H.R. 2122: IMPACT Act 2.0

The bill, referred to as the IMPACT Act 2.0, aims to enhance the production of low-emissions cement, concrete, asphalt binder, and asphalt mixtures in the United States. Here are the main components of the bill:

Purpose

The primary goal is to stimulate research, development, demonstration, and commercial application of technologies that can reduce emissions from the production of these materials.

Grants for Low-Emissions Materials

The bill establishes a grant program through the Federal Highway Administration (FHWA) to support states in:

• Improving specifications and standards for low-emissions cement, concrete, asphalt binder, and asphalt mixtures.
• Reimbursing states for the additional cost of using these materials in highway projects.
• Providing incentives of 2% of the project cost for choosing low-emissions options.
• Offering technical assistance to help states update their standards and practice for the use of these materials.

Directory of Low-Emissions Materials

The FHWA will create and maintain a public directory of approved low-emission materials, which states can use when planning highway projects. States will need to submit applications for materials to be considered for inclusion in this directory, with a decision made within 180 days of application submission.

Advance Purchase Commitment Program

The bill includes a provision that enables states to secure purchases of low-emissions materials through long-term contracts. This aims to encourage ongoing innovation and production of materials that not only reduce emissions but also possess superior performance qualities, such as durability and strength.

Eligibility Requirements for States

For states to be eligible for grants and incentives, they must demonstrate specific standards or tools that facilitate the purchase of low-emission materials, which may include engineering performance standards or greenhouse gas emissions reporting tools.

Funding

The legislation authorizes $15 million in funding for the fiscal years 2025 through 2027 to support the initiatives outlined in the bill.

Definition of Low-Emissions Materials

The bill specifies that low-emissions cement, concrete, and asphalt are defined as materials that can reduce greenhouse gas emissions below levels typical of commercially available options.

State Flexibility

States will also have the flexibility to enter into advance multi-year contracts for specified quantities and prices of low-emissions materials, provided that specific conditions regarding contract execution and compliance are met.

Relevant Companies

• CMI (Cummins Inc.) - As a manufacturer engaged in the production of various construction materials and technology, Cummins may find new opportunities in developing low-emission products.
• MLM (Martin Marietta Materials) - As a major supplier of construction aggregates and heavy building materials, this company could be significantly impacted by changes in specifications for low-emission materials.
• VMC (Vulcan Materials Company) - As a leading supplier of construction materials, Vulcan may need to adapt its production and offerings in response to the incentives for low-emissions products.