January 22, 2014 1 Green Goods: How to Create Sustainable County - - PowerPoint PPT Presentation

1 January 22, 2014

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Green Goods: How to Create Sustainable County Purchasing and Procurement Programs

November 21, 2013

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Rob Pressly Program Manager, Green Government Initiative National Association of Counties

NACo S taff

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NACo’s Green Government Initiative

For more information please visit: NACo.org/ GreenCounties

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GGI S pring Forum

Powering County Resilience: Renewable Energy Solutions Forum March 20 – 22, 2014 Santa Barbara County, CA Registration is Open! Visit www.naco.org/GGI2014

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S PONS ORS

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Agenda:

• Welcome and Introductions

Rob Pressly Program Manager, Green Government Initiative National Association of Counties

• Moderator Introduction

Eric Heaps President The Public Group

• Environmental Purchasing Programs

S am Hummel Director of Outreach S ustainable Purchasing Leadership Council

• King County, Washington’s Environmental Purchasing Program

Karen Hamilton Environmental Purchasing Program Manager King County, WA

• Fairfax County, Virginia’s Green Purchasing Program

Chris McGough Environmental Purchasing Analyst Fairfax County, V A

• Q&A
• Closing Remarks

Council Background

Sam Hummel Director of Outreach sam@purchasingcouncil.org 919.475.8136

About SPLC

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Members ¡ Aerospace ¡ Agriculture ¡ Architecture ¡ Consulting ¡ Defense ¡ Energy ¡ Entertainment ¡ Environmental Services ¡ Food Service ¡ Government - Local ¡ Government - National ¡ Government - State/Provincial ¡ Higher Education ¡ Hospitality ¡ Information Services ¡ Information Technology ¡ Manufacturing ¡ Nonprofit ¡ Office Products ¡ Standards Developers & Certifiers ¡ Transportation ¡ Utilities ¡ Purchaser, 47% Supplier, 43% Advocate, 10%

• Launched July 2013
• Multi-sector, multi-stakeholder
• “Do for sustainable procurement what

USGBC did for green building.”

• www.purchasingcouncil.org

SPLC Approach

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Part 1: A Unique Opportunity

Opportunity

Final Consumption

Opportunity

US Final Consumption

Opportunity

Opportunity

Opportunity

Health care Housing Electricity Financial services and insurance Food services Transportation services Recreation services Education services Communications services Personal care services Hospitality services

Opportunity

Opportunity

± 100 million US jobs 70% of US employment

1 Purchaser = 100s of Consumers

Purchasing Organizations

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…are uniquely positioned to demand transparency into the upstream and downstream impacts of goods and services. …are capable of incorporating sustainability criteria into purchasing decisions at a scale that can shift markets. …are specially equipped to drive down the cost of sustainable products and services so that everyone can afford them. …are already responsible for ensuring that end-users understand, like and adopt new products and services.

Part 2: The Landscape of the Movement

1970s – Rethinking Waste

Earth Day Environmental Protection Agency Federal Resource Conservation & Recovery Act

• Imposed public safety restrictions on solid and

hazardous waste

• Promoted conservation: recycling and energy

efficiency

• Encouraged markets for reclaimed materials

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1970 1976

1987

1980s – It’s All About Recycled Content

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1989

Recycled paper market collapses

1983

EPA issues first recycled content guideline

(for cement and concrete fly ash)

EPA issues 5 product guides

(cement, paper, oils, tires, insulation)

Municipal governments start “buy recycled” programs

1990s – Moving Beyond Recycled Content

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1993

Federal gov’t expands efforts beyond recycling to “environmentally preferable products”

1995

~12 major North American eco-labels

(primarily single attribute labels: energy efficient; sustainably harvested; recycled; etc)

1998

47 states and 500+ local govt’s have a “buy recycled” program or policy; a few have “environmentally preferable purchasing” programs/coordinators

>70 eco-labels!

2000s – Proliferation of Programs & Problems

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Many similar-but-different policies

2008

Green Products Roundtable forms

2009

Federal Executive Order 13514 signed NASPO begins inter-state collaboration Walmart launches The Sustainability Consortium

2005

Responsible Purchasing Network founded

2010s – Convergence and performance

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“Sustainable Purchasing” Data-driven impact assessments of spending Multi-sector and public/private collaboration All sustainability plans converge on Procurement

Convergence Performance

Emphasis on measuring impact Shared metrics and benchmarking Credible third-party leadership recognition Adding business value

2010s – Convergence and performance

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Strategic

Sustainable Procurement

Part 3: Strategic Sustainable Procurement

Strategic Sustainable Purchasing

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Analyze Action Plan Implement Measure Results

Familiar Spend Management & Continuous Improvement Process

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Analyze Action Plan Implement Measure Results

Standard Procurement Process

Requirements Development Assess Market Invite Supplier Offers Select Supplier Agree to Terms Manage Contract

Spend Management Process

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Analyze Action Plan Implement Measure Results

Requirements Development Assess Market Invite Supplier Offers Select Supplier Agree to Terms Manage Contract

Cross-functional, stakeholder engagement happens here Which means there’s less strife here

Standard Procurement Process Spend Management Process

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Analyze Action Plan Implement Measure Results

Requirements Development Assess Market Invite Supplier Offers Select Supplier Agree to Terms Manage Contract

Clear metrics connect implementation and continuous improvement

Standard Procurement Process Spend Management Process

Pilot: Higher Education Purchasing

purchasing categories

5 64%

• f total

spending

83%

• f estimated

impacts

Insight:

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Analyzing & prioritizing enables focus on best opportunities. Helps avoid exhausting resources chasing the long tail.

Strategic Planning Guide

Provide guidance on how to…

…build support for developing a Strategic Sustainable Purchasing Plan …structure stakeholder engagement …conduct cost-effective and actionable spend analysis …identify credible actions and create an Action Plan …set performance goals and metrics …implement the plan …promote continuous improvement

Thank you.

www.purchasingcouncil.org

Sam Hummel Director of Outreach sam@purchasingcouncil.org 919.475.8136

King County, Washington’s Environmental Purchasing Program NACo Webinar January 22, 2014

King County Facts

Environmental Policies

Env Purchasing Ordinance Strategic Plan Climate Plan Energy Plan Green Building Ordinance

Environmental Purchasing

 Buy recycled and environmentally preferable products

“whenever practicable” [KCC 18.20]

 Mandates

 Recycled paper (min. 30% copy; 100% preferred; 20% reduction)  Electronics recycling (e-Steward certified or equiv)  Re-refined motor oil (recycled content)  Annual Reports (County Council)

 Considers multiple attributes of products

 Less-toxic  Resource efficient (water, energy)  Reduced GHG emissions

Environmental Purchasing Program

Responsibilities

• Communicate policy requirements
• Provide technical assistance
• Document purchases and product

evaluation results

• Publish annual report
• Produce bulletins and website
• Outreach

Obstacles to EPP

Unfamiliar Products Lack of Standards Greenwashing Price and Performance Measurement

Opportunities

Standards/Eco-labels Cost-effective Products Cooperative Contracts Pilot Projects Networking

Recycled Copy Paper

 Paper Policy - 2012 goal

reduce copy paper consumption by 20% increase purchase of 100% recycled content

 Status

 25% waste reduction  Reduced 375 tons* GHG  $218,975 savings – 2 years

*estimated by the Paper Calculator – www.papercalculator.org 5,000 10,000 15,000 20,000 2010 2011 2012 2013

Copy Paper

100% 40% 30%

Cases of Paper

Green Cleaners

Cleaning Protocols Chemical Use Reduction Worker Health & Safety Certified Cleaners Microfiber Cloths & Mops Cost Savings

Electronics

 E-waste Recycling

 e-Stewards Enterprise  Computer’s, TV’s, cell

phones, printers, etc

 Purchases

 4,156 EPEAT Products  Desktops, workstations,

monitors and laptops

 GHG emissions

 Reduced 660 metric tons

*estimated by the “Electronics Environmental Benefits Calculator” – www.epeat.net

Motor Oils & Lubricants

 Re-refined Motor Oil

 Less expensive than virgin  Closed-loop  Used in cars, trucks & buses

 Bio-based Hydraulic Oil  Standard - Required pre-filled

in new equipment

Hybrid/Electric Vehicles

 Cars and trucks

 30% - 50% fuel

reduction

 19-23% ROI - higher

upfront costs

 Hybrid buses

 save $4.7 million

annually in fuel costs and reduce greenhouse- gas emissions by 18,000 tons

Electric Vehicles

 Electric cars

 30 for MetroPool

 Plug-in hybrid/electrics

 Battery conversions

 Charging Stations

 Over 100 since 2011  Joint procurement

Sustainability Report

Toward a Sustainable, Prosperous King County 2012 Annual Report of

King County's Climate Change, Energy, Green Building and Environmental Purchasing Programs

2012 Supplemental Purchasing Detail Report

Savings/Environmental Benefits

Lessons Learned

 Work collaboratively

 Internal – all levels  External - Local/national

 Use existing resources

 Learn from others experiences  Use/copy other contracts

 Use standards and certifications  Build on each success  Measure, document and share

Contact

Karen Hamilton Environmental Purchasing Program Manager King County Procurement and Contract Services Seattle, Washington 206-263-9294 karen.hamilton@kingcounty.gov www.kingcounty.gov/procurement/green

How we got started Accomplishments & challenges Where we hope to go next

 Locati

tion

• n & Influen

luences es

 Pr

Procureme curement nt

• $700 million spent on goods/services annually.
• 2,000+ active contracts at any given time.
• Staff of 50. Responsible for contract administration

(process) while department’s decide what to buy.

• Support 55 “customer” departments.

 Pr

Program gram Goals ls

• Green operations
• Save taxpayer money
• Nudge the market

 Respons

ponsibi ibili liti ties es

• Consulting

 Challe

lenge nges s are signific ficant! ant!

• Lack of resources. Very small team. Often powered by

intern assistance.

• Discretionary Policy adopted in 2009. Does not change

procurement process.

• Department culture, mission, and individual staff play

significant role in willingness to consider green attributes during procurement.

• Lack of a sustainability office. Committee based

structure.

 Good news. Success is still possible…

 Resources devoted to the following strategies

50% is changing behavior. Strategic outreach to provide direction/motivation. 50% is changing the path. Shift from opportunistic consideration to systematic consideration of environmental attributes during the procurement process.

 Focus on greening key contracts rather than

thousands of individual purchase orders

 Prioritize. Impact, probability, penetration.  Partner with environmental staff.  Ride green contracts. All US Communities solicitations use language encouraging vendors to submit green solutions.

 Narrow choices in ERP/vendor’s catalog

 Works well to shift purchase of low value, commonly purchased items.  Example: office supplies, remanufactured printer cartridges, paper.

 Enhance solicitation process

 Use standard ‘green’ language in all solicitations.  Enhance reporting. Take credit for vendors voluntarily providing green products/services.  Create incentives (where possible). Faster payment schedule (net 15 vs net 30). Conditional awards and renewals to lower vendor risk and increase competition.

 Policy improvements

 Energy efficient purchasing policy  Realign incentives, encourage future innovation. Establish a revolving grant.

 Internal Communication Strategy (replace text w/

pictures):

• Connect green purchasing goals with employee green team.

Leverage the passionate employees across the organization to take action through procurement decisions.

• Recognize success. Fairfax County sustainability champions.
• Blog. Two-way conversations. Examples: top green

products, how to use conference call software.

• Host events. Replica green office and green lounge at a

conference for 500+ admin employees. Green Roof tour.

• Friendly competitions.
• Branded effort via lanyards.

 Success stories often require a bit of both

strategies – direction/motivation and changing the process.

• Example: Fairfax County’s reuse of surplus

Chris McGough Christopher.McGough@fairfaxcounty.gov 703-324-3288

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