Advance purchase commitment program

(a) Purpose The purposes of this section are— (1) to allow States to purchase or contractually guarantee the direct purchase of conforming low-emissions cement, concrete, asphalt binder, or asphalt mixtures; and (2) to encourage continuous innovation and long-term emissions reductions in the production of concrete, cement, asphalt binder, and asphalt mixtures. (b) Eligible projects Section 133 of title 23, United States Code, is amended— (1) in subsection (b) by adding at the end the following: (25) A project that includes the use of innovative, domestically produced cement, concrete, asphalt mixture, or asphalt binder manufactured using a process described in subsection (l). (26) Subject to subsection (m), a project that is carried out through an advance multiyear contract with a producer for a specified quantity and specified price of innovative, domestically produced cement, concrete, asphalt mixture, or asphalt binder manufactured using a process described in subsection (l).; and (2) by adding at the end the following: (l) Requirements for certain projects The process referred to in paragraphs (25) and (26) of subsection (b) is a manufacturing process that— (1) produces materials with— (A) superior durability to conventional materials; and (B) superior performance with respect to— (i) compressive strength; (ii) tensile strength; or (iii) workability; or (2) produces materials that meet the engineering specifications of the State and achieve superior performance with respect to— (A) environmental performance; or (B) energy efficiency.. (c) State flexibility Section 133(h)(6) of title 23, United States Code, is amended by adding at the end the following: (D) Procurement for innovative building materials (i) In general A State may use the funds set aside under this subsection to enter into an advance multi-year contract described in subsection (m) for a specified quantity and specified price of innovative, domestically produced cement, concrete, asphalt mixture, or asphalt binder. (ii) Use of funds States may not provide payments to the producer as part of the advance procurement under clause (i) unless materials have been delivered according to contract terms and conditions.. (d) Limitation Section 133 of title 23, United States Code, is further amended by adding at the end the following: (m) Advance multi-Year contracts Except as otherwise provided in this section, none of the funds made available under this section may be used for a multi-year contract unless— (1) cancellation provisions in the contract do not include consideration of recurring manufacturing costs of the producer associated with the production of unfunded units to be delivered under the contract; (2) the contract provides that payments to the producer under the contract shall not be made in advance of incurred costs on funded units; (3) the contract does not provide for a price adjustment based on a failure to award a follow-on contract; (4) the producer submits a statement describing the quantity and cost of the cement, concrete, asphalt mixture, and asphalt binder; (5) the producer demonstrates material steps towards commercial production and operational capacity of cement, concrete, asphalt mixture, or asphalt binder production with respect to logistics, planned material storage, handling capacities, and delivery mechanisms, of which failure to demonstrate material progress towards commercial production and operational capacity may result in termination of a portion or all of the advance procurement at the sole discretion of the State; and (6) the contract fulfills, to the maximum extent possible, preference criteria set by the State.. (e) Low-Emissions cement, concrete, and asphalt defined In this Act, the term low-emissions cement, concrete, and asphalt means cement, concrete, asphalt binder, or asphalt mixture that reduces, to the maximum extent practicable, greenhouse gas or directly related pollutant emissions to levels below commercially available cement, concrete, or asphalt.