NCGA Welcomes Final Rule on Biobased Products Procurement Program
(01-12-05)
The National Corn Growers Association (NCGA) today
welcomed publication of a final rule in the Federal Register that
requires federal agencies to give purchase preference to biobased
products whenever feasible. The rule is a significant step forward
in expanding markets for products derived from corn and other renewable
resources, NCGA leaders said.
Clark Gerstacker, a Michigan farmer and chair of NCGA’s Research
and Business Development Action Team, said the rule supports the
association’s goal of fostering development of a biobased
economy.
“We are very encouraged by the final rule
and believe the program will have tremendous benefits and financial
incentives for all those involved – from the crop producer
to the manufacturer of the product to the seller,” Gerstacker
said. “Products made from corn could potentially replace a
variety of items produced from petroleum and aid in reducing dependence
on foreign oil.”
Agriculture Secretary Ann Veneman said the program
will create a preference across the federal government to purchase
biobased products when practical, based on price, availability and
performance.
“This rule promotes energy independence and
the use of environmentally sustainable energy from biological sources,
while at the same time creating new demand for agricultural commodities
and new business investment and job growth in rural America,”
she said.
The rule stems from the 2002 farm bill, which authorized creation
of a program requiring federal agencies to greatly increase their
use of biobased industrial products. The new rule establishes the
process by which the USDA will designate items for preferred procurement
by federal agencies. According to USDA, federal agencies must assure
within one year after the publication of the final rule that their
procurement specifications require the preference of biobased products
consistent with the rule.
USDA is expected to begin issuing a series of proposed
rules designating specific items for program eligibility that will
extend over the next three years. According to USDA, the government
has already identified 83 items on which it is developing test information
to support designation by rulemaking. The text of the final rule
is available at www.biobased.oce.usda.gov.