Green Badger recently hosted a webinar focused on one of the most pressing topics in the construction industry today: how new carbon emissions legislation, especially the Inflation Reduction Act construction incentives and Buy Clean construction requirements, are shaping the future of building in the United States.
Moderated by Kristin Brubaker, Head of Sustainable Construction Solutions at Green Badger, the session featured two expert panelists: Annie Kell, Sustainability Services Delivery Lead at Burns McDonnell, and Jessie Buckmaster, Director of Sustainability at Hathaway Dinwiddie.
The discussion provided a clear, practical overview of the Inflation Reduction Act construction policies, Buy Clean requirements for construction, and the growing importance of tracking carbon on construction projects. Here’s a detailed recap of the key points, insights, and advice shared during the session.
Understanding the Inflation Reduction Act Construction Incentives
The Inflation Reduction Act (IRA) is a landmark piece of legislation aimed at reducing the federal deficit, fighting inflation, lowering drug prices, extending the Affordable Care Act, and—most relevant to this audience—investing in domestic energy production and clean manufacturing. Annie Kell explained that the IRA’s climate-related provisions are especially significant for contractors, targeting a 40% reduction in U.S. greenhouse gas emissions by 2030 compared to 2005 levels.
The IRA introduced new sources of funding through tax reform and created a wide range of programs and tax credits. Many of these incentives are directly tied to the use of low-carbon and American-made materials on construction projects. However, the current federal landscape is uncertain: recent executive actions have paused or rescinded some IRA programs.
Despite this uncertainty, contractors need to stay informed and prepared. Many tax credits for energy-efficient commercial buildings, clean electricity, and advanced energy projects remain available. These credits often require strict documentation, including proof of prevailing wages and apprentice labor hours.
Since the passage of the Inflation Reduction Act, construction incentives, thousands of new North American product EPDs have been created. This surge in transparency makes it easier for contractors to find and specify products that meet Buy Clean requirements for construction and reduce construction carbon.
Buy Clean Construction: Federal Pause, State Momentum
Jessie Buckmaster shifted the conversation to Buy Clean construction, a policy movement that ensures public dollars are spent on materials manufactured in cleaner, more efficient ways. While the federal Buy Clean initiative has been paused by the current administration, states are picking up the slack, with over a dozen joining the U.S. Climate Alliance’s Buy Clean partnership.
California, for example, was the first to pass a Buy Clean law, requiring environmental product declarations (EPDs) for publicly funded projects and setting global warming potential (GWP) limits for materials like steel, concrete, glass, and insulation. Other states, such as Colorado, Washington, New Jersey, and New York, have followed with their own Buy Clean requirements for construction, each with varying lists of covered materials and implementation timelines.
Tracking carbon on many construction projects is now a necessity, not a luxury. Contractors need to collect EPDs for key materials, understand GWP limits, and work closely with suppliers to ensure compliance. While concrete suppliers have generally adapted well to these requirements, steel remains challenging due to complex supply chains and limited EPD availability.
Buy Clean Requirements for Construction: State-by-State Overview
Below is a detailed breakdown of where Buy Clean requirements for construction stand across the country. Here are some highlights:
- California: Mandatory for public projects, with GWP limits for steel, concrete, glass, and insulation. CalGreen code now extends GWP limits to all projects, not just state-funded ones.
- Colorado: Comprehensive Buy Clean requirements, including steel, glass, concrete, structural wood, plywood, and OSB, with GWP limits phased in over time.
- Washington: Requires EPDs for steel, concrete, and wood, with a strong focus on data transparency and reporting.
- New Jersey: Offers tax incentives for concrete producers who meet GWP limits on public projects.
- New York and Massachusetts: Both have pilot programs and task forces working on setting GWP limits and expanding Buy Clean requirements.
Other states like Oregon, Maryland, Minnesota, Hawaii, and Illinois are at various stages of developing or piloting Buy Clean construction policies. The U.S. Climate Alliance is playing a key role in coordinating these efforts and sharing best practices.
Tracking Carbon on Construction Projects: Best Practices
A recurring theme throughout the webinar was the importance of tracking carbon on construction projects. Both panelists agreed that integrating carbon tracking into project workflows is critical for meeting Buy Clean requirements for construction, qualifying for IRA incentives, and satisfying client expectations for sustainability reporting.
Here are some of their top recommendations:
- Start Early: Begin conversations with suppliers during pre-construction and bidding. Ask for EPDs up front and specify Buy Clean construction requirements in bid documents and contracts.
- Use Digital Tools: Platforms like Green Badger and the EC3 database can simplify the process of collecting, verifying, and reporting carbon data.
- Document Everything: For IRA-funded projects, maintain certified payrolls and detailed apprentice hour records. For Buy Clean construction, keep all EPDs and GWP calculations organized and accessible.
- Educate Your Team: Make sure estimators, project managers, and subcontractors understand the requirements and where to find compliant products.
- Check Regional Availability: Not all low-carbon products are available everywhere. Confirm with suppliers that your preferred solutions can be sourced locally.
Construction Carbon and LEED v5: The Future of Green Building
The panelists also discussed how these evolving policies intersect with green building certifications such as LEED. In LEED v5, tracking carbon on construction projects is now a prerequisite for certification. EPDs and GWP limits help projects model and reduce lifecycle emissions, aligning closely with Buy Clean requirements for construction and the goals of the Inflation Reduction Act construction incentives.
The presenters agreed that the movement toward reducing construction carbon will continue to grow, regardless of changes at the federal level. Clients are increasingly demanding Scope 3 emissions data, which includes the carbon footprint of construction activities and materials.
Advice for Contractors: Navigating Uncertainty and Building Buy-In
The webinar concluded with practical advice for contractors navigating this shifting landscape:
- Stay Informed: Monitor both federal and state-level policies, as well as private sector trends.
- Build Relationships: Work closely with suppliers who are committed to providing low-carbon, EPD-backed materials.
- Communicate Clearly: Use explicit language in bid documents and contracts to avoid confusion and ensure compliance.
- Make the Business Case: Emphasize to company executives that sustainability is not just about compliance—it’s a business opportunity as clients increasingly expect low-carbon solutions.
Final Thoughts
The construction industry is at a turning point. Whether driven by the Inflation Reduction Act construction incentives, state-level Buy Clean requirements for construction, or client demand, tracking carbon on construction projects is quickly becoming standard practice. Contractors who embrace these changes—by educating their teams, upgrading their documentation, and building strong supplier relationships—will be well-positioned to thrive in a low-carbon future.
For more resources on Buy Clean construction, construction carbon, and tracking carbon on construction projects, reach out to Kristin Brubaker, Head of Sustainable Construction Solutions at Green Badger.