COUNTY EXECUTIVE OFFICE POLICIES AND PROCEDURES PURCHASING DIVISION: NUMBER: BOARD ACTION DATE: POLICY EFFECTIVE DATE: CATEGORY: SUB-CATEGORY: TITLE: ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) POLICY REVISION: PURCHASING AGENT SIGNATURE: I. SCOPE Leaders in government organizations at all levels--local, state, and federal--understand that improving procurement decisions is an important area of environmental stewardship and a key strategy in pollution prevention. The County of Orange recognizes it is a large consumer of goods and services and the purchasing decisions of our employees and contractors have an environmental impact resulting from the combined impact of a product’s manufacture, use, and disposition. The goal of this policy is to reduce the adverse environmental impact of our purchasing decisions by buying goods and services from manufacturers and vendors who share our commitment to the environment. By including environmental considerations in our purchasing decisions, along with our traditional concerns with price, performance, and availability, we will remain fiscally responsible while showing the County of Orange commitment to leading by example to protect public health and the environment and strengthening businesses who are leading the transition to an environmentally sustainable economy. Greening the government's supply chain is proving to be a powerful strategy in making real and lasting environmental improvements II. PURPOSE/RECITALS The below Reference statutes, regulations, executive orders, and guidelines are now directing the State of California to practice and promote EPP statewide through the adoption of an Environmentally Preferable Purchasing Program. As such, the County desires to encourage the use of environmentally preferable purchasing practices through the development of this policy and an environmentally preferable purchasing best practices manual inclusive, but not limited to the below referenced statutes, regulations, executive orders, and guidelines. Page 1 III. DEFINITIONS The Reference (A) California Statute says: “Environmentally Preferable Purchasing means the procurement or acquisition of goods and services that have a lesser or reduced effect on human health and the environment when compared with competing goods or services that serve the same purpose. This comparison shall take into consideration, to the extent feasible, raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, disposal, energy efficiency, product performance, durability, safety, the needs of the purchaser, and cost”. This definition is similar to what is used by the federal government and other states and local governments in part of a growing EPP movement. California statute also provides clarity on potential concerns about EPP. It states explicitly that EPP cannot supersede recycled-content laws, require purchase of poorly performing goods, exclude adequate competition, or require unreasonable prices or lead times. In practice, this means seeking products that have reduced environmental impact because of the way they are made, used, transported, stored, packaged, and disposed of. It means looking for products that do not harm human health, are less polluting, and that minimize waste, maximize use of biobased or recycled materials, conserve energy and water, and reduce the consumption or disposal of hazardous materials. When determining whether a product is environmentally preferable, the following environmental attributes should be considered: Biobased Biodegradable Carcinogen free Chlorofluorocarbon (CFC) free Compostable Durable Energy Efficient Heavy Metal free (no lead, mercury, cadmium) Less Hazardous Locally Manufactured Low Volatile Organic Compound (VOC) content Low - toxicity Made from rapidly renewable material Persistent, bioaccumulative toxic (PBT) free Recyclable Recycled Content Reduced greenhouse gas emissions Reduced packaging Refurbished Resource efficiency Reusable Upgradable Water efficient IV. POLICY A. Establishing an Environmental Purchasing Task Force The County of Orange has assembled an environmental purchasing task force known as OCGreen Task Force with members from across the County appointed by each Page 2 Department Head. The first task force meeting was held on 27 August 2008 and the task force shall meet at least six times each year. The Task Force shall be responsible for: 1. Development of an environmentally preferable purchasing manual to include purchasing recommendations and practices to clarify people’s responsibilities under this environmental purchasing policy. 2. Providing assistance to the head of the purchasing department in developing language to be included in all specifications to ensure they include environmental considerations. 3. Prioritizing a list of environmentally preferable purchasing opportunities. 4. Preparing education and outreach materials to promote the understanding of the County’s environmentally preferable purchasing policies, manual and principles. 5. Training the purchasing and contracting staff and other interested parties to familiarize them with their responsibilities under this environmental purchasing policy and manual. 6. Developing metrics for measuring progress in implanting the goals of this policy. 7. Establishing recognition programs to recognize the efforts of individuals and departments that are the most successful at implanting the goals of this policy. 8. Developing an implementation plan for the implementation of developed environmental policies and principles. B. Establishing Initial Priorities Within one year of the date this policy is enacted, the environmental purchasing task force shall complete an examination of The County’s purchases of the following commodities and, based on anticipated purchasing needs and volumes and prioritize its efforts to integrate environmental considerations into their purchase: 1. The more then 50 recycled content products designated by the US Environmental protection agency 2. The more then 35 energy-efficient products listed by the State Energy Star program 3. The biobased products designated by the US Department of Agriculture 4. Building renovation and new construction requirements as directed in California's Green Building Executive Order 5. Cleaning products and services as directed in the LEED certification requirements 6. Furniture 7. Hybrid electric or alternative fuel vehicles 8. Landscaping products and services 9. Paint and painting services 10. Paper (beyond the initial recycled content requirements) 11. Pest management products and services 12. Renewable electricity 13. Vehicle maintenance products and services Page 3 C. Within one year from the date of this policy is enacted, the County Purchasing Agent shall ensure procedures are in place to review every upcoming procurement so that wherever possible specifications, solicitation language, and purchasing regulations are amended to expand the use of more environmentally preferable products. The County Purchasing Agent will ensure that when comparing cost, the purchasing organizations will not focus exclusively on the initial price. Instead, we will calculate and compare total costs over the life of the item, which includes the initial cost along with maintenance, operating, insurance, disposal, replacement, and potential liability costs. Examining life cycle costs will save money by ensuring we are quantifying the total cost of ownership before making purchasing decisions. D. Promoting Environmental Purchasing Every County department is responsible for ensuring its employees, credit card holders, contractors, and vendors are fully aware of the County’s desire to purchase more environmentally preferable goods and services through communication, training and outreach. E. Balancing Environmental Considerations with Performance, Availability, and Financial Cost The County of Orange is committed to buying more environmentally preferable goods and services as long as they meet our performance needs and they are available within a reasonable period of time at a reasonable cost. Nothing in this policy shall be construed as requiring a purchaser or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, or are not available at a reasonable price or in a reasonable period of time. V. REFERENCE A. Public Contract Code Section 12400—Environmentally Preferable Purchasing This law, formerly known as AB 498 (Chan, Chapter 575, Statutes of 2002), addresses environmentally preferable purchasing and became California law in September 2002. It directs the Department of General Services, in consultation with the California Environmental Protection Agency, members of the public, industry, and public health and environmental organizations, to provide state agencies with information and assistance regarding environmentally preferable purchasing. The Secretary of the State and Consumer Services Agency, in consultation with the Cal/EPA, established the Environmentally Preferable Purchasing Task Force to develop a strategy to achieve the goals set forth in AB 498. The task force comprises representatives from various State agencies with specific fiscal, procurement, and environmental policy expertise. Page 4 B. C. Electronic Waste Recovery and Recycling Regulations (California Code of Regulations Title 14, Division 7, Chapter 8.2) – Provides for the implementation of the California Electronic Waste Recycling Act of 2003 that reduces hazardous substances used in the manufacturing of electronic products, and establishes a funding and reimbursement system for businesses, consumers and the public to collect and recycle certain electronic wastes. 01-22 Re-Refined Oil - Announces the availability of re-refined oil for State vehicles during required oil change services. Strongly encourages State and local government drivers to utilize authorized vendors offering re-refined oil for oil change services. D. 06-08 California Gold Sustainable Carpet Standard - Establishes minimum requirements for material emissions, postconsumer recycled-content and end of life management for all carpets purchased by the State of California. E. Public Contract Code (PCC) 12153-12156 and 12320 State Agency Buy Recycled Campaign (SABRC) mandates for both State agencies and the Legislature. F. Public Contract Code (PCC) 12164.5-121671.1 and 12300-12306 Project Recycle for State agencies and the Legislature - requires State agencies and the Legislature to purchase products with recycled content. The legislation is implemented jointly by the Department of General Services (DGS) and the California Integrated Waste Management Board (CIWMB). It complements the efforts of the Integrated Waste Management Act [AB 939 (Sher), Statutes of 1989, Chapter 1095], and the statute regarding State agency waste diversion [AB 75 (Strom-Martin), Statutes of 1999, Chapter 764] which were enacted to reduce the amount of waste going to California's landfills. G. Public Contract Code (PCC) section 12203 requires State agencies (including California State Universities) to ensure that at least 50 percent of the dollars spent on products within 11 product categories be spent on recycled-content products (RCP). In addition, PCC section 12211 requires RCP and non-RCP purchases to be reported in each agency's annual SABRC Procurement Report. Reused products are considered to be RCPs (see PCC section 12200); therefore, items purchased through the Surplus Property Reuse Program can be counted as RCPs under the SABRC. [1] H. Federal Executive Order 13101 strengthens and expands the Federal government's commitment to recycling and buying recycled-content and environmentally preferable products. Among other things, it: I. Public Resources Code sections 42920 et seq. and California law [Chapter 764, Statutes of 1999 (Strom-Martin, AB 75)] require each State agency and large State facility to divert 50 percent of its solid waste from landfills or transformation facilities by January 1, 2004 through source reduction, recycling, and composting activities. State agencies can obtain source reduction credit for donating items through the Surplus Property Reuse Program. State agencies implement a wide Page 5 variety of programs to meet the diversion mandates. Reported programs range from source reduction to full recycling programs which request, and in some cases require, employees, contractors, and visitors to recycle. J. Executive Order S-06-06 – Establishes targets to increase in-state production and use of bioenergy, including ethanol and bio-diesel fuels made from renewable resources. For biofuels, the state shall produce a minimum of 20 percent of its biofuels within California by 2010, 40 percent by 2020, and 75 percent by 2050. For biomass for electricity, the state must meet a 20 percent target within the established state goals for renewable generation for 2010 and 2020. K. Executive Order S-20-04 - California's Green Building Executive Order directs the State to commit to aggressive action to reduce State building electricity usage and promote water conservation by retrofitting, building, and operating the most energy and resource efficient buildings by taking all cost-effective measures described in the Green Building Action Plan for facilities owned, funded or leased by the State. The Green Action Team was established to oversee and direct progress toward the goals of S-20-04. This plan also allows for the actions that support the Executive Order including recommendations for any additional actions, mandates or legislation that may be warranted to reduce grid-based energy purchases. Cities, counties, schools, and commercial building owners and operators are encouraged to do the same. L. Building Maintenance / Cleaning Products - Executive Order S-20-04 includes a provision that State agencies, departments, and other entities under the direct executive authority of the governor, design, construct and operate state-owned facilities paid for with state funds as Leadership in Energy and Environmental Design (LEED) Silver or higher certified buildings.LEED for Existing Buildings awards points for using cleaning products that are Green Seal 37 Certified, or if Green Seal 37 is not applicable (e.g., carpet cleaners, floor finishes or strippers), LEED-EB says to use products that comply with the California Code of Regulations maximum allowable VOC levels. M. Executive Order S-7-04 - sets forth a blueprint for government and private agencies to work together in planning and building a hydrogen infrastructure. N. Executive Order S-3-05 - established the following greenhouse gas (GHG) emission reduction targets for California: by 2010, reduce GHG emissions to 2000 levels; by 2020, reduce GHG emissions to 1990 levels; by 2050, reduce GHG emissions to 80 percent below 1990 levels. The Secretary of the California Environmental Protection Agency is charged with the coordination of the oversight of efforts to achieve these targets. O. AB 2160 - Requires the California Energy Commission to report to the Green Action Team on ways to facilitate state building energy efficiency and resource efficient projects, including a life cycle cost analysis model. Additionally, the Energy Commission will identify obstacles to private sector commercial building Page 6 energy efficiency, and will identify financial or other forms of incentives to facilitate the latter. CONTACTS: COUNTY PROCUREMENT OFFICE ATTACHMENTS: Page 7