Attachment Fact Sheet.pdf

Docusign Envelope ID: 898AB549-A609-42C4-AE32-465FC01461F8

FACT SHEET: GSA Interim Inflation Reduction Act Low Embodied Carbon Material Requirements Pilot

Pilot Overview

The U.S. General Services Administration (GSA) has collaborated with the U.S.

Department of Transportation’s Federal Highway Administration and the U.S.

Environmental Protection Agency (EPA) to pilot interim requirements for the use of low embodied carbon construction materials in GSA projects funded by the Inflation Reduction Act of 2022 (IRA). The six-month Pilot Program will apply these requirements to help gain actual market availability insights, inform adjustments that may be needed, and allow GSA to issue a final set of Material Requirements for the agency’s IRA construction program.

The Pilot Program consists of eleven (11) new construction projects, land port of entry projects, limited scope modernization projects and paving projects. The estimated value of the LEC materials for these projects is more than $300 million. The projects are at different stages of development and execution, and are dispersed across eight states and the District of Columbia. The Pilot Program provides GSA an opportunity to evaluate its Interim IRA LEC Material Requirements on a variety of project types utilizing all four approved LEC materials: asphalt, concrete, glass and steel.

Use of the Interim IRA LEC Materials Requirements will allow GSA to advance implementation of its IRA construction program by providing project-specific insights into how the market responds to these requirements. Lessons learned will inform execution of the balance of GSA’s IRA construction program, including potential updates to the Interim IRA LEC Materials Requirements.

GSA’s Interim IRA LEC Material Requirements

GSA’s Interim IRA LEC Material Requirements build on the agency’s experience in developing and implementing the first nationally-applicable environmental product declaration (EPD) requirements for concrete and asphalt, which were launched in March 2022. GSA established its Interim IRA LEC Material Requirements in line with standard GSA requirements development practice, the Federal Acquisition Regulation, and EPA’s December 2022 Interim Determination. These requirements also reflect comments provided as a part of two IRA industry days organized by GSA in February 2023, each of which were attended by over 300 non-government attendees. In addition, GSA has issued Requests For Information, and has held numerous discussions with industry representatives and trade associations to refine these requirements.

Industry Feedback To Date

As a result of the industry engagement and feedback from the Federal Buy Clean Task Force, GSA made the following adjustments to the Interim IRA LEC Material Requirements:

● Simplified compliance determination methodology.

● Collaborated with trade associations to review the source data, then updated GSA’s global warming potential limits.

● Ensured GSA’s limits are based only on data generated under North American product category rules, in line with provisions in the EPA Interim Determination.

● Removed limits for processed glass, insulating glass units and fabricated steel plate.

● Added limits for concrete masonry units and unfabricated steel.

● Noted that, with regard to steel manufacturing, once adequate data is available

(e.g. from EPDs), GSA plans to develop and issue one or more global warming potential (GWP) limits for materials made via integrated steel mills.

GSA has also developed a list of frequently asked questions, addressing industry feedback about the Interim IRA LEC Material Requirements.

Separate GWP Limits for Some Steel Products

Opportunities for improvement exist throughout the steel industry. Establishing GWP limits for individual manufacturing processes (i.e. integrated mill and electric arc furnace) will promote innovation throughout the industry and lower emissions from all processes. Additionally, current market research suggests it is unlikely for material made from one manufacturing process alone to meet 100% of the demand for steel over time. Therefore, the U.S. must facilitate sustainable steel production throughout the industry. This approach should reduce emissions, creating a more competitive and sustainable industry in the long run.

Buy American Requirements and IRA LEC Requirements

GSA’s Interim IRA LEC Materials Requirements do not supersede existing laws such as the Buy American Act of 1933 (updated via the Build America Buy American Act, which was enacted as part of the Infrastructure Investment and Jobs Act) or the Trade Agreements Act of 1979. All materials and products procured for GSA projects must comply with all applicable federal laws. For IRA section 60503-funded procurements, existing trade-related laws will be applied first, then GSA’s Interim IRA LEC Material Requirements will be applied.

Pilot Learnings Enable Better Requirements

GSA expects that the Pilot Program will result in a better understanding of potential supply chain gaps and the relative availability of the four materials represented in the EPA’s Interim Determination. GSA expects to gain insights into the construction materials market, including available materials’ EPDs, GWPs, quantities, costs, product category rules, suitability for varied project types, and ENERGY STAR Energy Performance Scores. GSA also expects that the Pilot Program will result in project-specific insights on its Interim IRA LEC Material Requirements. GSA will learn how vendors source materials in compliance with the Buy American and Trade Agreements Acts.

Proceeding with the Pilot Program will enable GSA to understand the market's ability to respond to the Interim IRA LEC Material Requirements. GSA plans to make adjustments to the requirements as necessary, to help ensure timely and successful execution of GSA’s entire IRA construction and modernization program.

Pilot Project Locations

Pilot Projects are slated to occur in the following locations (in alphabetical order by state):

● Land Port of Entry (LPOE), San Luis, AZ - New construction will use LEC asphalt, concrete and steel.

● U.S. Health and Human Services-Food and Drug Administration Laboratory, Federal Center, Lakewood, CO - New construction will use LEC asphalt, concrete, glass and steel.

● Patrick V. McNamara Federal Building garage, Detroit, MI - Renovation of the garage will use LEC concrete and steel.

● Charles E. Whittaker U.S. Courthouse, Kansas City, MO - Facade upgrades will use LEC concrete, glass and steel.

● Alexander Hamilton U.S. Custom House, New York City, NY - Rehabilitation will use LEC concrete and steel to address structural deterioration .

● LPOE, Dunseith, ND - New construction will use LEC asphalt, concrete and steel.

● World Trade Bridge LPOE, Laredo, TX - Paving will use LEC asphalt, concrete and steel.

● Kida de la Garza LPOE, Pharr, TX - Paving will use LEC asphalt, concrete and steel.

● LPOE, Ysleta, TX - Paving will use LEC asphalt, concrete and steel.

● Lewis F. Powell, Jr. U.S. Courthouse, Richmond, VA - Modernization will include LEC glass and steel to support window replacement on this historic courthouse.

● U.S. Department of Homeland Security - Cybersecurity & Infrastructure Security Agency (CISA), Washington, DC - New construction of CISA’s headquarters on the St. Elizabeths campus will use LEC concrete and steel.

U.S. General Services Administration Interim IRA Low Embodied Carbon Material Requirements

May 16, 2023

Preface

The Inflation Reduction Act of 2022 (IRA), Pub. L. No. 117-169, was enacted in August 2022. The IRA made the single largest investment in climate and energy in American history. The IRA will help the United States tackle the climate crisis, advance environmental justice, and secure our Nation’s position as a world leader in domestic clean energy manufacturing. This law puts the United States on a pathway to achieving the Administration’s climate goals, including a net zero operational emissions federal building portfolio by 2045, and net zero emissions procurement by 2050. IRA Section 60503 provides the U.S. General Services Administration (GSA) with $2.15 billion for acquisition and installation of construction materials and products with substantially lower levels of embodied greenhouse gas emissions as compared to estimated industry averages, as determined by the Administrator of the U.S. Environmental Protection Agency (EPA). EPA issued its Interim Determination in December 2022.

GSA is proceeding with an IRA Pilot Program to use IRA Section 60503 funding for a limited number of construction projects. Consistent with standard GSA practice and the Federal Acquisition Regulation, and having taken public input into consideration, GSA is using these Interim IRA Low Embodied Carbon Material Requirements in the Pilot Program. GSA intends to update its interim requirements using lessons learned from the Pilot Program.

These Interim IRA Low Embodied Carbon Material Requirements apply to IRA-funded purchases of four key construction materials: concrete (and cement), asphalt, steel, and glass. Construction product assemblies (such as window assemblies or rebar-reinforced concrete) qualify for IRA funding if at least 80% of the assembly’s total cost or total weight comprises materials that meet these Requirements. These Interim IRA Low Embodied Carbon Material Requirements do not apply to all procurements and are only binding after a contracting officer exercises his or her discretion to incorporate IRA § 60503-qualifying materials or products into a procurement contract. Additionally, these Interim IRA LEC Materials Requirements do not supersede existing laws such as the Buy American Act of 1933 or the Trade Agreements Act of 1979. All materials and products procured for GSA projects must meet these laws. For IRA Section 60503-funded procurements, existing trade-related laws will be applied first, then GSA’s Interim IRA LEC Material Requirements will be applied.

Concrete 3

Cement 5

Concrete Masonry Units 6

Asphalt 7

Steel 8

Glass 10

ENERGY STAR Energy Performance Score Explained 11

Concrete

● Material Type

○ Concrete is a composite material consisting of a mixture of hydraulic “e.g. portland” cement, aggregates, and water, with or without admixtures, fibers, or other cementitious materials.

■ Concrete can be mixed at a job site, or “ready mixed” and batched for delivery from a central plant. Its wide-ranging applications include foundations, floors, walls, and roadways.

○ Construction product assemblies (such as rebar-reinforced concrete, or concrete made with qualifying cement) qualify for IRA funding if at least 80% of the assembly’s total cost or total weight comprises materials that meet these Requirements.

■ Where provision of concrete that qualifies under these GSA IRA Limits is impractical, GSA’s IRA Limits for cement may be applied to the cement being used in the concrete mix.

● GSA IRA LEC Material Requirements

GSA IRA Limits for Low Embodied Carbon Concrete - May 16, 2023

(EPD-Reported GWPs, in kilograms of carbon dioxide equivalent per cubic meter - kgCO2e/ m3)

Specified concrete strength class (compressive strength [f'c] in pounds per square inch [PSI])

Top 20% Limit Top 40% Limit Better Than Average Limit

≤2499 228 261 277

3000 257 291 318

4000 284 326 352

5000 305 357 382

6000 319 374 407

≥7200 321 362 402

Add 30% to these numbers for GWP limits where high early strength1 concrete mixes are required for technical reasons.

● Compliance Documentation

○ A product-specific Type III (third-party verified) Environmental Product Declaration (EPD) that:

(i) is based on the PCR used to develop these limits: NSF International’s Product Category Rule for Concrete (8/2021, version 2.1); and (ii) conforms with ISO 14025 and ISO 21930.

■ Where feasible, EPDs must also rely on facility-specific data, including for the supply chain’s associated unit processes, such as concrete’s upstream cement plant, rather

1 “High early strength” is concrete that, through the use of additional cement, high-early-strength cement, or admixtures, has accelerated early-age strength development. High early strength concrete produced using additional cement should be avoided where possible, due to its higher embodied carbon. An affected project delivery team must obtain written approval from GSA’s IRA PMO on whether high early strength concrete is necessary for technical reasons.

This 30% allowance reflects input from building sustainability experts, general contractors, engineers, and ready-mix or cement producers.

than industry or manufacturer average data. If an EPD containing facility-specific data for the material’s most greenhouse-gas intensive processes is unavailable, an EPD without such data that meets Compliance Documentation criteria (i) and (ii) is sufficient.

○ ENERGY STAR Energy Performance Score for supplying cement plant, the manufacturing plant name(s) and location(s), and the data period of the Energy Performance Score(s) at the time of purchase. Please see “ENERGY STAR Energy Performance Score Explained” at bottom for more information.

Cement

● Material Type

○ Cement is the basic ingredient of concrete. Cement (including portland and portland-limestone cement) is manufactured through the chemical combination of ingredients including calcium, silicon, aluminum, and iron. When heated at high temperatures in kilns, some elements are driven off in the form of gasses, while others unite to form a new substance called clinker. Clinker is cooled, ground, and mixed with small amounts of gypsum and limestone to make cement.

■ When cement creates a paste with water that binds with sand and rock “aggregates” to harden, it forms concrete. Cement is transported to ready-mix concrete companies to be used in concrete for a wide variety of construction purposes.

● GSA IRA LEC Material Requirements

○ Where provision of concrete that qualifies under these GSA IRA Limits is practical, GSA’s

IRA Limits for Low Embodied Concrete must be used.

○ Where provision of concrete that qualifies under these GSA IRA Limits is impractical, GSA’s

IRA Limits for cement may be applied to the cement being used in the concrete mix.

■ A concrete EPD accounts for the whole mix design, including quantitative impacts of specific cements, aggregates, and admixtures.

■ If a concrete EPD is provided to demonstrate compliance, a cement EPD doesn’t need to be submitted to GSA. Cement is an input to concrete mixes, and its GWP is accounted for in the concrete EPD.

■ Construction product assemblies can also qualify for IRA funding where at least 80% of the assembly’s total cost or total weight comprises IRA-qualifying material such as low embodied carbon cement.

GSA IRA Limits for Low Embodied Carbon Cement - May 16, 2023

(EPD-Reported GWPs, in kilograms of carbon dioxide equivalent per metric ton - kgCO2e/ t)

Top 20% Limit Top 40% Limit Better Than Average Limit

751 819 858

● Compliance Documentation

○ A product-specific Type III (third-party verified) Environmental Product Declaration (EPD) that:

(i) is based on the PCR used to develop these limits: NSF International’s Product Category Rule for Portland, Blended, Masonry, Mortar, and Plastic (Stucco) Cements (9/2021, version 3.2; or 5/2020, version 3.0); and (ii) conforms with ISO 14025 and ISO 21930.

■ Where feasible, EPDs must also rely on facility-specific data, including for the supply chain’s associated unit processes, rather than industry or manufacturer average data.

If an EPD containing facility-specific data for the material’s most greenhouse-gas intensive processes is unavailable, an EPD without such data that meets Compliance Documentation criteria (i) and (ii) is sufficient.

○ ENERGY STAR Energy Performance Score for the cement plant, the manufacturing plant name(s) and location(s), and the data period of the Energy Performance Score(s) at the time of purchase. Please see “ENERGY STAR Energy Performance Score Explained” at bottom for more information.

Concrete Masonry Units

● Material Type

○ Concrete masonry units (CMUs) are standard-sized rectangular blocks used in building construction, sometimes referred to as cinder blocks.

■ Other types of manufactured concrete can include concrete brick, concrete pavers and slabs, segmental concrete retaining walls, manufactured veneer stone, and concrete roof tiles.

● GSA IRA LEC Material Requirements

GSA IRA Limits for Low Embodied Carbon Concrete Masonry Units - May 16, 2023

(EPD-Reported GWPs, in kilograms of carbon dioxide equivalent per cubic meter - kgCO2e/ m3)

Top 20% Limit Top 40% Limit Better Than Average Limit

217 256 290

● Compliance Documentation

○ A product-specific Type III (third-party verified) Environmental Product Declaration (EPD) that:

(i) is based on a PCR for the applicable product category that was active when the EPD was issued, and which was used to develop these limits: ASTM International’s PCR for Precast Concrete (5/2021, version 3.0) or UL’s Part B: Concrete Masonry and Segmental Concrete Paving Product EPD Requirements (3/2022, version 1.1); and (ii) conforms with ISO 14025 and

ISO 21930.

■ Where feasible, EPDs must also rely on facility-specific data, including for the supply chain’s associated unit processes, such as concrete’s upstream cement plant, rather than industry or manufacturer average data. If an EPD containing facility-specific data for the material’s most greenhouse-gas intensive processes is unavailable, an EPD without such data that meets Compliance Documentation criteria (i) and (ii) is sufficient.

○ ENERGY STAR Energy Performance Score for supplying cement plant, the manufacturing plant name(s) and location(s), and the data period of the Energy Performance Score(s) at the time of purchase. Please see “ENERGY STAR Energy Performance Score Explained” at bottom for more information.

Asphalt

● Material Type

○ Asphalt concrete is a mixture mainly composed of mineral aggregates, asphalt binder, and additives.

■ Aggregates and asphalt binder are typically heated at an asphalt plant, mixed according to precise formulas, and loaded into trucks for transport to paving sites.

● GSA IRA LEC Material Requirements

GSA IRA Limits for Low Embodied Carbon Asphalt - May 16, 2023

(EPD-Reported GWPs, in kilograms of carbon dioxide equivalent per metric ton - kgCO2e/ t)

Top 20% Limit Top 40% Limit Better Than Average Limit

55.4 64.8 72.6

● Compliance Documentation

○ A product-specific Type III (third-party verified) EPD that: (i) is based on the PCR used to develop these limits: the National Asphalt Paving Association’s Product Category Rule for Asphalt Mixtures, (4/2022, version 2.0); and (ii) conforms with ISO 14025 and ISO 21930.

■ Where feasible, EPDs must also rely on facility-specific data, including for the supply chain’s associated unit processes, such as asphalt binder production, rather than industry or manufacturer average data. If an EPD containing facility-specific data for the material’s most greenhouse-gas intensive processes is unavailable, an EPD without such data that meets Compliance Documentation criteria (i) and (ii) is sufficient.

Steel

● Material Type

○ Steel is an alloy of iron and carbon. It often contains small quantities of silicon, phosphorus, sulfur, and oxygen. Steel can be repeatedly recycled without losing its properties, and may contain high recycled content. Steel products are often plated or coated, e.g.

zinc-galvanized.

■ Steel can be made into product categories including hot rolled structural steel, fabricated steel plate, fabricated hollow steel structural sections (cold-formed welded steel tubing produced in round, square, and rectangular shapes), steel reinforcing bars (rebar), and cold-formed steel framing.

○ Construction product assemblies (such as fabricated steel products including handrails, conduit, ductwork, pipes, metal raceways, etc.) qualify for IRA funding if at least 80% of the assembly’s total cost or total weight comprises materials that meet these Requirements.

● GSA IRA LEC Material Requirements

GSA IRA Limits for Low Embodied Carbon Steel - May 16, 2023

(EPD-Reported GWPs, in kilograms of carbon dioxide equivalent per metric ton - kgCO2e/ t)

Steel Product Category Top 20% Limit Top 40% Limit Better Than

Average Limit

Rebar (fabricated) 728 794 850

Rebar (unfabricated) 611 716 760

Hollow Structural Sections (fabricated)

1,778 1,854 1,898

Hollow Structural Sections from Electric Arc Furnaces (unfabricated)

1,580 1,620 1,652

Hollow Structural Sections from Integrated Mills* (unfabricated)

TBD TBD TBD

Hot-Rolled Sections (fabricated) 1,022 1,128 1,163

Hot-Rolled Sections (unfabricated) 686 713 869

Cold-Formed and Galvanized (stud, track, framing, etc.)

2,228 2,324 2,408

Structural Steel Plate from Electric

Arc Furnaces (unfabricated)

987 1,152 1,190

Structural Steel Plate from Integrated Mills*

(unfabricated)

TBD TBD TBD

○ *GSA recognizes merit in separate GWP limits for integrated mill and electric arc furnace steel production methods in these product categories. Once adequate data is available (e.g.

from EPDs), GSA plans to develop and issue one or more limits for materials made via integrated steel mills.

● Compliance Documentation

○ A product-specific Type III (third-party verified) EPD that: (i) is based on the PCRs used to develop these limits: UL’s PCR Guidance for Building-Related Products and Services, Part B:

Designated Steel Construction Product EPD Requirements (8/2020, version 2.0) or SCS Global Services’ PCR for Designated Steel Construction Products (5/2015, version 1.0); and

(ii) conforms with ISO 14025 and ISO 21930.

■ Where feasible, EPDs must also rely on facility-specific data, including for the supply chain’s associated unit processes, such as fabricated steel’s upstream steel mill(s), rather than industry or manufacturer average data. If an EPD containing facility-specific data for the material’s most greenhouse-gas intensive processes is unavailable, an EPD without such data that meets Compliance Documentation criteria

(i) and (ii) is sufficient.

○ If steel originates from an integrated steel mill: ENERGY STAR Energy Performance Score for supplying integrated steel mill, the manufacturing plant name(s) and location(s), and the data period of the Energy Performance Score(s) at the time of purchase. Please see

“ENERGY

STAR Energy Performance Score Explained” at bottom for more information.

Glass

● Material Type

○ Flat glass is made from molten material consisting of a combination of silica sand, limestone, soda ash, dolomite and glass cullet spread onto sheets on a plane to produce flat, float, rolled, plate or sheet glass. Flat glass is sometimes bent after production of the plane sheet.

The general term “flat glass” describes all glass produced in a flat form, such as float glass, sheet glass, plate glass and rolled glass.

■ Flat glass can be heat- or surface-treated to make processed glass, or built into assemblies such as insulating glass units (IGUs), laminated glazing units, and vacuum insulating glazing. Flat glass assemblies are often part of curtain walls, storefronts, transparent walls, window units, skylights, canopies, doors, and solar panels.

○ Construction product assemblies (such as processed glass fabricated from flat glass, or insulating glass units containing flat glass) qualify for IRA funding if at least 80% of the assembly’s total cost or total weight comprises materials that meet these Requirements.

● GSA IRA LEC Material Requirements

GSA IRA Limits for Low Embodied Carbon Glass - May 16, 2023

(EPD-Reported GWPs, in kilograms of carbon dioxide equivalent per metric ton - kgCO2e kg/ t)

Glass Product Category2

Top 20% Limit Top 40% Limit Better Than Average Limit

Flat Glass (per metric ton) 1,331 1,370 1,401

● Compliance Documentation

○ A product-specific Type III (third-party verified) EPD that: (i) is based on the PCR used to develop these limits: the NSF International/ National Glass Association Flat Glass PCR (9/2020, version 2.0; or 3/2013, version 1.0); and (ii) conforms with ISO 14025 and ISO 21930.

■ Where feasible, EPDs must also be based on supply chain-specific data for associated unit processes, such as facility-specific data for processed glass’s upstream glass plants, rather than industry or manufacturer average data. If an EPD containing facility-specific data for the material’s most greenhouse-gas intensive processes is unavailable, an EPD without such data that meets Compliance Documentation criteria

(i) and (ii) is sufficient.

○ ENERGY STAR Energy Performance Score for supplying flat/float glass plant, the manufacturing plant name(s) and location(s), and the data period of the Energy Performance Score(s) at the time of purchase. Please see “ENERGY STAR Energy Performance Score Explained” at bottom for more information.

2 Based on input from the glass industry about inconsistent data from the limited set of processed glass and insulating glazing unit EPDs as of early 2023, GSA is only issuing GWP limits for unfabricated flat glass at this time.

ENERGY STAR Energy Performance Score Explained

ENERGY STAR Energy Performance Scores (EPS) show how efficiently a manufacturing plant uses energy on a 100-point scale. A score of 50 reflects average performance, 1 shows poor performance, and 100 reflects highest performance.

Contractors obtain Energy Performance Scores by requesting producers of cement, glass, asphalt mix, and steel (from integrated mills only) to provide the score. Or, contractors may request it from material suppliers (e.g. concrete producers).

Manufacturers of cement, glass and steel produce a plant’s score by inputting 12 months of energy and production data in the industry-specific Energy Performance Indicator (EPI) tool available at www.energystar.gov/epis. The score will show on the Statement of Energy Performance section of the EPI.

Energy Performance Scores can currently be produced for cement, flat glass, and integrated steel mills. An EPS for asphalt mix plants is expected to be available by September 2023. EPA will notify GSA when to begin requesting asphalt mix plant scores.