August 14, 2024
How the EPA's New Label Program May Impact Lighting Manufacturers
The new "Buy Clean" label may add another hurdle for manufacturers to qualify for federal projects
The recent announcement by the U.S. Environmental Protection Agency (EPA) regarding a new “Buy Clean” label program aimed at promoting the use of cleaner construction materials will likely have significant implications for the broader construction industry, likely including sectors directly connected to lighting.
The EPA anticipates that the initial products, including steel, could be labeled under the new program by the end of fiscal year 2026, with the labeling process for additional products potentially taking less time as manufacturers complete necessary steps.
Overview of the EPA Label Program
The EPA’s Buy Clean label is designed to identify and promote the use of construction materials with lower embodied carbon—greenhouse gases emitted during the production, transportation, and disposal of materials. This program is supported by substantial funding through the Inflation Reduction Act of 2022, which allocated $100 million for the development and implementation of this label system.
The program’s primary focus is on materials such as steel, glass, concrete, and asphalt—key components in federal infrastructure projects. The goal is to drive market demand for cleaner alternatives by making it easier for federal purchasers and other stakeholders to select materials that align with the administration’s environmental objectives.
Possible Impact on the Lighting Industry
Although the program is not directly targeted at the lighting industry, manufacturers of lighting products that incorporate steel and glass components may feel the impact of these new regulations. Specifically, companies producing light fixtures with steel housings or outdoor lighting that utilizes steel poles must consider how these guidelines will possibly influence their operations.
Manufacturers of lighting fixtures that use steel or glass components may need to ensure that their materials meet the EPA's stringent criteria for low embodied carbon. This could involve a shift towards sourcing materials that are certified under the new labeling program. For instance, steel used in lighting poles or the housings of outdoor fixtures may need to be produced with lower carbon emissions to comply with federal procurement requirements. Two examples of the many requirements are:
- Global Warming Potential (GWP) Threshold: Steel products must have a GWP that is significantly below the industry average. For example, steel with a GWP of less than 1.5 kg CO2e per kg of steel produced might qualify under the "Best" tier of the EPA’s label program, pushing manufacturers to adopt more sustainable production methods to reduce emissions.
- Environmental Product Declaration (EPD) Requirements: Steel used in lighting fixtures must be accompanied by a third-party verified EPD that meets the EPA’s Product Category Rules (PCRs). This EPD must demonstrate that the steel has a GWP within the top 20% of lowest-emitting products in its category to qualify for federal procurement under the new labeling program.
Market Dynamics and Competitive Advantages
The push for lower embodied carbon materials is expected to create new competitive dynamics within the industry. Lighting manufacturers who can adapt quickly to the new requirements and offer products that meet the EPA’s criteria may find themselves at an advantage, particularly when bidding for federal contracts or projects that emphasize sustainability.
Moreover, the broader shift towards sustainable construction practices could lead to increased demand for innovative lighting solutions that minimize environmental impact. This may include the use of recycled steel, energy-efficient production processes, or the development of new materials that meet the EPA’s low carbon thresholds.
Challenges and Opportunities
While the new label program presents challenges, such as the need for compliance with rigorous standards and potential changes in supply chain logistics, it also offers opportunities for growth and innovation. Companies that invest in greener technologies and materials may not only comply with federal requirements but also position themselves as leaders in a market increasingly driven by sustainability.
As the EPA continues to refine its labeling criteria and expand the program, lighting manufacturers may need to stay informed and proactive in aligning their products with these evolving standards. This approach will be important in maintaining competitiveness in a market that is progressively shifting towards environmentally conscious practices.
