N.J. Stat. § 13:1D-70

Current through L. 2024, c. 62.

Section 13:1D-70 - Tax credits, low embodied carbon concrete, Department of Environmental Protection, Division of Taxation, Department of the Treasury; report to Governor, Legislature; definitions

a. The Department of Environmental Protection, in consultation with the Director of the Division of Taxation in the Department of the Treasury, shall provide:

(1) for the purpose of calculating tax credits to be issued pursuant to P.L.2023, c.4 (C.13:1D-70 et al.), global warming potential baselines for concrete mixes supplied pursuant to contracts with State agencies;

(2) thresholds for low embodied carbon concrete and concrete that incorporates carbon capture, utilization, and storage technology to qualify for a tax credit pursuant to P.L.2023, c.4 (C.13:1D-70 et al.), which the department may review and modify pursuant to advancements in low carbon concrete technology or future State laws, regulations, or orders pertaining to the reduction of greenhouse gas emissions;

(3) formulae for the tax credits issued pursuant to P.L.2023, c.4 (C.13:1D-70 et al.) for (1) low embodied carbon concrete and (2) concrete that incorporates carbon capture, utilization, and storage technology. The formulae shall provide that the amount of each tax credit is proportional to the reduction of the global warming potential value below the baseline;

(4) a uniform process for concrete producers to certify that concrete is low embodied carbon concrete, or that it utilizes carbon capture, utilization, and storage technology, and for determining the global warming potential value of concrete; and

(5) any forms and guidance that the department determines are necessary for the submissions required to receive the tax credits allowed pursuant to P.L.2023, c.4 (C.13:1D-70 et al.) or to otherwise implement the provisions of P.L.2023, c.4 (C.13:1D-70 et al.).

b. No later than three years after the effective date of P.L.2023, c.4 (C.13:1D-70 et al.), the Commissioner of Environmental Protection, in consultation with the State Treasurer, shall prepare and submit a report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature, containing a cost-benefit analysis of the tax credits established pursuant to P.L.2023, c.4 (C.13:1D-70 et al.), in order to quantify the budgetary impact of the program relative to its carbon reduction impact. The report shall recommend whether the program should be continued, modified, or repealed, and include any recommendations for legislative or regulatory action to improve the program.

c. As used in this section:

"Carbon capture, utilization, and storage technology" means technologies or methods to remove carbon dioxide generated by the concrete manufacturing process from the flue gas or the atmosphere, and to recycle the carbon dioxide either through utilization of the captured carbon dioxide in the concrete manufacturing process, or through safe and permanent storage of the captured carbon dioxide.

"Concrete" means structural and non-structural masonry, and pre-cast and ready-mix concrete building products.

"Department" means the Department of Environmental Protection.

"Director" means Director of the Division of Taxation in the Department of the Treasury.

"Embodied carbon emissions" means carbon emissions generated as a result of a material's production, including mining, refining, manufacturing, and shipping.

"Global warming potential" means 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.

"Low embodied carbon concrete" means concrete that has been certified to embody lower carbon emissions, as measured by a global warming potential metric, than the baseline embodied carbon emissions of conventional concrete made with Portland cement. Low embodied carbon emissions may be achieved through any combination of:

(1) higher energy efficiency at the level of the concrete or cement plant;

(2) low carbon fuel substitution at the level of the concrete or cement plant;

(3) local production of, and use of locally sourced material in, the concrete, resulting in reduced concrete delivery miles and reduced emissions from transportation;

(4) the reduction of clinker content in the cement component of concrete, or the substitution of clinker content with lower carbon-intensive alternative materials such as ground, granulated blast furnace slag, fly ash, or recycled ground-glass pozzolan;

(5) the capture and storage of point source carbon dioxide emissions during the cement or concrete production process; or

(6) the utilization and storage of carbon in concrete materials.

"Portland cement" means hydraulic cement produced by pulverizing clinkers in combination with one or more of the forms of calcium sulfate.

N.J.S. § 13:1D-70

Added by L. 2023, c. 4, s. 1, eff. 7/30/2023, app. to privilege periods beginning on or after the January 1 next following the effective date of the bill.