Environmental Product Declaration.  Embodied carbon?also known as embodied greenhouse gas emissions?refers to the amount of greenhouse gas emissions associated with the extraction, production, transport, and manufacturing stages of a product's life.

An Environmental Product Declaration (EPD) is a document that presents environmental information on the lifecycle of a product, including a measurement of embodied greenhouse gas emissions of construction material and products.  EPDs are created according to internationally-recognized standards, are third-party verified or self-declared, and may be based on industry averages or be specific to individual products or facilities.  The International Organization for Standardization (ISO) has published specifications for developing EPDs.

Health Product Declarations.  The Health Product Declaration Open Standard (HPDOS) is a standardized format for reporting building product content and associated health information.  The HPDOS is managed by the Health Product Declaration Collaborative, a nonprofit member organization whose membership includes industry and advocacy representatives.

Federal Buy Clean Initiative.  In 2021 through the Federal Buy Clean Initiative, the United States Government launched a Buy Clean Task Force and initiative promoting the use of low-carbon, domestically-made construction materials in federal procurement and federally-funded projects.

Office of Minority and Women's Business Enterprises.  The state Office of Minority and Women's Business Enterprises (OMWBE) certifies small businesses owned and controlled by minority, women, and socially- and economically-disadvantaged persons.  State agencies and educational institutions must consult with the OMWBE to afford the businesses the maximum practicable opportunity to participate in public contracts for public works, goods, and services.

Buy Clean Pilot Projects and Database.  Building upon a 2018 pilot, the 2021-23 biennial capital budget required the Department of Commerce (Commerce) to coordinate with the University of Washington College of Built Environments (UW) to test proposed methods and availability of EPDs and working condition information for manufacturing facilities that are primary producers of covered products for pilot projects.

In addition, the 2021-23 biennial operating budget directed Commerce to contract with UW to create a database and reporting system for building materials for state-funded construction projects.

State Building Code.  The State Building Code (Code) establishes minimum performance standards and requirements for construction and construction materials in the state, consistent with accepted standards of engineering, fire, and life safety.  The Code includes several model codes and standards, developed and published by international and national organizations, which are adopted by reference in the State Building Code Act.  Model codes include the International Building Code, International Residential Code, and Energy Code.

Definitions.  An awarding authority is an institution of higher education or a state agency that receives funding from the omnibus capital appropriations act for a public works project.  Covered product includes structural concrete products, reinforcing and structural steel products, and engineered wood products.  Examples of each are listed.  Covered project means a construction project larger than 50,000 gross square feet or a building renovation project where the cost is greater than 50 percent of the assessed value and the project is larger than 50,000 gross square feet of occupied or conditioned space, as defined in the Code.  Several other terms are defined.

Reporting Requirements.  Reporting requirements take effect July 1, 2025, for new construction contracts for covered projects larger than 100,000 gross square feet and July 1, 2027, for all new construction contracts for covered projects and covered products.  Beginning on these dates, awarding authorities must require the selected firm or successful bidder to:

• report, prior to substantial project completion:
  1. the quantity of covered products; and
  2. the following supplier-reported data for at least 90 percent of the cost of each of the covered products used in the project:
     • a current EPD, or a product and facility specific report if a supply chain specific EPD is not available;
     • a health product declaration, if any, for the product;
     • the manufacturer name and location;
     • supplier code of conduct, if any; and
     • OWMBE certification, if any; and
• ask suppliers to report, for at least 90 percent of the cost of each covered product used in the project, and prior to substantial project completion:
  1. names and locations of actual production facilities; and
  2. working conditions at the actual production facilities for all employees.

The selected firm is not required to verify the information reported by product suppliers.  By July 1, 2025, and to the extent practicable, specifications for a bid or proposal for a project contract may only include performance-based specifications for concrete used as a structural material.  An awarding authority may continue to use prescriptive specifications on structural elements to support special designs and emerging technology implementation.  If the awarding authority determines the data collection and reporting requirements for a covered product would cause significant delay in completion, significant increase in overall project cost, or result in only one product supplier being able to provide the covered product, the reporting requirements do not apply.

Duties of the Department of Commerce.  Database.  Commerce must continue to develop, maintain, and refine the database funded by the 2021-23 operating budget, and may consult with UW.  The database must publish global warming potential as reported in the EPDs. 

Technical Work Group.  By December 1, 2024, Commerce must convene a technical work group (work group) to identify opportunities for, and barriers to growth of, the use and production of low carbon materials, promote high labor standards in manufacturing, and preserve and expand low carbon materials manufacturing in Washington.  The work group must include specified representatives from industry, state government, labor unions, higher education, community, and other experts.

Subgroups are intended to form with members who have certain experience to develop technical information, recommendations, and analysis specific to individual material types, and the feasibility of supply chain specific EPDs.  Subgroup recommendations must, where possible, align with state and national principles and laws for EPD development.  Commerce may contract with UW in convening the work group.

The work group must submit two reports to the Governor and Legislature.  The first report is due September 1, 2025, and must include: (1) a low carbon materials manufacturing plan, recommending policies to preserve and grow the in-state manufacturing of low carbon materials and accelerate industrial decarbonization; (2) recommendations for consistent treatment in the reporting for covered products; and (3) consideration of how additional information relevant to reducing embodied carbon through strategies including, but not limited to, product life-cycle assessments could be incorporated into future reporting.

The second report is due September 1, 2026, and must: (1) include policy recommendations and any necessary statutory changes; (2) consider policies to expand the use and production of low carbon materials; and (3) preserve and expand low carbon materials manufacturing in Washington.  For this report, the work group must:

• summarize data collected under the act;
• evaluate options for collecting additional working condition information from product suppliers;
• make recommendations for improving EPD data quality;
• make recommendations for consideration of scope 2 greenhouse gas emissions mitigation through green power purchases;
• identify barriers and opportunities to the effective use of the database;
• identify emerging and foreseeable trends in embodied carbon policy and procurement; and
• recommend approaches to designing lower embodied carbon state building projects.

Commerce may update reporting standards and requirements based on input from the work group and must provide updated guidance on reporting standards by January 1, 2027.

Other Duties.  By July 1, 2025, Commerce must:

• further elaborate covered product definitions using applicable material industry standards;
• develop measurement and reporting standards to ensure data is consistent and comparable;
• create model language for specifications, bid documents, and contracts to support the implementation of the industry reporting requirements; and
• produce an educational brief:
  1. providing an overview of embodied carbon;
  2. describing the appropriate use of EPDs;
  3. outlining reporting standards;
  4. describing the data collection and reporting process for the industry reporting requirements;
  5. providing database use instructions; and
  6. listing applicable product category rules for covered products.

Commerce may contract to use nationally- or internationally- recognized databases of EPDs to implement the duties above.

Other.  Subject to appropriation, Commerce may provide financial assistance to small businesses to help offset costs associated with producing an EPD.  The Office of Financial Management must inform awarding authorities about the requirements in the act.  The act may be known and cited as the Buy Clean and Buy Fair Washington Act.

The committee recommended a different version of the bill than what was heard. PRO: Buy Clean policies are gaining steam across the country as a tool for transforming and strengthening U.S. manufacturing. A pilot project, funded by the Legislature, provided key recommendations to combat the unfair competition responsible manufacturers face from overseas producers not subject to the same standard. Construction incentives to use low-carbon materials, made with fair labor practices, requires further knowledge about the materials used in these buildings. The database created is an important tool for making climate smart purchasing decisions. Data availability concerns are addressed for commodity products. Transparency will show the environmental benefit of using local U.S. materials.

A workgroup will be created under this bill to guarantee ongoing oversight, outreach, and data collection. Integrating reporting ensures the transition to the low-carbon economy is fair and that new clean manufacturing jobs remain the same high-quality jobs that have provided solid economic foundation for millions of communities. The process for collecting EPD's is not new and it?s time to bring to same standard of care to all covered projects. 

CON: This bill lacks clarity and scope. It also lacks structural life cycle assessments, which is where the real reductions arise from. It creates significant reporting, administrative, and cost burdens on publicly funded projects. Given the lack of transparency in the two provisos and an unbalanced makeup, there is a lack of confidence in the work groups ability to allow opportunities for fair input. Information can be highly variable so effective, transparent collaboration is much needed.

OTHER: This bill misses the greatest opportunity to decarbonize by ignoring the pivotal role of life cycle assessments. Teams need more than collecting EPDs and material quantities. Supply chain specific data has changed to a request when feasible, allowing manufacturers to escape the policy requirement. Few EPDs disclose their data when given the opportunity not to.

PRO:  Buy clean policies do not add costs to projects, but they do add transparency.  This is a reporting bill only and will not inform procurement decisions.  The bill seeks to promote innovation in our manufacturing.  While previous versions of this bill were better, this version was worked out with stakeholders and is still desirable.  This bill benefits Washington companies that do right by their workers and the environment.  This bill is an important step to address embodied carbon and transparency through the building material supply chain.  Enacting embodied carbon legislation needs to happen now.  This bill will help get Washington closer to 100 percent clean energy.  This language reflects a compromise, but we do think the Legislature will be back to revisit this.  The database will help inform the Legislature for many years.

OTHER:  The first step to reduce embodied carbon is to study it, and this bill does that.  These policies can be successful when working collaboratively with industry.  The technical work group created in the bill is setup for success.  Seven states and the federal government are developing or implementing buy clean policies, so Washington is not alone.  We have an ongoing question related to the definition of "final production facility" and will bring language to address the concern.

PRO: Representative Davina Duerr, Prime Sponsor; Brittany Porter, American Institute of Architects WA Council; Patrick Jablonski, Nucor Steel Seattle, Inc.; Donny Donovan, IAM District 751; Hanna Waterstrat, WA department of commerce; Michael Transue, WA Aggregate and Concrete Association.