BIOBASED PRODUCTS

ASA Position

ASA urges USDA to:

1)      Continue to expand the BioPreferred procurement program by adding new categories so that more soy-based products are eligible.

2)       Implement the biobased label, including criteria for qualifying to use it, to help identify true biobased products and help pull them into the market.

3)      Promote use of the biobased label and use of biobased products to consumers.

4)      Follow-up letters from Secretary Vilsack to other federal agencies asking that their procurement officials comply with the requirement in the 2008 Farm Bill that biobased products be purchased when they are commercially available and competitive with petroleum-based products.

ASA supports enactment of a production tax credit for biobased products to make this industry competitive with other sectors in sourcing feedstocks, including soybean oil.

Background

Section 9002 of the 2002 Farm Bill created the federal biobased products preferred procurement program (BioPreferred^SM program).  The program was updated in the 2008 Farm Bill. The program requires USDA to:

·        Accelerate designation of categories of biobased products for procurement preference under the BioPreferred program.  To date, 42 categories of products comprising 5,600 individual products ranginf from soy-backed carpeting to engine oils to soy-based insulation have been announced.  ASA continues to encourage USDA to identify and designate additional product categories.

·        Establish a voluntary program under which the USDA authorizes producers of biobased products to use the label “U.S.D.A. Certified Biobased Product.”  This initiative is similar to the Energy Star label for appliances.  The Secretary is required to issue criteria for determining which products may qualify to receive the label. 

·        Provide information as to the availability, relative price, performance, and environmental and public health benefits of biobased materials and items. Where appropriate, the Secretary shall recommend the level of biobased materials to be contained in the procured product.

·        Ensure that all federal agencies give preference to the purchase of biobased products designated by the Secretary of Agriculture. 

ASA and other farm trade associations and allied industry formed the Biobased Products Coalition (BPC) to work with USDA and other federal agencies to implement the provisions of Section 9220 of the 2008 Farm Bill.  The BPC is also working to support legislation establishing a production tax credit for biobased products.  The tax credit would be similar to those provided to producers of biofuels, and is intended to make biobased products competitive in sourcing soybean oil and other feedstocks used in production of biobased products.