultimately provide 
additional opportunities for businesses and manufacturers to begin 
supplying products under the proposed designated biobased product 
categories to Federal agencies and their contractors. However, other 
businesses and manufacturers that supply only non-qualifying products 
and do not offer biobased alternatives may experience a decrease in 
demand from Federal agencies and their contractors. USDA is unable to 
determine the number of businesses, including small businesses, which 
may be adversely affected by today's proposed rule. The proposed rule, 
however, will not affect existing purchase orders, nor will it preclude 
businesses from modifying their product lines to meet new requirements 
for designated biobased products. Because the extent to which procuring 
agencies will find the performance, availability and/or price of 
biobased products acceptable is unknown, it is impossible to quantify 
the actual economic effect of the rule.
2. Benefits of the Proposed Rule
    The designation of these product categories provides the benefits 
outlined in the objectives of section 9002; to increase domestic demand 
for many agricultural commodities that can serve as feedstocks for 
production of biobased products, and to spur development of the 
industrial base through value-added agricultural processing and 
manufacturing in rural communities. On a national and regional level, 
today's proposed rule can result in expanding and strengthening markets 
for biobased materials used in these product categories.
3. Costs of the Proposed Rule
    Like the benefits, the costs of today's proposed rule have not been 
quantified. Two types of costs are involved: Costs to producers of 
products that will compete with the preferred products and costs to 
Federal agencies to provide procurement preference for the preferred 
products. Producers of competing products may face a decrease in demand 
for their products to the extent Federal agencies refrain from 
purchasing their products. However, it is not known to what extent this 
may occur. Pre-award procurement costs for Federal agencies may rise 
minimally as the contracting officials conduct market research to 
evaluate the performance, availability, and price reasonableness of 
preferred products before making a purchase.

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

[[Page 4218]]

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.
    USDA evaluated the potential impacts of its proposed designation of 
these product categories to determine whether its actions would have a 
significant impact on a substantial number of small entities. Because 
the Federal preferred procurement program established under section 
9002 applies only to Federal agencies and their contractors, small 
governmental (city, county, etc.) agencies are not affected. Thus, the 
proposal, if promulgated, will not have a significant economic impact 
on small governmental jurisdictions.
    USDA anticipates that this program will affect entities, both large 
and small, that manufacture or sell biobased products. For example, the 
designation of product categories for Federal preferred procurement 
will provide additional opportunities for businesses to manufacture and 
sell biobased products to Federal agencies and their contractors. 
Similar opportunities will be provided for entities that supply 
biobased materials to manufacturers.
    The intent of section 9002 is largely to stimulate the production 
of new biobased products and to energize emerging markets for those 
products. Because the biobased product industry as a whole is still a 
developing market, it is unknown how many businesses will ultimately be 
affected by today's proposed rule. While USDA has no data on the number 
of small businesses that may choose to develop and market biobased 
products within the product categories designated by this rulemaking, 
the number is expected to be small because this industry is still 
materializing. As such, USDA anticipates that only a small percentage 
of all manufacturers, large or small, are expected to develop and 
market biobased products. Thus, the number of small businesses 
manufacturing biobased products affected by this rulemaking is not 
expected to be substantial.
    The Federal preferred procurement program may decrease 
opportunities for businesses that manufacture or sell non-biobased 
products or provide components for the manufacturing of such products. 
Most manufacturers of non-biobased products within the product 
categories being proposed for designation for Federal preferred 
procurement in this rule are expected to be included under the 
following NAICS codes: 324191 (petroleum lubricating oil and grease 
manufacturing), 325320 (pesticide and other agricultural chemicals 
manufacturing), 325411 (medicinal and botanical manufacturing), 325412 
(pharmaceutical preparation manufacturing), 325510 (paint and coating 
manufacturing), 325612 (polish and other sanitation goods 
manufacturing), and 325620 (toilet preparation manufacturing). USDA 
obtained information on these seven NAICS categories from the U.S. 
Census Bureau's Economic Census database. USDA found that the Economic 
Census reports about 4,756 companies within these 7 NAICS categories 
and that these companies own a total of about 5,374 establishments. 
Thus, the average number of establishments per company is about 1.13. 
The Census data also reported that of the 5,374 individual 
establishments, about 5,228 (97.3 percent) have fewer than 500 
employees. USDA also found that the overall average number of employees 
per company among these industries is about 92 and that the 
pharmaceutical preparation manufacturing segment (with an average of 
about 250) is the only segment reporting an average of more than 100 
employees per company. Thus, nearly all of the businesses meet the 
Small Business Administration's definition of a small business (less 
than 500 employees, in most NAICS categories).
    USDA does not have data on the potential adverse impacts on 
manufacturers of non-biobased products within the product categories 
being designated, but believes that the impact will not be significant. 
Most of the product categories being proposed for designation in this 
rulemaking are used to produce typical consumer products widely used by 
the general public and by industrial/commercial establishments that are 
not subject to this rulemaking. Thus, USDA believes that the number of 
small businesses manufacturing non-biobased products within the product 
categories being designated and selling significant quantities of those 
products to government agencies affected by this rulemaking to be 
relatively low. Also, this proposed rule will not affect existing 
purchase orders and it will not preclude procuring agencies from 
continuing to purchase non-biobased products when biobased products do 
not meet the availability, performance, or reasonable price criteria. 
This proposed rule will also not preclude businesses from modifying 
their product lines to meet new specifications or solicitation 
requirements for these products containing biobased materials.
    After considering the economic impacts of this proposed rule on 
small entities, USDA certifies that this action will not have a 
significant economic impact on a substantial number of small entities.
    While not a factor relevant to determining whether the proposed 
rule will have a significant impact for RFA purposes, USDA has 
concluded that the effect of the rule will be to provide positive 
opportunities to businesses engaged in the manufacture of these 
biobased products. Purchase and use of these biobased products by 
procuring agencies increase demand for these products and result in 
private sector development of new technologies, creating business and 
employment opportunities that enhance local, regional, and national 
economies.

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

    This proposed 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 would have implications for these rights.

D. Executive Order 12988: Civil Justice Reform

    This proposed rule has been reviewed in accordance with Executive 
Order 12988, Civil Justice Reform. This proposed 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 proposed rule does not have sufficient federalism implications 
to warrant the preparation of a Federalism Assessment. Provisions of 
this proposed rule will 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 proposed 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.

[[Page 4219]]

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 proposed rule does not significantly or uniquely affect ``one 
or more Indian tribes . . . the relationship between the Federal 
Government and Indian tribes, or . . . the distribution of power and 
responsibilities between the Federal Government and Indian tribes.'' 
Thus, no further action is required under Executive Order 13175.

I. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 through 3520), the information collection under this proposed rule 
is currently approved under OMB control number 0503-0011.

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 product category. 
For information pertinent to E-Government Act compliance related to 
this rule, please contact Marie Wheat at (202) 239-4502.

List of Subjects in 7 CFR Part 3201

    Biobased products, Procurement.
    For the reasons stated in the preamble, the Department of 
Agriculture proposes to amend 7 CFR chapter XXXII as follows:

CHAPTER XXXII--OFFICE OF PROCUREMENT AND PROPERTY MANAGEMENT

PART 3201--GUIDELINES FOR DESIGNATING BIOBASED PRODUCTS FOR FEDERAL 
PROCUREMENT

0
1. The authority citation for part 3201 continues to read as follows:

    Authority:  7 U.S.C. 8102.

0
2. Add Sec. Sec.  3201.108 through 3201.119 to subpart B to read as 
follows:

Sec.
3201.108 Intermediates--Plastic Resins.
3201.109 Intermediates--Chemicals.
3201.110 Intermediates--Paint and Coating Components.
3201.111 Intermediates--Textile Processing Materials.
3201.112 Intermediates--Foams.
3201.113 Intermediates--Fibers and Fabrics.
3201.114 Intermediates--Lubricant Components.
3201.115 Intermediates--Binders.
3201.116 Intermediates--Cleaner Components.
3201.117 Intermediates--Personal Care Product Components.
3201.118 Intermediates--Oils, Fats, and Waxes.
3201.119 Intermediates--Rubber Materials.


Sec.  3201.108  Intermediates--Plastic Resins.

    (a) Definition. Intermediates--Plastic Resins are materials that 
are typically viscous liquids with the ability to harden permanently 
and may exist in liquid or solid (powder or pellets) states. 
Intermediates--Plastic Resins may be used in a variety of finished 
products neat, consisting of a single resin, or a homogeneous blend of 
two or more neat resins, or composite, containing two or more distinct 
materials such as fiber-reinforced resins.
    Additionally, Intermediates--Plastic Resins may be used in finished 
products as additives such as plasticizers, pigments, thermal stability 
agents, or impact modifiers.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 22 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Plastic Resins. By that date, 
Federal agencies responsible for drafting or reviewing specifications 
for products to be procured shall ensure that the relevant 
specifications require the use of biobased Intermediates--Plastic 
Resins.


Sec.  3201.109  Intermediates--Chemicals.

    (a) Definition. Intermediates--Chemicals are those used as 
reactants for organic synthesis reactions rather than for their 
functional properties in a chemical mixture; those used as building 
block chemicals and secondary chemicals such as glycerol, succinic 
acid, propanediol, and monomers such as lactic acid and propylene; 
those used for specific functional properties during manufacturing of 
other products such as pH regulators, flocculants, precipitants, 
neutralizing agents, emulsifiers, detergents, wetting agents, foaming 
agents, or dispersants; those that are added to end-use products for 
their specific functional properties including solvents for thinning 
and drying applications but excluding solvents used for cleaning; and 
those used for dyes, pigments, and scents including flavorings for non-
food products such as lip balm.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 22 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Chemicals. By that date, Federal 
agencies responsible for drafting or reviewing specifications for 
products to be procured shall ensure that the relevant specifications 
require the use of biobased Intermediates--Chemicals.


Sec.  3201.110  Intermediates--Paint and Coating Components.

    (a) Definition. Intermediates--Paint and Coating Components are 
ingredients used to formulate finished waterborne or solvent borne 
paint and coating products. Examples of Intermediates--Paint and 
Coating Components include binders, pigments thickeners, curing agents, 
modifiers, alkyd latex resins, polyols, reactive oligomers, or reactive 
diluents.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 22 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Paint and Coating Components. By 
that date, Federal agencies responsible for drafting or reviewing 
specifications for products to

[[Page 4220]]

be procured shall ensure that the relevant specifications require the 
use of biobased Intermediates--Paint and Coating Components.


Sec.  3201.111  Intermediates--Textile Processing Materials.

    (a) Definition. Intermediates--Textile Processing Materials are 
used to treat or finish textiles for the purposes of altering textile 
characteristics such as color, fading, wrinkle resistance, texture, or 
moisture management.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 22 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Textile Processing Materials. By 
that date, Federal agencies responsible for drafting or reviewing 
specifications for products to be procured shall ensure that the 
relevant specifications require the use of biobased Intermediates--
Textile Processing Materials.


Sec.  3201.112  Intermediates--Foams.

    (a) Definition. Intermediates--Foams are dry polymer foams used for 
non-construction purposes, such as cushions for furniture.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 22 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Foams. By that date, Federal 
agencies responsible for drafting or reviewing specifications for 
products to be procured shall ensure that the relevant specifications 
require the use of biobased Intermediates--Foams.


Sec.  3201.113  Intermediates--Fibers and Fabrics.

    (a) Definition. Intermediates--Fibers and Fabrics encompasses plant 
and animal fibers, fibers made from plant-derived polymers that are not 
yet formed into more complex products such as carpet or fabrics, 
fabrics made from natural fibers, fabrics made from synthetic fibers, 
or fabrics made from a blend of the two. These materials are used to 
manufacture finished products such as clothing, upholstery, or drapes.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 25 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Fibers and Fabrics. By that date, 
Federal agencies responsible for drafting or reviewing specifications 
for products to be procured shall ensure that the relevant 
specifications require the use of biobased Intermediates--Fibers and 
Fabrics.


Sec.  3201.114  Intermediates--Lubricant Components.

    (a) Definition. Intermediates--Lubricant Components are ingredients 
that used specifically to formulate finished lubricant products. 
Examples of Intermediates--Lubricant Components include base oils, base 
fluids, additives, or friction modifiers.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 44 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Lubricant Components. By that date, 
Federal agencies responsible for drafting or reviewing specifications 
for products to be procured shall ensure that the relevant 
specifications require the use of biobased Intermediates--Lubricant 
Components.


Sec.  3201.115  Intermediates--Binders.

    (a) Definition. Intermediates--Binders are materials used to 
provide cohesiveness throughout an entire finished product. The product 
category does not include adhesives and glues that are finished 
products used to attach the surfaces of two or more distinct and 
separate components to one another.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 47 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Binders. By that date, Federal 
agencies responsible for drafting or reviewing specifications for 
products to be procured shall ensure that the relevant specifications 
require the use of biobased Intermediates--Binders.


Sec.  3201.116  Intermediates--Cleaner Components.

    (a) Definition. Intermediates--Cleaner Components are intermediate 
ingredients used specifically for formulating finished cleaning 
products. Examples of Intermediates--Cleaner Components include 
chelating agents, surfactants, hydrotropes, fatty acids, or solvents.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 55 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Cleaner Components. By that date, 
Federal agencies responsible for drafting or reviewing specifications 
for products to be procured shall ensure that the relevant 
specifications require the use of biobased Intermediates--Cleaner 
Components.


Sec.  3201.117  Intermediates--Personal Care Product Components.

    (a) Definition. Intermediates--Personal Care Product Components are 
ingredients used to formulate finished personal care products. Examples 
of Intermediates--Personal Care Product Components include surfactants, 
oils, humectants, emollients, or emulsifiers.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 62 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a

[[Page 4221]]

percent of the weight (mass) of the total organic carbon in the 
finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Personal Care Product Components. By 
that date, Federal agencies responsible for drafting or reviewing 
specifications for products to be procured shall ensure that the 
relevant specifications require the use of biobased Intermediates--
Personal Care Product Components.


Sec.  3201.118   Intermediates--Oils, Fats, and Waxes.

    (a) Definition. Intermediates--Oils, Fats, and Waxes include raw or 
modified fats and oils derived from plants or animals.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 65 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Oils, Fats, and Waxes. By that date, 
Federal agencies responsible for drafting or reviewing specifications 
for products to be procured shall ensure that the relevant 
specifications require the use of biobased Intermediates--Oils, Fats, 
and Waxes.


Sec.  3201.119  Intermediates--Rubber Materials.

    (a) Definition. Intermediates--Rubber Materials are used in 
finished products such as rubber gloves, vehicle tires, footwear, 
sports apparel and equipment, bedding and pillow foams, tubing, 
catheters, gasketing, or cosmetic adhesives and bases.
    (b) Minimum biobased content. The Federal preferred procurement 
product must have a minimum biobased content of at least 96 percent, 
which shall be based on the amount of qualifying biobased carbon in the 
product as a percent of the weight (mass) of the total organic carbon 
in the finished product.
    (c) Preference compliance date. No later than [date one year after 
the date of publication of the final rule], procuring agencies, in 
accordance with this part, will give a procurement preference for 
qualifying biobased Intermediates--Rubber Materials. By that date, 
Federal agencies responsible for drafting or reviewing specifications 
for products to be procured shall ensure that the relevant 
specifications require the use of biobased Intermediates--Rubber 
Materials.

    Dated: December 16, 2016.
Gregory L. Parham,
Assistant Secretary for Administration, U.S. Department of Agriculture.
[FR Doc. 2016-31128 Filed 1-12-17; 8:45 am]
BILLING CODE 3410-93-P



                                                      4206                      Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      *      *     *       *      *                           information (Braille, large print,                     II. Background
                                                        Dated: January 9, 2017.                               audiotape, etc.) should contact the
                                                                                                              USDA TARGET Center at (202) 720–                          Section 9002 provides for the
                                                      Elanor Starmer,                                                                                                preferred procurement of biobased
                                                                                                              2600 (voice) and (202) 690–0942 (TTY).
                                                      Administrator, Agricultural Marketing                                                                          products by Federal procuring agencies
                                                      Service.                                                FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                     and is referred to hereafter in this
                                                      [FR Doc. 2017–00587 Filed 1–12–17; 8:45 am]
                                                                                                              Marie Wheat, USDA, Office of
                                                                                                                                                                     Federal Register notice as the ‘‘Federal
                                                                                                              Procurement and Property Management,
                                                      BILLING CODE 3410–02–P                                                                                         preferred procurement program.’’ Under
                                                                                                              Room 361, Reporters Building, 300 7th
                                                                                                                                                                     the provisions specified in the
                                                                                                              St. SW., Washington, DC 20024; email:
                                                                                                                                                                     ‘‘Guidelines for Designating Biobased
                                                      DEPARTMENT OF AGRICULTURE                               biopreferred_support@amecfw.com;
                                                                                                                                                                     Products for Federal Procurement’’ (7
                                                                                                              phone (202) 239–4502. Information
                                                                                                                                                                     CFR part 3201) (Guidelines), the USDA
                                                      Office of Procurement and Property                      regarding the Federal preferred
                                                                                                                                                                     BioPreferred Program ‘‘designates’’
                                                      Management                                              procurement program (one initiative of
                                                                                                                                                                     product categories to which the
                                                                                                              the BioPreferred Program) is available
                                                                                                                                                                     preferred procurement requirements
                                                      7 CFR Part 3201                                         on the Internet at http://
                                                                                                                                                                     apply by listing them in subpart B of 7
                                                                                                              www.biopreferred.gov.
                                                      RIN 0599–AA24                                                                                                  CFR part 3201.
                                                                                                              SUPPLEMENTARY INFORMATION: The
                                                                                                                                                                        The term ‘‘product category’’ is used
                                                      Designation of Product Categories for                   information presented in this preamble
                                                                                                                                                                     as a generic term in the designation
                                                      Federal Procurement                                     is organized as follows:
                                                                                                                                                                     process to mean a grouping of specific
                                                      AGENCY: Office of Procurement and                       I. Authority                                           products that perform a similar
                                                                                                              II. Background                                         function. As originally finalized, the
                                                      Property Management, USDA.                              III. Summary of Today’s Proposed Rule
                                                      ACTION: Notice of proposed rulemaking.                  IV. Designation of Product Categories,
                                                                                                                                                                     Guidelines included provisions for the
                                                                                                                    Minimum Biobased Contents, and Time              designation of product categories that
                                                      SUMMARY:    The U.S. Department of                            Frame                                            were composed of finished, consumer
                                                      Agriculture (USDA) is proposing to                         A. Background                                       products such as mobile equipment
                                                      amend the Guidelines for Designating                       B. Product Categories and Minimum                   hydraulic fluids, penetrating lubricants,
                                                      Biobased Products for Federal                                 Biobased Contents Proposed for                   or hand cleaners and sanitizers.
                                                      Procurement (Guidelines) to add 12                            Designation
                                                                                                                 C. Compliance Date for Procurement                     The 2008 and 2014 Farm Bills
                                                      sections that will designate 12 product                                                                        directed USDA to expand the scope of
                                                                                                                    Preference and Incorporation Into
                                                      categories composed of intermediate                           Specifications                                   the Guidelines to include the
                                                      ingredient and feedstock materials                      V. Where can agencies get more information             designation of product categories
                                                      within which biobased products would                          on these USDA-designated product                 composed of intermediate ingredients
                                                      be afforded procurement preference by                         categories?                                      and feedstock materials. Specifically,
                                                      Federal agencies and their contractors.                 VI. Regulatory Information                             the 2008 Farm Bill stated that USDA
                                                      USDA is also proposing minimum                             A. Executive Order 12866: Regulatory
                                                                                                                    Planning and Review and Executive                shall ‘‘designate those intermediate
                                                      biobased contents for each of these                                                                            ingredients and feedstocks that are or
                                                                                                                    Order 13563: Improving Regulation and
                                                      product categories.                                           Regulatory Review                                can be used to produce items that will
                                                      DATES: USDA will accept public                             B. Regulatory Flexibility Act (RFA)                 be subject’’ to the Federal preferred
                                                      comments on this proposed rule until                       C. Executive Order 12630: Governmental              procurement program. The term
                                                      March 14, 2017.                                               Actions and Interference With                    ‘‘intermediate ingredient and feedstock’’
                                                                                                                    Constitutionally Protected Property              is defined in the Farm Bill as ‘‘a
                                                      ADDRESSES: You may submit comments
                                                                                                                    Rights
                                                      by any of the following methods. All                       D. Executive Order 12988: Civil Justice
                                                                                                                                                                     material or compound made in whole or
                                                      submissions received must include the                         Reform                                           in significant part from biological
                                                      agency name and Regulatory                                 E. Executive Order 13132: Federalism                products, including renewable
                                                      Information Number (RIN). The RIN for                      F. Unfunded Mandates Reform Act of 1995             agricultural materials (including plant,
                                                      this rulemaking is 0599–AA24. Also,                        G. Executive Order 12372:                           animal, and marine materials) or
                                                      please identify submittals as pertaining                      Intergovernmental Review of Federal              forestry materials, that are subsequently
                                                      to the ‘‘Proposed Designation of Product                      Programs                                         used to make a more complex
                                                                                                                 H. Executive Order 13175: Consultation              compound or product.’’ The term
                                                      Categories.’’                                                 and Coordination With Indian Tribal
                                                         • Federal eRulemaking Portal: http://                      Governments
                                                                                                                                                                     ‘‘intermediates’’ is used in the titles of
                                                      www.regulations.gov. Follow the                            I. Paperwork Reduction Act                          the product categories being proposed
                                                      instructions for submitting comments.                      J. E-Government Act                                 for designation today to distinguish
                                                         • Email: biopreferred_support@                                                                              these proposed categories from the
                                                      amecfw.com. Include RIN number                          I. Authority                                           finished, consumer products previously
                                                      0599–AA24 and ‘‘Proposed Designation                       The designation of these product                    designated by USDA. Additionally, in
                                                      of Product Categories’’ on the subject                  categories is proposed under the                       section 9001 of the 2014 Farm Bill, the
                                                      line. Please include your name and                      authority of section 9002 of the Farm                  term ‘‘renewable chemical’’ is defined
                                                      address in your message.                                Security and Rural Investment Act of                   as ‘‘a monomer, polymer, plastic,
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                         • Mail/commercial/hand delivery:                     2002 (the 2002 Farm Bill), as amended                  formulated product, or chemical
                                                      Mail or deliver your comments to: Marie                 by the Food, Conservation, and Energy                  substance produced from renewable
                                                      Wheat, USDA, Office of Procurement                      Act of 2008 (the 2008 Farm Bill), and                  biomass.’’ Thus, most products that are
                                                      and Property Management, Room 361,                      further amended by the Agricultural Act                described as ‘‘renewable chemicals’’
                                                      Reporters Building, 300 7th St. SW.,                    of 2014 (the 2014 Farm Bill), 7 U.S.C.                 will be eligible for the Federal preferred
                                                      Washington, DC 20024.                                   8102. (Section 9002 of the 2002 Farm                   procurement program because they meet
                                                         • Persons with disabilities who                      Bill, as amended by the 2008 and the                   the definition of one or more of the
                                                      require alternative means for                           2014 Farm Bills, is referred to in this                intermediate product categories
                                                      communication for regulatory                            document as ‘‘section 9002’’.)                         included in today’s proposed rule.


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                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                            4207

                                                         For example, the chemical substance                  tested biobased contents for each                      person that is a party to a contract with
                                                      known as citric acid, if biobased, may be               finished product, applicable                           any Federal agency, with respect to
                                                      considered as a renewable chemical and                  performance standards that the finished                work performed under such a contract.’’
                                                      an intermediate ingredient for finished                 products meet, and which intermediate                  Thus, Federal contractors, as well as
                                                      products in the cleaning, personal care,                ingredient and feedstock categories are                Federal agencies, are expressly subject
                                                      or textiles industries. Thus, biobased                  used to make these finished products.                  to the procurement preference
                                                      citric acid could be categorized in one                 Such information will be valuable in                   provisions of section 9002.
                                                      or all of the following intermediate                    supporting the selection of product                       USDA recognizes that the
                                                      product categories that are proposed for                categories for designation but will be                 performance needs for a given
                                                      designation today: Intermediates—                       evaluated independently from today’s                   application are important criteria in
                                                      Chemicals, Intermediates—Textile                        proposed rule. Please refer to Section                 making procurement decisions. USDA is
                                                      Processing Materials, Intermediates—                    IV.B. of today’s proposed rule for further             not requiring procuring agencies to limit
                                                      Cleaner Components, or Intermediates—                   details on the information required to                 their choices to biobased products that
                                                      Personal Care Product Components.                       designate product categories for Federal               are categorized within the product
                                                      Additionally, the chemical substance                    procurement preference.                                categories proposed for designation in
                                                      known as oleic acid may be considered                      Once USDA designates a product                      this proposed rule. Rather, the effect of
                                                      as a renewable chemical and an                          category, procuring agencies are                       the designation of the product categories
                                                      intermediate ingredient for finished                    required, with some exceptions, to                     is to require procuring agencies to
                                                      products in the cleaning, personal care,                                                                       determine their performance needs,
                                                                                                              purchase biobased products within
                                                      or lubricant industries. Therefore, oleic                                                                      determine whether there are qualified
                                                                                                              these designated product categories
                                                      acid could be categorized in one or all                                                                        biobased products that are categorized
                                                                                                              where the purchase price of the
                                                      of the following intermediate product                                                                          within the designated product
                                                                                                              procurement product exceeds $10,000
                                                      categories that are proposed for                                                                               categories that meet the reasonable
                                                                                                              or where the quantity of such products
                                                      designation today: Intermediates—                                                                              performance standards for those needs,
                                                                                                              or the functionally equivalent products
                                                      Chemicals, Intermediates—Lubricant                                                                             and purchase such qualified biobased
                                                                                                              purchased over the preceding fiscal year
                                                      Components, Intermediates—Cleaner                                                                              products to the maximum extent
                                                                                                              equaled $10,000 or more. Procuring
                                                      Components, or Intermediates—                                                                                  practicable as required by section 9002.
                                                                                                              agencies must procure biobased                            Section 9002(a)(3)(B) requires USDA
                                                      Personal Care Product Components.                       products within each product category
                                                      These examples show that the                                                                                   to provide information to procuring
                                                                                                              unless they determine that products                    agencies on the availability, relative
                                                      intermediate product categories being                   within a product category are not                      price, and performance of such products
                                                      proposed today may accommodate a                        reasonably available within a reasonable               and to recommend, where appropriate,
                                                      variety of renewable chemical                           period of time, fail to meet the                       the minimum level of biobased content
                                                      substances.                                             reasonable performance standards of the                to be contained in the procured
                                                         Although the Federal government                      procuring agencies, or are available only              products.
                                                      does not typically purchase large                       at an unreasonable price. As stated in                    Subcategorization. Most of the
                                                      quantities of intermediate ingredients                  the Guidelines, biobased products that                 product categories USDA has designated
                                                      and feedstock materials, designating                    are merely incidental to Federal funding               for Federal preferred procurement cover
                                                      such materials represents a means to                    are excluded from the Federal preferred                a wide range of products. For some
                                                      identify and include finished products                  procurement program; that is, the                      product categories, there are subgroups
                                                      made from such designated materials in                  requirements to purchase biobased                      of products that meet different
                                                      the Federal preferred procurement                       products do not apply to such purchases                requirements, uses and/or different
                                                      program. In the August 1, 2014 Federal                  if they are unrelated to or incidental to              performance specifications. For
                                                      Register (79 FR 44641), USDA finalized                  the purpose of the Federal contract. For               example, within the product category
                                                      amendments to the Guidelines                            example, if a janitorial service company               ‘‘hand cleaners and sanitizers,’’
                                                      establishing procedures for designating                 purchases cleaning supplies to be used                 products that are used in medical offices
                                                      intermediate ingredient or feedstock                    in the performance of a Federal contract,              may be required to meet performance
                                                      categories. Today’s proposed rule                       the cleaning supplies would be subject                 specifications for sanitizing, while other
                                                      follows the established procedures for                  to the authority of the Federal preferred              products that are intended for general
                                                      designating intermediate ingredient                     procurement program. However,                          purpose hand washing may not need to
                                                      product categories. Soon, USDA will                     cleaning supplies purchased to maintain                meet these specifications. Where such
                                                      propose designating product categories                  the offices from which the janitorial                  subgroups exist, USDA intends to create
                                                      comprised of finished products made                     service company manages the Federal                    subcategories. Thus, for example, for the
                                                      from intermediate ingredients that may                  contract would be incidental to the                    product category ‘‘hand cleaners and
                                                      be categorized within the product                       performance of the contract and, as                    sanitizers,’’ USDA determined that it
                                                      categories proposed for designation in                  such, would not be subject to the                      was reasonable to create a ‘‘hand
                                                      today’s rule. Therefore, USDA requests                  authority of the Federal preferred                     cleaner’’ subcategory and a ‘‘hand
                                                      manufacturers and members of the                        procurement program. In implementing                   sanitizer’’ subcategory. Sanitizing
                                                      public to submit technical information                  the Federal preferred procurement                      specifications are applicable to the latter
                                                      related to the designation of such                      program for biobased products,                         subcategory, but not the former. In sum,
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                                                      finished product categories to                          procuring agencies should follow their                 USDA looks at the products within each
                                                      biopreferred_support@amecfw.com.                        procurement rules and Office of Federal                product category to evaluate whether
                                                      Specific technical information to submit                Procurement Policy guidance on buying                  there are groups of products within the
                                                      includes the following: A finished                      non-biobased products when biobased                    category that have unique
                                                      product category name, descriptions of                  products exist and should document                     characteristics or that meet different
                                                      finished products that belong in this                   exceptions taken for price, performance,               performance specifications and, if
                                                      product category, how these finished                    and availability. The definition of                    USDA finds these types of differences
                                                      products are used, any special features                 ‘‘procuring agency’’ in section 9002                   within a given product category, it
                                                      of these finished products, estimated or                includes both Federal agencies and ‘‘a                 intends to create subcategories with the


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                                                      4208                      Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      minimum biobased content based on the                   rather than establishing the minimum                   product with a tested biobased content
                                                      tested products within the subcategory.                 biobased content for a product category                of 78 percent. USDA believes that this
                                                         For some product categories,                         at the tested biobased content of the                  evaluation process allows it to establish
                                                      however, USDA may not have sufficient                   product selected as the basis for the                  minimum biobased contents based on a
                                                      information at the time of proposal to                  minimum value, USDA is establishing                    broad set of factors to assist the Federal
                                                      create subcategories. For example,                      the minimum biobased content for each                  procurement community in its decisions
                                                      USDA may know that there are different                  product category at a level three (3)                  to purchase biobased products.
                                                      performance specifications that metal                   percentage points lower than the tested                   USDA makes every effort to obtain
                                                      cleaners and corrosion remover                          value. USDA believes that this                         biobased content test data on multiple
                                                      products are required to meet, but it                   adjustment is appropriate to account for               products within each product category.
                                                      may have information on only one type                   the expected variations in analytical                  For most designated product categories,
                                                      of metal cleaner and corrosion remover                  results. USDA encourages procuring                     USDA has biobased content test data on
                                                      product. In such instances, USDA may                    agencies to seek products with the                     more than one product within the
                                                      either designate the product category                   highest biobased content that is                       category. However, in some cases,
                                                      without creating subcategories (i.e.,                   practicable in all of the proposed                     USDA has been able to obtain biobased
                                                      defer the creation of subcategories) or                 designated product categories.                         content data for only a single product
                                                      designate one subcategory and defer                        In addition to considering the                      within a designated product category.
                                                      designation of other subcategories                      biobased content test data for each                    As USDA obtains additional data on the
                                                      within the product category until                       product category, USDA also considers                  biobased contents of products within
                                                      additional information is obtained.                     other factors including product                        these designated product categories or
                                                      Once USDA has received sufficient                       performance information. USDA                          their subcategories, USDA will evaluate
                                                      additional information to justify the                   evaluates this information to determine                whether the minimum biobased content
                                                      designation of a subcategory, the                       whether some products that may have a                  for a designated product category or
                                                      subcategory will be designated through                  lower biobased content also have                       subcategory will be revised.
                                                      the proposed and final rulemaking                       unique performance or applicability                       Overlap with EPA’s Comprehensive
                                                      process.                                                attributes that would justify setting the              Procurement Guideline program for
                                                         USDA has not created subcategories                   minimum biobased content at a level                    recovered content products under the
                                                      for any of the product categories being                 that would include these products. For                 Resource Conservation and Recovery
                                                      proposed for designation in today’s rule.               example, a lubricant product that has a                Act (RCRA) Section 6002. Some of the
                                                      USDA requests public comment, along                     lower biobased content than others                     products that are within biobased
                                                      with supporting data, on the need to                    within a product category but is                       product categories designated for
                                                      create subcategories within any of the                  formulated to perform over a wider                     Federal preferred procurement under
                                                      proposed product categories. If public                  temperature range than the other                       this program may also be within
                                                      comments are received that support the                  products may be more desirable to                      categories the Environmental Protection
                                                      creation of subcategories, USDA will                    Federal agencies. Thus, it would be                    Agency (EPA) has designated under the
                                                      consider the supporting data and may                    beneficial to set the minimum biobased                 EPA’s Comprehensive Procurement
                                                      create subcategories in the final rule.                 content for the product category at a                  Guideline (CPG) for products containing
                                                         Minimum Biobased Contents. The                       level that would include the product                   recovered (or recycled) materials.
                                                      minimum biobased contents being                         with superior performance features.                    Because today’s proposed rule would
                                                      proposed in this rule are based on                         USDA also considers the overall range               designate intermediate ingredient
                                                      products for which USDA has biobased                    of the tested biobased contents within a               product categories rather than categories
                                                      content test data. USDA obtains                         product category, groupings of similar                 of finished, consumer-use products,
                                                      biobased content data in conjunction                    values, and breaks (significant gaps                   USDA does not believe that there is a
                                                      with product manufacturer’s                             between two groups of values) in the                   direct overlap between these categories
                                                      applications for certification to use the               biobased content test data array. For                  and CPG categories. However, if such an
                                                      USDA Certified Biobased Product label.                  example, in a previously proposed                      overlap situation is discovered, USDA is
                                                      Products that are certified to display the              product category, the biobased contents                asking manufacturers of qualifying
                                                      label must undergo biobased content                     of 7 tested products ranged from 17 to                 biobased products to make additional
                                                      testing by an independent, third party                  100 percent, as follows: 17, 41, 78, 79,               product and performance information
                                                      testing lab using ASTM D6866,                           94, 98, and 100 percent. Because this is               available to Federal agencies conducting
                                                      ‘‘Standard Test Methods for                             a very wide range, and because there is                market research to assist them in
                                                      Determining the Biobased Content of                     a significant gap in the data between the              determining whether the biobased
                                                      Solid, Liquid, and Gaseous Samples                      41 percent biobased product and the 78                 products in question are, or are not, the
                                                      Using Radiocarbon Analysis’’. These                     percent biobased product, USDA                         same products for the same uses as the
                                                      test data become part of the BioPreferred               reviewed the product literature to                     recovered content products.
                                                      Program database and their use in                       determine whether subcategories could                  Manufacturers are asked to provide
                                                      setting the minimum biobased content                    be created within this product category.               information highlighting the sustainable
                                                      for designated product categories results               USDA found that the available product                  features of their biobased products and
                                                      in a more efficient process for both the                information did not justify creating a                 to indicate the various suggested uses of
                                                      Program and manufacturers of products                   subcategory based on the 17 percent                    their product and the performance
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                                                      within the product categories.                          product or the 41 percent biobased                     standards against which a particular
                                                         As a result of public comments                       content product. Further, USDA did not                 product has been tested. In addition,
                                                      received on the first designated product                find any performance claims that would                 depending on the type of biobased
                                                      categories rulemaking proposal, USDA                    justify setting the minimum biobased                   product, manufacturers are being asked
                                                      decided to account for the slight                       content based on either the 17 percent                 to provide other types of information,
                                                      imprecision in the analytical method                    or the 41 percent biobased content                     such as whether the product contains
                                                      used to determine biobased content of                   products. Thus, USDA set the minimum                   fossil energy-based components
                                                      products when establishing the                          biobased content for this product                      (including petroleum, coal, and natural
                                                      minimum biobased content. Thus,                         category at 75 percent, based on the                   gas) and whether the product contains


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                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                          4209

                                                      recovered materials. Federal agencies                   standards for institutional cleaning                   the AbilityOne Program would further
                                                      also may review available information                   products or that the products have been                the objectives of both the AbilityOne
                                                      on a product’s biobased content. Federal                reformulated in accordance with                        Program and the Federal preferred
                                                      agencies may then use this information                  recommendations from the EPA’s Safer                   procurement program.
                                                      to make purchasing decisions based on                   Choice Program (previously known as                      Outreach. To augment its own
                                                      the sustainability features of the                      the ‘‘Design for the Environment’’ (DfE)               research, USDA consults with industry
                                                      products.                                               program). Both the Green Seal standards                and Federal stakeholders to the Federal
                                                         Where a biobased product is used for                 and the Safer Choice program identify                  preferred procurement program during
                                                      the same purposes and to meet the same                  chemicals of concern in cleaning                       the development of the rulemaking
                                                      Federal agency performance                              products. These include zinc and other                 packages for the designation of product
                                                      requirements as an EPA-designated                       metals, formaldehyde, ammonia, alkyl                   categories. USDA consults with
                                                      recovered content product, the Federal                  phenol ethoxylates, ethylene glycol, and               stakeholders to gather information used
                                                      agency must purchase the recovered                      volatile organic compounds. In                         in determining the order of product
                                                      content product. For example, if a                      addition, both require that cleaning                   category designation and in identifying:
                                                      biobased hydraulic fluid is to be used as               products have neutral pH.                              Manufacturers producing and marketing
                                                      a fluid in hydraulic systems and                          In contrast, some biobased products                  products that are categorized within a
                                                      because ‘‘lubricating oils containing re-               may be environmentally preferable to                   product category proposed for
                                                      refined oil’’ has already been designated               some products that meet Green Seal                     designation; performance standards
                                                      by EPA for that purpose, then the                       standards for institutional cleaning                   used by Federal agencies evaluating
                                                      Federal agency must purchase the EPA-                   products or that have been reformulated                products to be procured; and warranty
                                                      designated recovered content product,                   in accordance with EPA’s Safer Choice                  information used by manufacturers of
                                                      ‘‘lubricating oils containing re-refined                program. To fully compare products,                    end user equipment and other products
                                                      oil.’’ If, on the other hand, the biobased              one must look at the ‘‘cradle-to-grave’’               with regard to biobased products.
                                                      hydraulic fluid is to be used to address                impacts of the manufacture, use, and
                                                                                                                                                                     III. Summary of Today’s Proposed Rule
                                                      a Federal agency’s certain                              disposal of products. USDA has been
                                                      environmental or health performance                     unable to perform the analyses                            USDA is proposing to designate the
                                                      requirements that the EPA-designated                    necessary to determine the ‘‘cradle-to-                following product categories for Federal
                                                      recovered content product would not                     grave’’ impacts of products within the                 preferred procurement: Intermediates—
                                                      meet, then the biobased product should                  product categories being proposed for                  Plastic Resins; Intermediates—
                                                      be given preference, subject to                         designation because of resource                        Chemicals; Intermediates—Paint and
                                                      reasonable price, availability, and                     constraints.                                           Coating Components; Intermediates—
                                                      performance considerations.                               One consideration of a product’s                     Textile Processing Materials;
                                                         Federal Government Purchase of                       impact on the environment is whether                   Intermediates—Foams; Intermediates—
                                                      Sustainable Products. The Federal                       (and to what degree) it introduces new,                Fibers and Fabrics; Intermediates—
                                                      government’s sustainable purchasing                     fossil carbon into the atmosphere. Fossil              Lubricant Components; Intermediates—
                                                      program includes the following three                    carbon is derived from non-renewable                   Binders; Intermediates—Cleaner
                                                      mandatory preference programs for                       sources (typically fossil fuels such as                Components; Intermediates—Personal
                                                      designated products: The BioPreferred                   coal and oil), whereas renewable                       Care Product Components;
                                                      Program, the EPA’s Comprehensive                        biomass carbon is derived from                         Intermediates—Oils, Fats, and Waxes;
                                                      Procurement Guideline for products                      renewable sources (biomass). Qualifying                and Intermediates—Rubber Materials. In
                                                      containing recovered materials, and the                 biobased products offer the user the                   addition, USDA is proposing a
                                                      Environmentally Preferable Purchasing                   opportunity to manage his or her impact                minimum biobased content for each of
                                                      program. The Office of the Chief                        on the carbon cycle and reduce the                     these product categories and
                                                      Sustainability Officer (OCSO) and the                   introduction of new fossil carbon into                 subcategories. Lastly, USDA is
                                                      Office of Management and Budget                         the atmosphere.                                        proposing a date by which Federal
                                                      (OMB) encourage agencies to implement                     Other Federal Preferred Procurement                  agencies must incorporate these
                                                      these components comprehensively                        Programs. Federal procurement officials                designated product categories into their
                                                      when purchasing products and services.                  should also note that many biobased                    procurement specifications (see Section
                                                         Procuring agencies should note that                  products may be available for purchase                 IV.E).
                                                      not all biobased products are                           by Federal agencies through the                           USDA is working with manufacturers
                                                      ‘‘environmentally preferable.’’ For                     AbilityOne Program (formerly known as                  and vendors to make all relevant
                                                      example, unless cleaning products                       the Javits-Wagner-O’Day (JWOD)                         product and manufacturer contact
                                                      contain no or reduced levels of metals                  program). Under this program, members                  information available on the
                                                      and toxic or hazardous constituents,                    of organizations including the National                BioPreferred Program’s Web site. Steps
                                                      they can be harmful to aquatic life, the                Industries for the Blind (NIB) and                     USDA has implemented, or will
                                                      environment, and/or workers.                            SourceAmerica (formerly known as the                   implement, include: Making direct
                                                      Household cleaning products that are                    National Industries for the Severely                   contact with submitting companies
                                                      formulated to be disinfectants are                      Handicapped) offer products and                        through email and phone conversations
                                                      required, under the Federal Insecticide,                services for preferred procurement by                  to encourage completion of product
                                                      Fungicide and Rodenticide Act (FIFRA),                  Federal agencies. A search of the                      listing; coordinating outreach efforts
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                                                      to be registered with EPA (unless they                  AbilityOne Program’s online catalog                    with intermediate material producers to
                                                      are formulated with exempt ingredients)                 (www.abilityone.gov) indicated that the                encourage participation of their
                                                      and must meet specific labeling                         types of intermediate ingredient product               customer base; conducting targeted
                                                      requirements warning of the potential                   categories being proposed for                          outreach with industry and commodity
                                                      risks associated with misuse of such                    designation in today’s proposed rule are               groups to educate stakeholders on the
                                                      products. When purchasing                               not available through the AbilityOne                   importance of providing complete
                                                      environmentally preferable cleaning                     Program. USDA notes, however, that if                  product information; participating in
                                                      products, many Federal agencies specify                 such materials are offered at some point               industry conferences and meetings to
                                                      that products must meet Green Seal                      in the future, their procurement through               educate companies on program benefits


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                                                      4210                      Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      and requirements; and communicating                     impacts on individual businesses,                      section 9002 requires USDA to consider:
                                                      the potential for expanded markets                      including small businesses. USDA                       (1) The availability of biobased products
                                                      beyond the Federal government, to                       anticipates that the biobased Federal                  within the product categories and (2)
                                                      include State and local governments, as                 preferred procurement program will                     the economic and technological
                                                      well as the general public markets.                     provide additional opportunities for                   feasibility of using those products.
                                                      Section V provides instructions to                      businesses and manufacturers to begin                     In considering a product’s
                                                      agencies on how to obtain this                          supplying products under the proposed                  availability, USDA uses several sources
                                                      information on products within these                    designated biobased product categories                 of information. The primary source of
                                                      product categories through the                          to Federal agencies and their                          information for the product categories
                                                      BioPreferred Program’s Web site: http://                contractors. However, other businesses                 being proposed for designation is
                                                      www.biopreferred.gov.                                   and manufacturers that supply only                     USDA’s database of manufacturers and
                                                         Comments. USDA invites public                        non-qualifying products and do not                     products that have been certified to
                                                      comment on the proposed designation                     offer biobased alternatives may                        display the USDA Certified Biobased
                                                      of these intermediate ingredient product                experience a decrease in demand from                   Product label. In addition, USDA
                                                      categories, including the definition,                   Federal agencies and their contractors.                performs Internet searches, contacts
                                                      proposed minimum biobased content,                      Because USDA has been unable to                        trade associations and commodity
                                                      and any of the relevant analyses                        determine the number of businesses,                    groups, and contacts manufacturers and
                                                      performed during their selection. In                    including small businesses, which may                  vendors to identify those with biobased
                                                      addition, USDA invites comments and                     be adversely affected by today’s                       products within product categories
                                                      information in the following areas:                     proposed rule USDA requests comment                    being considered for designation. USDA
                                                         1. We have attempted to identify                     on how many small entities may be                      uses the results of these same searches
                                                      relevant and appropriate performance                    affected by this rule and on the nature                to determine if a product category is
                                                      standards and other relevant measures                   and extent of that effect.                             generally available.
                                                      of performance for each of the proposed                    All comments should be submitted as                    In considering a product category’s
                                                      product categories. If you know of other                directed in the ADDRESSES section                      economic and technological feasibility,
                                                      such standards or relevant measures of                  above.                                                 USDA examines evidence pointing to
                                                      performance for any of the proposed                        5. As stated in Section II of today’s               the general commercial use of a product
                                                      product categories, USDA requests that                  proposed rule, USDA will soon propose
                                                      you submit information identifying such                                                                        and its life-cycle cost and performance
                                                                                                              designating product categories                         characteristics. This information is
                                                      standards and measures, including their                 comprised of finished products made
                                                      name (and other identifying information                                                                        obtained from the sources used to assess
                                                                                                              from intermediate ingredients that may                 a product’s availability. Commercial
                                                      as necessary), identifying who is using                 be categorized within the product
                                                      the standard/measure, and describing                                                                           use, in turn, is evidenced by any
                                                                                                              categories proposed for designation in                 manufacturer and vendor information
                                                      the circumstances under which the                       today’s rule. Therefore, USDA requests
                                                      product is being used.                                                                                         on the availability, relative prices, and
                                                                                                              manufacturers and members of the                       performance of their products as well as
                                                         2. Many biobased products within the                 public to submit technical information
                                                      product categories being proposed for                                                                          by evidence of a product being
                                                                                                              related to the designation of such                     purchased by a procuring agency or
                                                      designation will have positive                          finished product categories to
                                                      environmental and human health                                                                                 other entity, where available. In sum,
                                                                                                              biopreferred_support@amecfw.com.                       USDA considers a product category
                                                      attributes. USDA is seeking comments
                                                                                                              Specific technical information to submit               economically and technologically
                                                      on such attributes in order to provide
                                                                                                              includes the following: A finished                     feasible for purposes of designation if
                                                      additional information on the
                                                                                                              product category name, descriptions of                 products within that product category
                                                      BioPreferred Program’s Web site. This
                                                                                                              finished products that belong in this                  are being offered and used in the
                                                      information will then be available to
                                                                                                              product category, how these finished                   marketplace.
                                                      Federal procuring agencies and will
                                                                                                              products are used, any special features                   As discussed earlier, USDA has
                                                      assist them in making informed
                                                                                                              of these finished products, estimated or               implemented, or will implement,
                                                      sustainable procurement decisions.
                                                                                                              tested biobased contents for each                      several steps intended to educate the
                                                      When possible, please provide
                                                                                                              finished product, applicable                           manufacturers and other stakeholders
                                                      appropriate documentation to support
                                                                                                              performance standards that the finished                on the benefits of this program and the
                                                      the environmental and human health
                                                                                                              products meet, and which intermediate                  need to make relevant information,
                                                      attributes you describe.
                                                         3. Some product categories being                     ingredient and feedstock categories are                including manufacturer contact
                                                      proposed for designation today have                     used to make these finished products.                  information, available to procurement
                                                      wide ranges of tested biobased contents.                Such information will be valuable in                   officials via the BioPreferred Program
                                                      For the reasons discussed later in this                 supporting the selection of product                    Web site. Additional information on
                                                      preamble, USDA is proposing a                           categories for designation but will be                 specific products within the product
                                                      minimum biobased content for these                      evaluated independently from today’s                   categories proposed for designation may
                                                      product categories that would allow                     proposed rule. Please refer to Section                 also be obtained directly from the
                                                      most of the tested products to be eligible              IV.B. of today’s proposed rule for further             manufacturers of the products. USDA
                                                      for Federal preferred procurement.                      details on the information required to                 has also provided information on the
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                                                      USDA welcomes comments on the                           designate product categories for Federal               BioPreferred Program Web site for
                                                      appropriateness of the proposed                         procurement preference.                                manufacturers and vendors who wish to
                                                      minimum biobased contents for these                     IV. Designation of Product Categories,                 position their businesses as biobased
                                                      product categories and whether there                    Minimum Biobased Contents, and Time                    product vendors to the Federal
                                                      are potential subcategories within the                  Frame                                                  Government. This information can be
                                                      product categories that should be                                                                              accessed by clicking on the ‘‘Selling
                                                      considered.                                             A. Background                                          Biobased’’ tab on the left side of the
                                                         4. Today’s proposed rule is expected                   When designating product categories                  home page of the BioPreferred
                                                      to have both positive and negative                      for Federal preferred procurement,                     Program’s Web site.


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                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                           4211

                                                         USDA recognizes that information                     it is expected that categories with only               Intermediates—Plastic Resins;
                                                      related to the functional performance of                a single product will be identified.                   Intermediates—Chemicals;
                                                      biobased products is a primary factor in                   Further, given that the intent of                   Intermediates—Paint and Coating
                                                      making the decision to purchase these                   section 9002 is largely to stimulate the               Components; Intermediates—Textile
                                                      products. USDA is gathering                             production of new biobased products                    Processing Materials; Intermediates—
                                                      information on industry standard test                   and to energize emerging markets for                   Foams; Intermediates—Fibers and
                                                      methods and performance standards                       those products, USDA has determined it                 Fabrics; Intermediates—Lubricant
                                                      that manufacturers are using to evaluate                is appropriate to designate a product                  Components; Intermediates—Binders;
                                                      the functional performance of their                     category or subcategory for Federal                    Intermediates—Cleaner Components;
                                                      products. (Test methods are procedures                  preferred procurement even when there                  Intermediates—Personal Care Product
                                                      used to provide information on a certain                is only a single product with a single                 Components; Intermediates—Oils, Fats,
                                                      attribute of a product. For example, a                  supplier. Similarly, the documented                    and Waxes; and Intermediates—Rubber
                                                      test method might determine how many                    availability and benefits of even a very               Materials.
                                                      bacteria are killed. Performance                        small percentage of all products that                     USDA has determined that each of
                                                      standards identify the level at which a                 may exist within a product category are                these product categories meets the
                                                      product must perform in order for it to                 also considered sufficient to support                  necessary statutory requirements—
                                                      be ‘‘acceptable’’ to the entity that set the            designation.                                           namely, that they are being produced
                                                      performance standard. For example, a                       Exemptions. Products that are exempt                with biobased materials and that their
                                                      performance standard might require that                 from the biobased procurement                          procurement by procuring agencies will
                                                      a certain percentage (e.g., 95 percent) of              preference are military equipment,                     carry out the following objectives of
                                                      bacteria must be killed through the use                 defined as any product or system                       section 9002:
                                                      of the product.) The primary sources of                 designed or procured for combat or                        • To increase demand for biobased
                                                      information on these test methods and                   combat-related missions, and spacecraft                products, which would in turn increase
                                                      performance standards are                               systems and launch support equipment.                  demand for agricultural commodities
                                                      manufacturers of biobased products                      However, USDA points out that it is not                that can serve as feedstocks for the
                                                      within these product categories.                        the intent of these exemptions to imply                production of biobased products;
                                                      Additional test methods and                             that biobased products are inferior to                    • To spur development of the
                                                      performance standards are also                          non-biobased products and agencies are                 industrial base through value-added
                                                      identified during meetings of the                       encouraged to purchase biobased                        agricultural processing and
                                                      interagency council and during the                      products wherever performance,                         manufacturing in rural communities;
                                                      review process for each proposed rule.                  availability and reasonable price                      and
                                                      We have listed, under the detailed                      indicates that such purchases are                         • To enhance the Nation’s energy
                                                      discussion of each product category                     justified.                                             security by substituting biobased
                                                      proposed for designation (presented in                     Although each product category in                   products for products derived from
                                                      Section IV.B), the functional                           today’s proposed rule would be exempt                  imported oil and natural gas.
                                                      performance test methods, performance                   from the procurement preference                           Further, USDA anticipates that the
                                                      standards, product certifications, and                  requirement when used in spacecraft                    designation of these intermediate
                                                      other measures of performance                           systems or launch support application                  ingredient product categories will
                                                      associated with the functional aspects of               or in military equipment used in combat                facilitate the designation of the many
                                                      products identified during the                          and combat-related applications, this                  categories of finished consumer
                                                      development of this Federal Register                    exemption does not extend to                           products that are made from these
                                                      notice for these product categories.                    contractors performing work other than                 biobased intermediate ingredients. This
                                                         While this process identifies many of                direct maintenance and support of the                  designation of finished products made
                                                      the relevant test methods and standards,                spacecraft or launch support equipment                 from designated ingredients was one
                                                      USDA recognizes that those identified                   or combat or combat-related missions.                  key addition to Section 9002 made by
                                                      herein do not represent all of the                      For example, if a contractor is applying               the 2008 Farm Bill.
                                                      methods and standards that may be                       a paint remover product as a step in                      In addition, because of the
                                                      applicable for a product category or for                refurbishing office furniture on a                     participation by the manufacturers of
                                                      any individual product within the                       military base, the paint remover the                   these products in the voluntary labeling
                                                      category. As noted earlier in this                      contractor purchases should be a                       initiative, USDA has sufficient
                                                      preamble, USDA is requesting                            qualifying biobased paint remover. The                 information on these product categories
                                                      identification of other relevant                        exemption does apply, however, if the                  to determine their availability and to
                                                      performance standards and measures of                   product being purchased by the                         conduct the requisite analyses to
                                                      performance. As the program becomes                     contractor is for use in combat or                     determine their biobased content and
                                                      fully implemented, these and other                      combat-related missions or for use in                  their economic and technological
                                                      additional relevant performance                         space or launch applications. After                    feasibility.
                                                      standards will be available on the                      reviewing the regulatory requirement                      The proposed designated product
                                                      BioPreferred Program’s Web site.                        and the relevant contract, where                       categories are discussed in the following
                                                         To propose a product category for                    contractors have any questions on the                  sections.
                                                      designation, USDA must have sufficient                  exemption, they should contact the
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                                                      information on a sufficient number of                                                                          1. Intermediates—Plastic Resins
                                                                                                              cognizant contracting officer.
                                                      products within the category to be able                                                                        (Minimum Biobased Content 22
                                                      to assess its availability and its                      B. Product Categories and Minimum                      Percent)
                                                      economic and technological feasibility.                 Biobased Contents Proposed for                            Intermediates—Plastic Resins are
                                                      For some product categories, there may                  Designation                                            materials that are typically viscous
                                                      be numerous products available. For                       In today’s proposed rule, USDA is                    liquids with the ability to harden
                                                      others, there may be very few products                  proposing to designate the following                   permanently and may exist in liquid or
                                                      currently available. Given the infancy of               product categories for the Federal                     solid (powder or pellets) states.
                                                      the market for some product categories,                 preferred procurement program:                         Intermediates—Plastic Resins may be


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                                                      4212                      Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      used in a variety of finished products                  Aerobically Composted in Municipal or                  exclude any of the products categorized
                                                      neat, consisting of a single resin, or as               Industrial Facilities,                                 as Intermediates—Chemicals. Thus, the
                                                      a homogeneous blend of two or more                         • BPI Certification; Compostable in                 proposed minimum biobased content
                                                      neat resins, or composite, containing                   Municipal and Industrial Composting                    for this product category is 22 percent,
                                                      two or more distinct materials such as                  Facilities                                             based on the products with a tested
                                                      fiber-reinforced resins. Additionally,                     • ISO 9001; Quality Management                      biobased content of 25 percent.
                                                      Intermediates—Plastic Resins may be                     Systems—Requirements, and                                 Relevant product information
                                                      used in finished products as additives                     • Vinçotte; OK COMPOST.                            supplied by these manufacturers and
                                                      such as plasticizers, pigments, thermal                    USDA has been unable to obtain data                 suppliers indicates that these products
                                                      stability agents, or impact modifiers.                  on the amount of Intermediates—Plastic                 are being used commercially. However,
                                                         USDA identified 62 manufacturers                     Resins purchased by Federal procuring                  these 27 manufacturers and suppliers
                                                      and suppliers of 150 biobased                           agencies. As discussed earlier, the                    did not identify any applicable
                                                      Intermediates—Plastic Resins. These                     primary benefit of designating                         performance standards, test methods, or
                                                      manufacturers and suppliers do not                      intermediate ingredient product                        other industry measures of performance
                                                                                                              categories is not to promote their direct              against which these products have been
                                                      include all manufacturers and suppliers
                                                                                                              purchase by Federal agencies but,                      tested. USDA points out that the lack of
                                                      of biobased Intermediates—Plastic
                                                                                                              rather, to establish the framework for                 identified performance standards is not
                                                      Resins, merely those identified through
                                                                                                              designation of the extensive number of                 relevant to the designation of a product
                                                      the USDA Certified Biobased Products
                                                                                                              finished products that are made from                   category for Federal preferred
                                                      in the BioPreferred Program’s database.
                                                                                                              these intermediate ingredients.                        procurement because it is not one of the
                                                      These 150 biobased Intermediates—                          Specific product information,
                                                      Plastic Resins range in biobased content                                                                       criteria section 9002 requires USDA to
                                                                                                              including company contact, intended                    consider in order to designate a product
                                                      from 25 percent to 100 percent, as                      use, biobased content, and performance
                                                      measured by ASTM D6866. In                                                                                     category for Federal preferred
                                                                                                              characteristics has been collected on                  procurement. If and when performance
                                                      establishing the minimum biobased                       150 Intermediates—Plastic Resins and
                                                      content requirement for this product                                                                           standards, test methods, and other
                                                                                                              may be found on the BioPreferred                       relevant measures of performance are
                                                      category, USDA did not find a reason to                 Program’s Web site.
                                                      exclude any of the products categorized                                                                        identified for this product category,
                                                      as Intermediates—Plastic Resins. Thus,                  2. Intermediates—Chemicals (Minimum                    USDA will provide such information on
                                                      the proposed minimum biobased                           Biobased Content: 22 Percent)                          the BioPreferred Program’s Web site.
                                                                                                                                                                        USDA has been unable to obtain data
                                                      content for this product category is 22                    Intermediates—Chemicals are those                   on the amount of Intermediates—
                                                      percent, based on the products with a                   used as reactants for organic synthesis                Chemicals purchased by Federal
                                                      tested biobased content of 25 percent.                  reactions rather than for their functional             procuring agencies. As discussed
                                                         Information supplied by these                        properties in a chemical mixture; those                earlier, the primary benefit of
                                                      manufacturers and suppliers indicates                   used as building block chemicals and                   designating intermediate ingredient
                                                      that these products are being used                      secondary chemicals such as glycerol,                  product categories is not to promote
                                                      commercially. In addition, some of                      succinic acid, propanediol, and                        their direct purchase by Federal
                                                      these manufacturers and suppliers                       monomers such as lactic acid and                       agencies but, rather, to establish the
                                                      identified nine test methods (as shown                  propylene; those used for specific                     framework for designation of the
                                                      below) used in evaluating products                      functional properties during                           extensive number of finished products
                                                      within the product category. While                      manufacturing of other products such as                that are made from these intermediate
                                                      there may be additional test methods, as                pH regulators, flocculants, precipitants,              ingredients.
                                                      well as performance standards, product                  neutralizing agents, emulsifiers,                         Specific product information,
                                                      certifications, and other measures of                   detergents, wetting agents, foaming                    including company contact, intended
                                                      performance, applicable to products                     agents, or dispersants; those that are                 use, biobased content, and performance
                                                      within this product category, the test                  added to end-use products for their                    characteristics, has been collected on
                                                      methods identified by the                               specific functional properties including               these 70 Intermediate—Chemicals
                                                      manufacturers and suppliers include:                    solvents for thinning and drying                       products and is available on the
                                                         • ASTM D256; Standard Test                           applications but excluding solvents                    BioPreferred Program’s Web site.
                                                      Methods for Determining the Izod                        used for cleaning; and those used for
                                                      Pendulum Impact Resistance of Plastics,                 dyes, pigments, and scents including                   3. Intermediates—Paint and Coating
                                                         • ASTM D638; Standard Test Method                    flavorings for non-food products such as               Components (Minimum Biobased
                                                      for Tensile Properties of Plastics,                     lip balm.                                              Content 22 Percent)
                                                         • ASTM D790; Standard Test                              USDA identified 27 manufacturers                       Intermediates—Paint and Coating
                                                      Methods for Flexural Properties of                      and suppliers of 70 biobased                           Components are ingredients used to
                                                      Unreinforced and Reinforced Plastics                    Intermediates—Chemicals. These 27                      formulate finished waterborne or
                                                      and Electrical Insulating Materials,                    manufacturers and suppliers do not                     solvent borne paint and coating
                                                         • ASTM D882; Standard Test Method                    necessarily include all manufacturers                  products. Examples of Intermediates—
                                                      for Tensile Properties of Thin Plastic                  and suppliers of Intermediates—                        Paint and Coating Components include
                                                      Sheeting,                                               Chemicals, merely those identified                     binders, pigments thickeners, curing
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                                                         • ASTM D6400; Standard                               through the USDA Certified Biobased                    agents, modifiers, alkyd latex resins,
                                                      Specification for Labeling of Plastics                  Products in the BioPreferred Program’s                 polyols, reactive oligomers, or reactive
                                                      Designed to be Aerobically Composted                    database. These 70 biobased                            diluents.
                                                      in Municipal or Industrial Facilities,                  Intermediates—Chemicals range in                          USDA identified 13 manufacturers
                                                         • ASTM D6868; Standard                               biobased content from 25 percent to 100                and suppliers of 51 biobased
                                                      Specification for Labeling of End Items                 percent, as measured by ASTM D6866.                    Intermediates—Paint and Coating
                                                      that Incorporate Plastics and Polymers                  In establishing the minimum biobased                   Components. These manufacturers and
                                                      as Coatings or Additives with Paper and                 content requirement for this product                   suppliers do not include all
                                                      Other Substrates Designed to be                         category, USDA did not find a reason to                manufacturers and suppliers of biobased


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                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                           4213

                                                      Intermediates—Paint and Coating                         textile characteristics such as color,                 Processing Materials and may be found
                                                      Components, merely those identified                     fading, wrinkle resistance, texture, or                on the BioPreferred Program’s Web site.
                                                      through the USDA Certified Biobased                     moisture management.
                                                                                                                 USDA identified four manufacturers                  5. Intermediates—Foams (Minimum
                                                      Products in the BioPreferred Program’s
                                                                                                              and suppliers of 24 biobased                           Biobased Content 22 Percent)
                                                      database. These 51 biobased
                                                      Intermediates—Paint and Coating                         Intermediates—Textile Processing                          Intermediates—Foams are dry
                                                      Components range in biobased content                    Materials. These manufacturers and                     polymer foams used for non-
                                                      from 25 percent to 100 percent, as                      suppliers do not include all                           construction purposes, such as cushions
                                                      measured by ASTM D6866. In                              manufacturers and suppliers of biobased                for furniture.
                                                      establishing the minimum biobased                       Intermediates—Textile Processing                          USDA identified seven manufacturers
                                                      content requirement for this product                    Materials, merely those identified                     and suppliers of eight biobased
                                                      category, USDA did not find a reason to                 through the USDA Certified Biobased                    Intermediates—Foams. These
                                                      exclude any of the products categorized                 Products in the BioPreferred Program’s                 manufacturers and suppliers do not
                                                      as Intermediates—Paint and Coating                      database. These 24 biobased                            include all manufacturers and suppliers
                                                      Components. Thus, the proposed                          Intermediates—Textile Processing                       of biobased Intermediates—Foams,
                                                      minimum biobased content for this                       Materials range in biobased content                    merely those identified through the
                                                      product category is 22 percent, based on                from 25 percent to 98 percent, as                      USDA Certified Biobased Products in
                                                      the products with a tested biobased                     measured by ASTM D6866. In                             the BioPreferred Program’s database.
                                                      content of 25 percent.                                  establishing the minimum biobased                      These eight biobased Intermediates—
                                                         Information supplied by these                        content requirement for this product                   Foams were each measured by ASTM
                                                      manufacturers and suppliers indicates                   category, USDA did not find a reason to                D6866 to have 25, 30, 30, 33, 33, 40, 53,
                                                      that these products are being used                      exclude any of the products categorized                and 53 percent biobased contents. In
                                                      commercially. However, these                            as Intermediates—Textile Processing                    establishing the minimum biobased
                                                      manufacturers and suppliers did not                     Materials. Thus, the proposed minimum                  content requirement for this product
                                                      identify any applicable performance                     biobased content for this product                      category, USDA did not find a reason to
                                                      standards, test methods, or other                       category is 22 percent, based on the                   exclude any of the products categorized
                                                      industry measures of performance                        products with a tested biobased content                as Intermediates—Foams. Thus, the
                                                      against which these products have been                  of 25 percent.                                         proposed minimum biobased content
                                                      tested. USDA points out that the lack of                   Information supplied by these                       for this product category is 22 percent,
                                                      identified performance standards is not                 manufacturers and suppliers indicates                  based on the product with a tested
                                                      relevant to the designation of a product                that these products are being used                     biobased content of 25 percent.
                                                      category for Federal preferred                          commercially. However, these                              Information supplied by these
                                                      procurement because it is not one of the                manufacturers and suppliers did not                    manufacturers and suppliers indicates
                                                      criteria section 9002 requires USDA to                  identify any applicable performance                    that these products are being used
                                                      consider in order to designate a product                standards, test methods, or other                      commercially. In addition, some of
                                                      category for Federal preferred                          industry measures of performance                       these manufacturers and suppliers
                                                      procurement. If and when performance                    against which these products have been                 identified three test methods (as shown
                                                      standards, test methods, and other                      tested. USDA points out that the lack of               below) used in evaluating products
                                                      relevant measures of performance are                    identified performance standards is not                within the product category. While
                                                      identified for this product category,                   relevant to the designation of a product               there may be additional test methods, as
                                                      USDA will provide such information on                   category for Federal preferred                         well as performance standards, product
                                                      the BioPreferred Program’s Web site.                    procurement because it is not one of the               certifications, and other measures of
                                                         USDA has been unable to obtain data                  criteria section 9002 requires USDA to                 performance, applicable to products
                                                      on the amount of Intermediates—Paint                    consider in order to designate a product               within this product category, the test
                                                      and Coating Components purchased by                     category for Federal preferred                         methods identified by the
                                                      Federal procuring agencies. As                          procurement. If and when performance                   manufacturers and suppliers include:
                                                      discussed earlier, the primary benefit of               standards, test methods, and other                        • ASTM D97; Standard Test Method
                                                      designating intermediate ingredient                     relevant measures of performance are                   for Pour Point of Petroleum Products,
                                                      product categories is not to promote                    identified for this product category,                     • ASTM D6868; Standard
                                                      their direct purchase by Federal                        USDA will provide such information on                  Specification for Labeling of End Items
                                                      agencies but, rather, to establish the                  the BioPreferred Program’s Web site.                   that Incorporate Plastics and Polymers
                                                      framework for designation of the                           USDA has been unable to obtain data                 as Coatings or Additives with Paper and
                                                      extensive number of finished products                   on the amount of Intermediates—Textile                 Other Substrates Designed to be
                                                      that are made from these intermediate                   Processing Materials purchased by                      Aerobically Composted in Municipal or
                                                      ingredients.                                            Federal procuring agencies. As                         Industrial Facilities, and
                                                         Specific product information,                        discussed earlier, the primary benefit of                 • California Technical Bulletin 117;
                                                      including company contact, intended                     designating intermediate ingredient                    Requirements, Test Procedure and
                                                      use, biobased content, and performance                  product categories is not to promote                   Apparatus for Testing the Flame
                                                      characteristics has been collected on                   their direct purchase by Federal                       Retardance of Resilient Filling Materials
                                                      these 51 Intermediates—Paint and                        agencies but, rather, to establish the                 Used In Upholstered Furniture.
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      Coating Components and may be found                     framework for designation of the                          USDA has been unable to obtain data
                                                      on the BioPreferred Program’s Web site.                 extensive number of finished products                  on the amount of Intermediates—Foams
                                                                                                              that are made from these intermediate                  purchased by Federal procuring
                                                      4. Intermediates—Textile Processing                     ingredients.                                           agencies. As discussed earlier, the
                                                      Materials (Minimum Biobased Content                        Specific product information,                       primary benefit of designating
                                                      22 Percent)                                             including company contact, intended                    intermediate ingredient product
                                                         Intermediates—Textile Processing                     use, biobased content, and performance                 categories is not to promote their direct
                                                      Materials are used to treat or finish                   characteristics, has been collected on                 purchase by Federal agencies but,
                                                      textiles for the purposes of altering                   these 24 Intermediates—Textile                         rather, to establish the framework for


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                                                      4214                      Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      designation of the extensive number of                     • ACT Physical Properties                           that these products are being used
                                                      finished products that are made from                    Performance Guidelines,                                commercially. In addition, one of these
                                                      these intermediate ingredients.                            • ASTM D737; Standard Test Method                   manufacturers and suppliers identified
                                                         Specific product information,                        for Air Permeability of Textile Fabrics,               one test method used in evaluating
                                                      including company contact, intended                        • ASTM D6868; Standard                              products within the product category.
                                                      use, biobased content, and performance                  Specification for Labeling of End Items                While there may be additional test
                                                      characteristics, has been collected on                  that Incorporate Plastics and Polymers                 methods, as well as performance
                                                      these eight Intermediates—Foams and                     as Coatings or Additives with Paper and                standards, product certifications, and
                                                      may be found on the BioPreferred                        Other Substrates Designed to be                        other measures of performance,
                                                      Program’s Web site.                                     Aerobically Composted in Municipal or                  applicable to products within this
                                                                                                              Industrial Facilities, and                             product category, the test method
                                                      6. Intermediates—Fibers and Fabrics                        • Oeko-Tex Standard 100; Tests for                  identified by the manufacturer and
                                                      (Minimum Biobased Content 25                            Harmful Substances in Textiles.                        supplier is NSF H1 Nonfood Compound
                                                      Percent)                                                   USDA has been unable to obtain data                 Product Registration Program.
                                                         Intermediates—Fibers and Fabrics                     on the amount of Intermediates—Fibers                     USDA has been unable to obtain data
                                                      encompasses plant and animal fibers,                    and Fabrics purchased by Federal                       on the amount of Intermediates—
                                                      fibers made from plant-derived                          procuring agencies. As discussed                       Lubricant Components purchased by
                                                      polymers that are not yet formed into                   earlier, the primary benefit of                        Federal procuring agencies. As
                                                      more complex products such as carpet                    designating intermediate ingredient                    discussed earlier, the primary benefit of
                                                      or fabrics, fabrics made from natural                   product categories is not to promote                   designating intermediate ingredient
                                                      fibers, fabrics made from synthetic                     their direct purchase by Federal                       product categories is not to promote
                                                      fibers, or fabrics made from a blend of                 agencies but, rather, to establish the                 their direct purchase by Federal
                                                      the two. These materials are used to                    framework for designation of the                       agencies but, rather, to establish the
                                                      manufacture finished products such as                   extensive number of finished products                  framework for designation of the
                                                      clothing, upholstery, or drapes.                        that are made from these intermediate                  extensive number of finished products
                                                         USDA identified 16 manufacturers                     ingredients.                                           that are made from these intermediate
                                                                                                                 Specific product information,                       ingredients.
                                                      and suppliers of 48 biobased
                                                                                                              including company contact, intended                       Specific product information,
                                                      Intermediates—Fibers and Fabrics.
                                                                                                              use, biobased content, and performance                 including company contact, intended
                                                      These manufacturers and suppliers do
                                                                                                              characteristics, has been collected on 48              use, biobased content, and performance
                                                      not include all manufacturers and
                                                                                                              Intermediates—Fibers and Fabrics and                   characteristics, has been collected on
                                                      suppliers of biobased Intermediates—
                                                                                                              may be found on the BioPreferred                       these 35 Intermediates—Lubricant
                                                      Fibers and Fabrics, merely those
                                                                                                              Program’s Web site.                                    Components and may be found on the
                                                      identified through the USDA Certified
                                                                                                                                                                     BioPreferred Program’s Web site.
                                                      Biobased Products in the BioPreferred                   7. Intermediates—Lubricant
                                                      Program’s database. These 48 biobased                   Components (Minimum Biobased                           8. Intermediates—Binders (Minimum
                                                      Intermediates—Fibers and Fabrics range                  Content 44 Percent)                                    Biobased Content 47 Percent)
                                                      in biobased content from 28 percent to                     Intermediates—Lubricant                                Intermediates—Binders are materials
                                                      100 percent, as measured by ASTM                        Components are ingredients that used                   used to provide cohesiveness
                                                      D6866. In establishing the minimum                      specifically to formulate finished                     throughout an entire finished product.
                                                      biobased content requirement for this                   lubricant products. Examples of                        The product category does not include
                                                      product category, USDA did not find a                   Intermediates—Lubricant Components                     adhesives and glues that are finished
                                                      reason to exclude any of the products                   include base oils, base fluids, additives,             products used to attach the surfaces of
                                                      categorized as Intermediates—Fibers                     or friction modifiers.                                 two or more distinct and separate
                                                      and Fabrics. Thus, the proposed                            USDA identified nine manufacturers                  components to one another.
                                                      minimum biobased content for this                       and suppliers of 35 biobased                              USDA identified one manufacturer
                                                      product category is 25 percent, based on                Intermediates—Lubricant Components.                    and supplier of one biobased
                                                      the product with a tested biobased                      These manufacturers and suppliers do                   Intermediates—Binders. This
                                                      content of 28 percent.                                  not include all manufacturers and                      manufacturer and supplier is not
                                                         Information supplied by these                        suppliers of biobased Intermediates—                   expected to be the only manufacturer
                                                      manufacturers and suppliers indicates                   Lubricant Components, merely those                     and supplier of biobased
                                                      that these products are being used                      identified through the USDA Certified                  Intermediates—Binders, merely the only
                                                      commercially. In addition, some of                      Biobased Products in the BioPreferred                  one that was identified through the
                                                      these manufacturers and suppliers                       Program’s database. These 35 biobased                  USDA Certified Biobased Products in
                                                      identified seven test methods (as shown                 Intermediates—Lubricant Components                     the BioPreferred Program’s database.
                                                      below) used in evaluating products                      range in biobased content from 47                      The biobased content of this
                                                      within the product category. While                      percent to 100 percent, as measured by                 Intermediates—Binders product is 50
                                                      there may be additional test methods, as                ASTM D6866. In establishing the                        percent, as measured by ASTM D6866.
                                                      well as performance standards, product                  minimum biobased content requirement                   As discussed earlier, the tested value
                                                      certifications, and other measures of                   for this product category, USDA did not                was reduced by 3 percentage points to
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      performance, applicable to products                     find a reason to exclude any of the                    account for the inherent variability in
                                                      within this product category, the test                  products categorized as Intermediates—                 the test method. Thus, the proposed
                                                      methods identified by the                               Lubricants. Thus, the proposed                         minimum biobased content for this
                                                      manufacturers and suppliers include:                    minimum biobased content for this                      product category is 47 percent.
                                                         • AATCC 79; Absorbency of Textiles,                  product category is 44 percent, based on                  Information supplied by this
                                                         • AATCC 197; Vertical Wicking of                     the products with a tested biobased                    manufacturer indicates that this product
                                                      Textiles,                                               content of 47 percent.                                 is being used commercially. However,
                                                         • AATCC 198; Horizontal Wicking of                      Information supplied by these                       this manufacturer and supplier did not
                                                      Textiles,                                               manufacturers and suppliers indicates                  identify any applicable performance


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                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                           4215

                                                      standards, test methods, or other                       percent, based on the products with a                  Components, merely those identified
                                                      industry measures of performance                        tested biobased content of 58 percent.                 through the USDA Certified Biobased
                                                      against which this product has been                        Information supplied by these                       Products in the BioPreferred Program’s
                                                      tested. USDA points out that the lack of                manufacturers and suppliers indicates                  database. These 37 biobased
                                                      identified performance standards is not                 that these products are being used                     Intermediates—Personal Care Product
                                                      relevant to the designation of a product                commercially. In addition, one of the                  Components range in biobased content
                                                      category for Federal preferred                          manufacturers and suppliers identified                 from 65 percent to 100 percent, as
                                                      procurement because it is not one of the                five test methods (as shown below) used                measured by ASTM D6866. In
                                                      criteria section 9002 requires USDA to                  in evaluating its product within the                   establishing the minimum biobased
                                                      consider in order to designate a product                product category. While there may be                   content requirement for this product
                                                      category for Federal preferred                          additional test methods, as well as
                                                                                                                                                                     category, USDA did not find a reason to
                                                      procurement. If and when performance                    performance standards, product
                                                                                                                                                                     exclude any of the products categorized
                                                      standards, test methods, and other                      certifications, and other measures of
                                                                                                              performance, applicable to products                    as Intermediates—Personal Care Product
                                                      relevant measures of performance are
                                                                                                              within this product category, the test                 Components. Thus, the proposed
                                                      identified for this product category,
                                                      USDA will provide such information on                   methods identified by the manufacturer                 minimum biobased content for this
                                                      the BioPreferred Program’s Web site.                    and supplier include:                                  product category is 62 percent, based on
                                                         USDA has been unable to obtain data                     • ASTM D93; Standard Test Methods                   the products with a tested biobased
                                                      on the amount of Intermediates—                         for Flash Point by Pensky-Martens                      content of 65 percent.
                                                      Binders purchased by Federal procuring                  Closed Cup Tester,                                        Information supplied by these
                                                      agencies. As discussed earlier, the                        • ASTM D1133; Standard Test                         manufacturers and suppliers indicates
                                                      primary benefit of designating                          Method for Kauri-Butanol Value of                      that these products are being used
                                                      intermediate ingredient product                         Hydrocarbon Solvents,                                  commercially. In addition, some these
                                                      categories is not to promote their direct                  • ASTM D2887; Standard Test
                                                                                                                                                                     manufacturers and suppliers identified
                                                      purchase by Federal agencies but,                       Method for Boiling Range Distribution
                                                                                                                                                                     3 test methods (as shown below) used
                                                      rather, to establish the framework for                  of Petroleum Fractions by Gas
                                                                                                              Chromatography, and                                    in evaluating products within the
                                                      designation of the extensive number of                                                                         product category. While there may be
                                                                                                                 • EPA Method 24; Determination of
                                                      finished products that are made from                                                                           additional test methods, as well as
                                                                                                              Volatile Matter Content, Water Content,
                                                      these intermediate ingredients.                                                                                performance standards, product
                                                                                                              Density, Volume Solids, and Weight
                                                         Specific product information,                        Solids of Surface Coatings.                            certifications, and other measures of
                                                      including company contact, intended                        USDA has been unable to obtain data                 performance, applicable to products
                                                      use, biobased content, and performance                  on the amount of Intermediates—                        within this product category, the test
                                                      characteristics, has been collected on                  Cleaner Components purchased by                        methods identified by the
                                                      this one Intermediates—Binders product                  Federal procuring agencies. As                         manufacturers and suppliers include:
                                                      and may be found on the BioPreferred                    discussed earlier, the primary benefit of
                                                      Program’s Web site.                                                                                               • ASTM D6868; Standard
                                                                                                              designating intermediate ingredient                    Specification for Labeling of End Items
                                                      9. Intermediates—Cleaner Components                     product categories is not to promote
                                                                                                                                                                     that Incorporate Plastics and Polymers
                                                      (Minimum Biobased Content 55                            their direct purchase by Federal
                                                                                                                                                                     as Coatings or Additives with Paper and
                                                      Percent)                                                agencies but, rather, to establish the
                                                                                                                                                                     Other Substrates Designed to be
                                                                                                              framework for designation of the
                                                        Intermediates—Cleaner Components                      extensive number of finished products                  Aerobically Composted in Municipal or
                                                      are intermediate ingredients used                       that are made from these intermediate                  Industrial Facilities, and
                                                      specifically for formulating finished                   ingredients.                                              • EPA Method 24; Determination of
                                                      cleaning products. Examples of                             Specific product information,                       Volatile Matter Content, Water Content,
                                                      Intermediates—Cleaner Components                        including company contact, intended                    Density, Volume Solids, and Weight
                                                      include chelating agents, surfactants,                  use, biobased content, and performance                 Solids of Surface Coatings.
                                                      hydrotropes, fatty acids, or solvents.                  characteristics, has been collected on
                                                        USDA identified eight manufacturers                                                                             USDA has been unable to obtain data
                                                                                                              these 19 Intermediates—Cleaner
                                                      and suppliers of 19 different biobased                                                                         on the amount of Intermediates—
                                                                                                              Components and may be found on the
                                                      Intermediates—Cleaner Components.                                                                              Personal Care Product Components
                                                                                                              BioPreferred Program’s Web site.
                                                      These eight manufacturers and                                                                                  purchased by Federal procuring
                                                      suppliers do not necessarily include all                10. Intermediates—Personal Care                        agencies. As discussed earlier, the
                                                      manufacturers and suppliers of biobased                 Product Components (Minimum                            primary benefit of designating
                                                      Intermediates—Cleaner Components,                       Biobased Content 62 Percent)                           intermediate ingredient product
                                                      merely those identified through the                       Intermediates—Personal Care Product                  categories is not to promote their direct
                                                      USDA Certified Biobased Products in                     Components are ingredients used to                     purchase by Federal agencies but,
                                                      the BioPreferred Program’s database.                    formulate finished personal care                       rather, to establish the framework for
                                                      These 19 biobased Intermediates—                        products. Examples of Intermediates—                   designation of the extensive number of
                                                      Cleaner Components range in biobased                    Personal Care Product Components                       finished products that are made from
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      content from 58 percent to 99 percent,                  include surfactants, oils, humectants,                 these intermediate ingredients.
                                                      as measured by ASTM D6866. In                           emollients, or emulsifiers.                               Specific product information,
                                                      establishing the minimum biobased                         USDA identified nine manufacturers
                                                                                                                                                                     including company contact, intended
                                                      content requirement for this product                    and suppliers of 37 biobased
                                                      category, USDA did not find a reason to                 Intermediates—Personal Care Product                    use, biobased content, and performance
                                                      exclude any of the products categorized                 Components. These manufacturers and                    characteristics, has been collected on 37
                                                      as Intermediates—Cleaner Components.                    suppliers do not include all                           Intermediates—Personal Care Product
                                                      Thus, the proposed minimum biobased                     manufacturers and suppliers of biobased                Components and may be found on the
                                                      content for this product category is 55                 Intermediates—Personal Care Product                    BioPreferred Program’s Web site.


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                                                      4216                      Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      11. Intermediates—Oils, Fats, and                       12. Intermediates—Rubber Materials                     that are made from these intermediate
                                                      Waxes (Minimum Biobased Content 65                      (Minimum Biobased Content 96                           ingredients.
                                                      Percent)                                                Percent)                                                 Specific product information,
                                                                                                                                                                     including company contact, intended
                                                         Intermediates—Oils, Fats, and Waxes                     Intermediates—Rubber Materials are                  use, biobased content, and performance
                                                      include raw or modified fats and oils                   used in finished products such as                      characteristics, has been collected on
                                                      derived from plants or animals.                         rubber gloves, vehicle tires, footwear,                these two Intermediates—Rubber
                                                                                                              sports apparel and equipment, bedding                  Materials and may be found on the
                                                         USDA identified five manufacturers                   and pillow foams, tubing, catheters,
                                                      and suppliers of 24 biobased                                                                                   BioPreferred Program’s Web site.
                                                                                                              gasketing, or cosmetic adhesives and
                                                      Intermediates—Oils, Fats, and Waxes.                    bases.                                                 C. Compliance Date for Procurement
                                                      These manufacturers and suppliers do                                                                           Preference and Incorporation Into
                                                      not include all manufacturers and                          USDA identified one manufacturer
                                                                                                                                                                     Specifications
                                                                                                              and supplier of two biobased
                                                      suppliers of biobased Intermediates—                                                                              USDA intends for the final rule to
                                                                                                              Intermediates—Rubber Materials. This
                                                      Oils, Fats, and Waxes, merely those                                                                            take effect thirty (30) days after
                                                                                                              manufacturer and supplier is not
                                                      identified through the USDA Certified                                                                          publication of the final rule. USDA
                                                                                                              expected to be the only manufacturer
                                                      Biobased Products in the BioPreferred                                                                          proposes that starting from the date of
                                                                                                              and supplier of biobased
                                                      Program’s database. These 24 biobased                                                                          publication of the final rule, procuring
                                                                                                              Intermediates—Rubber Materials,
                                                      Intermediates—Oils, Fats, and Waxes                     merely the only one identified through                 agencies have a one-year transition
                                                      range in biobased content from 68                       the USDA Certified Biobased Products                   period before the procurement
                                                      percent to 100 percent, as measured by                  in the BioPreferred Program’s database.                preference for biobased products within
                                                      ASTM D6866. In establishing the                         These two biobased Intermediates—                      a designated product category takes
                                                      minimum biobased content requirement                    Rubber Materials have biobased                         effect. This proposed timeframe is based
                                                      for this product category, USDA did not                 contents of 99 percent and 100 percent,                on section 9002(a)(3)(B)(viii) of the 2014
                                                      find a reason to exclude any of the                     as measured by ASTM D6866. In                          Farm Bill, which clearly provides a
                                                      products categorized as Intermediates—                  establishing the minimum biobased                      compliance date for amendments to the
                                                      Oils, Fats, and Waxes. Thus, the                        content requirement for this product                   Guidelines of up to one year after
                                                      proposed minimum biobased content                       category, USDA did not find a reason to                publication of a final rule.
                                                      for this product category is 65 percent,                exclude any of the products categorized                   Therefore, USDA is proposing a one-
                                                      based on the products with a tested                     as Intermediates—Rubber Materials.                     year period before the procurement
                                                      biobased content of 68 percent.                         Thus, the proposed minimum biobased                    preferences would take effect because,
                                                                                                              content for this product category is 96                as indicated in 7 CFR 3201.4(c), it
                                                         Information supplied by these
                                                                                                              percent, based on the products with a                  recognizes that Federal agencies will
                                                      manufacturers and suppliers indicates                                                                          need sufficient time to incorporate the
                                                      that these products are being used                      tested biobased content of 99 percent.
                                                                                                                                                                     preferences into procurement
                                                      commercially. In addition, one of these                    The Information supplied by this                    documents and to revise existing
                                                      manufacturers and suppliers identified                  manufacturer and supplier indicates                    standardized specifications.
                                                      one test method used in evaluating a                    that these products are being used                     Additionally, procuring agencies will
                                                      product within the product category.                    commercially. However, this                            need time to evaluate the economic and
                                                      While there may be additional test                      manufacturer and supplier did not                      technological feasibility of the available
                                                      methods, as well as performance                         identify any applicable performance                    biobased products for their agency-
                                                      standards, product certifications, and                  standards, test methods, or other                      specific uses and for compliance with
                                                      other measures of performance,                          industry measures of performance                       agency-specific requirements.
                                                      applicable to products within this                      against which these products have been                    By the time these product categories
                                                      product category, the test method                       tested. USDA points out that the lack of               are promulgated for designation, Federal
                                                      identified by the manufacturer and                      identified performance standards is not                agencies will have had a minimum of 18
                                                      supplier is California Technical Bulletin               relevant to the designation of a product               months (from the date of this Federal
                                                      117.                                                    category for Federal preferred                         Register notice), and much longer
                                                                                                              procurement because it is not one of the               considering when the Guidelines were
                                                         USDA has been unable to obtain data
                                                                                                              criteria section 9002 requires USDA to                 first proposed and these requirements
                                                      on the amount of Intermediates—Oils,                    consider in order to designate a product
                                                      Fats, and Waxes purchased by Federal                                                                           were first laid out, to implement these
                                                                                                              category for Federal preferred                         requirements.
                                                      procuring agencies. As discussed                        procurement. If and when performance
                                                      earlier, the primary benefit of                                                                                   Therefore, USDA proposes that the
                                                                                                              standards, test methods, and other                     mandatory preference for biobased
                                                      designating intermediate ingredient                     relevant measures of performance are                   products under the designated product
                                                      product categories is not to promote                    identified for this product category,                  categories take effect one year after
                                                      their direct purchase by Federal                        USDA will provide such information on                  promulgation of the final rule, which
                                                      agencies but, rather, to establish the                  the BioPreferred Program’s Web site.                   will provide these agencies with ample
                                                      framework for designation of the
                                                                                                                 USDA has been unable to obtain data                 time to evaluate the economic and
                                                      extensive number of finished products
                                                                                                              on the amount of Intermediates—Rubber                  technological feasibility of biobased
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      that are made from these intermediate                                                                          products for a specific use and to revise
                                                                                                              Materials purchased by Federal
                                                      ingredients.                                            procuring agencies. As discussed                       the specifications accordingly. Some
                                                         Specific product information,                        earlier, the primary benefit of                        agencies may be able to complete these
                                                      including company contact, intended                     designating intermediate ingredient                    processes more expeditiously and not
                                                      use, biobased content, and performance                  product categories is not to promote                   all uses will require extensive analysis
                                                      characteristics, has been collected on                  their direct purchase by Federal                       or revision of existing specifications.
                                                      these 24 Intermediates—Oils, Fats, and                  agencies but, rather, to establish the                 Although it is allowing up to one year,
                                                      Waxes and may be found on the                           framework for designation of the                       USDA encourages procuring agencies to
                                                      BioPreferred Program’s Web site.                        extensive number of finished products                  implement the procurement preferences


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                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                            4217

                                                      as early as practicable for procurement                 adversely affect, in a material way, the               other businesses and manufacturers that
                                                      actions involving any of the designated                 economy, a sector of the economy,                      supply only non-qualifying products
                                                      product categories.                                     productivity, competition, jobs, the                   and do not offer biobased alternatives
                                                                                                              environment, public health or safety, or               may experience a decrease in demand
                                                      V. Where can agencies get more
                                                                                                              State, local, or tribal governments or                 from Federal agencies and their
                                                      information on these USDA-designated                    communities; (2) Create a serious                      contractors. USDA is unable to
                                                      product categories?                                     inconsistency or otherwise interfere                   determine the number of businesses,
                                                         The information used to develop this                 with an action taken or planned by                     including small businesses, which may
                                                      proposed rule was voluntarily                           another agency; (3) Materially alter the               be adversely affected by today’s
                                                      submitted by the manufacturers of                       budgetary impact of entitlements,                      proposed rule. The proposed rule,
                                                      products that are categorized within the                grants, user fees, or loan programs or the             however, will not affect existing
                                                      product categories being proposed.                      rights and obligations of recipients                   purchase orders, nor will it preclude
                                                      These manufacturers sought to                           thereof; or (4) Raise novel legal or policy            businesses from modifying their product
                                                      participate in the BioPreferred                         issues arising out of legal mandates, the              lines to meet new requirements for
                                                      Program’s USDA Certified Biobased                       President’s priorities, or the principles              designated biobased products. Because
                                                      Product labeling initiative and                         set forth in this Executive Order.’’                   the extent to which procuring agencies
                                                      submitted product information                              Today’s proposed rule has been                      will find the performance, availability
                                                      necessary for certification. Information                determined by the Office of                            and/or price of biobased products
                                                      on each of these products can be found                  Management and Budget to be not                        acceptable is unknown, it is impossible
                                                      on the BioPreferred Program’s Web site                  significant for purposes of Executive                  to quantify the actual economic effect of
                                                      (http://www.biopreferred.gov).                          Order 12866. We are not able to quantify               the rule.
                                                         Further, once the product category                   the annual economic effect associated
                                                                                                              with today’s proposed rule. USDA                       2. Benefits of the Proposed Rule
                                                      designations in today’s proposal become
                                                      final, manufacturers and vendors                        attempted to obtain information on the                    The designation of these product
                                                      voluntarily may make available                          Federal agencies’ usage within the 12                  categories provides the benefits outlined
                                                      additional information on specific                      designated product categories. These                   in the objectives of section 9002; to
                                                      products for posting by the Agency on                   efforts were largely unsuccessful.                     increase domestic demand for many
                                                      the BioPreferred Program’s Web site.                    Therefore, attempts to determine the                   agricultural commodities that can serve
                                                      USDA has begun performing periodic                      economic impacts of today’s proposed                   as feedstocks for production of biobased
                                                      audits of the information displayed on                  rule would require estimation of the                   products, and to spur development of
                                                      the BioPreferred Program’s Web site                     anticipated market penetration of                      the industrial base through value-added
                                                      and, where questions arise, is contacting               biobased products based upon many                      agricultural processing and
                                                      the manufacturer or vendor to verify,                   assumptions. In addition, because                      manufacturing in rural communities. On
                                                      correct, or remove incorrect or out-of-                 agencies have the option of not                        a national and regional level, today’s
                                                      date information. Procuring agencies                    purchasing products within designated                  proposed rule can result in expanding
                                                      should contact the manufacturers and                    product categories if price is                         and strengthening markets for biobased
                                                      vendors directly to discuss specific                    ‘‘unreasonable,’’ the product is not                   materials used in these product
                                                      needs and to obtain detailed                            readily available, or the product does                 categories.
                                                      information on the availability and                     not demonstrate necessary performance
                                                                                                                                                                     3. Costs of the Proposed Rule
                                                      prices of biobased products meeting                     characteristics, certain assumptions may
                                                      those needs.                                            not be valid. While facing these                          Like the benefits, the costs of today’s
                                                         By accessing the BioPreferred                        quantitative challenges, USDA relied                   proposed rule have not been quantified.
                                                      Program’s Web site, agencies may also                   upon a qualitative assessment to                       Two types of costs are involved: Costs
                                                      be able to obtain any voluntarily-posted                determine the impacts of today’s                       to producers of products that will
                                                      information on each product                             proposed rule. Consideration was also                  compete with the preferred products
                                                      concerning: Relative price; life-cycle                  given to the fact that agencies may                    and costs to Federal agencies to provide
                                                      costs; hot links directly to a                          choose not to procure products within                  procurement preference for the
                                                      manufacturer’s or vendor’s Web site (if                 designated product categories due to                   preferred products. Producers of
                                                      available); performance standards                       unreasonable price.                                    competing products may face a decrease
                                                      (industry, government, military, ASTM/                                                                         in demand for their products to the
                                                                                                              1. Summary of Impacts
                                                      ISO) that the product has been tested                                                                          extent Federal agencies refrain from
                                                                                                                 Today’s proposed rule is expected to                purchasing their products. However, it
                                                      against; and environmental and public                   have both positive and negative impacts
                                                      health information.                                                                                            is not known to what extent this may
                                                                                                              to individual businesses, including                    occur. Pre-award procurement costs for
                                                      VI. Regulatory Information                              small businesses. These positive and                   Federal agencies may rise minimally as
                                                                                                              negative impacts are expected to be                    the contracting officials conduct market
                                                      A. Executive Order 12866: Regulatory                    minimized because Federal agencies do
                                                      Planning and Review and Executive                                                                              research to evaluate the performance,
                                                                                                              not typically purchase significant                     availability, and price reasonableness of
                                                      Order 13563: Improving Regulation and                   quantities of the types of intermediate
                                                      Regulatory Review                                                                                              preferred products before making a
                                                                                                              ingredient products that are the subject               purchase.
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                                                         Executive Order 12866, as                            of today’s proposed rule. However,
                                                      supplemented by Executive Order                         USDA anticipates that the Federal                      B. Regulatory Flexibility Act (RFA)
                                                      13563, requires agencies to determine                   preferred procurement program will                       The RFA, 5 U.S.C. 601–602, generally
                                                      whether a regulatory action is                          ultimately provide additional                          requires an agency to prepare a
                                                      ‘‘significant.’’ The Order defines a                    opportunities for businesses and                       regulatory flexibility analysis of any rule
                                                      ‘‘significant regulatory action’’ as one                manufacturers to begin supplying                       subject to notice and comment
                                                      that is likely to result in a rule that may:            products under the proposed designated                 rulemaking requirements under the
                                                      ‘‘(1) Have an annual effect on the                      biobased product categories to Federal                 Administrative Procedure Act or any
                                                      economy of $100 million or more or                      agencies and their contractors. However,               other statute unless the agency certifies


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                                                      4218                      Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      that the rule will not have a significant               (pesticide and other agricultural                         After considering the economic
                                                      economic impact on a substantial                        chemicals manufacturing), 325411                       impacts of this proposed rule on small
                                                      number of small entities. Small entities                (medicinal and botanical                               entities, USDA certifies that this action
                                                      include small businesses, small                         manufacturing), 325412 (pharmaceutical                 will not have a significant economic
                                                      organizations, and small governmental                   preparation manufacturing), 325510                     impact on a substantial number of small
                                                      jurisdictions.                                          (paint and coating manufacturing),                     entities.
                                                         USDA evaluated the potential impacts                 325612 (polish and other sanitation
                                                      of its proposed designation of these                                                                              While not a factor relevant to
                                                                                                              goods manufacturing), and 325620
                                                      product categories to determine whether                 (toilet preparation manufacturing).                    determining whether the proposed rule
                                                      its actions would have a significant                    USDA obtained information on these                     will have a significant impact for RFA
                                                      impact on a substantial number of small                 seven NAICS categories from the U.S.                   purposes, USDA has concluded that the
                                                      entities. Because the Federal preferred                 Census Bureau’s Economic Census                        effect of the rule will be to provide
                                                      procurement program established under                   database. USDA found that the                          positive opportunities to businesses
                                                      section 9002 applies only to Federal                    Economic Census reports about 4,756                    engaged in the manufacture of these
                                                      agencies and their contractors, small                   companies within these 7 NAICS                         biobased products. Purchase and use of
                                                      governmental (city, county, etc.)                       categories and that these companies                    these biobased products by procuring
                                                      agencies are not affected. Thus, the                    own a total of about 5,374                             agencies increase demand for these
                                                      proposal, if promulgated, will not have                 establishments. Thus, the average                      products and result in private sector
                                                      a significant economic impact on small                  number of establishments per company                   development of new technologies,
                                                      governmental jurisdictions.                             is about 1.13. The Census data also                    creating business and employment
                                                         USDA anticipates that this program                   reported that of the 5,374 individual                  opportunities that enhance local,
                                                      will affect entities, both large and small,             establishments, about 5,228 (97.3                      regional, and national economies.
                                                      that manufacture or sell biobased                       percent) have fewer than 500
                                                      products. For example, the designation                  employees. USDA also found that the                    C. Executive Order 12630:
                                                      of product categories for Federal                       overall average number of employees                    Governmental Actions and Interference
                                                      preferred procurement will provide                      per company among these industries is                  With Constitutionally Protected Property
                                                      additional opportunities for businesses                 about 92 and that the pharmaceutical                   Rights
                                                      to manufacture and sell biobased                        preparation manufacturing segment
                                                      products to Federal agencies and their                                                                           This proposed rule has been reviewed
                                                                                                              (with an average of about 250) is the                  in accordance with Executive Order
                                                      contractors. Similar opportunities will                 only segment reporting an average of
                                                      be provided for entities that supply                                                                           12630, Governmental Actions and
                                                                                                              more than 100 employees per company.
                                                      biobased materials to manufacturers.                                                                           Interference with Constitutionally
                                                                                                              Thus, nearly all of the businesses meet
                                                         The intent of section 9002 is largely                                                                       Protected Property Rights, and does not
                                                                                                              the Small Business Administration’s
                                                      to stimulate the production of new                                                                             contain policies that would have
                                                                                                              definition of a small business (less than
                                                      biobased products and to energize                                                                              implications for these rights.
                                                      emerging markets for those products.                    500 employees, in most NAICS
                                                      Because the biobased product industry                   categories).                                           D. Executive Order 12988: Civil Justice
                                                      as a whole is still a developing market,                   USDA does not have data on the                      Reform
                                                      it is unknown how many businesses                       potential adverse impacts on
                                                                                                              manufacturers of non-biobased products                   This proposed rule has been reviewed
                                                      will ultimately be affected by today’s
                                                      proposed rule. While USDA has no data                   within the product categories being                    in accordance with Executive Order
                                                      on the number of small businesses that                  designated, but believes that the impact               12988, Civil Justice Reform. This
                                                      may choose to develop and market                        will not be significant. Most of the                   proposed rule does not preempt State or
                                                      biobased products within the product                    product categories being proposed for                  local laws, is not intended to have
                                                      categories designated by this                           designation in this rulemaking are used                retroactive effect, and does not involve
                                                      rulemaking, the number is expected to                   to produce typical consumer products                   administrative appeals.
                                                      be small because this industry is still                 widely used by the general public and
                                                                                                                                                                     E. Executive Order 13132: Federalism
                                                      materializing. As such, USDA                            by industrial/commercial
                                                      anticipates that only a small percentage                establishments that are not subject to                    This proposed rule does not have
                                                      of all manufacturers, large or small, are               this rulemaking. Thus, USDA believes                   sufficient federalism implications to
                                                      expected to develop and market                          that the number of small businesses                    warrant the preparation of a Federalism
                                                      biobased products. Thus, the number of                  manufacturing non-biobased products                    Assessment. Provisions of this proposed
                                                      small businesses manufacturing                          within the product categories being                    rule will not have a substantial direct
                                                      biobased products affected by this                      designated and selling significant                     effect on States or their political
                                                      rulemaking is not expected to be                        quantities of those products to                        subdivisions or on the distribution of
                                                      substantial.                                            government agencies affected by this                   power and responsibilities among the
                                                         The Federal preferred procurement                    rulemaking to be relatively low. Also,                 various government levels.
                                                      program may decrease opportunities for                  this proposed rule will not affect
                                                      businesses that manufacture or sell non-                existing purchase orders and it will not               F. Unfunded Mandates Reform Act of
                                                      biobased products or provide                            preclude procuring agencies from                       1995
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                                                      components for the manufacturing of                     continuing to purchase non-biobased
                                                      such products. Most manufacturers of                    products when biobased products do                        This proposed rule contains no
                                                      non-biobased products within the                        not meet the availability, performance,                Federal mandates under the regulatory
                                                      product categories being proposed for                   or reasonable price criteria. This                     provisions of Title II of the Unfunded
                                                      designation for Federal preferred                       proposed rule will also not preclude                   Mandates Reform Act of 1995 (UMRA),
                                                      procurement in this rule are expected to                businesses from modifying their product                2 U.S.C. 1531–1538, for State, local, and
                                                      be included under the following NAICS                   lines to meet new specifications or                    tribal governments, or the private sector.
                                                      codes: 324191 (petroleum lubricating oil                solicitation requirements for these                    Therefore, a statement under section
                                                      and grease manufacturing), 325320                       products containing biobased materials.                202 of UMRA is not required.


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                                                                                Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                             4219

                                                      G. Executive Order 12372:                                   Authority: 7 U.S.C. 8102.                          building block chemicals and secondary
                                                      Intergovernmental Review of Federal                     ■ 2. Add §§ 3201.108 through 3201.119                  chemicals such as glycerol, succinic
                                                      Programs                                                to subpart B to read as follows:                       acid, propanediol, and monomers such
                                                        For the reasons set forth in the Final                                                                       as lactic acid and propylene; those used
                                                                                                              Sec.                                                   for specific functional properties during
                                                      Rule Related Notice for 7 CFR part 3015,                3201.108 Intermediates—Plastic Resins.
                                                      subpart V (48 FR 29115, June 24, 1983),                 3201.109 Intermediates—Chemicals.
                                                                                                                                                                     manufacturing of other products such as
                                                      this program is excluded from the scope                 3201.110 Intermediates—Paint and Coating               pH regulators, flocculants, precipitants,
                                                      of the Executive Order 12372, which                          Components.                                       neutralizing agents, emulsifiers,
                                                      requires intergovernmental consultation                 3201.111 Intermediates—Textile Processing              detergents, wetting agents, foaming
                                                      with State and local officials. This                         Materials.                                        agents, or dispersants; those that are
                                                      program does not directly affect State                  3201.112 Intermediates—Foams.                          added to end-use products for their
                                                                                                              3201.113 Intermediates—Fibers and                      specific functional properties including
                                                      and local governments.                                       Fabrics.                                          solvents for thinning and drying
                                                      H. Executive Order 13175: Consultation                  3201.114 Intermediates—Lubricant                       applications but excluding solvents
                                                      and Coordination With Indian Tribal                          Components.
                                                                                                                                                                     used for cleaning; and those used for
                                                                                                              3201.115 Intermediates—Binders.
                                                      Governments                                                                                                    dyes, pigments, and scents including
                                                                                                              3201.116 Intermediates—Cleaner
                                                        This proposed rule does not                                Components.                                       flavorings for non-food products such as
                                                      significantly or uniquely affect ‘‘one or               3201.117 Intermediates—Personal Care                   lip balm.
                                                      more Indian tribes . . . the relationship                    Product Components.                                  (b) Minimum biobased content. The
                                                      between the Federal Government and                      3201.118 Intermediates—Oils, Fats, and                 Federal preferred procurement product
                                                      Indian tribes, or . . . the distribution of                  Waxes.                                            must have a minimum biobased content
                                                                                                              3201.119 Intermediates—Rubber Materials.               of at least 22 percent, which shall be
                                                      power and responsibilities between the
                                                      Federal Government and Indian tribes.’’                 § 3201.108    Intermediates—Plastic Resins.
                                                                                                                                                                     based on the amount of qualifying
                                                      Thus, no further action is required                                                                            biobased carbon in the product as a
                                                                                                                 (a) Definition. Intermediates—Plastic               percent of the weight (mass) of the total
                                                      under Executive Order 13175.                            Resins are materials that are typically                organic carbon in the finished product.
                                                      I. Paperwork Reduction Act                              viscous liquids with the ability to                       (c) Preference compliance date. No
                                                                                                              harden permanently and may exist in                    later than [date one year after the date
                                                         In accordance with the Paperwork
                                                                                                              liquid or solid (powder or pellets) states.            of publication of the final rule],
                                                      Reduction Act of 1995 (44 U.S.C. 3501
                                                                                                              Intermediates—Plastic Resins may be                    procuring agencies, in accordance with
                                                      through 3520), the information
                                                                                                              used in a variety of finished products                 this part, will give a procurement
                                                      collection under this proposed rule is
                                                                                                              neat, consisting of a single resin, or a               preference for qualifying biobased
                                                      currently approved under OMB control
                                                                                                              homogeneous blend of two or more neat                  Intermediates—Chemicals. By that date,
                                                      number 0503–0011.
                                                                                                              resins, or composite, containing two or                Federal agencies responsible for drafting
                                                      J. E-Government Act Compliance                          more distinct materials such as fiber-                 or reviewing specifications for products
                                                         USDA is committed to compliance                      reinforced resins.                                     to be procured shall ensure that the
                                                      with the E-Government Act, which                           Additionally, Intermediates—Plastic                 relevant specifications require the use of
                                                      requires Government agencies in general                 Resins may be used in finished products                biobased Intermediates—Chemicals.
                                                      to provide the public the option of                     as additives such as plasticizers,
                                                                                                              pigments, thermal stability agents, or                 § 3201.110 Intermediates—Paint and
                                                      submitting information or transacting
                                                                                                              impact modifiers.                                      Coating Components.
                                                      business electronically to the maximum
                                                      extent possible. USDA is implementing                      (b) Minimum biobased content. The                     (a) Definition. Intermediates—Paint
                                                      an electronic information system for                    Federal preferred procurement product                  and Coating Components are ingredients
                                                      posting information voluntarily                         must have a minimum biobased content                   used to formulate finished waterborne
                                                      submitted by manufacturers or vendors                   of at least 22 percent, which shall be                 or solvent borne paint and coating
                                                      on the products they intend to offer for                based on the amount of qualifying                      products. Examples of Intermediates—
                                                      Federal preferred procurement under                     biobased carbon in the product as a                    Paint and Coating Components include
                                                      each designated product category. For                   percent of the weight (mass) of the total              binders, pigments thickeners, curing
                                                      information pertinent to E-Government                   organic carbon in the finished product.                agents, modifiers, alkyd latex resins,
                                                      Act compliance related to this rule,                       (c) Preference compliance date. No                  polyols, reactive oligomers, or reactive
                                                      please contact Marie Wheat at (202)                     later than [date one year after the date               diluents.
                                                                                                              of publication of the final rule],                        (b) Minimum biobased content. The
                                                      239–4502.
                                                                                                              procuring agencies, in accordance with                 Federal preferred procurement product
                                                      List of Subjects in 7 CFR Part 3201                     this part, will give a procurement                     must have a minimum biobased content
                                                        Biobased products, Procurement.                       preference for qualifying biobased                     of at least 22 percent, which shall be
                                                        For the reasons stated in the                         Intermediates—Plastic Resins. By that                  based on the amount of qualifying
                                                      preamble, the Department of Agriculture                 date, Federal agencies responsible for                 biobased carbon in the product as a
                                                      proposes to amend 7 CFR chapter XXXII                   drafting or reviewing specifications for               percent of the weight (mass) of the total
                                                      as follows:                                             products to be procured shall ensure                   organic carbon in the finished product.
                                                                                                              that the relevant specifications require                  (c) Preference compliance date. No
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                                                      CHAPTER XXXII—OFFICE OF                                                                                        later than [date one year after the date
                                                      PROCUREMENT AND PROPERTY                                the use of biobased Intermediates—
                                                                                                              Plastic Resins.                                        of publication of the final rule],
                                                      MANAGEMENT
                                                                                                                                                                     procuring agencies, in accordance with
                                                                                                              § 3201.109    Intermediates—Chemicals.                 this part, will give a procurement
                                                      PART 3201—GUIDELINES FOR
                                                      DESIGNATING BIOBASED PRODUCTS                             (a) Definition. Intermediates—                       preference for qualifying biobased
                                                      FOR FEDERAL PROCUREMENT                                 Chemicals are those used as reactants                  Intermediates—Paint and Coating
                                                                                                              for organic synthesis reactions rather                 Components. By that date, Federal
                                                      ■ 1. The authority citation for part 3201               than for their functional properties in a              agencies responsible for drafting or
                                                      continues to read as follows:                           chemical mixture; those used as                        reviewing specifications for products to


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                                                      4220                       Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules

                                                      be procured shall ensure that the                        such as carpet or fabrics, fabrics made                   (b) Minimum biobased content. The
                                                      relevant specifications require the use of               from natural fibers, fabrics made from                 Federal preferred procurement product
                                                      biobased Intermediates—Paint and                         synthetic fibers, or fabrics made from a               must have a minimum biobased content
                                                      Coating Components.                                      blend of the two. These materials are                  of at least 47 percent, which shall be
                                                                                                               used to manufacture finished products                  based on the amount of qualifying
                                                      § 3201.111 Intermediates—Textile                         such as clothing, upholstery, or drapes.               biobased carbon in the product as a
                                                      Processing Materials.
                                                                                                                  (b) Minimum biobased content. The                   percent of the weight (mass) of the total
                                                         (a) Definition. Intermediates—Textile                 Federal preferred procurement product                  organic carbon in the finished product.
                                                      Processing Materials are used to treat or                must have a minimum biobased content                      (c) Preference compliance date. No
                                                      finish textiles for the purposes of                      of at least 25 percent, which shall be                 later than [date one year after the date
                                                      altering textile characteristics such as                 based on the amount of qualifying                      of publication of the final rule],
                                                      color, fading, wrinkle resistance,                       biobased carbon in the product as a                    procuring agencies, in accordance with
                                                      texture, or moisture management.                         percent of the weight (mass) of the total              this part, will give a procurement
                                                         (b) Minimum biobased content. The                     organic carbon in the finished product.                preference for qualifying biobased
                                                      Federal preferred procurement product                       (c) Preference compliance date. No                  Intermediates—Binders. By that date,
                                                      must have a minimum biobased content                     later than [date one year after the date               Federal agencies responsible for drafting
                                                      of at least 22 percent, which shall be                   of publication of the final rule],                     or reviewing specifications for products
                                                      based on the amount of qualifying                        procuring agencies, in accordance with                 to be procured shall ensure that the
                                                      biobased carbon in the product as a                      this part, will give a procurement                     relevant specifications require the use of
                                                      percent of the weight (mass) of the total                preference for qualifying biobased                     biobased Intermediates—Binders.
                                                      organic carbon in the finished product.                  Intermediates—Fibers and Fabrics. By
                                                         (c) Preference compliance date. No                    that date, Federal agencies responsible                § 3201.116 Intermediates—Cleaner
                                                      later than [date one year after the date                 for drafting or reviewing specifications               Components.
                                                      of publication of the final rule],                       for products to be procured shall ensure                 (a) Definition. Intermediates—Cleaner
                                                      procuring agencies, in accordance with                   that the relevant specifications require               Components are intermediate
                                                      this part, will give a procurement                       the use of biobased Intermediates—                     ingredients used specifically for
                                                      preference for qualifying biobased                       Fibers and Fabrics.                                    formulating finished cleaning products.
                                                      Intermediates—Textile Processing                                                                                Examples of Intermediates—Cleaner
                                                      Materials. By that date, Federal agencies                § 3201.114 Intermediates—Lubricant
                                                                                                               Components.
                                                                                                                                                                      Components include chelating agents,
                                                      responsible for drafting or reviewing                                                                           surfactants, hydrotropes, fatty acids, or
                                                      specifications for products to be                           (a) Definition. Intermediates—                      solvents.
                                                      procured shall ensure that the relevant                  Lubricant Components are ingredients
                                                                                                               that used specifically to formulate                       (b) Minimum biobased content. The
                                                      specifications require the use of                                                                               Federal preferred procurement product
                                                      biobased Intermediates—Textile                           finished lubricant products. Examples
                                                                                                               of Intermediates—Lubricant                             must have a minimum biobased content
                                                      Processing Materials.                                                                                           of at least 55 percent, which shall be
                                                                                                               Components include base oils, base
                                                      § 3201.112       Intermediates—Foams.                    fluids, additives, or friction modifiers.              based on the amount of qualifying
                                                        (a) Definition. Intermediates—Foams                       (b) Minimum biobased content. The                   biobased carbon in the product as a
                                                      are dry polymer foams used for non-                      Federal preferred procurement product                  percent of the weight (mass) of the total
                                                      construction purposes, such as cushions                  must have a minimum biobased content                   organic carbon in the finished product.
                                                      for furniture.                                           of at least 44 percent, which shall be                    (c) Preference compliance date. No
                                                         (b) Minimum biobased content. The                     based on the amount of qualifying                      later than [date one year after the date
                                                      Federal preferred procurement product                    biobased carbon in the product as a                    of publication of the final rule],
                                                      must have a minimum biobased content                     percent of the weight (mass) of the total              procuring agencies, in accordance with
                                                      of at least 22 percent, which shall be                   organic carbon in the finished product.                this part, will give a procurement
                                                      based on the amount of qualifying                           (c) Preference compliance date. No                  preference for qualifying biobased
                                                      biobased carbon in the product as a                      later than [date one year after the date               Intermediates—Cleaner Components. By
                                                      percent of the weight (mass) of the total                of publication of the final rule],                     that date, Federal agencies responsible
                                                      organic carbon in the finished product.                  procuring agencies, in accordance with                 for drafting or reviewing specifications
                                                         (c) Preference compliance date. No                    this part, will give a procurement                     for products to be procured shall ensure
                                                      later than [date one year after the date                 preference for qualifying biobased                     that the relevant specifications require
                                                      of publication of the final rule],                       Intermediates—Lubricant Components.                    the use of biobased Intermediates—
                                                      procuring agencies, in accordance with                   By that date, Federal agencies                         Cleaner Components.
                                                      this part, will give a procurement                       responsible for drafting or reviewing                  § 3201.117 Intermediates—Personal Care
                                                      preference for qualifying biobased                       specifications for products to be                      Product Components.
                                                      Intermediates—Foams. By that date,                       procured shall ensure that the relevant
                                                      Federal agencies responsible for drafting                specifications require the use of                        (a) Definition. Intermediates—
                                                      or reviewing specifications for products                 biobased Intermediates—Lubricant                       Personal Care Product Components are
                                                      to be procured shall ensure that the                     Components.                                            ingredients used to formulate finished
                                                                                                                                                                      personal care products. Examples of
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                                                      relevant specifications require the use of
                                                      biobased Intermediates—Foams.                            § 3201.115    Intermediates—Binders.                   Intermediates—Personal Care Product
                                                                                                                  (a) Definition. Intermediates—Binders               Components include surfactants, oils,
                                                      § 3201.113       Intermediates—Fibers and                are materials used to provide                          humectants, emollients, or emulsifiers.
                                                      Fabrics.                                                 cohesiveness throughout an entire                        (b) Minimum biobased content. The
                                                        (a) Definition. Intermediates—Fibers                   finished product. The product category                 Federal preferred procurement product
                                                      and Fabrics encompasses plant and                        does not include adhesives and glues                   must have a minimum biobased content
                                                      animal fibers, fibers made from plant-                   that are finished products used to attach              of at least 62 percent, which shall be
                                                      derived polymers that are not yet                        the surfaces of two or more distinct and               based on the amount of qualifying
                                                      formed into more complex products                        separate components to one another.                    biobased carbon in the product as a


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                                                                                  Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Proposed Rules                                             4221

                                                      percent of the weight (mass) of the total                 Intermediates—Rubber Materials. By                     on line at http://www.faa.gov/air_
                                                      organic carbon in the finished product.                   that date, Federal agencies responsible                traffic/publications/. For further
                                                         (c) Preference compliance date. No                     for drafting or reviewing specifications               information, you can contact the
                                                      later than [date one year after the date                  for products to be procured shall ensure               Airspace Policy Group, Federal Aviation
                                                      of publication of the final rule],                        that the relevant specifications require               Administration, 800 Independence
                                                      procuring agencies, in accordance with                    the use of biobased Intermediates—                     Avenue SW., Washington, DC 20591;
                                                      this part, will give a procurement                        Rubber Materials.                                      telephone: 202–267–8783. The Order is
                                                      preference for qualifying biobased                          Dated: December 16, 2016.                            also available for inspection at the
                                                      Intermediates—Personal Care Product                       Gregory L. Parham,
                                                                                                                                                                       National Archives and Records
                                                      Components. By that date, Federal                                                                                Administration (NARA). For
                                                                                                                Assistant Secretary for Administration, U.S.
                                                      agencies responsible for drafting or                      Department of Agriculture.
                                                                                                                                                                       information on the availability of FAA
                                                      reviewing specifications for products to                                                                         Order 7400.11A at NARA, call 202–741–
                                                                                                                [FR Doc. 2016–31128 Filed 1–12–17; 8:45 am]
                                                      be procured shall ensure that the                                                                                6030, or go to http://www.archives.gov/
                                                                                                                BILLING CODE 3410–93–P
                                                      relevant specifications require the use of                                                                       federal_register/code_of_federal-
                                                      biobased Intermediates—Personal Care                                                                             regulations/ibr_locations.html.
                                                      Product Components.                                                                                                FAA Order 7400.11, Airspace
                                                                                                                DEPARTMENT OF TRANSPORTATION                           Designations and Reporting Points, is
                                                      § 3201.118       Intermediates—Oils, Fats, and
                                                                                                                                                                       published yearly and effective on
                                                      Waxes.                                                    Federal Aviation Administration
                                                                                                                                                                       September 15.
                                                        (a) Definition. Intermediates—Oils,
                                                                                                                14 CFR Part 71                                         FOR FURTHER INFORMATION CONTACT: John
                                                      Fats, and Waxes include raw or
                                                      modified fats and oils derived from                                                                              Fornito, Operations Support Group,
                                                                                                                [Docket No. FAA–2016–9443; Airspace                    Eastern Service Center, Federal Aviation
                                                      plants or animals.                                        Docket No. 16–ASO–17]
                                                         (b) Minimum biobased content. The                                                                             Administration, P.O. Box 20636,
                                                      Federal preferred procurement product                     Proposed Amendment of Class E                          Atlanta, Georgia 30320; telephone (404)
                                                      must have a minimum biobased content                      Airspace; Kyle-Oakley Field Airport,                   305–6364.
                                                      of at least 65 percent, which shall be                    Murray, KY                                             SUPPLEMENTARY INFORMATION:
                                                      based on the amount of qualifying                                                                                Authority for This Rulemaking
                                                      biobased carbon in the product as a                       AGENCY: Federal Aviation
                                                      percent of the weight (mass) of the total                 Administration (FAA), DOT.                               The FAA’s authority to issue rules
                                                      organic carbon in the finished product.                   ACTION: Notice of proposed rulemaking                  regarding aviation safety is found in
                                                         (c) Preference compliance date. No                     (NPRM).                                                Title 49 of the United States Code.
                                                      later than [date one year after the date                                                                         Subtitle I, Section 106 describes the
                                                                                                                SUMMARY:   This action proposes to                     authority of the FAA Administrator.
                                                      of publication of the final rule],                        amend Class E airspace at Murray, KY,
                                                      procuring agencies, in accordance with                                                                           Subtitle VII, Aviation Programs,
                                                                                                                as the Calloway Non-Directional Beacon                 describes in more detail the scope of the
                                                      this part, will give a procurement                        (NDB) has been decommissioned,
                                                      preference for qualifying biobased                                                                               agency’s authority. This proposed
                                                                                                                requiring airspace reconfiguration at                  rulemaking is promulgated under the
                                                      Intermediates—Oils, Fats, and Waxes.                      Kyle-Oakley Field Airport. Controlled
                                                      By that date, Federal agencies                                                                                   authority described in Subtitle VII, Part
                                                                                                                airspace is necessary for the safety and               A, Subpart I, Section 40103. Under that
                                                      responsible for drafting or reviewing                     management of instrument flight rules
                                                      specifications for products to be                                                                                section, the FAA is charged with
                                                                                                                (IFR) operations at the airport. This                  prescribing regulations to assign the use
                                                      procured shall ensure that the relevant                   action also would update the geographic
                                                      specifications require the use of                                                                                of airspace necessary to ensure the
                                                                                                                coordinates of the airport, and update                 safety of aircraft and the efficient use of
                                                      biobased Intermediates—Oils, Fats, and                    the designation header.
                                                      Waxes.                                                                                                           airspace. This regulation is within the
                                                                                                                DATES: Comments must be received on                    scope of that authority as it would
                                                      § 3201.119       Intermediates—Rubber                     or before February 27, 2017.                           amend Class E airspace at Kyle-Oakley
                                                      Materials.                                                ADDRESSES: Send comments on this                       Field Airport, Murray, KY.
                                                        (a) Definition. Intermediates—Rubber                    proposal to: U.S. Department of
                                                                                                                                                                       Comments Invited
                                                      Materials are used in finished products                   Transportation, Docket Operations, 1200
                                                      such as rubber gloves, vehicle tires,                     New Jersey Avenue SE., West Bldg.                         Interested persons are invited to
                                                      footwear, sports apparel and equipment,                   Ground Floor Rm. W12–140,                              comment on this rule by submitting
                                                      bedding and pillow foams, tubing,                         Washington, DC 20590; Telephone: 1–                    such written data, views, or arguments,
                                                      catheters, gasketing, or cosmetic                         800–647–5527, or 202–366–9826. You                     as they may desire. Comments that
                                                      adhesives and bases.                                      must identify the Docket No. FAA–                      provide the factual basis supporting the
                                                         (b) Minimum biobased content. The                      2016–9443; Airspace Docket No. 16–                     views and suggestions presented are
                                                      Federal preferred procurement product                     ASO–17, at the beginning of your                       particularly helpful in developing
                                                      must have a minimum biobased content                      comments. You may also submit and                      reasoned regulatory decisions on the
                                                      of at least 96 percent, which shall be                    review received comments through the                   proposal. Comments are specifically
                                                      based on the amount of qualifying                         Internet at http://www.regulations.gov.                invited on the overall regulatory,
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      biobased carbon in the product as a                       You may review the public docket                       aeronautical, economic, environmental,
                                                      percent of the weight (mass) of the total                 containing the proposal, any comments                  and energy-related aspects of the
                                                      organic carbon in the finished product.                   received, and any final disposition in                 proposal.
                                                         (c) Preference compliance date. No                     person in the Dockets Office between                      Communications should identify both
                                                      later than [date one year after the date                  9:00 a.m. and 5:00 p.m., Monday                        docket numbers and be submitted in
                                                      of publication of the final rule],                        through Friday, except Federal holidays.               triplicate to the address listed above.
                                                      procuring agencies, in accordance with                       FAA Order 7400.11A, Airspace                        You may also submit comments through
                                                      this part, will give a procurement                        Designations and Reporting Points, and                 the Internet at http://
                                                      preference for qualifying biobased                        subsequent amendments can be viewed                    www.regulations.gov.


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Document Created: 2017-01-13 02:44:49
Document Modified: 2017-01-13 02:44:49
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesUSDA will accept public comments on this proposed rule until March 14, 2017.
ContactMarie Wheat, USDA, Office of Procurement and Property Management, Room 361, Reporters Building, 300 7th St. SW., Washington, DC 20024; email: [email protected]; phone (202) 239-4502. Information regarding the Federal preferred procurement program (one initiative of the BioPreferred Program) is available on the Internet at http:// www.biopreferred.gov.
FR Citation82 FR 4206 
RIN Number0599-AA24
CFR AssociatedBiobased Products and Procurement

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