S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6566
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 6, 2025
                                ___________
 
 Introduced  by  M.  of  A.  R. CARROLL  -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law,  in  relation  to  providing  a  sales  tax
   exemption for certain low-carbon building materials
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "building embodied carbon breakthrough act".
   §  2.  Legislative findings and purpose. 1. The legislature finds that
 reducing greenhouse gas emissions from the building sector is a critical
 component of the state's climate goals under the Climate Leadership  and
 Community Protection Act.
   2.  The legislature further finds that embodied carbon in construction
 materials, such as cement, steel, and other building products,  contrib-
 utes  significantly  to overall emissions. Studies show that nearly half
 of emissions from new buildings between 2020 and  2050  will  come  from
 embodied  carbon  under  a  business-as-usual  scenario  (Carbon Neutral
 Buildings Roadmap, NYSERDA).
   3. The concrete and steel industries alone account  for  over  20%  of
 global  industrial  emissions,  with cement production ranking among the
 largest industrial greenhouse gas emitters  in  New  York  state  (Final
 Scoping Plan, NYS Climate Action Council).
   4.  In  New York, 28% of annual building-related emissions are associ-
 ated with the production of materials such as concrete, steel, aluminum,
 glass, and insulation (Final Scoping Plan, NYS Climate Action  Council).
 However, specifying lower-carbon alternatives can reduce embodied carbon
 emissions  by  up  to  33%,  and  material  reuse strategies can achieve
 reductions of up to 80% (Carbon Neutral Buildings Roadmap, NYSERDA).
   5. The legislature recognizes  that  demand  for  low-carbon  building
 materials is growing and that New York state has an opportunity to posi-
 tion  itself  as  a  national  leader  in manufacturing, innovation, and

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10492-01-5
              

 A. 6566                             2
 
 deployment of these materials. According to the Climate Action Council's
 Final Scoping Plan, public procurement strategies and tax incentives can
 accelerate market  adoption  of  these  technologies  while  stimulating
 economic growth.
   6.  The legislature acknowledges that New York's Carbon Neutral Build-
 ings Roadmap identifies the manufacturing and supply chain opportunities
 that will arise from transitioning to low-embodied  carbon  construction
 materials.  Supporting  these  industries will not only reduce emissions
 but also create new jobs and expand economic  opportunities  across  the
 state.
   7. The legislature finds that providing a tax exemption for low-carbon
 materials  will establish an early and stable market for these products,
 allowing New York-based businesses  to  develop  cutting-edge  solutions
 that  can  be  exported to meet demand beyond state borders. This policy
 aligns with  existing  initiatives  such  as  NYSERDA's  Carbon  Neutral
 Economic  Development  Program, which seeks to attract and support busi-
 nesses working on climate-friendly materials.
   8. The legislature further finds that ensuring local  access  to  low-
 carbon  materials will encourage workforce development in advanced manu-
 facturing, sustainable construction, and related trades. Investments  in
 low-embodied  carbon industries will provide long-term economic benefits
 while advancing the state's climate objectives.
   § 3. Section 1115 of the tax law is amended by adding a  new  subdivi-
 sion (mm) to read as follows:
   (MM)  (1)  FOR  THE  PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "AUTHORITY" SHALL MEAN THE NEW  YORK  STATE  ENERGY  RESEARCH  AND
 DEVELOPMENT AUTHORITY.
   (B) "DIVISION" SHALL MEAN THE DEPARTMENT OF STATE'S DIVISION OF BUILD-
 ING STANDARDS AND CODES.
   (C)  "EMBODIED  CARBON"  SHALL MEAN THE TOTAL GREENHOUSE GAS EMISSIONS
 ASSOCIATED WITH THE PRODUCTION,  TRANSPORTATION,  INSTALLATION,  MAINTE-
 NANCE, AND END-OF-LIFE DISPOSAL OF A BUILDING MATERIAL OR PRODUCT, MEAS-
 URED IN KILOGRAMS OF CARBON DIOXIDE EQUIVALENT (KGCO2E).
   (D)   "ENERGY   CODE"   SHALL   MEAN  THE  STATE  ENERGY  CONSERVATION
 CONSTRUCTION CODE, AS ESTABLISHED AND ADMINISTERED BY THE DIVISION.
   (E) "ENVIRONMENTAL PRODUCT DECLARATION" OR "EPD" SHALL MEAN  A  THIRD-
 PARTY  VERIFIED  DOCUMENT  THAT  PROVIDES  TRANSPARENT  AND STANDARDIZED
 INFORMATION ABOUT THE ENVIRONMENTAL IMPACT OF A PRODUCT  OVER  ITS  LIFE
 CYCLE, IN ACCORDANCE WITH ISO 14025 AND RELATED STANDARDS.
   (F)  "GLOBAL  WARMING  POTENTIAL" OR "GWP" SHALL MEAN A METRIC USED TO
 COMPARE THE IMPACT OF DIFFERENT GREENHOUSE GASES ON CLIMATE CHANGE  OVER
 A  SPECIFIC TIME HORIZON, TYPICALLY 100 YEARS, EXPRESSED RELATIVE TO THE
 WARMING EFFECT OF CARBON DIOXIDE (CO2E).
   (G) "GLOBAL WARMING POTENTIAL THRESHOLD" SHALL MEAN THE  VALUE  ESTAB-
 LISHED BY THE STATE TO DETERMINE ELIGIBILITY FOR THE SALES TAX EXEMPTION
 UNDER  THIS  SUBDIVISION  AND  FINANCING UNDER THE MUNICIPAL SUSTAINABLE
 ENERGY LOAN PROGRAM. THIS THRESHOLD REPRESENTS THE MEDIAN GLOBAL WARMING
 POTENTIAL OF A MATERIAL, PRODUCT, OR COMPONENT,  BASED  ON  A  REPRESEN-
 TATIVE  SAMPLE  OF  PRODUCT-LEVEL ENVIRONMENTAL PRODUCT DECLARATIONS FOR
 THAT CATEGORY, OR RELATIVE TO GWP VALUES PREVIOUSLY DERIVED  AND  RECOG-
 NIZED BY THE STATE.
   (H)  "INTERIOR" SHALL MEAN A BUILDING'S INTERIOR SPACES, INCLUDING BUT
 NOT LIMITED TO FLOORING, FURNITURE, WALL PANELS, CEILING SYSTEMS,  CABI-
 NETRY, PARTITIONS, AND INTERIOR INSULATION.
 A. 6566                             3

   (I)  "LOW-CARBON"  SHALL  DESIGNATE MATERIALS, PRODUCTS AND COMPONENTS
 USED IN BUILDING CONSTRUCTION THAT MEET  OR  EXCEED  THE  PRODUCT  LEVEL
 GLOBAL  WARMING  POTENTIAL  THRESHOLD  ESTABLISHED BY THE AUTHORITY BY A
 MINIMUM OF FIFTEEN PERCENT.
   (J) "MUNICIPAL SUSTAINABLE ENERGY LOAN PROGRAM" SHALL MEAN THE PROGRAM
 AUTHORIZED UNDER ARTICLE FIVE-L OF THE GENERAL MUNICIPAL LAW.
   (K)  "PRODUCT  CATEGORY  RULE"  SHALL  MEAN  A  SET OF SPECIFIC RULES,
 REQUIREMENTS, AND GUIDELINES DEVELOPED IN ACCORDANCE WITH ISO 14025 THAT
 ESTABLISH THE METHODOLOGY FOR  CONDUCTING  LIFE  CYCLE  ASSESSMENTS  AND
 CREATING  ENVIRONMENTAL PRODUCT DECLARATIONS FOR A GIVEN PRODUCT CATEGO-
 RY, ENSURING CONSISTENCY AND COMPARABILITY IN ENVIRONMENTAL  PERFORMANCE
 DATA.
   (L)  "SIGNIFICANT  EMBODIED  CARBON  REDUCTION  IMPROVEMENT"  MEANS  A
 MODIFICATION TO CONSTRUCTION MATERIALS,  PRODUCTS  AND  COMPONENTS  THAT
 RESULT  IN  AT  LEAST  A  FIFTY PERCENT REDUCTION IN GWP COMPARED TO THE
 GLOBAL WARMING POTENTIAL THRESHOLD ESTABLISHED FOR THAT MATERIAL,  PROD-
 UCT OR COMPONENT PRODUCT CATEGORY.
   (M)  "STANDARDS  DEVELOPMENT  ORGANIZATION"  OR  "SDO" MEANS AN ENTITY
 RECOGNIZED FOR DEVELOPING AND MAINTAINING TECHNICAL STANDARDS THROUGH  A
 CONSENSUS-BASED  PROCESS.  SDOS  ESTABLISH GUIDELINES, TEST METHODS, AND
 SPECIFICATIONS TO ENSURE  PRODUCT  QUALITY,  SAFETY,  AND  ENVIRONMENTAL
 PERFORMANCE.
   (N)  "UNIFORM  CODE"  MEANS  THE  UNIFORM FIRE PREVENTION AND BUILDING
 CODE, AS ESTABLISHED AND ADMINISTERED BY THE DIVISION.
   (2) (A) QUALIFYING LOW-CARBON BUILDING MATERIALS, PRODUCTS, AND COMPO-
 NENTS SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE. A  PURCHASER  SEEKING
 EXEMPTION  UNDER  THIS SUBDIVISION SHALL PRESENT A COMPLETED FORM DEVEL-
 OPED BY THE DEPARTMENT TO THE SELLER AT THE TIME OF PURCHASE.   LOW-CAR-
 BON  BUILDING  MATERIALS,  COMPONENTS,  AND  PRODUCTS  ELIGIBLE  FOR  AN
 EXEMPTION FROM TAX UNDER THIS ARTICLE SHALL INCLUDE:
   (I) CONCRETE AND CEMENTITIOUS MATERIALS.
   (II) STRUCTURAL STEEL AND REINFORCING BAR.
   (III) ENGINEERED WOOD PRODUCTS AND MASS TIMBER.
   (IV) INSULATION.
   (V) FLOORING.
   (VI) ARCHITECTURAL COATINGS.
   (VII) FLOORING MATERIALS, INCLUDING CARPET, LAMINATE, CERAMIC,  RESIL-
 IENT, AND WOOD FLOORING.
   (VIII) GYPSUM PANEL PRODUCTS.
   (IX) FLAT GLASS.
   (X) PRESSURE-TREATED WOOD PRODUCTS.
   (XI) FLOOR COATINGS.
   (XII) SINGLE-PLY ROOFING MEMBRANES.
   (XIII) PEDESTRIAN AND REVOLVING DOORS.
   (XIV) WATER-RESISTIVE AND AIR BARRIERS.
   (XV) INSULATION.
   (XVI)   INTERIOR  FURNITURE  COMPONENTS  INCLUDING  SEATING,  STORAGE,
 TABLES, AND OFFICE FURNITURE WORKSPACE PRODUCTS.
   (XVII) ADDITIONAL MATERIAL, PRODUCT, AND COMPONENT CATEGORIES INCLUDED
 AT THE DISCRETION OF THE COMMISSIONER IN CONSULTATION WITH THE AUTHORITY
 AND THE DIVISION, PROVIDED THAT CURRENT PRODUCT CATEGORY RULES HAVE BEEN
 PUBLISHED BY RECOGNIZED STANDARDS DEVELOPMENT ORGANIZATIONS.
   (B) THE AUTHORITY SHALL ESTABLISH THE PRODUCT-LEVEL GWP THRESHOLD  FOR
 BUILDING  MATERIALS,  PRODUCTS, AND COMPONENTS. SUCH THRESHOLDS SHALL BE
 REVIEWED AND REVISED EVERY THREE YEARS BY THE AUTHORITY, IN CONSULTATION
 WITH THE DIVISION, BASED ON THE MOST CURRENT RECOGNIZED PRODUCT CATEGORY
 A. 6566                             4
 
 RULES FOR EACH CATEGORY,  AND  AN  EVALUATION  OF  RECENT  STATISTICALLY
 SIGNIFICANT SAMPLES OF EPDS FOR ELIGIBLE MATERIALS, PRODUCTS, AND COMPO-
 NENTS.
   (C) THE DIVISION, IN CONSULTATION WITH THE AUTHORITY, SHALL BE RESPON-
 SIBLE  FOR  EVALUATING  AND APPROVING MATERIALS, PRODUCTS AND COMPONENTS
 FOR EXEMPTION UNDER THIS SUBDIVISION.
   (D) THE DEPARTMENT, IN CONSULTATION WITH THE AUTHORITY, SHALL MAINTAIN
 A PUBLICLY ACCESSIBLE DATABASE OF MATERIALS AND MANUFACTURERS THAT QUAL-
 IFY FOR EXEMPTION UNDER THIS SUBDIVISION.
   (E) MATERIALS, PRODUCTS, AND COMPONENTS USED IN BUILDING  CONSTRUCTION
 AND  INTERIOR DESIGN SHALL BE ELIGIBLE FOR EXEMPTION UNDER THIS SUBDIVI-
 SION WHERE:
   (I) A CORRESPONDING PRODUCT CATEGORY RULE HAS  BEEN  PUBLISHED  BY  AN
 ACCREDITED  STANDARDS DEVELOPMENT ORGANIZATION AND APPROVED BY THE STATE
 FOR THAT MATERIAL, PRODUCT OR COMPONENT.
   (II) A STATISTICALLY SIGNIFICANT SAMPLE  OF  EPDS  FOR  THE  MATERIAL,
 PRODUCT  AND  COMPONENT CATEGORY AND RELEVANT SUB-CATEGORIES, AS DEFINED
 IN THE PRODUCT CATEGORY RULE,  HAS  BEEN  GENERATED  AND  MADE  PUBLICLY
 AVAILABLE  FOR REVIEW AND ANALYSIS BY THE AUTHORITY IN ORDER TO DERIVE A
 MEDIAN GLOBAL WARMING POTENTIAL THRESHOLD THAT IS REPRESENTATIVE OF THAT
 MATERIAL, PRODUCT, OR COMPONENT.
   (III) THE MATERIAL, PRODUCT, OR COMPONENT HAS BEEN  DETERMINED  TO  BE
 COMPLIANT  WITH  ALL  RULES,  REGULATIONS  AND  GUIDELINES  OF THE STATE
 UNIFORM CODE AND ENERGY CODE, AS WELL AS MATERIAL EVALUATION AND ACCEPT-
 ANCE CRITERIA  REQUIRED  BY  THE  LOCAL  MUNICIPAL  JURISDICTION  HAVING
 AUTHORITY.
   (F)  PURCHASERS  AVAILING  THE  EXEMPTION UNDER THIS SUBDIVISION SHALL
 RETAIN RECORDS OF ALL TRANSACTIONS MADE UNDER THIS EXEMPTION,  INCLUDING
 DOCUMENTATION  OF THE PRODUCT'S ENVIRONMENTAL PRODUCT DECLARATION, FOR A
 PERIOD OF AT LEAST FIVE YEARS.
   § 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 beginning on or 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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6566--B
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 6, 2025
                                ___________
 
 Introduced by M. of A. R. CARROLL, LEVENBERG, McDONALD, DE LOS SANTOS --
   read once and referred to the Committee on Ways and Means -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  -- again reported from said committee with amend-
   ments, ordered reprinted as amended and recommitted to said committee

 AN ACT to amend the tax law,  in  relation  to  providing  a  sales  tax
   exemption  for  certain  low-carbon  building  materials  (Part A); to
   establish a grant program for manufacturers of concrete  for  environ-
   mental product declarations (Part B)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "sustainable building materials act of 2025".
   §  2.  This  act enacts into law components of legislation relating to
 reducing greenhouse gas emissions in  construction.  Each  component  is
 wholly  contained  within  a  Part  identified as Parts A through B. The
 effective date for each particular provision contained within such  Part
 is  set  forth  in  the  last section of such Part. Any provision in any
 section contained within a Part, including the  effective  date  of  the
 Part,  which  makes  reference  to a section "of this act", when used in
 connection with that particular component, shall be deemed to  mean  and
 refer  to  the  corresponding  section of the Part in which it is found.
 Section three of this act sets forth the general effective date of  this
 act.
 
                                  PART A
 
   Section  1.    Legislative findings and purpose. The legislature finds
 that reducing greenhouse gas emissions from the  building  sector  is  a
 critical  component of the state's climate goals under the Climate Lead-
 ership and Community Protection Act.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10492-07-5
              

 A. 6566--B                          2
 
   The legislature further finds that  embodied  carbon  in  construction
 materials,  such as cement, steel, and other building products, contrib-
 utes significantly to overall emissions. Studies show that  nearly  half
 of  emissions  from  new  buildings between 2020 and 2050 will come from
 embodied  carbon  under  a  business-as-usual  scenario  (Carbon Neutral
 Buildings Roadmap, NYSERDA).
   The concrete and steel industries alone account for over 20% of global
 industrial emissions, with cement production ranking among  the  largest
 industrial  greenhouse  gas  emitters  in  New York state (Final Scoping
 Plan, NYS Climate Action Council).
   In New York, 28% of annual building-related emissions  are  associated
 with  the  production  of  materials  such as concrete, steel, aluminum,
 glass, and insulation (Final Scoping Plan, NYS Climate Action  Council).
 However, specifying lower-carbon alternatives can reduce embodied carbon
 emissions  by  up  to  33%,  and  material  reuse strategies can achieve
 reductions of up to 80% (Carbon Neutral Buildings Roadmap, NYSERDA).
   The legislature recognizes that demand for low-carbon building materi-
 als is growing and that New York state has an  opportunity  to  position
 itself as a national leader in manufacturing, innovation, and deployment
 of  these  materials.  According  to  the Climate Action Council's Final
 Scoping Plan, public  procurement  strategies  and  tax  incentives  can
 accelerate  market  adoption  of  these  technologies  while stimulating
 economic growth.
   The legislature acknowledges that New York's Carbon Neutral  Buildings
 Roadmap identifies the manufacturing and supply chain opportunities that
 will  arise from transitioning to low-embodied carbon construction mate-
 rials. Supporting these industries will not only  reduce  emissions  but
 also create new jobs and expand economic opportunities across the state.
   The  legislature  finds  that providing a tax exemption for low-carbon
 materials will establish an early and stable market for these  products,
 allowing  New  York-based  businesses  to develop cutting-edge solutions
 that can be exported to meet demand beyond state  borders.  This  policy
 aligns  with  existing  initiatives  such  as  NYSERDA's  Carbon Neutral
 Economic Development Program, which seeks to attract and  support  busi-
 nesses working on climate-friendly materials.
   The legislature further finds that ensuring local access to low-carbon
 materials  will  encourage workforce development in advanced manufactur-
 ing, sustainable construction, and related trades. Investments  in  low-
 embodied  carbon  industries  will  provide  long-term economic benefits
 while advancing the state's climate objectives.
   § 2. Section 1115 of the tax law is amended by adding a  new  subdivi-
 sion (mm) to read as follows:
   (MM)  (1)  FOR  THE  PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "AUTHORITY" SHALL MEAN THE NEW  YORK  STATE  ENERGY  RESEARCH  AND
 DEVELOPMENT AUTHORITY.
   (B) "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF STATE.
   (C) "DIVISION" SHALL MEAN THE DEPARTMENT OF STATE'S DIVISION OF BUILD-
 ING STANDARDS AND CODES.
   (D)  "EMBODIED  CARBON"  SHALL MEAN THE TOTAL GREENHOUSE GAS EMISSIONS
 ASSOCIATED WITH THE PRODUCTION,  TRANSPORTATION,  INSTALLATION,  MAINTE-
 NANCE, AND END-OF-LIFE DISPOSAL OF A BUILDING MATERIAL OR PRODUCT, MEAS-
 URED IN KILOGRAMS OF CARBON DIOXIDE EQUIVALENT (KGCO2E).
   (E)   "ENERGY   CODE"   SHALL   MEAN  THE  STATE  ENERGY  CONSERVATION
 CONSTRUCTION CODE, AS ESTABLISHED AND ADMINISTERED BY THE DIVISION.
 A. 6566--B                          3
 
   (F) "ENVIRONMENTAL PRODUCT DECLARATION" OR "EPD" SHALL MEAN  A  THIRD-
 PARTY  VERIFIED  DOCUMENT  THAT  PROVIDES  TRANSPARENT  AND STANDARDIZED
 INFORMATION ABOUT THE ENVIRONMENTAL IMPACT OF A PRODUCT  OVER  ITS  LIFE
 CYCLE, IN ACCORDANCE WITH ISO 14025 AND RELATED STANDARDS.
   (G)  "GLOBAL  WARMING  POTENTIAL" OR "GWP" SHALL MEAN A METRIC USED TO
 COMPARE THE IMPACT OF DIFFERENT GREENHOUSE GASES ON CLIMATE CHANGE  OVER
 A  SPECIFIC TIME HORIZON, TYPICALLY 100 YEARS, EXPRESSED RELATIVE TO THE
 WARMING EFFECT OF CARBON DIOXIDE (CO2E).
   (H) "GLOBAL WARMING POTENTIAL THRESHOLD" SHALL MEAN THE  VALUE  ESTAB-
 LISHED BY THE STATE TO DETERMINE ELIGIBILITY FOR THE SALES TAX EXEMPTION
 UNDER  THIS  SUBDIVISION  AND  FINANCING UNDER THE MUNICIPAL SUSTAINABLE
 ENERGY LOAN PROGRAM. THIS THRESHOLD REPRESENTS THE MEDIAN GLOBAL WARMING
 POTENTIAL OF A MATERIAL, PRODUCT, OR COMPONENT,  BASED  ON  A  REPRESEN-
 TATIVE  SAMPLE  OF  PRODUCT-LEVEL ENVIRONMENTAL PRODUCT DECLARATIONS FOR
 THAT CATEGORY, OR RELATIVE TO GWP VALUES PREVIOUSLY DERIVED  AND  RECOG-
 NIZED BY THE STATE.
   (I)  "INTERIOR" SHALL MEAN A BUILDING'S INTERIOR SPACES, INCLUDING BUT
 NOT LIMITED TO FLOORING, FURNITURE, WALL PANELS, CEILING SYSTEMS,  CABI-
 NETRY, PARTITIONS, AND INTERIOR INSULATION.
   (J)  "LOW-CARBON"  SHALL  DESIGNATE MATERIALS, PRODUCTS AND COMPONENTS
 USED IN BUILDING CONSTRUCTION THAT MEET  OR  EXCEED  THE  PRODUCT  LEVEL
 GLOBAL  WARMING  POTENTIAL  THRESHOLD  ESTABLISHED BY THE AUTHORITY BY A
 MINIMUM OF FIFTEEN PERCENT.
   (K) "MUNICIPAL SUSTAINABLE ENERGY LOAN PROGRAM" SHALL MEAN THE PROGRAM
 AUTHORIZED UNDER ARTICLE FIVE-L OF THE GENERAL MUNICIPAL LAW.
   (L) "PRODUCT CATEGORY RULE"  SHALL  MEAN  A  SET  OF  SPECIFIC  RULES,
 REQUIREMENTS, AND GUIDELINES DEVELOPED IN ACCORDANCE WITH ISO 14025 THAT
 ESTABLISH  THE  METHODOLOGY  FOR  CONDUCTING  LIFE CYCLE ASSESSMENTS AND
 CREATING ENVIRONMENTAL PRODUCT DECLARATIONS FOR A GIVEN PRODUCT  CATEGO-
 RY,  ENSURING CONSISTENCY AND COMPARABILITY IN ENVIRONMENTAL PERFORMANCE
 DATA.
   (M)  "SIGNIFICANT  EMBODIED  CARBON  REDUCTION  IMPROVEMENT"  MEANS  A
 MODIFICATION  TO  CONSTRUCTION  MATERIALS,  PRODUCTS AND COMPONENTS THAT
 RESULT IN AT LEAST A FIFTY PERCENT REDUCTION  IN  GWP  COMPARED  TO  THE
 GLOBAL  WARMING POTENTIAL THRESHOLD ESTABLISHED FOR THAT MATERIAL, PROD-
 UCT OR COMPONENT PRODUCT CATEGORY.
   (N) "STANDARDS DEVELOPMENT ORGANIZATION"  OR  "SDO"  MEANS  AN  ENTITY
 RECOGNIZED  FOR DEVELOPING AND MAINTAINING TECHNICAL STANDARDS THROUGH A
 CONSENSUS-BASED PROCESS. SDOS ESTABLISH GUIDELINES,  TEST  METHODS,  AND
 SPECIFICATIONS  TO  ENSURE  PRODUCT  QUALITY,  SAFETY, AND ENVIRONMENTAL
 PERFORMANCE.
   (O) "UNIFORM CODE" MEANS THE  UNIFORM  FIRE  PREVENTION  AND  BUILDING
 CODE, AS ESTABLISHED AND ADMINISTERED BY THE DIVISION.
   (2) (A) QUALIFYING LOW-CARBON BUILDING MATERIALS, PRODUCTS, AND COMPO-
 NENTS  SHALL  BE EXEMPT FROM TAX UNDER THIS ARTICLE. A PURCHASER SEEKING
 EXEMPTION UNDER THIS SUBDIVISION SHALL PRESENT A COMPLETED  FORM  DEVEL-
 OPED  BY THE DEPARTMENT TO THE SELLER AT THE TIME OF PURCHASE.  LOW-CAR-
 BON  BUILDING  MATERIALS,  COMPONENTS,  AND  PRODUCTS  ELIGIBLE  FOR  AN
 EXEMPTION FROM TAX UNDER THIS ARTICLE SHALL INCLUDE:
   (I) CONCRETE AND CEMENTITIOUS MATERIALS.
   (II) STRUCTURAL STEEL AND REINFORCING BAR.
   (III) ENGINEERED WOOD PRODUCTS AND MASS TIMBER.
   (IV) INSULATION.
   (V) FLOORING.
   (VI) ARCHITECTURAL COATINGS.
 A. 6566--B                          4
 
   (VII)  FLOORING MATERIALS, INCLUDING CARPET, LAMINATE, CERAMIC, RESIL-
 IENT, AND WOOD FLOORING.
   (VIII) GYPSUM PANEL PRODUCTS.
   (IX) FLAT GLASS.
   (X) PRESSURE-TREATED WOOD PRODUCTS.
   (XI) FLOOR COATINGS.
   (XII) SINGLE-PLY ROOFING MEMBRANES.
   (XIII) PEDESTRIAN AND REVOLVING DOORS.
   (XIV) WATER-RESISTIVE AND AIR BARRIERS.
   (XV) INSULATION.
   (XVI)   INTERIOR  FURNITURE  COMPONENTS  INCLUDING  SEATING,  STORAGE,
 TABLES, AND OFFICE FURNITURE WORKSPACE PRODUCTS.
   (XVII) ADDITIONAL MATERIAL, PRODUCT, AND COMPONENT CATEGORIES INCLUDED
 AT THE DISCRETION OF THE COMMISSIONER IN CONSULTATION WITH THE AUTHORITY
 AND THE DIVISION, PROVIDED THAT CURRENT PRODUCT CATEGORY RULES HAVE BEEN
 PUBLISHED BY RECOGNIZED STANDARDS DEVELOPMENT ORGANIZATIONS.
   (B) THE AUTHORITY SHALL ESTABLISH THE PRODUCT-LEVEL GWP THRESHOLD  FOR
 BUILDING  MATERIALS,  PRODUCTS, AND COMPONENTS. SUCH THRESHOLDS SHALL BE
 REVIEWED AND REVISED EVERY THREE YEARS BY THE AUTHORITY, IN CONSULTATION
 WITH THE DIVISION, BASED ON THE MOST CURRENT RECOGNIZED PRODUCT CATEGORY
 RULES FOR EACH CATEGORY,  AND  AN  EVALUATION  OF  RECENT  STATISTICALLY
 SIGNIFICANT SAMPLES OF EPDS FOR ELIGIBLE MATERIALS, PRODUCTS, AND COMPO-
 NENTS.
   (C) THE DIVISION, IN CONSULTATION WITH THE AUTHORITY, SHALL BE RESPON-
 SIBLE  FOR  EVALUATING  AND APPROVING MATERIALS, PRODUCTS AND COMPONENTS
 FOR EXEMPTION UNDER THIS SUBDIVISION.
   (D) THE DEPARTMENT, IN CONSULTATION WITH THE AUTHORITY, SHALL MAINTAIN
 A PUBLICLY ACCESSIBLE DATABASE OF MATERIALS AND MANUFACTURERS THAT QUAL-
 IFY FOR EXEMPTION UNDER THIS SUBDIVISION.
   (E) MATERIALS, PRODUCTS, AND COMPONENTS USED IN BUILDING  CONSTRUCTION
 AND  INTERIOR DESIGN SHALL BE ELIGIBLE FOR EXEMPTION UNDER THIS SUBDIVI-
 SION WHERE:
   (I) A CORRESPONDING PRODUCT CATEGORY RULE HAS  BEEN  PUBLISHED  BY  AN
 ACCREDITED  STANDARDS DEVELOPMENT ORGANIZATION AND APPROVED BY THE STATE
 FOR THAT MATERIAL, PRODUCT OR COMPONENT.
   (II) A STATISTICALLY SIGNIFICANT SAMPLE  OF  EPDS  FOR  THE  MATERIAL,
 PRODUCT  AND  COMPONENT CATEGORY AND RELEVANT SUB-CATEGORIES, AS DEFINED
 IN THE PRODUCT CATEGORY RULE,  HAS  BEEN  GENERATED  AND  MADE  PUBLICLY
 AVAILABLE  FOR REVIEW AND ANALYSIS BY THE AUTHORITY IN ORDER TO DERIVE A
 MEDIAN GLOBAL WARMING POTENTIAL THRESHOLD THAT IS REPRESENTATIVE OF THAT
 MATERIAL, PRODUCT, OR COMPONENT.
   (III) THE MATERIAL, PRODUCT, OR COMPONENT HAS BEEN  DETERMINED  TO  BE
 COMPLIANT  WITH  ALL  RULES,  REGULATIONS  AND  GUIDELINES  OF THE STATE
 UNIFORM CODE AND ENERGY CODE, AS WELL AS MATERIAL EVALUATION AND ACCEPT-
 ANCE CRITERIA  REQUIRED  BY  THE  LOCAL  MUNICIPAL  JURISDICTION  HAVING
 AUTHORITY.
   (F)  PURCHASERS  AVAILING  THE  EXEMPTION UNDER THIS SUBDIVISION SHALL
 RETAIN RECORDS OF ALL TRANSACTIONS MADE UNDER THIS EXEMPTION,  INCLUDING
 DOCUMENTATION  OF THE PRODUCT'S ENVIRONMENTAL PRODUCT DECLARATION, FOR A
 PERIOD OF AT LEAST FIVE YEARS.
   § 3. 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 beginning on or 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.
 A. 6566--B                          5
 
                                  PART B
 
   Section  1.  Definitions.  For the purposes of this act, the following
 terms shall have the following meanings:
   (a) "authority" means the New York state energy research and  develop-
 ment authority (NYSERDA);
   (b)  "concrete"  means  a mixture of cementitious material, aggregate,
 and water and is inclusive of ready  mix  concrete,  shotcrete,  precast
 concrete, and concrete masonry units;
   (c)  "cementitious  material"  means  any  material that has cementing
 value if used in concrete, grout, or mortar;
   (d) "aggregate" means granular material used with a  cementing  medium
 to form concrete, grout, or mortar;
   (e)  "asphalt"  means  a  mixture of bituminous material and aggregate
 used for paving, roofing, and other construction applications, including
 hot mix asphalt,  warm  mix  asphalt,  cold  mix  asphalt,  and  asphalt
 concrete;
   (f) "embodied carbon" means the total greenhouse gas emissions associ-
 ated with the production, transportation, installation, maintenance, and
 end-of-life  disposal  of  a  building  material or product, measured in
 kilograms of carbon dioxide equivalent (kgCO2e);
   (g) "environmental product declaration (EPD)" means  an  independently
 verified  product-specific label that discloses the environmental impact
 of a manufactured product based on a life cycle assessment;
   (h) "global warming potential" means the impact on climate  change  as
 reported  by a life cycle assessment (LCA), reported in units (typically
 kg) of carbon dioxide equivalent (CO2e); and
   (i) "product- and  facility-specific  environmental  product  declara-
 tions" means a type III environmental product declaration, as defined by
 the  international  organization  for  standardization  standard  14025,
 representing a single product from a single manufacturing facility.
   § 2. Grant program for environmental  product  declarations.  (a)  The
 authority  shall  establish  and administer a grant program to reimburse
 manufacturers of concrete for the cost of hiring a third party to devel-
 op product- and facility-specific environmental product declarations  or
 acquire  a  software for generating product- and facility-specific envi-
 ronmental product declarations  for  concrete,  asphalt,  aggregate,  or
 cementitious products.
   (b)  The  authority, in collaboration with the department of state and
 the office of general services,  shall  adopt  rules  to  implement  the
 program established under this section, including rules establishing:
   (i) eligibility criteria for grant applications;
   (ii) grant application procedures;
   (iii) criteria for evaluating grant applications and awarding grants;
   (iv) guidelines related to grant amounts;
   (v)  limitations  on  billable rate and maximum hours that can be used
 for soft costs; and
   (vi) procedures for monitoring the use of a grant awarded  under  this
 section and ensuring compliance with any conditions of the grant.
   (c)  The  grants shall equal the amount paid for EPD technology imple-
 mentation and related soft costs manufacturers incur to support the  EPD
 development process up to a maximum of $10,000 per plant.
   (d)  Within  amounts  appropriated  therefor,  the  office  of general
 services shall conduct a rigorous and timely review  of  new  and  novel
 materials for inclusion in the New York state approved materials list.
 A. 6566--B                          6
 
   §  3.  Embodied  carbon  in  building codes recommendation report. (a)
 Within amounts appropriated therefor,  the  authority  shall  conduct  a
 study,  in  collaboration with the department of state and the office of
 general services, that includes:
   (i) a review of the language addressing embodied carbon used in build-
 ing codes and policies in other jurisdictions;
   (ii)  the  development  of  recommendations  for  language  addressing
 embodied carbon for potential adoption by the state fire prevention  and
 building code council, and the estimated carbon savings from the primary
 proposed options over a 25-year period; and
   (iii)  consideration  of  subject areas including, but not limited to,
 the applicability to buildings of different sizes with multiple  compli-
 ance  pathways  phased in over time; including whole building life cycle
 assessments (WBLCA); reuse of existing buildings;  and  compliance  with
 material carbon caps.
   (b) In conducting the study, the authority shall provide opportunities
 for  comment from design, construction, and building industry stakehold-
 ers.
   (c) The authority shall submit a report of the study's findings to the
 governor, the temporary president of the  senate,  the  speaker  of  the
 assembly, the minority leaders of the senate and the assembly, the chair
 of the senate committee on housing, construction, and community develop-
 ment, and the chair of the assembly committee on governmental operations
 by  May  first  in  the  year next succeeding the year in which this act
 takes effect.
   § 4. This act shall take effect immediately.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  4.  This  act shall take effect immediately provided, however, that
 the applicable effective dates of Parts A through B of this act shall be
 as specifically set forth in the last section of such Parts.