Bill Text: NY A08617 | 2019-2020 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Amended.html
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-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8617--A 2019-2020 Regular Sessions IN ASSEMBLY October 2, 2019 ___________ Introduced by M. of A. CARROLL, MOSLEY -- read once and referred to the Committee on Governmental Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee 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 and 9 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- 14 teristics as a result of the defined proportions of their components and 15 the methods used in their production. 16 (iii) "Embodied carbon emissions" shall mean carbon emissions gener- 17 ated as a result of a material's production, including mining, refining, 18 and shipping. 19 (iv) "Low embodied carbon concrete" shall mean concrete that has been 20 verified to embody lower carbon emissions, as measured by a Global Warm- 21 ing Potential (GWP) metric, compared to the baseline embodied carbon 22 emissions of conventional concrete made with Portland cement. Low EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13765-05-9A. 8617--A 2 1 embodied carbon emissions can be achieved through diverse methods and 2 processes including, but not limited to: (A) higher energy efficiency at 3 the level of the concrete and/or cement plant; (B) low carbon fuel 4 substitution at the level of the concrete and/or cement plant; (C) local 5 production resulting in reduced emissions from transportation; (D) the 6 reduction of clinker content in the cement component of concrete, or the 7 substitution of clinker content with lower carbon-intensive alternative 8 materials; (E) the capture and storage of point source CO2 emissions 9 during the cement and concrete production process; or (F) the utiliza- 10 tion and mineralization of carbon in concrete materials. 11 (v) "Environmental product declaration (EPD)" shall mean product 12 specific Type III EPDs that conform to ISO Standard 14025 and enable the 13 numeric GWP and environmental impact comparisons between concrete mixes 14 fulfilling the same functions. 15 (vi) "CO2 capture" shall mean methods that separate and capture carbon 16 dioxide from the air and/or industrial emissions point sources. 17 (vii) "CO2 utilization" shall mean a method of permanently mineraliz- 18 ing CO2 in products. 19 (viii) "Net zero CO2 emissions" shall mean a state whereby the total 20 amount of CO2 utilized and/or captured during the concrete production 21 process and/or mineralized in concrete materials are equal to the amount 22 of CO2 emissions released during the production and utilization of that 23 concrete. 24 (ix) "Net negative CO2 emissions" shall mean a state whereby the 25 amount of CO2 utilized and/or captured during the concrete production 26 process and/or mineralized in concrete materials are greater than the 27 amount of CO2 emissions released during the production and utilization 28 of that concrete. 29 b. When letting contracts for the purchase of concrete on behalf of 30 facilities, transportation authorities and institutions of the state, 31 solicitation specifications of the office of general services and any 32 other agency, department, office, board or commission shall require 33 provisions that mandate the incorporation of low embodied carbon emis- 34 sions selection standards that are governed by the GWP, quantified 35 through certified EPD analysis for each concrete mix proposed in bids by 36 offerers. For bid opportunities that include multiple concrete mixes the 37 GWP of all mixes will be aggregated into a single GWP score that will 38 serve as the basis of comparison and selection. Low embodied carbon 39 concrete mixes must meet or exceed engineering performance standards 40 approved by the state and must not result in cost escalation for 41 concrete procurement compared to the current market price of conven- 42 tional concrete. 43 c. For concrete technologies that involve the capture and/or utiliza- 44 tion and storage of carbon, and thus theoretically possess the potential 45 to attain net zero or net negative embodied CO2 emissions in a future 46 scenario, the state shall establish supplemental selection criteria 47 intended to accelerate the market entry of those technologies at pres- 48 ent, and incentivize technological innovation and commercialization of 49 new carbon utilization technologies in the future. Carbon capture and/or 50 utilization-based concrete mixes will be granted preferential selection 51 in competitive solicitations if such offerings: (i) match or exceed all 52 competing low embodied carbon alternatives offered in bids on the basis 53 of their GWP; (ii) match or exceed structural performance standards 54 specified by the state; and (iii) can be procured at costs no greater 55 than: (A) fifteen per cent of the current market price of conventional 56 concrete in the first three years of the procurement standard's imple-A. 8617--A 3 1 mentation; (B) ten per cent of the current market price during years 2 four through six of the procurement standard's implementation; and (C) 3 five per cent of the current market price starting in year seven of 4 implementation. To the maximum extent determined to be feasible by the 5 commissioner, analyses of cost impact will measure both material unit 6 costs as well as projected negative or positive cost impacts during 7 concrete transportation and construction, or through the increase or 8 displacement of other cost-bearing building materials as a result of 9 utilization. 10 d. The commissioner shall issue regulations for the implementation of 11 this subdivision, including but not limited to: (i) establishing guide- 12 lines that will assist agencies in determining which contracts meet the 13 requirements in paragraph b of this subdivision; (ii) publishing such 14 purchasing guidelines on the office of general services' website, 15 disseminating such guidelines to agencies and training contracting 16 personnel on implementing such guidelines; and (iii) providing for moni- 17 toring of implementation. 18 e. (i) With each offer, offerers incorporating low embodied carbon 19 emissions concrete shall submit product-specific GWP data derived from 20 an EPD analysis or comparable methodology. (ii) Any successful offerer 21 who fails to comply with the provisions of this subdivision, at the 22 discretion of such agency, board, office or commission, shall forfeit 23 the right to bid on contracts let under the provisions of this subdivi- 24 sion for a period of time to be determined by the commissioner. 25 § 3. Section 606 of the tax law is amended by adding a new subsection 26 (kkk) to read as follows: 27 (kkk) The environmental product declaration tax credit. (a) Defi- 28 nitions. For the purposes of this section: 29 (i) "low embodied carbon concrete" shall mean concrete that has been 30 verified by environmental product declaration to embody lower carbon 31 emissions, as measured by a Global Warming Potential (GWP) metric, 32 compared to the baseline embodied carbon emissions of conventional 33 concrete. 34 (ii) "environmental product declaration (EPD) analysis" shall mean 35 product specific Type III EPDs that conform to ISO Standard 14025 and 36 enable global warming potential (GWP) and environmental impact compar- 37 isons between products fulfilling the same functions. 38 (b) Allowance of credit. Producers of concrete, as well as the produc- 39 ers of the major concrete components, cement and aggregate, that are 40 taxpayers shall be allowed a credit, to be computed as provided in this 41 subsection, against the tax imposed by this article, to compensate for 42 financial burdens incurred as a result of EPD analyses undertaken to 43 determine the product-based embodied carbon emissions of one or multiple 44 concrete products produced at one or multiple plants that such taxpayer 45 owns and operates. 46 (c) Amount of credit. The credit authorized by this subsection shall 47 not exceed the full costs incurred for an EPD analysis of a single 48 concrete, cement and/or aggregate production facility, and may be 49 claimed for the costs of completing EPD analyses at up to eight facili- 50 ties owned by the same producer in a single tax year by a single taxpay- 51 ing entity in tax years two thousand twenty, two thousand twenty-one and 52 two thousand twenty-two. The credit authorized by this subsection shall 53 not exceed fifty percent of incurred costs for EPD analysis at up to 54 eight concrete, cement or aggregate facilities owned by the same produc- 55 er in a single tax year by a single taxpaying entity in tax years twoA. 8617--A 4 1 thousand twenty-three and two thousand twenty-four. Tax credit eligibil- 2 ity will expire at the end of two thousand twenty-four. 3 (d) Application of credit. The credit allowed under this subsection 4 for any taxable year shall not reduce the tax due for such year to less 5 than the fixed dollar minimum amount prescribed in paragraph (d) of 6 subdivision one of section two hundred ten of this article. However, if 7 the amount of the credit allowed under this subsection for any taxable 8 year reduces the tax to such amount or if the taxpayer otherwise pays 9 tax based on the fixed dollar minimum amount, any amount of credit thus 10 not deductible in such taxable year shall be treated as an overpayment 11 of tax to be credited or refunded in accordance with the provisions of 12 section one thousand eighty-six of this chapter. Provided, however, the 13 provisions of subsection (c) of section one thousand eighty-eight of 14 this chapter notwithstanding, no interest shall be paid thereon. 15 § 4. This act shall take effect on the first of January next succeed- 16 ing the date on which it shall have become a law and shall apply to 17 taxable years commencing on and after such date. Effective immediately, 18 the addition, amendment and/or repeal of any rule or regulation neces- 19 sary for the implementation of this act on its effective date are 20 authorized to be made and completed on or before such effective date.
