NY State Senate Bill S542A

Archive: Last Bill Status Via A2591 - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (14)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 22, 2021	signed chap.724
Dec 10, 2021	delivered to governor
Jun 08, 2021	returned to assembly passed senate 3rd reading cal.775 substituted for s542a
Jun 08, 2021	substituted by a2591a
May 24, 2021	amended on third reading (t) 542a
Apr 28, 2021	advanced to third reading
Apr 27, 2021	2nd report cal.
Apr 26, 2021	1st report cal.775
Apr 19, 2021	reported and committed to finance
Jan 25, 2021	committee discharged and committed to procurement and contracts
Jan 06, 2021	referred to finance

Votes

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Jun 8, 2021 - floor Vote

A2591A

floor

Aye

Nay

Absent

Excused

Abstained

Apr 27, 2021 - Finance committee Vote

S542

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Apr 19, 2021 - Procurement and Contracts committee Vote

S542

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Bill Amendments

Original

A (Active)

Original

A (Active)

Co-Sponsors

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S542 - Details

See Assembly Version of this Bill:: A2591
Law Section:: State Finance Law
Laws Affected:: Add §136-d, St Fin L
Versions Introduced in 2019-2020 Legislative Session:: A8617

S542 - Summary

Relates to provisions in state procurement contracts involving the use of low embodied carbon concrete.

S542 - Sponsor Memo

 
BILL NUMBER: S542

SPONSOR: KAMINSKY
 
TITLE OF BILL:

An act to amend the state finance law and the tax law, in relation to
implementing "The New York State Low Embodied Carbon Concrete Leadership
Act"

 
PURPOSE OR GENERAL IDEA OF BILL:

To establish a low embodied carbon procurement standard for concrete
used in public construction projects that will rapidly incentivize emis-
sions reductions throughout the concrete production process. The low
embodied carbon procurement standard will leverage the State's substan-
tial concrete purchasing power to catalyze low carbon alternative meth-
ods and products in the concrete and cement industries as a whole. The
standard would also establish New York as a leader in the emerging low
embodied carbon concrete sector, resulting in new economic activity and
job creation.

SUMMARY OF PROVISIONS:

Section 1 defines terms and explanations for a number of elements impor-
tant to the understanding of deploying carbon capture technology in
concrete production.

Section 2b requires that facilities, transportation authorities and
institutions of the state, solicitation specifications of the office of
general services and any other agency, department, office, board or
commission mandate provisions including the incorporation of low
embodied carbon emissions selection standards that are governed by the
Global Warming Potential (GWP) quantified through certified Environ-
mental Product Declaration (EPD) for each concrete mix proposed in bids
by offerers. For the purposes of bid assessment, scoring and selection,
a price discount will be applied to bids that are certified to have the
lowest GWP values. The maximum discount to be applied for the lowest GWP
bids will not exceed 5%.

Section 2c describes the application of supplemental price discounts for
bids that incorporate a low carbon concrete breakthrough as defined in
this act. The low carbon concrete breakthrough supplemental price
discount reflects the necessity for innovation in concrete products and
processes to fully decarbonize concrete and cement production by the
year 2050, given the inherent and substantial carbon intensity of
aspects of cement production that cannot be entirely mitigated through
technologies, methods, and products that are widely established in the
marketplace and in construction practice today.

Section 2d stipulates that the State will establish criteria for certi-
fying low carbon concrete breakthrough technologies, methods, and
products that are eligible for the low carbon concrete breakthrough
supplemental price discount. Furthermore, the state shall establish
rules and guidelines whereby specific price discount rates for bids
certified to use low carbon breakthrough technologies, methods and
products shall be determined and applied to bids based on GWP perform-
ance.


Section 2e stipulates that bid opportunities that include multiple
concrete mixes will aggregate the GWP into a single score that will
serve as the basis of comparison. Additionally, the concrete products
must meet or exceed all

Section 2f stipulates that the low carbon procurement standard rules
defined in Section 2b and 2c shall be complied with by private firms
contracted by the State to complete State-funded construction projects
that involve the utilization of concrete.

Section 2g states that the commissioner will issue, publicize and
disseminate regulations for implementation and guidelines for the evalu-
ation of contracts, and provide for monitoring of implementation.

Section 2h stipulates that the Commissioner will submit a report annual-
ly to the legislature analyzing the costs and benefits of the low
embodied carbon concrete procurement standard pertaining to fiscal
impact and the State's carbon reduction goals. The Commissioner will
also recommend any additional incentives or requirements that may be
necessary to help the state meet its emissions reduction goals of the
2019 Climate Leadership and Community Protection Act (CLCPA).

Section 3 amends section 606 of the tax law to establish a tax credit to
compensate for the costs incurred by concrete and concrete component
manufacturers to undertake Environmental Product Declaration (analysis)
at their manufacturing plants.

Section 3a defines terms and explanations for elements important to the
understanding of the EPD tax credit.

Section 3b states which types of commercial entities are eligible to
avail the EPD tax credit.

Section 3c states that i) the maximum tax credit amount that shall be
availed by commercial entities is the lessor of the full cost of EPD
analysis or $3,000; ii) the maximum number of plants that a single
commercial entity may be permitted to avail the tax credit for during a
given tax year is eight; and iii) that the tax credit may be availed for
EPD analysis procured during tax year 2021 and tax year 2022.

 
JUSTIFICATION:

More than 10 billion tons of concrete are produced globally each year,
making it the second-most used substance on earth after water. The
production of concrete's core ingredient cement accounts for up to 8% of
total global emissions. To bring the concrete and cement sectors in line
with the targets agreed upon in the Paris Agreement, annual emissions
must. fall by 16% by 2030. However, current trajectories project that
demand for both materials could increase by as much as 23% by 2050.Under
this business as usual scenario, production escalation on this scale
will release extraordinary levels of CO2 during the next three pivotal
decades.

Therefore reducing the embodied carbon of concrete - a measure of emis-
sions generated during the production process of materials before they
are utilized - is a critical front in the collective global effort to
preserve the climate. At the same time, concrete's unique potential to
permanently store and mineralize carbon must be unlocked and advanced
through both private and public sector commitments.  Indeed, deep
reductions in cement-based emissions paired with technological inno-
vations that maximize concrete's carbon storage potential could ulti-
mately result in carbon negativity to an outcome in which less carbon is
emitted in concrete production than is permanently secured in its utili-
zation or storage. Given the present-day volume of concrete utilized
annually and the rate of growth projected over the coming decades,
transforming concrete from a net carbon source to a net carbon sink
would have highly meaningful and quantifiable implications for the
climate.

The New York State Low Embodied Carbon Concrete Leadership Act proposes
a new procurement standard for public construction projects that would
place our state firmly in a leading position to bring about this transi-
tion. And this is a role that New York is exceptionally well positioned
to assume given the bold commitments established by the Climate Leader-
ship and Community Production Act of 2019, and the size and dynamism of
the state's economy and construction industries.

Indeed, the proposed bill would help advance the ambitious goals and
principles of the CLCPA, while expanding its reach to encompass a major
source of emissions currently left unaddressed. As a major purchaser of
concrete, a procurement standard of this kind would provide a powerful
market signal to concrete and cement manufacturers to pursue emissions
reductions throughout the concrete supply chain.  Further, because many
well-established emissions reduction measures that would be incentivized
by this policy are made at the manufacturing plant level, the State's
actions would have an immediate influence over the emissions profile of
concrete and cement supplied to the private sector at large.

The legislation's objectives align with the CLCPA's broad emissions
reduction targets, but also specifically with provisions related to the
15% of emissions reductions that will be achieved either through offsets
or by carbon dioxide removal (CDR) from the atmosphere.  Enhancing
concrete's capacity to utilize and permanently mineralize high levels of
carbon in its mass is the goal of several cutting-edge research initi-
atives and startup firms today, but in the future could represent a
scalable and standard feature of this incredibly common commodity. As a
promising medium for carbon storage, concrete would create a sink for
carbon sourced from capture and storage technologies at difficult to
decarbonize industrial facilities (such as cement), as well emerging
carbon removal technologies such as Direct Air Capture (DAC). The legis-
lation's competitive mechanism will continuously drive innovation in
this direction and includes a special provision that incentivizes the
adoption and utilization of carbon capture, utilization and/or storage
technology (CCUS).

While establishing the carbon emissions of concrete as a definitive
factor in the bid decision making process, the legislation would also
cap allowable price premiums for low embodied concrete, thus limiting
fiscal impact on the State of New York and its taxpayers.

Finally, to further incentivize participation by concrete manufacturers,
the legislation introduces a time limited tax credit for eligible local
firms. The credit would offset financial burdens incurred by manufactur-
ers in completing Environmental Product Declaration (EPD) analyses,
which are required for quantifying the embodied carbon emissions of
concrete products. Given that 1. the tax credit is scheduled to expire
in four years following program initiation; 2. EPD analyses are competi-
tively priced ($2,000 - $4,000 per plant on average); and 3. The limited
number of concrete manufacturing companies operating in the state, the
fiscal impact of the credit will be modest relative to the market impact
that it will catalyze.

 
PRIOR LEGISLATIVE HISTORY:

2020: S8965 died in Rules.

 
FISCAL IMPLICATIONS:

To be determined. The one-time environmental product declaration tax
credit would be made eligible for two tax years to fewer than two-hun-
dred concrete and concrete component manufacturing plants operating in
New York State, and would be capped at $3,000 per plant.  If fully
subscribed, the full fiscal impact of the tax credit would not exceed
$600,000 during the two-year eligibility period. However, given that
full subscription by 100 per cent of in-state eligible firms is highly
unlikely, this figure should be considered a maximum rather than proba-
ble fiscal impact.

The low carbon concrete price discount and the supplemental CCUS price
discount defined in Section 2b and Section 3b, respectively, are
projected to result in negligible fiscal impact or no fiscal impact at
all. The price discount mechanism is designed to create an incentive for
offerers that links competitiveness for state contracts to superior GWP
performance. It is not designed to perversely encourage offerers to
escalate bid pricing, nor does it entail the direct or indirect transfer
of payments, in such forms as rebates or tax credits, to offererers as
compensation for incorporating low carbon concrete into bid proposals.
Offerers, unaware of the prices proposed by other offerers, remain high-
ly incentivized to submit bids that are as price competitive as possi-
ble. Further, market analysis supports that many high impact, market
ready carbon reduction processes and products that would increase GWP
performance and therefore bid competitiveness - including many forms of
cement substitution and carbon utilization - are not strongly associated
with premium pricing. Thus offerers are incentivized to adopt low carbon
concrete processes and products that are market ready and cost compet-
itive in order to increase their competitiveness for state contracts
vis-a-vis other offerers. This is applied for assessment and scoring
purposes only, and does not entail the transfer of any direct financial
incentive to high GWP performing bidders. All bidders remain incentiv-
ized to submit bids that maximize cost competitiveness.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S542 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    542
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sen. KAMINSKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 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:
 
   Section  1.  This act shall be known and may be cited as "The New York
 State Low Embodied Carbon Concrete Leadership Act".
   § 2. Section 165 of the state finance law is amended by adding  a  new
 subdivision 9 to read as follows:
   9. SPECIAL PROVISIONS FOR PURCHASE OF CONCRETE.
   A.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (I) "CONCRETE" SHALL MEAN STRUCTURAL AND NON-STRUCTURAL MASONRY,  PRE-
 CAST AND READY-MIX CONCRETE BUILDING PRODUCTS.
   (II)  "CONCRETE  MIX" SHALL MEAN A SPECIFIC COMBINATION OF COMPONENTS,
 INCLUDING WATER, CEMENT, AGGREGATE AND OTHER MATERIALS WHICH ARE USED TO
 PRODUCE CONCRETE PRODUCTS. THE STRUCTURAL PROPERTIES OF  CONCRETE  MIXES
 VARY  BY STRENGTH, DURABILITY, CURING TIME AND OTHER PERFORMANCE CHARAC-
 TERISTICS AS A RESULT OF THE DEFINED PROPORTIONS OF THEIR COMPONENTS AND
 THE METHODS USED IN THEIR PRODUCTION.
   (III) "PORTLAND  CEMENT"  SHALL  MEAN  HYDRAULIC  CEMENT  PRODUCED  BY
 PULVERIZING  CLINKERS  IN  COMBINATION  WITH ONE OR MORE OF THE FORMS OF
 CALCIUM SULFATE.
   (IV) "EMBODIED CARBON EMISSIONS" SHALL MEAN CARBON EMISSIONS GENERATED
 AS A RESULT OF A MATERIAL'S PRODUCTION, INCLUDING MINING, REFINING,  AND
 SHIPPING.
   (V)  "GLOBAL  WARMING POTENTIAL" (GWP) SHALL MEAN A NUMERIC VALUE THAT
 MEASURES THE TOTAL CONTRIBUTION TO GLOBAL WARMING FROM THE  EMISSION  OF

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD01244-03-1

 S. 542                              2
 
 GREENHOUSE  GASES,  OR  THE  ELIMINATION  OF  GREENHOUSE GAS SINKS, THAT
 RESULTS FROM THE PRODUCTION AND/OR UTILIZATION OF A SPECIFIC PRODUCT  OR
 SERVICE.
   (VI)  "CARBON  DIOXIDE EQUIVALENT" (CO2E) SHALL MEAN A MEASURE USED TO
 COMPARE THE EMISSIONS FROM VARIOUS GREENHOUSE  GASES  BASED  UPON  THEIR
 GLOBAL WARMING POTENTIAL.
   (VII) "LOW EMBODIED CARBON CONCRETE" SHALL MEAN CONCRETE THAT HAS BEEN
 VERIFIED  TO EMBODY LOWER CARBON EMISSIONS, AS MEASURED BY A GWP METRIC,
 COMPARED TO THE  BASELINE  EMBODIED  CARBON  EMISSIONS  OF  CONVENTIONAL
 CONCRETE MADE WITH PORTLAND CEMENT. LOW EMBODIED CARBON EMISSIONS CAN BE
 ACHIEVED THROUGH DIVERSE METHODS AND PROCESSES INCLUDING, BUT NOT LIMIT-
 ED  TO: (A) HIGHER ENERGY EFFICIENCY AT THE LEVEL OF THE CONCRETE AND/OR
 CEMENT PLANT; (B) LOW CARBON FUEL  SUBSTITUTION  AT  THE  LEVEL  OF  THE
 CONCRETE  AND/OR CEMENT PLANT; (C) LOCAL PRODUCTION RESULTING IN REDUCED
 EMISSIONS FROM TRANSPORTATION; (D) THE REDUCTION OF CLINKER  CONTENT  IN
 THE CEMENT COMPONENT OF CONCRETE, OR THE SUBSTITUTION OF CLINKER CONTENT
 WITH  LOWER  CARBON-INTENSIVE  ALTERNATIVE  MATERIALS LIKE SUPPLEMENTARY
 CEMENTITIOUS MATERIALS (SCMS) SUCH AS GROUND  GRANULATED  BLAST  FURNACE
 SLAG,  FLY  ASH, AND RECYCLED GROUND-GLASS POZZOLAN; (E) THE CAPTURE AND
 STORAGE OF POINT SOURCE CO2 EMISSIONS DURING  THE  CEMENT  AND  CONCRETE
 PRODUCTION  PROCESS; OR (F) THE UTILIZATION AND MINERALIZATION OF CARBON
 IN CONCRETE MATERIALS.
   (VIII) "ENVIRONMENTAL PRODUCT DECLARATION" (EPD)  SHALL  MEAN  PRODUCT
 SPECIFIC TYPE III EPDS THAT CONFORM TO ISO STANDARD 14025 AND ENABLE THE
 NUMERIC  GWP AND ENVIRONMENTAL IMPACT COMPARISONS BETWEEN CONCRETE MIXES
 FULFILLING THE SAME FUNCTIONS.
   (IX) "CARBON CAPTURE, UTILIZATION AND/OR STORAGE"  (CCUS)  SHALL  MEAN
 METHODS  AND  TECHNOLOGIES  TO REMOVE CO2 FROM THE FLUE GAS AND FROM THE
 ATMOSPHERE, FOLLOWED BY RECYCLING THE CO2 FOR UTILIZATION AND/OR  DETER-
 MINING  SAFE AND PERMANENT STORAGE OPTIONS FOR CAPTURED CO2.
   (X)  "CONCRETE  DELIVERY MILES" (CDM) SHALL MEAN THE DISTANCE IN MILES
 CONCRETE MIXER TRUCKS TRAVEL FROM THE PRODUCTION  FACILITY  TO  THE  JOB
 SITE PLUS RETURN TRAVEL.
   (XI) "LOW EMBODIED CARBON DISCOUNT RATE" SHALL MEAN A RATE, SET BY THE
 COMMISSIONER,  APPLIED TO ONE OR MORE OF THE BIDS FOR SUPPLY OF CONCRETE
 AND BASED ON THE GWP DERIVED FROM CERTIFIED EPD  ANALYSIS  OF  EACH  BID
 RELATIVE  TO ALL COMPETITIVE BIDS. ESTIMATED CO2E RESULTING FROM PROJECT
 CDM SHALL BE ASSESSED IN ADDITION TO GWP DERIVED FROM EPD  ANALYSIS  AND
 FACTORED INTO THE DISCOUNT RATE.
   (XII) "LOW EMBODIED CARBON CONCRETE BREAKTHROUGH" SHALL MEAN ANY TECH-
 NOLOGY, METHOD, OR PRODUCT, INCLUDING BUT NOT LIMITED TO ONE THAT INCOR-
 PORATES  QUALIFIED  CARBON  CAPTURE  UTILIZATION  AND STORAGE, THAT ONCE
 FULLY COMMERCIALIZED AND IMPLEMENTED HAS THE POTENTIAL TO  SIGNIFICANTLY
 REDUCE THE GWP OF CONCRETE.
   (XIII) "LOW EMBODIED CARBON CONCRETE BREAKTHROUGH DISCOUNT RATE" SHALL
 MEAN  A DISCOUNT, SET BY THE COMMISSIONER, APPLIED TO ONE OR MORE OF THE
 BIDS FOR SUPPLY OF CONCRETE AND BASED ON THE INCORPORATION OF  QUALIFIED
 LOW EMBODIED CARBON CONCRETE BREAKTHROUGHS.
   (XIV)  "NET  ZERO  CO2 EMISSIONS" SHALL MEAN A STATE WHEREBY THE TOTAL
 AMOUNT OF CO2 UTILIZED AND/OR CAPTURED DURING  THE  CONCRETE  PRODUCTION
 PROCESS AND/OR MINERALIZED IN CONCRETE MATERIALS ARE EQUAL TO THE AMOUNT
 OF  CO2 EMISSIONS RELEASED DURING THE PRODUCTION AND UTILIZATION OF THAT
 CONCRETE.
   (XV) "NET NEGATIVE CO2 EMISSIONS"  SHALL  MEAN  A  STATE  WHEREBY  THE
 AMOUNT  OF  CO2  UTILIZED AND/OR CAPTURED DURING THE CONCRETE PRODUCTION
 PROCESS AND/OR MINERALIZED IN CONCRETE MATERIALS ARE  GREATER  THAN  THE

 S. 542                              3
 
 AMOUNT  OF  CO2 EMISSIONS RELEASED DURING THE PRODUCTION AND UTILIZATION
 OF THAT CONCRETE.
   B.  WHEN  LETTING  CONTRACTS  FOR THE PURCHASE OF FIFTY CUBIC YARDS OR
 MORE OF CONCRETE ON BEHALF OF FACILITIES, TRANSPORTATION AUTHORITIES AND
 INSTITUTIONS OF THE STATE, SOLICITATION SPECIFICATIONS OF THE OFFICE  OF
 GENERAL  SERVICES  AND  ANY  OTHER  AGENCY, DEPARTMENT, OFFICE, BOARD OR
 COMMISSION SHALL APPLY A LOW EMBODIED  CARBON  CONCRETE  PRICE  DISCOUNT
 RATE  TO  OFFERER BIDS FOR THE PURPOSES OF BID ASSESSMENT AND SELECTION.
 DISCOUNT RATES WILL BE APPLIED TO OFFERER BID PRICES ON THE BASIS OF THE
 GWP VALUES FOR CONCRETE PRODUCTS SPECIFIED IN OFFERER BIDS.  GWP  VALUES
 SHALL  BE  SUBMITTED BY OFFERERS IN THE FORM OF CERTIFIED EPDS. IN ADDI-
 TION TO GWP VALUES QUANTIFIED IN EPD SUBMISSIONS, THE EFFECT OF CDM  AND
 THE  FUEL  USAGE/EMISSIONS FACTOR THEREOF SHALL BE CONSIDERED.  THE CO2E
 EMISSIONS QUANTIFIED FOR CDM SHALL BE INCORPORATED INTO THE  GWP  VALUES
 QUANTIFIED  IN EPD. A PRICE DISCOUNT NOT EXCEEDING FIVE PERCENT SHALL BE
 APPLIED TO TOP PERFORMING BIDS THAT CERTIFY THE LOWEST  GWP  VALUES  VIA
 EPD  SUBMISSION.  THE  COMMISSIONER SHALL ESTABLISH RULES AND GUIDELINES
 WHEREBY SPECIFIC PRICE DISCOUNT RATES SHALL BE DETERMINED AND APPLIED TO
 BIDS BASED ON GWP PERFORMANCE.
   C. FOR BIDS THAT HAVE BEEN CERTIFIED BY THE COMMISSIONER  TO  INCORPO-
 RATE  LOW  EMBODIED  CARBON CONCRETE BREAKTHROUGH PRODUCTS AND TECHNOLO-
 GIES, THE COMMISSIONER SHALL ESTABLISH  A  SUPPLEMENTAL  PRICE  DISCOUNT
 RATE  TO  BE  APPLIED  IN  ADDITION  TO THE LOW EMBODIED CARBON CONCRETE
 DISCOUNT RATE DEFINED IN PARAGRAPH B  OF  THIS  SUBDIVISION.  BIDS  THAT
 RECEIVE  PRICE  DISCOUNTS BASED ON GWP PERFORMANCE AND WHICH INCORPORATE
 QUALIFIED LOW EMBODIED CARBON CONCRETE BREAKTHROUGH PRODUCTS  AND  TECH-
 NOLOGIES  WILL  BE GRANTED A SUPPLEMENTAL PRICE DISCOUNT FOR BID ASSESS-
 MENT AND SELECTION PURPOSES THAT SHALL NOT EXCEED THREE  PERCENT.    THE
 LOW  EMBODIED  CARBON CONCRETE BREAKTHROUGH DISCOUNT RATE SHALL BE ADDED
 TO THE LOW EMBODIED CARBON DISCOUNT RATE AND APPLIED  TO  THE  BASE  BID
 PRICE.
   D.  THE  NEW  YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY IS
 DIRECTED TO ESTABLISH CRITERIA FOR QUALIFYING A TECHNOLOGY,  METHOD,  OR
 PRODUCT  AS  A LOW EMBODIED CARBON CONCRETE BREAKTHROUGH, INCLUDING: (I)
 THE MINIMUM THRESHOLD FOR WHAT CONSTITUTES A  SIGNIFICANT  CONCRETE  GWP
 REDUCTION,  RELATIVE  TO  NET EMISSIONS REDUCTION TARGETS ESTABLISHED IN
 CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN;  AND  (II)
 APPROPRIATE  STAGE  OF MARKET ADOPTION AND PENETRATION. THE COMMISSIONER
 SHALL EVALUATE POTENTIAL NEW LOW CARBON CONCRETE BREAKTHROUGH  TECHNOLO-
 GIES,  METHODS,  AND PRODUCTS AND MAINTAIN AN ANNUALLY UPDATED DIRECTORY
 OF QUALIFIED LOW EMBODIED  CARBON  CONCRETE  BREAKTHROUGH  TECHNOLOGIES,
 METHODS, AND PRODUCTS.
   E.  FOR BID OPPORTUNITIES THAT INCLUDE MULTIPLE CONCRETE MIXES THE GWP
 OF ALL MIXES WILL BE PROPORTIONALLY WEIGHTED INTO  A  SINGLE  GWP  SCORE
 THAT WILL SERVE AS THE BASIS FOR ASSESSMENT AND SELECTION.
   F.  FOR  STATE-FUNDED  CONSTRUCTION PROJECTS THAT WILL BE COMPLETED BY
 PRIVATE CONTRACTING FIRMS THAT HAVE BEEN CONTRACTED BY  THE  STATE,  AND
 FOR  WHICH  CONCRETE  WILL BE PROCURED FOR THE PROJECT, SUCH CONTRACTORS
 SHALL COMPLY WITH THE SELECTION STANDARDS AND RULES STIPULATED  IN  THIS
 PARAGRAPH  WHEN  SUBCONTRACTING  SERVICES  FROM CONCRETE PROVIDERS. SUCH
 CONTRACTORS SHALL REPORT EPD DOCUMENTATION INCLUDED IN SUBCONTRACT  BIDS
 THAT  DEMONSTRATE  COMPLIANCE  WITH THE STANDARDS AND RULES. THE COMMIS-
 SIONER SHALL INSTITUTE AND ISSUE GUIDELINES PERTAINING TO PENALTIES  FOR
 NON-COMPLIANCE BY SUCH CONTRACTORS.
   G.  THE COMMISSIONER SHALL ISSUE REGULATIONS FOR THE IMPLEMENTATION OF
 THIS SUBDIVISION, INCLUDING BUT NOT LIMITED TO: (I) ESTABLISHING  GUIDE-

 S. 542                              4
 
 LINES  THAT WILL ASSIST AGENCIES IN DETERMINING WHICH CONTRACTS MEET THE
 REQUIREMENTS IN PARAGRAPH B OF THIS SUBDIVISION;  (II)  PUBLISHING  SUCH
 PURCHASING  GUIDELINES  ON  THE  OFFICE  OF  GENERAL  SERVICES' WEBSITE,
 DISSEMINATING  SUCH  GUIDELINES  TO  AGENCIES  AND  TRAINING CONTRACTING
 PERSONNEL ON IMPLEMENTING SUCH GUIDELINES; AND (III) PROVIDING FOR MONI-
 TORING OF IMPLEMENTATION.
   H. THE COMMISSIONER SHALL COMPLETE AND SUBMIT TO  THE  LEGISLATURE  AN
 ANNUAL  COST-BENEFIT  ANALYSIS  OF  THE  LOW  EMBODIED  CARBON  CONCRETE
 PROCUREMENT STANDARD, IN ORDER TO QUANTIFY THE BUDGETARY IMPACT  OF  THE
 PROGRAM  RELATIVE  TO THE LATTER'S CARBON REDUCTION IMPACT AND RECOMMEND
 ANY ADDITIONAL INCENTIVES OR REQUIREMENTS THAT MAY BE NECESSARY TO  HELP
 THE STATE MEET ITS CLEAN ENERGY GOALS ESTABLISHED IN CHAPTER ONE HUNDRED
 SIX OF THE LAWS OF TWO THOUSAND NINETEEN.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (kkk) to read as follows:
   (KKK) THE ENVIRONMENTAL PRODUCT  DECLARATION  TAX  CREDIT.  (A)  DEFI-
 NITIONS. FOR THE PURPOSES OF THIS SECTION:
   (I)  "LOW  EMBODIED CARBON CONCRETE" SHALL MEAN CONCRETE THAT HAS BEEN
 VERIFIED BY ENVIRONMENTAL PRODUCT DECLARATION  TO  EMBODY  LOWER  CARBON
 EMISSIONS,  AS  MEASURED  BY  A  GLOBAL  WARMING POTENTIAL (GWP) METRIC,
 COMPARED TO THE  BASELINE  EMBODIED  CARBON  EMISSIONS  OF  CONVENTIONAL
 CONCRETE.
   (II)  "ENVIRONMENTAL  PRODUCT  DECLARATION  (EPD) ANALYSIS" SHALL MEAN
 PRODUCT SPECIFIC TYPE III EPDS THAT CONFORM TO ISO  STANDARD  14025  AND
 ENABLE  GLOBAL  WARMING POTENTIAL (GWP) AND ENVIRONMENTAL IMPACT COMPAR-
 ISONS BETWEEN PRODUCTS FULFILLING THE SAME FUNCTIONS.
   (B) ALLOWANCE OF CREDIT. PRODUCERS OF CONCRETE, AS WELL AS THE PRODUC-
 ERS OF THE MAJOR CONCRETE COMPONENTS, CEMENT  AND  AGGREGATE,  THAT  ARE
 TAXPAYERS  SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS
 SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, TO  COMPENSATE  FOR
 FINANCIAL  BURDENS  INCURRED  AS  A RESULT OF EPD ANALYSES UNDERTAKEN TO
 DETERMINE THE PRODUCT-BASED EMBODIED CARBON EMISSIONS OF ONE OR MULTIPLE
 CONCRETE PRODUCTS PRODUCED AT ONE OR MULTIPLE PLANTS THAT SUCH  TAXPAYER
 OWNS AND OPERATES.
   (C)  AMOUNT  OF CREDIT. THE CREDIT AUTHORIZED BY THIS SUBSECTION SHALL
 NOT EXCEED THE LESSOR OF: (I) THE FULL COSTS INCURRED FOR AN EPD  ANALY-
 SIS  OF A SINGLE CONCRETE, CEMENT, SUPPLEMENTARY CEMENTITIOUS MATERIALS,
 AND/OR AGGREGATE PRODUCTION FACILITY; OR (II)  THREE  THOUSAND  DOLLARS,
 AND  MAY  BE  CLAIMED  FOR THE COSTS OF COMPLETING EPD ANALYSES AT UP TO
 EIGHT FACILITIES OWNED BY THE SAME PRODUCER IN A SINGLE TAX  YEAR  BY  A
 SINGLE  TAXPAYING  ENTITY  IN  TAX YEARS TWO THOUSAND TWENTY-TWO AND TWO
 THOUSAND TWENTY-THREE.  TAX CREDIT ELIGIBILITY WILL EXPIRE AT THE END OF
 TWO THOUSAND TWENTY-THREE.
   (D) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
 FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
 THAN THE FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN    PARAGRAPH  (D)  OF
 SUBDIVISION  ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER. HOWEVER, IF
 THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY  TAXABLE
 YEAR  REDUCES  THE  TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS
 TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT  THUS
 NOT  DEDUCTIBLE  IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT
 OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE  PROVISIONS  OF
 SECTION  ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE
 PROVISIONS OF SUBSECTION (C) OF SECTION  ONE  THOUSAND  EIGHTY-EIGHT  OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.

 S. 542                              5

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

Co-Sponsors

view additional co-sponsors

S542A (ACTIVE) - Details

See Assembly Version of this Bill:: A2591
Law Section:: State Finance Law
Laws Affected:: Add §136-d, St Fin L
Versions Introduced in 2019-2020 Legislative Session:: A8617

S542A (ACTIVE) - Summary

Relates to provisions in state procurement contracts involving the use of low embodied carbon concrete.

S542A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S542A

SPONSOR: KAMINSKY
 
TITLE OF BILL:

An act to amend the state finance law, in relation to provisions in
state procurement contracts involving the use of low embodied carbon
concrete

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish procurement guidelines for the procurement of
low embodied carbon concrete.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill requires the Office of General Services to estab-
lish guidelines concerning the procurement of low embodied carbon
concrete. Contractors doing this type of work would then need to follow
these guidelines and certify that their work and the concrete they are
procuring meets these minimum guidelines. The bill outlines what the
office will need to examine when crafting the guidelines including

incentives for the procurement and usage of low embodied carbon concrete
by contractors. The bill requires the guidance and any associated legis-
lative recommendations to be issued to the governor and the legislature.

Section 2 of the bill is the effective date.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:

The bill now requires the issuance of procurement guidelines by the
Office of General Services. The tax credit associated with the bill has
been removed.

 
JUSTIFICATION:

More than 10 billion tons of concrete are produced globally each year,
making it the second-most used substance on earth after water. The
production of concrete's core ingredient cement accounts for up to 8% of
total global emissions. To bring the concrete and cement sectors in line
with the targets agreed upon in the Paris Agreement, annual emissions
must fall by 16% by 2030. However, current trajectories project that
demand for both materials could increase by as much as 23% by 2050.
Under this business as usual scenario, production escalation on this
scale will release extraordinary levels of CO2 during the next three
pivotal decades.

Therefore reducing the embodied carbon of concrete - a measure of emis-
sions generated during the production process of materials before they
are utilized - is a critical front in the collective global effort to
preserve the climate. At the same time, concrete's unique potential to
permanently store and mineralize carbon must be unlocked and advanced
through both private and public sector commitments.  Indeed, deep
reductions in cement-based emissions paired with technological inno-
vations that maximize concrete's carbon storage potential could ulti-
mately result in carbon negativity to an outcome in which less carbon is
emitted in concrete production than is permanently secured in its utili-
zation or storage. Given the present-day volume of concrete utilized
annually and the rate of growth projected over the coming decades,
transforming concrete from a net carbon source to a net carbon sink
would have highly meaningful and quantifiable implications for the
climate.

This bill proposes a new procurement standard for construction projects
that would place our state firmly in a leading position to bring about
this transition. And this is a role that New York is exceptionally well
positioned to assume given the bold commitments established by the
Climate Leadership and Community Production Act of 2019, and the size
and dynamism of the state's economy and construction industries.

 
PRIOR LEGISLATIVE HISTORY:

2020: S8965 died in Rules.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law and shall apply to any state contracting oppor-
tunities advertised on or after such date and shall exclude contracts
for which an invitation for bid, request for proposal, or similar solic-
itation has been issued prior to the effective date of this act.

S542A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  542--A
     Cal. No. 775
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sens.  KAMINSKY,  BENJAMIN,  BIAGGI, GOUNARDES, HOYLMAN,
   KAVANAGH, KRUEGER, MYRIE, RAMOS, REICHLIN-MELNICK, SALAZAR,  SEPULVEDA
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Finance -- committee discharged and said bill commit-
   ted  to the Committee on Procurement and Contracts -- reported favora-
   bly from said committee and committed to the Committee on  Finance  --
   reported  favorably  from  said committee, ordered to first and second
   report, ordered to a third reading,  amended  and  ordered  reprinted,
   retaining its place in the order of third reading
 
 AN  ACT  to  amend  the  state finance law, in relation to provisions in
   state procurement contracts involving the use of low  embodied  carbon
   concrete
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  The state finance law is amended by adding a  new  section
 136-d to read as follows:
   §  136-D.  CONTRACTS  INVOLVING  LOW  EMBODIED CARBON CONCRETE. 1. ANY
 STATE AGENCY CONTRACT FOR LOW EMBODIED  CARBON  CONCRETE  SHALL  INCLUDE
 PROVISIONS   REGARDING  CONTRACTOR,  SUBCONTRACTOR  AND  WORKER  PRODUCT
 CERTIFICATION AS FOLLOWS:
   (A) CONTRACTORS AND SUBCONTRACTORS DOING WORK INVOLVING  LOW  EMBODIED
 CARBON  CONCRETE SHALL CERTIFY THAT ALL WORK COMPLETED MEETS THE MINIMUM
 STANDARDS ESTABLISHED UNDER  THIS  SECTION  BY  THE  OFFICE  OF  GENERAL
 SERVICES.
   (B)  CONTRACTORS  AND SUBCONTRACTORS DOING WORK INVOLVING LOW EMBODIED
 CONCRETE SHALL CERTIFY THAT ALL PROCURED LOW  EMBODIED  CARBON  CONCRETE
 UTILIZED  ON PROJECTS MEETS THE MINIMUM STANDARDS ESTABLISHED UNDER THIS
 SECTION BY THE OFFICE OF GENERAL SERVICES.
   2. ANY CERTIFICATIONS REQUIRED BY THIS SECTION SHALL BE  KEPT  CURRENT
 FOR THE DURATION OF ALL CONTRACTS.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01244-19-1

 S. 542--A                           2
 
   3.  (A)  THE  OFFICE  OF  GENERAL  SERVICES SHALL ESTABLISH GUIDELINES
 REQUIRING THE PROCUREMENT OF LOW EMBODIED CARBON  CONCRETE  ON  PROJECTS
 DEEMED  APPROPRIATE  BY SUCH OFFICE.   SUCH GUIDELINES SHALL IMPLEMENT A
 PROCESS WITH MINIMUM STANDARDS FOR  CONTRACTORS  AND  SUBCONTRACTORS  TO
 FILE  WITH  THE  CONTRACTING  AGENCY  UPON COMPLETION OF A PROJECT. WHEN
 ESTABLISHING GUIDELINES RELATED TO LOW  EMBODIED  CARBON  CONCRETE,  THE
 OFFICE  OF  GENERAL SERVICES SHALL CONSIDER INDUSTRY STANDARDS AND SHALL
 CONSULT WITH A STAKEHOLDER ADVISORY GROUP SELECTED BY  THE  COMMISSIONER
 OF GENERAL SERVICES CONSISTING OF:
   (I) TWO LICENSED PROFESSIONAL ENGINEERS;
   (II) TWO LICENSED REGISTERED ARCHITECTS;
   (III) TWO REPRESENTATIVES OF THE CONSTRUCTION INDUSTRY;
   (IV) TWO REPRESENTATIVES OF THE CONCRETE TESTING AND VALIDATION INDUS-
 TRY;
   (V) TWO REPRESENTATIVES OF AN ACCREDITED SCHOOL OF CIVIL ENGINEERING;
   (VI)  ONE  REPRESENTATIVE  FROM THE NEW YORK STATE ENERGY RESEARCH AND
 DEVELOPMENT AUTHORITY; AND
   (VII) ONE REPRESENTATIVE EACH FROM THE DEPARTMENT  OF  TRANSPORTATION,
 THE  DEPARTMENT  OF STATE, AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVA-
 TION.
   (B) THE OFFICE OF GENERAL SERVICES SHALL  CONSULT  WITH  ANY  RELEVANT
 ASSOCIATIONS    THAT  SET  INDUSTRY STANDARDS FOR THE PROCUREMENT OF LOW
 EMBODIED CARBON CONCRETE  AND SHALL CONSULT  WITH  AFFECTED  CONTRACTORS
 AND  SUBCONTRACTORS  TO  CONSIDER  ENVIRONMENTAL  IMPACT  AS WELL AS THE
 IMPACT ON PUBLIC HEALTH AND SAFETY.
   4. THE OFFICE OF GENERAL SERVICES SHALL ALSO EXAMINE THE USE OF INCEN-
 TIVES, INCLUDING BID CREDITS, RELATED TO BIDS WITHIN FIVE PERCENT OF THE
 LOWEST PRICE,  TO ENCOURAGE THE USAGE AND  INNOVATION  OF  LOW  EMBODIED
 CARBON CONCRETE ON STATE AGENCY PROJECTS.
   5.  IN ADDITION, THE OFFICE OF GENERAL SERVICES SHALL ALSO EXAMINE THE
 USE OF  IMPLEMENTING  STANDARDS  FOR  PERFORMANCE  BASED  SPECIFICATION,
 INCLUDING  BUT  NOT  LIMITED  TO REQUIREMENTS THAT A STRUCTURAL MATERIAL
 ACHIEVE SPECIFIED PERFORMANCE BASED OUTCOMES FROM THE USE OF THE  STRUC-
 TURAL  MATERIAL,  INCLUDING  BUT  NOT  LIMITED  TO,  OUTCOMES RELATED TO
 STRENGTH, DURABILITY, PERMEABILITY OR OTHER ATTRIBUTES  RELATED  TO  THE
 FUNCTION  OF  THE  BUILDING  MATERIAL  FOR  APPLIED  USES, AS OPPOSED TO
 REQUIRING THAT A STRUCTURAL  MATERIAL  BE  PRODUCED  USING  A  SPECIFIED
 MANUFACTURER  PROCESS,  DESIGN  FEATURES, TECHNOLOGIES, OR PROPORTION OF
 MATERIALS.  THE OFFICE OF GENERAL SERVICES  SHALL  EXAMINE  THE  USE  OF
 METHODS  OF  COMPLIANCE,  INCLUDING,  BUT NOT LIMITED TO, MAXIMUM CEMENT
 CONTENT SPECIFICATIONS AND SPECIFICATIONS BASED ON MAXIMUM POTENTIAL FOR
 GLOBAL WARMING.
   6. THE COMMISSIONER OF GENERAL  SERVICES,  IN  CONSULTATION  WITH  THE
 DEPARTMENT  OF  TRANSPORTATION AND THE STAKEHOLDER ADVISORY GROUP ESTAB-
 LISHED IN SUBDIVISION THREE OF THIS SECTION, SHALL EXAMINE THE USE OF AN
 EXPEDITED PRODUCT EVALUATION PROTOCOL FOR LOW EMBODIED  CARBON  CONCRETE
 PRODUCTS.
   7.  AS  USED  IN  THIS SECTION, THE TERM "STATE AGENCY" SHALL MEAN THE
 SAME AS DEFINED IN SECTION ONE HUNDRED SIXTY OF THIS CHAPTER.
   8. THE GUIDELINES ESTABLISHED PURSUANT TO THIS SECTION AS WELL AS  ANY
 RECOMMENDATIONS FOR SUBSEQUENT LEGISLATIVE ACTION RESULTING FROM EXAMIN-
 ING  THE  USE OF INCENTIVES RELATED TO BID CREDITS SHALL BE SUBMITTED TO
 THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE  SPEAKER  OF
 THE  ASSEMBLY  WITHIN  THIRTY DAYS OF THE ISSUANCE OF SUCH GUIDELINES OR
 WITHIN ONE YEAR FROM THE EFFECTIVE DATE OF THIS SECTION,  WHICHEVER  MAY
 COME SOONER.

 S. 542--A                           3
 
   § 2. This act shall take effect on the one hundred eightieth day after
 it  shall  have  become  a  law and shall apply to any state contracting
 opportunities advertised  on  or  after  such  date  and  shall  exclude
 contracts  for  which  an  invitation  for bid, request for proposal, or
 similar solicitation has been issued prior to the effective date of this
 act.

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The New York State Senate

senate Bill S542A

Sponsored By

Archive: Last Bill Status Via A2591 - Signed by Governor

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Votes

Jun 8, 2021 - floor Vote

Floor Vote: Jun 8, 2021

Apr 27, 2021 - Finance committee Vote

Committee Vote: Apr 27, 2021

Apr 19, 2021 - Procurement and Contracts committee Vote

Committee Vote: Apr 19, 2021

Bill Amendments

Co-Sponsors

S542 - Details

S542 - Summary

S542 - Sponsor Memo

S542 - Bill Text download pdf

Co-Sponsors

S542A (ACTIVE) - Details

S542A (ACTIVE) - Summary

S542A (ACTIVE) - Sponsor Memo

S542A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S542A

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Sponsored By

Archive: Last Bill Status Via A2591 - Signed by Governor

Your Voice

Actions

Votes

Jun 8, 2021 - floor Vote

Floor Vote: Jun 8, 2021

Apr 27, 2021 - Finance committee Vote

Committee Vote: Apr 27, 2021

Apr 19, 2021 - Procurement and Contracts committee Vote

Committee Vote: Apr 19, 2021

Bill Amendments

Co-Sponsors

S542 - Details

S542 - Summary

S542 - Sponsor Memo

S542 - Bill Text download pdf

Co-Sponsors

S542A (ACTIVE) - Details

S542A (ACTIVE) - Summary

S542A (ACTIVE) - Sponsor Memo

S542A (ACTIVE) - Bill Text download pdf

Comments