WES MOORE, Governor Ch. 202 – 1 – Chapter 202 (House Bill 261) AN ACT concerning Public Eligible Projects – Global Warming Potential of Materials Procurement of Construction Materials (Buy Clean Maryland Act) FOR the purpose of requiring producers of eligible materials to submit certain declarations to the Department of General Services by a certain date; requiring the Department to assess and to establish a maximum acceptable global warming potential for certain categories of eligible materials used in certain eligible projects; requiring the Department to review the maximum acceptable global warming potential for each category of eligible materials and authorizing the Department to make certain adjustments according to a certain schedule; prohibiting the Department from increasing the maximum acceptable global warming potential for a category of eligible materials; requiring a unit of State government to specify the eligible materials that will be used in an eligible project in the solicitation for an eligible project; requiring a successful bidder or offeror of an eligible project to submit certain information about each eligible material proposed to be used in an eligible project; prohibiting a contractor from installing any eligible materials on an eligible project until the contractor submits the required information for the eligible material; authorizing the Department to waive certain requirements concerning the use of eligible materials on eligible projects under certain circumstances; providing that the Department shall strive to achieve a continuous reduction of greenhouse gas emissions over time; establishing an Environmental Product Declaration Assistance Fund for a certain purpose; and generally relating to the global warming potential of materials in public eligible projects. BY adding to Article – State Finance and Procurement Section 4–901 through 4–905 to be under the new subtitle “Subtitle 9. Buy Clean Maryland Act” Annotated Code of Maryland (2021 Replacement Volume and 2022 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – State Finance and Procurement SUBTITLE 9. BUY CLEAN MARYLAND ACT. 4–901. Ch. 202 2023 LAWS OF MARYLAND – 2 – (A) IN THIS SUBTITLE THE FOLLOWI NG WORDS HAVE THE ME ANINGS INDICATED. (B) “ELIGIBLE MATERIAL ” MEANS ANY CEMENT OR CONCRETE MIXTURE USED IN THE CONSTRUC TION OF A PUBLIC AN ELIGIBLE PROJECT. (C) (1) “ELIGIBLE PROJECT ” MEANS A PUBLIC PROJE CT AS DEFINED INCLUDES MEANS A CAPITAL PROJECT DE SCRIBED IN § 3–602 3–602.1(C) OF THIS ARTICLE. (2) “ELIGIBLE PROJECT ” DOES NOT INCLUDE ANY MAINTENANCE PROGRAM FOR THE UPKE EP OF A PUBLIC AN ELIGIBLE PROJECT. (D) “GLOBAL WARMING POTENT IAL” MEANS THE DEGREE THA T A GIVEN MASS OF A CHEMICAL CONTRIBUTES TO GLOBAL WARMING OV ER A GIVEN TIME PERIOD WHEN COMPARED TO THE SAME MASS OF CARBON DIOXIDE . (E) “GREENHOUSE GAS ” HAS THE MEANING STAT ED IN § 2–1202 OF THE ENVIRONMENT ARTICLE. 4–902. IN ADMINISTERING THIS SUBTITLE, THE DEPARTMENT SHALL STRIVE TO ACHIEVE A CONTINUOUS REDUCTION OF GREENHO USE GAS EMISSIONS OV ER TIME. 4–903. (A) (1) ON OR BEFORE DECEMBER 31, 2024, PRODUCERS OF ELIGIBL E MATERIALS SHALL SUBM IT ENVIRONMENTAL PRO DUCT DECLARATIONS TO THE DEPARTMENT . (2) THE DEPARTME NT SHALL ANALYZE ENV IRONMENTAL PRODUCT DECLARATIONS AND ASS ESS GLOBAL WARMING P OTENTIAL FOR ELIGIBL E MATERIALS USED IN AN ELIGIBLE PROJECT IN ACCORDANCE WITH THIS SECTION. (B) ON OR BEFORE JANUARY 1, 2025 2026, THE DEPARTMENT SHALL , IN CONSULTATION WITH THE DEPARTMENT OF TRANSPORTATION , ESTABLISH A MAXIMUM ACCEPTABLE G LOBAL WARMING POTENT IAL FOR EACH CATEGOR Y OF ELIGIBLE MATERIALS U SED IN AN ELIGIBLE P ROJECT IN ACCORDANCE WITH THIS SECTION. (B) (C) THE DEPARTMENT SHALL : WES MOORE, Governor Ch. 202 – 3 – (1) BASE THE MAXIMUM ACC EPTABLE GLOBAL WARMING POT ENTIAL ON THE INDUSTRY AVER AGE OF GLOBAL WARMIN G POTENTIAL EMISSION S FOR THAT MATERIAL; (2) DETERMINE THE INDUST RY AVERAGE OF GLOBAL WARMING POTENTIAL EMISSIONS , WHICH MAY INCLUDE TR ANSPORTATION –RELATED EMISSIONS, BY CONSULTING NATI ONALLY OR INTERNATIO NALLY RECOGNIZED DATABASES OF ENVIRON MENTAL PRODUCT DECLA RATIONS; AND (3) EXPRESS THE MAXIMUM ACCEPTABLE GLOBAL WA RMING POTENTIAL AS A NUMBE R THAT STATES THE MA XIMUM ACCEPTABLE GLO BAL WARMING POTENTIAL FO R EACH CATEGORY OF E LIGIBLE MATERIALS, CONSISTENT WITH CRITERIA IN AN ENVIRONMENTAL PRODUC T DECLARATION . (C) (D) THE DEPARTMENT MAY : (1) ESTABLISH ADDITIONAL SUBCATEGORIES WITHIN EACH CATEGORY OF ELIGIBLE MATERIAL WITH DISTIN CT MAXIMUM ACCEPTABL E GLOBAL WARMING POTENTIAL LI MITS; (2) ESTABLISH A MAXIMUM ACCEPTABLE GLOBAL WA RMING POTENTIAL FOR EACH M ATERIAL CATEGORY IN THE AGGREGATE ; AND (3) CONSULT WITH ANY OTH ER RELEVANT UNIT OF STATE GOVERNMENT WHEN ESTA BLISHING A MAXIMUM A CCEPTABLE GLOBAL WAR MING POTENTIAL FOR EACH CATEGORY OF ELIGIBLE MATERIALS USED IN AN ELIGIBLE PROJECT. (D) (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , BY JANUARY 1, 2028 2029, AND EVERY 3 YEARS THEREAFTER , THE DEPARTMENT SHALL REVIEW THE MAX IMUM ACCEPTABLE GLOB AL WARMING POTENTIAL FOR EACH CATEGORY OF ELIGI BLE MATERIALS AND MA Y ADJUST THE POTENTI AL FOR ANY CATEGORY TO REFL ECT INDUSTRY CONDITI ONS. (2) THE DEPARTMENT MAY NOT AD JUST THE GLOBAL WARM ING POTENTIAL UPWARD FOR ANY CATEGORY OF ELIG IBLE MATERIAL. SECTION 2. AND BE IT FURTHER E NACTED, That the Laws of Maryland read as follows: Article – State Finance and Procurement 4–904. Ch. 202 2023 LAWS OF MARYLAND – 4 – (A) (1) FOR ANY SOLICITATION FOR A CONTRACT FOR A N ELIGIBLE PROJECT, A UNIT OF STATE GOVERNMENT SHAL L SPECIFY THE ELIGIB LE MATERIALS THAT WILL BE USED IN THE PROJECT AND THE REASONABLE MINIMUM USAGE THRESHOLDS BEL OW WHICH THE REQUIRE MENTS OF THIS SECTIO N DO NOT APPLY. (2) A UNIT OF STATE GOVERNMENT MAY INCLUDE IN A SOLICIT ATION FOR AN ELIGIBLE PROJ ECT A GLOBAL WARMING POTENTIAL FOR ANY EL IGIBLE MATERIAL THAT IS LOWER THAN T HE MAXIMUM ACCEPTABL E GLOBAL WARMING POTENTIAL FOR THAT M ATERIAL AS DETERMINE D UNDER § 4–903 OF THIS SUBTITLE. (B) THE DEPARTMENT SHALL REQU IRE A SUCCESSFUL BID DER OR OFFEROR OF AN ELIGIB LE PROJECT TO SUBMIT , FOR EACH ELIGIBLE MA TERIAL PROPOSED TO BE USED IN THE ELIGIBLE PROJ ECT: (1) A CURRENT ENVIRONMEN TAL PRODUCT DECLARAT ION, TYPE III, AS DEFINED BY THE INTERNATIONAL ORGANIZATION FOR STANDARDIZATION STANDARD 14025; OR (2) A SIMILARLY ROBUST L IFE CYCLE ASSESSMENT METHOD THAT INCLUDES UNIFORM STANDA RDS IN DATA COLLECTI ON. (C) A CONTRACTOR MAY NOT I NSTALL ANY ELIGIBLE MATERIALS ON THE ELIGIBLE PROJECT UNT IL THE CONTRACTOR SU BMITS A FACILITY –SPECIFIC ENVIRONMENTAL PRODUC T DECLARATION FOR TH AT ELIGIBLE MATERIAL AS REQUIRED UNDER SU BSECTION (B) OF THIS SECTION. (D) IF AN ENVIRONMENTAL P RODUCT DECLARATION I S NOT AVAILABLE FOR AN ELIGIBLE MATERIAL , THE CONTRACTOR SHALL NOTIFY THE UNIT AND USE AN ALTERNATIVE ELIGIBLE MATERIAL WITH AN ENV IRONMENTAL PRODUCT DECLARATION . (E) THE DEPARTMENT MAY WAIVE THE REQUIREMENTS OF THIS SECTION IF IT DETERMINES THA T REQUIRING THE RELE VANT ELIGIBLE MATERI ALS WOULD: (1) BE TECHNICALLY INFEA SIBLE; (2) RESULT IN A SIGNIFIC ANT INCREASE IN PROJ ECT COST; (3) RESULT IN A SIGNIFIC ANT DELAY IN PROJECT COMPLETION ; OR WES MOORE, Governor Ch. 202 – 5 – (4) RESULT IN ONLY ONE S OURCE OR MANUFACTURE R BEING ABLE TO PROVIDE THE NECES SARY MATERIALS . 4–905. (A) ON OR BEFORE DECEMBER 1, 2025, AND EACH YEAR THEREA FTER, THE DEPARTMENT SHALL SUBM IT AN ANNUAL REPORT , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY THAT INCLUDES: (1) WHAT THE DEPARTMENT HAS LEARNE D ABOUT HOW TO IDENT IFY AND QUANTIFY EMBODIE D CARBON IN BUILDING MATERIALS, INCLUDING LIFE CYCLE COSTS; AND (2) ANY OBSTACLES THE DEPARTMENT, BIDDERS, OR OFFERORS HAVE ENCOUNTERED IN IDENTIFYING AND QUAN TIFYING EMBODIED CAR BON IN BUILDING MATERIALS . (B) THE REPORT SUBMITTED ON OR BEFORE DECEMBER 1, 2025, SHALL INCLUDE A DESCRIPTIO N OF THE METHOD THAT THE DEPARTMENT USED TO DEVELOP THE M AXIMUM ACCEPTABLE GL OBAL WARMING POTENTI AL FOR EACH CATEGORY OF ELIGIBLE MATERIALS. SECTION 3. AND BE IT FURTHER ENACTED, That: (a) (1) There is an Environmental Product Declaration Assistance Fund. (2) The purpose of the Fund is to award grants to producers of eligible materials to support the development, standardization, and transparency of environmental product declarations for construction materials and products. (b) The Department of Commerce shall administer the Fund. (c) The Fund shall consist of money appropriated in the State budget to the Fund. SECTION 4. AND BE IT FURTHER ENACTED, That: (a) The Maryland Green Building Council shall examine: (1) the use of environmental product declarations to measure the climate impact of construction materials produced by the State, including glass, steel, and wood; (2) the use of performance incentives to encourage adoption of low–carbon materials and methods by manufacturers that provide construction materials for State–funded projects; Ch. 202 2023 LAWS OF MARYLAND – 6 – (3) the establishment of an expedited product evaluation, testing, and approval protocol for low–carbon products; (4) the implementation of performance–based specification standards for construction materials, including requirements that a structural material achieve specified performance–based outcomes from the use of structural material, including outcomes related to strength, durability, permeability, or other attributes related to the function of building material for applied uses; and (5) the use of methods of compliance, including specifications based on maximum potential for global warming. (b) In examining the items under subsection (a) of this section, the Maryland Green Building Council shall consult with: (1) any relevant associations that set industry standards for the procurement of low–carbon construction products; and (2) affected contractors and subcontractors to consider both environmental and health and safety impacts. (c) On or before September 1, 2024, the Maryland Green Building Council shall report its findings and recommendations to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly. SECTION 3. 5. 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take effect July 1, 2025 2026. SECTION 6. 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take effect July 1, 2023. It shall remain effective for a period of 1 year and 6 months and, at the end of December 31, 2024, Section 3 of this Act shall be abrogated and of no further force and effect. SECTION 4. 7. 6. AND BE IT FURTHER ENACTED, That, except as provided in Section 3 Sections 5 and 6 4 and 5 of this Act, this Act shall take effect July 1, 2023. Approved by the Governor, April 24, 2023.