Comprehensive Procurement Guideline IV for Procurement of Products
Containing Recovered Materials (CPG)
RMAN IV - April 30,
2004
"Preference Program: EPA recommends that procuring agencies whose
vehicles (passenger vehicles as well as medium- and heavy-duty equipment, including
trucks, cranes, off-road vehicles, and military vehicles) are serviced by a motor pool or
vehicle maintenance facility establish a service contract to require the use of rebuilt
vehicular parts in the agencies vehicles or establish a program for vehicular parts
rebuilding and reuse consisting of either recovering a used vehicular part and rebuilding
it, replacing it with a rebuilt part, or contracting to have the part replaced with a
rebuilt part. This designation applies to vehicles served by both on-site and commercial
facilities."
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The
Resource Conservation and Recovery Act of 1976 (RCRA) requires "procuring
agencies" to buy recycled-content products designated by the Environmental Protection
Agency (EPA) in the Comprehensive Procurement Guideline IV for Procurement of Products
Containing Recovered Materials (CPG). On April 30, 2004 the EPA ammended the CPG by
designating seven new items that are or can be made with recycled materials - including
rebuilt vehicular parts.
The CPG was issued by the
EPA under the authority of the Solid Waste Disposal Act, as ammended by the Resource
Conservation and Recovery Act of 1976 (RCRA). The April 30, 2004 ammendments to the CPG
became effective on May 2, 2005.
The RCRA requires the EPA
to designate items that are or can be made with recycled materials (which the CPG
addresses), and recommend practices to help procuring agencies meet their obligations
under RCRA (which the Recovered Materials Advisory Notice IV [RMAN IV] addresses). RMAN IV
also had an effective date of May 2, 2005.
To be labeled
rebuilt or remanufactured, a part must be
processed in accordance with the Federal Trade Commission's (FTC) Guides for the
Rebuilt, Reconditioned and Other Used Automotive Parts Industry, 16 CFR Part 20.
Who's
affected by these regulations?
In general, any
"procuring agency" that purchases (among other things) rebuilt vehicular parts
is required to comply only when the designated item exceeds a price of $10,000 or when the
quantity of the item purchased in the previous year exceeded $10,000. Procuring agencies
include (1) any federal agency, (2) any state or local agency using appropriated federal
funds for a procurement, or (3) any contractors of these agencies who are procuring items
for work they perform under the contract.
Such agencies had until April 30, 2005 to revise their
affirmative procurement programs to include the new items designated by the CPG IV. The
RCRA requires that each procuring agency must procure items, "composed of the highest
percentage of recovered material practicable consistent with maintaining a satisfactory
level of competition, except in defined circumstances. These include a determination that
the item (1) is not reasonably available within a reasonable period of time; (2) fails to
meet applicable performance standards; and (3) is only available at an unreasonable
price."
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