Existing law requires, by December 31, 2026, the State Air Resources Board, in consultation with relevant stakeholders, as provided, to develop a framework for measuring the average carbon intensity of the materials used in the construction of new buildings, including those for residential uses. Existing law requires, by December 31, 2028, the state board to develop a comprehensive strategy for the state’s building sector to achieve a 40% net reduction in greenhouse gas emissions of building materials, as specified, as soon as possible, but no later than December 31, 2035. Existing law authorizes the state board to establish an embodied carbon trading system, as defined, in compliance with these requirements, as provided.

This bill would require the state board to determine whether the cost of building materials with lower embodied carbon have reached cost parity with conventional building materials before implementing the above-described provisions. If the state board determines that building materials with lower embodied carbon have not reached cost parity with conventional building materials, the bill would require the state board to delay or suspend, as applicable, implementation of those provisions for not less than 5 years. The bill would authorize the state board to continue to make that determination and delay or suspend those provisions for not less than 5 years until the state board determines that building materials with lower embodied carbon have reached cost parity with conventional building materials, at which time the bill would require the state board to implement those provisions. The bill also would make conforming changes.