Bill Text: NY S08965 | 2019-2020 | General Assembly | Introduced
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 8-0)
Status: (Introduced - Dead) 2020-09-04 - REFERRED TO RULES [S08965 Detail]
Download: New_York-2019-S08965-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8965 IN SENATE September 4, 2020 ___________ Introduced by Sen. KAMINSKY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules 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- 14 teristics as a result of the defined proportions of their components and 15 the methods used in their production. 16 (iii) "Portland cement" shall mean hydraulic cement produced by 17 pulverizing clinkers in combination with one or more of the forms of 18 calcium sulfate. 19 (iv) "Embodied carbon emissions" shall mean carbon emissions generated 20 as a result of a material's production, including mining, refining, and 21 shipping. 22 (v)"Global warming potential" (GWP) shall mean a numeric value that 23 measures the total contribution to global warming from the emission of 24 greenhouse gases, or the elimination of greenhouse gas sinks, that 25 results from the production and/or utilization of a specific product or 26 service. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13765-10-0S. 8965 2 1 (vi) "Carbon dioxide equivalent" (CO2e) shall mean a measure used to 2 compare the emissions from various greenhouse gases based upon their 3 global warming potential. 4 (vii) "Low embodied carbon concrete" shall mean concrete that has been 5 verified to embody lower carbon emissions, as measured by a GWP metric, 6 compared to the baseline embodied carbon emissions of conventional 7 concrete made with portland cement. Low embodied carbon emissions can be 8 achieved through diverse methods and processes including, but not limit- 9 ed to: (A) higher energy efficiency at the level of the concrete and/or 10 cement plant; (B) low carbon fuel substitution at the level of the 11 concrete and/or cement plant; (C) local production resulting in reduced 12 emissions from transportation; (D) the reduction of clinker content in 13 the cement component of concrete, or the substitution of clinker content 14 with lower carbon-intensive alternative materials like supplementary 15 cementitious materials (SCMs) such as ground granulated blast furnace 16 slag, fly ash, and recycled ground-glass pozzolan; (E) the capture and 17 storage of point source CO2 emissions during the cement and concrete 18 production process; or (F) the utilization and mineralization of carbon 19 in concrete materials. 20 (viii) "Environmental product declaration" (EPD) shall mean product 21 specific Type III EPDs that conform to ISO Standard 14025 and enable the 22 numeric GWP and environmental impact comparisons between concrete mixes 23 fulfilling the same functions. 24 (ix) "Carbon capture, utilization and/or storage" (CCUS) shall mean 25 methods and technologies to remove CO2 from the flue gas and from the 26 atmosphere, followed by recycling the CO2 for utilization and/or deter- 27 mining safe and permanent storage options for captured CO2. 28 (x) "Concrete delivery miles" (CDM) shall mean the distance in miles 29 concrete mixer trucks travel from the production facility to the job 30 site plus return travel. 31 (xi) "Low embodied carbon discount rate" shall mean a rate, set by the 32 commissioner, applied to one or more of the bids for supply of concrete 33 and based on the GWP derived from certified EPD analysis of each bid 34 relative to all competitive bids. Estimated CO2e resulting from project 35 CDM shall be assessed in addition to GWP derived from EPD analysis and 36 factored into the discount rate. 37 (xii) "CCUS discount rate" shall mean a discount, set by the commis- 38 sioner, applied to one or more of the bids for supply of concrete and 39 based on CO2 capture and CO2 utilization methods employed by each 40 respective bid. 41 (xiii) "Net zero CO2 emissions" shall mean a state whereby the total 42 amount of CO2 utilized and/or captured during the concrete production 43 process and/or mineralized in concrete materials are equal to the amount 44 of CO2 emissions released during the production and utilization of that 45 concrete. 46 (xiv) "Net negative CO2 emissions" shall mean a state whereby the 47 amount of CO2 utilized and/or captured during the concrete production 48 process and/or mineralized in concrete materials are greater than the 49 amount of CO2 emissions released during the production and utilization 50 of that concrete. 51 b. When letting contracts for the purchase of fifty cubic yards or 52 more of concrete on behalf of facilities, transportation authorities and 53 institutions of the state, solicitation specifications of the office of 54 general services and any other agency, department, office, board or 55 commission shall apply a low embodied carbon concrete price discount 56 rate to offerer bids for the purposes of bid assessment and selection.S. 8965 3 1 Discount rates will be applied to offerer bid prices on the basis of the 2 GWP values for concrete products specified in offerer bids. GWP values 3 shall be submitted by offerers in the form of certified EPDs. In addi- 4 tion to GWP values quantified in EPD submissions, the effect of CDM and 5 the fuel usage/emissions factor thereof shall be considered. The CO2e 6 emissions quantified for CDM shall be incorporated into the GWP values 7 quantified in EPD. A price discount not exceeding five percent shall be 8 applied to top performing bids that certify the lowest GWP values via 9 EPD submission. The commissioner shall establish rules and guidelines 10 whereby specific price discount rates shall be determined and applied to 11 bids based on GWP performance. 12 c. For bids that have been certified by the commissioner to incorpo- 13 rate products and technologies that involve CCUS, the commissioner shall 14 establish a supplemental price discount rate to be applied in addition 15 to the low embodied carbon concrete discount rate defined in paragraph b 16 of this subdivision. Bids that receive price discounts based on GWP 17 performance and which incorporate certified CCUS products and technolo- 18 gies will be granted a supplemental price discount for bid assessment 19 and selection purposes that shall not exceed three percent. The CCUS 20 discount rate shall be added to the low embodied carbon discount rate 21 and applied to the base bid price. 22 d. For bid opportunities that include multiple concrete mixes the GWP 23 of all mixes will be proportionally weighted into a single GWP score 24 that will serve as the basis for assessment and selection. 25 e. For state-funded construction projects that will be completed by 26 private contracting firms that have been contracted by the state, and 27 for which concrete will be procured for the project, such contractors 28 shall comply with the selection standards and rules stipulated in this 29 paragraph when subcontracting services from concrete providers. Such 30 contractors shall report EPD documentation included in subcontract bids 31 that demonstrate compliance with the standards and rules. The commis- 32 sioner shall institute and issue guidelines pertaining to penalties for 33 non-compliance by such contractors. 34 f. The commissioner shall issue regulations for the implementation of 35 this subdivision, including but not limited to: (i) establishing guide- 36 lines that will assist agencies in determining which contracts meet the 37 requirements in paragraph b of this subdivision; (ii) publishing such 38 purchasing guidelines on the office of general services' website, 39 disseminating such guidelines to agencies and training contracting 40 personnel on implementing such guidelines; and (iii) providing for moni- 41 toring of implementation. 42 g. The commissioner shall complete and submit to the legislature an 43 annual cost-benefit analysis of the low embodied carbon concrete 44 procurement standard, once implemented, in order to quantify the budget- 45 ary impact of the program relative to the latter's carbon reduction 46 impact. 47 § 3. Section 606 of the tax law is amended by adding a new subsection 48 (kkk) to read as follows: 49 (kkk) The environmental product declaration tax credit. (a) Defi- 50 nitions. For the purposes of this section: 51 (i) "low embodied carbon concrete" shall mean concrete that has been 52 verified by environmental product declaration to embody lower carbon 53 emissions, as measured by a Global Warming Potential (GWP) metric, 54 compared to the baseline embodied carbon emissions of conventional 55 concrete.S. 8965 4 1 (ii) "environmental product declaration (EPD) analysis" shall mean 2 product specific Type III EPDs that conform to ISO Standard 14025 and 3 enable global warming potential (GWP) and environmental impact compar- 4 isons between products fulfilling the same functions. 5 (b) Allowance of credit. Producers of concrete, as well as the produc- 6 ers of the major concrete components, cement and aggregate, that are 7 taxpayers shall be allowed a credit, to be computed as provided in this 8 subsection, against the tax imposed by this article, to compensate for 9 financial burdens incurred as a result of EPD analyses undertaken to 10 determine the product-based embodied carbon emissions of one or multiple 11 concrete products produced at one or multiple plants that such taxpayer 12 owns and operates. 13 (c) Amount of credit. The credit authorized by this subsection shall 14 not exceed the lessor of: (i) the full costs incurred for an EPD analy- 15 sis of a single concrete, cement, supplementary cementitious materials, 16 and/or aggregate production facility; or (ii) three thousand dollars, 17 and may be claimed for the costs of completing EPD analyses at up to 18 eight facilities owned by the same producer in a single tax year by a 19 single taxpaying entity in tax years two thousand twenty-one and two 20 thousand twenty-two. Tax credit eligibility will expire at the end of 21 two thousand twenty-two. 22 (d) Application of credit. The credit allowed under this subsection 23 for any taxable year shall not reduce the tax due for such year to less 24 than the fixed dollar minimum amount prescribed in paragraph (d) of 25 subdivision one of section two hundred ten of this chapter. However, if 26 the amount of the credit allowed under this subsection for any taxable 27 year reduces the tax to such amount or if the taxpayer otherwise pays 28 tax based on the fixed dollar minimum amount, any amount of credit thus 29 not deductible in such taxable year shall be treated as an overpayment 30 of tax to be credited or refunded in accordance with the provisions of 31 section one thousand eighty-six of this chapter. Provided, however, the 32 provisions of subsection (c) of section one thousand eighty-eight of 33 this chapter notwithstanding, no interest shall be paid thereon. 34 § 4. This act shall take effect on the first of January next succeed- 35 ing the date on which it shall have become a law and shall apply to 36 taxable years commencing on and after such date. Effective immediately, 37 the addition, amendment and/or repeal of any rule or regulation neces- 38 sary for the implementation of this act on its effective date are 39 authorized to be made and completed on or before such effective date.
