HOUSE BILL 524
57th legislature - STATE OF NEW MEXICO - first session, 2025
INTRODUCED BY
Meredith A. Dixon
AN ACT
RELATING TO ADVANCE PURCHASE COMMITMENTS; CREATING A PROGRAM FOR THE AWARDING OF ADVANCE PURCHASE COMMITMENTS FOR THE PURCHASE, THREE OR MORE YEARS IN THE FUTURE, OF LOW-EMISSIONS CEMENT, CONCRETE, ASPHALT BINDER OR ASPHALT MIXTURES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] ADVANCE PURCHASE COMMITMENT-- AUTHORITY--REQUIREMENTS--PRIORITIES--ASSIGNMENT.--
A. By January 1, 2026, the department shall establish a program within the department for the awarding of advance purchase commitments with the objective of encouraging innovation and emissions reductions and establishing market demand for low-emissions cement, concrete, asphalt binder or asphalt mixtures. An advance purchase commitment may be awarded under the program only if:
(1) a private entity submits to the department a statement describing the quantity and cost of the low-emissions cement, concrete, asphalt binder or asphalt mixture for which the advance purchase commitment is sought and:
(a) an environmental product declaration;
(b) if a private entity does not have sufficient production to generate an environmental product declaration, a life cycle assessment of the entity's applicable product that is consistent with the standards of the international organization for standardization or, if that organization no longer exists, a national or international standard development organization selected by the department; or
(c) a preliminary environmental product declaration that the department shall verify within one year of fulfillment of delivery of materials pursuant to the advance purchase commitment; and
(2) for each submission, the department confirms that:
(a) the embodied greenhouse gas emissions of the applicable low-emissions cement, concrete, asphalt binder or asphalt mixture meets or exceeds the threshold established by the United States secretary of energy under Section 458(i)(2) of the federal Energy Independence and Security Act of 2007; and
(b) the applicable low-emissions cement, concrete, asphalt binder or asphalt mixture meets all technical specifications and requirements established by the department.
B. In awarding advance purchase commitments pursuant to this section, the department shall prioritize awards based on the following factors:
(1) the degree of greenhouse gas emissions reduced during or in connection with the production of the applicable low-emissions cement, concrete, asphalt binder or asphalt mixture;
(2) the anticipated suitability of the low-emissions cement, concrete, asphalt binder or asphalt mixture for its intended use;
(3) the potential of the advance purchase commitment to increase the availability of, or financing for, low-emissions cement, concrete, asphalt binder or asphalt mixtures in New Mexico; and
(4) the utilization or mineralization of carbon dioxide in the low-emissions cement, concrete, asphalt binder or asphalt mixture, but only if it does not lead to positive net carbon dioxide emissions.
C. A contract entered into or material purchased pursuant to this section may be assigned to a local transportation authority at the discretion of the secretary of transportation.
D. As used in this section:
(1) "advance purchase commitment" means a binding commitment from the department to purchase, three or more years in the future, from a private entity, a specified minimum quantity of conforming low-emissions cement, concrete, asphalt binder or asphalt mixtures at a specified minimum price; and
(2) "department" means the department of transportation.
SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.
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