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. *sb0424* SENATE BILL 424 P2 3lr1279 SB 961/22 – B&T CF HB 261 By: Senators Elfreth and Feldman Introduced and read first time: February 2, 2023 Assigned to: Budget and Taxation Committee Report: Favorable with amendments Senate action: Adopted Read second time: March 23, 2023 CHAPTER ______ AN ACT concerning 1 Public Projects – Global Warming Potential of Materials 2 Eligible Projects – Procurement 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 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 Fund for a certain purpose; and generally relating to the global warming potential 23 of materials in public eligible projects. 24 2 SENATE BILL 424 BY adding to 1 Article – State Finance and Procurement 2 Section 4–901 through 4–905 to be under the new subtitle “Subtitle 9. Buy Clean 3 Maryland Act” 4 Annotated Code of Maryland 5 (2021 Replacement Volume and 2022 Supplement) 6 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7 That the Laws of Maryland read as follows: 8 Article – State Finance and Procurement 9 SUBTITLE 9. BUY CLEAN MARYLAND ACT. 10 4–901. 11 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 12 INDICATED. 13 (B) “ELIGIBLE MATERIAL ” MEANS ANY CEMENT OR CONCRETE MIXTURE 14 USED IN THE CONSTRUC TION OF A PUBLIC AN ELIGIBLE PROJECT. 15 (C) (1) “ELIGIBLE PROJECT ” MEANS A PUBLIC PROJECT AS DEFINED A 16 CAPITAL PROJECT DESC RIBED IN § 3–602 3–602.1(C) OF THIS ARTICLE. 17 (2) “ELIGIBLE PROJECT ” DOES NOT INCLUDE ANY MAINTENANCE 18 PROGRAM FOR THE UPKE EP OF A PUBLIC AN ELIGIBLE PROJECT. 19 (D) “GLOBAL WAR MING POTENTIAL ” MEANS THE DEGREE THA T A GIVEN 20 MASS OF A CHEMICAL C ONTRIBUTES TO GLOBAL WARMING OVER A GIVEN TIME 21 PERIOD WHEN COMPARED TO THE SAME MASS OF CARBON DIOXIDE . 22 (E) “GREENHOUSE GAS ” HAS THE MEANING STAT ED IN § 2–1202 OF THE 23 ENVIRONMENT ARTICLE. 24 4–902. 25 IN ADMINISTERING THIS SUBTITLE, THE DEPARTMENT SHALL STRI VE TO 26 ACHIEVE A CONTINUOUS REDUCTION OF GREENHO USE GAS EMISSIONS OV ER TIME. 27 4–903. 28 (A) (1) ON OR BEFORE DECEMBER 31, 2024, PRODUCERS OF ELIGIBL E 29 MATERIALS SHALL SUBM IT ENVIRONMENTAL PRO DUCT DECLARATIONS TO THE 30 DEPARTMENT . 31 SENATE BILL 424 3 (2) THE DEPARTMENT SHALL ANAL YZE ENVIRONMENTAL PR ODUCT 1 DECLARATIONS AND ASS ESS GLOBAL WARMING P OTENTIAL FOR ELIGIBL E 2 MATERIALS USED IN AN ELIGIBLE PROJECT IN ACCORDANCE WITH THIS SECTION. 3 (B) ON OR BEFORE JANUARY 1, 2025 2026, THE DEPARTMENT SHALL , IN 4 CONSULTATION WITH TH E DEPARTMENT OF TRANSPORTATION , ESTABLISH A 5 MAXIMUM ACCEPTABLE G LOBAL WARMING POTENT IAL FOR EACH CA TEGORY OF 6 ELIGIBLE MATERIALS U SED IN AN ELIGIBLE P ROJECT IN ACCORDANCE WITH THIS 7 SECTION. 8 (B) (C) THE DEPARTMENT SHALL : 9 (1) BASE THE MAXIMUM ACC EPTABLE GLOBAL WARMI NG POTENTIAL 10 ON THE INDUSTRY AVER AGE OF GLOBAL WARMIN G POTENTIAL EMISSION S FOR THAT 11 MATERIAL; 12 (2) DETERMINE THE INDUST RY AVERAGE OF GLOBAL WARMING 13 POTENTIAL EMISSIONS , WHICH MAY INCLUDE TR ANSPORTATION –RELATED 14 EMISSIONS, BY CONSULTING NATION ALLY OR INTERNATIONA LLY RECOGNIZED 15 DATABASES OF ENVIRON MENTAL PRODUCT DECLA RATIONS; AND 16 (3) EXPRESS THE MAXIMUM ACCEPTABLE GLOBAL WA RMING 17 POTENTIAL AS A NUMBE R THAT STATES THE MA XIMUM ACCEPTABLE GLO BAL 18 WARMING POTENTIAL FO R EACH CATEGORY OF ELI GIBLE MATERIALS , CONSISTENT 19 WITH CRITERIA IN AN ENVIRONMENTAL PRODUC T DECLARATION . 20 (C) (D) THE DEPARTMENT MAY : 21 (1) ESTABLISH ADDITIONAL SUBCATEGORIES WITHIN EACH 22 CATEGORY OF ELIGIBLE MATERIAL WITH DISTIN CT MAXIMUM ACCEPTABL E GLOBAL 23 WARMING POTENTIAL LI MITS; 24 (2) ESTABLISH A MAXIMUM ACCEPTABLE GLOBAL WA RMING 25 POTENTIAL FOR EACH M ATERIAL CATEGORY IN THE AGGREGATE ; AND 26 (3) CONSULT WITH ANY OTH ER RELEVANT UNIT OF STATE 27 GOVERNMENT WHEN ESTA BLISHING A MAXIMUM A CCEPTABLE GLOBAL WAR MING 28 POTENTIAL FOR EACH C ATEGORY OF ELIGIBLE MATERIALS USED IN AN ELIGIBLE 29 PROJECT. 30 (D) (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , BY 31 JANUARY 1, 2028 2029, AND EVERY 3 YEARS THEREAFTER , THE DEPARTMENT 32 SHALL REVIEW THE MAX IMUM ACCEPTABLE GLOB AL WARMING POTENTIAL FOR 33 4 SENATE BILL 424 EACH CATEGORY OF ELI GIBLE MATERIALS AND MAY ADJUST THE POTEN TIAL FOR 1 ANY CATEGORY TO REFL ECT INDUSTRY CONDITI ONS. 2 (2) THE DEPARTMENT MAY NOT AD JUST THE GLOBAL WARM ING 3 POTENTIAL UPWARD FOR ANY CATEGORY OF ELIG IBLE MATERIAL. 4 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 5 as follows: 6 Article – State Finance and Procurement 7 4–904. 8 (A) (1) FOR ANY SOLICITATION FOR A CONTRACT FOR A N ELIGIBLE 9 PROJECT, A UNIT OF STATE GOVERNMENT SHAL L SPECIFY THE ELIGIB LE 10 MATERIALS THAT WILL BE USED IN THE PROJECT AND THE REASONABLE MINIMUM 11 USAGE THRESHOLDS BEL OW WHICH THE REQUIRE MENTS OF THIS SECTIO N DO NOT 12 APPLY. 13 (2) A UNIT OF STATE GOVERNMENT MAY INCLUDE IN A SOLICIT ATION 14 FOR AN ELIGIBLE PROJ ECT A GLOBAL WARMING POTENTIAL FOR ANY ELIGIBLE 15 MATERIAL THAT IS LOW ER THAN THE MAXIMUM ACCEPTABLE GLOBAL WA RMING 16 POTENTIAL FOR THAT M ATERIAL AS DETERMINE D UNDER § 4–903 OF THIS 17 SUBTITLE. 18 (B) THE DEPARTMENT SHALL REQU IRE A SUCCESSFUL BID DER OR 19 OFFEROR OF AN ELIGIB LE PROJECT TO SUBMIT , FOR EACH ELIGIBLE MATERI AL 20 PROPOSED TO BE USED IN THE ELIGIBLE PROJ ECT: 21 (1) A CURRENT ENVIRONMEN TAL PRODUCT DECLARAT ION, TYPE III, 22 AS DEFINED BY THE INTERNATIONAL ORGANIZATION FOR STANDARDIZATION 23 STANDARD 14025; OR 24 (2) A SIMILARLY ROBUST L IFE CYCLE ASSE SSMENT METHOD THAT 25 INCLUDES UNIFORM STA NDARDS IN DATA COLLE CTION. 26 (C) A CONTRACTOR MAY NOT I NSTALL ANY ELIGIBLE MATERIALS ON THE 27 ELIGIBLE PROJECT UNT IL THE CONTRACTOR SU BMITS A FACILITY –SPECIFIC 28 ENVIRONMENTAL PRODUC T DECLARATION FOR TH AT ELIGIBLE MATERIA L AS 29 REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION. 30 (D) IF AN ENVIRONMENTAL P RODUCT DECLARATION I S NOT AVAILABLE FOR 31 AN ELIGIBLE MATERIAL , THE CONTRACTOR SHALL NOTIFY THE UNIT AND USE AN 32 SENATE BILL 424 5 ALTERNATIVE ELIGIBLE MATERIAL WITH AN ENV IRONMENTAL PRODUCT 1 DECLARATION. 2 (E) THE DEPARTMENT MAY WAIVE THE REQUIREMENTS OF THIS SECTION 3 IF IT DETERMINES THA T REQUIRING THE RELE VANT ELIGIBLE MATERI ALS WOULD: 4 (1) BE TECHNICALLY INFEA SIBLE; 5 (2) RESULT IN A SIGNIFIC ANT INCREASE IN PROJ ECT COST; 6 (3) RESULT IN A SIGN IFICANT DELAY IN PRO JECT COMPLETION ; OR 7 (4) RESULT IN ONLY ONE S OURCE OR MANUFACTURE R BEING ABLE 8 TO PROVIDE THE NECES SARY MATERIALS . 9 4–905. 10 (A) ON OR BEFORE DECEMBER 1, 2025, AND EACH YEAR THEREA FTER, THE 11 DEPARTMENT SHALL SUBM IT AN ANNUAL REPORT , IN ACCORDANCE WITH § 2–1257 12 OF THE STATE GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY THAT 13 INCLUDES: 14 (1) WHAT THE DEPARTMENT HAS LEARNE D ABOUT HOW TO IDENT IFY 15 AND QUANTIFY EMBODIE D CARBON IN BUILDING MATERIALS, INCLUDING LIFE 16 CYCLE COSTS; AND 17 (2) ANY OBSTACLES THE DEPARTMENT , BIDDERS, OR OFFERORS 18 HAVE ENCOUNTERED IN IDENTIFYING AND QUAN TIFYING EMBODIED CAR BON IN 19 BUILDING MATERIALS . 20 (B) THE REPORT SUBMITTED ON OR BEFORE DECEMBER 1, 2025, SHALL 21 INCLUDE A DESCRIPTIO N OF THE METHOD THAT THE DEPARTMENT US ED TO 22 DEVELOP THE MAXIMUM ACCEPTABLE GLOBAL WA RMING POTENTIAL FOR EACH 23 CATEGORY OF ELIGIBLE MATERIALS. 24 SECTION 3. AND BE IT FURTHER ENACTED, That: 25 (a) (1) There is an Environmental Product Declaration Assistance Fund. 26 (2) The purpose of the Fund is to award grants to producers of eligible 27 materials to support the development, standardization, and transparency of environmental 28 product declarations for construction materials and products. 29 (b) The Department of Commerce shall administer the Fund. 30 6 SENATE BILL 424 (c) The Fund shall consist of money appropriated in the State budget to the Fund. 1 SECTION 3. 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall 2 take effect July 1, 2025 2026. 3 SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 4 effect July 1, 2023. It shall remain effective for a period of 1 year and 6 months and, at the 5 end of December 31, 2024, Section 3 of this Act shall be abrogated and of no further force 6 and effect. 7 SECTION 4. 6. AND BE IT FURTHER ENACTED, That, except as provided in 8 Section 3 Sections 4 and 5 of this Act, this Act shall take effect July 1, 2023. 9 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.