NY State Senate Bill 2019-S8965

Archive: Last Bill Status - In Senate Committee Rules Committee

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

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Sep 04, 2020	referred to rules

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2019-S8965 (ACTIVE) - Details

See Assembly Version of this Bill:: A8617
Current Committee:: Senate Rules
Law Section:: State Finance Law
Laws Affected:: Amd §165, St Fin L; amd §606, Tax L
Versions Introduced in 2021-2022 Legislative Session:: A2591

2019-S8965 (ACTIVE) - Summary

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.

2019-S8965 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8965

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 names this Act "The New York State Low Embodied Concrete Lead-
ership Act."

Section 2 defines terms

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%. applicable performance specification standards
in force in the State of New York.

Section 2c describes the application of supplemental price discounts for
bids that incorporate products and processes that support the capture,
utilization and/or storage of carbon dioxide (CCUS). The CCUS supple-
mental price discount reflects the necessity for such products and proc-
esses 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 significantly mitigated through cement
substitution, low carbon energy substitution or increased efficiency.
The State will establish criteria for certifying CCUS products and proc-
esses that are eligible for the supplemental CCUS price discount.

Section 2d 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 2e 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 2f 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 2g 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.

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 3b 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 procure-
ment 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-establ-
ished 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 start up 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:

This is a new bill

 
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
competitive in order to increase their competitiveness for state
contracts vis-a-vis other offerers. 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 on the first of January next succeeding 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 necessary
for the implementation of this act on its effective date are authorized
to be made and completed on or before such effective date.

2019-S8965 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8965
 
                             I N  S E N A T E
 
                             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:
 
   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
 GREENHOUSE  GASES,  OR  THE  ELIMINATION  OF  GREENHOUSE GAS SINKS, THAT
 RESULTS FROM THE PRODUCTION AND/OR UTILIZATION OF A SPECIFIC PRODUCT  OR
 SERVICE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13765-10-0

 S. 8965                             2
 
   (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)  "CCUS  DISCOUNT RATE" SHALL MEAN A DISCOUNT, SET BY THE COMMIS-
 SIONER, APPLIED TO ONE OR MORE OF THE BIDS FOR SUPPLY  OF  CONCRETE  AND
 BASED  ON  CO2  CAPTURE  AND  CO2  UTILIZATION  METHODS EMPLOYED BY EACH
 RESPECTIVE BID.
   (XIII) "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.
   (XIV)  "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
 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.

 S. 8965                             3
 
 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 PRODUCTS AND TECHNOLOGIES THAT INVOLVE CCUS, 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 CERTIFIED CCUS PRODUCTS AND  TECHNOLO-
 GIES  WILL  BE  GRANTED A SUPPLEMENTAL PRICE DISCOUNT FOR BID ASSESSMENT
 AND SELECTION PURPOSES THAT SHALL NOT EXCEED THREE PERCENT.    THE  CCUS
 DISCOUNT  RATE  SHALL  BE ADDED TO THE LOW EMBODIED CARBON DISCOUNT RATE
 AND APPLIED TO THE BASE BID PRICE.
   D. 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.
   E. 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.
   F. THE COMMISSIONER SHALL ISSUE REGULATIONS FOR THE IMPLEMENTATION  OF
 THIS  SUBDIVISION, INCLUDING BUT NOT LIMITED TO: (I) ESTABLISHING GUIDE-
 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.
   G. THE COMMISSIONER SHALL COMPLETE AND SUBMIT TO  THE  LEGISLATURE  AN
 ANNUAL  COST-BENEFIT  ANALYSIS  OF  THE  LOW  EMBODIED  CARBON  CONCRETE
 PROCUREMENT STANDARD, ONCE IMPLEMENTED, IN ORDER TO QUANTIFY THE BUDGET-
 ARY IMPACT OF THE PROGRAM RELATIVE  TO  THE  LATTER'S  CARBON  REDUCTION
 IMPACT.
   §  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.

 S. 8965                             4
 
   (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-ONE  AND  TWO
 THOUSAND  TWENTY-TWO.   TAX CREDIT ELIGIBILITY WILL EXPIRE AT THE END OF
 TWO THOUSAND TWENTY-TWO.
   (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.
   §  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.

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Senate Bill S8965

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

2019-S8965 (ACTIVE) - Details

2019-S8965 (ACTIVE) - Summary

2019-S8965 (ACTIVE) - Sponsor Memo

2019-S8965 (ACTIVE) - Bill Text download pdf

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Senate Bill S8965

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Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

2019-S8965 (ACTIVE) - Details

2019-S8965 (ACTIVE) - Summary

2019-S8965 (ACTIVE) - Sponsor Memo

2019-S8965 (ACTIVE) - Bill Text download pdf

Comments