GREEN PROCUREMENT GUIDANCE DOCUMENT
Last saved 10/2/201412:23 PMDEPARTMENT OF GENERAL SERVICESBUREAU OF PROCUREMENTGREEN PROCUREMENT GUIDANCE DOCUMENTI. Purpose: This guidance document is designed to provide Commodity Specialistsand Purchasing Agents with background information on the Commonwealth ofPennsylvania’s Green Procurement Program. It includes reference materials and stepby step instructions on how to complete the Environmentally Preferable Products (EPP)Analysis Form for inclusion in every Commodity Plan.II. An Introduction to Green ProcurementA.B.What is Green Procurement?1.Green procurement is referred to by many names: responsiblepurchasing, eco-procurement, green purchasing, and sustainablepurchasing, just to name a few. It’s a way of adding environmentalconsiderations to the price and performance criteria used by publicand private sector procurement officers to make purchasingdecisions. Most importantly, green procurement attempts toidentify and reduce the environmental impact of an organization’sactivities and maximize resource efficiency.2.The US Environmental Protection Agency (EPA) defines GreenProcurement as the following: “Green or EnvironmentallyPreferable Procurement (EPP) is the selection of products andservices that have a lesser or reduced effect on human health andthe environment when compared with competing products orservices that serve the same purpose.”3.The acronym EPP is used interchangeably to refer toEnvironmentally Preferable Purchasing and/or EnvironmentallyPreferable products. For purposes of this guide, EPP will stand forenvironmentally preferable products.When is a Material or Service considered to be Green?1.Consumes less natural resources.2.Uses more sustainably, as with sustainable forestry.3.Involves less energy in their manufacture.4.Consumes less energy when being used.5.Contains fewer hazardous or toxic materials.1
Last saved 10/2/2014C.12:23 PM6.Designed with the intention of reducing the amount of wastecreated.7.Reduces the amount of waste create.8.Contains recycled material.9.Uses less packaging.What are the desirable ree4.Chlorofluorocarbon (CFC) free5.Compostable6.Durable7.Energy efficiency8.Lead-free9.Less hazardous10.Locally manufactured11.Low volatile organic compound (VOC) content12.Low-toxicity13.mercury-free14.Persistent bioaccumulative toxin (PBT)-free15.(Rapidly) renewable materials16.Recyclable17.Recycled content18.Reduced greenhouse gas emissions2
Last saved 10/2/2014D.12:23 PM19.Reduced packaging20.Refurbished21.Resource efficiency22.Upgradeable23.Water efficiencyWhat are some key priority areas?1.Biobased products2.Building renovation and new construction3.Cleaning products and services4.Energy efficiency products5.Furniture6.Hybrid electric or alternative fuel vehicles7.Landscaping products and services8.Office products9.paint10.Paper11.pest management products and services12.Products that do not contain persistent bioaccumulative toxins13.Products that do not contain wood from endangered forests14.Recycled content products15.Renewable electricity16.Vehicle maintenance products and services3
Last saved 10/2/2014E.F.12:23 PMWhy is it important to Buy Green?1.Environmental Benefits – Purchasing decisions affect localenvironment and the health of our citizens and workers as well asthe global community.2.Impact on Human Health – Green Procurement encourages themanufacturing of products using fewer toxic ingredients. Theimpact to human health and the environment is minimized.Greenhouse gases are minimized as well as changing the impactfrom those products during the manufacturing process (e.g.water/air pollution) as well as reducing the damage caused throughaccidental spills and improper disposal. We also reduce the risk toworkers handling the products and the risks posed to buildingoccupants when the product is in use.3.Energy Efficiency – Energy efficient, we help to limit energyconsumption, which in turn lowers our emissions of sulfur dioxide(which causes acid rain) and carbon dioxide (a primary greenhousegas).4.Extract Less Raw Materials – made with a percentage of postconsumer and overall recycled content instead of pure virginproducts, we reduce the need to extract raw materials, such aspetroleum, trees or metals and in general, use less energy andwater and minimize waste.5.Reduce Water Consumption – Designed to reuse and/or reduce theamount of water needed to perform certain tasks, we actively worktoward conserving this very valuable resource. Such products andtechnologies involved plumbing devices, cooling systems,appliances, water treatment technologies and more.6.Decrease Dependency on Foreign Oil – Utilizing renewable energyand clean technologies works toward reducing our dependency onforeign petroleum, stimulating economic development for innovativetechnologies and meeting our goals for clean energy production.What is the role of the Commonwealth?1.Impact – Influence to Move Marketsa.By leveraging the purchasing power of the Commonwealthwe have the ability to push industry manufacturers toward4
Last saved 10/2/201412:23 PMmaking more responsible products that are reasonablypriced and do less harm to the environment and the publichealth. As we use this purchasing power to push oursuppliers in a more proactive, planet-conscious direction, weare also enabling them to achieve an enhanced marketposition. Many forward thinking businesses have alreadyadopted environmental purchasing policies for traditionalreasons such as:G.i).Recognizing market preferences and stepping up toserve customers asking for EPPs.ii).Understanding that it can distinguish a business and itsproducts from competitors.iii).Recognizing the opportunity to increase operatingefficiency.iv).Joining an industry or international market trend tocapture market share.v).Improving compliance with environmental regulations.Are there ever cost benefits to Buying Green?1.Reduced Total Costs – While green purchasing can help an agencyeconomically as well as lighten its environmental impacts, it canalso help departments to improve their efficiency, reduce liabilitiesand gain competitive advantage when applying for grant and otherfunding opportunities. The fact is that a green purchasing programis an excellent way of f9inging products with a high priceperformance ratio and with improved use rates.2.Cost Savings Opportunities – Evaluating a potential purchase byinitial (purchase-po9int) cost alone can actually incur greater totalcosts for a department. A department’s green purchasing programcan help identify and reduce hidden costs and develop costreduction strategies for the entire organization. Some examples ofcost savings opportunities include:a.Reduce Hazardous Material Management Costs (from usingless toxic products).b.Reduced operational costs (energy savings from efficientequipment).5
Last saved 10/2/2014H.12:23 PMc.Reduced disposal costs (hazardous and solid waste) bygenerating less waste and using longer lasting products.d.Reduced repair and replacement costs when using moredurable and reparable equipment.e.Reduced employee safety and health costs at the facilitywith reduced potential liability by improving the workenvironment and minimizing risks to workers.f.Reduced material and energy consumption.3.Actual Cost Savings – Many EPPs available in the market todayare less expensive than their conventional counterparts that servethe same purpose. For example, remanufactured toner cartridgescost on average 30-60% less than those produced by originalequipment manufacturers, retread tires can save as much as 50%off the cost of a new tire, and remanufactured office panels canreportedly save anywhere from 10-30%.4.Same Cost But Better For Environment – A wide range of otherEPPs are equal or comparable in cost (e.g. Carpet, cleaningproducts, janitorial paper products, remanufactured antifreeze andtraffic cones, energy efficient lighting, equipment and appliances.While not costing any more, these products offer the added value ofreduced toxic use and waste reduction through the use of recycledmaterials.5.Save Money Over Time – A third segment of EPPs may cost moreat the time of purchase, but often have a short “payback period”after which time they represent a significant ongoing cost savings inthe maintenance, operation and/or disposal of the product. (E.g.compact fluorescent light bulbs, plastic lumber, integrated pestmanagement).6.Life Cycle Analysis/Assessment (LCA) – LCA evaluates all stagesof a product’s life from the perspective that they are interdependent.LCA enables the estimation of the cumulative environmentalimpacts resulting from all stages in the product life cycle; oftenincluding impacts not considered in more traditional analyses (e.g.raw material extraction, material transportation, ultimate productdisposal, etc.)What Are The Challenges?1.All Commonwealth agencies and departments are different andthere is no one path towards sustainability; while one organization6
Last saved 10/2/201412:23 PMmay choose to focus on energy management, another may see anopportunity in setting up an effective recycling program.Regardless of the environmental initiatives they choose to pursue,most organizations face very similar issues:a.Additional work needed to research products, plan andcoordinate green purchasing programs and implementsustainability efforts.b.Lack of commitment or interest from upper management toprovide the directives necessary for a more efficientimplementation.c.Possible resistance from co-workers due to the unavailabilityor lack of staff education and training.d.Lack of expertise in environmental issues and newtechnologies, particularly those involving technical datareporting and analysis.e.Conflicting or confusing information that may createmisconceptions about the quality and performance ofenvironmentally preferable products and services, coupledwith a shortage of available time to perform necessaryresearch and investigation.f.Effort required to change the “business as usual” norm andwork with existing suppliers (or to find new suppliers) inorder to procure environmentally preferable products andservices; there may also be existing relationships betweenpurchasers and suppliers that make it difficult to switch toalternative products.g.Difficulty in determining the life-cycle cost of products thatconsiders the manufacturing impacts, potential cost savingsopportunities in the operational and maintenance life of theproduct as well as the expense and process necessary todispose or recycle the product.III. Green Procurement Policy in the Commonwealth of PennsylvaniaA.Policy as of March 30, 2009Part I Chapter 22"Green" ProcurementsA)"Buy Green" Policy.7
Last saved 10/2/201412:23 PM1.The procurement and use of products and services canhave a profound impact on the environment.As a nsylvania recognizes the positive impact that it canmake on the environment and human health through theprocurement decisions that purchasing agencies make. It isthe intent of the Department of General Services tointegrate environmental considerations into every aspect ofprocurement. Although the environment may not be the coreof our professional mission, the integration of thesefactors will result in economic, health and environmentalgains that will further our goals.2.Commonwealth agencies are expected to use their buyingpower to procure environmentally-preferable products andservices in order to:a.Advance the protection of the environment andsupport sustainabilityb.Minimize the potential environmental and healthimpacts on workers and the public,c.Encourage the production and sale of affordable,environmentally friendly and human health consciousproducts3)This "Buy Green" policy is consistent with the goal to“incorporate environmentally sustainable practices into unctions and to strive for continuous improvement inenvironmental performance with the goal of zero emissions”(ExecutiveOrder1998-1,Governor’s Green GovernmentCouncil).B) Definitions1.“Environmentally preferable” - products or servicesthat have a lesser or reduced effect on human health andthe environment when compared with competing products orservices that serve the same purpose. The product orservice comparison may consider raw materials acquisition,production, manufacturing, packaging, distribution, reuse,operation, maintenance or disposal. Such products orservices may include, but are not limited to products entb.Minimize wastec.Conserve energy or waterd.Reduce the amount of toxics disposed or consumede.Are Reusable or Recyclablef.Minimize Greenhouse Gases2.“Comparable”availability-essentially equalandinquality andprice.8
Last saved 10/2/201412:23 PM3.“Energy Star compliant” - meeting the requirements ofthe US Department of Energy and US Environmental nic Product Environmental Assessment nic Product Environmental Assessment Tool �Post-consumer material” - any product generated by abusiness or consumer that has served its intended end use,and that has been separated or diverted from solid wastefor the purposes of collection, recycling and disposition.The term includes industrial by-products that wouldotherwise go to disposal or processing facilities.Theterm does not include internally generated scrap that iscommonly returned to industrial or manufacturing processes.6.“Post-consumer paper” - any paper, paperboard andfibrous wastes from retail stores, office buildings, homesand so forth, after they have been passed through theirend-usage as a consumer item including: used corrugatedboxes, old newspapers, old magazines, mixed waste paper,tabulating cards and used cordage, as well as all paper,paperboard and fibrous wastes that enter and are collectedfrom municipal solid waste.7.“Recycled content” - the portion of goods, supplies,equipment, materials or printing containing astematerialandbyproducts which have been recovered or diverted from solidwaste, but such term does not include those materials andbyproducts generated from, and commonly reused within, anoriginal manufacturing process.C) ecycled1.Mandatory Requirement.Solicitations and contractsfor the procurement of supplies, services and constructionmust contain requirements for the procurement of productscontaining post-consumer recycled content.a.Procurement of Supplies. For those supplies forwhich the Environmental Protection Agency (EPA) hasadopted procurement guidelines under the ResourceConservation and Recovery Act of 1976 (Public Law 94580, 42 U.S. C. Section 6901 et seq.), as amended, theprocurement documents shall require that the itemsmeet the minimum percentage levels for total recycledcontent and post consumer recycle content or aret9
Last saved 10/2/201412:23 PMotherwise environmentally preferable as certifiedunder a third party independently verified life cycleanalysis conforming to the ISO 14040 series ofstandards or as specified in the guidelines or in theDGS specifications, whichever reflects the higherlevel of post-consumer recycled content. DGS may alsoidentify other supplies for which the procurementdocuments shall require that the items meet theminimum percentage levels for total recycled contentas set forth in DGS sforservices shall include the requirement that anysupplies, which are provided to the Commonwealth as apart of the performance of the contract and for whicheither the EPA has adopted procurement guidelinesunder the Resource Conservation and Recovery Act of1976 (Public Law 94-580, 42 U. S. C. Section 6901 etseq.),asamended,orsuppliesthatDGShasidentified, must meet the minimum percentage levelsfor total recycled content and post-consumer recycledcontent or are otherwise environmentally preferable ascertified under a third party independently verifiedlife cycle analysis conforming to the ISO 14040 seriesof standards or as specified in the guidelines or inDGS specifications, whichever reflects the higherlevel of post-consumer recycled content.c.Construction Contracts. All public work tionsshall include the requirement that any supplies thatare provided to the Commonwealth as a part of theperformance of the contract and for which either theEPA has adopted procurement guidelines under theResource Conservation Recovery Act of 1976 (Public Law94-580, 42 U. S. C. Section 6901 et seq.), as amended,or supplies that DGS has identified, must meet theminimum percentage levels for total recycled contentand post-consumer recycle content or are otherwiseenvironmentally preferable as certified under a thirdparty independently verified life cycle analysisconforming to the ISO 14040 series of standards or asspecified in the guidelines or in DGS specifications,whichever reflects the higher level of post-consumerrecycled content.d.List of Supplies. DGS has prepared a list of thesupplies for which either the EPA has adoptedprocurement guidelines under the Resource Conservationand Recovery Act of 1976 or DGS has identified as anitem which should be procured as a supply containingpost-consumer recycled content.The list and therequired contract clauses can be found on the DGSwebsite.10
Last saved 10/2/201412:23 PM2.Bidding Preference for Recycled Content (Procurementof Supplies Only).All invitations for bids using thecompetitive sealed bidding method of procurement, for thepurchase of supplies must set forth minimum percentage ofpost-consumer recycled content for the supplies that mustbe certified by the bidder in order to qualify for abidding preference of five percent. For those supplies forwhich the EPA has adopted procurement guidelines under theResource Conservation and Recovery Act of 1976, the minimumpercentage of post-consumer recycled content cannot be lessthan what is specified in those guidelines. DGS may waivethis requirement for those supplies which cannot beprocured with recycled content.D) Other Environmentally Preferable Procurements1.Before any solicitation for the procurement hasing agency shall perform an analysis to determineand document the availability and competitiveness ofenvironmentally preferable products and/or services.Whenenvironmentally preferable products and/or services areavailable that are comparable to competing products, thepurchasing agency shall restrict the statement of work orspecifications to only the environmentally preferableproducts or services.2.Purchasing agencies shall, when practicable, includeconsideration of environmental and actual costs through outthe entire life cycle of the product (Executive Order 19803, Life Cycle Costing), to include environmental impacts,social impacts replacement costs and disposal costs.3.Purchasing Agents are encouraged to maximize theprocurement of environmentally preferable items purchased,asapercentageoftotalpurchases.4.Each purchasing agency shall prepare an annual ableproducts and services that details the type, volume anddollar amounts of environmentally preferable productspurchased by the agency and include an analysis of theenvironmental impact of these purchases in comparison withequivalent non-environmentally preferable purchases.5.Each contract issued with “environmentally preferable”items required or available should encourage the supplierto provide an annual statement that details the type,volume and dollar amounts of environmentally preferableproducts purchased by the Commonwealth and include ananalysis o
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