|SAME AS||SAME AS S08965|
|COSPNSR||Mosley, Jaffee, Dickens, Rodriguez, Ortiz, Gottfried, Abinanti, Glick, Stirpe, Barron, Fahy, Davila, Niou, Rosenthal L, Lentol, Epstein|
|Amd 165, St Fin L; amd 606, Tax L|
|Relates to state procurement policies relating to requiring low embodied carbon concrete be used in state projects and creating a preferential standard for concrete implementing CO2 capture and utilization technologies; establishes the environmental product declaration tax credit.|
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STATE OF NEW YORK ________________________________________________________________________ 8617--C 2019-2020 Regular Sessions IN ASSEMBLY October 2, 2019 ___________ Introduced by M. of A. CARROLL, MOSLEY, JAFFEE, DICKENS, RODRIGUEZ, ORTIZ, GOTTFRIED, ABINANTI, GLICK, STIRPE, BARRON, FAHY, DAVILA, NIOU, L. ROSENTHAL -- Multi-Sponsored by -- M. of A. COOK, SIMON -- read once and referred to the Committee on Governmental Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Governmental Operations in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Governmental Operations in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the state finance law and the tax law, in relation to implementing "The New York State Low Embodied Carbon Concrete Leader- ship Act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as "The New York 2 State Low Embodied Carbon Concrete Leadership Act". 3 § 2. Section 165 of the state finance law is amended by adding a new 4 subdivision 9 to read as follows: 5 9. Special provisions for purchase of concrete. 6 a. For the purposes of this section, the following terms shall have 7 the following meanings: 8 (i) "Concrete" shall mean structural and non-structural masonry, pre- 9 cast and ready-mix concrete building products. 10 (ii) "Concrete mix" shall mean a specific combination of components, 11 including water, cement, aggregate and other materials which are used to 12 produce concrete products. The structural properties of concrete mixes 13 vary by strength, durability, curing time and other performance charac- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13765-09-0A. 8617--C 2 1 teristics as a result of the defined proportions of their components and 2 the methods used in their production. 3 (iii) "Portland cement" shall mean hydraulic cement produced by 4 pulverizing clinkers in combination with one or more of the forms of 5 calcium sulfate. 6 (iv) "Embodied carbon emissions" shall mean carbon emissions generated 7 as a result of a material's production, including mining, refining, and 8 shipping. 9 (v)"Global warming potential" (GWP) shall mean a numeric value that 10 measures the total contribution to global warming from the emission of 11 greenhouse gases, or the elimination of greenhouse gas sinks, that 12 results from the production and/or utilization of a specific product or 13 service. 14 (vi) "Carbon dioxide equivalent" (CO2e) shall mean a measure used to 15 compare the emissions from various greenhouse gases based upon their 16 global warming potential. 17 (vii) "Low embodied carbon concrete" shall mean concrete that has been 18 verified to embody lower carbon emissions, as measured by a GWP metric, 19 compared to the baseline embodied carbon emissions of conventional 20 concrete made with portland cement. Low embodied carbon emissions can be 21 achieved through diverse methods and processes including, but not limit- 22 ed to: (A) higher energy efficiency at the level of the concrete and/or 23 cement plant; (B) low carbon fuel substitution at the level of the 24 concrete and/or cement plant; (C) local production resulting in reduced 25 emissions from transportation; (D) the reduction of clinker content in 26 the cement component of concrete, or the substitution of clinker content 27 with lower carbon-intensive alternative materials like supplementary 28 cementitious materials (SCMs) such as ground granulated blast furnace 29 slag, fly ash, and recycled ground-glass pozzolan; (E) the capture and 30 storage of point source CO2 emissions during the cement and concrete 31 production process; or (F) the utilization and mineralization of carbon 32 in concrete materials. 33 (viii) "Environmental product declaration" (EPD) shall mean product 34 specific Type III EPDs that conform to ISO Standard 14025 and enable the 35 numeric GWP and environmental impact comparisons between concrete mixes 36 fulfilling the same functions. 37 (ix) "Carbon capture, utilization and/or storage" (CCUS) shall mean 38 methods and technologies to remove CO2 from the flue gas and from the 39 atmosphere, followed by recycling the CO2 for utilization and/or deter- 40 mining safe and permanent storage options for captured CO2. 41 (x) "Concrete delivery miles" (CDM) shall mean the distance in miles 42 concrete mixer trucks travel from the production facility to the job 43 site plus return travel. 44 (xi) "Low embodied carbon discount rate" shall mean a rate, set by the 45 commissioner, applied to one or more of the bids for supply of concrete 46 and based on the GWP derived from certified EPD analysis of each bid 47 relative to all competitive bids. Estimated CO2e resulting from project 48 CDM shall be assessed in addition to GWP derived from EPD analysis and 49 factored into the discount rate. 50 (xii) "CCUS discount rate" shall mean a discount, set by the commis- 51 sioner, applied to one or more of the bids for supply of concrete and 52 based on CO2 capture and CO2 utilization methods employed by each 53 respective bid. 54 (xiii) "Net zero CO2 emissions" shall mean a state whereby the total 55 amount of CO2 utilized and/or captured during the concrete production 56 process and/or mineralized in concrete materials are equal to the amountA. 8617--C 3 1 of CO2 emissions released during the production and utilization of that 2 concrete. 3 (xiv) "Net negative CO2 emissions" shall mean a state whereby the 4 amount of CO2 utilized and/or captured during the concrete production 5 process and/or mineralized in concrete materials are greater than the 6 amount of CO2 emissions released during the production and utilization 7 of that concrete. 8 b. When letting contracts for the purchase of fifty cubic yards or 9 more of concrete on behalf of facilities, transportation authorities and 10 institutions of the state, solicitation specifications of the office of 11 general services and any other agency, department, office, board or 12 commission shall apply a low embodied carbon concrete price discount 13 rate to offerer bids for the purposes of bid assessment and selection. 14 Discount rates will be applied to offerer bid prices on the basis of the 15 GWP values for concrete products specified in offerer bids. GWP values 16 shall be submitted by offerers in the form of certified EPDs. In addi- 17 tion to GWP values quantified in EPD submissions, the effect of CDM and 18 the fuel usage/emissions factor thereof shall be considered. The CO2e 19 emissions quantified for CDM shall be incorporated into the GWP values 20 quantified in EPD. A price discount not exceeding five percent shall be 21 applied to top performing bids that certify the lowest GWP values via 22 EPD submission. The commissioner shall establish rules and guidelines 23 whereby specific price discount rates shall be determined and applied to 24 bids based on GWP performance. 25 c. For bids that have been certified by the commissioner to incorpo- 26 rate products and technologies that involve CCUS, the commissioner shall 27 establish a supplemental price discount rate to be applied in addition 28 to the low embodied carbon concrete discount rate defined in paragraph b 29 of this subdivision. Bids that receive price discounts based on GWP 30 performance and which incorporate certified CCUS products and technolo- 31 gies will be granted a supplemental price discount for bid assessment 32 and selection purposes that shall not exceed three percent. The CCUS 33 discount rate shall be added to the low embodied carbon discount rate 34 and applied to the base bid price. 35 d. For bid opportunities that include multiple concrete mixes the GWP 36 of all mixes will be proportionally weighted into a single GWP score 37 that will serve as the basis for assessment and selection. 38 e. For state-funded construction projects that will be completed by 39 private contracting firms that have been contracted by the state, and 40 for which concrete will be procured for the project, such contractors 41 shall comply with the selection standards and rules stipulated in this 42 paragraph when subcontracting services from concrete providers. Such 43 contractors shall report EPD documentation included in subcontract bids 44 that demonstrate compliance with the standards and rules. The commis- 45 sioner shall institute and issue guidelines pertaining to penalties for 46 non-compliance by such contractors. 47 f. The commissioner shall issue regulations for the implementation of 48 this subdivision, including but not limited to: (i) establishing guide- 49 lines that will assist agencies in determining which contracts meet the 50 requirements in paragraph b of this subdivision; (ii) publishing such 51 purchasing guidelines on the office of general services' website, 52 disseminating such guidelines to agencies and training contracting 53 personnel on implementing such guidelines; and (iii) providing for moni- 54 toring of implementation. 55 g. The commissioner shall complete and submit to the legislature an 56 annual cost-benefit analysis of the low embodied carbon concreteA. 8617--C 4 1 procurement standard, once implemented, in order to quantify the budget- 2 ary impact of the program relative to the latter's carbon reduction 3 impact. 4 § 3. Section 606 of the tax law is amended by adding a new subsection 5 (kkk) to read as follows: 6 (kkk) The environmental product declaration tax credit. (a) Defi- 7 nitions. For the purposes of this section: 8 (i) "low embodied carbon concrete" shall mean concrete that has been 9 verified by environmental product declaration to embody lower carbon 10 emissions, as measured by a Global Warming Potential (GWP) metric, 11 compared to the baseline embodied carbon emissions of conventional 12 concrete. 13 (ii) "environmental product declaration (EPD) analysis" shall mean 14 product specific Type III EPDs that conform to ISO Standard 14025 and 15 enable global warming potential (GWP) and environmental impact compar- 16 isons between products fulfilling the same functions. 17 (b) Allowance of credit. Producers of concrete, as well as the produc- 18 ers of the major concrete components, cement and aggregate, that are 19 taxpayers shall be allowed a credit, to be computed as provided in this 20 subsection, against the tax imposed by this article, to compensate for 21 financial burdens incurred as a result of EPD analyses undertaken to 22 determine the product-based embodied carbon emissions of one or multiple 23 concrete products produced at one or multiple plants that such taxpayer 24 owns and operates. 25 (c) Amount of credit. The credit authorized by this subsection shall 26 not exceed the lessor of: (i) the full costs incurred for an EPD analy- 27 sis of a single concrete, cement, supplementary cementitious materials, 28 and/or aggregate production facility; or (ii) three thousand dollars, 29 and may be claimed for the costs of completing EPD analyses at up to 30 eight facilities owned by the same producer in a single tax year by a 31 single taxpaying entity in tax years two thousand twenty-one and two 32 thousand twenty-two. Tax credit eligibility will expire at the end of 33 two thousand twenty-two. 34 (d) Application of credit. The credit allowed under this subsection 35 for any taxable year shall not reduce the tax due for such year to less 36 than the fixed dollar minimum amount prescribed in paragraph (d) of 37 subdivision one of section two hundred ten of this chapter. However, if 38 the amount of the credit allowed under this subsection for any taxable 39 year reduces the tax to such amount or if the taxpayer otherwise pays 40 tax based on the fixed dollar minimum amount, any amount of credit thus 41 not deductible in such taxable year shall be treated as an overpayment 42 of tax to be credited or refunded in accordance with the provisions of 43 section one thousand eighty-six of this chapter. Provided, however, the 44 provisions of subsection (c) of section one thousand eighty-eight of 45 this chapter notwithstanding, no interest shall be paid thereon. 46 § 4. This act shall take effect on the first of January next succeed- 47 ing the date on which it shall have become a law and shall apply to 48 taxable years commencing on and after such date. Effective immediately, 49 the addition, amendment and/or repeal of any rule or regulation neces- 50 sary for the implementation of this act on its effective date are 51 authorized to be made and completed on or before such effective date.