SUPPLEMENTARY INFORMATION:

A. Background

This proposed amendment to FMR part 102-36 (41 CFR part 102-36) would update policy pertaining to the disposal and reporting of FEA. On October 5, 2009, President Obama signed Executive Order (E.O.) 13514, Federal Leadership in Environmental, Energy, and Economic Performance, to create a clean energy economy that will increase the nation's prosperity, promote energy security, protect the interests of taxpayers, and safeguard the health of our environment. The E.O. mandated Federal agencies to lead the national effort by example.

To address the goals of the E.O., an Interagency Task Force on Electronics Stewardship (the Task Force) was formed, and was co-chaired by the White House Council on Environmental Quality, the Environmental Protection Agency, and GSA. On July 20, 2011, the Task Force issued its report, the “National Strategy for Electronic Stewardship,” which provided recommendations to Executive agencies in regards to meeting the objectives of E.O. 13514 for the reuse, disposal, and handling of FEA. The Task Force recommended that certain sections of FMR part 102-36 be amended to provide policy to Executive agencies on the disposal and reporting of FEA.

In order to develop those amendments, GSA requests comments regarding (1) the suitability and feasibility of bulk sale of functional Federal Electronic Assets (FEA) to certified recyclers only through public auction programs (not the general public as drafted in this proposed rule); (2) restricting disposal of FEA in landfills or through incineration; (3) what electronics recycling standards are in use or being developed; and, (4) criteria regarding the technical content and other aspects of the electronics recycling standards that recyclers conform to in order to be considered “certified recyclers ” under this proposed rule.

At this time, GSA has identified two electronics recycling standards to which recyclers may conform to in order to be considered a “certified recycler” under this proposed rule—the Responsible Recycling (R2) Standard ( http://www.r2solutions.org/​r2practices/​r2-standard/​) and the e-Stewards Standard ( http://e-stewards.org/​certification-overview/​e-stewards-standard/​). Recyclers that conform to either of these two standards would be considered a “certified recycler” under the proposed rule.

GSA recognizes that recyclers may use other existing standards or that other standards may be developed in the future. In order to ensure that recyclers conforming to such other standards are not excluded from procurements as the recycling industry grows domestically and internationally, GSA, in consultation with relevant agencies, will develop criteria to be used to evaluate and determine which standards recyclers may conform to in order to be considered “certified recyclers” under this proposed rule. Once completed, GSA will make these criteria publicly available.

Comments regarding certification criteria should address the following:

(1) The technical content of the standard, such as environmental, workplace and safety practices, data sanitization and security standards, environmental, health and safety management systems, and how to promote reuse and recycling over disposal;

(2) The standard-setting process— i.e., the procedures used to develop and maintain the standard, such as the transparency and objectiveness of the processes; and

(3) The conformity assessment procedures used to determine whether a recycler conforms to a standard. An example would be the independence of assessors evaluating a recycler.

Additional information regarding reuse, recycling, and refurbishment is available at http://www.epa.gov/​fec/​publications.html#eol.

In addition, the proposed amendment would make minor edits, update organizational designations, and make non-substantive changes to improve the readability and ease of use of this part.

This proposed amendment would specifically:

1. Replace the definition “Cooperative” to “Cooperator” in section 102-36.40 and change applicable terminology throughout this part;

2. Define Certified Recycler, Federal Electronic Asset (FEA), Functional FEA, Non-Functional FEA, and Take Back Programs.

3. Change the Defense Reutilization and Marketing Office (DRMO) to Defense Logistics Agency Disposition Services (DLADS) (section 102-36.105);

4. Amend regulations regarding reporting and providing personal property to non-Federal recipients;

5. Modify restrictions for non-functional FEA when using the abandonment/destruction authority;

6. Add new requirements regarding public notice when abandoning/destroying excess personal property;

7. Add the new undesignated section heading “Federal Electronic Assets (FEA)” and ten new sections thereunder that would address which assets are considered FEA; disposal of functional FEA; disposal of non-functional FEA; sanitizing of FEA; disposing of FEA in landfills or through incineration; guiding recipients of FEA to environmentally-preferable disposal; disposal of overseas excess FEA; reporting requirements for FEA; submitting annual report information; and dissemination of information after it is reported.

8. Revise the Disposal Condition Codes from the numeric 1, 4 and 7 to alpha codes N, U, and R respectively.

9. Redesignate sections 102-36.375 through 102-36.475 as sections 102-36.425 through 102-36.525.

10. Make minor edits and clarifications to existing policies.

B. Executive Orders 12866 and 13563

Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This proposed rule is not subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

C. Regulatory Flexibility Act

This proposed rule will not have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory ( printed page 12683) Flexibility Act, 5 U.S.C. 601, et seq. This proposed rule is also exempt from the Administrative Procedure Act per 5 U.S.C. 553(a)(2) because it applies to agency management, personnel, and public property. However, this proposed rule is being published to provide transparency in the promulgation of Federal policies.

D. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the proposed changes to the FMR do not impose information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

E. Small Business Regulatory Enforcement Fairness Act

This proposed rule is exempt from Congressional review under 5 U.S.C. 801 since it does not substantially affect the rights or obligations of non-agency parties.

For the reasons set forth in the preamble, GSA proposes to amend 41 CFR part 102-36 as set forth below:

1. The authority for part 102-36 continues to read as follows:

Authority: 40 U.S.C. 121(c).

2. Amend § 102-36.40 by—

a. Removing the definition “Cooperative”;

b. Removing from the definition “Cooperative agreement”, in paragraphs (2) and (3), the word “cooperative” and adding “cooperator” in its place; and

c. Adding, in alphabetical order, the definitions “Certified Recycler”, “Cooperator”, “Federal Electronic Asset (FEA)”, “Functional FEA”, “Non-Functional FEA”, and “Take-Back Programs” to read as follows:

3. Amend § 102-36.60, paragraph (a) by removing the word “cooperatives” and adding the word “cooperators” in its place.

4. Amend § 102-36.105, in the second sentence by removing “Defense Reutilization and Marketing Offices (DRMOs)” and adding “Defense Logistics Agency Disposition Services (DLADS)” in its place.

5. Amend § 102-36.150, in the first sentence by removing the word “cooperatives” and adding the word “cooperators” in its place.

6a. Remove the undesignated center heading “Cooperatives” which appears before § 102-36.180 and add the undesignated center heading “Cooperators” in its place.

6b. Amend § 102-36.180 by revising the section heading to read as follows:

7. Amend § 102-36.190, paragraph (c), by removing “ 40 U.S.C. 483(d)(2)(E)” and adding “40 U.S.C. 525(c)(2)(A)” in its place.

8. Amend § 102-36.220 by—

a. Removing from the second sentence of paragraph (a) the word “cooperatives” and adding the word “cooperators” in its place; and

b. Removing from paragraph (b)(3) “102-36.380” and adding “102-36.430” in its place.

9. Amend § 102-36.230, by removing from paragraph (a), “Property Management Division (FBP)” and adding “Office of Personal Property Management (QSC)” in its place.

10. Amend § 102-36.240 in the first column of the table by revising the numeric Disposal Condition Codes as follows:

a. Remove the number “1” and add the letter “N” in its place;

b. Remove the number “4” and add the letter “U” in its place; and

c. Remove the number “7” and add the letter “R” in its place.

11. Revise § 102-36.300 to read as follows:

12. Amend § 102-36.305 by removing the word “written”.

13. Amend § 102-36.310 by removing the words “written finding” and adding the word “determination” in its place.

14. Amend § 102-36.315 by adding paragraph (c) to read as follows:

15. Amend § 102-36.330 by—

a. Removing the word “or” at the end of paragraph (b); ( printed page 12684)

b. Removing from paragraph (c) “$500” and adding “$1000; or” in its place; and

c. Adding paragraph (d) to read as follows:

16. Redesignate §§ 102-36.375 through 102-36.475 as §§ 102-36.425 through 102-36.525 respectively. A table is provided below.

17. Add the undesignated center heading “Federal Electronic Assets (FEA)” and §§ 102-36.375 through 102-36.420 to read as follows:

Federal Electronic Assets (FEA)