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. Italics indicate opposite chamber/conference committee amendments. *hb0261* HOUSE BILL 261 P2 (3lr1277) ENROLLED BILL — Health and Government Operations/Budget and Taxation — Introduced 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 Read and Examined by Proofreaders: _______________________________________________ Proofreader. _______________________________________________ Proofreader. Sealed with the Great Seal and presented to the Governor, for his approval this _______ day of _______________ at ________________________ o’clock, ________M. ______________________________________________ Speaker. CHAPTER ______ AN ACT concerning 1 Public Eligible Projects – Global Warming Potential of Materials Procurement 2 of 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 2 HOUSE BILL 261 materials that will be used in an eligible project in the solicitation for an eligible 1 project; requiring a successful bidder or offeror of an eligible project to submit certain 2 information about each eligible material proposed to be used in an eligible project; 3 prohibiting a contractor from installing any eligible materials on an eligible project 4 until the contractor submits the required information for the eligible material; 5 authorizing the Department to waive certain requirements concerning the use of 6 eligible materials on eligible projects under certain circumstances; providing that the 7 Department shall strive to achieve a continuous reduction of greenhouse gas 8 emissions over time; establishing an Environmental Product Declaration Assistance 9 Fund for a certain purpose; and generally relating to the global warming potential 10 of materials in public eligible projects. 11 BY adding to 12 Article – State Finance and Procurement 13 Section 4–901 through 4–905 to be under the new subtitle “Subtitle 9. Buy Clean 14 Maryland Act” 15 Annotated Code of Maryland 16 (2021 Replacement Volume and 2022 Supplement) 17 SECTION 1. BE IT ENACTED BY TH E GENERAL ASSEMBLY OF MARYLAND, 18 That the Laws of Maryland read as follows: 19 Article – State Finance and Procurement 20 SUBTITLE 9. BUY CLEAN MARYLAND ACT. 21 4–901. 22 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 23 INDICATED. 24 (B) “ELIGIBLE MATERIAL ” MEANS ANY CEMENT OR CONCRETE MIXTURE 25 USED IN THE CONSTRUC TION OF A PUBLIC AN ELIGIBLE PROJECT. 26 (C) (1) “ELIGIBLE PROJECT ” MEANS A PUBLIC PROJE CT AS DEFINED 27 INCLUDES MEANS A CAPITAL PROJECT DE SCRIBED IN § 3–602 3–602.1(C) OF THIS 28 ARTICLE. 29 (2) “ELIGIBLE PROJECT ” DOES NOT INCLUDE ANY MAINTENANCE 30 PROGRAM FOR THE UPKE EP OF A PUBLIC AN ELIGIBLE PROJECT. 31 (D) “GLOBAL WARMING POTENT IAL” MEANS THE DEGREE THA T A GIVEN 32 MASS OF A CHEMICAL C ONTRIBUTES TO GLOBAL WARMING OVER A GIVEN TIME 33 PERIOD WHEN COMPARED TO THE SAME MASS OF CARBON DIOXIDE . 34 HOUSE BILL 261 3 (E) “GREENHOUSE GAS ” HAS THE MEANING STAT ED IN § 2–1202 OF THE 1 ENVIRONMENT ARTICLE. 2 4–902. 3 IN ADMINISTERING THIS SUBTITLE, THE DEPARTMENT SHALL STRI VE TO 4 ACHIEVE A CONTINUOUS REDUCTION OF GREENH OUSE GAS EMISSIONS O VER TIME. 5 4–903. 6 (A) (1) ON OR BEFORE DECEMBER 31, 2024, PRODUCERS OF ELIGIBL E 7 MATERIALS SHALL SUBM IT ENVIRONMENTAL PRO DUCT DECLARATIONS TO THE 8 DEPARTMENT . 9 (2) THE DEPARTMENT SHALL ANAL YZE ENVIRONMENTAL PR ODUCT 10 DECLARATIONS AND ASSESS GLOBAL WARMIN G POTENTIAL FOR ELIG IBLE 11 MATERIALS USED IN AN ELIGIBLE PROJECT IN ACCORDANCE WITH THIS SECTION. 12 (B) ON OR BEFORE JANUARY 1, 2025 2026, THE DEPARTMENT SHALL , IN 13 CONSULTATION WITH TH E DEPARTMENT OF TRANSPORTATION , ESTABLISH A 14 MAXIMUM ACCEPTABLE GLOBAL WA RMING POTENTIAL FOR EACH CATEGORY OF 15 ELIGIBLE MATERIALS U SED IN AN ELIGIBLE P ROJECT IN ACCORDANCE WITH THIS 16 SECTION. 17 (B) (C) THE DEPARTMENT SHALL : 18 (1) BASE THE MAXIMUM ACC EPTABLE GLOBAL WARMI NG POTENTIAL 19 ON THE INDUSTRY AVER AGE OF GLOBAL WARMIN G POTENTIAL EMISSION S FOR THAT 20 MATERIAL; 21 (2) DETERMINE THE INDUST RY AVERAGE OF GLOBAL WARMING 22 POTENTIAL EMISSIONS , WHICH MAY INCLUDE TR ANSPORTATION –RELATED 23 EMISSIONS, BY CONSULTING NATION ALLY OR INTERNATIONA LLY RECOGNIZED 24 DATABASES OF ENVIRON MENTAL PRODUCT DECLA RATIONS; AND 25 (3) EXPRESS THE MAXIMUM ACCEPTABLE GLOBAL WA RMING 26 POTENTIAL AS A NUMBE R THAT STATES THE MA XIMUM ACCEPTABLE GLO BAL 27 WARMING POTENTIAL FO R EACH CATEGORY OF ELI GIBLE MATERIALS , CONSISTENT 28 WITH CRITERIA IN AN ENVIRONMENTAL PRODUC T DECLARATION . 29 (C) (D) THE DEPARTMENT MAY : 30 4 HOUSE BILL 261 (1) ESTABLISH ADDITIONAL SUBCATEGORIES WITHIN EACH 1 CATEGORY OF ELIGIBLE MATERIAL WITH DISTIN CT MAXIMUM ACCEPTABL E GLOBAL 2 WARMING POTENTIAL LI MITS; 3 (2) ESTABLISH A MAXIMUM ACCEPTABLE GLOBAL WA RMING 4 POTENTIAL FOR EACH M ATERIAL CATEGORY IN THE AGGREGATE ; AND 5 (3) CONSULT WITH ANY OTH ER RELEVANT UNIT OF STATE 6 GOVERNMENT WHEN ESTA BLISHING A MAXIMUM A CCEPTABLE GLOBAL WAR MING 7 POTENTIAL FOR EACH C ATEGORY OF ELIGIBLE MATERIALS USED IN AN ELIGIBLE 8 PROJECT. 9 (D) (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , BY 10 JANUARY 1, 2028 2029, AND EVERY 3 YEARS THEREAFTER , THE DEPARTMENT 11 SHALL REVIEW THE MAX IMUM ACCEPTABLE GLOB AL WARMING POTENTIAL FOR 12 EACH CATEGORY OF ELI GIBLE MATERIALS AND MAY ADJUST THE POTEN TIAL FOR 13 ANY CATEGORY TO REFL ECT INDUSTRY CONDITI ONS. 14 (2) THE DEPARTMENT MAY NOT AD JUST THE GLOBAL WARM ING 15 POTENTIAL UPWARD FOR ANY CATEGORY OF ELIG IBLE MATERIAL. 16 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 17 as follows: 18 Article – State Finance and Procurement 19 4–904. 20 (A) (1) FOR ANY SOLICITATION FOR A CONTRACT FOR A N ELIGIBLE 21 PROJECT, A UNIT OF STATE GOVERNMENT SHAL L SPECIFY THE ELIGIB LE 22 MATERIALS THAT WILL BE USED IN THE PROJECT AND THE REASONABLE MINIMUM 23 USAGE THRESHOLDS BEL OW WHICH THE REQUIRE MENTS OF THIS SECTIO N DO NOT 24 APPLY. 25 (2) A UNIT OF STATE GOVERNMENT MAY INCLUDE IN A SOLICIT ATION 26 FOR AN ELIGIBLE PROJ ECT A GLOBAL WARMING POTENTIAL FOR ANY ELIGIBLE 27 MATERIAL THAT IS LOW ER THAN THE MAXIMUM ACCEPTABLE GLOBAL WA RMING 28 POTENTIAL FOR THAT M ATERIAL AS DETERMINE D UNDER § 4–903 OF THIS 29 SUBTITLE. 30 (B) THE DEPARTMENT SHALL REQU IRE A SUCCESSFUL BID DER OR 31 OFFEROR OF AN ELIGIB LE PROJECT TO SUBMIT , FOR EACH ELIGIBLE MATERI AL 32 PROPOSED TO BE USED IN THE ELIGIBLE PROJ ECT: 33 HOUSE BILL 261 5 (1) A CURRENT ENVIRONMEN TAL PRODUCT DECLARAT ION, TYPE III, 1 AS DEFINED BY THE INTERNATIONAL ORGANIZATION FOR STANDARDIZATION 2 STANDARD 14025; OR 3 (2) A SIMILARLY ROBUST L IFE CYCLE ASSE SSMENT METHOD THAT 4 INCLUDES UNIFORM STA NDARDS IN DATA COLLE CTION. 5 (C) A CONTRACTOR MAY NOT I NSTALL ANY ELIGIBLE MATERIALS ON THE 6 ELIGIBLE PROJECT UNT IL THE CONTRACTOR SU BMITS A FACILITY –SPECIFIC 7 ENVIRONMENTAL PRODUC T DECLARATION FOR TH AT ELIGIBLE MATERIA L AS 8 REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION. 9 (D) IF AN ENVIRONMENTAL P RODUCT DECLARATION I S NOT AVAILABLE FOR 10 AN ELIGIBLE MATERIAL , THE CONTRACTOR SHALL NOTIFY THE UNIT AND USE AN 11 ALTERNATIVE ELIGIBLE MATERIAL WITH AN ENV IRONMENTAL PRODUCT 12 DECLARATION. 13 (E) THE DEPARTMENT MAY WAIVE THE REQUIREMENTS OF THIS SECTION 14 IF IT DETERMINES THA T REQUIRING THE RELE VANT ELIGIBLE MATERI ALS WOULD: 15 (1) BE TECHNICALLY INFEA SIBLE; 16 (2) RESULT IN A SIGNIFIC ANT INCREASE IN PROJ ECT COST; 17 (3) RESULT IN A SIGN IFICANT DELAY IN PRO JECT COMPLETION ; OR 18 (4) RESULT IN ONLY ONE S OURCE OR MANUFACTURE R BEING ABLE 19 TO PROVIDE THE NECES SARY MATERIALS . 20 4–905. 21 (A) ON OR BEFORE DECEMBER 1, 2025, AND EACH YEAR THEREA FTER, THE 22 DEPARTMENT SHALL SUBM IT AN ANNUAL REPORT , IN ACCORDANCE WITH § 2–1257 23 OF THE STATE GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY THAT 24 INCLUDES: 25 (1) WHAT THE DEPARTMENT HAS LEARNE D ABOUT HOW TO IDENT IFY 26 AND QUANTIFY EMBODIE D CARBON IN BUILDING MATERIALS, INCLUDING LIFE 27 CYCLE COSTS; AND 28 (2) ANY OBSTACLES THE DEPARTMENT , BIDDERS, OR OFFERORS 29 HAVE ENCOUNTERED IN IDENTIFYING AND QUAN TIFYING EMBODIED CAR BON IN 30 BUILDING MATERIALS . 31 6 HOUSE BILL 261 (B) THE REPORT SUBMITTED ON OR BEFORE DECEMBER 1, 2025, SHALL 1 INCLUDE A DESCRIPTIO N OF THE METHOD THAT THE DEPARTMENT USED TO 2 DEVELOP THE MAXIMUM ACCEPTABLE GLOBAL WA RMING POTENTIAL FOR EACH 3 CATEGORY OF ELIGIBLE MATERIALS. 4 SECTION 3. AND BE IT FURTHER ENACTED, That: 5 (a) (1) There is an Environmental Product Declaration Assistance Fund. 6 (2) The purpose of the Fund is to award grants to producers of eligible 7 materials to support the development, standardization, and transparency of environmental 8 product declarations for construction materials and products. 9 (b) The Department of Commerce shall administer the Fund. 10 (c) The Fund shall consist of money appropriated in the State budget to the Fund. 11 SECTION 4. AND BE IT FURTHER ENACTED, That: 12 (a) The Maryland Green Building Council shall examine: 13 (1) the use of environmental product declarations to measure the climate 14 impact of construction materials produced by the State, including glass, steel, and wood; 15 (2) the use of performance incentives to encourage adoption of low–carbon 16 materials and methods by manufacturers that provide construction materials for 17 State–funded projects; 18 (3) the establishment of an expedited product evaluation, testing, and 19 approval protocol for low–carbon products; 20 (4) the implementation of performance–based specification standards for 21 construction materials, including requirements that a structural material achieve specified 22 performance–based outcomes from the use of structural material, including outcomes 23 related to strength, durability, permeability, or other attributes related to the function of 24 building material for applied uses; and 25 (5) the use of methods of compliance, including specifications based on 26 maximum potential for global warming. 27 (b) In examining the items under subsection (a) of this section, the Maryland 28 Green Building Council shall consult with: 29 (1) any relevant associations that set industry standards for the 30 procurement of low–carbon construction products; and 31 HOUSE BILL 261 7 (2) affected contractors and subcontractors to consider both environmental 1 and health and safety impacts. 2 (c) On or before September 1, 2024, the Maryland Green Building Council shall 3 report its findings and recommendations to the Governor and, in accordance with § 2–1257 4 of the State Government Article, the General Assembly. 5 SECTION 3. 5. 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall 6 take effect July 1, 2025 2026. 7 SECTION 6. 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall 8 take effect July 1, 2023. It shall remain effective for a period of 1 year and 6 months and, 9 at the end of December 31, 2024, Section 3 of this Act shall be abrogated and of no further 10 force and effect. 11 SECTION 4. 7. 6. AND BE IT FURTHER ENACTED, That, except as provided in 12 Section 3 Sections 5 and 6 4 and 5 of this Act, this Act shall take effect July 1, 2023. 13 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.