Today's Law As Amended


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AB-1365 Public contracts: clean concrete.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 3503.1 is added to the Public Contract Code, to read:

3503.1.
 (a) For purposes of this section all of the following definitions apply:
(1) “Concrete” means structural concrete products, specifically ready-mix, shotcrete, precast, and concrete masonry units.
(2) “Environmental Product Declaration” means a supply chain specific Type III environmental product declaration as defined by the International Organization for Standardization (ISO) standard 14025 or similarly robust life-cycle assessment methods that have uniform standards in data collection consistent with the ISO standard 14025, industry acceptance, and integrity.
(A) Environmental Product Declarations shall follow nationally or internationally recognized rules for producing Environmental Product Declarations for the subject material, follow standards established for life-cycle analysis material reporting of global warming potentials, and conform to the ISO standards 14025, 14040, 14044, and 21930.
(B) Beginning January 1, 2026, Environmental Product Declarations must report actual data quality assessments including variability in facility, product, and upstream data for key processes.
(3) “Performance-based specifications” means a contract provision that requires that a structural material achieve specified performance outcomes from the use of the structural material, including, but not limited to, outcomes related to the strength, durability, permeability, or other attributes related to the function of the building material for applied uses, as opposed to requiring that a structural material be produced using a specified manufacturing process, design features, technologies, or proportions of constituent materials.
(4) “Supply chain specific” means an Environmental Product Declaration that includes supply chain specific data for production processes that contribute to 80 percent or more of a product’s cradle-to-gate global warming potential, as defined in ISO standard 21930, and reports the overall percentage of supply chain specific data included.
(b) Beginning January 1, 2022, to the extent practicable, an awarding authority shall require that specifications for a bid or proposal for a project contract only include performance-based specifications for concrete used as a structural material.
(c) (1)  Beginning January 1, 2022, an awarding authority shall require the successful bidder for a contract for an eligible project to submit current Environmental Product Declarations for concrete products before they are installed in the project.
(2) The department shall publish a publicly accessible database with projects anonymized for successful bidders to report the data contained in Environmental Product Declarations submitted pursuant to this subdivision. The department may contract with a qualified third party to create and maintain the database.
(d) Beginning January 1, 2023, when letting contracts for the purchase of 50 cubic yards or more of concrete for use in an eligible project, an awarding authority shall, for the purposes of bid assessment and selection, apply a performance discount rate. The performance discount rate shall provide an artificial price discount not exceeding 5 percent to offered bids with a global warming potential below the 20th percentile of the range of global warming potential data collected from Environmental Product Declarations submitted from the previous year pursuant to subdivision (c). Global warming potential values for concrete products shall be submitted in the form of Environmental Product Declarations that meet the requirements of paragraphs (2) and (4) of subdivision (a).
(1) For bids that include multiple concrete mixes, the global warming potential of all mixes shall be proportionally weighted into a single global warming potential score to serve as the basis for assessment and selection.
(2) Contractors for eligible projects that subcontract services from concrete providers shall require subcontract bids to adhere to the same rules and standards.
(3) The department shall issue guidelines to assist awarding authorities and contracting personnel in implementing this subdivision.
(e) (1) On or before January 1, 2024, the department shall establish, and publish in the State Contracting Manual or a department management memorandum, or make available on the department’s internet website, the maximum acceptable global warming potential for concrete at the industry average of supply chain specific global warming potential emissions. The department shall determine the industry average for concrete by consulting the Environmental Product Declarations submitted pursuant to subdivision (c).
(2) On or before January 1, 2027, and every three years thereafter, the department shall review the maximum acceptable global warming potential for concrete established pursuant to paragraph (1) and adjust that number downward to reflect industry improvements if the department determines that the industry average has changed. At that time, the department shall update the State Contracting Manual, department management memorandum, or information available on the department’s internet website, to reflect that adjustment.