Solid Waste: Federal Program to Buy Products With Recovered Materials Proceeds Slowly

On October 20, 1993, Executive Order 12873 was signed which required EPA to propose, within 180 days, a Comprehensive Procurement Guideline (CPG) and draft a Recovered Materials Advisory Notice (RMAN). The order further requires EPA to annually update the CPG to include additional items and to periodically update the RMANs to reflect changed market conditions. EPA worked closely with White House staff when the Executive Order was drafted, and the strategy of issuing CPGs and RMANs as described in the order serves as EPA's strategy for developing measurable goals, milestones, and a systematic approach as GAO recommended.

Executive Order 12873 sets forth a streamlined process to issue annual Comprehensive Procurement Guidelines (CPGs). EPA has no plans to issue any further strategy beyond the Executive Order. However it does believe that the streamlining process has reduced the issuance time on procurement guidance issued recently.

EPA included a representative from the Department of Commerce's National Institute of Standards and Technology on its workgroup to develop the April 20, 1994, CPG, and it intends to continue to have a Commerce representative on the workgroup for future CPG annual updates.

EPA's workgroup to develop and select guidelines includes 30 members that represent 12 major federal agencies including the General Services Administration, OMB's Office of Federal Procurement Policy, and OMB's Office of Information and Regulatory Analyis. In forming the workgroup, EPA contacted the former Federal Recycling Coordinator and Chair of the former Council on Recycling and Procurement Policy to obtain recommendations for participants on the workgroup.

In developing its April 20, 1994, CPG, EPA contacted several states and consulted the National Association of State Purchasing Officials' Database of Recycled Commodities for information on state purchases of recycled products. EPA intends to continue this practice when annually updating the CPG.

EPA will work with the members of the CPG workgroup, who represent 12 major federal agencies as well as the Federal Environmental Executive, to ensure agency input into the guideline development process.

Executive Order 12873 sets forth an annual schedule to update CPGs. EPA will provide information on its guideline activities to Congress and all other interested parties.

Executive Order 12873, in which EPA participated in the development, addresses experimental or developmental products. Section 507 of the order requires the Department of Commerce's National Institute for Standards and Technology to establish a program for testing the performance of recycled products. Such a program could test experimental or developmental products. EPA could then use test results in future CPG updates. EPA does not believe that designating experimental or developmental products as a CPG is an efficient use of resources because agencies need not procure them if they are unable to secure a satisfactory level of competition or if products are not reasonably available.

In February 1994, Commerce approved a Deputy Assistant Secretary position for Environmental Technologies Experts within the International Trade Administration whose duties will include, among other things, helping industries develop domestic environmental technical expertise to improve international competitiveness. Although Commerce's International Trade Administration planned to establish a recovered materials program by 1995, no funds were budgeted. These two actions resulted in Commerce closing out this recommendation during the second quarter of 1994.

OMB has completed action on part of this recommendation and intends no action on the remaining portion. In October 1994, OFPP helped to revise OMB Circular A-102, requiring that state and local governments that use appropriated funds comply with section 6002 of RCRA. This section requires that procurement programs give preferences to products containing recovered materials. OMB believes that the additional recommendation that a reporting mechanism be established to allow the federal government to assess state and local implementation of RCRA requirements is unduly burdensome on the already limited resources of local, state, and federal governments and is consistent with the principles of federalism.

OMB has completed action on this recommendation. OFPP has worked with the White House Office on Environmental Policy in developing Executive Order 12873 on Federal Acquisition, Recycling, and Waste Prevention, which was signed in October 1993 and amended in March 1996. The order directs agencies to track and report purchases of items that are made with recovered materials listed in the EPA procurement guide. To accomplish this, agencies have designated Agency Environmental Executives that are responsible for implementing agency Affirmative Procurement Programs. Agencies are required to establish goals for solid waste prevention and recycling, and for increasing the procurement of products containing recovered materials and other environmentally preferable products, and to incorporate these goals into the agencies' Affirmative Procurement Programs.

OMB has taken action on this recommendation. An interim rule amending the Federal Acquisition Regulation to incorporate policies for the acquisition of environmentally preferable and energy-efficient products and services was published in the Federal Register on May 31, 1995. OMB reviewed numerous comments on the proposed rule. As of late August 1996, the final rule was under review and publication of the final rule is expected shortly.