35 This bill directs the Department of Environmental Protection to establish by rule a
36 streamlined process for the certification of construction materials reclamation facilities.
37 Under the bill, a construction materials reclamation facility is defined as a facility that
38 exclusively accepts construction and demolition debris and sorts, refurbishes and sells
39 construction materials reclaimed from the debris for reuse in construction. A construction
40 materials reclamation facility that receives a certification from the department is not
41 required to obtain a solid waste facility license. The bill also establishes the nonlapsing Construction Materials Reclamation Fund within the department to provide grants, loans or other funding to any public or private entity to support the development and certification of construction materials reclamation facilities, training programs for individuals operating and employed at those facilities and public outreach and education initiatives regarding those facilities. Beginning January 1,
2026, this fund will receive a new $10 per ton fee imposed on the landfill disposal of construction and demolition debris and residue from the processing of the debris. The bill also capitalizes this fund with General Fund appropriations of $1 million in fiscal years
2025-26 and 2026-27. The bill establishes a new state goal that, by January 1, 2036, the total tonnage of construction and demolition debris annually disposed of at solid waste landfills in the State will be reduced by 25%. The baseline for calculating this reduction is the 2024 solid waste generation and disposal capacity data gathered by the Department of Environmental Protection. The bill also directs the Department of Administrative and Financial Services, Bureau of Revenue Services to develop a proposal for implementation of a refundable tax credit for housing developers that purchase for use in the construction of affordable housing in the State reclaimed construction materials from a certified construction materials reclamation facility. The credit must be equal to 100% of the documented cost of the reclaimed construction materials purchased by the developer from a construction materials reclamation facility. The bureau is also required to develop a proposal for implementation of a charitable deduction from individual income tax for individuals or businesses who donate construction materials to a certified construction materials reclamation facility. The bureau must submit by January 1, 2026 a report setting forth the tax credit and deduction proposals, including necessary implementing legislation along with any related recommendations, to the Joint Standing Committee on Taxation. After reviewing the report, the committee may report out related legislation to the Second Regular Session of the 132nd Legislature.

Statutes affected:
Bill Text LD 1633, HP 1087: 38.2132