ASA supports the Federal Bio-Based Products Preferred Procurement Program initiated in the 2002 Farm Bill to establish the preferred purchase of bio-based products across the entire federal government.

The 2002 Farm Bill was the first omnibus farm legislation to contain an energy title. This title was designed to promote the development of agriculture-based renewables by encouraging federal procurement of bio-based products, providing grants and loans for renewable energy projects, and funding vital research and development in bioenergy.

Section 9002 of the energy title, "Federal Procurement of Bio-Based Products," identifies three primary Congressional objectives. One objective is to improve demand for bio-based products in order to increase domestic demand for domestic agricultural commodities with more benign environmental impacts.

A second objective is to spur industrial development in rural communities through value-added agricultural processing and manufacturing. A third goal is to enhance the Nation’s energy security by substituting bio-based products for fossil fuel-based products. Section 9002 makes available $1.0 million per year in FY-2002/2007 for the Federal Bio-Based Products Preferred Procurement Program as authorized in the Farm Bill. It also requires Federal agencies to purchase bio-based products that meet price, availability, and performance standards, provides for a voluntary labeling program of certified "Bio-Based Products," and provides financial assistance for testing of biobased products by manufacturers.

USDA released the first of a series of rules defining the guidelines for designated federal procurement of bio-based products in January. This rule took effect on February 10. USDA plans to issue a series of proposed rules over the next three years that will designate specific items for program eligibility.