Bill Text: NY A08617 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 20-0)

Status: (Introduced - Dead) 2020-07-01 - print number 8617c [A08617 Detail]

Download: New_York-2019-A08617-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8617

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                     October 2, 2019
                                       ___________

        Introduced  by M. of A. CARROLL -- read once and referred to the Commit-
          tee on Governmental Operations

        AN ACT to amend the state finance law,  in  relation  to  requiring  low
          embodied  carbon  concrete  be  used  in state projects and creating a
          preferential standard for concrete implementing CO2 capture and utili-
          zation technologies; and to amend the tax law, in relation  to  estab-
          lishing the environmental product declaration tax credit

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 165 of the state finance law is amended by adding a
     2  new subdivision 9 to read as follows:
     3    9. Special provisions for purchase of concrete.
     4    a. For the purposes of this section, the following  terms  shall  have
     5  the following meanings:
     6    (i)  "Concrete"  shall  mean structural and non-structural masonry and
     7  ready mix concrete building products.
     8    (ii) "Embodied carbon emissions" shall mean carbon emissions generated
     9  as a result of a material's production, including mining, refining,  and
    10  shipping.
    11    (iii) "Low embodied carbon concrete" shall mean concrete that has been
    12  verified to embody lower carbon emissions, as measured by a global warm-
    13  ing potential metric, compared to the baseline embodied carbon emissions
    14  of  conventional concrete made with Portland cement. Low embodied carbon
    15  emissions can be achieved through diverse methods and processes  includ-
    16  ing,  but  not  limited to: (A) higher energy efficiency at the level of
    17  the concrete and/or cement plant; (B) low carbon  fuel  substitution  at
    18  the  level  of  the  concrete  and/or cement plant; (C) the reduction of
    19  clinker content in the cement component of concrete, or the substitution
    20  of clinker content with lower  carbon-intensive  alternative  materials;
    21  (D)  the  capture  and  storage of point source CO2 emissions during the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13765-03-9
        A. 8617                             2

     1  cement and concrete production  process;  or  (E)  the  utilization  and
     2  mineralization of carbon in concrete materials.
     3    (iv)  "Environmental  product  declaration  (EPD)"  shall mean product
     4  specific Type III EPDs that conform to ISO  Standard  14025  and  enable
     5  global  warming  potential  and environmental impact comparisons between
     6  products fulfilling the same functions.
     7    (v) "CO2 capture" shall mean a capture method that separates  post-in-
     8  dustrial and/or direct air captured carbon dioxide from the air or emis-
     9  sion point sources.
    10    (vi) "CO2 utilization" shall mean a method of permanently mineralizing
    11  CO2 in products.
    12    (vii)  "Net  zero  CO2 emissions" shall mean a state whereby the total
    13  amount of CO2 utilized and/or captured during  the  concrete  production
    14  process and/or mineralized in concrete materials are equal to the amount
    15  of  CO2 emissions released during the production and utilization of that
    16  concrete.
    17    (viii) "Net negative CO2 emissions" shall mean  a  state  whereby  the
    18  amount  of  CO2  utilized and/or captured during the concrete production
    19  process and/or mineralized in concrete materials are  greater  than  the
    20  amount  of  CO2 emissions released during the production and utilization
    21  of that concrete.
    22    b. When letting contracts for the purchase of concrete  on  behalf  of
    23  facilities,  transportation  authorities  and institutions of the state,
    24  solicitation specifications of the office of general  services  and  any
    25  other  agency,  department,  office,  board  or commission shall require
    26  provisions that mandate the incorporation of low embodied  carbon  emis-
    27  sions  selection  standards that are governed by a review of the EPD for
    28  each product.   In addition to  meeting  targeted  CO2  reductions,  low
    29  embodied  carbon  concrete  must  meet or exceed engineering performance
    30  standards approved by the state and must not result in  cost  escalation
    31  for concrete procurement compared to the current market price of conven-
    32  tional concrete.
    33    c.  For  concrete  technologies  that  involve  the measurable capture
    34  and/or utilization and mineralization of carbon, and thus  theoretically
    35  possess  the  potential  to attain net zero or net negative embodied CO2
    36  emissions in a future scenario, the state shall  establish  supplemental
    37  selection  criteria intended to incentivize the technical innovation and
    38  accelerate the market entry of those technologies. Carbon capture and/or
    39  utilization-based offerings will be granted  preferential  selection  in
    40  competitive  solicitations  if  such  offerings: (i) match or exceed all
    41  competing low embodied carbon alternatives offered in bids on the  basis
    42  of  their global warming potential; and (ii) can be procured at costs no
    43  greater than: (A) fifteen per  cent  of  the  current  market  price  of
    44  conventional  concrete  in  the first year of the procurement standard's
    45  implementation; (B) ten per cent in the second year  of  implementation;
    46  and  (C) no greater than five per cent in the third and subsequent years
    47  of implementation. To the maximum extent determined to  be  feasible  by
    48  the  commissioner,  analyses  of  cost impact will measure both material
    49  unit costs as well as projected negative or positive cost impacts during
    50  concrete transportation and construction, or  through  the  increase  or
    51  displacement  of  other  cost-bearing  building materials as a result of
    52  utilization.
    53    d. The commissioner shall issue regulations for the implementation  of
    54  this  subdivision, including but not limited to: (i) establishing guide-
    55  lines that will assist agencies in determining which contracts meet  the
    56  requirements  in  paragraph  b of this subdivision; (ii) publishing such
        A. 8617                             3

     1  purchasing guidelines  on  the  office  of  general  services'  website,
     2  disseminating  such  guidelines  to  agencies  and  training contracting
     3  personnel on implementing such guidelines; and (iii) providing for moni-
     4  toring of implementation.
     5    e.  (i)  With  each  offer, offerers incorporating low embodied carbon
     6  emissions concrete shall submit product-specific global  warming  poten-
     7  tial  data  derived from an EPD analysis or comparable methodology. (ii)
     8  Any successful offerer who fails to comply with the provisions  of  this
     9  subdivision,  at the discretion of such agency, board, office or commis-
    10  sion, shall forfeit  the  right  to  bid  on  contracts  let  under  the
    11  provisions  of this subdivision for a period of time to be determined by
    12  the commissioner.
    13    § 2. Section 606 of the tax law is amended by adding a new  subsection
    14  (kkk) to read as follows:
    15    (kkk)  The  environmental  product  declaration  tax credit. (a) Defi-
    16  nitions. For the purposes of this section:
    17    (i) "low embodied carbon concrete" shall mean concrete that  has  been
    18  verified  by  environmental  product  declaration to embody lower carbon
    19  emissions, as measured by a global warming potential metric, compared to
    20  the baseline embodied carbon emissions of conventional concrete.
    21    (ii) "environmental product declaration analysis" shall  mean  product
    22  specific Type III environmental product declarations (EPDs) that conform
    23  to  ISO  Standard 14025 and enable global warming potential and environ-
    24  mental impact comparisons between products  fulfilling  the  same  func-
    25  tions.
    26    (b)  Allowance  of  credit.  A producer of concrete that is a taxpayer
    27  shall  be  allowed  a  credit,  to  be  computed  as  provided  in  this
    28  subsection,  against  the tax imposed by this article, to compensate for
    29  financial burdens incurred as a result of  EPD  analyses  undertaken  to
    30  determine the product-based embodied carbon emissions of one or multiple
    31  concrete  products produced at one or multiple plants that such taxpayer
    32  owns and operates.
    33    (c) Amount of credit. The credit authorized by this  subsection  shall
    34  not  exceed the costs  incurred for an EPD analysis of a single concrete
    35  and/or cement product, and may not be  claimed  for  the  costs  of  EPD
    36  attainment  for  multiple  concrete  products at up to eight plants in a
    37  single tax year by a single taxpaying entity in tax years  two  thousand
    38  twenty  and  two  thousand  twenty-one.  The  credit  authorized by this
    39  subsection shall not exceed fifty percent  of  incurred  costs  for  EPD
    40  attainment  for   multiple concrete products, at up to eight plants in a
    41  single tax year by a single taxpaying entity in tax  years two  thousand
    42  twenty-two  and  two  thousand twenty-three. Tax credit eligibility will
    43  expire at the end of two thousand twenty-three.
    44    (d) Application of credit. The credit allowed  under  this  subsection
    45  for  any taxable year shall not reduce the tax due for such year to less
    46  than the fixed dollar minimum amount prescribed in    paragraph  (d)  of
    47  subdivision  one of section two hundred ten of this article. However, if
    48  the amount of the credit allowed under this subsection for  any  taxable
    49  year  reduces  the  tax to such amount or if the taxpayer otherwise pays
    50  tax based on the fixed dollar minimum amount, any amount of credit  thus
    51  not  deductible  in such taxable year shall be treated as an overpayment
    52  of tax to be credited or refunded in accordance with the  provisions  of
    53  section  one thousand eighty-six of this chapter. Provided, however, the
    54  provisions of subsection (c) of section  one  thousand  eighty-eight  of
    55  this chapter notwithstanding, no interest shall be paid thereon.
        A. 8617                             4

     1    §  3. This act shall take effect on the first of January next succeed-
     2  ing the date on which it shall have become a  law  and  shall  apply  to
     3  taxable  years commencing on and after such date. Effective immediately,
     4  the addition, amendment and/or repeal of any rule or  regulation  neces-
     5  sary  for  the  implementation  of  this  act  on its effective date are
     6  authorized to be made and completed on or before such effective date.