State Purchasing OfficeDivision of Finance and Procurement

EPP in Colorado Procurement: How Green is Green?

Environmentally Preferable Purchasing and the move toward “Greening” State Entities

Presentation for the CFMA, CIMA, CSMA ConferenceLoveland, CO April 30, 2009

Green Purchasing Requires Support from Leadership

• The State Purchasing Office has support from the Governor and Executive Directors

• Establish a green-focus group, identify who in your organization should be involved.

• Adopt the initiative• Get program managers and staff involvement,

brainstorm, educate users, lead the way. • Benchmark current use, measure results. • Try a small pilot program, be creative, prove cost

benefits can be achieved by trying something different.

What Do You Buy and What is the “E”- Impact?

• “E”= economic impact- energy, environment; P= Performance, Price • Operating costs include inputs/outputs…. what about opportunity cost?”

• Review what your organization currently purchases:– Look for large quantity regular purchases and research the

environmental impact and availability of alternatives with less impact.– Establish a database to track purchases (inputs). This will help illustrate

the environmental impact made.– What happens to the products afterwards? Are they fully consumed or

recycled? How are these products disposed of, and at what cost? Track these outputs when possible.

• Decide what your organization actually needs:

- Review your findings with key users and management - Collaborate with users, develop a plan, create policies for purchasing goods and services that meet your needs while reducing impacts to the environment.

What is the State Doing?

• Governor Ritter issued Executive Orders requiring state agencies to take action to reduce the environmental impact of State Government throughout.

• Key areas addressed in these orders focus on the state’s purchase of commodities.

• Executive Order D0012-07 requires the State Purchasing Office to establish Environmentally Preferable Purchasing (EPP) policy by June 30, 2009. The policy will provide purchasing guidance to assess commodities based on their environmental impact over the life cycle of product (LCA). Solicitation language for sustainably focused products is being developed.

Steps the SPO is taking toward Green Purchasing

• Currently assessing the profile of each state price agreement, establishing cross functional work groups to explore and recommend changes to existing Price Agreements to reduce environmental impact.

• Reviewing products that State agencies purchase through their solicitations in various product categories

• Working with cross-functional work groups. SPO will recommend category standards, attributes, and development of purchasing language for soliciting products that reduce environmental impact and promote cost efficiencies.

Who else is working toward EPP?

• The Governor’s Energy Office is working on a number of environmental initiatives, including EPP Policy. Visit> http://www.colorado.gov/energy/

• NASPO, WSCA, and NIGP are in various stages of researching and implementing greener purchasing strategies.

• Various online organizations offer green attributes & purchasing language suggestions.

• Examples: – Green Seal: http://www.greenseal.org – Eco Logo: http://www.ecologo.org – The Responsible Purchasing Network:

http://www.responsiblepurchasing.org/

Recent EPP implementation

• Per statute, beginning July 1, 2008 the State now requires that all State of Colorado invitations for bids for products shall include language that describes the availability of the purchasing preference for environmental products:

“In accordance with Procurement Code, CRS 24-103-207.5 titled -Purchasing Preference for Environmentally Preferable Products; bidders responding to this solicitation may seek to qualify for the preference and governmental bodies conducting this solicitation shall award a contract to a bidder who offers environmentally preferable products subject to the conditions in the Code and Procurement Rules.”

Why buy green products? 1) Because Environmentally Preferred Products (EPP’s)

help to reduce resource harvest, landfill waste, and use of chemical compounds considered hazardous to public health both in the creation and use of processed goods that negatively impact air and/or water quality.

2) This results in: – Sustainability: aggregated reduction of natural resource

consumption. Re-use & recycling reduces resource harvest, energy/water use, waste volume, and pollution impacts.

– Lowered environmental health-risk and liability, increased worker safety, potentially reduce WC claims/ sick leave.

– Less waste volume= lowered costs/ less frequent disposal – Conserved energy and water resources= reduced operating

costs.

What does “green” mean?

• Environmentally Preferable Products (EPP) are those that have a lesser or reduced adverse effect on human health and the environment when compared with competing products that serve the same purpose.

• Product comparisons may consider such factors as the raw materials used, local availability, use, production, safe operation, maintenance, packaging, distribution, disposal, or recyclability of the product.

How do we get from here to there?

• Decide what core products are necessary to your organization’s mission.

• Assess your consumption levels. • Become knowledgeable about your extended business

environment & similar products purchased to support it. • Make a list of “most-used” (recurring) products you buy:

– Can a “greener” product be found to do the same job, that has less environmental impact, that is also affordable?

– By using less of your usual products, can you justify a slight cost increase to purchase environmentally preferable products?

– Can you collaborate with others in your department, order less frequently on a shared purchasing schedule? Order in bulk?

Where to start?

• What exactly is it that my organization does?

• What products do we absolutely need in order to accomplish what we do?

• How much do we spend on products to conduct our business?

• Do we really use that much?

• Could we use/purchase less?

Who says it’s “green”?• There are 3rd-party certification orgs who

do independent LCA testing and offer measurable criteria for what constitutes “green” products. Some examples:

• Green Seal: http://www.greenseal.org

• Eco Logo http://www.ecologo.org

• Electronic Product Environmental Assessment Tool (EPEAT) http://www.epeat.net/

Why are green products a good choice?• What’s the “real” cost?

– EPP considers products/services over the entire life cycle, from raw material extraction to transport, use, and final end-of-use management or disposal. The analysis acknowledges direct and indirect environmental, health, and financial costs. Consequently, a product that has a lower initial purchase price than a similar but more environmentally preferable product, may actually cost more over the long term (all impacts considered).

• Economic benefits include but are not limited to:– Reducing material consumption (less spend)– Providing an outlet for recyclable materials (less landfill waste/disposal

costs)– Reducing greenhouse gas emissions (lowered pollution)– Conserving water (less spend) – Conserving energy (less spend)– Reducing the presence of toxic and hazardous substances in the

workplace and environment (results: better health, less worker illness or productivity lost, potential liability from injury/ Workers Compensation claims.

The green path of least resistance:why re-invent?

• Who has a green product agreement?

• Can your organization use the agreement?

• Could they share information about their green purchasing practices?

• How did they get their message across to users?

• What went right or wrong buying green products?

Where do we get information about green practices?

• There are a growing number of states, local and private entities that are working toward, or that already have environmental policies. Search “EPP” or “Sustainable—” .

• Some examples of green practices: MA> http://www.mass.gov CA> http://www.green.ca.gov/EPP/WA> http://www.metrokc.gov/procure/green/ (email me @ jeff.wylde@state.co.us for resource links)

Green Resource Links

(just a small example of what’s available) • Terra Choice- (Scott Case) http://www.terrachoice.com• EPEAT (electronic product environmental assessment tool): http://www.epeat.net• Energy Star: http://www.energystar.gov• LEED (US Green Building Council): http://www.usgbc.org• Green Guard (Indoor Air Quality): http://www.greenguard.org• Composting Council: http://www.compostingcouncil.org• US EPA.Gov> Product DBASE http://www.epa.gov/epp/pubs/jwod_product.pdf• http://www.epa.gov/cpg/products/paper.htm;

http://yosemite1.epa.gov/oppt/eppstand2.nsf ; • http://www.responsiblepurchasing.org/UserFiles/File/Cleaners/Standards/

EPA_DraftFormulatorReview_Feb08.pdf• Consumer Reports, Green Labels> http://www.greenerchoices.org/eco-labels/eco-

home.cfm?redirect=1• UNEP> (United Nations Environment Programme) http://www.unep.org/• GREEN GUARDIAN > http://www.greenguardian.com/eppg/default.asp• Climate Savers Computing Initiative> http://www.climatesaverscomputing.org/• Green-e>(certification org, carbon offsets, etc.) http://www.green-e.org/ • http://www.green-e.org/base/pl_products• Environmental Choice

http://www.enviro-choice.org.nz/published_specifications.html• GEN (Global Eco-labeling Network): http://www.gen.gr.jp

How do I get the message across to my users?

• Establish user groups, gather information about standard organizational practices, discuss consumption, greening opportunities, identify easy cost-savings targets.

• Cost savings, durability, lowered toxicity, less waste.• If it’s greener, performs well, and cost isn’t significantly

higher, can we try it? Get creative, see what’s possible. • Identify successes experienced by others making

conversions to Eco-friendly products/ services. • Look for win-win possibilities. Benefits to buyer/vendor

could include reductions in energy, handling, transportation & fuel, storage volume, waste (time or material), packaging, providing recycling/ alternate use opportunities, rebates, energy credits, etc.

What Next?• What’s going on now?

– Public and Private entities are adopting sustainable practices. We must educate ourselves to know what greening government means, and how “green-washing” (degrees of green) can mislead us.

• What’s new? – The New Energy Economy: Colorado

visit: www.colorado.gov/energy/ – Emerging green products and practices

• How can I become involved?– Become informed, explore change opportunities. – Develop a critical eye, accumulate tools for understanding

what “green” means to your business.