EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0261* HOUSE BILL 261 P2 3lr1277 SB 961/22 – B&T CF SB 424 By: Delegates Kerr and Fair, Fair, Bagnall, Bhandari, Cullison, Guzzone, Hill, S. Johnson, Kaiser, R. Lewis, Lopez, Martinez, Pena–Melnyk, Rosenberg, Taveras, White, and Woods Introduced and read first time: January 25, 2023 Assigned to: Health and Government Operations Committee Report: Favorable with amendments House action: Adopted Read second time: March 9, 2023 CHAPTER ______ AN ACT concerning 1 Public Projects – Global Warming Potential of Materials Procurement of 2 Construction Materials 3 (Buy Clean Maryland Act) 4 FOR the purpose of requiring producers of eligible materials to submit certain declarations 5 to the Department of General Services by a certain date; requiring the Department 6 to assess and to establish a maximum acceptable global warming potential for 7 certain categories of eligible materials used in certain eligible projects; requiring the 8 Department to review the maximum acceptable global warming potential for each 9 category of eligible materials and authorizing the Department to make certain 10 adjustments according to a certain schedule; prohibiting the Department from 11 increasing the maximum acceptable global warming potential for a category of 12 eligible materials; requiring a unit of State government to specify the eligible 13 materials that will be used in an eligible project in the solicitation for an eligible 14 project; requiring a successful bidder or offeror of an eligible project to submit certain 15 information about each eligible material proposed to be used in an eligible project; 16 prohibiting a contractor from installing any eligible materials on an eligible project 17 until the contractor submits the required information for the eligible material; 18 authorizing the Department to waive certain requirements concerning the use of 19 eligible materials on eligible projects under certain circumstances; providing that the 20 Department shall strive to achieve a continuous reduction of greenhouse gas 21 emissions over time; establishing an Environmental Product Declaration Assistance 22 2 HOUSE BILL 261 Fund for a certain purpose; and generally relating to the global warming potential 1 of materials in public projects. 2 BY adding to 3 Article – State Finance and Procurement 4 Section 4–901 through 4–905 to be under the new subtitle “Subtitle 9. Buy Clean 5 Maryland Act” 6 Annotated Code of Maryland 7 (2021 Replacement Volume and 2022 Supplement) 8 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9 That the Laws of Maryland read as follows: 10 Article – State Finance and Procurement 11 SUBTITLE 9. BUY CLEAN MARYLAND ACT. 12 4–901. 13 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 14 INDICATED. 15 (B) “ELIGIBLE MATERIAL” MEANS ANY CEMENT OR CONCRETE MIXTURE 16 USED IN THE CONSTRUC TION OF A PUBLIC PRO JECT. 17 (C) (1) “ELIGIBLE PROJECT ” MEANS A PUBLIC PROJE CT AS DEFINED 18 INCLUDES A CAPITAL P ROJECT DESCRIBED IN § 3–602 3–602.1(C) OF THIS ARTICLE. 19 (2) “ELIGIBLE PROJECT” DOES NOT INCLUDE ANY MAINTENANCE 20 PROGRAM FOR THE UPKE EP OF A PUBLIC PROJE CT. 21 (D) “GLOBAL WARMING POTENT IAL” MEANS THE DEGREE THA T A GIVEN 22 MASS OF A CHEMICAL C ONTRIBUTES TO GLOBAL WARMING OVER A GIVEN TIME 23 PERIOD WHEN COMPARED TO THE SAME MASS OF CARBON DIOXIDE . 24 (E) “GREENHOUSE GAS ” HAS THE MEANING STAT ED IN § 2–1202 OF THE 25 ENVIRONMENT ARTICLE. 26 4–902. 27 IN ADMINISTERING THIS SUBTITLE, THE DEPARTMENT SHALL STRI VE TO 28 ACHIEVE A CONTINUOUS REDUCTION OF GREENHO USE GAS EMISSIONS OV ER TIME. 29 4–903. 30 HOUSE BILL 261 3 (A) (1) ON OR BEFORE DECEMBER 31, 2024, PRODUCERS OF ELIGIBL E 1 MATERIALS SHALL SUBM IT ENVIRONMENTAL PRO DUCT DECLARATIONS TO THE 2 DEPARTMENT . 3 (2) THE DEPARTMENT SHALL ANAL YZE ENVIRONMENTAL PR ODUCT 4 DECLARATIONS AND ASS ESS GLOBAL WARMING P OTENTIAL FOR ELIGIBLE 5 MATERIALS USED IN AN ELIGIBLE PROJECT IN ACCORDANCE WITH THIS SECTION. 6 (B) ON OR BEFORE JANUARY 1, 2025 2026, THE DEPARTMENT SHALL 7 ESTABLISH A MAXIMUM ACCEPTABLE GLOBAL WA RMING POTENTIAL FOR EACH 8 CATEGORY OF ELIGIBLE MATERIALS USED IN AN ELIGIBLE PROJECT IN 9 ACCORDANCE WITH THIS SECTION. 10 (B) (C) THE DEPARTMENT SHALL : 11 (1) BASE THE MAXIMUM ACC EPTABLE GLOBAL WARMI NG POTENTIAL 12 ON THE INDUSTRY AVER AGE OF GLOBAL WARMIN G POTENTIAL EMISSION S FOR THAT 13 MATERIAL; 14 (2) DETERMINE THE INDUST RY AVERAGE OF GLOBAL WARM ING 15 POTENTIAL EMISSIONS , WHICH MAY INCLUDE TR ANSPORTATION –RELATED 16 EMISSIONS, BY CONSULTING NATION ALLY OR INTERNATIONA LLY RECOGNIZED 17 DATABASES OF ENVIRON MENTAL PRODUCT DECLA RATIONS; AND 18 (3) EXPRESS THE MAXIMUM ACCEPTABLE GLOBAL WARMING 19 POTENTIAL AS A NUMBE R THAT STATES THE MA XIMUM ACCEPTABLE GLO BAL 20 WARMING POTENTIAL FO R EACH CATEGORY OF E LIGIBLE MATERIALS , CONSISTENT 21 WITH CRITERIA IN AN ENVIRONMENTAL PRODUC T DECLARATION . 22 (C) (D) THE DEPARTMENT MAY : 23 (1) ESTABLISH ADDITIONAL SUBCATEGORIES WITHIN EACH 24 CATEGORY OF ELIGIBLE MATERIAL WITH DISTIN CT MAXIMUM ACCEPTABL E GLOBAL 25 WARMING POTENTIAL LI MITS; 26 (2) ESTABLISH A MAXIMUM ACCEPTABLE GLOBAL WA RMING 27 POTENTIAL FOR EACH M ATERIAL CATEGORY IN THE AGGREGATE ; AND 28 (3) CONSULT WITH AN Y OTHER RELEVANT UNI T OF STATE 29 GOVERNMENT WHEN ESTA BLISHING A MAXIMUM A CCEPTABLE GLOBAL WAR MING 30 POTENTIAL FOR EACH C ATEGORY OF ELIGIBLE MATERIALS USED IN AN ELIGIBLE 31 PROJECT. 32 4 HOUSE BILL 261 (D) (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , BY 1 JANUARY 1, 2028 2029, AND EVERY 3 YEARS THEREAFTER , THE DEPARTMENT 2 SHALL REVIEW THE MAX IMUM ACCEPTABLE GLOB AL WARMING POTENTIAL FOR 3 EACH CATEGORY OF ELI GIBLE MATERIALS AND MAY ADJUST THE POTEN TIAL FOR 4 ANY CATEGORY TO REFL ECT INDUSTRY CONDITI ONS. 5 (2) THE DEPARTMENT MAY NOT ADJUST THE GLOBAL WA RMING 6 POTENTIAL UPWARD FOR ANY CATEGORY OF ELIG IBLE MATERIAL. 7 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 8 as follows: 9 Article – State Finance and Procurement 10 4–904. 11 (A) (1) FOR ANY SOLICITATION FOR A CONTRACT FOR AN ELIG IBLE 12 PROJECT, A UNIT OF STATE GOVERNMENT SHAL L SPECIFY THE ELIGIB LE 13 MATERIALS THAT WILL BE USED IN THE PROJE CT AND THE REASONABL E MINIMUM 14 USAGE THRESHOLDS BEL OW WHICH THE REQUIRE MENTS OF THIS SECTIO N DO NOT 15 APPLY. 16 (2) A UNIT OF STATE GOVERNMENT MAY INCLU DE IN A SOLICITATION 17 FOR AN ELIGIBLE PROJ ECT A GLOBAL WARMING POTENTIAL FOR ANY EL IGIBLE 18 MATERIAL THAT IS LOW ER THAN THE MAXIMUM ACCEPTABLE GLOBAL WA RMING 19 POTENTIAL FOR THAT M ATERIAL AS DETERMINE D UNDER § 4–903 OF THIS 20 SUBTITLE. 21 (B) THE DEPARTMENT SHALL REQU IRE A SUCCESSFUL BID DER OR 22 OFFEROR OF AN ELIGIB LE PROJECT TO SUBMIT , FOR EACH ELIGIBLE MA TERIAL 23 PROPOSED TO BE USED IN THE ELIGIBLE PROJ ECT: 24 (1) A CURRENT ENVIRONMEN TAL PRODUCT DECLARAT ION, TYPE III, 25 AS DEFINED BY THE INTERNATIO NAL ORGANIZATION FOR STANDARDIZATION 26 STANDARD 14025; OR 27 (2) A SIMILARLY ROBUST L IFE CYCLE ASSESSMENT METHOD THAT 28 INCLUDES UNIFORM STA NDARDS IN DATA COLLE CTION. 29 (C) A CONTRACTOR MAY NOT I NSTALL ANY ELIGIBLE MATERIALS ON THE 30 ELIGIBLE PROJECT UNT IL THE CONTRACTOR SUBMITS A FACILITY–SPECIFIC 31 ENVIRONMENTAL PRODUC T DECLARATION FOR TH AT ELIGIBLE MATERIAL AS 32 REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION. 33 HOUSE BILL 261 5 (D) IF AN ENVIRONMENTAL P RODUCT DECLARATION I S NOT AVAILABLE FOR 1 AN ELIGIBLE MATERIAL , THE CONTRACTOR SHA LL NOTIFY THE UNIT A ND USE AN 2 ALTERNATIVE ELIGIBLE MATERIAL WITH AN ENV IRONMENTAL PRODUCT 3 DECLARATION . 4 (E) THE DEPARTMENT MAY WAIVE THE REQUIREMENTS OF THIS SECTION 5 IF IT DETERMINES THA T REQUIRING THE RELE VANT ELIGIBLE MATERI ALS WOULD: 6 (1) BE TECHNICALLY INFEASIBLE ; 7 (2) RESULT IN A SIGNIFIC ANT INCREASE IN PROJ ECT COST; 8 (3) RESULT IN A SIGNIFIC ANT DELAY IN PROJECT COMPLETION ; OR 9 (4) RESULT IN ONLY ONE S OURCE OR MANUFACTURE R BEING ABLE 10 TO PROVIDE THE NECES SARY MATERIALS . 11 4–905. 12 (A) ON OR BEFORE DECEMBER 1, 2025, AND EACH YEAR THEREA FTER, THE 13 DEPARTMENT SHALL SUBM IT AN ANNUAL REPORT , IN ACCORDANCE WITH § 2–1257 14 OF THE STATE GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY THAT 15 INCLUDES: 16 (1) WHAT THE DEPARTMENT HAS LEARNE D ABOUT HOW TO IDENT IFY 17 AND QUANTIFY EMBODIE D CARBON IN BUILDING MATERIALS, INCLUDING LIFE 18 CYCLE COSTS; AND 19 (2) ANY OBSTACLES THE DEPARTMENT , BIDDERS, OR OFFERORS 20 HAVE ENCOUNTERED IN IDENTIFYING AND QUAN TIFYING EMBODIED CAR BON IN 21 BUILDING MATERIALS . 22 (B) THE REPORT SUBMITTED ON OR BEFO RE DECEMBER 1, 2025, SHALL 23 INCLUDE A DESCRIPTIO N OF THE METHOD THAT THE DEPARTMENT USED TO 24 DEVELOP THE MAXIMUM ACCEPTABLE GLOBAL WA RMING POTENTIAL FOR EACH 25 CATEGORY OF ELIGIBLE MATERIALS. 26 SECTION 3. AND BE IT FURTHER ENACTED, That: 27 (a) (1) There is an Environmental Product Declaration Assistance Fund. 28 (2) The purpose of the Fund is to award grants to producers of eligible 29 materials to support the development, standardization, and transparency of environmental 30 product declarations for construction materials and products. 31 6 HOUSE BILL 261 (b) The Department of Commerce shall administer the Fund. 1 (c) The Fund shall consist of money appropriated in the State budget to the Fund. 2 SECTION 4. AND BE IT FURTHER ENACTED, That: 3 (a) The Maryland Green Building Council shall examine: 4 (1) the use of environmental product declarations to measure the climate 5 impact of construction materials produced by the State, including glass, steel, and wood; 6 (2) the use of performance incentives to encourage adoption of low–carbon 7 materials and methods by manufacturers that provide construction materials for 8 State–funded projects; 9 (3) the establishment of an expedited product evaluation, testing, and 10 approval protocol for low–carbon products; 11 (4) the implementation of performance–based specification standards for 12 construction materials, including requirements that a structural material achieve specified 13 performance–based outcomes from the use of structural material, including outcomes 14 related to strength, durability, permeability, or other attributes related to the function of 15 building material for applied uses; and 16 (5) the use of methods of compliance, including specifications based on 17 maximum potential for global warming. 18 (b) In examining the items under subsection (a) of this section, the Maryland 19 Green Building Council shall consult with: 20 (1) any relevant associations that set industry standards for the 21 procurement of low–carbon construction products; and 22 (2) affected contractors and subcontractors to consider both environmental 23 and health and safety impacts. 24 (c) On or before September 1, 2024, the Maryland Green Building Council shall 25 report its findings and recommendations to the Governor and, in accordance with § 2–1257 26 of the State Government Article, the General Assembly. 27 SECTION 3. 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall 28 take effect July 1, 2025 2026. 29 SECTION 6. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 30 effect July 1, 2023. It shall remain effective for a period of 1 year and 6 months and, at the 31 end of December 31, 2024, Section 3 of this Act shall be abrogated and of no further force 32 and effect. 33 HOUSE BILL 261 7 SECTION 4. 7. AND BE IT FURTHER ENACTED, That, except as provided in 1 Section 3 Sections 5 and 6 of this Act, this Act shall take effect July 1, 2023. 2 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.