USDA BioPreferred Program 2014 Farm Bill Listening Session

March 14, 2014

Ron Buckhalt, Manager, BioPreferred Program

Jeff Goodman, Chief Environmental Management Division

Drivers for Biobased Chemicals • Need for an environmentally,

economically, and socially sustainable economy

• Hedge against the price volatility and supply disruptions of petroleum-based products

• Demand for safer materials that are regulatory compliant

• Consumer desire for more sustainable products and reduction in fossil fuel use

Drivers for Biobased Chemicals • New technology development

that have reduced the cost to produce biobased chemicals

• Materials shortages resulting from shifts in the chemical manufacturing industry (i.e., increases in natural gas production)

• Need to stimulate regional and rural development and U.S. jobs

Today’s Legislative Definition of a Biobased Product 2002 Farm Bill

• A product composed of recent biological components

• Agricultural, forestry, and marine materials

Federal Interest in Biobased Products

• Energy Security

• Environmental Security

• Economic Security

• Food Security

The bottom line…sustainability is important, but a healthy, vibrant rural America is also important. BioPreferred can help with both. Tom Vilsak – Secretary of Agriculture

Two Components

of BioPreferred Program

Federal Procurement Preference Voluntary Labeling

Federal Procurement Preference currently includes:

• 97 product categories

• Representing more than 10,000 products

• Product categories continue to be added

Examples

Product Category Minimum

Biobased Content

Water Tank Coatings 59%

Metal Cleaners and Corrosive Removers

71%

Paint Removers 41%

Plastic Lumber Composite Panels 23%

Structural Wall Composite Panels 94%

Slide Way Lubricants 71%

What is the voluntary labeling program?

The USDA Certified Biobased Label

• Launched February 2011

• Serve as an unbiased indicator of biobased content

• Independent third party certification partnership with ASTM International

Label Activity

Category Numbers

Label Applications (from nearly 600 companies)

~2500

Certified Products

~1600

Applications in Process

~800

2014 Major Farm Bill Amendments to Biobased Markets Program

• Begin to designate intermediate ingredients or feedstocks and assembled and finished biobased products within one year

• Promote biobased products, including forest products, that apply an innovative approach to any of the steps in the production process regardless of the date of entry into the marketplace

• Conduct economic impact study of the biobased products industry within one year

• $3 million per year mandatory funding (an increase from $2 million)

Plan to Implement Amendments

• First two amendments will likely require promulgation of regulations

• Final program guidelines rule currently in clearance will provide a process for designating intermediate ingredients or feedstocks and assembled and finished biobased products

– Finalizes rule proposed in 2012

– Expected promulgation date this September

Plan to Implement Amendments (cont’d.)

• Future amendments to program guidelines and labeling rules will promote wood and other products produced innovatively

– Nature of regulations required currently under legal review

– Timing will depend on nature of regulations required

– Amendments to rules will also address minor legislative changes to Farm Bill

• Planning just getting started on economic impact study

• Mandatory funding will allow labeling program to resume

Contact

Ron Buckhalt

Manager

USDA BioPreferred Program

202-205-4008

ronb.buckhalt@dm.usda.gov Web site: www.biopreferred.gov

Twitter: @BioPreferred