The bill introduces three key acts aimed at enhancing environmental sustainability in New Mexico's construction and industrial sectors: the Low-Carbon Construction Material Rebate Act, the Environmental Product Declaration Act, and the Industrial Carbon Reduction Act. The Low-Carbon Construction Material Rebate Act establishes a rebate program for buyers of low-carbon construction materials, which are defined by their global warming potential relative to a specified emissions benchmark. The Department of Environment will administer this program, setting emissions baselines, ensuring compliance, and implementing antifraud measures, along with annual reporting on its effectiveness. The Environmental Product Declaration Act supports manufacturers in creating independently verified environmental product declarations that assess the life-cycle impacts of materials, while the Industrial Carbon Reduction Act offers financial incentives for producing industrial products with reduced carbon intensity.

Furthermore, the bill outlines the framework for implementing the Industrial Carbon Reduction Act, focusing on calculating carbon intensity for eligible products and establishing a carbon reduction investment grant program. The Department of Environment is responsible for developing methodologies to assess carbon intensity, including scope one and two emissions, and potentially scope three emissions if relevant declarations are available. The grant program will provide up to ten percent of qualified expenditures, capped at five million dollars, for investments in new or renovated industrial facilities, prioritizing projects that demonstrate significant carbon reductions and economic benefits. Annual reporting to the legislature on the program's implementation is also mandated, with the provisions set to take effect on July 1, 2026.