The new rule establishes the process by which the Department of Agriculture will designate "items" for preferred procurement by federal agencies. Items are generic groupings of biobased products, such as biobased greases, biodiesel and ethanol when used as additives, hydraulic fluids, biobased polymers, industrial solvents, biobased fertilizers and cutting oils. Federal agencies must assure within one year after the publication of this final rule that their procurement specifications require the preference of biobased products consistent with this rule.
USDA plans to soon begin issuing a series of proposed rules that will designate specific items for program eligibility. After considering public comments, final rules will be promulgated. This process of designating items by rulemaking is expected to extend over the next three years. Once an item is designated, all manufacturers with products that fall within that item may claim preferred procurement status for their products when marketing to federal agencies as long as the biobased content of their products is consistent with the statutory definition and meets the minimum levels specified in the designation rule. While this program is still being implemented, many federal agencies are already incorporating biobased products in their acquisition orders.
With the announcement, Veneman said that all major elements of the Farm Bill have been implemented and have contributed to the strong economic position of U.S. farmers today. What remains, with minor exceptions, are follow-on requirements to continue to carry out programs.
