HOUSE ENERGY, ENVIRONMENT AND NATURAL RESOURCES

COMMITTEE SUBSTITUTE FOR

HOUSE BILL 153

57th legislature - STATE OF NEW MEXICO - second session, 2026

 

 

 

 

 

 

 

AN ACT

RELATING TO THE ENVIRONMENT; ENACTING THE LOW-CARBON CONSTRUCTION MATERIAL REBATE ACT; ENACTING THE ENVIRONMENTAL PRODUCT DECLARATION ACT; MAKING AN APPROPRIATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 9 of this act may be cited as the "Low-Carbon Construction Material Rebate Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Low-Carbon Construction Material Rebate Act:

          A. "covered construction materials" means materials used in a construction project, including cement, concrete, asphalt binder, asphalt mixtures, aluminum, steel, glass, roofing material, engineered wood and precast concrete;

          B. "department" means the department of environment;

          C. "emissions baseline" means a calculation of the industry-average greenhouse gas emissions associated with a material;

          D. "emissions benchmark" means the maximum acceptable amount of greenhouse gas emissions associated with a category of covered construction materials eligible for the rebate;

          E. "environmental product declaration" means a declaration that is independently verified and provides a life- cycle assessment of a product's global warming potential and facilitates a comparison of environmental impacts among products fulfilling the same function as set forth in Section 3 of the Low-Carbon Construction Material Rebate Act;

          F. "global warming potential" means the quantity of greenhouse gas emissions associated with a product expressed in terms of carbon dioxide equivalent, expressed using a one-hundred-year time horizon;

          G. "low-carbon construction material" means a covered construction material with a global warming potential at or below the emissions benchmark established by the department;

          H. "material buyer" means a person purchasing low- carbon construction material and using that material for construction;

          I. "material supplier" means a manufacturer, producer or distributor of covered construction materials;

          J. "program" means the low-carbon construction material rebate program;

          K. "project" means a construction project involving more than one residential unit or more than five thousand square feet of nonresidential floor area; and

          L. "rebate" means a payment to a material buyer to offset a portion of the cost of a qualifying purchase.

     SECTION 3. [NEW MATERIAL] ENVIRONMENTAL PRODUCT DECLARATIONS--REQUIREMENTS.--An environmental product declaration shall:

          A. be product- or facility-specific, unless the department determines that only industry-average environmental product declarations are available for a particular covered material;

          B. be independently verified;

          C. facilitate a comparison of environmental impacts between products fulfilling the same function;

          D. meet or exceed internationally recognized standards for environmental product declarations;

          E. have been issued within five years of the date submitted to the department; and

          F. include:

                (1) a life-cycle assessment of a product's global warming potential;

                (2) the manufacturing facility's location;

                (3) the scope of life-cycle analysis;

                (4) the date of issuance;

                (5) the product's specifications and performance characteristics; and

                (6) additional information the department deems necessary.

     SECTION 4. [NEW MATERIAL] LOW-CARBON CONSTRUCTION MATERIAL REBATE PROGRAM ESTABLISHED.--

          A. The department shall establish and administer a "low-carbon construction material rebate program" to provide financial incentives to material buyers who purchase low-carbon construction material.

          B. Subject to appropriation, the program shall provide rebates for low-carbon construction material purchased by a material buyer subject to the requirements and limits established in the Low-Carbon Construction Material Rebate Act.

          C. By no later than January 1, 2027, the department shall promulgate rules to implement the program, including:

                (1) application procedures and required documentation;

                (2) verification and audit requirements;

                (3) procedures for establishing and updating emissions baselines, emissions benchmarks and rebate amounts;

                (4) requirements for environmental product declarations; and

                (5) antifraud and enforcement provisions.

     SECTION 5. [NEW MATERIAL] EMISSIONS BASELINES AND BENCHMARKS.--

          A. The department shall establish emissions baselines for conventionally produced covered construction materials. Emissions baselines shall be based on regional industry-average emissions data, or the best available data source as determined by the department, and shall be updated every three years.

          B. Emissions benchmarks adopted by the department may be fifteen percent lower than the emissions baseline for each material.

          C. The department shall review and may adjust emissions baselines and emissions benchmarks every three years to reduce emissions levels over time. The department shall not increase allowable emissions levels without legislative authorization.

     SECTION 6. [NEW MATERIAL] REBATE STRUCTURE--LIMITS.--

          A. Material buyers shall be eligible for rebates for low-carbon construction material, subject to the following limits:

                (1) a maximum rebate of five hundred thousand dollars ($500,000) per project; and

                (2) a maximum rebate of ten million dollars ($10,000,000) statewide per fiscal year.

          B. The department shall prioritize distribution of rebates based on:

                (1) greatest emissions reductions relative to the emissions baseline for an equivalent conventionally produced material per dollar of rebate;

                (2) greatest emissions reductions relative to the emissions baseline for an equivalent conventionally produced material per unit of material;

                (3) material produced by New Mexico-based manufacturers; and

                (4) other criteria as determined by the department.

     SECTION 7. [NEW MATERIAL] VERIFICATION AND CERTIFICATION REQUIREMENTS.--

          A. To receive a rebate, a material buyer shall submit:

                (1) an environmental product declaration for the low-carbon construction material;

                (2) evidence of the price paid for the low-carbon construction material and the person that paid the price; and

                (3) any additional documentation required by the department.

          B. The department may conduct audits and inspections to verify compliance with program requirements and may require additional documentation or testing.

     SECTION 8. [NEW MATERIAL] REPORTING.--

          A. The department shall submit an annual report to the governor and the appropriate interim legislative committee by October 1 of each year detailing:

                (1) the number and value of rebates issued;

                (2) types and quantities of low-carbon construction material used by rebate recipients;

                (3) estimated greenhouse gas emissions reductions achieved;

                (4) market availability and pricing trends for low-carbon construction material; and

                (5) program effectiveness and recommendations for improvements.

          B. The department shall make rebate awards and program data publicly available on its website.

     SECTION 9. [NEW MATERIAL] ANTIFRAUD PROVISIONS.--

          A. A material buyer or material supplier who knowingly submits false information or fraudulent documentation to obtain rebates under the Low-Carbon Construction Material Rebate Act is guilty of a fourth degree felony pursuant to Section 31-18-15 NMSA 1978 and shall be:

                (1) permanently disqualified from participating in the program;

                (2) required to repay all rebates received through fraud; and

                (3) subject to debarment from state procurement.

          B. The department shall establish procedures for investigating suspected fraud and shall cooperate with law enforcement authorities in prosecution of a claim of fraud.

     SECTION 10. [NEW MATERIAL] SHORT TITLE.--Sections 10 through 13 of this act may be cited as the "Environmental Product Declaration Act".

     SECTION 11. [NEW MATERIAL] DEFINITIONS.--As used in the Environmental Product Declaration Act:

          A. "covered material" includes:

                (1) concrete and concrete mixtures, including ready-mix concrete, shotcrete, precast concrete and concrete masonry units;

                (2) cement;

                (3) asphalt binder and asphalt mixtures;

                (4) steel;

                (5) glass;

                (6) roofing materials;

                (7) insulation materials;

                (8) engineered wood; and

                (9) aluminum;

          B. "department" means the department of environment;

          C. "embodied carbon" means the greenhouse gas emissions generated by the manufacturing, transportation, installation, maintenance and disposal of covered materials used in buildings, roads and other infrastructure;

          D. "environmental product declaration" means a declaration that is independently verified, provides a life-cycle assessment of a product's global warming potential and facilitates a comparison of environmental impacts between products fulfilling the same function; and

          E. "global warming potential" means the quantity of greenhouse gas emissions associated with a product expressed as the carbon dioxide equivalent.

     SECTION 12. [NEW MATERIAL] ENVIRONMENTAL PRODUCT DECLARATION PROGRAM--CREATED--AUTHORITY--POWERS AND DUTIES.--

          A. The "environmental product declaration program" is created in the department to enable the department to:

                (1) assist manufacturers of covered materials with the creation of environmental product declarations that shall be shared with the department;

                (2) receive and analyze data associated with a manufacturer's environmental product declarations; and

                (3) research options for reducing embodied carbon in state construction projects.

          B. The department shall administer the program.

          C. The department may contract for services to assist manufacturers of covered materials with the creation of environmental product declarations that shall be shared with the department.

          D. On or before January 1, 2027, the department shall promulgate rules to implement the Environmental Product Declaration Act, including rules on environmental product declaration verification and auditing procedures and on reporting requirements and formats.

          E. No later than October 1, 2027 and October 1 every year thereafter, the department shall publish a report that includes:

                (1) the number of environmental product declarations provided to the department, organized by type of covered material;

                (2) the geographic distribution of manufacturing facilities;

                (3) an assessment of the number of businesses within the state that manufacture covered materials and are equipped to issue environmental product declarations;

                (4) an assessment of the progress made in creating environmental product declarations for covered materials;

                (5) recommendations for reducing embodied carbon in state construction projects; and

                (6) recommendations for program improvements.

     SECTION 13. [NEW MATERIAL] ENVIRONMENTAL PRODUCT DECLARATIONS--REQUIREMENTS.--An environmental product declaration shall:

          A. be product- or facility-specific, unless the department determines that only industry-average environmental product declarations are available for a particular covered material;

          B. be independently verified;

          C. facilitate a comparison of environmental impacts between products fulfilling the same function;

          D. meet or exceed internationally recognized standards for environmental product declarations;

          E. have been issued within five years of the date submitted to the department; and

          F. include:

                (1) a life-cycle assessment of a product's global warming potential;

                (2) the manufacturing facility's location;

                (3) the scope of life-cycle analysis;

                (4) the date of issuance;

                (5) the name and credentials of the independent verifier;

                (6) the product's specifications and performance characteristics; and

                (7) additional information the department deems necessary.

     SECTION 14. APPROPRIATION.--Twenty-five million dollars ($25,000,000) is appropriated from the general fund to the department of environment for expenditure in fiscal years 2027 through 2029 to provide rebates pursuant to the low-carbon construction material rebate program. The department may expend no more than five percent of the appropriated amount for the reasonable administrative cost of providing the rebates and for administering the Environmental Product Declaration Act. Any unexpended balance remaining at the end of fiscal year 2029 shall revert to the general fund.

     SECTION 15. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2026.

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