HB5051 93RD GENERAL ASSEMBLY

LRB093 18785 JAM 44519 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5051

Introduced 02/05/04, by Paul D. Froehlich, Karen May

SYNOPSIS AS INTRODUCED:

30 ILCS 500/Art. 33 heading new
30 ILCS 500/33-1 new
30 ILCS 500/33-5 new
30 ILCS 500/33-10 new
30 ILCS 500/33-15 new
30 ILCS 500/33-20 new
30 ILCS 500/33-25 new
30 ILCS 500/33-30 new
30 ILCS 500/33-35 new
30 ILCS 500/33-40 new
30 ILCS 500/33-45 new
30 ILCS 500/45-15
30 ILCS 500/45-20
30 ILCS 500/45-25

Amends the Illinois Procurement Code. Requires that State agencies purchase recycled and recyclable products to meet their procurement needs. Requires that State contractors perform State contracts with recycled and recyclable products. Exempts products for which recycled or recyclable alternatives are not adequate, reasonably available, or reasonably priced. Requires that minimum content standards be established. Designates certain products as available with significant levels of recycled or recyclable material. Imposes various related duties upon the Procurement Policy Board, chief procurement officers, State agencies, contractors, and bidders. Replaces the 10% preference for recycled materials with a 5% preference for recycled products meeting certain federal specifications. Effective January 1, 2005.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning procurement.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Procurement Code is amended by adding the heading of Article 33 and Sections 33-1, 33-5, 33-10, 33-15, 33-20, 33-25, 33-30, 33-35, 33-40, and 33-45 and changing Sections 45-15, 45-20, and 45-25 as follows:

(30 ILCS 500/Art. 33 heading new)

ARTICLE 33 ENVIRONMENTALLY RESPONSIBLE PROCUREMENTS

(30 ILCS 500/33-1 new)

Sec. 33-1. Application.

(a) This Article applies to all procurements subject to this Code. If a provision of any other Article of this Code conflicts with a provision of this Article, the provision of this Article shall apply.

(b) This Article applies to invitations and requests for proposals made and contracts awarded after the effective date of this amendatory Act of the 93rd General Assembly.

(30 ILCS 500/33-5 new)

Sec. 33-5. Definitions. As used in this Article:

"Designated products" means all products that have been or may be identified pursuant to Section 33-15 as products that can be procured with significant levels of recovered materials.

"Minimum content standards" means standards set by the State or, in their absence, standards or guidelines currently promulgated by the United States Environmental Protection Agency, specifying the minimum level of recovered materials or post-consumer material, or both, necessary for designated products to qualify as recycled products.

"Paper and paper products" means all items manufactured from paper or paperboard.

"Post-consumer paper material" means paper, paperboard, and fibrous waste including corrugated boxes, newspapers, magazines, mixed waste paper, tabulating cards, and used cordage after the point at which they have passed through their end use as consumer items.

"Post-consumer material" means only those products generated by a business or consumer that have served their intended end uses and that have been separated or diverted from the solid waste stream for the purposes of collection, recycling, and disposition.

"Practicable" means (1) able to perform in accordance with applicable specifications; (2) available at a reasonable price offered as the low bid under the procedures in this Code; (3) available within a reasonable period of time; and (4) maintaining a satisfactory level of competition.

"Recovered material" means material and byproducts that have been recovered or diverted from solid waste, but does not include those materials and byproducts generated from, and commonly reused within, an original manufacturing process (such as mill broke or home scrap).

"Recovered paper material" means paper waste generated after the completion of a paper making process, such as post-consumer material, envelope cuttings, bindery trimmings, printing waste, cutting and other converting waste, butt rolls, and mill wrappers; obsolete inventories; and rejected unused stock. Recovered paper material, however, shall not include fibrous waste generated during the manufacturing process such as fibers recovered from waste water or trimmings of paper machine rolls (mill broke), fibrous byproducts of harvesting, extractive or woodcutting processes, or forest residue such as bark.

"Recycled designated product" means a product designated pursuant to Section 33-15 that meets or surpasses the State's minimum content standards and all other criteria for qualification as specified in this Code.

"Reusable product" means a product that can be used several times for an intended end use before being discarded, such as a washable food or beverage container or a refillable ball point pen.

"Recycle or Recycling" means any process by which materials that would otherwise become waste are collected, separated, or processed and returned to the economic mainstream in the form of new, reused, or reconstituted products, but does not include the recovery of materials for fuel in combustion or energy production processes. For lubricating oil, the term recycling is to be synonymous with re-refining. For toner cartridges, the term recycling is to be synonymous with re-manufacture.

"Recyclable" means that the product is technically capable of being recycled and that economic markets for collecting and recycling the product exist within a reasonable distance, including steel and plastic.

"Chlorine-free paper or paper products" means (1) recycled paper in which the recycled content is unbleached or bleached without chlorine or chlorine derivatives or (2) virgin paper that is unbleached or processed with a sequence that includes no chlorine or chlorine derivatives.

(30 ILCS 500/33-10 new)

Sec. 33-10. Environmentally responsible procurements.

(a) Whenever practicable, all State agencies shall meet their procurement demands with recycled products and recyclable products.

(b) Whenever practicable, the State shall require contractors to perform State contracts with recycled products and recyclable products.

(c) When specifying designated products under this Article, the State shall require recovered material content or post-consumer material content, or both, to be factors in determining the lowest responsible bid in any competitive bid selection process.

(30 ILCS 500/33-15 new)

Sec. 33-15. Designated products and recycled designated products. For purposes of this Article, the products listed in this Section are designated as products that can be readily procured with significant levels of recovered materials. Designated products shall qualify as recycled designated products if they meet minimum content standards established pursuant to this Article. Designated products shall include:

(1) Paper and paper products.

(2) Compost products.

(3) Horticultural mulch made with recycled landclearing and other wood debris.

(4) Construction aggregates made with recycled cement concrete, tire rubber, glass, or asphalt.

(5) Cement and asphalt concrete containing glass cullet, recycled fiber or plastic, or tire rubber.

(6) Antifreeze.

(7) Recycled plastic products, including lumber shapes, refuse carts, traffic cones, insulation, receptacle liners, recycling bins, traffic barriers, and office products.

(8) Retreaded tires and products made from recycled tire rubber, including rubber mats and playfield surfaces.

(9) Toner cartridges for computer printers.

(10) Lubricating oil and hydraulic oil with re-refined oil content.

(11) Insulation products.

(12) Paint.

(13) Wood products containing 50% or more reused or deconstructed wood.

(14) Carpeting made from recycled fibers.

(15) Office furniture.

(16) All steel products.

(17) Other products as designated by each chief procurement officer.

(30 ILCS 500/33-20 new)

Sec. 33-20. Requirements for procurement contracts.

(a) Invitations to bid issued for the purchase of tangible goods shall contain no terms, requirements, or specifications prohibiting or discouraging post-consumer or recovered material content, unless the purchasing agency provides the appropriate chief procurement officer with satisfactory evidence that, for technical reasons and for a particular end use, a product containing such materials will not meet reasonable performance standards.

(b) In determining the lowest responsible bid for the purchase of designated products pursuant to, Section 33-15, the purchasing agency shall use the procedures and evaluation criteria specified in this Article. If the lowest price offered for a recycled designated product is not more than the specified percentage higher than the lowest offered price for that same designated product that is not recycled, the offered price for the recycled designated product shall be considered the low bid if such bidder is otherwise responsible. The specified percentage will not be less than 10%. However, nothing contained in this Article shall preclude State agencies from requiring post-consumer or recovered material content as a bid specification.

(c) Each contractor supplying the State with recycled designated products shall provide acceptable certification from all product manufacturers that the products being supplied meet or surpass minimum content standards and shall agree to reasonable verification procedures specified by the purchasing agency.

(d) Invitations to bid for designated products, whether recycled or not, shall require the bidders, if awarded a contract, to provide quarterly summaries of the quantities purchased by State agencies, unless the appropriate chief procurement officer determines that this requirement would significantly reduce the number of bids received.

(e) The State shall not purchase any item whose original manufacturer places restrictions on the remanufacturing of such item by other businesses.

(30 ILCS 500/33-25 new)

Sec. 33-25. Procurement of paper and paper products.

(a) The Procurement Policy Board shall adopt minimum content standards for recycled paper products. Minimum content standards shall, at minimum, be consistent with standards currently promulgated by the United States Environmental Protection Agency, unless the Board determines that a different standard would significantly increase recycled product availability or competition.

(b) The Board shall use a percentage factor of at least 10% in the process of determining the lowest responsible bidder for paper and paper products. For paper or paper products that are both recycled and chlorine-free, the percentage factor shall not be less than 15%. The Board may elect to establish higher percentages.

(c) All imprinted letterhead paper, copy paper, computer printer paper, and note pads used by State agencies shall be recycled paper containing at least 30% post-consumer content.

(d) Printing press services provided by the State or purchased by the State shall utilize soy or other vegetable-based inks. If lithographic ink is used in printing performed by the State or in printing services purchased by the State, the ink shall contain not less than the following percentages of vegetable oil:

(1) News ink, 40%;

(2) Sheet-fed and forms ink, 20%;

(3) Heat-set ink, 10%.

High quality color process printing on high speed heat-set presses is exempt when slow drying time significantly increases production costs.

(e) State agencies shall publicize the State's use of recycled paper by printing the words "Printed on Recycled Paper" on all letterhead paper and on the title page of all reports printed on recycled paper.

(f) To reduce the volume of paper purchased, State agencies shall use both sides of paper sheets whenever practicable.

(g) All bids for new equipment and services shall include language that will encourage the use of recycled paper and paper products, wherever practicable.

(h) State agencies shall phase in equipment to facilitate the use of recycled paper products, wherever practicable.

(i) In instances where recycled paper and paper products may void existing warranties, service agreements, or contracts, recycled paper and paper products shall not be specified.

(j) Requests for proposals shall require all proposed contractors to agree to the following as a precondition to contract awards:

(1) All reports submitted to State agencies by a contractor in fulfillment of contract obligations shall use recycled paper when it is available at a reasonable price. For the purpose of this subsection, the price of recycled paper shall be considered "reasonable" if its cost is no more than 10% higher than the lowest price offered for non-recycled paper.

(2) Reports submitted to State agencies shall use both sides of paper sheets whenever practicable.

(3) The contractor shall maintain records of purchased paper and paper products, including product description, supplier, amount purchased, unit prices, and justifications for any use of non-recycled paper. This information shall be submitted to the purchasing agency before contract expiration, according to procedures to be established by each chief procurement officer. The contractor shall be responsible for maintaining records and submitting the information for all of its subcontractors.

(k) Printing services purchased by the State shall be on recycled paper containing at least 30% post-consumer content.

(30 ILCS 500/33-30 new)

Sec. 33-30. Annual report. Each State agency shall submit to its chief procurement officer a report evaluating procurements under this Article, including the following components:

(1) Quantities of designated products purchased by the State agency.

(2) Quantities and types of recycled products purchased.

(3) Prices and relative quantities purchased of recycled and non-recycled designated products.

(4) A determination as to whether minimum content standards should be changed or remain the same.

(5) An assessment of the effectiveness of this Article and an evaluation of its goals.

(6) Recommendations for changes in procurement policy under this Article, including designation of additional products.

(30 ILCS 500/33-35 new)

Sec. 33-35. Responsibilities and reporting requirements of State agencies. All State agencies are responsible for:

(1) Purchasing and using recycled products whenever practicable.

(2) Documenting any technical problems that preclude the use of recycled products.

(3) Providing written explanations to the appropriate chief procurement officer for not purchasing recycled products.

(4) Conducting comparative tests of the performance of recycled products and non-recycled products, as requested by a chief procurement officer.

(5) Transmitting to contractors, upon their request, information about their recycled products and vendors.

(6) Collecting information from contractors about their designated product purchases before contract expiration dates.

(7) Informing the appropriate chief procurement officer of potential uses of recycled products by contractors.

(30 ILCS 500/33-40 new)

Sec. 33-40. Responsibilities of chief procurement officers. Each chief procurement officer is responsible for:

(1) Disseminating recycled product information to State agencies.

(2) Assisting State agencies in resolving problems and complaints concerning recycled product performance or availability.

(3) Revising or amending standard bid documents and contract language where necessary to implement this Article.

(4) Adopting and updating minimum content standards for designated recycled products other than recycled paper products.

(30 ILCS 500/33-45 new)

Sec. 33-45. Exemptions. Nothing in this Article shall be construed as requiring a State agency or contractor to procure products that do not perform adequately for their intended end use or are not available at a reasonable price in a reasonable period of time.

(30 ILCS 500/45-15)

Sec. 45-15. Soybean oil-based ink. Contracts requiring the procurement of printing services shall specify the use of soybean oil-based ink unless a State purchasing officer determines that another type of ink is required to assure high quality and reasonable pricing of the printed product.

This Section is subject to the provisions of Article 33 of this Code.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)

(30 ILCS 500/45-20)

Sec. 45-20. Recycled materials. The State of Illinois shall meet the buy-recycled requirements of Section 6002 of the federal Resource and Conservation Act (RCRA), and the State and all State-supported institutions shall exclusively purchase products from the federal Environmental Protection Agency's Comprehensive Procurement Guidelines, unless the cost of non-recycled products is 5% less than the cost of recycled-content products. This Section is subject to the provisions of Article 33 of this Code. When a public contract is to be awarded to the lowest responsible bidder, an otherwise qualified bidder who will fulfill the contract through the use of products made of recycled materials may, on a pilot basis or in accordance with a pilot study, be given preference over other bidders unable to do so, provided that the cost included in the bid of products made of recycled materials is not more than 10% greater than the cost of products not made of recycled materials.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)

(30 ILCS 500/45-25)

Sec. 45-25. Recyclable paper. All paper purchased for use by State agencies must be recyclable paper unless recyclable paper cannot be used to meet the requirements of the State agencies or does not meet the requirement of Section 45-20. State agencies shall determine their paper requirements to allow the use of recyclable paper whenever possible, including without limitation using plain paper rather than colored paper that is not recyclable.

This Section is subject to the provisions of Article 33 of this Code.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)

Section 99. Effective date. This Act takes effect January 1, 2005.