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PRINTER'S NO. 2108
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1711
Session of
2025
INTRODUCED BY STEELE, KUZMA, PROBST, HILL-EVANS, SANCHEZ,
D. WILLIAMS, MAYES, MEHAFFIE, KHAN, BRENNAN, RUSNOCK, TAKAC,
CEPEDA-FREYTIZ, ISAACSON AND DALEY, JULY 9, 2025
REFERRED TO COMMITTEE ON ENVIRONMENTAL AND NATURAL RESOURCE
PROTECTION, JULY 10, 2025
AN ACT
Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, providing for concrete innovation; establishing the
Performance Incentive Program; and promulgating regulations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 62 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 34
CONCRETE INNOVATION
Sec.
3401. Scope of chapter.
3402. Definitions.
3403. Performance Incentive Program.
3404. Calculation and availability of performance incentives.
3405. Guidelines and regulations.
3406. Annual report.
§ 3401. Scope of chapter.
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This chapter relates to the low-embodied carbon concrete
performance incentive.
§ 3402. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Carbon capture, utilization and storage technology."
Technologies or methods that:
(1) remove carbon dioxide from the atmosphere or prevent
carbon dioxide emission; and
(2) utilize carbon dioxide in the concrete manufacturing
process resulting in structural performance improvements, the
avoidance of carbon emissions or the permanent sequestration
of carbon emissions in durable materials.
"Commonwealth agency." As defined in section 103 (relating
to definitions).
"Concrete." The term shall include structural masonry or
precast or ready-mix concrete building products.
"Cost of delivery." The total cost of the concrete delivered
to the procurement agency, including costs related to materials,
labor and transportation.
"Department." The Department of General Services of the
Commonwealth.
"Embodied carbon emissions." Carbon emissions generated as a
result of a material's production, including mining, refining,
manufacturing and shipping.
"Environmental product declaration." A product-specific Type
III environmental product declaration that:
(1) conforms to ISO Standard 14025, as published on the
effective date of this section;
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(2) assesses the numeric global warming potential of the
product; and
(3) allows for environmental impact comparisons between
concrete mixes fulfilling the same functions.
"Global warming potential." A numeric value that measures
the total contribution to global warming from the emission of
greenhouse gases or the elimination of greenhouse gas sinks that
results from the production or utilization of concrete.
"Global warming potential baseline." A representative
average of the global warming potential of concrete products in
a region of the United States, derived from:
(1) published regional average data by the National
Ready Mixed Concrete Association or a comparable nationally
recognized source; or
(2) statistically significant samples of environmental
product declarations or equivalent verified data collected
from concrete products used in construction projects in
Pennsylvania.
"Low-embodied carbon concrete." Concrete that has been
certified by the Department of Environmental Protection to
embody lower carbon emissions than the baseline embodied carbon
emissions of conventional concrete as determined by the
Department of Environmental Protection, including, but not
limited to, biomass, ground glass pozzolan and other emerging,
innovative technologies.
"Low-embodied carbon performance incentive" or "performance
incentive." A payment issued to a qualified vendor under this
chapter as compensation for supplying a specified volume of
concrete for use in a capital project or improvement funded in
whole or in part by the Commonwealth, where the concrete's
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verified global warming potential is at least 20% lower than the
applicable global warming potential baseline.
"Procurement agency." A Commonwealth agency engaged in
procurement.
"Program." The Performance Incentive Program established
under section 3403(a) (relating to Performance Incentive
Program).
"Qualified vendor." A contractor, subcontractor, supplier or
other entity that provides concrete for use in a qualifying
project and meets the documentation and performance requirements
established under this chapter.
"Qualifying project." A capital project or public
improvement funded in whole or in part by the Commonwealth,
including through contracts with private vendors or
subcontractors, for which performance incentive payments under
this chapter may be issued.
§ 3403. Performance Incentive Program.
(a) Establishment.--The Performance Incentive Program is
established within the department to provide performance
incentives in accordance with this chapter.
(b) Application.--A qualified vendor may apply to the
department for a performance incentive on a form and in a manner
as prescribed by the department.
(c) Criteria.--A qualified vendor shall:
(1) Deliver low-embodied carbon concrete in accordance
with a contract for a project funded in whole or in part by
the Commonwealth requiring 50 cubic yards or the equivalent
in precast materials.
(2) Submit with the application:
(i) A notarized copy of an invoice to the contractor
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stating the amount and cost of the concrete or precast
materials purchased from the vendor.
(ii) A copy of the proof of delivery signed by the
contractor.
(iii) All environmental product declarations for the
products supplied.
(iv) Any other documentation required by the
department pertaining to relevant product and material
certifications, if applicable.
(d) Review and approval.--The department, in consultation
with the Department of Environmental Protection, shall review
and issue an approval or disapproval within 60 days of receiving
the documentation required under subsection (c). An approved
vendor shall receive payment for the performance incentive
within 60 days of document submission by the vendor.
§ 3404. Calculation and availability of performance incentives.
(a) Calculation.--Performance incentives shall be calculated
as follows:
(1) Five percent of the cost of delivery for verified
low-embodied carbon concrete.
(2) Three percent of the cost of delivery for concrete
incorporating carbon capture, utilization and storage
technology or any other emerging, innovative technology if a
minimum of 50% of the qualifying global warming potential
value is the result of the use of one or more of such
technologies.
(3) If both criteria are met, the total payment shall
not exceed 8% of the cost of delivery.
(b) Funding availability.--The department shall make at
least $5,000,000 in performance incentives available annually,
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which shall be distributed on a first-come, first-served basis.
§ 3405. Guidelines and regulations.
The department, in consultation with the Department of
Environmental Protection, shall develop written guidelines and
promulgate regulations within one year of the effective date of
this section. The guidelines shall include:
(1) Determination of global warming potential baselines.
(2) Thresholds for qualifying concrete delivery volumes.
(3) A payment formula based upon global warming
potential reduction.
(4) Standards for evaluating environmental product
declarations and qualifying documentation costs.
(5) Any additional submission requirements for
performance incentive eligibility.
§ 3406. Annual report.
No later than January 1 following the effective date of this
section and annually thereafter, the department shall submit a
report to the General Assembly on the effectiveness of the
program. The report shall include the following:
(1) Names of vendors receiving payments and payment
amounts.
(2) Evaluation of program performance.
(3) Recommendations for improvements.
(4) Recommendations for funding increases.
Section 2. This act shall take effect in 60 days.
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